Answer: c) He should start advertising for job openings on the local Spanish radio station.
Explanation:
This realization by Paul should make him want to hire more Hispanics into the company and the best way to do so would be to advertise it in such a way that Hispanics have a better chance of hearing about job openings.
Advertising on Spanish radio would ensure that Hispanics hear the advertisements because they are the main ethnicity that speaks Spanish. This will give them an edge in learning about job openings and enable Paul to hire more Hispanics.
You buy a lottery ticket to a lottery that costs $10 per ticket. There are only 100 tickets available to be sold in this lottery. In this lottery there are one $455 prize, two $75 prizes, and four $20 prizes. Find your expected gain or loss. (Round your answer to two decimal places.)
Answer: Expected loss of $2.45
Explanation:
The expected gain is a weighted probability of the expected outcomes and their individual probabilities.
There is one $455 prize out of 100 tickets so the probability is: 1/100 = 0.01
There are two $75 prizes so the probability is: 2/100 = 0.02
There are four $20 prizes so the probability is: 4/100 = 0.04
There is a chance that you will lose the $10 and that probability is the :
= 1 - 0.01 - 0.02 - 0.04
= 0.93
Expected gain (loss) = (0.01 * 455) + (0.02 * 75) + (0.04 * 20) + (0.93 * -10)
= ($2.45)
any traditional costing systems: Multiple Choice write off manufacturing overhead as an expense of the current period. combine widely varying elements of overhead into a single cost pool. produce results far superior to those achieved with activity-based costing. use a host of different cost drivers (e.g., number of production setups, inspection hours, orders processed) to improve the accuracy of product costing. trace manufacturing overhead to individual activities and require the development of numerous activity-costing rates.
Answer:
combine widely varying elements of overhead into a single cost pool
Explanation:
A Traditional cost system is the system where the overhead cost are allocated that depend upon the cost driver volume. It determined the overhead cost per unit by measuring the total overhead cost i.e. incurred and this is be divided by the number of units produced
So as per the given options, the above option should be considered
g The fundamental limitation of a matrix structure is that it ________. A. introduces more errors in the decision-making process due to the speed of the process B. institutes a dual hierarchy that violates the unity-of-command principle C. isolates upper management from operational levels D. creates a poor organizational culture
Answer:
The correct answer is the option B: Institutes a dual hierarchy that violates the unity-of-command principle.
Explanation:
To begin with, in the business management field the concept known as "Matrix structure" or matrix management as well is refered to the dynamic way of organizating the company that has the characteristic of having the employees of the business answering directly to two or more superiors of leaders instead of just one. Therefore that in this type of organizational structure sometimes the matters of certain departments tend to interfere or collide with the objectives of others. That is the main reason why it does violates the principle of unity-of-command described in the organizational theory.
The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state’s newest millionaire. By choosing the six winning numbers on last week’s state lottery, Mr. Ormsby won the week’s grand prize totaling $1.38 million. The State Lottery Commission indicated that Mr. Ormsby will receive his prize in 20 annual installments of $69,000 each. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: 1. If Mr. Ormsby can invest money at a 11% rate of return, what is the present value of his winnings?
Answer:
the present value of his winning is $549,447
Explanation:
The computation of the present value of his winning is shown below:
= Annual installment × PVIFA factor at 20 years for 11%
= $69,000 × 7.963
= $549,447
Hence, the present value of his winning is $549,447
The same should be considered and relevant
A 5-year treasury bond with a coupon rate of 8% (paid semiannually) has a face value of $1,000. What is the semiannual coupon payment
Answer:
$40
Explanation:
Coupon payment = Face value * Coupon rate * 1/2
Coupon payment = $1,000 * 8% * 1/2
Coupon payment = $1,000 * 0.08 * 1/2
Coupon payment = $40
So, the semiannual coupon payment is $40.
Setting a passing score for whites at 80 out of 100 and a passing score of 60 out of 100 for minority applicants in an admission test is an example of race norming.
A. True
B. False
Answer: True
Explanation:
Race norming simply refers to the practice whereby two different cut off test scores are set for employment which is based on race. Race-norming, is also referred to as the within-group score conversion and it has to do with the adjustment of test scores in order to account for the ethnicity of the test-taker.
Since a passing score for whites was set at 80 out of 100 while a passing score of 60 out of 100 was set for the minority applicants, then it's an example of race norming.
Justin builds fences for a living. Justin's out-of-pocket expenses (for wood, paint, etc.) plus the value that he places on his own time amount to his a. profit. b. producer surplus. c. cost of building fences.
Answer:
c. Cost of building fences.
Explanation:
The cost of production encompasses the money spend as well as the time to produce a commodity. For example, if a person spends $15 to make a juice cup and invest 1 hour to make so the total cost of production is $15 and the time invested by the producer. Thus, option "c" is correct.
A company is considering investing in a new machine that requires a cash payment of $38,198 today. The machine will generate annual cash flows of $15,904 for the next three years. What is the internal rate of return if the company buys this machine?
Answer:
Internal rate of return = 12%
Explanation:
Below is the calculation of internal rate of return:
The new machine requires cash payment = $38198
Annual cash flows = $15904
Time period = 3 years
First divide the cash payment with the annual cash flow and then look at the factor table to find the interest rate at 3rd year.
Factor = 38198 / 15904 = 2.40
Now look the value 2.40 in the table:
Thus Internal rate of return = 12%
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:
Direct materials $86,000
Direct labor $43,500
Variable manufacturing overhead $21,800
Fixed manufacturing overhead 33,100
Total manufacturing overhead $54,900
Variable selling expense $15,400
Fixed selling expense 24,800
Total selling expense $40,200
Variable administrative expense $5,700
Fixed administrative expense 28,400
Total administrative expense $34,100
Required:
a. What is the total product cost?
b. What is the total period cost?
Answer:
Results are below.
Explanation:
The product costs are all the expenses incurred in production being direct and indirect:
Direct materials= 86,000
Direct labor= 43,500
Variable manufacturing overhead= 21,800
Fixed manufacturing overhead= 33,100
Total product cost= $184,400
The period costs are all the expenses not involved in production (selling and administrative):
Variable selling expense= 15,400
Fixed selling expense= 24,800
Variable administrative expense= 5,700
Fixed administrative expense= 28,400
Total period cost= $74,300
1) A First National Bank depositor made out a deposit slip showing currency of $620.00, coins of $13.25,
and two checks for $113.30 and $174.00. Compute the total deposit shown on the deposit slip.
(2 pts)
$920.55
$902.55
$633.25
$820.55
Answer:
The right answer is "$907.30".
Explanation:
Given that:
Currency,
= $620.00
Two checks,
= $113.30
and,
= $174.00
Now,
The total deposit shown will be:
= [tex]Currency+2 \ checks[/tex]
By substituting the values, we get
= [tex]620.00+(113.30+174.00)[/tex]
= [tex]620.00+287.3[/tex]
= [tex]907.30[/tex] ($)
Debbie promises to sell Brian a one of a kind baseball card for $1,000. Brian says that he does not have the money right now, but will have at it his next paycheck. Debbie gives Brian a signed written notice that the offer will stay open for two months. Does it the analysis change if Debbie is a merchant seller for this to be a firm offer under the UCC?
a. Yes, such offers are not reasonable.
b. Yes, such offers are voidable.
c. Yes, such offers are void.
d. Yes, the offeror must be a merchant, pursuant to the UCC definition of merchant.
e. Yes, such offers are only valid until the sun sets.
Answer:
d. Yes, the offeror must be a merchant, pursuant to the UCC definition of merchant.
Explanation:
The Uniform Commercial Code (UCC) establishes that firm offers can only be made by merchants. They also apply only to the sale of goods, but the baseball card is a type of good.
The problem is that Debbie is not probably a merchant. In order for her to be considered a merchant, she would need to be in the business of buying and selling baseball cards on a regular basis.
Present value Present value of an
Periods of $1 at 9% Annuity of $1 at 9%
1 0.9174 0.9174
2 0.8417 1.7591
3 0.7722 2.5313
4 0.7084 3.2397
Cliff Co. wants to purchase a machine for $82,000, but needs to earn a return of 9%. The expected year-end net cash flows are $32,000 in each of the first three years, and $36,000 in the fourth year. What is the machine's net present value?
a. $(998).
b. $24,504.
c. $106,504.
d. $(56,498).
e. $132,000.
Answer:
B
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 = $-82,000
Cash flow in year 1 = $32,000
Cash flow in year 2 = $32,000
Cash flow in year 3 = $32,000
Cash flow in year 4 = $36,000
I = 9%
NPV = $24,504.
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
An automatic stabilizer:________
a) increases inflationary pressure during expansions.
b) increases the drop in disposable income during recessions and increases the jump in disposable income during expansions.
c) increases tax revenue relative to government spending throughout the business cycle.
d) decreases tax revenue relative to government spending throughout the business cycle.
e) reduces the drop in disposable income during recessions and reduces the jump in disposable income during expansions.
Answer:
E
Explanation:
Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . examples include progressive tax and transfer payments
In an expansion, progressive tax increases the tax paid and this reduces disposable income
In a contraction, tax paid is reduced and this increases disposable income
Automatic stabilizers contrasts with discretionary fiscal policies.
Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
Discretionary fiscal policies can either be expansionary or contractionary
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes
Select all that apply The margin of safety is: (Check all that apply.) Multiple select question. the difference between expected sales and break-even sales divided by expected sales. the amount sales can drop before the company incurs a loss. adequate if greater than 15% to 20%. always expressed as a dollar amount (not in units or percentages).
Answer: • The amount sales can drop before the company incurs a loss.
• The difference between expected sales and break-even sales divided by expected sales.
Explanation:
The correct option regarding the margin of safety are that:
• The amount sales can drop before the company incurs a loss.
• The difference between expected sales and break-even sales divided by expected sales.
A trademark is a device that can take almost any form as long as it is capable of identifying and distinguishing specific products or services. Owens-corning fiberglas corporation's trademark is an example of a poduct that is protected by:__________
a. combination of letters and designs.
b. product shape.
c. picture.
d. logo.
e. color.
Answer:
E)color
Explanation:
Trademark can be regarded as one of intellectual property, it can be explained as recognizable insignia, symbol as well as phrase and word, which denotes a particular product and it's one that legally differentiates that particular Product from all other products of its kind. A trademark can also be regarded as one that exclusively identifies a product and allow the consumer to know specific company it belongs to and also allows them to know company that have the ownership of the brand.
It should be noted that trademark is a device that can take almost any form as long as it is capable of identifying and distinguishing specific products or services.
For instance Owens-corning fiberglas corporation's trademark is an example of a poduct that is protected by logo.
You want to invest $37,000 today to accumulate $41,650 to buy a car. If you can invest at an interest rate of 3% compounded annually, how many years will it take to accumulate the required amount
Answer:
4 years
Explanation:
It takes 4 years to accumulate the required amount.
Calculate real rate if you have nominal rate is 12% and inflation rate is 7% Enter the answer in percentage format to two decimal place without the % sign -> 9.30 and not 9.3% or .093)
Answer: 5.00
Explanation:
The real interest rate is the difference between the nominal interest and the inflation rate.
Real interest rate will be:
= Nominal interest rate − Inflation rate.
= 12% - 7%
= 5.00
Therefore, the real Interest rate is 5.00.
In a Chapter 11 bankruptcy, a class of creditors is considered to have accepted the bankruptcy plan when: Group of answer choices two-thirds of the class in dollar amount agree. at least 51 percent of the class in number agree. at least 90 percent of the members of the class agree. at least 51 percent of the class in dollar amount and two-thirds of the class in number agree. one-half of the class in number and two-thirds of the class in dollar amount agree.
Answer:
In a Chapter 11 bankruptcy, a class of creditors is considered to have accepted the bankruptcy plan when:
one-half of the class in number and two-thirds of the class in dollar amount agree.
Explanation:
In a Chapter 7 bankruptcy, the business assets are liquidated to pay the creditors. In a Chapter 11 bankruptcy, the business assets are not liquidated. Instead, the business is refinanced as the assets and debts are reorganized, making it possible for the continued existence of the business. This is the reason the agreement of the creditors are usually paramount in the decision to undergo a Chapter 11 bankruptcy, unlike a Chapter 7 bankruptcy.
The increase or decrease in owner's equity is reported on the
O A income statement.
B statement of owner's equity.
C balance sheet.
D All of the above
Accounting
Answer:
B
Explanation:
Owners equity also known as the Statement of Changes in Owner's Equity is an example of a financial statement. It records the owners equity and changes to the owners equity during a financial year.
A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a point in time.
The income statement records a company's income and expenses in a financial year. It is used for determining if a company is earning a profit or a loss
mprudential, Incorporated, has an unfunded pension liability of $750 million that must be paid in 25 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 10.0 percent, what is the present value of this liability
Answer:
PV= $69,221,998.63
Explanation:
Giving the following information:
Future Value= $750,000,000
Number of periods (n)= 25 years
Discount rate (i)= 10%
To calculate the present value, we need to use the following formula:
PV= FV / (1 + i)^n
PV= 750,000,000 / (1.1^25)
PV= $69,221,998.63
A second-year MBA student, takes three hours off one evening and uses his car to go to a movie with a friend. A ticket to the movie costs Josh $5, gasoline for the trip costs $1, and Josh passed up tutoring a student that night at $10 an hour. He could also have used the three hours to work as a grader for a professor at $15 an hour. What is Joshâs economic cost of going to the movie?
Answer:
$-39
Explanation:
Economic cost is implicit cost less accounting cost
Implicit cost or opportunity cost : implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. It is used in calculating economic profit
There are two opportunities the student forgoes when he decides to go to the movies. They are, the amount he would have earned if he tutored the student which has a value of $10 / hour and the amount he would have earned working as a grader which is $15 / hour.
The next best option is $15 / hour because it has a higher value
total economic cost = 15 x 3 = 45
the cost of the ticket and the cost of gasoline are explicit costs
Explicit cost includes the amount expended in going to the cinema
6 - 45 = -39
A local distributor for a national tire company expects to sell approximately 10,160 tires of a certain size and tread design next year. Annual carrying cost is $14 per tire and ordering cost is $76. The distributor operates 287 days a year.
a. What is the EOQ
b. How many times per year does the store reorder?
c. What is the length of an order cycle?
d. What is the total annual cost if the EOQ quantity is ordered?
Answer:
Following are the solution to the given points:
Explanation:
Given:
[tex](D) = 10,160\ tires / year\\\\(H) = \$14 / tire\\\\(S) = \$76\\\\work\ days\ number = 287 \ \frac{days}{year}[/tex]
For point a:
[tex]EOQ = \sqrt{(\frac{2DS}{H})}[/tex]
[tex]=\sqrt{(\frac{2\times 10,160\times 14 }{14})}\\\\=\sqrt{({2\times 10,160})}\\\\=\sqrt{20320}\\\\=142.548[/tex]
For point b:
Calculating the order of number of per year [tex]= \frac{D}{EOQ}[/tex]
[tex]=\frac{10,160}{142.548}\\\\=71.27\approx 71[/tex]
therefore, the reorded store 71 times per year
For point c:
Calculating the order cycle length [tex]= (\frac{EOQ}{D}) \times \text{work days number in a year}[/tex]
[tex]= (\frac{142.548}{10,160}) \times287\\\\= 0.0140\times287\\\\=4.018[/tex]
For point d:
[tex]\text{Total annual cost = carrying cost + ordering cost}[/tex]
Carrying cost:
[tex]= (\frac{EOQ}{2}) \times H \\\\= (\frac{142.548}{2}) \times 14 \\\\= 71.274 \times 14 \\\\= \$997.836 \approx 998\\\\\[/tex]
Ordering cost:
[tex]= (\frac{D}{EOQ}) \times S \\\\ = (\frac{10160}{142.548}) \times 76 \\\\ = 71.274\times 76\\\\ = \$5416.824\\\\[/tex]
[tex]\therefore\\\\\text{Total annual cost = Carrying cost + Holding cost}[/tex]
[tex]=998+5416.824\\\\=6414.824[/tex]
BK Books is an online book retailer that also has 10,000 "bricks and mortar" outlets worldwide. You are a risk-neutral manager within the CorporateFinance Division and are in dire need of a new financial analyst. You onlyinterview students from the top MBAprograms in your area. Thanks to yourscreening mechanisms and contacts, the students you interview ultimately dif-fer only with respect to the wage that they are willing to accept. About 5 per-cent of acceptable candidates are willing to accept a salary of $60,000, while95 percent demand a salary of $110,000. There are two phases to the inter-view process that every interviewee must go through. Phase 1 is the initialone-hour on-campus interview. All candidates interviewed in Phase 1 are alsoinvited to Phase 2 of the interview, which consists of a five-hour office visit.In all, you spend six hours interviewing each candidate and value this time at$750. In addition, it costs a total of $4,250 in travel expenses to interview each candidate. you are very impressed with the first interviewee completing both phases of bk books’s interviewing process, and she has indicated that her reservation salary is $110,000. should you make her an offer at that salary or continue the interviewing process? explain.
Answer: Therefore, we should make her an offer at that salary
Explanation:
Based on the information given in the question,
Lowest salary = $60,000
Highest salary = $110,000
Expected Benefit = 5% × ($110,000 - $60,000) = 5% × $50,000 = $2500
The cost of conducting another interview will be:
= cost of time + cost of travel
= $750 + $4250
= $5000
Since the cost of conducting the additional interview is more than the expected benefit, therefore the interviewee should be hired rather than continuing the interviewing process.
Therefore, we should make her an offer at that salary.
Filer Manufacturing has 8,136,353 shares of common stock outstanding. The current share price is $26.75, and the book value per share is $5.85. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $48,480,532, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $66,060,894, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par. The most recent dividend was $1.97 and the dividend growth rate is 0.04. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 0.26. What is Filer's aftertax cost of debt? Enter the answer with 4 decimals (e.g. 0.2345)
Answer:
Filer Manufacturing
Filer's after-tax cost of debt is:
= 4.1440%.
Explanation:
a) Data and Calculations:
Outstanding common stock shares = 8,136,353
Current share price = $26.75
Book value per share = $5.85
Tax rate = 0.26
Most recent dividend paid = $1.97 per share
Dividend growth rate = 0.04
Outstanding bond issues:
First Bond Second Bond Total
Face value of issue $48,480,532 $66,060,894 $114,541,426
Selling price 83% of par 92% of par
Sales price $40,238,842 $60,776,022 $101,014,864
Relative sizes 40% 60%
Coupon rate of first bond 0.05 0.06
Weighted average cost of bonds 0.02 0.036
Before-tax cost of bonds = 0.056
After-tax cost of bonds = 0.056 * (1 - 0.26) = 0.04144 = 4.1440%
Maturity period 10 years 20 years
_____ feasibility is the measure of how well a proposed solution will work in an organization and how internal and external customers will react to it.
Answer:
Operational
Explanation:
Operational feasibility is a strategic process that typically involves measuring how well a proposed solution to a particular problem will work in an organization while also determining how the organization's internal and external customers will react to the proposed solution.
As a general rule, it's very important and necessary that an organization carry out an operational feasibility so as to have a good knowledge and understanding of its proposed actions.
Answer:
Operational
Explanation:
Operational feasibility is the measure of how well a proposed solution will work in an organization and how internal and external customers will react to it.
We Are the World is an importing company that specializes in importing hand-made arts and crafts from crafters and artisans around the world. The company has about $4 million worth of stock outstanding. Due to its desire to avoid double taxation, it is structured so that its individual shareholders pay taxes on all of the company's income. The shareholders report the flow-through of income and losses on their personal tax returns and are assessed at their individual tax rates. We Are the World is a(n):_____.
a. limited liability company (LLC).
b. C corporation.
c. S corporation.
d. G corporation.
e. investment trust.
Answer:
c. S corporation.
Explanation:
S corporations that are elected for passing out the corporate income, losses, deductions and credits via to the shareholders for the federal tax motive. It is responsible for tax on specific gains and the passive income for the entity level
Also the shareholders could reported the flow via income and the losses on the personal income tax returns and can be assess at individual tax rates
So, the option c is correct
The electronic invoicing and payment (EIPP) system for the B2B environment is similar to the electronic bill presentment and payment (EBPP) system for the B2C environment. a) True b) False
Answer:
a) True
Explanation:
Electronic bill payment and presentment (EBPP) can be regarded as process that is been utilized by
companies in collection of payments electronically by utilization of systems such as Automated Teller Machines (ATMs) as well as Internet and direct-dial access. This has turned to a core component of online banking as regards to some financial institutions today, some industries such as telecommunications and insurance providers make use of it.
Electronic invoicing and presentment payment (EIPP) can be regarded as process involving sending of electronic invoice to customers using the internet, as well as the ability of customers to be able to pay that invoice online also. It give a solution that brings about increased productivity, as well as given room for business owner to spend more time in developing their business as well as relationships with their customers.
It should be noted that the The electronic invoicing and payment (EIPP) system for the B2B environment is similar to the electronic bill presentment and payment (EBPP) system for the B2C environment.
Transactions for Jayne Company for the month of June are presented below.
June:
1 Issues common stock to investors in exchange for $5,000 cash.
2 Buys equipment on account for $1,100.
3 Pays $740 to landlord for June rent.
12 Sends Wil Wheaton a bill for $700 after completing welding work.
Required:
Journalize the transaction.
Answer:
June 1
Debit : Cash $5,000
Credit : Common Stock $5,000
June 2
Debit : equipment $1,100
Credit : account payable $1,100
Explanation:
Journalize the transaction.
Suppose we have the following information concerning the printed magazine and digital magazine subscription markets:
Printed Magazine Subscription Price0=$20 Digital Magazine Subscription Quantity0=216 Printed Magazine Subscription
Price1=$13.40 Digital Magazine Subscription Quantity1=208 Question:
What is the cross-price elasticity of demand between printed and digital magazine subscriptions?
Answer:
Cross-price elasticity of demand between printed and digital magazine subscriptions is 8.91.
Explanation:
Percentage change in price of Printed Magazine Subscription = ((Printed Magazine Subscription Price1 - Printed Magazine Subscription Price0) / Printed Magazine Subscription Price0) * 100 = (($13.40 - $20) / $20) * 100 = -33%
Percentage change in quantity of Digital Magazine Subscription Quantity = ((Digital Magazine Subscription Quantity1 - Digital Magazine Subscription Quantity0) / Digital Magazine Subscription Quantity0) * 100 = ((208 - 216) / 216) * 100 = -3.7037037037037%
Cross-price elasticity of demand between printed and digital magazine subscriptions = Percentage change in price of Printed Magazine Subscription / Percentage change in quantity of Digital Magazine Subscription Quantity = -33% / -3.7037037037037% = 8.91
Note: The relationship between printed and digital magazine subscriptions is that they are substitutes because the cross-price elasticity between them is positive. That is, an increase in the price of printed digital magazine makes consumer to switch to and buy more of digital magazine which is a substitute.
Ken Jones, an architect, organized Jones Architects on April 1, 20Y2. During the month, Jones Architects completed the following transactions: Transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $30,000. Purchased used automobile for $20,000, paying $4,500 cash and giving a note payable for the remainder. Paid April rent for office and workroom, $3,000. Paid cash for supplies, $1,440. Purchased office and computer equipment on account, $6,000. Paid cash for annual insurance policies on automobile and equipment, $2,000. Received cash from a client for plans delivered, $7,500. Paid cash to creditors on account, $1,740. Paid cash for miscellaneous expenses, $375. Received invoice for blueprint service, due in May, $1,000. Recorded fees earned on plans delivered, payment to be received in May, $5,200. Paid salary of assistant, $1,600. Paid cash for miscellaneous expenses, $810. Paid installment due on note payable, $240. Paid gas, oil, and repairs on automobile for April, $390.
Required:
Record the above transactions in T accounts.
Answer:
Jones Architects
T-accounts:
Cash
Account Titles Debit Credit
Common Stock, $30,000
Automobile $4,500
Rent expense $3,000
Supplies $1,440
Prepaid Insurance $2,000
Service Revenue $7,500
Accounts Payable $1,740
Miscellaneous expenses, $375
Salary Expense $1,600
Miscellaneous expenses, $810
Note payable, $240
Automobile expense $390
Common Stock
Account Titles Debit Credit
Cash $30,000
Note payable
Account Titles Debit Credit
Automobile $15,500
Cash $240
Automobile
Account Titles Debit Credit
Cash $4,500
Note payable $15,500
Rent expense
Account Titles Debit Credit
Cash $3,000
Supplies
Account Titles Debit Credit
Cash $1,440
Office and computer equipment
Account Titles Debit Credit
Accounts Payable $6,000
Accounts Payable
Account Titles Debit Credit
Office and computer equipment $6,000
Cash $1,740
Blueprint expense $1,000
Prepaid Insurance
Account Titles Debit Credit
Cash $2,000
Service Revenue
Account Titles Debit Credit
Cash $7,500
Accounts receivable $5,200
Miscellaneous expenses
Account Titles Debit Credit
Cash $375
Cash $810
Blueprint expense
Account Titles Debit Credit
Accounts payable $1,000
Accounts Receivable
Account Titles Debit Credit
Service Revenue $5,200
Salary Expense
Account Titles Debit Credit
Cash $1,600
Automobile expense
Account Titles Debit Credit
Cash $390
Explanation:
a) Data and Analysis:
Cash $30,000 Common Stock, $30,000
Automobile $20,000 Cash $4,500 Note payable $15,500
Rent expense $3,000 Cash $3,000
Supplies $1,440 Cash $1,440
Office and computer equipment $6,000 Accounts Payable $6,000
Prepaid Insurance $2,000 Cash $2,000
Cash $7,500 Service Revenue $7,500
Accounts Payable $1,740 Cash $1,740
Miscellaneous expenses, $375 Cash $375
Blueprint expense $1,000 Accounts payable $1,000
Accounts receivable $5,200 Service Revenue $5,200
Salary Expense $1,600 Cash $1,600
Miscellaneous expenses, $810 Cash $810
Note payable, $240 Cash $240
Automobile expense $390 Cash $390
