Prepare journal entries to record each of the following four separate issuances of stock. A corporation issued 3,000 shares of $20 par value common stock for $72,000 cash. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $22,000. The stock has a $1 per share stated value. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $22,000. The stock has no stated value. A corporation issued 750 shares of $100 par value preferred stock for $97,000 cash

Answers

Answer 1

Answer and Explanation:

The journal entries are shown below:

1. Cash $72,000

        To common stock (3,000 shares × $20) $60,000

        To Additional capital paid $12,000

(Being the issuance of the common stock is recorded)

For recording this we debited the cash as it increased the cash and credited the other two accounts as it increased the stockholder equity

2. Organisation expense Dr $22,000

               To common stock (1,500 shares × $1)  $1,500

               To Additional capital paid $20,500

(Being the issuance of the common stock is recorded)

For recording this we debited the expense as it increased the expense and credited the other two accounts as it increased the stockholder equity

3.  Organisation expense $22,000

             To common stock  $22,000

(Being the issuance of the common stock is recorded)

For recording this we debited the expense as it increased the expense and credited the common stock as it increased the stockholder equity

4.  Cash $97,000

         To preferred stock (750 shares × $100)  $75,000

          To Additional capital paid $22,000

(Being the issuance of the preferred stock is recorded)

For recording this we debited the cash as it increased the cash and credited the other two accounts as it increased the stockholder equity


Related Questions

The pretax financial income (or loss) figures for Whispering Company are as follows. 2015 $164,000 2016 275,000 2017 86,000 2018 (164,000 ) 2019 (390,000 ) 2020 113,000 2021 98,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2015 and 2016 and a 20% tax rate for the remaining years. Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.)

Answers

Answer and Explanation:

The journal entries are shown below:

On 2017

Income Tax Expense $17,200 ($86,000 × 20%)

   To Income Tax Payable $17,200

(Being the income tax expense is recorded)

On 2018

Income Tax Refund Receivable $32,800 ($164,000 × 20%)

    To Income tax refund due to loss carry back $32,800

(Being the refund receivable is recorded)

On 2019

Income Tax Return Receivable  $17,200  ($86,000 × 20%)

          To Income tax refund $17,200

(Being the refund receivable is recorded)

Deferred Tax Asset $60,800 [(390,000 - $86,000) × 20%]

    To income tax refund $60,800

(Being the refund receivable is recorded)

On 2020

Income Tax Expense $22,600 ($113,000 × 20%)

      To Deferred Tax Asset $22,600

(Being the income tax expense is recorded)

On 2021

Income Tax Expense $19,600 ($98,000 × 20%)

      To Deferred Tax Asset $19,600

(Being the income tax expense is recorded)

Ahmed, a lawyer, sold his car to Carlos. Has an implied warranty of merchantability been created by this transaction? No, because Ahmed is not a merchant. Yes, because if the car is defective Carlos will have a right to return in to Ahmed. No, Ahmed has not implied so either orally or in written. Yes, because a car is "goods" and the Uniform Commercial Code applies to contracts for the sale of goods.

Answers

Answer:

A.  No, because Ahmed is not a merchant.

Explanation:

Implied warranty of merchantability is a law in contract which states that when there is a transaction between a seller (the merchant), and a buyer, there is an unwritten guarantee from the seller, that the product meets up to the ordinary standards of care. This means that the goods must be fit to do what the merchant says it will do.  Therefore, if the seller finds it defective, he could return it to the seller. and if the seller refuses to make a change, a legal case could be established. The merchant by law is a wholesaler or retailer, who sells goods in which he has expertise or special skills.

Ahmed in the question could be argued in court to not be a merchant of cars and as such, has no expertise with which he can make a guarantee for the car being sold to Carlos.

Dax Pet Foods compiled the following information for the year for its dog division Average operating assets $3,500,000 Controllable margin $315,000 Dax’s corporate office expects the division to earn a minimum return of 8%. Suppose the dog division invests in a new machine that will produce a new dog food product. The machine is expected to generate $19,500 of controllable profit and will cost $150,000. If Dax buys the new machine, what happens to ROI?

Answers

Answer:$2836360

Explanation:

EHW Office Supplies, Inc. uses the perpetual inventory system. On September 4, 2019,EHW sold merchandise inventory on account at a price of $50,000 with payment terms of 1/10, n/30. The merchandise cost EHW $40,000. On September 12, 2019, the customer pays the proper amount due for the merchandise based on the credit terms. How much will be credited to Accounts Receivable when recording the collection

Answers

Answer:

$50,000

Explanation:

The cash payment was made within the discount period of 10 days,hence the amount received in respect of the sales on account is face value minus discount of 1%.

When sales was made EHW would have debited accounts receivable with $50,000 and credited same to sale revenue.

Cash received=$50,000*(1-1%)=$49,500

discount =$50,000-$49,500=$500

The appropriate entries for cash collection:

Dr cash    $49,500

Dr discount allowed  $500

Cr accounts receivable    $50,000

Purdum Farms borrowed $16 million by signing a five-year note on December 31, 2017. Repayments of the principal are payable annually in installments of $3.2 million each. Purdum Farms makes the first payment on December 31, 2018 and then prepares its balance sheet. What amount will be reported as current and long-term liabilities, respectively, in connection with the note at December 31, 2018, after the first payment is made?

Answers

Answer:

Current liabilities   $3.2 million

long-term liabilities =$16 million-$3.2 million-$3.2 million=$9.6 million

Explanation:

The amount classified as current liabilities as at 31st December 2018 is the portion of the loan repayable within a year,that the repayment due at 31st December 2019 which is $3.2 million.

The amount to be classified as long term liabilities is the balance of the loan after having taken out the payment in year 1 as well as the repayment to be made in year 2

On January 1, a company issued and sold a $408,000, 9%, 10-year bond payable, and received proceeds of $403,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is:

Answers

Answer and Explanation:

The Journal entry is shown below:-

Bond interest expense Dr, $18,610

         To Cash $18360

           To Discount on bonds $250

(Being first interest payment is recorded)

For recording the first interest payment we simply debited the bond interest expenses as it increased the expenses and we credited cash and discount on bonds as  it reduced the assets and the discount should be credited

Working Note

Total discount on bonds issued = Sold bonds - Received proceeds

= $408,000 - $403,000

= $5,000

Amortization of Semi Annual Discount = Total discount on bonds issued ÷ Number of periods

= $5,000 ÷ 20

= $250

Cash interest paid = Sold bonds × Interest rate × From Jan to June ÷ Total number of months in a year

= $408,000 × 9% × 6 ÷ 12

= $18,360

Total Interest expense = Cash interest paid + Amortization of Semi Annual Discount

= $18,360 + $250

= $18,610

At the beginning of 20D, Braga Company had office supplies inventory of $800. During 20D, the company purchased office supplies amounting to $2,500 (paid for in cash and debited to office supplies inventory). At December 31, 20D, the end of the accounting year, a count of office supplies still on hand reflected $500. The adjusting entry Braga Company will record on December 31, 20D to adjust the office supplies inventory account would include a A) debit to office supplies expense for $2,800. B) debit to office supplies inventory for $2,800. C) debit to supplies expense for $2,500. D) credit to office supplies inventory for $500.

Answers

Answer:

A) debit to office supplies expense for $2,800

Explanation:

When Supplies is purchased, Debit supplies and credit Cash/Accounts payable. As Supplies are used up, debit supplies expense (with the amount used) and Credit Supplies account.

The movement in the balance of supplies at the start and end of a period is as a result of usage and purchases. While usage reduces the balance in supplies, purchases increases the balance. This may be expressed mathematically as  

Opening balance + purchases - units used = closing balance  

Hence,

$800 + $2500 - amount used = $500

amount used up = $800 + $2500 - $500

= $2800

Darrin’s Auto Northern Division is currently purchasing a part from an outside supplier. The company's Southern Division, which has no excess capacity, makes and sells this part for external customers at a variable cost of $15 and a selling price of $27. If Southern begins sales to Northern, it (1) will use the general transfer-pricing rule and (2) will be able to reduce variable cost on internal transfers by $3. On the basis of this information, Southern would establish a transfer price of:

Answers

Answer:

Transfer price = $24

Explanation:

As per the data given in the question,

The excess capacity of Company's Southern division is nill therefore for transferring the units the division will have to decrease its external sales.The Loss occurred due to reduction in external sales should be from inter divisional transfer price. Therefore,

Transfer price = variable cost + Loss of contribution

= ($15 - $3) + ($27 - $15)

= $24

When I called about the cost of these items, it was implied that my total would only be $35.00

Answers

Answer:

Each Item Cost 11.6666667

Explanation:

35.00 / 3 = 11.6666667

So each item cost about 11.66 or 11.67

A work center uses kanban containers that hold 200 parts. To produce enough parts to fill a container, 60 minutes of setup plus run time are needed. Moving the container to the next workstation, waiting time, processing time at the next work station, and return of the empty container take 120 minutes. There is an overall demand rate of 10 units per minute. Calculate the number of containers needed for this process.

Answers

Answer:

9 containers

Explanation:

Data given

Container holds (capacity) = 200 units

Demand rate per minute = 10 units

The computation of number of containers needed is shown below:-

Time to fill container = Setup time + Processing time

= 60 + 120

= 180 minutes

Number of containers (n) = (Demand × Time to fill container) ÷ Capacity of the container

= (10 × 180) ÷ 200

= 1,800 ÷ 200

= 9 containers

Therefore for computing the number of containers we simply applied the above formula.

Sports Bar and Tasty Bakery are adjacent businesses with adjoining parking lots. Sports Bar offers Tasty a discount on purchases if the bakery will not tow the cars of Sports Bar's patrons who park in the bakery's lot. The discount is legally sufficient consideration



a. because it is a promise of something of value.


b. only if Tasty uses it.


c. only if Sports Bar adds a cash rebate.


d. under no circumstances.

Answers

Answer:

The correct answer is the option A: because it is a promise of something of value.

Explanation:

To begin with, in order to understand that the discount is legally sufficient consideration it is necessary to understand that it is due to the fact that what the company is offering is something of value for them, therefore that they decide to offer it to the other business in order to make an agreement according to the situation that they are both in. Moreover, that promise is consider to be legitim in court if it was stated in a written way in where both parties agree to the terms of use.

At the beginning of last year, Tarind Corporation budgeted $900,000 of fixed manufacturing overhead and chose a denominator level of activity of 600,000 machine-hours. At the end of the year, Tari's fixed manufacturing overhead budget variance was $12,000 favorable. Its fixed manufacturing overhead volume variance was $19,200 favorable. Actual direct labor-hours for the year were 625,000. What was Tari's total standard machine-hours allowed for last year's output?

Answers

Answer:

The answer is 612800 hours

Explanation:

Solution

Recall that:

At the start of last year, Tari Corporation budgeted $900,000 of fixed manufacturing overhead and chose a denominator level of activity of 600,000 machine-hours.

At the end of the year, Tari's fixed manufacturing overhead budget variance was $12000 favorable. Its fixed manufacturing overhead volume variance was $19200 favorable. The direct actual labor-hours for the year were 625,000. What was Tari's standard total machine-hours allowed for last year's output?

Now,

The Budgeted at beginning of  the year =  $900,000

fixed manufacturing overhead for =  600,000 machine hours

Thus,

The Standard = $900,000 / 600,000 hours = $1.5 fixed overhead / machine/machining hour

So,

At end of year, manufacturing overhead volume was $19,200 favorable which means  that,

$19200 / $1.5 = 12800 additional hours.

Total Standard Machine Allowance Allowed for output = 600,000 +12800 = 612800 hours

Therefore, Tari's total standard machine-hours allowed for last year's output is 612800 hours

If  Tarind Corporation budgeted $900,000 of fixed manufacturing overhead and chose a denominator level of activity of 600,000 machine-hours. At the end of the year, Its fixed manufacturing overhead volume variance was $19,200 favorable. What Tari's total standard machine-hours allowed for last year's output will be is: 612,800 machine hours

Using this formula

Total standard machine-hours=Machine -hours level of activity+ [Fixed manufacturing overhead volume variance÷(Fixed manufacturing overhead÷ Machine -hours level of activity)]

Where:

Machine -hours level of activity=600,000

Fixed manufacturing overhead volume variance=$19,200

Fixed manufacturing overhead=$900,000

Let plug in the formula

Total standard machine-hours=600,000+[$19,200÷($900,000÷600,000)]

Total standard machine-hours=600,000+($19,200÷1.5)

Total standard machine-hours=600,000+12,800

Total standard machine-hours=612,800 machine hours

Inconclusion if Tarind Corporation budgeted $900,000 of fixed manufacturing overhead and chose a denominator level of activity of 600,000 machine-hours. At the end of the year, Its fixed manufacturing overhead volume variance was $19,200 favorable. What Tari's total standard machine-hours allowed for last year's output will be is: 612,800 machine hours

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https://brainly.com/question/17272909

Suppose that SoS sells both versions and wants to charge different prices for different versions. What is the highest price of the bluetooth version for the high-valuation buyers? (Hint: Since low-valuation buyers will not have an incentive to buy the more expensive version, the highest price of the stripped-down version for the low-valuation buyers is equal to their willingness to pay, i.e., pL = $250)

Answers

Answer:

Check the explanation

Explanation:

Since the high valuation customers are willing to pay $500 for the Bluetooth headphones, that price should be set for the Bluetooth versions. The problem will arise if the high valuation customers shift to the stripped down version as well. However, since they care for the Bluetooth versions and stripped down versions separately, it is highly likely that they will prefer the Bluetooth headphones.

So the highest price that can be set for the Bluetooth headphones for the high value buyer will be $500.

5) If the price is set at $500 for high value customers and $250 for low value customers, total profit can be given as

Profit = 1,000,000 * (250 - 100) + 800,000 * (500 - 100)

Profit = 150,000,000 + 320,000,000 = $470 million

Abbott Landscaping purchased a tractor at a cost of $30,000 and sold it three years later for $16,200. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $4,000 residual value. Tractors are included in the Equipment account.

Assume the tractor was sold for $12,400 instead of $19,800. Record the sale.

Answers

Answer:

                                                                    Debit Credit

Cash                                                         $16,200  

Accumulated depreciation-equipment $15,600  

Gain on sale of equipment                                  1,800

Equipment                                                        30,000

(To record sale of equipment)  

Explanation:

According to the given data we have the following:

Equipment=$30,000

Cash=$16,200

Therefore,The accumulated depreciation would be=($30,000-4,000)/5*3

The accumulated depreciation would be=$15,600

Therefore, the sale to record would be as follows:

                                                                      Debit Credit

Cash                                                         $16,200  

Accumulated depreciation-equipment $15,600  

Gain on sale of equipment                                  1,800

Equipment                                                        30,000

(To record sale of equipment)  

Money's power to buy goods and services changes ________.

Answers

Answer:

...with rates of inflation.

Explanation:

The more that a particular currency appears in the market without any work (value) being associated with that currency, the smaller the value of that particular form of currency (For example, the U.S. dollar). When inflation is high, banks will increase interest rates on loans in order to get rid of some of the of the surplus currency in the market, bringing down inflation and increasing the total value of a particular form of currency.

[10 points] Suppose Wilwaukee Telecom offers its users the option of paying either (a) $2.00 per minute for telephone service or (b) a $125 flat charge for a year of unlimited toll-free calls. Consider a customer with an annual demand for telephone service of P = 11 – 0.1Q, where P is the price per minute and Q is the number of minutes of calls made per year. Calculate the consumer surplus for each of the plans (a) and (b).

Answers

Answer:

For plan A, P = 2.

Then from demand curve, 2 = 11-.1Q

So .1Q = 9

Q* = 90

B) under plan b, P = zero

So make 11 = .1Q

Q* = 110

Now Consumer surplus from a)

CS = .5*(11-2)*90 = ∆ABC

= .5*9*90 = 405

From b)

CS = .5*11*110 - 125 = ∆ ADE - fixed fee

= 605-125 = 480

In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 150 units at $7 on January 1, (2) 590 units at $8 on January 8, and (3) 890 units at $10 on January 29. M7-12 Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Ending Inventory under Periodic LIFO [LO 7-3] Assume 1,110 units are on hand at the end of the month, calculate the cost of goods available for sale, ending inventory, and cost of goods sold under the LIFO. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places.

Answers

Answer:

Goods available for sale = $14,670

Ending inventory = $9,470

Cost of goods sold = $5,200

Explanation:

As per the data given in the question,

Total units purchased = 150 + 590 + 890 = 1,630

Ending inventory = 1,110

Sales units = 1,630 units - 1,110 units = 520 units

Goods available for sale = 150 × $7 + 590 × $8 + 890 × $10

= $14,670

Ending inventory = 150 × $7 + 590 × $8 + 370 × $10

= $9,470

Cost of goods sold = $14,670 - $9,470

= $5,200

On December 31, 2017, Berclair Inc. had 560 million shares of common stock and 5 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 168 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was $1,050 million.
Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2017, for 30 million common shares at an exercise price of $56 per share. During 2018, the market price of the common shares averaged $70 per share.
Required:
a. Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2018.

Answers

Answer:

Basic Earnings Per Share  = $1,44

Diluted Earnings Per Share = $1,38

Explanation:

Basic Earnings Per Share = Earnings Attributable to Holders of Common Stock / Weighted Average Number of Common Shares

Calculation of Earnings Attributable to Holders of Common Stock

Net income for the year ended December 31, 2018,  $1,050,000,000

Less cumulative preferred stock dividend                      ($45,000,000)

Earnings Attributable to Holders of Common Stock    $1,005,000,000

Calculation of Weighted Average Number of Common Shares

1 January Outstanding Common Shares                        560,000,000

March 1 - Purchases (10/12×168,000,000)                       140,000,000

October 1 - Sold (3/12×4,000,0000)                                    (1,000,000)

Weighted Average Number of Common Shares            699,000,000

Basic Earnings Per Share = $1,005,000,000/699,000,000

                                            = $1,44

Diluted Earnings Per Share = Adjusted Earnings Attributable to Holders of Common Stock / Adjusted Weighted Average Number of Common Shares

Calculation of Adjusted Weighted Average Number of Common Shares

Weighted Average Number of Common Shares (Basic)            699,000,000

Incentive Stock Options                                                                  30,000,000

Adjusted Weighted Average Number of Common Shares        729,000,000

Diluted Earnings Per Share = $1,005,000,000/ 729,000,000

                                               = $1,38

A peer-review board for alternative dispute resolution usually consists of: A. an equal number of employee representatives and management appointees B. managers above the level of the supervisor whose decision is being appealed. C. employees at the same level as the appealing employee. D. managers, subordinates, and a number of unbiased third-party participants who do not work for the employer.

Answers

Answer:

The answer is option A) A peer-review board for alternative dispute resolution usually consists of: an equal number of employee representatives and management appointees

Explanation:

Alternative dispute resolution is an affordable, less time consuming and less formal way of settling workplace disputes. To achieve this feat, a peer review board is constituted.

A peer review board usually consists of employers and management appointees and it could be a voluntary decision on their art to participate.

The pool of individuals nominated to be part of  the peer review board is considered objective and unbiased in their assessment of the issue to be resolved. They are also deemed skillful in the art of listening and arbitration.

Under the allowance method of accounting for uncollectible accounts, a. the cash realizable value of accounts receivable is greater before an account is written off than after it is written off. b. Bad Debts Expense is debited when a specific account is written off as uncollectible. c. the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off. d. Allowance for Doubtful Accounts is closed each year to Income Summary.

Answers

Answer:

c. the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off.

Explanation:

Under the allowance method of accounting for uncollectible accounts, the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off and bad debt expenses is debited.

This means that in the period in which an account previously written off is collected, the income is unaffected.

Also, under the allowance method of accounting, total assets will remain unchanged when a particular account is being written off.

The following data pertain to last year's operations at Tredder Corporation, a company that produces a single product: Units in beginning inventory 0 Units produced 20,000 Units sold 19,000 Selling price per unit $100.00 Variable costs per unit: Direct materials $12.00 Direct labor $25.00 Variable manufacturing overhead $3.00 Variable selling and administrative $2.00 Fixed expenses per year: Fixed manufacturing overhead $500,000 Fixed selling and administrative $600,000 What was the absorption costing net operating income last year?

Answers

Answer:

Net operating income= 27,000

Explanation:

Giving the following information:

Units produced 20,000

Units sold 19,000

Selling price per unit $100.00

Variable costs per unit:

Direct materials $12.00

Direct labor $25.00

Variable manufacturing overhead $3.00

Variable selling and administrative $2.00

Fixed expenses per year:

Fixed manufacturing overhead $500,000

Fixed selling and administrative $600,000

Under the absorption costing method, the fixed manufacturing overhead gets included in the unitary production cost. First, we need to calculate the unitary product cost.

Unitary product cost= (12 + 25 + 3) + (500,000/20,000)

Unitary product cost= 40 + 25= $65

Income statement:

Sales= 100*19,000= 1,900,000

COGS= 65*19,000= (1,235,000)

Gross profit= 665,000

Variable selling and administrative= (2*19,000)=(38,000)

Fixed selling and administrative= (600,000)

Net operating income= 27,000

An outside supplier has offered to provide the annual requirement of 7,200 of the parts for only $13 each. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:

Answers

Super corporation produces a part in the manufactures of its product. The unit cost is $21 computed as follows:

An outside supplier has offered to provide the annual requirement of 7,200 of the parts for only $13 each. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:

                                                                        $

Direct material                                                 6

Direct labour                                                    8

Variable manufacturing overhead                2

Fixed manufacturing overhead                     5

Total cost                                                        21

Answer:

Total financial advantage of buying from the supplier $43,200

Explanation:

Unit relevant variable  cost of making= 6+8 +2 = 16

                                                                                    $

Variable cost of making (   16×    7200) =             115,200      

Variable of buying           (13   ×7200)                    93,600

Savings in variable cost                                         21,600

Savings in fixed cost  (60%*72300 × 5)                 21600

Total savings from buying                                   43,200

 Total financial advantage of buying from the supplier $43,200

Kevin, Rajiv, and Yakov are hunters who live next to a recreational wildlife game area that is open to hunting; in other words, anyone is free to use the recreational wildlife game area for hunting. Assume that these men are the only three hunters who hunt in this recreational wildlife game area and that the recreational wildlife game area is large enough for all three hunters to hunt intensively at the same time.

Each year, the hunters choose independently how often to hunt; specifically, they choose whether to hunt intensively (that is, to set several traps and hunt long hours, which hurts the sustainability of the recreational wildlife game area if enough people do it) or to hunt nonintensively (which does not hurt the sustainability of the recreational wildlife game area). None of them has the ability to control how much the others hunt, and each hunter cares only about his own profitability and not the state of the recreational wildlife game area.

Assume that as long as no more than one hunter hunts intensively, there are enough animals to restock the recreational wildlife game area. However, if two or more hunt intensively, the recreational wildlife game area will become useless in the future. Of course, hunting intensively earns a hunter more money and greater profit because he can sell more animals.

The recreational wildlife game area is an example of _____________ because the animals in the recreational wildlife game area are ________ and ___________.

Answers

Answer: Common resource ,

              Non excludable and Rival in consumption

Explanation:

Common resource is defined as the resource that is usually available to people in open form and people tend to overuse it.This creates shortage of resource and brings scarcity.They are considered rival in nature.Any good is considered rival if consumption of good by one person reduces consumption of that good for another person. It is regarded as subtractable.Non-excludable good is defined as the good that does not stop other people or group of people to consume or use it.There is no certain restriction of using particular good.

According to the questions scenario, recreational wildlife game area is common resource because Yakov, Rajiv and Kevin are using that area for hunting openly .Other hunters can also use the area for hunting as it is available commonly for everyone as per their needs.

Animal of wildlife game area can be considered rival and non-excludable in consumption because they are openly available for hunter and there is no restriction on their usage (hunting) particularly.Thus, if a hunter hunts more number of animals using intensive hunting mechanism, it will reduce number of animals for other hunters .

Tom, Dan and Phil work indifferent teams at Springfield Automotive. Tom's team ensures that all the raw materials, machinery, tools and other production equipment are available for the employees around the clock. Any procurement needs have to be addressed to Tom, who also takes part in high-level decisions regarding the number of units to produced, exported and so on. Dan works as part of a team of eight members who concentrate the day-to-day productions; they also ensure that the quality checks are done and inspect each other's work. Phil is the operations manager, who works for 5 hours in the production department and then spends the rest of his time assisting management as an internal consultant on manufacturing issues. His input is crucial in improving the production process. Dan's contribution is toward the __________.

Answers

Answer: Work team

Explanation: Dan's contribution is towards the work team whereas Phil works in the parallel team while Tom is part of the management team. a work team which Dan is a member of is defined as a group of workers or employees with different set of skills that work together on a given task such as the day-to-day productions in a business, quality control and inspection, etc. Work teams are most efficient or useful where there is a frequent change in job content and employees with limited skills and a specific set of duties are unable to cope (work teams thus provide expert advice that will increase the ability of employees to participate in planning, problem-solving, and decision-making that are needed to complete a set of work and to better serve customers).

Movers Company manufactures sneakers. Production of its new sneakers for the coming three months is budgeted as follows: August 28,000 September 50,000 October 33,000 Each sneaker requires 2.5 hours of direct labor time. Direct labor wages average $16 per hour. Monthly variable overhead averages $10 per direct labor hour plus fixed overhead of $4,500. What is the total overhead budgeted for the month of September

Answers

Answer:

Budgeted overhead cost =$1,250,000

Explanation:

Budgeted overhead for the month of September = Total labour hours × overhead rate per hour

Total labor hours =  standard hours  × budgeted production units

=2.5 hours × 40,000= 125,000

Budgeted overhead cost Total = $10× 125,000 =$1250000

Budgeted overhead cost =$1,250,000

Answer:

$1,254,500

Explanation:

Solution

Recall that:

Production of sneakers for three months budgets were :

August= 28000

September = 50,000

October = 33,000

Each sneakers requires labor time = 2.5 hours

Labor wages average = $16.

Now,

The total overhead budgeted for the month of September is calculated as follows:

The total overhead budgeted for the month of September = Variable overhead + Fixed overhead

= (50,000 units * 2.5 direct labor hours per unit * $10 per direct labor hour) + $4,500

= $1,254,500

Therefore, the total overhead budgeted for the month of September is $1,254,500

Assume there is a decrease in the market demand for a good sold by price-taking firms that are initially producing the profit-maximizing level of output. How will the market adjust over time? Firms will exit the market, causing price to fall until positive profits are eliminated. Firms will exit the market, causing price to rise until losses are eliminated. Firms will enter the market, causing price to rise until losses are eliminated. Firms will enter the market, causing price to fall until positive profits are eliminated.

Answers

Answer: Firms will exit the market, causing price to rise until losses are eliminated

Explanation:

When there is a decrease in demand in a Perfectly Competitive Market, firms will have to start producing at a lower Quantity to manage their Marginal cost. This leads to Economic losses on their part in the short run.

In the long run however, should the situation remain the same, the new price would be less than their Average Cost which would deepen Economic losses. Firms would respond by exiting the market in the long run.

As the firms exit, the supply curve shifts left as supply drops. This drop in supply leads to a price rise. The exits will continue until enough firms leave that the market's remaining firms will stop suffering economic losses.

Alex Company prepares its statement of cash flows using the direct method for operating activities. For the year ended December 31, 2018, Alex Company reports the following activity: Sales on account $2,100,000 Cash sales 1,110,000 Decrease in accounts receivable 915,000 Increase in accounts payable 108,000 Increase in inventory 72,000 Cost of good sold 1,575,000 What is the amount of cash collections from customers reported by Alex Company for the year ended December 31, 2018

Answers

Answer:

The amount of cash collections from customers reported by Alex company for the year ended December 31, 2018 is $4,125,000.

Explanation:

Cash collection refers to the collection of cash from from an individual or a business whom invoice has been issued to. Any invoice unpaid are noted as being outstanding.

Cash collection fomular is therefore;

Cash collection = Sales on account + Cash sales + Decrease in accounts receivable

=$2,100,000 +$1,110,000 + $915,000

=$4,125,000

The conversion rate is restated for all stock dividends and splits. Coffee had the following stock transactions in 2005 and 2006:

1/1/2005 - Sold 30,000 shares of common stock at $20 per share.
1/1/2005 - Sold 10,000 shares of preferred stock at $100 per share.
4/1/2005 - Issued at 50 percent stock dividend when the market price is $26 per share.
9/1/2005 - Purchased 4,000 treasury shares at $30 per share.
10/1/2005 - Sold 1,000 of the treasury shares at $32 per share.
11/1/2005 - Sold 2,000 of the treasury shares at $25 per share.
12/1/2005 - Issued a 2-1 for stock split.
12/20/2005 - Declared the required dividend to preferred stock holders and a $.25 per share dividend to common stockholders. Dividends are payable on 12/31/2005.

Prepare journal entries to record all of the above business events

Answers

Answer and Explanation:

The journal entries are shown below:

On Jan 1

Cash (30,000 Shares × $20)   $600,000

    To  Common Stock (30,000 Shares × $2)    $60,000

    To Paid In Capital in Excess of Par - Common Stock $540,000

(Being the sale of the common stock is recorded)

On Jan 1

Cash (10,000 Shares × $100)     $600,000

         To Preferred Stock (10,000 Shares × $100)  $1,000,000

(Being the sale of the preferred stock is recorded)

On Jan 4

Retained Earnings (30,000 × 50% × $26)   $390,000

         To Common Stock (15,000 shares × $2)   $30,000

         To Paid In Capital in Excess of Par - Common Stock $360,000

(Being the issued of the stock dividend is recorded)

On Jan 9

Treasury Stock (4,000 Shares × $30)   $120,000

        To Cash   $120,000

(Being the purchase of treasury stock is recorded)

On Jan 10

Cash (1,000 Shares × $32)   $32,000

   To  Treasury Stock (1,000 Shares × $30)  $30,000

     To Paid in Capital from Treasury Stock $2,000

(Being the sale of the treasury stock is recorded)

On Jan 11

Cash (2,000 Shares × $25)     $50,000

Paid in Capital - Treasury Stock   $2,000

Retained Earnings $8,000

           To Treasury Stock (2,000 Shares × $30)    $60,000

(Being the sale of the treasury stock is recorded)

On Jan 12

Since the shares are issued for  2 to 1 i.e the number of shares is rises from 29,000 shares to 58,000 shares due to which the par value is decreased from $2 to $1 per share. So the new 29,000 shares were to be distributed

On Dec 20

Retained Earnings  $74,500

     To Dividend Payable - Preferred Stock (10,000 Shares × 100 × 6%)    $60,000

     To Dividend Payable - Common Stock (58,000 Shares × $0.25)   $14,500

(Being the dividend is declared)

Which of the following is true of a stock dividend? Multiple Choice It is a liability on the balance sheet. The decision to declare a stock dividend resides with the shareholders. Transfers a portion of equity from retained earnings to a cash reserve account. Does not affect total equity, but transfer amounts between the components of equity. Reduces a corporation's assets and stockholders' equity.

Answers

Answer:

Yes it is true that a stock dividend does not affect total equity.

Explanation:

A stock dividend is a non cash payment given to shareholders. Instead of cash, additional shares that is equivalent to the earnings that accrue is given to shareholders.

While this may increase the number of shares held, it does not affect total equity.

One of the benefits of stock dividends tax exemption and retained equity which translates to additional investment.

However, the additional; shares created could dilute the share prices.

Donovan company incurred the following costs while producing 2000 units: Direct Materials, $15 per unit; direct labor, $5 per unit; variable manufacturing overhead, $12 per unit; variable selling and administrative costs, $14, per unit; total fixed overhead costs, $20,000; total fixed selling and administrative costs, $10,000. There are no beginning inventories.

What is the unit productive cost using absorption costing?

a. $32 per unit

b. $42 per unit

c. $52 per unit

d. $61 per unit

What is the unit product cost using variable costing?

a. $32 per unit

b. $44 per unit

c. $46 per unit

d. $61 per unit

What is the operating income using absorption costing if 1800 units are sold for $100 each?

a. $104,400

b. $96,000

c. $79,200

d. $69,200

What is the operating income using variable costing if 1900 units are sold for $100 each?

a. $57,400

b. $72,600

c. $80,200

d. $102,600

*Formulas or explanations with each part of the problem.

Answers

Answer:

1. b. $42 per unit

2. a. $32 per unit

3. d. $69,200

4. b $72,600

Explanation:

1 and 2 The computation of unit productive cost using absorption costing and unit product cost using variable costing is shown below:-

                                     Absorption        Variable

Direct material                   $15                   $15

Direct labor                         $5                    $5

Variable manufacturing

overhead                             $12                  $12

Fixed manufacturing

overhead                              $10        

($20,000 ÷ 2000)  

Product cost                        $42                $32

Therefore for computing the product cost of absorption and variable cost we simply added direct material, direct labor, variable manufacturing overhead and fixed overhead rate

3. The computation of the unit product cost using variable costing is shown below:-

Sales                                          $180,000

Cost of goods manufactured   ($756,00)

(1800 × $42)

Difference                                   $104,400

Variable and selling

administrative                             ($25,200)

(1800 × $14)

Gross profit                                  $79,200

Fixed selling and administrative

expenses                                     ($10,000)

Net operating income                $69,200

So, for computing the net operating income we simply deduct the Fixed selling and administrative expenses from gross profit.

4. The computation of operating income using variable costing is shown below:-

Sales                                               $190,000

(1,900 × $100)

Variable cost of goods

manufactured                                   $60,800

(1,900 × $32)

Gross contribution margin                $129,200

Variable and selling administrative   ($26,600)

(1900 × $14)

Net contribution margin                     $102,600

Fixed cost                                           ($30,000)

Operating income                              $72,600

Therefore for computing the operating income using variable costing we simply deduct the fixed cost from net contribution margin.

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