Answer:
Swifty Company
1. Sum-of-the-years'-digits method:
2020 2021
Equipment $6,120,000 $6,120,000
Less: Accumulated Depreciation 977,500 2,541,500
Year-End Book Value $5,143,500 $3,578,500
Depreciation Expense for the Year 977,500 $1,564,000
2. Double-declining balance method:
2020 2021
Equipment $6,120,000 $6,120,000
Less: Accumulated Depreciation 1,224,000 3,182,400
Year-End Book Value $4,896,000 $2,937,600
Depreciation Expense for the Year 1,224,000 $1,958,400
Straight-line Method:
3. The amount of depreciation expense for the 2022 income statement is:
= $2,170,250.
4. In 2022, the depreciation base of this asset is:
= $4,020,500
Explanation:
a) Data and Calculations:
July 1, 2020: Cost of snowmaking equipment = $6,120,000
Estimated salvage value of the equipment = 255,000
Depreciable amount of the equipment = $5,865,000
Estimated useful life of the equipment = 5 years
Annual depreciation expense = $1,173,000 ($5,865,000/5)
Sum-of-the-Years'-Digits Method =15 (5+4+3+2+1)
Calculation of depreciation expense:
2020 = $977,500 (5/15 * $5,865,000)/2
2021 = $1,564,000 (4/15 * $5,865,000)
2020 2021
Equipment $6,120,000 $6,120,000
Less: Accumulated Depreciation 977,500 2,541,500
Year-End Book Value $5,143,500 $3,578,500
Depreciation Expense for the Year 977,500 $1,564,000
Double-Declining Balance Method (100/5 * 2) = 40%
Calculation of depreciation expense:
2020 = $1,224,000 (40% * $6,120,000)/2
2021 = $1,958,400 (40% * $4,896,000)
2020 2021
Equipment $6,120,000 $6,120,000
Less: Accumulated Depreciation 1,224,000 3,182,400
Year-End Book Value $4,896,000 $2,937,600
Depreciation Expense for the Year 1,224,000 $1,958,400
Straight-line method:
Annual depreciation expense = $1,173,000
2020: Depreciation expense = $586,500
2021: Depreciation expense = $1,173,000
2022: Depreciable amount = $4,340,500 ($4,360,500 - $20,000)
Depreciation expense = $2,170,250 ($4,340,500/2)
2020 2021 2022
Equipment $6,120,000 $6,120,000 $6,120,000
Less: Accumulated Depreciation 586,500 1,759,500 3,929,750
Year-End Book Value $5,533,500 $4,360,500 $2,190,250
Depreciation Expense for the Year 586,500 1,173,000 2,170,250
Straight-line method:
Annual depreciation expense = $1,173,000
2020: Depreciation expense = $586,500
2021:
Depreciation expense = $1,173,000
Accumulated depreciation = $1,759,500 ($586,500 + $1,173,000)
Year-End Book Value $4,360,500 ($6,120,000 - $1,759,500)
2022 Estimated Salvage Value = $340,000
2022: Depreciation basis = $4,020,500 ($4,360,500 - $340,000)
Depreciation expense = $2,010,250 ($4,020,500/2)
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $12,750 cash and $54,825 of photography equipment in the company in exchange for common stock. 2 The company paid $3,500 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,423 cash. 20 The company received $2,050 cash in photography fees earned. 31 The company paid $868 cash for August utilities. Prepare general journal entries for the above transactions.
Answer:
Aug 1
Dr Cash $12,750
Dr Photography equipment $54,825
Cr Common stock $67,575
Aug 2
Dr Prepaid insurance $3,500
Cr Cash $3,500
Aug 5
Dr Office supplies $2,423
Cr Cash $2,423
Aug 20
Dr Cash $2,050
Cr Photography fees earned $2,050
Aug 31
Dr Utilities Expense $868
Cr Cash $868
Explanation:
Preparation of general journal entries for the above transactions
Aug 1
Dr Cash $12,750
Dr Photography equipment $54,825
Cr Common stock $67,575
($12,750+$54,825)
Aug 2
Dr Prepaid insurance $3,500
Cr Cash $3,500
Aug 5
Dr Office supplies $2,423
Cr Cash $2,423
Aug 20
Dr Cash $2,050
Cr Photography fees earned $2,050
Aug 31
Dr Utilities Expense $868
Cr Cash $868
Springfield Bank holds $280 million in total deposits and $40.7 million in total reserves. With a required reserve ratio of 11.5 percent, how much in excess reserves is Springfield Bank holding?
a) $239.3 million
b) $247.8 million
c) $36 million
d) $32.2 million
e) $8.5 million
Answer:
e) $8.5 million
Explanation:
The computation of the excess reserve is shown below:
We know that
Excess reserve = total reserve - required reserve
where
Required reserve is
= Total deposits × required reserve ratio
= $280 × 11.5%
= $32.20
So, the excess reserve is
= $40.7 - $32.20
= $8.5 million
what is the major source of competition for motor carrier?
Answer: The major source of competition for motor carrier is intermodal in nature.
The major source competition for motor carriers is railroad. This is because rail system is quicker than motor carriers and has been used widely. Railroads do not cover all geographical zones but they have been a trend in several regions.
Explanation:
Explain how mixed costs are related to both fixed and variable costs. A. Mixed costs have a fixed portion that is a cost per unit of cost driver activity. Mixed costs also have a variable portion that is usually a cost per time period. B. Mixed costs are the sum of the fixed and variable costs that are related to equipment costs. These mixed costs are a form of committed costs during the production phase. C. A mixed cost is the sum of fixed costs and the portion of variable costs that are related to salaries and wages. These mixed costs are discretionary costs that easily fluctuate and must therefore be kept separate during a production phase. D. A mixed cost has a fixed portion that is usually a cost per time period. A mixed cost also has a variable portion that is a cost per unit of cost driver activity.
Answer:
D. A mixed cost has a fixed portion that is usually a cost per time period. A mixed cost also has a variable portion that is a cost per unit of cost driver activity.
Explanation:
As we know that
The variable cost is the cost that can change when the level of production increase or decrease
The fixed cost is the cost that remains fixed whether the production level increased or not
ANd, the mixed cost includes some part of the variable cost and some part of the fixed cost
So as per the given options, the option D is correct as the mixed cost involved the fixed portion that could be cost per the time. And, it involved the variable portion i.e cost per unit with respect to the cost driver activity
Your firm is trying to recruit more women. During data analysis you discover that women are offended by some of your behavioral questions during job interviews. You determine that such questions reduce your firm’s attractiveness to women and strongly suggest dropping these gender-biased questions in order to achieve the objective of recruiting more women. This would be ______.
Answer: an insight
Explanation:
The above situation explained in the question depicts an insight. An insight refers to the interpretations of the finding from a research based on the research question.
Insights are downtimes referred to as the output of research. Insight is the understanding of a particular problem.
Ano ang dapat nating tandaan kapag nagbibigay ng pangunang lunas?
Consider the following game. Harry has four quarters. He can offer Sally from one to four of them. I
Answer:
i think Harry should be nice a gave Sally 2 of them.Then, they well have the same amount
Explanation:
Waterway Industries is planning to sell 800 buckets and produce 1080 buckets during March. Each bucket requires 200 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 200 grams and employees of the company are paid $15 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Waterway has 300 kilos of plastic in beginning inventory and wants to have 500 kilos in ending inventory. How much is the total amount of budgeted direct labor for March?
Answer:
See below
Explanation:
From the above,
One bucket requires;
200 grams of plastic and one half of direct labor
The plastic costs $10 per 200 grams and the employees are paid $15 per hour.
Therefore, one bucket costs (material and labor) :
= $10 + $15 × (1/2)hour = $17.5 per plus 1.10 × $7.50 = $25.75
For 1,080 buckets
$25.75 × 1,080 = $27,810
Therefore, the total amount of budgeted direct material for March is $27,810
You are to make monthly deposits of $1,721 into a retirement account that pays 8 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 5 years?
Answer:
FV= $126,585.60
Explanation:
Giving the following information:
Monthly deposit (A)= $1,721
Interest rate (i)= 0.08/12= 0.0067
Number of periods (n)= 12*5= 60 months
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {1,721*[(1.0067^60) - 1]} / 0.0067
FV= $126,585.60
Select the correct revenue recognition principle for each of the following. Clear All Recognize revenue over the passage of time. Recognize revenue when the customer takes possession of the product. Recognize revenue when cash is collected. Recognize revenue when service is performed.
Answer:
Recognize revenue when service is performed.
Explanation:
Revenue recognition principle is an accounting principle which states that revenue should only be recognized when it is earned(when service has been rendered or completed) and not when cash is being collected.
What the above means is that revenue can only be earned when services are completed or rendered and not necessarily when payment is made. The reason is that payment may not be made for several weeks even after service has been rendered hence the principle or concept is incorporated into the accrual basis of accounting.
The law of increasing opportunity costs Multiple Choice applies to land-intensive commodities but not to labor-intensive or capital-intensive commodities. results in straight-line production possibilities curves rather than curves that are bowed outward from the origin. may limit the extent to which a nation specializes in producing a particular product. refutes the principle of comparative advantage.
Answer:
may limit the extent to which a nation specializes in producing of a particular product.
Explanation:
Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.
For instance, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invested the same amount of resources in a salon business or any other business as the case may be.
The law of increasing opportunity costs can be defined as a principle in business which states that, if an organization or business firm continually raise (increase) its level of production, its opportunity cost also increases (rises).
Consequently, this may limit the extent to which a nation or country in any part of the world specializes in producing of a particular product so as to reduce or lower its opportunity cost.
Locked-In Real Estate (LIRE) is preparing for their Initial Public Equity Offering (IPO). With its holdings consisting of rent controlled apartments, and no plans for expanding, LIRE plans to payout all of its earnings as dividends. These dividends amount to $7.50 per share, forever. If the expected rate of return is 12%, what is the stock price of LIRE
Answer: $62.50
Explanation:
The stock price of Locked-In Real Estate (LIRE) will be calculated thus:
Stock price = D /ke - g
where,
D = Dividend paid per share = $7.50
Ke = expected rate of return on equity = 12% = 0.12
g is growth rate of dividend = 0
Stock price = $7.50/0.12
Stock price = $62.5
Therefore, the stock price is $62.50
calculate how much credit created by commercial bank when there is a deposit of 80000, reserve requirement is 8% and withdrawl is 35%?
Answer:
Amount of credit created by commercial bank = 47,840
Explanation:
Given:
Total deposit in bank = 80,000
Reserve requirement = 8%
Withdrawal = 35%
Find:
Amount of credit created by commercial bank
Computation:
Amount available for withdrawal = Total deposit in bank[1 - Reserve requirement]
Amount available for withdrawal = [80,000][1-8%]
Amount available for withdrawal = 73,600
Amount of withdrawal = Amount available for withdrawal[35%]
Amount of withdrawal = 73,600[35%]
Amount of withdrawal = 25,760
Amount of credit created by commercial bank = 73,600 - 25,760
Amount of credit created by commercial bank = 47,840
A portfolio is entirely invested into BBB stock, which is expected to return 16.4 percent, and ZI bonds, which are expected to return 8.6 percent. Stock BBB comprises 48 percent of the portfolio. What is the expected return on the portfolio
Answer:
the expected return on the portfolio is 12.34%
Explanation:
The computation of the expected return on the portfolio is shown below:
Expected Return is
= Investment in BBB × Return+ Investment in ZI × Return
= 16.4 × 48% + 8.6 ×52%
= 7.87% + 4.47%
= 12.34%
hence, the expected return on the portfolio is 12.34%
Suppose you are buying your first condo for $250,000, and you will make a $30,000 down payment. You will finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6% nominal interest rate, with the first payment due in one month. What will your monthly payments be
Answer:
The monthly payments will be
= $1,319.01.
Explanation:
a) Data and Calculations;
Cost of the first condo = $250,000
Down payment = $30,000
Principal loan amount = $220,000 ($250,000 - $30,000)
Period of monthly payments = 30 years or 360 months
Nominal interest rate = 6%
N (# of periods) 360
I/Y (Interest per year) 6
PV (Present Value) 220000
FV (Future Value) 0
Results
PMT = $1,319.01
Sum of all periodic payments $474,844.02
Total Interest $254,844.02
4. Know the market trends of products that are in demand not
only within the local market but also in the international market.
Answer:
oligopoly
Explanation:
it is unique the market is blocked not easy to enter
Working capital accounts include:Multiple Choicecurrent assets and current liabilities.current assets and all liabilities.all assets.all assets and liabilities.
Answer:
current assets and current liabilities
Explanation:
As we know that
The working capital shows the difference of the current assets and the current liabilities
It can be shown
Working capital = current assets - current liabilities
It is used for liquidity purpose whether the firm is able to pay off the short term obligations or not
Therefore the first option is correct
Approximately 395 years ago, the Dutch settler, Peter Schaghen, purchased Manhattan Island from the Lenape Indians for 60 guilders (about $35 USD) worth of various commodities. Assume the Lenape Indians sold the commodities and invested the $35 earning a 7.5% annualized compounded return. What would their investment be worth today (395 years later)
Answer:
the investment be worth today is $90 trillion
Explanation:
The computation of the investment be worth today is shown below:
Amount = $35 × (1 + 0.075 ÷ 1)^1.395
= $35 × 1075^1.395
= $90 trillion
Hence, the investment be worth today is $90 trillion
Basically we applied the above method to compute the same so that the correct amount could come
The situations presented here are independent of each other. For each situation, prepare the appropriate journal entry for the redemption of the bonds.
1. Ayayai Corp. redeemed $158,000 face value, 12% bonds on April 30, 2022, at 102. The carrying value of the bonds at the redemption date was $142,674. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded.
2. Kingbird, Inc. redeemed $179,000 face value, 14.0% bonds on June 30, 2022, at 95. The carrying value of the bonds at the redemption date was $193,320. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been made and recorded.
Answer:
1. April 30
Dr Bonds payable $158,000
Dr Loss on redemption of bonds payable $18,486
Cr Discount on bonds payable $15,326
Cr Cash $161,160
2. June 30
Dr Bonds payable $179,000
Dr Premium on bonds payable $14,320
Cr Gain on redemption of bonds payable $23,270
Cr Cash $170,050
Explanation:
1. Preparation of the appropriate journal entry for the redemption of the bonds.
April 30
Dr Bonds payable $158,000
Dr Loss on redemption of bonds payable $18,486
($161,160+$15,326-$158,000)
Cr Discount on bonds payable $15,326
($158,000-$142,674)
Cr Cash $161,160
($158,000*1.02)
(To record redemption of bonds)
2. Preparation of the appropriate journal entry for the redemption of the bonds.
June 30
Dr Bonds payable $179,000
Dr Premium on bonds payable $14,320
($193,320-$179,000)
Cr Gain on redemption of bonds payable $23,270
($179,000+$14,320-$170,050) .
Cr Cash $170,050
($179,000*.95)
(To record redemption of bonds)
Helen Ming receives a travel allowance of $120 each week from her company for time away from home. If this allowance is taxable and she has a 28 percent income tax rate, what amount will she have to pay in taxes for this employee benefit
Answer:
$1,747.2
Explanation:
Calculation to determine what amount will she have to pay in taxes for this employee benefit
First step is to determine the Annual travel allowance
Using this formula
Annual travel allowance=Weekly allowance × 52 weeks
Let plug in the formula
Annual travel allowance=$120 × 52 weeks
Annual travel allowance=$6,240
Now let determine the Annual tax
Using this formula
Annual tax=Annual travel allowance × Tax rate
Let plug in the formula
Annual tax=$6,240 × 0.28
Annual tax=$1,747.2
Therefore the amount that she will have to pay in taxes for this employee benefit is $1,747.2
During year 8, Clark Company manufactured equipment for its own use at a total cost of $2,400,000. The project required the entire year to complete and all costs were incurred uniformly throughout the year. At the beginning of the period, Clark was able to borrow $1,500,000 at 6% specifically for the purchase of materials and the manufacture of the equipment. The entire debt, with interest was repaid on December 31, year 8, replaced with a long-term loan. Throughout year 8, Clark Company had additional debt of $1,000,000 with a weighted average interest rate of 7%. If Clark Company capitalizes the maximum amount of interest allowable under GAAP, how much will Clark report as interest expense in year 8
Answer:
$88,000
Explanation:
Calculation to determine how much will Clark report as interest expense in year 8
First step is to calculate the total interest expense for the year
Total interest expense = ($1,500,000 x 6%) + ($1,000,000 x 7%)
Total interest expense = $90,000 + $70,000
Total interest expense=$160,000
Second step is to calculate the weighted average costs
Weighted average costs = $2,400,000 / 2
Weighted average costs= $1,200,000
Third step is to calculate the capitalize interests
Capitalize interests =$1,200,000 x 6%
Capitalize interests= $72,000
Now let calculate the interest expense in year 8 using this formula
Year 8 Interest expense=Total interests - Capitalized interests
Let plug in the formula
Year 8 Interest expense= $160,000 - $72,000
Year 8 Interest expense= $88,000
Therefore The amount that Clark will report as interest expense in year 8 is $88,000
Highly Suspect Corp. has current liabilities of $450,000, a quick ratio of .89, inventory turnover of 6.5, and a current ratio of 1.7. What is the cost of goods sold for the company
Answer:
See below
Explanation:
First , we will compute current ratio
Current ratio = Current asset / Current liabilities
1.25 = Current ratio / $415,000
Current asset = $415,000 × 1.25
Current assets = $518,759
Next is to calculate quick ratio
Quick ratio = Current asset - Inventory / Current liabilities
0.79 = $518,750 - Inventory / $415,000
0.79 × $415,000 = $518,750 - Inventory
$327,850 = $518,750 - Inventory
Inventory = $518,750 - $327,850
Inventory = $190,900
Inventory turnover = Cost of goods sold / Inventory
9.5 = Cost of goods sold / $190,900
Cost of goods sold = 9.5 × $190,900
Cost of goods sold = $1,813,550
Baby Day Care, a sole proprietorship, wants to pay as many of its obligations as reasonably possible, and be discharged of the rest. To accomplish this goal, the proprietorship should file a petition in bankruptcy under for relief through:_______
a. a liquidation.
b. a reorganization.
c. a repayment plan.
d. an adjustment plan.
Answer:
b. a reorganization.
Explanation:
Under the chapter 13, the bankruptcy should be filed and it mainly reorganization plan for the payment. It is to be done by splitting the non-secured debt across the various years also it permits the individual to retain the assets
So as per the given situation, in order to attain the goal, the proprietorship should file the petition in bankruptcy under for relief via a reorganization
The following is selected financial information for Osmond Dental Laboratories for 2021 and 2022: 2021 2022 Retained earnings, January 1 $ 53,000 ? Net income 40,000 45,000 Dividends 12,000 25,000 Common stock 78,000 ? Osmond issued 3,000 shares of additional common stock in 2022 for $22,000. There were no other stock transactions. Prepare a statement of stockholders' equity for the year ended December 31, 2022. (Amounts to be deducted should be indicated with minus sign.)
Answer:
Osmond Dental Laboratories
Statement of Stockholders' Equity:
2022
Common stock $90,000
Retained earnings, December 31 101,000
Stockholders' equity $191,000
Explanation:
a) Data and Calculations:
Osmond Dental Laboratories for 2021 and 2022:
2021 2022
Retained earnings, January 1 $ 53,000 ?
Net income 40,000 45,000
Dividends 12,000 25,000
Common stock 78,000 ?
Analysis:
Cash $22,000 Common stock $22,000
Retained earnings, January 1 $ 53,000 81,000
Net income 40,000 45,000
Dividends -12,000 -25,000
Retained earnings, December 31 $ 81,000 $101,000
Common stock on December 31 = $90,000 ($78,000 + $22,000)
Statement of Stockholders' Equity:
Osmond Dental Laboratories for 2021 and 2022:
2021 2022
Common stock $78,000 $90,000
Retained earnings, December 31 81,000 101,000
Stockholders' equity $159,000 $191,000
I need money help me!
Answer:
Leadership in restaurants calls for implementing systems that ensure the smooth running of the business. This means setting up systems that help with cash flow management, inventory tracking, staff management, training programs and others. That is not all.
Explanation:
Great knowledge of the restaurant business
Motivate your staff and recognize their achievement
Set Goals
Set training programs
Handle stress
Delegate wisely
Be approachable and trustworthy
Leaders in the restaurant industry are realizing that old vertical leadership styles don't bring the desired results. By generating resentment, dependence, passivity, feelings of inferiority or mistrust, they do not motivate people to give their best, to work with excellence and to be in a continuous learning process; nor do they encourage unity, collaboration, and synergy.
It is for this reason, a growing number of restaurant owners are beginning to practice service-oriented leadership, which I define as servant leadership.
Fact Pattern 28-2 Adam, a director of Beta Computer Company, learns that a Beta engineer has developed a new, significantly faster computer chip. Adam buys Beta stock and tells his friend Cathy, who also buys Beta stock. When the new chip is announced three weeks later, Adam and Cathy sell their stock for a big profit.Refer to Fact Pattern 28-2. Regarding Adam's profits on the purchase and sale of Beta stock, under Section l6(b) of the Securities Exchange Act of 1934 Beta may recapturea) 10 percent of Adam's profitsb) half of Adam's profitsc) all of Adam's profits.d) none of the above.
Answer:
C. All of Adam's profits
Explanation:
If Adam is found guilty of using insider information from the company Beta Computer to gain profits by buying and selling stock of the company. He can be sued by the other security holders and will be held liable to pay all of his profits made with that trade. under the Section 16{b} of the Securities Exchange Act of 1934.
The seaport town of New Monopoly has become extremely popular with shipping companies due to its superior location. The port has become so congested that ships must wait hours every day just to dock. The mayor of New Monopoly realizes that the congestion at the port costs the shipping companies and his town money. This is an example of marginal analysis. a private good. market failure. a recession.
Answer:
Market failure.
Explanation:
In this scenario, the port became so congested such that ships now have to wait hours queing every day just to dock. The mayor of New Monopoly realizes that the congestion at the port costs the shipping companies and his town money. This is an example of market failure.
A market failure can be defined as a situation in which the market fails to produce an efficient level of productivity or output that is required to meet demand.
This ultimately implies that, a market failure arises when there is inefficiency in the distribution or allocation of goods and services in a free market. Thus, the demand of the consumer of these goods and services are not being met with the level of supply (output) required i.e the forces of demand and supply are not efficient in producing the level of output required by the economy.
Some of the causes of market failure are imperfect information, monopoly, oligopoly, externalities etc.
Class: Finance - Money and Banking
Under what circumstances might you be willing to pay more than $1,000 for a coupon bond that matures in three years, has a coupon rate of 10 percent, and has a face value of $1,000?
Answer:
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- True or False: Professional shoplifters steal primarily for the excitement.
The valuation of short-term marketable securities on the balance sheet is likely to be for an amount that is approximately equal to the cost of these investments because:
Answer:
the high quality and close maturity date of the securities cause their market values to be relatively stable.
Explanation:
The short-term marketable securities are also known by the names like short term investments or by the name temporary investments or marketable securities. These are all financial securities or investments that can be converted into cash after a fixed period.
The valuation of these short term securities is the amount of money which is nearly equal to the cost of the investment done as the high quality as well as the close maturity of these securities makes the market values relatively stable.