Answer:
a. offer more direct support to the poor.
Explanation:
In 1910, the price of a Model T Ford was $950. By 1917, the average price for the same car was $360. In 1910, fewer than 19,000 Model T's were sold. In 1917, over 730,000 were sold. What conclusion can you draw from this information?: (A)The cost of living must have gone down between 1910 and 1917. (B)Henry Ford was making less money in 1917 than he was in 1910 (C)It cost the Ford Motor Company less to produce a Model T in 1917 than it did in 1910. (D)There is no relationship between the price of the Model T's and the number sold.
The conclusion that can be reached is that (C)It cost the Ford Motor Company less to produce a Model T in 1917 than it did in 1910.
The price of a good or service is usually directly proportional to its cost. This means that if something was costly to produce or to provide, the price that the company providing will charge will be high as well.
The reason for this is that the company needs to make a profit so they charge a higher price than the cost in order to make back the cost and some profit. This is called cost plus pricing.
In 1910, the Model T Ford cost $950 but in 1917 the same car cost $360. This means that the cost must have been less in 1917 than it was in 1910 which was why the Ford company was able to charge less for it.
The correct answer is therefore C.
For more information on cost plus pricing check https://brainly.com/question/23632044.
Answer:
option c is the correct answer
i think this helps u
what is diminishing return law???
Answer:
Numerous different factors are presumed constant by the law. An additional description is given below.
Explanation:
In psychology, a definition that unless certain input factor becomes continued to increase whereas some considerations (hardware as well as a conference room) are kept constant, the outcome per unit including its dependent variable will inevitably decrease.This law specifically states that such an increased amount of some kind of single manufacturer component would result in a decrease in gross profit efficiency.The law of diminishing return is that marginal return states that, at some point that adding an additional factor of the production results in smaller increases in the output.
Hope this helps!
In light of the facts that many organizations do not pay incentives and many employees discount or take for granted the value of benefits, base wages and salaries are often ____________________________ of the compensation system in the eyes of employees.
Answer:
In light of the facts that many organizations do not pay incentives and many employees discount or take for granted the value of benefits, base wages and salaries are often the focus of the compensation system in the eyes of employees.
Explanation:
The scenario talks about the base wages and salaries which is significant portion of their salary. If the company doesn't pay incentives then the employee thinks that it doesn't matter how motivated he works because he will be paid base salary or wage. Hence the motivation factor gets affected by the compensation factor and employee thinks the only focus of compensation is their base wage or salary.
Angie invested $250,000 she received from her grandmother today in a fund that is expected to earn 10% per annum. To what amount should the investment grow in five years if interest is compounded semi-annually
Answer:
After 5 years, the investment should grow to $407,223
Explanation:
the future value earned on a certain amount compounded semi-annually for a number of years is given by the formula:
[tex]FV = PV(1+ \frac{r}{n} )^{nt}\\Where:\\FV = Future\ value\ =\ ??\\PV = Present\ Value\ =\ $250,000\\r = Interest\ rate\ =\ 10\% =\ 0.1\\n = number\ of\ compounding\ per\ year\ = semiannually\ =\ 2\\t = number\ of\ years\ =\ 5[/tex]
[tex]FV = 250,000(1+ \frac{0.1}{2} )^{(2\times5)}\\FV\ = 250,000(1.05)^{10}\\FV\ = 250,000(1.62889)\\FV\ = \$407,223.65[/tex]
Therefore, after 5 years, the investment should grow to $407,223
What are four importance of a business plan
The ability of a multinational or global competitor to shift production from country to country to take advantage of exchange rate fluctuations, energy costs, wage rates, or changes in tariffs is an example of Multiple Choice cross-market subsidization. cross-market differences in cultural, demographic, and market conditions. an international strategic alliance. cross-border coordination. a profit sanctuary.
Answer: an international strategic alliance.
Explanation:
A strategic alliance is when two companies come together and cooperate in order to enjoy a mutual benefit.
Therefore, an international strategic alliance is the ability of a multinational or global competitor to shift production from country to country to take advantage of exchange rate fluctuations, energy costs, wage rates, or changes in tariffs.
Answer:
Correct Answer:
5. A profit sanctuary.
Explanation:
The aim of every business establishment is to maximize profits while at same time minimize to the barest minimum the cost associated in running the business. For example a car manufacturing company relocating from U.S to Canada due to favorable tariffs is in-order to protect and maximize their profits. This is an example market scenario movement called profit sanctuary
The owners of Spokes Bicycle Shop worry that cash flow this winter may be insufficient to meet the current operating expenses. While they anticipate a surplus of cash inflow as warm weather approaches, they need funds now to meet the company's immediate obligations. The owners can best resolve cash flow concerns by obtaining ________ financing.
Answer:
Short-term.
Explanation:
Short-term can be explained to be financing of business for short period of time from different sources. This financing are seen to be in the periods of a year and is said to be for smaller scale businesses.
It is easily necessary to secure additional funds to cover expenses, especially for those smaller businesses or to take the next step in growing the business. These short term loans are seen to be a lending option that work for many businesses that experience seasonal revenue fluctuations, and are easily taken back from the enterprise on a daily basis or monthly to cover up for the year.
Budget performance report for a cost center GHT Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. The budget for the Consumer Products Division for the month ended January 31 is as follows: Customer service salaries $546,840 Insurance and property taxes 114,660 Distribution salaries 872,340 Marketing salaries 1,028,370 Engineer salaries 836,850 Warehouse wages 586,110 Equipment depreciation 183,792 Total $4,168,962 During January, the costs incurred in the Consumer Products Division were as follows: Customer service salaries $602,350 Insurance and property taxes 110,240 Distribution salaries 861,200 Marketing salaries 1,085,230 Engineer salaries 820,008 Warehouse wages 562,632 Equipment depreciation 183,610 Total $4,225,270
1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January. If an amount box does not require an entry, leave it blank GHT Tech Inc. Budget Performance Report-Director, Consumer Products Division For the Month Ended January 31 Actual Budget Over Budget Under Budget Customer service salaries $ Insurance and property taxes Distribution salaries Marketing salaries Engineer salaries Warehouse wages Equipment depreciation Total
2. For which costs might the director be expected to request supplemental reports?
1. Customer service salaries and marketing salaries as they are significantly over budget.
2. Customer service salaries, warehouse wages and marketing salaries as they have significantly changed.
3. Engineering salaries and warehouse wages as they are significantly under budget.
Answer:
A.Actual $4,225,270
Budget $ 4,168,962
Over budget $112,370
Under budget $56,062
B. The director be expected to request supplemental request for Customer service salaries, warehouse wages and marketing salaries as they have significantly changed.
Explanation:
Preparation of the budget performance report for the director of the Consumer Products Division for the month of January.
GHT Tech Inc.
Budget Performance Report for Director, Consumer Products Division For the month ended January 31
Actual Budget Over budget Under budget
Customer Service Salaries $ 602,350 $ 546,840 $ 55,510 Over budget
Insurance and Property Taxes
110,240 114,660 $ 4,420 Under budget
Distribution Salaries 861,200 872,340 11,140 Under budget
Marketing Salaries 1,085,230 1,028,370 56,860 Over budget
Engineer Salaries 820,008 836,850 16,842 Under budget
Warehouse Wages 562,632 586,110 23,478 Under budget
Equipment Depreciation 183,610 183,792 182 Under budget
Totals
Actual $4,225,270
Budget $ 4,168,962
Over budget $112,370
Under budget $56,062
2. The director be expected to request supplemental reports for Customer service salaries, warehouse wages and marketing salaries as they have significantly changed.
Shaw Company engages Maya Company to produce a large machine, install the machine, and train their employees on the machine. The machine, installation, and training are distinct, and Maya determines that the contract includes three separate performance obligations. The machine, installation, and training typically cost $800,000, $100,000, and $100,000 respectively when each is provided in a separate contract. Shaw and Maya agree to a total contract price of $920,000. How much of the contract price should Maya allocate to the machine, installation, and training, respectively?
Answer:
Explanation:
Cost
Machine - 800,000
Installation - 100,000
Training - 100,000
Total cost - 1,000,000
Contract price - 920,000
Using ratio to allocate the prices , we have
a)Machine price = cost of machine / total cost * total contract price
800,000/1,000,000*920,000 = 736,000
b) Installation price =cost of installation / total cost * total contract price
100,000/1,000,000*920,000 = 92,000
c) Training price = cost of training / total cost * total contra t price
100/1,000,000 * 920,000 = 92,000
736,000+92,000+92,000= =920,000
The monetary liabilities of the Federal Reserve include currency in circulation and discount loans. government securities and reserves. currency in circulation and reserves. government securities and discount loans.
Answer:
currency in circulation and reserves.
Explanation:
The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.
Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.
The monetary liabilities of the Federal Reserve include currency in circulation and reserves. The currency in circulation includes all of the US paper currency (dollar bill) that are available in the country while reserves refers to the minimum deposits being held for the U.S Treasury and depository financial institutions by the Fed.
Additionally, the overall sum of the United States of America treasury monetary liabilities and the Federal Reserve System's monetary liabilities is generally referred to as the monetary base.
During January, the production department of a process operations system completed and transferred to finished goods a total of 90,000 units. At the end of January, 18,000 additional units were in process in the production department and were 50% complete with respect to labor. The beginning inventory included labor cost of $37,400 and the production department incurred direct labor cost of $296,700 during January. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.
Answer:
$3.37
Explanation:
Computation for the direct labor cost per equivalent unit for the department using the weighted-average method.
First step is to calculate the Equivalent units
EUP and cost per EUP DL
Completed and transferred 90,000
(90,000 * 100%)
Ending Work in Process
Direct labor 9,000
( 18,000 * 50% )
Equivalent units 99,000
(99,000+9000)
Second step is calculate the total cost
Costs of beginning inventory $37,400
Costs incurred this period 296,700
Total costs $334,100
Now let determine the Cost per equivalent unit
Using this formula
Cost per equivalent unit=Total costs/Equivalent units
Cost per equivalent unit $334,100/99,000
Cost per equivalent unit=$3.37
Therefore the direct labor cost per equivalent unit for the department using the weighted-average method is $3.37
If you buy a burger and fries at your favorite fast food restaurant, Group of answer choices then neither GDP nor consumption will be affected because you would have eaten at home had you not bought the meal at the restaurant. then GDP will be higher, but consumption spending will be unchanged. then GDP will be unchanged, but consumption spending will be higher. then both GDP and consumption spending will be higher.
Answer:
d. then both GDP and consumption spending will be higher
Explanation:
In case when the consumer purchased a burger and the fries to the favorite of his fast-food restaurant than it leads to an increase in the spending of the consumer and the Gross domestic product
As if the consumer spends his money so automatically his consumer spending risen also leads to the increase in gross domestic product.
Therefore the last option is correct
The following sequence shows four operations for a computer chip assembly process and the effective capacity of each. Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour Step 4: 550 chips/hour Suppose the utilization is 70 percent of effective capacity. What is the actual output of the process?
Answer:
The actual output of the process is 140 per hour
Explanation:
The Bottleneck step is the one which assemble minimum number of chips per hour . Step 3 produces minimum number of chips (200 chips per hour). Therefore step 3 is the bottleneck step.
Since the steps are interlinked in sequence, the capacity of the process will be determined by the capacity of the bottleneck process. Therefore, effective capacity of the process = 200 chips per hour
Since utilization is 70% of effective capacity , the actual output of the process = Utilization x Effective Capacity
= 0.7 x 200
= 140 per hour
Thus, the actual output of the process is 140 per hour
Correct Inc. is a publicly traded firm with 100 million diluted shares outstanding trading at $37.50 per share. The company has $1 billion of debt outstanding with a cost of debt at 6.5% at a marginal tax rate of 40%. The company has $100 million of cash on its balance sheet. What is the enterprise value of Correct Inc.
Answer:
The enterprise value of Correct Inc is $4,650 M
Explanation:
In this question, we are interested in calculating the enterprise value of Correct Inc
To do this, we use the mathematical formula below;
Enterprise Value = market value capital and debts - cash and investments
Enterprise Value = 100m shares * $37.50 per share + $1000m debts - $100m
= $3750 m + $1000 m - $100 m
= $4650 m
ollowing are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $5,250 cash and $22,575 of photography equipment in the company in exchange for common stock. 2 The company paid $2,300 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $998 cash. 20 The company received $3,000 cash in photography fees earned. 31 The company paid $866 cash for August utilities. Prepare general journal entries for the above transactions.
Answer and Explanation:
The Journal entries are shown below:-
On Aug 1
Cash Dr, $5,250
Photography equipment Dr, 22,575
To Common stock 27,825
(Being the exchange of common stock is recorded)
On Aug 2
Prepaid insurance Dr, $2,300
To Cash $2,300
(Being cash paid is recorded)
On Aug 5
Office supplies Dr, $998
To Cash $998
(Being cash paid is recorded)
Aug 20
Cash Dr, $3,000
To Photography fees earned $3,000
(Being cash received is recorded)
On Aug 31
Utilities expense Dr, $886
To Cash $886
(Being cash paid is recorded)
Bake Treats is a confectionery that makes cakes for special occasions and delivers them. They use gourmet ingredients while baking and deliver customized treats. In fact, they only start baking once they receive an official request from a customer. It is evident that Bake Treats has adopted a(n) _____ .
Answer: make-to-order operation
Explanation:
From the question, we are informed that Bake Treats is a confectionery that makes cakes for special occasions and delivers them and that they use gourmet ingredients while baking and deliver customized treats.
We are further told that they only start baking once they receive an official request from a customer. This shows that they are using the make-to-order operation.
Let $S$ be the set of complex numbers of the form $a + bi,$ where $a$ and $b$ are integers. We say that $z \in S$ is a unit if there exists a $w \in S$ such that $zw = 1.$ Find the number of units in $S.$
Answer:
Number of units possible in S are 4.
Explanation:
Given S is a set of complex number of the form [tex]a+bi[/tex] where a and b are integers.
[tex]z\in S[/tex] is a unit if [tex]w\in z[/tex] exists such that [tex]zw=1[/tex].
To find:
Number of units possible = ?
Solution:
Given that:
[tex]zw = 1[/tex]
Taking modulus both sides:
[tex]|zw| = |1|[/tex]
Using the property that modulus of product of two complex numbers is equal to their individual modulus multiplied.
i.e.
[tex]|z_1z_2|=|z_1|.|z_2|[/tex]
So,
[tex]|zw| = |1|\\\Rightarrow |zw| =|z|.|w| =1\\\Rightarrow |z|=\dfrac{1}{|w|}[/tex]......... (1)
Let [tex]z=a+bi[/tex]
Then modulus of z is [tex]|z| = \sqrt{a^2+b^2}[/tex]
Given that a and b are integers, so the equation (1) can be true only when [tex]|z| = |w| =1[/tex] (Reciprocal of 1 is 1). Modulus can be equal only when one of the following is satisfied:
(a = 1, b = 0) , (a = -1, b = 0), (a = 0, b = 1) OR (a = 0, b = -1)
So, the possible complex numbers can be:
[tex]1.\ 1 + 0i = 1\\2.\ -1 + 0i = -1\\3.\ 0+ 1i = i\\4.\ 0 -1i = -i[/tex]
Hence, number of units possible in S are 4.
Suppose that sharply lower coffee prices lead to a decrease in the demand for tea. Tea price decreases, and the tea producers experience short-run economic losses. If the tea industry is a price-taker market, after sufficient time is allowed for the market to adjust fully to the decrease in the demand for tea, one would expect the tea industry's output to
Answer:
C)decline and economic losses to disappear.
Explanation:
here are the options to this question :
A)increase and economic losses to persist. B)decline and economic losses to persist. C)decline and economic losses to disappear. D)increase and economic losses to disappear
Coffee and tea are substitute goods. As a result, of the fall in price of coffee, the demand for tea would decrease. The decrease in price of tea would lead to an inward shift of the demand curve, assuming supply remains unchanged in the short run, equilibrium quantity would fall and equilibrium price would fall. this leads to firms in the tea industry experiencing economic losses.
In the long run, firms would exit the tea industry, output would reduce and economic losses would disappear
A company supervisor asks for volunteers from the first shift to help assemble a new binding machine that must be on-line within the next 24 hours. Grady lifts his chin and his shoulders, nods, and says, "I can do it." In the social cognitive perspective of Albert Bandura, Grady has appraised a desired outcome through self-evaluated
A. competencies.
B. emotions.
C. strategies.
D. expectancies.
Answer:
The correct answer is the option D: Expectancies.
Explanation:
To begin with, in this situation where the employee name as Grady has appraised a desired outcome through self-evaluation is because of the expectancies that the employee has over himself regarding the job that is being asked from his superiors and that because he knows that completing the volenteered task without help will show to his employer that he has great courage and force of will to do the tasks that are not even obligated. So that will help understand why Grady decides to do it because of the expectancies he has over the situation.
Answer:
A. competencies.
Explanation:
Competencies are self-evaluations that we bring to a situation. When we think we can do something, we’re more likely to try it than when we don’t think we’ll succeed. Competencies in math, tennis, socializing, or any other field come from experiences of prior success that act as reinforcers.
Swifty Corporation purchased a machine for $66000 on July 1, 2020. The company intends to depreciate it over 8 years using the double-declining balance method. Salvage value is $5100. Depreciation for 2020 to the closest dollar is
Answer:
Depreciation expense= $7,612.5
Explanation:
Giving the following information:
Purchase price= $66,000
Salvage value= $5,100
Useful life= 8 years
First, we need to determine the depreciation expense for the whole year. We will use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= 2*[(66,000 - 5,100) / 8]
Annual depreciation= $15,225
For 2020:
Depreciation expense= (15,225/12)*6= $7,612.5
Bob operates Bob's Pizza, a small pizzeria that sells about 50 pizzas a day. Bob's daily total fixed costs are $100, and his daily total variable costs are $600. If for some reason Bob's fixed cost increased to $150, then his: Select one:
Available options are:
A. All of the choices are correct.
B. Average fixed costs would increase.
C. Marginal costs would increase.
D. Average variable costs would increase
Answer:
Option B. Average fixed costs would increase.
Explanation:
As the variable cost is the same which means that the marginal cost (All variable costs) would neither increase nor the average variable cost (Average variable cost due to fluctuating variable cost) would increase. Hence both Option C and D are incorrect.
Option B is correct because:
Average Fixed cost = (Initial Value + Value Now) / 2
Average Fixed cost = ($100 + $150) / 2 = $125
This means that the average cost has been increased.
Muy Bueno Bakery Company sells three different products. Currently they are not able to meet all of their customers' demand. Using the following information, determine the most profitable product. Cake Pie Cookies Contribution margin $18 $11 $3 Production hours 3 1 .30 a.Cake b.Cookies c.Pie d.Cookies and Pie are the same
Answer:
c. Pie
Explanation:
In order to determine which product is the most profitable, we must calculate the contribution margin per hour:
Cake Pie Cookies
contribution margin $18 $11 $3
production time 3 1 .30
contribution margin p/hour $6 $11 $10
Pie is the most profitable product, followed by cookies, and cakes are the less profitable products.
How is international employment different from foreign employment? Give your argument with examples.
Answer:
Foreign employment is working for a company that is based in another country and you usually only work in one country. International employment is working in multiple countries and often your own home country is one of them
Which is most likely a violation of the AICPA Code of Professional Conduct? A member firm buys computer time at wholesale prices from another CPA firm and sells it at retail prices to clients. A member firm’s name is imprinted on a tax booklet prepared by an outside author who is clearly identified. A member forms a partnership for the practice of public accounting with non-CPAs. A member begins a public accounting firm with the trade name "Pay Less Tax Service."
Answer:
A member begin a public accounting services with the trade name "Pay less tax "services"
Explanation:
The AICPA code of professional conduct is a set of mandatory rules describing the minimum level of conduct a member must maintain in order to earn public trust as this is of utmost priority to the professional body.
The code of conduct requires that no member should undergo any activity that undermines the services of the professional body . As a result , no member should charge a fee that that is believed to be be low and he should not mislead the public into believing such as a matter of integrity.
The business name "PAYLESS" appears to have violated this rule.
Which of the following statements regarding inventory costing methods is correct? Multiple Choice In periods of inflation, LIFO will result in the lowest reported net income, and therefore a company will pay less in federal income taxes
Answer:
In periods of inflation, LIFO will result in the lowest reported net income, and therefore a company will pay less in federal income taxes ⇒ TRUE STATEMENT
Explanation:
Last in, first out (LIFO) uses the price of the last units purchased in order to determine the cost of goods sold. When inflation is high, prices tend to increase continuously, therefore, the price of the last units purchased will always be higher than the price of the first units purchased. This doesn't mean that exactly the last units purchased will be the ones sold, it is just an accounting method.
If a government policy change harms a monopolist, the government could A. tax those who get additional gains and compensate the monopolist, thereby making the change a Pareto improvement. B. increase the general tax rate and compensate the monopolist, thereby making the change a Pareto improvement. C. do nothing, because the change is a Pareto improvement. D. It is not possible to mitigate the harm to a monopolist.
Answer:
Correct Answer:
C. do nothing, because the change is a Pareto improvement.
Explanation:
Monopolisim is the economic system whereby the business in concentrated in the hands of an individual thereby determining the price of the product which the citizens are going to pay. In a situation whereby the government policy change affect a monopolist, they should do nothing that would be beneficial to the monopolist.
On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company’s cost per new razor is $20 and its retail selling price is $75 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 8% of dollar sales. The following transactions and events occurred.
2016
Nov. 11 Sold 105 razors for $7,875 cash.
30 Recognized warranty expense related to November sales with an adjusting entry.
Dec. 9 Replaced 15 razors that were returned under the warranty.
16 Sold 220 razors for $16,500 cash.
29 Replaced 30 razors that were returned under the warranty.
31 Recognized warranty expense related to December sales with an adjusting entry.
2017
Jan. 5 Sold 150 razors for $11,250 cash.
17 Replaced 50 razors that were returned under the warranty.
31 Recognized warranty expense related to January sales with an adjusting entry.
1.1 Prepare journal entries to record above transactions and adjustments for 2016.
2. How much warranty expense is reported for November 2016 and for December 2016?
Warranty Expense for November 2016 ?????
Warranty expense for December 2016 ?????
3. How much warranty expense is reported for January 2017?
4. What is the balance of the Estimated Warranty Liability account as of December 31, 2016?
5. What is the balance of the Estimated Warranty Liability account as of January 31, 2017?
Answer:
Nov 11
Dr Cash 7,875
Cr To Sale 7,875
Nov. 11
Dr Cost of Goods Sold 2,100
Cr To Inventory 2,100
Nov. 30
Dr Warranty Expenses 630
Cr To Warranty Liability 630
Dec. 9
Dr Warranty Liability 300
Cr To Inventory 300
Dec. 16
Dr Cash 16,500
Cr To Sales 16,500
Dec. 16
Dr Cost of Goods Sold 4,400
Cr To Inventory 4,400
Dec. 29
Dr Warranty Liability 600
Cr To Inventory 600
Dec. 31
Dr Warranty Expenses 1,320
Cr To Warranty Liability 1,320
1.b Journal Entries for 2017
Jan 5
Dr Cash 11,250
Cr To Sales 11,250
Jan 5
Dr Cost of goods sold 3,000
Cr To Inventory 3,000
Jan 17
Dr Warranty Liability 1,000
Cr To Inventory 1,000
Jan 31
Dr Warranty Expenses 900
Cr To Warranty Liability 900
2)a. Warranty Expenses= $630
2b. Warranty Expenses= $1,320
3). Warranty Expenses= $900
4). Estimated Warranty Liability Account $1,050
5). Estimated Warranty liability account $900
Explanation:
Preparation of the Journal entries for Lobo Co
Journal Entries for 2016 for Lobo Co
Nov 11
Dr Cash 7,875
Cr To Sale 7,875
Nov. 11
Dr Cost of Goods Sold 2,100
Cr To Inventory (20*$105) 2,100
Nov. 30
Dr Warranty Expenses 630
($7,875*8%)
Cr To Warranty Liability 630
Dec. 9
Dr Warranty Liability 300
(15*$20)
Cr To Inventory 300
Dec. 16
Dr Cash 16,500
Cr To Sales 16,500
Dec. 16
Dr Cost of Goods Sold 4,400
Cr To Inventory 4,400
(220 * $20)
Dec. 29
Dr Warranty Liability 600
(30*$20)
Cr To Inventory 600
Dec. 31
Dr Warranty Expenses 1,320
($16,500*8%)
Cr To Warranty Liability 1,320
1.b Journal Entries for 2017
Jan 5
Dr Cash 11,250
Cr To Sales 11,250
Jan 5
Dr Cost of goods sold 3,000
(150*$15)
Cr To Inventory 3,000
Jan 17
Dr Warranty Liability 1,000
(50*$20)
Cr To Inventory 1,000
Jan 31
Dr Warranty Expenses 900
(11,250*8%)
Cr To Warranty Liability 900
2)a. Warranty Expenses for Nov. 2016
Warranty Expenses= $7,875*8%
Warranty Expenses= $630
2b. Warranty Expenses for Dec. 2016
Warranty Expenses= $16500*8%
Warranty Expenses= $1,320
3). Warranty Expenses for Jan. 2017
Warranty Expenses= $11,250*8%
Warranty Expenses= $900
4). Estimated Warranty Liability Account as on Dec. 31, 2016
Estimated Warranty Liability Account= $630 + $1,320 - $300 - $600
Estimated Warranty Liability Account= $1950- $900
Estimated Warranty Liability Account= $1,050
5). Estimated Warranty liability account as on Jan. 31, 2017
Estimated Warranty liability account = $1,050 + $900 - $1,050
Estimated Warranty liability account= $900
Leaf Co. purchased from Oak Co. a $20,000, 8%, 5-year note that required five equal annual year-end payments of $5,009. The note was discounted to yield a 9% rate to Leaf. At the date of purchase, Leaf recorded the note at its present value of $19,485. What should be the total interest revenue earned by Leaf over the life of this note
Answer:
$5,560
Explanation:
Given the following:
Present value of note recorded by Leaf on purchase date = $19,485
Annual year end payments = $5,009
Number of payments required = 5
Therefore, total amount received by Leaf :
Annual year-end payment * number of payments
$5,009 * 5 = $25,045
Present value of note recorded at purchase =$19,485
Therefore, total interest revenue earned by Leaf over the life of this note:
Total amount received - present value of note recorded
$25,045 - $19,485
= $5,560
It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. As a result, operators of hydroelectric power-generating plants downstream along the river find that they must clean up the river's water before it flows through their equipment.
If the government intervenes and corrects the externality in the situation described above, we would expect
a) the output of the paper mills to increase.
b) the price of paper from the mills to decrease.
c) production of the hydroelectric power plants to decrease.
d) production in the paper mills to decrease.
Answer: d. Production in the paper mills to decrease
Explanation:
Since they have been mandated to treat the water that is at their disposal, they have to do it. But what happens here is there would be a down time in production as some of the workers who are supposed to be carrying out their duty in the production site would be instructed to first clean the water that they have been instructed, this would lead to production in paper Mills to decrease.
Parker enters into a contract with seller Derrick to buy his home. Before finalizing the sale, Parker has a change of heart and decides to renounce all worldly possessions. He no longer wants to buy Derrick’s home, but his brother, Tom, agrees to take Parker’s place as the buyer in the purchase contract. This is an example of ______.
Answer: Novation
Explanation:
Novation agreement is defined as replacing an obligation with another or allowing a new party into a deal replacing an existing one, parties involved in new agreement has to sign this to agreement. The party brought in new was not part of the initial deal.