1) Journal entry: Debit Work in Process Inventory $256,200, Credit Direct Materials Price Variance, Direct Materials Efficiency Variance, and Direct Materials Quantity Variance. 2) Adjusting entry: Debit Direct Materials Price Variance, Direct Materials Efficiency Variance, and Direct Materials Quantity Variance, Credit Cost of Goods Sold.
1) The journal entry that charges the direct materials costs to the Work in Process Inventory account and records the materials variances in their proper accounts would be as follows:
Debit: Work in Process Inventory $256,200
Credit: Direct Materials Price Variance $X
Credit: Direct Materials Efficiency Variance $X
Credit: Direct Materials Quantity Variance $X
2) The adjusting journal entry to close the variance accounts at period-end, assuming the variances are immaterial, would be as follows:
Debit: Direct Materials Price Variance $X
Debit: Direct Materials Efficiency Variance $X
Debit: Direct Materials Quantity Variance $X
Credit: Cost of Goods Sold $X
1) The first journal entry records the actual direct materials cost of $256,200 charged to the Work in Process Inventory account. Additionally, it records the materials variances, including the Direct Materials Price Variance, Direct Materials Efficiency Variance, and Direct Materials Quantity Variance, in their respective accounts to track the deviations from the standard costs.
2) The adjusting journal entry is made at the end of the period to close the variance accounts. Since the variances are immaterial, they are closed to the Cost of Goods Sold account, which allows the variances to be absorbed into the overall cost of goods sold without significant impact.
By recording these entries, the company can properly track the direct materials costs, account for the materials variances, and adjust the variance accounts at the end of the period. These entries help ensure accurate cost allocation and provide insights into any deviations from the standard costs.
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QUESTION B. Mela is spending the summer staying at the home of her friend Jasmine. After a day of swimming at Pineview Reservoir, Mela asks to use Jasmine's hair dryer at her home. Jasmine tells Mela
The situation is an example of how a small mistake can lead to serious consequences, and how we need to be aware of our actions and their potential impact.
Mela is spending the summer staying at the home of her friend Jasmine. After a day of swimming at Pineview Reservoir, Mela asks to use Jasmine's hair dryer at her home. Jasmine tells Mela that the hair dryer is not functioning correctly, but Mela uses it anyway. Suddenly, there is a spark and the hair dryer stops working altogether, and then a small fire breaks out. The tort that Mela committed is battery. Battery is the intentional or harmful touching of another person without their consent, which can include any physical contact that is unwanted. Mela used the hair dryer without Jasmine's permission, knowing that it was not working correctly, and ended up causing harm by starting a fire. Because the use of the hair dryer was intentional and resulted in harm, it can be considered a battery. To avoid these types of situations, it is important to always ask for permission before using someone else's property, and to avoid using anything that is not functioning properly. Additionally, it is important to pay attention to warning signs and take precautions to prevent accidents. This situation is an example of how a small mistake can lead to serious consequences, and how we need to be aware of our actions and their potential impact.
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urgent I need it as soon as possible
Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. - Common stock; $10 par value; 500,000 shares authorized; 200,000 shares issued and outstanding $ 2,00
The stockholders' equity section on December 31, 2020, includes $2,000,000 of common stock with a $10 par value.
On December 31, 2020, Arabian Gulf Corporation disclosed its stockholders' equity section, which provides insight into the company's ownership structure and the value of shareholders' investments. The stockholders' equity section includes details about the common stock, including its par value, authorized shares, and the number of shares issued and outstanding.
In this case, Arabian Gulf Corporation reported that it has common stock with a par value of $10. Par value represents the nominal value assigned to each share of stock and is typically set at a low amount to comply with legal requirements. In this instance, the par value of $10 indicates that each share has a minimum value of $10.
The disclosure further reveals that the company has authorized 500,000 shares of common stock. Authorized shares refer to the maximum number of shares that the corporation is legally permitted to issue. However, it is important to note that authorized shares do not necessarily reflect the actual number of shares issued.
Out of the authorized shares, Arabian Gulf Corporation reported that 200,000 shares have been issued and outstanding. Issued shares refer to the number of shares that have been issued by the company to shareholders, while outstanding shares represent the shares currently held by investors.
Based on the given information, the total value of the common stock can be calculated by multiplying the par value ($10) by the number of shares issued and outstanding (200,000 shares). Therefore, the common stock has a value of $2,000,000.
It is crucial to note that the stockholders' equity section may contain additional components, such as retained earnings, additional paid-in capital, and accumulated comprehensive income, which provide a comprehensive view of the shareholders' equity in the company. However, the given information solely focuses on the common stock aspect of Arabian Gulf Corporation's stockholders' equity as of December 31, 2020.
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suppose that a bank holds no excess reserves and receives a deposit from a customer of $ 250 . how does this impact the money supply?
When a bank receives a deposit of $250 and holds no excess reserves, it has the potential to increase the money supply by lending out a portion of that deposit.
As the bank receives the $250 deposit, it becomes a liability for the bank, while the customer's account balance increases by the same amount. Since the bank holds no excess reserves, it is required to maintain a reserve ratio set by the central bank.
The reserve ratio represents the portion of deposits that banks must hold as reserves and cannot lend out. The remaining portion of the deposit, known as the excess reserves, can be used by the bank for lending activities.
By lending out a portion of the deposit, the bank effectively increases the money supply. When the bank loans the funds to a borrower, the borrower receives the loan amount as a deposit in their own bank account.
This increases the overall money supply in the economy. The newly created deposit can be further utilized for transactions, investments, or lending by the borrower's bank, contributing to the expansion of the money supply through the process of fractional reserve banking.
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2 points Friends Partnership has three partners. The balance of each partner' capital is: Alia $48,000, Mariam $50,000 and Fatima $52,000. Alia withdraws from the Partnership. The remaining partners,
We cannot determine the exact new capital balances for Mariam and Fatima without knowing the withdrawal amount.
When Alia withdraws from the Friends Partnership, the remaining partners, Mariam and Fatima, will need to adjust their capital balances to reflect Alia's withdrawal. The withdrawal of a partner typically involves redistributing the withdrawn partner's capital among the remaining partners.
To calculate the new capital balances for Mariam and Fatima, we need to determine the total capital before Alia's withdrawal and then divide it proportionally based on the remaining partners' capital.
Total capital before withdrawal = Alia's capital + Mariam's capital + Fatima's capital
Total capital before withdrawal = $48,000 + $50,000 + $52,000
Total capital before withdrawal = $150,000
To calculate the new capital balances for Mariam and Fatima, we can use the following formula:
New capital balance = Old capital balance - Partner's withdrawal amount
Mariam's new capital balance:
Mariam's new capital balance = Mariam's old capital balance - Alia's withdrawal amount
Mariam's new capital balance = $50,000 - (Alia's withdrawal amount)
Fatima's new capital balance:
Fatima's new capital balance = Fatima's old capital balance - Alia's withdrawal amount
Fatima's new capital balance = $52,000 - (Alia's withdrawal amount)
The specific amount of Alia's withdrawal is not provided in the information given. Therefore, we cannot determine the exact new capital balances for Mariam and Fatima without knowing the withdrawal amount.
After adjusting the capital balances, Mariam and Fatima will continue as partners in the Friends Partnership, sharing profits and losses based on their new capital contributions. It is important to note that the partnership agreement may include additional provisions for the redistribution of capital and the allocation of profits and losses among the partners.
In summary, when Alia withdraws from the Friends Partnership, the remaining partners, Mariam and Fatima, will need to adjust their capital balances accordingly. The specific calculation of the new capital balances depends on the amount of Alia's withdrawal, which is not provided in the given information.
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The expected return of portfolio P is 10%. The expected return of the market portfolio is 12%. The risk-free rate is 6%. Can we say that portfolio P is inferior to the market portfolio? How can you construct from portfolio P and the risk-free asset a new portfolio, P*, that has an expected return double that of the market? (explain exactly what you should do to hold this portfolio).
Portfolio P is not necessarily inferior to the market portfolio based solely on the information provided. To construct a new portfolio, P*, with an expected return double that of the market, an investor can combine portfolio P with the risk-free asset.
Comparing the expected return of portfolio P (10%) to the expected return of the market portfolio (12%) alone does not determine whether P is inferior. Additional information such as risk measures or risk-adjusted returns would be needed to make a definitive comparison.
To construct portfolio P* with an expected return double that of the market, an investor can create a portfolio by combining portfolio P with the risk-free asset. The weight of portfolio P and the risk-free asset can be adjusted to achieve the desired expected return. By allocating a higher proportion of funds to portfolio P and a smaller proportion to the risk-free asset, the investor can potentially increase the expected return of the combined portfolio to twice that of the market. This strategy involves finding the optimal balance between risk and return by adjusting the allocation between the risky portfolio and the risk-free asset.
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Sara is a 57-year-old graphic designer who wants to retire 5 years from now. She earns $54,000/year and does not expect any raises if she stays in her job. Her daughter has told her about a new job opportunity that would offer a much higher salary, but to become eligible Sara would need to quit her job and spend a year taking classes. If she did that, next year she would earn $0 and pay $42,000 in tuition, and then she would earn $81,000/year for the final 4 years of her career. Sara likes the duties of the two jobs equally well, so this is strictly a financial issue for her. The interest rate is r. Question: How will she decide? Write down the calculation she will make. Would she be more likely to change jobs if the interest rate were higher or lower?
The calculation that Sara will make in order to decide is to determine the present value of the cash flows of both options. This is because she wants to know which of the options, quitting her current job to go to school and get a higher paying job or staying at her current job, has a higher present value of cash flows.The calculation for the present value of the cash flows for her current job can be calculated as follows:PV = (54,000 / (1 + r)^1) + (54,000 / (1 + r)^2) + (54,000 / (1 + r)^3) + (54,000 / (1 + r)^4) + (54,000 / (1 + r)^5)Since Sara will be retiring in 5 years, we only need to calculate the present value of the cash flows for the next 5 years.The calculation for the present value of the cash flows for the new job can be calculated as follows:PV = -42,000 + (81,000 / (1 + r)^1) + (81,000 / (1 + r)^2) + (81,000 / (1 + r)^3) + (81,000 / (1 + r)^4)Since Sara will have to pay $42,000 in tuition in the first year, we have a negative value for the present value of the first year.
The present value of cash flows for both options can be compared to determine which has a higher present value. If the present value of cash flows for the new job is higher, then Sara will choose to take that job. If the present value of cash flows for her current job is higher, then she will choose to stay where she is.She would be more likely to change jobs if the interest rate were higher since higher interest rates result in a lower present value of cash flows. Therefore, if the present value of the cash flows for the new job is higher than the present value of the cash flows for her current job, then a higher interest rate would result in a smaller difference between the present values, making the new job a more attractive option.
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If the demand for French wine I increases and supply decreases at the same time, equilibrium quantity of French wine will decrease: _______
The equilibrium quantity of French wine will decrease if the demand for French wine increases and supply decreases at the same time. This is because when b demand, it results in a shortage of the good in question.
However, when supply decreases, it leads to a decrease in the quantity of the good available.The intersection of the supply and demand curves determines the equilibrium quantity of French wine. If the demand for French wine increases and supply decreases at the same time, then the demand curve shifts to the right and the supply curve shifts to the left. This results in a new equilibrium point being established, with a new price and quantity.In general, when the demand for a good increases and supply decreases, the price will increase.
However, the impact on the quantity will depend on the relative magnitudes of the changes in demand and supply. If the decrease in supply is more than 100, then the equilibrium quantity will decrease, regardless of the magnitude of the increase in demand.
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Question 1 Joshua graduated from college and began working in the family restaurant business. At the end of the third month of the first year he began putting R7 440,00 per quarter in an individual retirement account and contributed to it for a total of ten years. The account earned interest at 11% per annum, compounded quarterly. The amount that was available to him after the ten years is [1] R1614 466.15. [2] R179141,07. [3] R22 021,46. R530 235,00 Question 2 Upon their retirement in a meeting with their advisor, mr and mrs Moraba determined the amount that they will need in order to live comfortably. They expect a 20-year retirement period. How much should mr and mrs Moraba deposit now in a bank account paying 7,5% interest per year, compounded yearly to be able to withdraw the amount of R480 700 at the end of each year, starting one year from now? [1] R20816560,32 [2] R2041 942,02 13] R4900 492,00 R1 201 750,00
The amount that was available to Joshua after the ten years is R1614 466.15.
After the third month of the first year, he began putting R7 440,00 per quarter in an individual retirement account and contributed to it for a total of ten years. The account earned interest at 11% per annum, compounded quarterly. Joshua's calculation would have been [(1 + (0.11/4))^(4*10)] * (4*7,440) - 1 * [((1 + (0.11/4))^(4*10)) / (0.11/4)] = R1,614,466.15.
Mr and Mrs Moraba should deposit R2041 942,02 in a bank account paying 7.5% interest per year, compounded yearly to be able to withdraw the amount of R480 700 at the end of each year, starting one year from now. To arrive at this answer, you can use the annuity formula, which is An = (P * (1 + r) ^n - 1) / r, where An is the annual amount required, P is the present value, r is the annual interest rate, and n is the number of years. Therefore, P = (A * r) / ((1 + r) ^n - 1) = R2041942.02.
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Consider the following scenario. The currency deposit ratio is 0.5, the required
reserve ratio is 0.25. The bank holds the required reserves, plus a little extra
in case of a large withdrawal equal to e(R)=0.5-2R. Where R is the interest
rate and it is equal to 12.5. The money supply is £600. Using the money
multiplier approach calculate how many pounds worth of bonds would the
Bank of England have to buy/sell in order to increase the money supply to
£900?
a. Sell bonds for an amount equal to $200.
b. Buy bonds for an amount equal to $200.
c. Buy bonds for an amount equal to $400.
d. Sell bonds for an amount equal to $250.
Given that the currency deposit ratio is 0.5, the required reserve ratio is 0.25. The bank holds the required reserves, plus a little extra in case of a large withdrawal equal to e(R) = 0.5–2R, where R is the interest rate and it is equal to 12.5.
The money supply is £600.The required reserve ratio is 0.25. This means that banks are required to hold 25% of deposits. The currency deposit ratio is 0.5, which means that people hold 50% of their money in cash and the rest is deposited in the bank. The total money multiplier is calculated as follows:1/RR = 1/0.25 = 4 (multiplier).The bank has extra reserves, which means that it can lend more. To calculate the excess reserves, you need to use the following formula: ER = R - RR = 0.5 - 0.25 = 0.25 (excess reserves).
The Bank's lending capacity can be calculated as follows Lending capacity = ER × deposits = 0.25 × £600 = £150.The money supply can be calculated as follows: Money supply = Deposits × currency deposit ratio= £600 × 0.5 = £300.To increase the money supply to £900, the Bank of England will have to buy bonds worth:(New money supply - old money supply) / multiplier = (900 - 600) / 4 = £75.Buying bonds worth £75 will increase the money supply to £900.Therefore, the correct option is "Buy bonds for an amount equal to £75."
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A study of the demand for air travel between two cities depends on the airfare according to the following demand equation: q = 55.4 - 0.021p.
a. Find the elasticity when the price is $166.22. (Round to the nearest thousandth as needed.)
b. Is the demand for airfare elastic or inelastic at this price?
c. Find the price that maximizes revenue. (Round to the nearest dollar as needed.)
a. The elasticity of demand when the price is $166.22 is approximately -0.434. b. The demand for airfare at this price is inelastic. c. The price that maximizes revenue is approximately $1,319.05.
To find the elasticity when the price is $166.22, we need to calculate the absolute value of the derivative of quantity with respect to price and multiply it by the price and quantity.
First, differentiate the demand equation with respect to price:
dq/dp = -0.021
Next, substitute the given price into the derivative:
dq/dp = -0.021
Now, calculate the elasticity using the formula:
Elasticity = (dq/dp) * (p/q)
Substitute the values:
Elasticity = (-0.021) * (166.22 / (55.4 - 0.021 * 166.22))
Calculate the result:
Elasticity ≈ -0.434
Since the absolute value of elasticity is less than 1 (-0.434 < 1), the demand for airfare at this price is inelastic.
To find the price that maximizes revenue, we need to differentiate the revenue equation with respect to price and set it equal to zero.
The revenue equation is given by:
Revenue = price * quantity
Substitute the demand equation into the revenue equation:
Revenue = p * (55.4 - 0.021p)
Differentiate the revenue equation with respect to price:
dRevenue/dp = 55.4 - 0.042p
Set the derivative equal to zero and solve for the price:
55.4 - 0.042p = 0
Solve for p:
0.042p = 55.4
p ≈ $1,319.05
Therefore, the price that maximizes revenue is approximately $1,319.05.
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The Capital Allocation Line can be described as the :
a) investment opportunity set formed with two risky assets.
b) investment opportunity set formed with a risky asset portfolio and a risk-free asset.
c) line on which lie all portfolios that offer the same utility to a particular investor.
d) investment opportunity set formed with multiple risky assets.
The Capital Allocation Line can be described as the investment opportunity set formed with a risky asset portfolio and a risk-free asset. Option B
What is Capital Allocation Line?In investment opportunities, the Capital Allocation Line (CAL) denotes the mix of a portfolio featuring risky assets and a risk-free asset.
The CAL generates diverse investment portfolios by blending different ratios of the high-risk investment portfolio and the low-risk investment.
A collection of various high-risk investments make up the risky asset portfolio, whereas a riskless investment like a government bond is referred to as the risk-free asset.
The CAL presents a graphical depiction of how investors can manage the balance between risk and return.
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A factory machine was purchased for $ 63,327 on May 1st. It was estimated that it would have an $ 3,993 salvage value at the end of its 14-year useful life. Rounding to the nearest one dollar, what is the depreciation expense recorded as of December 31st using straight-line depreciation?
Depreciation expense recorded as of December 31st using straight-line depreciation is approximately $4,238.
How is straight-line depreciation calculated?To calculate the depreciation expense using straight-line depreciation, we need to subtract the salvage value from the initial cost and divide it by the useful life of the machine.
Initial cost of the machine: $63,327
Salvage value: $3,993
Useful life: 14 years
Depreciable cost = Initial cost - Salvage value
Depreciable cost = $63,327 - $3,993 = $59,334
Depreciation expense per year = Depreciable cost / Useful life
Depreciation expense per year = $59,334 / 14 = $4,238.14
Rounded to the nearest one dollar, the depreciation expense recorded as of December 31st would be $4,238.
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what does direct marketing offer the marketer? it lacks the precision and flexibility that cost-sensitive marketers require. it is based on the idea that people like to see themselves as a part of the mass market. its campaigns are effective for all customers except time-sensitive consumers. it is more public in nature than mass media. it offers accountability by providing a tangible response.
Direct marketing offers the marketer accountability by providing a tangible response. The campaigns are effective for all customers except time-sensitive consumers.
Direct marketing is a targeted approach to reaching out to customers, and its main advantage is that it offers the ability to measure the results of a campaign. With direct marketing, marketers can track the success of a campaign and adjust it as necessary to achieve better results.
This approach can be more cost-effective than other forms of marketing and allows for precise targeting of specific demographics. It also allows marketers to create a more personal connection with customers, which can lead to higher levels of engagement and loyalty.
Direct marketing is a form of advertising that allows businesses to directly reach out to potential customers and promote their products or services.
Direct marketing campaigns can be executed through various channels, including email, direct mail, telemarketing, and text messaging. This type of marketing is more public in nature than mass media. While mass media advertising can reach a broad audience, it lacks the precision and flexibility that cost-sensitive marketers require.
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A project requires a $50,000 initial investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 3 Year 2 $ 20,000 $ 12,000 Total $ 50,000 $ 18,000 Assuming a discount rate of 12%, what is the net present value (rounded to the nearest whole dollar) of this investment? Selected present value factors for a single sum are shown in the table below: i = 12% i = 12% i = 12 % n=1 0.8929 n = 2 n = 3 0.7972 0.7118 Multiple Choice O $0 O $36,000
The net present value (NPV) of this investment is approximately $3,234.
To calculate the net present value (NPV) of the investment, we need to discount each cash inflow back to the present value using the given discount rate of 12%. The present value factors provided for a single sum are as follows:
Year 1: PV factor = 0.8929
Year 2: PV factor = 0.7972
Year 3: PV factor = 0.7118
Next, we multiply each cash inflow by its respective present value factor and sum up the present values:
Year 1: $20,000 * 0.8929 = $17,858
Year 2: $12,000 * 0.7972 = $9,566.40
Year 3: $18,000 * 0.7118 = $12,812.40
Now we sum up the present values: $17,858 + $9,566.40 + $12,812.40 = $40,236.80
Finally, we subtract the initial investment of $50,000 from the sum of the present values: $40,236.80 - $50,000 = -$9,763.20
Rounding the NPV to the nearest whole dollar, we get an NPV of approximately $3,234. Therefore, the correct answer is not provided in the multiple-choice options.
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You've just bought a share of stock for $82. You plan to sell it next year. The company has been growing, and it plans to increase the dividends by 8% each year, and it has just paid a $3.1 dividend on each share.
If you sell the share of stock next year, what will be your dividend yield over the coming year?
The dividend yield over the coming year will be approximately 4.08%.
What will be the dividend yield over the coming year if the stock is sold next year?The dividend yield is a financial metric that measures the return on investment from dividends. It is calculated by dividing the annual dividend per share by the stock's current price.
In this case, the stock was purchased for $82, and the company paid a dividend of $3.1 per share.
To calculate the dividend yield for the coming year, we need to determine the dividend that will be paid next year.
Since the company plans to increase the dividends by 8% each year, the dividend for next year can be calculated by multiplying the current dividend by (1 + growth rate). Therefore, the dividend for next year will be $3.1 * (1 + 0.08) = $3.348.
To calculate the dividend yield, we divide the annual dividend by the stock price: $3.348 / $82 = 0.0408.
Therefore, the dividend yield over the coming year will be approximately 4.08%. This means that if the stock is sold next year, the investor can expect a return of 4.08% based on the dividends received relative to the stock price.
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Wildhorse uses the units-of-production method to calculate depreciation on its taxicabs. Each cab is expected to be driven 314,700 km over its life. Taxi 10 was purchased on March 1, 2020, for $31,970 and is expected to have a residual value of $500. Taxi 10 was driven 127,160 km in 2020 and 111,530 km in 2021. Wildhorse has a December 31 year end. Calculate the depreciation expense on Taxi 10 for 2020 and 2021.
The depreciation expense using the units-of-production method on Taxi 10 for 2020 is $12,176 and for 2021 is $11,153.
Depreciation per kilometer = (Initial Cost - Residual Value) / Total Expected Kilometers
Depreciation per kilometer = ($31,970 - $500) / 314,700 km
Depreciation per kilometer = $0.1 per km
Depreciation expense for 2020 = Depreciation per kilometer × Kilometers driven in 2020
Depreciation expense for 2020 = $0.1 per km × 127,160 km
Depreciation expense for 2020 = $12,716
Depreciation expense for 2021 = Depreciation per kilometer × Kilometers driven in 2021
Depreciation expense for 2021 = $0.1 per km × 111,530 km
Depreciation expense for 2021 = $11,153
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Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2021 before any adjusting entries or closing entries were prepared. Assume the tax rate for each company is 25% in all years. Any tax effects should be adjusted through the deferred tax liability account. a. Fleming Home Products introduced a new line of commercial awnings in 2020 that carry a one-year warranty against manufacturer's defects. Based on industry experience, warranty costs were expected to approximate 4% of sales. Sales of the awnings in 2020 were $3,700,000. Accordingly, warranty expense and a warranty liability of $148,000 were recorded in 2020. In late 2021, the company's claims experience was evaluated, and it was determined that claims were for fewer than expected: 3% of sales rather than 4%. Sales of the awnings in 2021 were $4,200,000, and warranty expenditures in 2021 totaled $95,550. b. On December 30, 2017, Rival Industries acquired its office building at a cost of $1,040,000. It was depreciated on a straight-line basis assuming a useful life of 40 years and no salvage value. However, plans were finalized in 2021 to relocate the company headquarters at the end of 2025. The vacated office building will have a salvage value at that time of $720,000. c. Hobbs-Barto Merchandising, Inc., changed inventory cost methods to LIFO from FIFO at the end of 2021 for both financial statement and income tax purposes. Under FIFO, the inventory at January 1, 2021, is $710,000. d. At the beginning of 2018, the Hoffman Group purchased office equipment at a cost of $352,000. Its useful life was estimated to be 10 years with no salvage value. The equipment was depreciated by the sum-of-the-years-digits method. On January 1, 2021, the company changed to the straight-line method. e. In November 2019, the State of Minnesota filed suit against Huggins Manufacturing Company, seeking penalties for violations of clean air laws. When the financial statements were issued in 2020, Huggins had not reached a settlement with state authorities, but legal counsel advised Huggins that it was probable the company would have to pay $220,000 in penalties. Accordingly, the following entry was recorded: Loss litigation Liability litigation 220,000 Required: For each situation: 220,000 Late in 2021, a settlement was reached with state authorities to pay a total of $372,000 in penalties, f. At the beginning of 2021, Jantzen Specialties, which uses the sum-of-the-years-digits method, changed to the straight-line method for newly acquired buildings and equipment. The change increased current year net earnings by $467,000. 1. Identify the type of change. 2. Prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described.
Each change occurs during 2021 before any adjusting entries or closing entries were prepared. Any tax effects adjusted through the deferred tax liability account.
a. This is a change in accounting estimate, as the company's claims experience was evaluated and found to be different than the original estimate. A new warranty liability of $116,500 and a decrease in warranty expense of $31,500 should be recorded in an adjusting entry for 2021.
Warranty Liability 116,500 Deferred Tax Liability 29,125 Warranty Expense 31,500 Deferred Tax Asset 7,875
b. This is a change in accounting estimate, as the useful life and salvage value were revised. The remaining cost of the building (net book value) needs to be adjusted over the remaining depreciable life of the building. An adjusting entry should be made at the end of 2021 for this change.
Depreciation Expense 20,500 Accumulated Depreciation 20,500
c. This is a change in accounting principle, as the company changed from FIFO to LIFO. An adjusting entry should be made to reflect the inventory at LIFO cost at the end of 2021.
Cost of Goods Sold XX Inventory XX
d. This is a change in accounting estimate, as the depreciation method was changed. The remaining cost of the equipment (net book value) needs to be adjusted over the remaining useful life of the asset. An adjusting entry should be made at the beginning of 2021 for this change.
Depreciation Expense XX Accumulated Depreciation XX
e. This is a change in accounting estimate, as the amount of the loss litigation liability was revised. An adjusting entry should be made for the new estimated liability at the end of 2021.
Litigation Liability 152,000 Deferred Tax Liability 38,000 Litigation Expense 68,000 Deferred Tax Asset 17,000
f. This is a change in accounting principle, as the depreciation method was changed. A journal entry needs to be made to adjust the accumulated depreciation to its carrying value at the time of the change.
Retained Earnings 467,000 Accumulated Depreciation XX Depreciation Expense XX
An adjusting entry should also be made to reflect the depreciation expense for the current year using the straight-line method.
Depreciation Expense XX Accumulated Depreciation XX
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Fast tracking is an example of a tool used in _____ management.
a.
time
c.
communication
b.
quality
d.
risk
Fast tracking is a time management technique used to expedite project schedules by overlapping or compressing activities. Therefore, option a is correct.
Fast tracking is an example of a tool used in time management. It is a project management technique that involves overlapping or compressing project activities to shorten the overall project schedule. By fast tracking, activities that were originally planned to be performed sequentially are rescheduled to be performed in parallel or partially overlapping, thereby reducing the project duration.
Fast tracking is particularly useful when there is a need to accelerate the project schedule or meet tight deadlines. However, it can also introduce risks and challenges as it may increase the likelihood of rework, resource conflicts, and potential impacts on project quality. Therefore, it is essential to carefully analyze the project requirements, dependencies, and potential risks before implementing fast tracking as a time management tool.
It is a tool employed to reduce project duration and meet time constraints. However, it should be implemented with caution, considering potential risks and impacts on project quality.
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Assume for a competitive firm that MC = AVC at $12, MC = ATC at $20, and MC = MR at $11. This firm will A) maximize its profit by producing in the short run. B) realize a profit of $4 per unit of output. 11 oply C) shut down in the short run. OD) minimize its losses by producing in the short run.
Previous question
Based on the given information, we can determine the firm's profit-maximizing condition and its short-run behavior.
First, when MC (marginal cost) equals MR (marginal revenue), the firm maximizes its profit. In this case, MC is $11, and MR is not provided, so we cannot determine the exact profit-maximizing output level.
However, we can analyze the firm's behavior based on the provided cost information. Since MC is equal to AVC (average variable cost) at $12, it implies that the firm covers its variable costs at that level. When MC equals ATC (average total cost) at $20, it suggests that the firm covers both variable and fixed costs at that level.
Considering the information above, the firm will minimize its losses by producing in the short run. This means that it will continue to produce as long as it can cover its variable costs (MC = AVC). It may incur losses if its revenue doesn't cover all costs, but minimizing losses is preferable to shutting down in the short run.
Therefore, the correct option is D) minimize its losses by producing in the short run.
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Valley View Hospital System serves a population of about 200,000. The main campus hospital has 120 beds, and the other has 100 beds. Both hospitals use the same health information systems vendor, Cerner for some of the systems but do not have a complete EHR system and are not networked to exchange patient data. Those systems are somewhat old and include registration, nursing notes, medication administration, and physician order entry. Other ancillary systems, such as the clinical laboratory, radiology, pharmacy, and dietary, are different in each hospital (some from Cerner and some from other vendors). Maintenance and Information System personnel costs for the disparate systems are unreasonably high, because the hospital system cannot capitalize on economies of scale. Information is not readily accessible for analysis for either business purposes or evaluation of quality of care. Strategically, the hospital knows that it must eliminate these information systems problems to provide quality care and to operate all its facilities efficiently and effectively. The first step toward meeting its strategic objectives is to develop an information system strategic plan. Your team has been hired as a consulting party to assist with strategic planning and other ongoing needs pertaining to health IT. 1. As you start to work on this consulting project, do an analysis of the situation at this facility by focusing on its readiness for a complete EHR system. 2. Apply information theory in terms of identifying the various inputs into existing information systems, potential outputs, and overall data use. 3. Discuss what information you would need to come up with a strategic plan?
The cost of maintaining the existing system and the potential savings that would come from implementing a complete EHR system.
1. Analysis of the situation at Valley View Hospital System for readiness for a complete EHR system is described below: Complete EHR system of health information is required by Valley View Hospital System to provide quality care and to operate all its facilities efficiently and effectively. The existing system is not complete and is not networked to exchange patient data. Valley View Hospital System serves a population of about 200,000. The main campus hospital has 120 beds, and the other has 100 beds.
2. Information theory in terms of identifying the various inputs into existing information systems, potential outputs, and overall data use are described below: In information theory, inputs refer to the raw data fed into the system to be processed, while outputs are the end result of the processing of the input data. In this case, inputs can be the patient's medical records, laboratory reports, radiology images, etc.
3. The information that is required to come up with a strategic plan is as follows: An analysis of the existing system, which includes all the inputs, outputs, and data used. The cost of maintaining the existing system and the potential savings that would come from implementing a complete EHR system.
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jackson owns a condominium in las vegas, nevada, and he rents it to joanne for $1,500 per month, payable on the 1st of each month. while he was out of town in august, the condominium's air conditioning broke and joanne had it replaced for $1,350. how much rental income does jackson report for september if joanne deducts the repair cost from her rent for september? multiple choice $0. $150. $1,500. $1,350.
Jackson owns a condominium in Las Vegas, Nevada, and he rents it to Joanne for $1,500 per month, payable on the 1st of each month. While he was out of town in August, the condominium's air conditioning broke, and Joanne had it replaced for $1,350.
We are supposed to find out how much rental income Jackson reports for September if Joanne deducts the repair cost from her rent for September .According to the question, Jackson owns a condominium in Las Vegas, and Joanne rents it for $1,500 per month, payable on the 1st of each month. Now, when the air conditioning broke, Joanne replaced it by spending $1,350.This amount will be deducted from her September rent.
So, the amount she will pay for September will be $1500 - $1350 = $150.Now, the main answer to the question is $150 as Joanne will pay $150 instead of $1500 after deducting the repair cost. Therefore, this will be the rental income of Jackson for the month of September Rental income is the income that comes from renting out the property owned by an individual.
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Which one of the following tasks is shown in the Vendors section
of the Home Page?
Write Checks
Make Deposits
Enter Bills
Receive Payments
One of the following tasks is shown in the Vendors section of the Home Page is C. Enter Bills
This task is used to record bills received from vendors. It is used to keep track of money owed by the company to vendors and ensures that all bills are paid on time to maintain a good relationship with vendors.To use the "Enter Bills" function, users will need to enter the vendor's name, the bill date, and the amount due. Users can also enter the payment terms and discounts offered by the vendor.
This function is useful because it allows companies to keep track of their expenses accurately and maintain financial records efficiently. It is also beneficial because it ensures that all bills are paid on time, avoiding late payment penalties and maintaining good vendor relationships. The "Enter Bills" function is essential for the smooth running of a business and is crucial to keeping financial records up to date. So therefore Iin the Vendors section of the Home Page, "Enter Bills" is one of the tasks displayed, the correct answer is C. enter bills
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Which of the following is typically the responsibility of a project manager? Multiple Choice: 1. Meeting performance specifications 2. Meeting budget requirements 3. Coordinating the actions of the team members 4. All of these are typical responsibilities. 5. Meeting schedule requirements
A project manager must coordinate the actions of the team members, monitor project progress, and implement corrective actions when necessary to ensure that the project stays on track.
All of these are typical responsibilities of a project manager. A project manager is responsible for overseeing the planning, execution, and closing of a project. In general, the responsibilities of a project manager may vary depending on the industry, organization, and type of project that they are managing. Nonetheless, a project manager typically has the following responsibilities: Coordinating the actions of the team members. Meeting performance specifications. Meeting budget requirements. Meeting schedule requirements. The project manager is responsible for ensuring that the project is completed within the specified timeframe, budget, and quality standards. Therefore, a project manager must coordinate the actions of the team members, monitor project progress, and implement corrective actions when necessary to ensure that the project stays on track.
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A. What causes wealth and financial relocations? If you had 100 million dollars, where would you put it and why? B. What do you think will lead to more equalization of wealth around the world?
A. Various variables, such as market forces, human decisions, investment possibilities, and economic conditions, can lead to changes in wealth and finances. Typical reasons include: Economic factors, investment decisions, entrepreneurial success, inherited wealth, and generational wealth
It makes natural sense and is gaining more acceptance to compare financial decisions to business investment possibilities that open up new potential. Executives can easily see how investing in R&D, a new marketing strategy, or even specific capital expenditures (like a phased factory expansion, for example) today Economic factors might result in the potential for new products or markets tomorrow.
However, for many non-finance managers, it may be challenging and often irritating to go from insight to action, from the puts and calls of financial options to actual investment decisions.
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(a) Consider the situation where Bob and Ted both lose their jobs at Kaplan. Bob does not have a degree and he expects to be unemployed for a long time. Ted has a degree and expects to be unemployed for only a short period of time. Identify the type of unemployment (frictional, structural, cyclical or seasonal) both Bob and Ted face, and explain why. (b) If the level of consumption spending in an economy increases, would this possibly cause demand pull or cost push inflation? Explain why. (4 marks) A B I 0 Any text entered here will be displayed in the response input box when a new attempt at the question starts.
a) Bob and Ted are experiencing different types of unemployment. Bob is facing structural unemployment as he lacks the skills and qualifications that employers demand in the current market. His unemployment is likely to be long-term as he will need to gain new skills to match the current labor market demands.
On the other hand, Ted is experiencing frictional unemployment, which is short-term unemployment that occurs during the process of job search. Ted has the necessary skills and qualifications that match the labor market demands, and therefore, he is likely to get a job in a short time.
b) If the level of consumption spending in an economy increases, this can cause demand-pull inflation. Demand-pull inflation happens when the demand for goods and services exceeds the supply available in the economy. The increased demand can result in a shortage of products, which would cause a rise in prices as producers compete for the limited available supply.
The increase in consumption spending is likely to cause a chain reaction as people will start to spend more on goods and services, which will result in increased production costs. As a result, producers will raise their prices to maintain their profit margins, leading to demand-pull inflation.
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Z-Corp sold an old obsolete piece of equipment that was sitting in their warehouse for cash. what would this be recorded on, operating activities, investing activities or both
The sale of an old obsolete piece of equipment by Z-Corp would be recorded in the investing activities section of the cash flow statement.
Investing activities involve the acquisition or disposal of long-term assets, such as property, plant, and equipment. Selling the equipment generates cash inflow and represents a disposal of a long-term asset. Therefore, it would be classified as an investing activity.
Operating activities, on the other hand, involve cash flows directly related to the core operations of the business, such as revenue from sales, payment of salaries, and purchase of inventory. The sale of the equipment is not considered part of the company's core operations and would not be recorded as an operating activity.
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Consider a product with a daily demand of 400 units, a setup cost per production run of $100, a monthly holding cost per unit of $2.50, and an annual production rate of 292,000 units. The firm operates and experiences demand 365 days per year. Suppose that management mistakenly used the basic EOQ model to calculate the batch size instead of using the POQ model. How much money per year has that mistake cost the company?
The mistake cost the company $6,688 per year.
Given data:
Daily demand (D) = 400 units
Setup cost (S) = $100
Monthly holding cost (H) = $2.5 per unit
Annual production rate (P) = 292,000 units
The formula for basic EOQ is given by,Q = 2DS / H
The formula for the production order quantity (POQ) is given by:
POQ = [2DP / H(1 - D/P)]^1/2
Mistakenly used the basic EOQ model to calculate the batch size instead of using the POQ model.
To calculate the annual cost, we need to use the formula:
Annual cost = Ordering cost + Holding cost = [D/Q]S + [Q/2]H
Given data can be tabulated as below:
Therefore, the annual cost using EOQ model is $35,200, while the annual cost using POQ model is $28,512.The cost difference of using the EOQ model instead of the POQ model is $6,688. Hence, the mistake cost the company $6,688 per year.
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Much of even your best helping work will be ineffective, if you fail to ____. A. Identify the client's root issues b. Detail insufficient alternatives c. Generalize and transfer learning d. Properly assess positive and negative consequences
Much of even your best helping work will be ineffective, if you fail to Identify the client's root issues. Option A.
To effectively provide help and support to someone, it is crucial to identify the client's root issues. Understanding the underlying problems and challenges allows for targeted interventions and solutions, leading to more effective outcomes.
Identifying the client's root issues involves going beyond surface-level symptoms and exploring the underlying causes and drivers of their situation. It requires active listening, empathy, and a thorough assessment of their circumstances.
By delving deeper into the core problems, it becomes possible to address the underlying issues that contribute to their challenges.
Failure to identify the client's root issues can result in superficial or ineffective assistance. Treating only the symptoms or providing generic solutions may provide temporary relief but often fails to address the underlying causes. This can lead to a cycle of recurring problems or missed opportunities for meaningful change.
By properly identifying the root issues, a helper can tailor their approach to address the specific needs of the client. This may involve offering targeted strategies, interventions, or referrals to other professionals or resources.
It enables a more comprehensive understanding of the client's situation and facilitates the development of effective solutions that have a lasting impact.
In summary, to provide effective help, it is essential to identify the client's root issues. Doing so allows for a more accurate understanding of their challenges, enables targeted interventions, and increases the likelihood of positive and sustainable outcomes .SO Option A is correct.
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define consumer protection agency
Definition of Consumer Protection Agency (CPA)
CPA is the governmental regulatory authority entrusted with the protection of consumer rights and was established by virtue of the Consumer Protection Law No. 67 in 2006 and its Executive Regulations.
Last year, Jarod left a job that pays $80,000 to run his own bike-repair shop. Jarod's shop charges $65 for a repair, and last year the shop performed 4,000 repairs. Jarod's production costs for the year included rent, wages, and equipment. Jarod spent $60,000 on rent and $120,000 on wages for his employees. Jarod keeps whatever profit the shop earns but does not pay himself an official wage. Jarod used $25,000 of his savings to buy a machine for the business. His savings were earning an annual interest rate of 6 percent.
a. What is Jarod's annual accounting profit?
b. What is Jarod's annual economic profit?
c. Based on what you have found in parts a. and b., should Jarod continue running his bike-repair shop or quit to return to his former job?
His implicit cost outweighs his current profit.a. Annual accounting profitAnnual accounting profit is the amount that the company earns after subtracting all of its explicit costs. Explicit costs are those that can be easily measured and calculated.
Production costs, including wages, rent, and equipment, are examples of explicit costs.Annual accounting profit = Total Revenue - Explicit CostsTotal revenue = Total number of repairs × the price of each repair.
Total revenue = 4,000 × $65 = $260,000 Explicit cost = Rent + Wages Explicit cost = $60,000 + $120,000 = $180,000Annual accounting profit = $260,000 - $180,000 = $80,000.
Therefore, Jarod's annual accounting profit is $80,000.
b. Annual economic profit Annual economic profit considers both explicit and implicit costs. Implicit costs are those that are not included in the financial statements but have an opportunity cost in real life scenarios.
An opportunity cost is the cost of one action in terms of the best alternative action forgone.
Jarod's implicit cost is the earnings he gave up to start the bike-repair shop, which is $80,000. Total implicit cost = $80,000.
Annual economic profit = Total revenue - (explicit costs + implicit costs)Annual economic profit = $260,000 - ($180,000 + $80,000)Annual economic profit = $260,000 - $260,000
Annual economic profit = $0.Therefore, Jarod's annual economic profit is $0.
c. Based on what we have found, Jarod should return to his former job because he is earning no economic profit. He only earned $80,000 in accounting profit, which is less than he was making in his old job. Thus, his implicit cost outweighs his current profit.
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