Answer:
Real GDP (2014 price) = $ 250
Explanation:
GDP is the total value (PxQ) of goods & services, produced by an economy during a period of time. Real GDP is the value at constant base year prices.
Given [2015] : Fish Quantity = 5 , Computer Chip Quantity = 20
Base Year [2014] price : Fish = $10 , Computer Chip = $10
2015 Real GDP at 2014 base year price = Price 2014 x Quantity 2015
= (Fish PXQ) + (Computer Chip PXQ)
= (10 x 5) + (10 x 20)
= 50 + 200
= $ 250
The Real GDP in 2015 (at 2014 prices) is calculated by multiplying the quantities of goods produced in 2015 by their 2014 prices, resulting in a total of $250.
The student's question involves calculating the Real GDP in 2015 using 2014 prices. To find the Real GDP for 2015, we use the quantities of goods produced in 2015 and multiply them by the prices from 2014. For fish, in 2015, 5 pounds were produced, and the 2014 price was $10 per pound. For computer chips, 20 were produced in 2015, with the 2014 price being $10 each.
The Real GDP in 2015 at 2014 prices can be calculated as follows:
Real GDP from fish = Quantity in 2015 imes Price in 2014 = 5 pounds imes $10/pound = $50
Real GDP from computer chips = Quantity in 2015 imes Price in 2014 = 20 chips imes $10/chip = $200
Adding these values together gives:
Real GDP in 2015 (at 2014 prices) = $50 + $200 = $250 dollars.
Allocating product cost between cost of goods sold and ending inventory
Jones Co. started the year with nno inventory. During the year, it purchased two identical inventory items at different times. The first purchase cost $1,060 and the other $ 1,380. Jones sold one of the itmes during the year.
Based on this information, how much product cost would be allocated to cost of goods sold and ending inventory on the year-end financial statements,assuming use of
A.FIFO?
B.LIFO?
C. Weighted average
Explanation:
The computation of the product cost under each inventory method is shown below:
A. FIFO
Cost of goods sold = $1,060
Ending inventory = $1,380
B. LIFO
Cost of goods sold = $1,380
Ending inventory = $1,060
C. Weighted average
Weighted average cost per unit = ($1,060 + $1,380) ÷ 2 = $1,220
Cost of goods sold = ($1,060 + $1,380) ÷ 2 = $1,220
Ending inventory = ($1,060 + $1,380) ÷ 2 = $1,220
Agreement and disagreement among economists
Suppose that Lorenzo, an economist from a research institute in Texas, and Neha, an economist from a nonprofit organization on the West Coast, are arguing over government intervention. The following dialogue shows an excerpt from their debate:
Neha: The usefulness of government intervention in the economy is a long-standing issue that economists continue to debate.
Lorenzo: I feel that government involvement in the economy should be reduced because government programs cause more harm than good.
Neha: While I do agree that government programs can be inefficient, I really think they are necessary to help the less fortunate.
The disagreement between these economists is most likely due to differences
A.) in perception versus reality.
B.) in value.
C.) in scientific judgment.
Despite their differences, with which proposition are two economists chosen at random most likely to agree?
A.) Lawyers make up an excessive percentage of elected officials.
B.) Tariffs and import quotas generally reduce economic welfare.
C.) Minimum wage laws do more to harm low-skilled workers than help them.
Answer:
The correct answers are:
B.) in value.
B.) Tariffs and import quotas generally reduce economic welfare.
Explanation:
In the first case, both economists disagree on a value issue.
One of them believes that government programs cause more harm than good, while the other believes that it helps the less fortunate, this is an example that the difference is in value, over whom the government helps.
Despite their differences, the proposition in wich this two economists are most likely to agree is Tariffs and import quotas generally reduce economic welfare.
Because both believe, at some point, that government participation in the economy is ineffective.
One believes that it is totally inefficient and another believes that it is only partially, therefore both would agree on this.
The disagreement between the economists is likely due to value differences rather than perception or scientific judgment. The statement most economists would likely agree on is that tariffs and import quotas generally reduce economic welfare.
Explanation:The disagreement between economists Lorenzo and Neha is most likely due to differences in value, as they express divergent beliefs about the role and efficacy of government intervention in the economy. In terms of a proposition on which two economists chosen at random are most likely to agree, it would probably be B.) Tariffs and import quotas generally reduce economic welfare. This point of agreement is less about personal belief systems and more about economic theory, which most economists abide by. Many economists agree that tariffs and import quotas can lead to a drop in economic welfare because these measures can distort trade and create inefficiencies.
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Porters Inc. issued a 120-day note in the amount of $160,000 on 12/14/12 with an annual rate of 9%. What amount of interest has accrued as of 12/31/12?
Answer:
The amount of interest has accrued as of 12/31/12: $720
Explanation:
Porters Inc. issued a 120-day note in the amount of $160,000 on 12/14/12 with an annual rate of 9%.
The amount of interest Porters Inc. pays per year = $160,000 x 9% = $14,400
Assuming 1 year period to calculated interest has 360 days.
From 12/14/12 to 12/31/12, Porters Inc. had issued the note for 18 days.
The amount of interest has accrued on 12/31/12:
$14,400/360 x 18 = $720
Final answer:
To calculate the accrued interest of $160,000 at a 9% annual interest rate for 17 days, the calculation yields an interest amount of $680 as of 12/31/12.
Explanation:
The question involves calculating the amount of interest accrued on a note payable by Porters Inc.
To find out how much interest has accumulated as of 12/31/12, we first need to calculate the number of days from the issue date (12/14/12) to the date of interest calculation (12/31/12), which is 17 days. The formula for the interest accrued on a note is: Interest = Principal × Rate × Time. Here, the note's principal is $160,000, the annual interest rate is 9%, and the time in years for the 17 days of interest (since there are 360 days in the banking year) is 17/360.
To calculate the accrued interest: $160,000 × 9% × (17/360) = $680. Therefore, as of 12/31/12, the accrued interest is $680.
International business is a broad and potentially complex field of study and practice. There are many different definitions and concepts that are critical to this field, and this activity will emphasize several of the most critical ones that are used throughout the text. Understanding these terms and concepts will help students, managers and policy makers to better understand what international business is, how it differs from domestic business? why it is becoming increasingly important? and how international business has evolved throughout history?
Explanation:
International business can be defined as the expansion of the activities of a certain company, such as its goods and services, technologies, resources, ideas and other variables beyond national borders.
Internationalizing business activities is increasingly common in a globalized economic society, where companies seek to expand to locations that present opportunities to gain market and facilities for the implementation of the company. Many countries have favorable conditions to encourage the entry of foreign companies, such as red tape, government agreements, cheap labor, tax cuts, etc.
One factor that contributed to the internationalization strategy becoming a common practice by large companies was technological innovations, which made it possible to shorten logistical distances by means of efficient and faster means of transport, and another example was also the creation of the internet, which streamlined communication by making processes faster and easier.
Suppose there is a major technological advance in the production of a good that causes production costs to fall. If demand for the product is relatively inelastic, what will happen in the market? Price will relatively decrease greater than the increase in quantity. Price and quantity will change by the same amount. Price will relatively decrease less than the increase in quantity.
Answer:
major key
Explanation:
the decrease of the price and quantity
There is a major technological advance in the production of a good that causes production costs to fall. If demand for the product is relatively inelastic, will happen in the market is the price will relatively decrease less than the increase in quantity. Thus, option (c) is correct.
What is production?The term production refers to the process of things can be created. The production completes with help of labor, employees, and machinery. The production process as raw material converted into finished goods. The production of the goods and the services. The production was the increased the economic wealth.
According to the technological advance in the production of the goods are the large causes production costs to fall. The price was the downfall on the product is relatively inelastic the increases the quantity. The quantity of the product is the increases and the price is the low.
As a result, the significance of the production are the aforementioned. Therefore, option (c) is correct.
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Consider the market for 7-eleven slurpees. In a market economy only those consumers who are willing and able to pay for Slurpees get Slurpees, is this fair? What about the market for health care?
Answer:
When we take Slurpees, these are labelled under luxury. This is not the basic need of any human being to drink Slurpees in order to quench his or her thirst. This can't be categorized as a basic, primary or biological need. Water is considered very for for this purpose and we even can't survive biologically without water, whereas, we can very happily without Slurpees. More specifically, we can live definite more happy and healthy without drinking these carbonated drinks which are not good for any human's health, and this facts have been proven by medical science in much finer details. These drinks, sometimes, can kill humans as well, damaging their stomach directly. If this was the basic need, then organizations might have offered it instead of giving employees salary and monetary rewards.
Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. Lucia's labor The $400 Kenji spends to purchase tax services from A-Plus Accountants The $325 per week Kenji earns working for Spotless Car Wash
Answer:
The 325 per week kenji earns working for spotless car wash.
The 400 kenji spends to purchase tax services from A- plus accountants.
Explanation:
This are examples of the way households interact with business firm and this interaction can be inward flow or outward flow depending on the need.
House hold and business firms are the two basic types of economic agents in the market economy.
This interaction can be documented in a flow diagram to measure flow of money, goods and services.
The elements that represent a flow from a firm to a household include:
the $425 per week Andrew earns working for Spotless Car Wash
the car wash Beth receives
The Household income flow is a diagram that express the circular flow of income from a firm to the household in the economy.
Hence, the elements that represent a flow from a firm to a household include the $425 per week Andrew earns working for Spotless Car Wash and the car wash Beth receives.
Therefore, the Option A and D is correct.
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Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $31,000 bill from her accountant for consulting services related to her small business. Reese can pay the $31,000 bill anytime before January 30 of next year without penalty. Assume Reese's marginal tax rate is 32 percent this year and 35 percent next year, and that she can earn an after-tax rate of return of 11 percent on her investments. a. What is the after-tax cost if she pays the $31,000 bill in December?b. What is the after-tax cost if she pays the $31,000 bill in January?
Answer:
Explanation:
a)
If Reese pays in December,
31,000*0.32(marginal tax rate)=9920
After tax cost = Pretax cost - Present value of tax saving = 31,000-9,920 = 21,080
b)
If Reese pays in January,
31,000*0.35 = 10,850
After tax cost = Pretax cost - Present value of tax saving = 31,000-10,850(discount factor 1 year, 11%) = 31,000 - 10,850* 0.9009
= 31,000 - 9,774.765= 21,225.235
Bob bought some land costing $15,390. Today, that same land is valued at $44,817. How long has Bob owned this land if the price of land has been increasing at 5 percent per year?
Answer:
Bob bought the land 21 years and 332 days ago.
Explanation:
Giving the following information:
Bob bought some land costing $15,390. Today, that same land is valued at $44,817.
To calculate the number of years passed we need to use a variation of the Future Value formula:
FV=PV*(1+i)^n
Isolating n:
n=[ln(FV/PV)]/ln(1+i)
n= [ln(44,817/15,390) / ln(1.05)]
n= 21.91
0.91*365= 332
Bob bought the land 21 years and 332 days ago.
Scott Confectionery sells its Stack-o-Choc candy bar for $0.60. The variable cost per unit for the candy bar is $0.34; total fixed costs are $171,000.
a. What is the contribution margin per unit for the Stack -O- Choc candy bar?
b. What is the contribution margin ratio for the Stack -O-Choc candy bar?
C. What is the breakdown point in units? In sales dollars?
D. If an increase in chocalate prices causes the variable cost per unit to increase to $0.55, what will happen to the breakeven point?
Answer:
(i) $0.26
(ii) 43.33%
(iii) 657,692.31 units
(iv) 3,420,000
Explanation:
Given that,
Selling price = $0.60
Variable cost per unit = $0.34
Total fixed costs = $171,000
(i) contribution margin per unit = Selling price - Variable cost per unit
= $0.60 - $0.34
= $0.26
(ii) contribution margin ratio:
= (contribution margin ÷ Selling price) × 100
= ($0.26 ÷ $0.6) × 100
= 43.33%
(iii) Break-even point in units:
= Total Fixed cost ÷ contribution margin
= (171,000 ÷ 0.26)
= 657,692.31 units
(iv) If an increase in chocolate prices causes the variable cost per unit to increase to $0.55.
contribution margin per unit = Selling price - Variable cost per unit
= $0.60 - $0.55
= $0.05
New Break-even point in units:
= Total Fixed cost ÷ contribution margin
= (171,000 ÷ 0.05)
= 3,420,000 units
Therefore, there is an increase in the break-even units or more units have to be sold to cover the variable and fixed cost.
a. The contribution margin per unit for Stack-O-Choc candy bars is $0.26.
b. The contribution margin ratio is approximately 43.33%.
c. The breakdown point is approximately 657,692 units or $394,615.38 in sales dollars.
d. If the variable cost per unit increases to $0.55, the new breakeven point will be 3,420,000 units, indicating a higher breakeven level.
a. The contribution margin per unit for the Stack-O-Choc candy bar can be calculated as follows:
Contribution Margin per Unit = Selling Price per Unit - Variable Cost per Unit Contribution Margin per Unit = $0.60 - $0.34 = $0.26
b. The contribution margin ratio (CM ratio) is the contribution margin per unit divided by the selling price per unit, expressed as a percentage:
CM Ratio = (Contribution Margin per Unit / Selling Price per Unit) x 100%
CM Ratio = ($0.26 / $0.60) x 100% ≈ 43.33%
c. The breakdown point in units can be calculated using the following formula:
Breakdown Point in Units = Total Fixed Costs / Contribution Margin per Unit Breakdown Point in Units = $171,000 / $0.26 ≈ 657,692 units
To find the breakdown point in sales dollars, you can multiply the breakdown point in units by the selling price per unit:
Breakdown Point in Sales Dollars = Breakdown Point in Units x Selling Price per Unit
Breakdown Point in Sales Dollars = 657,692 units x $0.60 ≈ $394,615.38
d. If the variable cost per unit increases to $0.55 due to higher chocolate prices, you can calculate the new breakeven point using the updated variable cost:
New Breakdown Point in Units = Total Fixed Costs / Updated Contribution Margin per Unit
New Breakdown Point in Units = $171,000 / ($0.60 - $0.55) = $171,000 / $0.05 = 3,420,000 units
So, if the variable cost per unit increases to $0.55, the new breakeven point in units will be 3,420,000 units. This increase in variable cost will result in a higher breakeven point.
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Debt Book Equity Market Equity Operating Income Interest Expense Firm A 500 300 400 100 50 Firm B 80 35 40 8 7 1. What is the market debt-to-equity ratio of each firm? 2. What is the book debt-to-equity ratio of each firm? 3. What is the interest coverage ratio of each firm? 4. Which firm will have more difficulty meeting its debt obligations?
Answer:
Data for Question
Debt Book Equity Market Equity Operating Income Interest Expense
Firm A
500 300 400 100 50
Firm B
80 35 40 8 7
1.
Market debt-to-equity ratio = Debt of Firm / Market Equity
Firm A = 500 /400 = 1.25
Firm B = 80 / 40 = 2
2.
Book debt-to-equity ratio = Debt of Firm / Book Equity
Firm A = 500 /300 = 1.67
Firm B = 80 / 35 = 2.29
3.
Interest coverage ratio = Operating Income / Interest Expense
Firm A = 100 /50 = 2
Firm B = 8 / 7 = 1.14
4.
Firm B will have more difficulty meeting its debt obligations because it has higher debt equity ratio and lower interest coverage ratio than Firm A.
Assume December 31 is a Wednesday. Weld-Rite Company’s wages are paid every Friday, and the weekly payroll (for five days) amounts to $6,000. To record the correct amount of expense for December, Weld-Rite makes the following entry on December 31: __________________________.
Answer:
Please see explanation
Explanation:
The following journal entry shall be recorded in the accounts of Weld-Rite Company in respect of salaries expense to be accrued as at December 31:
Debit Credit
Salaries expense $3,600
(6,000/5*3)
Salaries payable $3,600
Weld-Rite needs to record the wages incurred in December which accounts for $3,600, regardless of the actual payment date. This is done by dividing the weekly wages by 5 (to get daily wages) and then multiplying by the number of workdays in December.
Explanation:The business subject of this question is the journal entry of expenses for payroll. In accrual accounting, Weld-Rite needs to recognize the expenses as they are incurred, not when they are paid. Given that December 31 is a Wednesday and assuming Weld-Rite's workweek begins on Monday, the company had incurred three workdays' worth of wages by the end of December. To calculate the correct amount to record on December 31:
First, find the daily payroll by dividing the weekly amount by 5. In this case, $6,000 / 5 = $1,200 per day.Then, multiply the daily amount by the three workdays in December. In this case, $1,200 x 3 = $3,600.
Then, the journal entry on December 31 will be:
Debit Wage Expense $3,600
Credit Wage Payable $3,600
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Treasury bonds paying an 7.4% coupon rate with semiannual payments currently sell at par value.
What coupon rate would they have to pay in order to sell at par if they paid their coupons annually?
(Hint: What is the effective annual yield on the bond?)
(Round your answer to 2 decimal places.)
Answer:
The formula for effective annual yield is as under:
Effective Annual Yield = (1+r/n)^n -1
Here we have r which is 7.4%, n is 2 for semi-annually. By putting values in the above equation we have:
Effective Annual Yield = (1+7.4%/2)^2 -1 = 0.075369 which is almost 7.54%
The effective annual yield on the bond is 7.54% and for the bond which would be paid annually would have coupon rate of 7.54% if the company desires to issue the bond at par.
Assuming periodic inventory procedure, what effect would an understatement of ending inventory have on the different items on the financial statements?
Answer:
The understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.
Explanation:
The relationship between the elements of inventory in a financial statement is as shown below,
Opening balance + purchases - cost of goods sold = closing balance
As such, the understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.
The understatement of the ending inventory will overstate the cost of goods sold and directly it will understate the gross margin and net income.
The periodic inventory system is the method of recording the inventory on a periodic basis. In this case, the inventory is recorded at the end of the financial period only. Thus, the chances of understatement or overstatement of the inventory can be high.
The amount of ending inventory affects the amount of cost of goods sold, gross profit, and net income. When the ending inventory is understated that is the amount is written less than the actual amount then it will show the higher cost of goods sold, lower gross margin, and lower net income.
These changes would be seen in the trading, and profit and loss financial statement.
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J Bryant, Ltd. is a local coat retailer. The store’s accountant prepared the following income statement for the month ended January 31.Sales revenue $779,000 Cost of goods sold 334,500 Gross margin 444,500 Less operating expenses Selling expense$24,720 Administrative expense 51,100 75,820 Net operating income $368,680 Bryant sells its coats for $250 each. Selling expenses consist of fixed costs plus a commission of $6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales.Contribution Format Income Statement Total Per Unit Sales 779,000.00250.00Less: Variable Expenses Cost of Goods Sold334,500.00 107.35Selling Expense20,254.00 6.50Administrative Expenses38,950.00 12.50Total Variable Expenses 393,704.00126.35Contribution Margin 385,296.00123.65Less: Fixed Expenses Selling Expense4,466.00 Administrative Expenses12,150.00 Total Fixed Expenses 16,616.00 Operating Income 368,680.00 QUESTION:1. Operating Expenses = __________x + $_______________2. If 3100 coats are sold next month, what is the expected total contribution margin? (Round answer to 0 decimal places, e.g. 45,000.)
Answer:
1: $75,820
2: $442,215.
Explanation:
1: The operating expenses can be described as normal or routine expense of a business. The operating expense for the J Bryant, Ltd For the month ended January 31 will be $75,820. This figure includes Selling expense and Administrative Expense which is $24,720 and $ 51,100.
2: The contribution margin is determined by subtracting Total Variable cost from Total Revenue. When the company sells 3,100 units next month then Total Sales is $775,000 (3,100 units * $250 per unit) and Total Variable Cost is $332,785 (3,100 * $107.35 per unit). To calculate total contribution margin we subtract Total variable cost from Total sales which gives us $442,215 ($775,000 - $332,785).
Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) stockholders' equity: a. Accounts payable b. Accounts receivable c. Fees earned d. Supplies e. Supplies expense f. Utilities expense
Answer and explanation:
An asset is a resource with economic value. Assets can be tangible, such as equipment and land or intangible including things like a brand, a chemical formula or property rights.
Liabilities are all those responsibilities firms incur as a result of the operations of the business. Liabilities include notes, accounts, salaries, and interest payable.
Stockholders' Equity represents the equity stakeholders own of a company. They could be common stock, preferred stock, retained earnings or expenses incurred during the period. Thus:
A) Accounts payable (Liability)
B) Accounts receivable (Asset)
C) Fees earned (Stockholder's equity)
D) Supplies (Assets)
E) Supplies expense (Stockholder's equity)
F) Utilities expense (Stockholder's equity)
a. Accounts payable is a liability,
b. accounts receivable and supplies are assets,
c. fees earned is associated with stockholders' equity,
d. supplies are assets,
e. both supplies expense and f. utilities expense are operating expenses that indirectly affect equity.
Explanation:In the context of business and accounting:
Accounts payable is a liability. It represents the money a company owes to someone else or its creditors. For example, when a company purchases supplies from a vendor on credit, it creates an account payable.Accounts receivable is an asset. It represents the money owed to a company by its customers who have bought goods or services on credit. For instance, if a company sells a product to a customer on credit, it creates an account receivable.Fees earned is associated with stockholders' equity. It is revenue that increases the equity, assuming that no liabilities have been created in the process of earning these fees.Supplies are considered as an asset, as they represent items that can be used for producing goods or services in the future.Supplies expense and Utilities expense are neither assets, liabilities, nor directly related to stockholders' equity. They are operating expenses that are deducted from revenues in the calculation of net income, which indirectly affects stockholders' equity by reducing it.Learn more about Business Accounting here:https://brainly.com/question/36268454
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January 1, Biden, Inc.'s WorkminusinminusProcess Inventory account had a balance of $ 30 comma 800. During the year, $ 58 comma 500 of direct materials was placed into production. Manufacturing wages incurred amounted to $ 85 comma 000, of which $ 66 comma 000 were for direct labor. Manufacturing overhead is allocated on the basis of 120% of direct labor cost. Actual manufacturing overhead was $ 91 comma 200. Jobs costing $ 220 comma 700 were completed during the year. What is the December 31 balance of WorkminusinminusProcess Inventory? A. $ 13 comma 800 B. $ 234 comma 500 C. $ 30 comma 800 D. $ 155 comma 300
Answer:
Option (A) is correct.
Explanation:
Given that,
Direct materials = $58,500
Direct labor = $66,000
Manufacturing overhead = 120% of direct labor cost
Opening WIP = $30,800
Cost of goods manufactured:
= Direct materials + Direct labor + Manufacturing overhead
= $58,500 + $66,000 + 120% of direct labor cost
= $58,500 + $66,000 + (120% × $66,000)
= $58,500 + $66,000 + $79,200
= $203,700
December 31 balance of Work-in-Process Inventory:
= Opening WIP + cost of goods manufactured - cost of goods completed
= $30,800 + $203,700 - $220,700
= $13,800
Final answer:
The December 31 balance of Work-in-Process Inventory is calculated by adding the starting inventory to the total manufacturing costs incurred and then subtracting the cost of completed jobs. The ending balance is $13,800.
Explanation:
To calculate the December 31 balance of Work-in-Process (WIP) Inventory, we need to account for all manufacturing costs added during the year. We begin with the starting WIP inventory balance. Then we add the costs of direct materials, direct labor, and manufacturing overhead to calculate the total manufacturing costs incurred for the year. Finally, we subtract the cost of jobs completed during the year from this total to find the ending WIP inventory balance.
Starting WIP Inventory: $30,800
Direct Materials Used: $58,500
Direct Labor: $66,000
Manufacturing Overhead (allocated at 120% of direct labor cost): $66,000 imes 120% = $79,200
Total Manufacturing Costs Incurred: $30,800 + $58,500 + $66,000 + $79,200 = $234,500
Completed Jobs Cost: $220,700
Ending WIP Inventory: $234,500 - $220,700 = $13,800
Therefore, the December 31 balance of Work-in-Process Inventory is $13,800.
Bad debts analysis-Allowance account On January 1, 2019, the balance in Kubera Co.'s Allowance for Bad Debts account was $25,160. During the year, a total of $65,700 of delinquent accounts receivable was written off as bad debts. The unadjusted balance in the Allowance for Bad Debts account at December 31, 2019, was $30,440. As the result of a comprehensive analysis, it is determined that the December 31, 2019, balance of the Allowance for Bad Debts account should be $19,000. Show the adjustment required in the horizontal model or in journal entry format.
Answer:
Debit Allowance for bad debt account $11,440
Credit Accounts receivables $11,440
Being entries to recognized bad debts previously provided for.
Explanation:
The allowance for bad debt is an account used to estimate how much of the receivables recorded by an entity may become uncollectible. Once determined, the company would post a debit entry to the bad debt account and a credit entry to the allowance for bad debts account.
Given that;
Opening balance in the Allowance for Bad Debts account was $25,160 and during the year, a total of $65,700 of delinquent accounts receivable was written off as bad debts while unadjusted balance in the Allowance for Bad Debts account at December 31, 2019, was $30,440. This means that
$25,160 + x = $30,440
x = $30,440 - $25,160 = $5,280
where x was the net addition to the allowance for bad debt during the year.
If it is determined that the December 31, 2019, balance of the Allowance for Bad Debts account should be $19,000, then the difference between the unadjusted balance and the determined balance will be posted. This difference is
= $30,440 - $19,000
= $11,440
In the journal entries format, adjustments required would be
Debit Allowance for bad debt account $11,440
Credit Accounts receivables $11,440
Being entries to recognized bad debts previously provided for.
Kubera Co. needs to adjust its Allowance for Bad Debts account from a balance of $30,440 to $19,000. This will require a debit of $11,440 to the account, likely paired with a credit to the Bad Debts Expense account.
Explanation:The Allowance for Bad Debts account represents the amount that Kubera Co. anticipates will not be collected from its accounts receivable. Over the course of the year, Kubera Co. wrote off $65,700 in bad debts, and the unadjusted balance at the end of the year was $30,440. However, after a comprehensive analysis, it was determined that the year-end balance should be adjusted to $19,000.
Let's go ahead and make that adjustment in the form of a journal entry:
If the Allowance for Bad Debts account has a higher year-end balance ($30,440) than what is proposed after analysis ($19,000), an entry to decrease the account balance will be needed. That means a debit of $11,440 ($30,440 - $19,000 = $11,440) to the Allowance for Bad Debts account, which could be coupled with a credit to Bad Debts Expense, another income statement account, etc.The resulting journal entry would be:
Debit Allowance for Bad Debts $11,440Credit Bad Debts Expense $11,440Learn more about Accounting journal entry here:https://brainly.com/question/32466059
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Use the price of apples and oranges to calculate a price index called the Apple and Oranges Price Index (AOPI). Apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $0.50 in 2009. If 10 apples and 5 oranges were purchased in 2002, and 5 apples and 10 oranges were purchased in 2009, the AOPI for 2009, using 2002 as the base year, is:
Answer:
2009 AOPI is 125
Explanation:
The question is to determine the Apples and Oranges Price Index (AOPI) for 2009 with 2002 as the base year
First step: For the base year 2002, the goods were bundled as 10 apples and 5 oranges
Therefore, we calculate the cost of these two in 2002 as follows
= 10 apples x $0.5 + 5 oranges x $1 = $10
Second step: For the 2009, the goods were 5 apples and 10 oranges however, since we are using 2002 as the base year, we will calculate the cost of this same 10 aples and 5 oranges using the 2009 value.
= 10 apples x $1 + 5 oranges x $0.25
= $12.5
Step 3: Based on these calculations with 2002 as the base year
The consumer price index = (12.5/10) x 100
The AOPI (Apple and Oranges Price Index) for 2009 assuming that of 2002 is 100 will be 125
The actual behavior of the person who occupies a status is termed Select one: a. role performance. b. master status. c. role set. d. duties.
Answer:
The correct answer is letter "A": role performance.
Explanation:
In sociology, the role of a person is described as the expected behavior of an individual according to the status possessed. Then, the real behavior those individuals have according to their status is called the role performance. The individuals' status is their social position in their corresponding communities.
On the balance sheet, owner's equity is a.equal to the total of assets and liabilities b.subtracted from liabilities and the net amount is equal to assets c.added to assets and the two are equal to liabilities d.added to liabilities and the two are equal to assets
Answer:
d.added to liabilities and the two are equal to assets.
Explanation:
The accounting equation is also called the balance sheet equation and states the a companie's assets is a sum of the total liabilities and owner's equity.
This is the basis of double entry accounting, where every transaction has an equal amount of debits and credits.
Mathematically
Asset= Liabilities + Owner Equity
Owner's equity, as part of a balance sheet, is added to liabilities, and the sum is equal to the total assets of the company. This reflects the fundamental accounting equation: Assets = Liabilities + Owner's Equity.
Explanation:In the context of a balance sheet, owner's equity is d. added to liabilities and the two are equal to assets. In simple terms, this means the sum of the owner's equity and the company's liabilities should equal the total assets of the company. The balance sheet is basically a financial statement that follows the equation: Assets = Liabilities + Owner's Equity. This basic principle of accounting shows the relationship between a company's resources (assets), financial obligations (liabilities), and the owner's share (equity).
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Suppose that Greece and Austria both produce jeans and stained glass. Greece's opportunity cost of producing a pane of stained glass is 5 pairs of jeans while Austria's opportunity cost of producing a pane of stained glass is 10 pairs of jeans. By comparing the opportunity cost of producing stained glass in the two countries, you can tell thatGreece has a comparative advantage in the production of stained glass andAustria has a comparative advantage in the production of jeans. Suppose that Greece and Austria consider trading stained glass and jeans with each other. Greece can gain from specialization and trade as long as it receives more than5 pairs of jeans for each pane of stained glass it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than1/10 pane of stained glass for each pair of jeans it exports to Greece. Based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of jeans) would allow both Austria and Greece to gain from trade? Check all that apply. a. 9 pairs of jeans per pane of stained glass. b. 3 pairs of jeans per pane of stained glass. c. 1 pair of jeans per pane of stained glass. d. 8 pairs of jeans per pane of stained glass
Answer:
a. 9 pairs of jeans per pane of stained glass.
d. 8 pairs of jeans per pane of stained glass.
Explanation:
Greece and Austria both produce jeans and stained glass. Greece opportunity cost is 5 pairs of jeans per stained glass and Austria opportunity cost 10 pairs jeans per stained glass. Greece has comparative advantage in producing stained glass whereas Austria has comparative advantage in producing Jeans.
If these both countries agree to trade with each other, the trade would be beneficial if Greece receives more than 5 pairs of jeans per pane of stained glass. If the trade took place at more than 5 pairs of jeans for per pane of stained glass it will be beneficial for both countries. Option a and option d has more than 5 pairs of jeans. Option b has 3 pairs of jeans so the trade is not beneficial for either countries and option c has 1 pair of jeans per pane of stained glass which also a trade not suitable to both countries.
Greece has a comparative advantage in stained glass production and Austria has a comparative advantage in jeans production. Both countries can gain from trade if the price of stained glass is 3 pairs of jeans per pane.
Explanation:Greece has a comparative advantage in the production of stained glass and Austria has a comparative advantage in the production of jeans. In order for both countries to gain from trade, the price of stained glass in terms of jeans should be between 5 and 10 pairs of jeans per pane of stained glass. Options a, c, and d do not fall within this range. Therefore, the correct answer is option b: 3 pairs of jeans per pane of stained glass.
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Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. The costs of overfishing and other overly intensive uses of resources Expenditures on federal highways The variety of goods available to consumers The value produced by doing your own laundry
Answer:
The variety of goods available to consumers: GDP only looks a at the value of goods that are produced within the country, it does not take into account the variety available in the market to consumers.
The value produced by doing your own laundry: GDP does not measure non-market activities, so personal jobs like doing your own laundry is not accounted for.
Explanation:
The branch of economics which studies the behavior of entire economies and policies that affect the economy as a whole is called A. macroeconomics. B. microeconomics. C. public economics. D. normative economics.
Answer:
A. Macroeconomics
Explanation:
Macroeconomics is the branch of economics which studies the behavior of entire economies and policies that affect the economy as a whole. In other words, macroeconomics is a branch of economics concerned with the level of employment, savings, investment, national income and general price level of an economy. General equilibrium forms the base of macroeconomics. Its objectives are full employment, economic growth and price stability.
Ray works as an accountant for a non-profit organization. Ray got his current position after volunteering at a few of the non-profit’s events and becoming friends with some of its employees. Which method did Ray use to develop his professional network?
Ray used Strategic method to develop his professional network.
Explanation:
Ray works as an accountant at Non profit organisation.There is always important to know a lot of people from that industry.Ray started volunteering in the event, Event are most important place.It helps in socializing with people getting to know from diversity.A conversation said by other people helps people get into the business.This works with allot of organization to help make friends and socialize.Joe is confused about refundable versus nonrefundable credits. His preparer explains nonrefundable credits can reduce tax liability to zero but never add to his refund. Which of the following credits is a nonrefundable credit? a) Child and dependent care credit b) Additional child tax credit c) Earned income credit d) Excess Social Security withheld
Answer:
a) Child and dependent care credit
Explanation:
there are two types of credit tax one is refundable and other one is non-refundable and Child and dependent care credit which is non refundable , this basis on income level and earning of individual. This is type of credit which actually relief anyone who is spend more on their child care or souse care i-e disbale spouse or ill child.
You want to buy your dream car which will cost you $5700. If you could invest your entire savings of $4000 at an annual interest of10%, how long (in years rounded to two decimal places) would you have to wait until you have accumulated enough money to buy the car
Answer:
It will take 3 years and 263 days to collect $5,700
Explanation:
Giving the following information:
The car cost $5700. You could invest your entire savings of $4000 at an annual interest of 10%.
Based on the Future Value formula we can calculate the required number of years to achieve the objective:
FV= PV*(1+i)^n
Isolating n:
n=[ln(FV/PV)]/ln(1+i)
n= [ln(5,700/4,000)/ln(1+0.10)]
n= 3.72
0.72*365= 263 days
It will take 3 years and 263 days to collect $5,700
If the buyer has a clear and unambiguous description or specification and wants to find out which supplier can deliver the best value when and where needed, he or she will typically issue a:
Final answer:
A buyer looking for the best supplier value for a product or service with a clear description would issue an RFP. To counter asymmetric information and imperfect information, sellers can use warranties, certifications, and customer testimonials to reassure potential buyers.
Explanation:
When a buyer has a clear and unambiguous description or specification and is looking to find a supplier that can deliver the best value when and where needed, they would typically issue a Request for Proposal (RFP). This document invites suppliers to bid on supplying goods or services and usually includes a detailed description of requirements, criteria for selection, and how the buyer will evaluate bids.
To address asymmetric information, a situation where one party has more information about the quality of the item for sale than the other, sellers might provide warranties, seek certifications, gather customer testimonials, or offer free trials to reassure buyers. These actions can reduce the uncertainty caused by imperfect information, where the qualities of the product or service are not fully known by the buyer or the seller.
Ratio Calculations Assume the following relationships for the Caulder Corp.: Sales/Total assets 2.2x Return on assets (ROA) 5% Return on equity (ROE) 13% Calculate Caulder's profit margin assuming the firm uses only debt and common equity, so total assets equal total invested capital. Round your answer to two decimal places. % Calculate Caulder's debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Round your answer to two decimal places. %
Answer:
2.27% ; 61.54%
Explanation:
Given that,
Sales/Total assets = 2.2x
Return on assets (ROA) = 5%
Return on equity (ROE) = 13%
Therefore,
Return on assets = Profit margin × Assets turnover
0.05 = Profit margin × 2.2
Profit margin = 0.05 ÷ 2.2
Profit margin = 0.0227 or 2.27%
Percent of total assets is from equity:
= Return on assets ÷ Return on equity
= 0.05 ÷ 0.13
= 0.3846 or 38.46%
Hence, the debt is as follows:
Debt = Assets - equity
= 1 - 0.3846
= 0.6154 or 61.54%
Tustin's Catering began with cash of $15,000. Tustin then bought supplies for $2,300 on account. Separately, Tustin paid $4,700 for equipment.
Required:
a. How much in total assets does Tustin have?
b. How much in liabilities does Tustin owe?
Tustin's Catering has total assets of $22,000 after the initial transactions, which includes cash, equipment, and supplies. The total liabilities amount to $2,300, which is the cost of the supplies bought on account.
Explanation:The question asks for the total assets and liabilities Tustin's Catering has after the initial transactions. To calculate total assets, we start with the initial cash of $15,000, add the cost of equipment which is $4,700, and include the supplies bought on account for $2,300. Thus, the total assets amount to $15,000 + $4,700 + $2,300 = $22,000. Regarding liabilities, since the supplies were bought on account, this means Tustin owes money for these supplies, which is the amount spent on them, $2,300.
a. Total Assets:
Cash: $15,000
Supplies on Account: $2,300
Equipment: $4,700
Total Assets: $15,000 + $2,300 + $4,700 = $21,000
b. Total Liabilities:
Supplies on Account: $2,300
Total Liabilities: $2,300