Answer:
A) $61,700
B) Kristen's contributions ($3,500) to her employer's 401(k) plan cause the difference between Boxes 3 and 5, and Box 1 in Kristen's second W-2 Form.
Explanation:
A) Kristen's taxable wages = Box 1 of the first W-2 Form: $18,700, plus Box 1 of the second W-2 Form: $43,000. If the group term life insurance was larger than $50,000, Kristen should have reported the premiums as part of her taxable income, but since the amount is lower ($30,000) it is not taxed.
A useful economic model a. deals only with possibilities that actually occurred. b. will avoid conclusions that have public policy implications, because economists do not make value judgments. c. makes only realistic assumptions. d. may make some unrealistic assumptions in order to simplify a complex reality. g
Answer:
d. may make some unrealistic assumptions in order to simplify a complex reality
Explanation:
In economics, a model is a conceptual structure that represents economic procedures through a number of variables and a series of rational or quantitative interactions. The economic model is a simpler framework intended to demonstrate complex structures that is often mathematical.
Final answer:
A useful economic model often makes unrealistic assumptions to simplify complex realities, allowing economists to understand and predict economic behaviors. These simplifications are standard in economics and can provide relevant insights despite their lack of realism.
Explanation:
Within the realm of economics, a useful economic model may indeed make some unrealistic assumptions in order to simplify complex realities and analyze important economic relationships. While it's true that these assumptions are not realistic reflections of the real world, their purpose is to create a framework that allows economists to isolate and understand the behaviors and interactions that drive economic outcomes.
Economic models function as tools that help economists reason through problems by creating a more manageable version of reality. For example, models may assume perfect information, profit maximization, or rational choices to explore how agents are likely to behave under certain conditions. Critically, while the real world is more nuanced and uncertain, these simplifications can reveal insights that do bear relevance to more complex, real-life situations.
Therefore, the correct answer to the student's question is that a useful economic model d. may make some unrealistic assumptions in order to simplify a complex reality. This is acknowledged as a standard practice in economics, which seeks to understand how agents respond to changes and predict outcomes through the analysis of simplified representations of reality.
Alpaca Corporation had revenues of $280,000 in its first year of operations. The company has not collected on $18,600 of its sales and still owes $26,700 on $95,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $11,500 in salaries. Owners invested $29,000 in the business and $29,000 was borrowed on a five-year note. The company paid $4,200 in interest that was the amount owed for the year, and paid $5,400 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. Compute net income for the first year for Alpaca Corporation.
Answer:
$99,960
Explanation:
Gross margin:
= Revenue - Cost of goods sold
= $280,000 - $95,000
= $185,000
Profit before tax:
= Gross margin - salaries - insurance payment - Interest
= $185,000 - $11,500 - ($5,400 ÷ 2) - $4,200
= $166,600
Net Income:
= Profit before tax - Tax
= $166,600 - (40% × $166,600)
= $166,600 - $66,640
= $99,960
Note:
As there is no inventory on hand, so the whole merchandise is used as the Cost of Goods Sold.
Only half of 2-year payment of 6,800 is relevant for this year.
The net income for the first year for Alpaca Corporation is $126,714.29.
Explanation:To compute the net income for the first year, we need to consider the various revenues and expenses of the company. First, we calculate the net sales by subtracting the uncollected sales ($18,600) from the total revenues ($280,000). Net sales = $280,000 - $18,600 = $261,400. Next, we calculate the cost of goods sold (COGS) by subtracting the amount still owed on merchandise ($26,700) from the initial purchase cost ($95,000). COGS = $95,000 - $26,700 = $68,300.
Then, we deduct the COGS, salaries ($11,500), interest ($4,200), and income tax (40% of net income) from the net sales. Net income = Net sales - COGS - Salaries - Interest - (Income tax rate x Net income). Plugging in the values, we have:
Net income = $261,400 - $68,300 - $11,500 - $4,200 - (0.40 x Net income)
Simplifying the equation, we get:
Net income = $261,400 - $68,300 - $11,500 - $4,200 - 0.40 Net income
Combining like terms, we have:
1.40 Net income = $261,400 - $68,300 - $11,500 - $4,200
1.40 Net income = $177,400
Solving for Net income, we divide both sides by 1.40:
Net income = $177,400 / 1.40
Net income = $126,714.29
Therefore, the net income for the first year for Alpaca Corporation is $126,714.29.
A nation where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining, or oil production is called ____________. efficiency-driven economy factor-driven economy innovation-driven economy fast moving opportunity
Answer:
Factor-driven economy.
Explanation:
The factor-oriented economy can be defined as the first sector of economic development, which is based on the use of natural resources and unskilled labor. In this type of economy, the competitive advantage is based on the production of basic products, which are the source of production of this factor-oriented economy.
Generally, this first stage of economic development supports low wages compared to other economic stages.
Olympia Marketing has instituted new policies around misappropriation of assets, conflicts of interests, and kickbacks. Also with the local elections just around the corner, management sent out reminders about political contributions and confidentiality of company information. All of these policies can be found in Olympia Marketing’s
Answer: Code of Ethics
Explanation: Code of Ethics is a term used to describe a set of guildlines,rules or princess put in place by Organisations to ensure that it's members are guided accordingly.
It is adopted mainly by professional Organisations such Medical Doctors, Pharmacists, Engineer etc
Generally code of Ethics can be classified into five categories which includes INTEGRITY, CONFIDENTIALITY, OBJECTIVITY, PROFESSIONAL COMPETENCE AND PROFESSIONAL CONDUCT.These actions by Olympia marketing through which it instituted new policies to guide its personnel is CODE OF ETHICS.
Which of the following statements is true? a. Economic profits ignore implicit costs. b. Economic profits include implicit costs. c. Accounting profits include all of the opportunity costs. d. Economists consider sunk costs in their decision making
Answer:
Option (b) is correct.
Explanation:
Economic profit is the difference between total revenue and total costs. Total costs includes both implicit costs as well as explicit costs. Implicit costs refers to the opportunity cost that are associated with the choice of alternatives.
Accounting profits includes only explicit costs. Explicit costs are the costs which are incurred for operating a business.
The true statement is that economic profits include implicit costs. This differentiates economic profits from accounting profits, which do not include opportunity costs. Furthermore, sunk costs, which are costs that have already been incurred and cannot be recovered, are generally not considered by economists in decision making. The correct statement b.
Explanation:The statement b. Economic profits include implicit costs is the correct one. Economic profits are a measure of the profitability of a venture after accounting for both explicit and implicit costs. Explicit costs are direct monetary expenses for resources needed for production.
Implicit costs, on the other hand, are the opportunity costs of using resources already owned by the firm. They could be what the resources could be earning in their next best employment. This differentiates economic profits from accounting profits which only take into account explicit costs leaving out the opportunity costs (implicit costs).
Economists do not generally factor in sunk costs in decision making because they are costs that have already been incurred and cannot be recovered, hence they do not influence future business decisions. The correct statement b.
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Assume the probability of a pessimistic, most likely and optimistic state of nature is .25, .45 and .30, and the returns associated with those states of nature are 10%, 12%, and 16% for asset X. Based on the information, the expected return and standard deviation of return are: (MUST SHOW ALL WORK FOR CREDIT)
A) 12.0% and 4.0%
B) 12.7% and 2.3%
C)12.7% and 4.0%
D) 12.0% and 2.3%
E) none of the above
Answer:
E) none of the above
12.70% and 2.49% standard deviation
Explanation:
We multiply probability by the outcome to get the weighted amount, we add them and get the expected return.
probability outcome weighted
0.25 0.10 0.0250
0.45 0.12 0.0540
0.30 0.16 0.0480
expected return 0.1270
Now that we got the expected return at 12.7%
We now subtract the possible outcome with the expected return and square them:
(0.127-0.1)^2
(0.127-0.12)^2
(0.127-0.16)^2
Then we add them and divide by the sample which is 3
0.000622
²√ 0.000622 = 0.024944383
Final step, will be the square root which gives the standard deviation
of 2.49% = 0.024947
If a company that is in a 35 % tax bracket invests in assets that increase its depreciation expense by $ 562 per year, its change in cash flow is _________.
Enter your answer to the nearest $.01. Be sure to use a negative sign, if the answer is negative. Do not use $ or , signs in your answer.
Answer:
increase of 196.70 dollars
Explanation:
While the depreciation expense will not generate a cash outflow or inflow, the expense will impact the net income which determinates the incoem tax payable.
This change in the net income and therefore, the income tax will also change the cahsflow:
depreciation ( 1 - t ) = tax-shield
562 x 35% = 196.70
The increase in depreciation provides a 196.70 dollars tax shield which increases the cash flow generate for the year.
The middle of supply chain information systems (SCIS) framework is which of the following?
a. Enterprise resource planning.
b. Enterprise planning and monitoring.
c. Enterprise integration and administration.
d. Financial operations and reporting.
Answer:
The correct answer is letter "B": Enterprise planning and monitoring.
Explanation:
Information Systems impact the Supply Chain at planning and monitoring stages. Information Systems allow managers to analyze information about the flow of the supply chain and allows them to spot where improvement is necessary. Besides, it allows tracking production to maximize it. Decisions can be made upon the feed Information Systems provide.
Wen really did not want to work on Saturday. On Saturday morning his boss called and told him to report and Wen did. Wen's boss had just demonstrated: Select one: a. coercion b. social power c. muscle d. social control
Answer:
b. social power
Explanation:
Social power is exercised by an individual when such an individual holds a higher rank in a society.
In the given case, an employee was desirous of taking a leave on Saturday but his Boss asked him to report, whose direction he could not decline. Since the boss represents a higher social rank, his order could not be refused.
This is the case of Social Power, wherein an individual exercises considerable influence over another owing to his higher position in social ranks.
Due to marketing's success in business, what do management gurus think about marketing's role in a company?
Answer:
The correct answer is letter "C": that it's not just a function anymore.
Explanation:
Marketing has proved that it plays a key role in the success of a business. The way a company portraits its products to consumers impacts directly in the sales, then the better the advertisement the higher the revenue. Marketing is not perceived just as a function because of that. Technology and new means of communication have boosted this scenario since most goods and services are provided to consumers through mobile devices.
During its first year of operations, Connor Company paid $46,750 for direct materials and $19,500 in wages for production workers. Lease payments and utilities on the production facilities amounted to $8,500. General, selling, and administrative expenses were $9,500. The company produced 6,500 units and sold 5,500 units for $16.50 a unit. The average cost to produce one unit is which of the following amounts?a. $11.69
b. $10.10
c. $8.15
d. $12.56
Answer:
The average cost to produce one unit is $11.5
Explanation:
Total costs to produce 6,500 units of the company are calculated by following formula:
Total costs = Direct materials cost + Labor cost + Lease payments and utilities on the production facilities = $46,750 + $19,500 + $8,500 = $74,750
The company produced 6,500 units. The average cost to produce one unit = Total costs/6,500 = $74,750/6.500 = $11.5
Note: General, selling, and administrative expenses are not the cost to produce the product.
Elizabeth is marketing a new type of picture frame that she invented. She has developed a full identity for the product and wants to make sure that her design is protected before she takes it to market. She should seek a _____ for her product to grant it legal protection.
Answer:
Trademark.
Explanation:
Trademark is a type of intellectual property that involves use of a unique design to legally differentiate a product from others in the market. It shows a particular product belongs to a company.
Elizabeth should first of all get a trademark on her picture frames so that they will be legally protected from copying by others.
The following transactions occur for Badger Biking Company during the month of June: Provide services to customers on account for $35,000. Receive cash of $27,000 from customers in (a) above. Purchase bike equipment by signing a note with the bank for $20,000. Pay utilities of $3,500 for the current month. Analyze each transaction and indicate the amount of increases and decreases in the accounting equation
Answer:
Assets = Liabilities + Equity
1) services on account
+35,000 (A/R) + 35,000 Service revenue
2) collection of 27,000
-27,000 (A/R)
+27,000 (cash)
net effect of zero
3) acquisition of equipment through promissory note
+20,000 (equipment +20,000(note payable)
4) -3,500(cash) - 3,500 utlities expense
Explanation:
Asset will be affected when cash, equivalent of cash, or right or property than can be used to produce cashflow is acquired or used
Liabilities is affected whe nwe take debt like in #3
Equity when the company generated revenue or expenses.
It will also be affected when investment fro mowners are made.
You make sure that when you hire new people, you get input from each of the existing team members. If they are happy with new hire, they are more likely to make that person part of the team, and the team will sell more.Select the word or phrase that best complete the following sentences.Total quality management originated in ________a. Mexicob. Japanc. Russiad. United States
Answer:
The correct answer is letter "B": Japan.
Explanation:
Total quality management or TQM is an approach that aims to guide corporate success through employees' efficiency at work, based and providing on-demand products or services consumers are likely to be interested in. In the 70s and 80s, the U.S. and western European countries faced economic competition from the products offered from Japan that gave customers high-quality goods at reasonable costs.
In the _____ stage of the relationship development process, the owner of several retirement centers has agreed that Fashion Seal Uniforms will be the only supplier of uniforms for her employees. Andy, the salesperson for Fashion Seal, has agreed to make some modifications in the uniforms to suit the needs of the retirement center personnel. Both parties view this as a long-term relationship built on mutual trust.
Answer:
The correct word for the blank space is: commitment.
Explanation:
In the relationship development process, the commitment stage implies a compromise between the seller and the supplier engaging each other more in their operations. The relationship develops to help each other with their objectives and usually causes special treats -such as discounts- between the two characters.
"Ivana just finished a training program sponsored by her employer that dramatically increased her computer skills. She feels that she should stay with the company for at least a couple more years to repay them for investing in her skill development. What type of commitment is Ivana likely experiencing?"
Answer:
As Ivana has just finished a training program sponsored by her employer that has dramatically increased her computer skills. She feels that she should stay with the company for at least a couple more years to repay them for investing in her skill development. Ivana is experiencing Normative Commitment for her organisation.
Explanation:
As Ivana has just finished a training program sponsored by her employer that has dramatically increased her computer skills. She feels that she should stay with the company for at least a couple more years to repay them for investing in her skill development. She is experiencing Normative Commitment for her organisation. She feels that she ought it to her company. Her company has added some value in her, she has spend time here and her company has made her learnt new skills, therefore, she should return something valuable to her company in the form of her services. Ivana feels herself obliged and consequently want to continue working for the same company so she can repay them something back.
Ivana is experiencing normative commitment, where she feels obliged to stay with her employer due to the investment they made in her skill development.
Ivana is likely experiencing what is referred to as normative commitment. Normative commitment refers to an employee's feeling of obligation to remain with an organization. In this case, Ivana feels obliged to stay with her employer because they invested in her skill development, which demonstrates a form of reciprocation. This form of commitment could greatly benefit companies as it promotes loyalty and reduces employee turnover.
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9) Nemec Manufacturing uses job costing. In May, material requisitions were $44,000 ($39,000 of these were direct materials), and raw material purchases were $60,000. The end of month balance in raw materials inventory was $24,300. What was the beginning raw materials inventory balance
Answer:
The beginning raw materials inventory balance was $3,300.
Explanation:
Ending balance of Raw Material Inventory = Opening balance of raw material inventory + Purchases for the period - Material requisitions
$24,300 = Opening balance of raw material inventory + $60,000 - $39,000
$24,300 = Opening balance of raw material inventory + $21,000
Opening balance of raw material inventory = $24,300 - $21,000
Opening balance of raw material inventory = $3,300
The beginning raw materials inventory balance was $3,300.
he Bradley Corporation produces a product with the following costs as of July 1, 20X1: Material $5 per unit Labor 3 per unit Overhead 1 per unit Beginning inventory at these costs on July 1 was 3,200 units. From July 1 to December 1, 20X1, Bradley Corporation produced 12,400 units. These units had a material cost of $4, labor of $6, and overhead of $4 per unit. Bradley uses LIFO inventory accounting.
a. Assuming that Bradley sold 16,800 units during the last six months of the year at $13 each, what is its gross profit?
b. ending inventory value?
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
July 1, 20X1:
Material $5 per unit
Labor $3 per unit
Overhead $1 per unit
Total cost= $9
Beginning inventory= 3,200 units.
December 1, 20X1:
Bradley Corporation produced 12,400 units.
These units had a material cost of $4, labor of $6, and overhead of $4 per unit.
Total cost= $14
A) Units sold= 16,800 units
Selling price= $13
The total inventory is= 3,200+12,400= 15,600
We will assume that production levels with sales.
Sales= 16,800*13= $218,400
Cost of goods sold= (3,200*9 + 13,600*14)= (219,200)
Gross profit= (800)
B) We will assume the ending inventory is 300 units:
Inventory= 300*14= $4,200
What is the present worth of $1,095.50, payable in 20 years, if the discount rate (4%), compounds annually?
Answer:
$500
Explanation:
The expression that describes the present net worth of an investment (P) given its future value (FV) at an annual rate (r) for a period of n years, compounded annually is:
[tex]P=\frac{FV}{(1+r)^n}[/tex]
If the future value of an investment is $1,095.50 after 20 years at a rate of 4% per year, the present value (P) is:
[tex]P=\frac{1,095.50}{(1+0.04)^{20}}\\P= \$499.97[/tex]
The present worth of this investment is roughly $500.
David purchases a yacht solely for the purpose of entertaining real estate clients. He wishes to position himself as a high-end real estate salesperson specializing in very expensive residences and uses the yacht only for business entertainment. During 2018, his expenses for maintaining and operating the yacht, including depreciation, were $28,000. In addition, he incurred $9,000 of catering expenses for meals he provided to business clients on the yacht. What is David's tax deduction in 2018?Explain.
Answer:
The tax deductions for the year are as follows:
Depreciation $28000
Catering expenses (50%) $4500
Total deductions $32500
Explanation:
Depreciation is deductible in full as it is an operating expense for the year 2018.
Catering expenses deduction is limited to 50% maximum ,while the remaining 50% is not an allowable deduction for tax purposes.
Globalization is:
a. making HR planning increasingly a government responsibility.
b. simplifying HR planning.
c. having an imponderable impact on ahr planning.
d. making HR planning more critical and complex.
Answer:
d) making HR planning more critical and complex.
Explanation:
Globalization refers to the way of interacting with different people around the world in order to get healthy relationship for business purpose. Communication technologies become a helping hand to make globalization so easy and efficient.
Increase Globalization increase the practice of human Resource, in order to maintain the workforce in a more systematic way thus globalization make human resource planning more complex.
You determine that a robot welder is malfunctioning on your assembly line because final inspection has revealed a loose connection in every weld made by the robot. What specific management skill have you displayed?
1) Job knowledge2) Information processing3) Problem analysis4) Initiative
Explanation:
Option 1: Job Knowledge
This option is closely associated with the question but not right. Only the job knowledge cannot solve the issue. You need an additional skill of problem solving to fix or identify the issue.
Option 2: Information processing
Processing the information is not the required skill to analyze the given problem.
Option 3: Problem analysis
Here there is a loose connection inspected. So inspection is one kind of analysis of problem. This skill is important for the given situation.
Option 4: Initiative
Initiative is one of the soft skill but this skill will not be used in analysis of a problem.
On June 7, Pixer Co. sells $1500 of merchandise to Jasmine Co. on account. Jasmine Co. pays for this merchandise on June 21. a. Prepare the entry on Pixer's books to record the sale. b. Prepare the entry on Pixer's books to record the receipt of payment.
Answer:
a.
Debit Accounts Receivable $1,500
Credit Sales $1,500
b.
Debit Cash $1,500
Credit Accounts Receivable $1,500
Explanation:
On June 7, Pixer Co. sells $1500 of merchandise to Jasmine Co. on account.
Pixer's books records the sale by the entry:
Debit Accounts Receivable $1,500
Credit Sales $1,500
On June 21, Jasmine Co. pays for this merchandise. Pixer's books records the receipt of payment by the entry:
Debit Cash $1,500
Credit Accounts Receivable $1,500
Final answer:
On June 7, Pixer Co. makes a credit sale of $1500, recorded as an increase in Accounts Receivable and Sales Revenue. Upon receipt of payment on June 21, they debit Cash and credit Accounts Receivable for $1500.
Explanation:
Accounting Entries for Pixer Co.
For the scenario provided where Pixer Co. sells merchandise to Jasmine Co.:
a. Entry to Record the Sale on Pixer's Books
June 7: When Pixer Co. sells $1500 of merchandise on account, the entry is:
Accounts Receivable..........$1500Sales Revenue.........$1500This entry indicates that Pixer Co. has made a credit sale, increasing its Accounts Receivable and recognizing the Sales Revenue at the same time.
b. Entry to Record the Receipt of Payment
June 21: When Jasmine Co. pays for the merchandise, the entry is:
Cash........................$1500Accounts Receivable.........$1500This entry shows that Pixer Co. has received cash, which increases its Cash account, and decreases the Accounts Receivable since the customer's debt has been paid.
Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $23,000 bill from her accountant for consulting services related to her small business. Reese can pay the $23,000 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 Isabel pays the $34,000 bill in December?
b) What is the after-tax cost if Isabel pays the $34,000 bill in January?
Answer:
a)13,600
b) 13,391.8
Explanation:
a. 20,000 * 32% = 6400
20,000 - 6400 = 13,600
b. 20,000* 37% = 7400
Present Value of Tax = $7400 x 0.893 (Discount Factor, 1 Year, 12 percent) = $6608.2
After-tax income =income before tax - Present Value Tax
20,000 - 6608.2 = 13,391.8
__ Last week Stephanie lost her job as a copy-writer at an advertising agency after a corporate merger deal. She has spent the past few days browsing the help-wanted ads, but has not found anything that matches her skills. Stephanie is best classified as
Answer:
frictionally unemployed.
Explanation:
Frictional unemployment -
It refers to the situation , when a person is jobless and is searching for a new job in the upcoming healthy economy , is referred to as frictional unemployment.
The person might have left the job intentionally or unintentionally , but the main motto is to find a job which suits the person better .
Hence , from the given scenario of the question,
Stephanie is classified as a frictionally unemployed .
Jane works 8:00 a.m. - 5:00 p.m. on Monday, and 10:00 a.m. - 7:00 p.m. on Tuesday to accommodate her family situation. Jane is making use of _______. Select one: a. Flextime b. Telework c. Job sharing d. Workplace accommodation
Answer:
a. Flextime
Explanation:
Flextime, is an arrangement between company and employee in which the employees are able to choose their starting and finishing working time, given that they fulfil the required number of hours. This arrangement is beneficial because it allows employees to better accommodate their personal life and work. Therefore, Jane is making use of a. Flextime.
Final answer:
Jane is utilizing flextime to accommodate her family situation by adjusting her work hours while still being present at the workplace during required core hours.
Explanation:
Jane is making use of flextime, which usually involves a requirement of core hours spent in the workplace around which the employee may schedule their arrival and departure from work to meet family demands. Unlike telecommuting, where employees work remotely from home at different parts of the day and set their own hours, flextime involves being present at the workplace during certain core hours while having the flexibility to adjust start and end times. Employers use these workplace arrangements to help manage and reduce work-family conflict, thus improving job satisfaction for their employees.
A marketing consultant uses the job costing system and has a pre-determined overhead rate of $15 per direct labor hour. This amount is based on an estimated overhead of $30,000 and an average time of 5.0 hours per job. Job #521 incurred direct material costs of $50 and 6 direct labor hours costing of $75 per hour. The total cost of job #521 is_.
A. $155.
B. $215.
C. $565.
D. $590
Answer:
D. $590
Explanation:
Predetermined overhead rate = $15 per labour hour
Direct Material cost = $50
Labor rate = $75 per hour
Number of Direct labor hour = 6
Direct labor cost = 6 x 75 = $450
Overhead applied cost = Predetermined overhead rate x Direct labor hours
Overhead applied cost = 15 x 6 = $90
Total cost = $50 + $450 + $90
Total cost = $590
So, the correct answer is D. $590
Nevada Company experienced the following events during its first year of operations: Acquired an additional $1,000 cash from the issue of common stock. Paid $2,400 cash for utilities expense. Paid a $1,500 cash dividend to the stockholders. Provided additional services for $6,000 cash. Purchased additional land for $2,500 cash. The market value of the land was determined to be $24,000 at the end of the accounting period. Acquired $16,000 cash from the issue of common stock. Paid $3,500 cash for salary expense. Borrowed $10,000 cash from New South Bank. Paid $6,000 cash to purchase land. Provided boarding services for $10,500 cash. Required Classify each event as an asset source, use, or exchange transaction or as not applicable (NA).
Answer:
Event Classification
1. Asset Source
2. Asset Use
3. Asset Use
4. Asset Source
5. Asset Exchange
6. Not applicable (NA)
7. Asset Source
8. Asset Use
9. Asset Source
10. Asset Exchange
11. Asset Source
Explanation:
An asset is an economic resources controlled by an entity from which future economic benefits are expected.
In recording asset, business events can result in asset source,asset use and asset exchange. Asset source is the acquisition of asset, asset use is consumption of existing asset and asset exchange is the transfer of asset from one source to another.
The Nevada Company's activities can be classified into asset source (issuing of common stock and providing services), asset use (paying expenses and dividends), and exchange transactions (purchasing land). The market value determination of the land does not apply to this classification.
Explanation:The events experienced by the Nevada Company during its first year of operations can be classified as follows: The acquisition of cash from the issue of common stock (both $1,000 and $16,000) and borrowing $10,000 from New South Bank are asset source transactions. Providing services for $6,000 cash and providing boarding services for $10,500 cash are also asset source transactions. The payment of $2,400 for utilities expense, $1,500 cash dividend to stockholders, $3,500 for salary expense, and $6,000 for the purchase of land are asset use transactions. The purchase of additional land for $2,500 is an exchange transaction. The market value of the land being determined to be $24,000 at the end of the accounting period is not applicable to the classification of asset source, use, or exchange.
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Which of the following accounts would not appear on a balance sheet? options: a. Unearned Revenue. b. Salaries Payable. c. Interest Revenue. d. Retained Earnings.
Answer:
The correct answer is letter "A": Unearned Revenue.
Explanation:
Unearned Revenue is accrued payments obtained by a company or individual for products and services not yet made or delivered by the company. Other terms for unearned revenue are advanced payments or deferred revenue. According to the Generally Accepted Accounting Principles (GAAP) the revenue process must be complete before revenue becomes an asset. This requires both delivery of the service or product and received-up payment.
Unearned revenue is recorded as a liability on the Balance Sheet because it represents a debt owed to a customer.
An economy produces only 1,000,000 computers valued at $2,000 each. Of these, 200,000 are sold to consumers, 300,000 are sold to businesses, 300,000 are sold to the government, and 100,000 are sold abroad. No computers are imported. The unsold computers at the end of the year are held in inventory by the computer manufacturers. What is the value of the investment component of GDP?a. $0.9 billionb. $1.0 billionc. $1.8 billiond. $2.0 billion
Answer:
$2.0 billion
Explanation:
The Gross Domestic Product is the monetary value of all goods and services that is produced within the boundary of a country in a specific time.
The formula for GDP is
GDP= consumption + government spending + investment + (export - import)
200,000 are sold to consumers
300,000 are sold to businesses
300,000 are sold to the government
100,000 are sold abroad (exported)
100,000 is kept as inventory
GDP= {200,000 + 300,000+ 300,000+ 100,000+ (100,000- 0)}* $2,000
GDP= 1,000,000*2000
GDP= $2 billion