Answer:
Year end Closing journal Entries:
Dr. Cr.
1.
Sales revenue $880,000
Income Summary $880,000
2.
Income Summary $808,000
Cost of goods sold $580,000
Salaries expense $155,000
Rent expense $49,000
Interest expense $24,000
Retained earning is an equity account and it is also a permanent account which will not close.
In the AS-AD model, cyclical unemployment occurs when: a. aggregate supply increases b. the economy is not at a short run equilibrium in the AS-AD model actual DP falls below potential real GDP in the equilibrium of the AD and short-run AS curves
Answer:
b. the economy is not at a short run equilibrium in the AS-AD model actual DP falls below potential real GDP in the equilibrium of the AD and short-run AS curves.
Explanation:
The aggregate demand/aggregate supply, or AD/AS, model is one of the fundamental tools in economics because it provides an overall framework for bringing economic factors together.
We can examine long-run economic growth using the AD/AS model, but the factors that determine the speed of this long-term economic growth rate do not appear directly.
Cyclical unemployment is relatively large in the AD/AS framework when the equilibrium is substantially below potential GDP and relatively small when the equilibrium is near potential GDP.
The natural rate of unemployment—as determined by the labor market institutions of the economy—is built into potential GDP.
Pressures for inflation to rise or fall are shown in the AD/AS framework when the movement from one equilibrium to another causes the price level to rise or to fall.
The company employs a single employee who works all five weekdays and is paid on the following Monday. The employee works the entire week ending on Friday, December 30. The employee earns $800 per day.\ Complete the necessary adjusting entry by selecting the account names and dollar amounts from the drop-down menus.
Answer:
Explanation:
The question says to complete the necessary adjusting entry
What is an adjusting entry:
An adjusting entry represent an accounting entry passed usually at the end of the accounting year to ensure that accounts following the matching principle. An adjusting entry can further be passed to calculate and bring in respective account balances at the end of the period.
Therefore, the required adjusting entry is as follows:
Date Particulars Debit Credit
Dec 30 Salaries expense $4,000
Salaries payable a/c $4,000
being the record of salaries accrued at the end of the year
Note: Since a day is $800 and there are 5 days, the accrual is $800 x 5 = $4,000
Anthony has arrived five minutes early for his sales call with a buying group from one of his accounts. He is the only one in the room. Before the meeting gets underway, Anthony should remember to _____.
Answer:
The correct answer is letter "A": Greet each group member as they arrive.
Explanation:
If arriving before prospective clients in a business meeting, the salesperson must show his manner and greet every possible customer on their way in. This will let them have an idea of what type of person they are dealing with and could represent a big opportunity to "break the ice" starting small talk.
General Mills conducted focus groups to collect and interpret data to gain insights into customer preferences and loyalty. Which best describes the process General Mills has used?
A. Determining the research design
B. Reporting research findings to managers
C. Customer insights
D. Analyzing and interpreting the data
E. Defining the research problem
Answer:
The correct answer is (C)
Explanation:
It is very important to understand what consumers want and what they expect from a brand. In order to understand costumer’s preferences and loyalty, various techniques are used from questionnaires to interview. General mills conducted focus groups and estimated the results to better understand customer’s insight by asking various questions related to preferences, taste and expectations.
An interior solution to a consumer's utility maximization problem implies A. consuming a positive amount of one good and a negative amount of the other good. B. consuming negative amounts of all goods. C. consuming more than an optimal amount of at least one good. D. consuming less than optimal amounts of all goods.
Answer:
NOT AVAILABLE
But an interior solution to a consumer's utility maximization problem implies CONSUMING A POSITIVE AMOUNT OF ALL GOODS.
A company recently announced that it would be going public. The usual suspects, Morgan Stanley, JPMorgan Chase, and Goldman Sachs will be the lead underwriters. The value of the company has been estimated to range from a low of $5billion to a high of $100billion, with $45billion being the most likely value. If there is a 20% chance that the price will be at the low end, a 10% chance that the price will be at the high end, and a 70% chance that the price will be in the middle, what value should the owner expect the company to price at?a. 66.0.
b. 49.5.
c. 48.0.
d. 38.5.
Answer:
42.5
Explanation:
The computation of the expected value is shown below:
= Low price range × chance percentage + high price range × chance percentage + most likely price range × chance percentage
= $5 billion × 20% + $100 billion × 10% + $45 billion × 70%
= $1 + $10 + $31.5
= 42.5
Basically we multiplied each one with its chance percentage
A pharmaceutical company announces that it has received Federal Drug Administration approval for a new allergy drug that completely prevents hay fever. The consensus analyst forecast for the company’s earnings per share (EPS) is $4.50, but insiders know that, with this new drug, earnings will increase and drive the EPS to $5.00.What will happen when the company releases its next earnings report?
Answer and Explanation:
There will be some volatility in the stock price when the earnings report is released though it is difficult to determine the impact on the stock price.
We can conclude that, the prices will eventually adjust to the announcement.
Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1 comma 000 tires per day with the following resources: Labor: 425 hours per day @ $12.50 per hour Raw Material: 21 comma 000 pounds per day @ $1.50 per pound Energy: $5 comma 000 per day Capital: $10 comma 000 per day a) Labor productivity per labor hour for these tires = nothing tires/labor hour (round your response to two decimal places).
Answer:
Labor productivity= 2.35 tires per hour of work
Explanation:
Giving the following information:
Fok makes 1,000 tires per day with the following resources:
Labor: 425 hours per day at $12.50 per hour.
The labor productivity is calculated based on the number of units made divided by the amounts of hours required:
Labor productivity= 1,000/425= 2.35 tires per hour of work
Scarborough Faire Herb Farm is a small company specializing in selling organic fresh herbs, teas, and herbal crafts. Currently, basil is their top selling herb, with $41,000 in sales last year. Parsley is their second biggest seller with $30,000 in sales. Total sales last year were $160,000 and Scarborough Faire forecasts sales to increase by 13% this year. If total sales increases by the percentage forecasted, what will total sales be this year
Answer:
Sales This year will be $180,800
Explanation:
Total Sales Last Year = $160,000
Growth rate of sales = 13%
Sales This year = Total Sales last year x (1+Growth rate)
Sales This year = $160,000 x (1+13%)
Sales This year = $160,000 x (1+0.13)
Sales This year = $160,000 x 1.13
Sales This year = $180,800
To find the forecasted increase in sales for the Scarborough Faire Herb Farm, we multiply the current sales of $160,000 by 1.13 (which represents the 13% increase). This results in an expected total sales of $180,800 for this year.
Explanation:In this problem, the forecasted increase in sales for Scarborough Faire Herb Farm needs to be calculated. They currently have total sales of $160,000, which are forecasted to increase by 13% this year. To find out the total sales for this year, we will multiply the current total sales ($160,000) by 1.13 (1 represents the current sales and 0.13 represents the 13% increase). This gives us: $160,000 * 1.13 = $180,800. Therefore, if sales increase by the forecasted percentage, total sales for the Scarborough Faire Herb Farm this year will be $180,800.
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Assume Fiona is willing to pay $8 for a pizza cutter. Tim also wants one, but is only willing to pay $6 for one. At a pizza baker's convention, Fiona buys the last pizza cutter at the market price just before Tim can buy it. Tim contacts the convention organizers and complains about missing out on the last pizza cutter. The organizers refund Fiona for the pizza cutter and allow Tim to buy it at the market price. What happens as a result of the organizers refund
Answer
The question is incomplete; assuming that the market price is $5.
The answer will be consumer surplus decreases.
Explanation:
Consumer surplus is a measure of consumer welfare. It is measured as the difference between what customers are willing and able to pay for a good and the price they actually pay.
Fiona originally bought the pizza cutter at the market price. When the organizers refunded Fiona and let Tim buy it at the market price, they interfered with the market mechanism. If Tim is now willing to pay more than $6, it could be due to the Endowment Effect.
Explanation:In this scenario, the market price determined who buys the pizza cutter. If the market price was more than $6 and less than $8, it makes sense Fiona bought it first. However, by arranging a refund and letting Tim buy it, the organizers interfere with the market mechanism. Interestingly, if Tim is allowed to buy at the market price which is more than what he is willing to pay ($6), it might be assumed that he values it more now. This might be an example of the Endowment Effect, where people value things more once they own them.
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You can calculate the return on equity of any investment that consists of one cash inflow and outflow using the zero coupon bond approach.
O True O False
Answer:
TRUE
Explanation:
The poiunt is, we are going to discount the cash at the end and compare with the cash at the beginning to know if there is a positive present value.
[tex]\frac{C_e}{(1+r)^n} =C_b[/tex]
Having the cash values and know the time lapse between them, we solve for how much the actual rate of the investment is. Know that we can determinate if it fullfil our minimum rate of return.
lpine Company solicited bids from several contractors to construct an addition to its office building. The lowest bid received was for $1,200,000. Alpine decided to construct the addition itself at a cost of $1,100,000. What amount should be recorded in the building account?
Answer:
The amount recorded in the building account will be $1,100,000.
Explanation:
Alpine company has asked for bids from various contractor to construct additions in its office building. many contractors replied with a bid offer among which the lowest was $1,200,000. Alpine decided to construct additions itself at a lower cost than the bid received. The amount which is recorded in office building account will be $1,100,000 at which the company has agreed to construct. The accounts of a company should reflect actual expenditures so the amount of $1,100,000 will be actual expenditure of construction which Alpine Company has determined.
The amount that should be recorded in the building account is $1,100,000.
Building is a fixed asset which are use for business operation by companies or organizations so as to earn or generate profit for their business.
Based on the information given we were told that the company construct the building at a cost of $1,100,000.
Which means that the building cost of the amount of $1,100,000 should be recorded in the building account as this is the actual amount that was spent to construct an addition to the building.
Inconclusion the amount that should be recorded in the building account is $1,100,000.
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A stockbroker has kept a daily record of the value of a particular stock over the years and finds that prices of the stock form a normal distribution with a mean of $8.52 with a standard deviation of $2.38. The percentile rank of a price of $13.87 is
Answer:
[tex]P(X<13.87) = P(Z<2.25) =0.9877[/tex]
So then we can conclude that the value of $13.87 would be approximately the 98th percentile
Explanation:
Previous concepts
Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".
The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".
Solution to the problem
Let X the random variable that represent the prices of the stock of a population, and for this case we know the distribution for X is given by:
[tex]X \sim N(8.52,2.38)[/tex]
Where [tex]\mu=8.52[/tex] and [tex]\sigma=2.38[/tex]
If we want to find the percentile for 13.87. We are interested on this probability
[tex]P(X<13.87)[/tex]
And the best way to solve this problem is using the normal standard distribution and the z score given by:
[tex]z=\frac{x-\mu}{\sigma}[/tex]
If we apply this formula to our probability we got this:[tex]P(X<13.87)=P(\frac{X-\mu}{\sigma}<\frac{13.87-\mu}{\sigma})=P(Z<\frac{13.87-8.52}{2.38})=P(z<2.25)[/tex]And we can find this probability using the normal standard table or excel and we got:
[tex] P(X<13.87) = P(Z<2.25) =0.9877[/tex]
So then we can conclude that the value of $13.87 would be approximately the 98th percentile
Managers need to be aware of exit and neglect behaviors in response to dissatisfaction because they impose a negative influence on the organization and its employees. These behaviors are initiated and felt by the employee rather than imposed by management. In addition to these behaviors, which are generally perceived to have a negative effect, voice and loyalty are also possible responses. Again, these are behaviors initiated by the employee. With this information, what can a HR Director do to maximize the possibility the dissatisfied employees will respond with voice or loyalty or both, rather than an exit or neglect response?
A. Incorporate appropriate selection, orientation, and training for management personnel to ensure that they observe the corporate culture of inclusivity and involvement that encourages the desired organizational citizenship behavior.
B. All the tactics listed in this question could be very successful in eliciting a positive voice or loyalty response in the event they become dissatisfied in the workplace.
C. Incorporate appropriate orientation and training for incoming employees so they feel comfortable offering suggestions for improvement.
D. Actively monitor employee opinion and attitude on a regular basis to keep a finger on the pulse of the workforce.
E. Incorporate this knowledge into the recruitment and selection process to choose employees inclined to respond in a favorable way. In other words, this is about selecting employees who are a good match.
Answer:
The correct answer is letter "B": All the tactics listed in this question could be very successful in eliciting a positive voice or loyalty response in the event they become dissatisfied in the workplace.
Explanation:
Human Resources (HR) Directors must promote the training to new and existing employees because in that way they help workers to develop their professional skills and increase their efficiency which is likely to increase the productivity of the firm. The HR department must keep track of the performance of the trained employees to find out what their evolution is and check possible improvement spots. Besides, the HR department must make sure the organization is culturally diverse enough to ensure the firm is befitting from the experience or workers from different cultures.
To foster voice or loyalty responses in a dissatisfied workforce, a HR Director should provide appropriate orientation and training, incorporate this knowledge into the recruitment process, and proactively monitor employee opinions and attitudes.
Explanation:In order to maximize the likelihood that dissatisfied employees will respond with voice or loyalty instead of exit or neglect behaviors, a HR Director can utilize several strategies. First, they can incorporate appropriate selection, orientation, and training for both incoming employees and management personnel. This ensures a culture of involvement and inclusivity that encourages desired organizational citizenship behavior. Managers and employees are thus empowered to offer suggestions for improvement.
Second, the HR Director can incorporate this knowledge into the recruitment and selection process, essentially selecting employees who match the organization's culture and values and are more inclined to show voice or loyalty, even during dissatisfaction.
Lastly, a proactive approach can be initiating regular check-ins to monitor employee opinion and attitude. This gives the HR Director a current overview of the work environment and allows for timely intervention if dissatisfaction starts to develop.
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Some companies today are using social media to learn more about the other companies in their industry. _______such as this creates an ethical dilemma because our laws and values surrounding intelligence gathering are not clear cut.
Competitive intelligence creates an ethical dilemma because our laws and values surrounding intelligence gathering are not clear-cut.
What is competitive intelligence?Competitive intelligence also referred as corporate intelligence. It refers to the quality to collect, examine, and use information stored on competitors, customers, and other market causes that contribute to a competitive advantage of the business.
It refers to the systematic collection and analysis of information from multiple sources, and a coordinated CI program.
Competitive intelligence is the act of realising a company's industry and its rivals.
Netflix is a big example of executing the right bbased on competitor intelligence.
Therefore, Competitive intelligence creates an ethical dilemma.
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Final answer:
The ethical implications of using social media for intelligence gathering in business are discussed, focusing on privacy, free speech, and the responsibility of social media companies.
Explanation:
Social media is the subject of the question, and the ethical implications of using it for intelligence gathering in the business world are being discussed.
This raises concerns about privacy protections, free speech, and the responsibility of social media companies in monitoring and controlling information shared on their platforms.
As technology advances, the influence of social media on politics, elections, and public policy becomes a key point of debate among policymakers and citizens.
The three industrialized nations that do not provide paid maternity leave by law are Select one: a. Canada, Italy, and Japan. b. Australia, Swaziland, and the United States. c. South Africa, Italy, and Sweden. d. South Africa, Canada, and the United States.
Answer:
b. Australia, Swaziland, and the United States.
Explanation:
The three industrialized nations that do not provide paid maternity leave by law are Select one: Australia, Swaziland, and the United States.
The United States has been said to be the stingiest of all developed nations as it leads the way as the richest developed country but still don't guarantee paid maternity leave.
Most others including Canada, mandates paid time off to women after they give birth.
Jasper Company provided the following information for last year: Costs Amount Sales in units 280,000 Selling price $12 Direct materials $180,000 Direct labor $505,000 Manufacturing overhead $110,000 Selling expense $437,000 Administrative expense $854,000 Last year, beginning and ending inventories of work in process and finished goods equal zero. Required: 1. Calculate the sales revenue for last year. 2. Prepare an income statement for Jasper for last year. Refer to the list below for the exact wording of a label or an amount description within your income statement. Labels Add For the Last Year Less Amount Descriptions Administrative expense Cost of goods manufactured Cost of goods sold Gross profit Operating income Operating loss Sales revenue Selling expense
Answer:
1) = $3,360,000
2) $1,274,000
Explanation:
Question 1: Prepare the Sales Revenue for Jasper Company as follows:
Sales Units x Selling price per unit = Sales Revenue
= 280,000 units x $12 = $3,360,000
Based on the Sales Revenue computed, the Income Statement for Jasper Company for the Previous year can now be computed
Question 2: Compute the Income Statement
Description Amount Amount
Sales Revenue $3,360,000
Less Costs
Direct materials $180,000
Direct Labour $505,000
Manufacturing Overhead $110,000
Selling Expenses $437,000
Administrative Expenses $854,000
Total costs ($2,086,000)
Net Income $1,274,000
Investments, Inc., began by issuing common stock for cash of $260,000. The company immediately purchased computer equipment on account for $116,000. 1. The following T-accounts of SeventhSeventh Investments, Inc. have been opened for you: Cash, Computer Equipment, Accounts Payable, and Common Stock. Record the first two transactions of the business directly in the T-accounts without using a journal. 2. Show that total debits equal total credits.
Answer:
If we add up the debit we got: 260,000 + 116,000 = 376,000
adding the credit we also get the same amount:
260,000 + 116,000 = 376,000
the accounting equation will be:
Assets 376,000 = Liabilities 116,000 + Equity 260,000
Explanation:
CASH
DEBIT CREDIT
260,000
EQUIPMENT
DEBIT CREDIT
116,000
ACCOUNTS PAYABLE
DEBIT CREDIT
116,000
COMMON STOCK
DBEIT CREDIT
260,000
To record the first two transactions of Seventh Investments, Inc. in the T-accounts, debit the Cash and Computer Equipment accounts and credit the Common Stock and Accounts Payable accounts. To show that total debits equal total credits, calculate the balance of each account and compare the sum of the debit balances with the sum of the credit balances.
Explanation:A T-account is a tool used in accounting to separate a firm's assets from its liabilities. In the case of Seventh Investments, Inc., the T-accounts would be used to record the company's transactions. The first transaction is the issuance of common stock for cash, which would be recorded by debiting the Common Stock account and crediting the Cash account. The second transaction is the purchase of computer equipment on account, which would be recorded by debiting the Computer Equipment account and crediting the Accounts Payable account.
Cash T-account:
Debit (+) $260,000
Common Stock T-account:
Credit (-) $260,000
Computer Equipment T-account:
Debit (+) $116,000
Accounts Payable T-account:
Credit (-) $116,000
To ensure that total debits equal total credits, you need to calculate the balance of each account. If the sum of the debit balances equals the sum of the credit balances, then the total debits equal the total credits.
The Samsons are trying to determine whether they can claim their 22-year-old adopted son, Jason, as a dependent. Jason is currently a full-time student at an out-of-state university. Jason lived in his parents’ home for three months of the year and he was away at school for the rest of the year. He received $9,500 in scholarships this year for his outstanding academic performance and earned $4,800 of income working a part-time job during the year. The Samsons paid a total of $5,000 to support Jason while he was away at college. Jason used the scholarship, the earnings from the part-time job, and the money from the Samsons as his only sources of support.
a. Can the Samsons claim Jason as their dependent?
Yes
No
b.Assume the original facts except that Jason’s grandparents, not the Samsons, provided him with the $5,000 worth of support. Can the Samsons (Jason’s parents) claim Jason as their dependent?
Yes
No
c. Assume the original facts except substitute Jason’s grandparents for his parents. Determine whether Jason’s grandparents can claim Jason as a dependent.
Yes
No
d. Assume the original facts except that Jason earned $5,500 while working part-time and used this amount for his support. Can the Samsons claim Jason as their dependent?
Yes
No
What is the overall change in cash resulting from: $300 increase in inventories, $150 increase in accounts payable, $120 decrease in accounts receivable, $60 decrease in other current assets, $150 decrease in other current liabilities?
(A) -$120
(B) -$240
(C) $180
(D) $120
Answer:
(A). - $ 120
Explanation:
The changes to cash are from the following rules
Increase in assets and decrease in liabilities is a decrease in cash
Decrease in assets and increase in liabilities is and increase in cash
Using the data in the question,
Cash Movement
increase in inventories $ 300 ( $ 300)
Increase in accounts payable $ 150 $ 150
Decrease in accounts receivable $ 120 $ 120
Decrease in other current assets $ 60 $ 60
Decrease in other current liabilities $ 150 ($ 150)
Net movement in Cash $ (120)
The market for auto maintenance is initially in equilibrium. Demonstrate the effect of an increase in income on the equilibrium price and quantity of auto maintenance
Answer:
Price and quantity both will increase
Explanation:
Income affects the demand of consumers. Increase in the income increases the demand so the demand curve shifts upward. Similarly, if income decreases, the demand curve shifts downward due to a drop purchasing power. The upward shift in the demand will lead to an increase in the equilibrium price and an increase in the price will increase the quantity of auto maintenance.
Final answer:
An increase in income leads to an increase in demand for auto maintenance services.
Explanation:
When income increases, it leads to an increase in demand for auto maintenance services.
This is because with higher incomes, consumers have more money available to spend on auto maintenance, which causes an increase in the quantity demanded of auto maintenance services.
As a result, the demand curve for auto maintenance shifts to the right, indicating an increase in demand at every price.
Fair value option; bond investment; effective interest [LO12-1, 12-2, 12-3, 12-4, 12-8] Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated January 1, on January 1, 2018. Management intends to have the investment available for sale when circumstances warrant. When the company purchased the bonds, management elected to account for them under the fair value option. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $66 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2021, was $70 million.
Required:
1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). 4-a. At what amount will Fuzzy Monkey report its investment in the December 31, 2021, balance sheet? 4-b. Prepare the journal entry necessary to achieve this reporting objective. 5. How would Fuzzy Monkey’s 2018 statement of cash flows be affected by this investment assuming Fuzzy anticipates holding these investments for a sufficiently long period?
1. Record Fuzzy Monkey’s investment on bonds on January 1, 2021.
2. Record the interest revenue on June 30, 2021.
3. Record the interest revenue on December 31, 2021.
Req 4A
Invesment_________ million
Req 4B
Record any necessary entry to report the investment at the correct value on the balance sheet.
Req 5
Operating cash flow $ million
Investing cash flow $ million
Answer:
debt securities investment 80,000,000 debit
discount on debt securities 14,000,000 credit
cash 66,000,000 credit
--to record the purchase of the bonds--
cash 3,200,000 debit
discount on debt securities 100,000 debit
interest revenue 3,300,000 credit
--to record first interest collection--
cash 3,200,000 debit
discount on debt securities 105,000 debit
interest revenue 3,305,000 credit
--to record secod interest collection--
Cash flow:
-66,000,000 purchase
+ 6,400,000 interest
net -59,400,000
Balance sheet
debt securities investment 80,000,000
discount on debt securities (13,795,000)
net amount for the investment 66,205,000
Explanation:
As we pay the bonds lower than face value we recognize a discount.
Then, interest reveneu will be carrying value times market rate:
66,000,000 x 10% / 2 = 3,300,000 interest revenue
cash proceeds: 80,000,000 x 8% / 2 = 3,200,000
the difference will amortize the discount.
Then we do it again for the second one:
66,100,000 x 10% / 2 = 3,305,000
difference amortize the discount
We did not adjust for the fair value as we are using another method.
Blair Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Blair will receive a payment of $10,000,000 if the drug receives regulatory approval. Based on prior experience in the drug-approval process, Blair determines it is 90% likely that the drug will gain approval and a 10% chance of denial.
a. Determine the transaction price of the arrangement.
b. Assuming that regulatory approval was granted on December 20, 2017, and that Blair received payment from Pang on January 15, 2018.
c. Prepare the journal entries for Blair. The license meets the criteria for point-in-time revenue recognition.
Explanation:
a. The transaction price of the arrangement is $10,000,000
c. The journal entries are as follows:
On December 20, 2017
Accounts Receivable A/c Dr $10,000,000
To License revenue A/c $10,000,000
(Being the revenue is recorded)
On January 15, 2018
Cash A/c Dr $10,000,000
To Accounts Receivable A/c $10,000,000
(Being the payment received is recorded)
The transaction price of the arrangement is $10,000,000. The revenue is recognized on December 20, 2017. The journal entries are: Debit Accounts Receivable and Credit Revenue on December 20, 2017; Debit Cash and Credit Accounts Receivable on January 15, 2018.
Explanation:a. The transaction price of the arrangement is the amount Blair will receive if the drug receives regulatory approval. In this case, it is $10,000,000.
b. Since regulatory approval was granted on December 20, 2017, and Blair received payment on January 15, 2018, the transaction price is recognized as revenue on December 20, 2017.
c. The journal entry to record the revenue would be:
December 20, 2017: Debit Accounts Receivable $10,000,000; Credit Revenue $10,000,000January 15, 2018: Debit Cash $10,000,000; Credit Accounts Receivable $10,000,000Learn more about Licensing agreement here:https://brainly.com/question/34575643
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A customer buys 1,000 shares of ABCD $25 par 8% cumulative preferred stock. This preferred issue pays quarterly dividends. This year, it missed the first 3 quarterly dividends. In the 4th quarter, it paid a common dividend of $.25 per share. In order to do this, it must have paid this preferred shareholder: A $400 B $500 C $1,600 D $2,000
Answer:
D $2,000
Explanation:
Valueof Preffered stock = 1000 x 25 = $25,000
Quartely dividend = 25000 x 8% x 3/12 = $500
Dividend of four quarters = $500 x 4 = $2,000
First three quarters has been missed so the preferred dividend of $2,000must be paid first from the declared dividend of 0.25 per share.
So, the correct option is D $2,000.
The amount of preferred dividend paid to shareholders for the missing periods is $2,000.
The dividend for the preference shareholders is the necessarily to be paid at the need of each period. It is the amount paid in return of the investment in the shares of the company.
Calculation:
Given,
Dividend rate =8%
Value of preferred shares =1,000 shares of $25 each, that is $25,000
Rate of dividend paid in 4th quarter =$0.25per share
First the quarterly dividend is computed for the preferred shares:
[tex]\begin{aligned}\text{Quarterly Dividend}&=\text{Value of Preferred Shares}\times\text{Dividend Rate}\times\text{Missed Payments}\\&=\$25,000\times8\%\times\frac{3}{12}\\&=\$500\end{aligned}[/tex]
Now, the total amount of dividend missed for the payment is:
[tex]\begin{aligned}\text{Dividend of Four Quarters}&=\text{Quarterly Dividend}\times4\\&=\$500\times4\\&=\$2,000\end{aligned}[/tex]
Thus, the amount paid to preferred shareholders is $2,000, so option D.is correct.
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When the price of good X increases and all goods (including X) are normal goods, the income effect leads consumers to buy A. more of all goods. B. more of good X and less of other goods. C. less of all goods. D. less of good X and more of other goods.
Answer:
C. less of all goods
Explanation:
The increase in price of good x causes the consumer to buy less of all goods. This is because all goods are normal goods.
Normal goods are goods whose demand increases when income increases and falls when income falls.
The increase in price of good x leads to fall in the real income of the consumer so the demand for other goods ought to fall.
I hope my answer helps you
The function of financial markets and institutions is: to manage portfolios of investors. to create economical booms and recessions. to look at decisions in firms from the financial manager's point of view. to facilitate the flow of funds through the economy.
Answer:
The correct answer is letter "D": to facilitate the flow of funds through the economy.
Explanation:
Financial Markets are the cornerstone of a capitalistic economy because they help facilitate capital formation and liquidity for entrepreneurs and businesses. Financial markets create liquidity by making it easy for buyers and sellers to trade their financial holdings.
Financial markets and institutions primarily facilitate the flow of funds in the economy, promoting investment activities and economic growth. They act as intermediaries between savers and borrowers, also giving access to various credit and investment options.
Explanation:The primary function of financial markets and institutions is to facilitate the flow of funds through the economy. They do this by acting as intermediaries, linking savers and borrowers. This role is pivotal for the functioning of economies as it promotes economic growth by improving liquidity and supporting investment activities. While they indeed have a role in managing portfolios of investors, this is not their primary function. Their decisions can have an impact on economic conditions, potentially contributing to booms or recessions, but they do not deliberately create these situations. Instead, they provide businesses and individuals with access to different types of credit and investment opportunities.
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bundle of meanings or characteristics associated with certain concrete, unambiguous events, objects, conditions, or situations?
Answer:
CONCEPT
Explanation:
It is known as "CONCEPT" in which the meanings collections are been accepted and associated with characteristics with certain objects and situations and conditions and events as well as behaviors.
In this it also classifies the events and as well as objects that are carrying similar characteristics.
We can also abstract such kind of meaning with are experience of abstraction.
The question touches on the concept of a bundle of meanings associated with concrete objects or events, which important in both linguistic semantics and economics. In linguistics, these bundles of features define word meanings, while in economics, they pertain to bundles of goods and their associated values like price and quantity.
The question is concerned with the concept of a bundle of meanings or characteristics that are tied to concrete, specific events or objects. This can relate to the fields of semantics and lexicology within linguistics, where words and phrases carry a bundle of descriptive features that help in understanding and predicting our world. For instance, an apple isn't merely an object with a particular shape; it implies a cluster of features such as a certain range of sizes, tastes, and consistencies. Furthermore, the concept of modality in grammar translates these meanings into language, reflecting the possibility, hypothesis, or desirability of these events or objects.
In economics, when we talk about a bundle, we might think about a collection of goods and services. For example, a grocery cart filled with assorted items, whose affordability is contingent upon our budget. Here, each product within the bundle carries specific values, such as quantity, price, and utility. These values enable predictions regarding the bundle's compatibility with consumer preferences and budget constraints.
In each scenario, whether linguistic or economic, structured components or features define the concrete nature of a bundle, projecting various dimensions like time, space, and quantity. These concrete words or goods are differentiated by their physical properties and characteristics, which are perceptible through the senses, like in the word 'chair', or quantifiable, as in the example of grocery items.
Bill and Mike go in together to purchase 342 acres of land to use for hunting and family vacations. Ten years later, Bill dies and Bill's wife wants to sell his half of the land. Mike informs her that, unfortunately, she has no claim to the land and that upon Bill's death, his ownership interest transferred to Mike. What type of co-ownership did Bill and Mike have?
a. condominium tenancyb. by the entireties tenancyc. in common joint tenancy
Answer:
Joint Tenancy
Explanation:
Joint tenancy represents a legal contractual arrangement that involves two or more people who have agreed to own a single property sharing both obligations and rights equally.
The terms of join tenancy is such that no one whether the partner or an inheritor of will is able to sell the property in future without the consent of other partners. Secondly, when a partner dies joint tenancy does not transfer assets to heirs instead it is vested in the surviving partner.
It becomes that Bill did not name his wife as his beneficiary, hence Mike inherits the entire 342 acres of land after Bill's death.
"The correct option is c. in common joint tenancy.
To determine the type of co-ownership that Bill and Mike had, let's examine the characteristics of each option:
a. Condominium tenancy refers to a form of ownership where a person owns a unit in a multi-unit building along with a proportionate share of the common areas.
b. By the entireties tenancy is a form of co-ownership that can only exist between a married couple. It is characterized by the right of survivorship, meaning that when one spouse dies, the other automatically inherits the deceased's share of the property.
c. In common joint tenancy is a form of co-ownership where each party has an equal, undivided interest in the property. It is characterized by the four unities of possession (each party has an equal right to possess the entire property), interest (each party's interest must be identical in duration and extent), time (each party's interest must begin at the same time), and title (each party's interest must originate from the same document).
A manager checked production records and found that a worker produced 156 units while working 40 hours. In the previous week, the same worker produced 105 units while working 30 hours. a. Compute Current period productivity and Previous period productivity. (Round your answers to 2 decimal places.) Current period productivity Units / hr Previous period productivity Units / hr b. Did the worker's productivity increase, decrease, or remain the same? (Round your intermediate calculations and final answer to 2 decimal places. Omit the "%" sign in your response.) Worker's productivity by %
To compute the current and previous period productivity, divide the units produced by the hours worked. The worker's productivity increased from the previous period to the current period by 11.43%.
Explanation:To compute the current period productivity, divide the number of units produced in the current period by the number of hours worked: 156 units / 40 hours = 3.90 units/hr. To compute the previous period productivity, divide the number of units produced in the previous period by the number of hours worked: 105 units / 30 hours = 3.50 units/hr.
The worker's productivity increased from the previous period to the current period. The worker productivity increased by 3.90 units/hr - 3.50 units/hr = 0.40 units/hr. To express this change as a percentage of the previous period productivity, divide the increase by the previous period productivity and multiply by 100: (0.40 units/hr / 3.50 units/hr) × 100 = 11.43%.
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Taxpayers who recover all or part of an item that they deducted or took a credit for in a prior year must report the same amount as __________. a. Taxable income. b. A refundable credit. c. A negative deduction. d. A negative credit
Answer:
The correct answer is letter "A": Taxable income.
Explanation:
In case a taxpayer receives a tax refund for the tax return of the previous period, next year, that tax refund will be considered a taxable income for the current period. For instance, if in 2020 a taxpayer receives a tax refund of $1,000 for the tax return of 2019, that amount will be considered a taxable income for 2020.