Handel Company uses the allowance method for estimating uncollectible accounts.
January 5 Sold merchandise to Terry Richman for $2,000, terms n/15.
April 15 Received $600 from Terry Richman on account.
August 21 Wrote off as uncollectible the balance of the Terry Richman account when she declared bankruptcy.
October 5 Unexpectedly received a check for $300 from Terry Richman. It is not felt any more will be received from Richman.
Prepare journal entries to record the above transactions: (Credit account titles are automatically indente
Answers
Answer:
Entries are given below
Explanation:
January 5 - Sold Merchandise
DEBIT CREDIT
Receivable - Terry $2,000
Sales Revenue $2,000
April 15 - Received $600 from terry
DEBIT CREDIT
Cash $600
Receivable - Terry $600
August 21 wrote off uncollectable debt
DEBIT CREDIT
Allowance for debt (2000-400) $1,400
Receivable - Terry $1,400
October 5 Received a check
DEBIT CREDIT
Receivable - Terry $300
Allowance for doubtful debt $300
Related Questions
What disadvantage would be experienced by a person applying for their Social Security benefits at age 62?
a.
They would be ineligible to receive benefits after they turn 85 years old
b.
They would receive only a partial benefit for as long as they collect Social Security
c.
They have to complete 120 hours of community service each year until they reach 65 years old
d.
They are given full benefits, but can only spend them on food and housing costs
Answers
The disadvantage that would be experienced by a person applying for their Social Security benefits at age 62 is option b. They would receive only a partial benefit for as long as they collect Social Security.
What is the Social Security benefit at age 62?This can lead to Early retirement. Social Security retirement payments are available as early as age 62. If you leave the workforce before reaching full retirement age, we will lower your pension. For instance, if you reach 62 in 2022, your benefit would be roughly 30% lower than it will be when you reach 67, the full retirement age.
Therefore, By taking advantage of early retirement benefits, you can begin to get the monthly benefits that you have been paying to the government since you first began working. But that has the drawback of permanently decreasing your Social Security retirement payment.
So, As early as age 62, you can begin receiving Social Security retirement payments. When you reach full retirement age, however, you are eligible for all benefits. Your benefit amount will increase if you wait until you are 70 years old before claiming your benefits.
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WHY WONT SOMEONE HELP MEEEEEEEE!!!!!!!!!!!!!!!!!!!!!!!! A business owner is aware that the Department of Labor has created rules that require overtime pay for employees. When he works his employees more than 40 hours in one week, he makes sure that he works them less than 40 hours the following week. The business owner feels that it is fair to average the number of hours worked over the two weeks covered by the pay period and use that number for calculating overtime pay. A representative of the Department of Labor informs him that their regulations do not permit this. Which of the following is true in this situation?
A. The regulations of the Department of Labor are administrative law and must be followed by the business owner.
B. Because the Department of Labor is merely a government agency, their regulations do not have the force of law and can be viewed as guidelines rather than requirements.
C. The regulations of the Department of Labor have no authority over private businesses, only over public corporations.
D. The business owner is only obligated to follow the regulations of the Department of Labor if one of his employees files a formal request.
Answers
In this situation given in the question, the regulations of the Department of Labor are administrative law and must be followed by the business owner. The correct option is a.
What is administrative law?Administrative law refers to the body of laws, procedures, and legal institutions affecting government agencies as they implement legislation and administer public programs. As such, administrative law implicates important political and social values, including democracy, fairness, and efficiency.
Administrative law research is characterized in part by prescriptive efforts to design rules that better promote these values, and in part by empirical efforts to explain how law influences the behaviour of government agencies. Since government agencies often possess considerable policy discretion but are staffed by unelected officials, a key issue in administrative law has been to understand how agencies are or can be held democratically accountable.
Administrative law draws on the methods and findings of social science to understand how law can affect governance.
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Which measure of prices includes all of the final goods and services in a nation's
output?
Answers
The GDP deflator measure of prices includes all of the final goods and services in a nation's output.
The implicit price deflator and GDP price deflator are other names for the GDP deflator. It will make it easier to gauge how much the pricing of various commodities and services produced inside an economy have changed. This is also used by economists to compare the real level of economic activity in one economy from one year to the next.
The quantity of goods created in an economy with the use of labor, equipment, and raw materials that are available for sale in the market to customers and contribute to the creation of profit is known as output.
The main quantitative indicator of economic activity is the gross domestic product. It is a measurement of the total market value of all finished goods and services produced within a nation's borders in a given year.
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Suppose that you receive a weekly income of $100, which you spend entirely on pizza and deluxe hamburgers. The price of a pizza is $10 and the price of a hamburger is $5. On a diagram, draw a line that shows your consumption possibilities. What is the opportunity cost of a hamburger? Would the opportunity cost of a hamburger change if the prices of pizza and hamburgers were cut in half? Calculate the opportunity cost of a pizza and a hamburger for each of the following changes:
Answers
The opportunity cost of a hamburger is -1/2 of a pizza, and it remains the same even if the prices of pizza and hamburgers are cut in half.
To draw the consumption possibilities line, we can use a simple graph with pizzas (x-axis) and deluxe hamburgers (y-axis) as the two goods. Let's assume that the horizontal axis represents the quantity of pizzas and the vertical axis represents the quantity of deluxe hamburgers.
Given that the price of a pizza is $10 and the price of a hamburger is $5, we can plot the consumption possibilities by dividing the weekly income of $100 by the respective prices. This gives us the following points:
With $100, you can buy 10 pizzas ($100 / $10 = 10) and 20 deluxe hamburgers ($100 / $5 = 20). Plot this point on the graph as (10, 20).
Now, let's consider the opportunity cost.
The opportunity cost is the value of the next best alternative that is forgone when a choice is made. In this case, it represents the number of pizzas you have to give up to obtain an additional hamburger, or vice versa.
The opportunity cost of a hamburger can be calculated by finding the slope of the consumption possibilities line. The slope represents the rate at which one good is traded for the other. In this case, the slope is -10/20, which simplifies to -1/2. This means that for each additional hamburger, you have to give up 1/2 of a pizza.
If the prices of pizza and hamburgers were cut in half, the new prices would be $5 for a pizza and $2.50 for a hamburger. This change in prices would not affect the consumption possibilities line.
The line would remain the same, indicating the combinations of pizzas and hamburgers that can be purchased with the given income. However, the specific points on the line would change.
The opportunity cost of a hamburger would still be -1/2 of a pizza, as the ratio between the prices and the opportunity cost remain the same.
In summary:
Opportunity cost of a hamburger: -1/2 of a pizza
Opportunity cost of a pizza: 2 hamburgers (since the reciprocal of -1/2 is -2/1, meaning you would have to give up 2 hamburgers to obtain an additional pizza)
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Which tends to be a riskier investment - corporate bonds or government bonds? Why?
Answers
Corporate bonds are more riskier investment than government bonds.
Corporate bonds are debt which is issued by the company and sold to the investors.
Company issues bonds when they needs capital .They are high interest yielding than government bonds. These bonds are traded in he secondary market . Investors when buy these bonds which means that he is lending money to the company , in return gets series of interest payments.
Government bonds are fixed income investments.
The range of government bond is more than corporate bonds as government bonds tenors goes out upto 30 years.
Corporate bonds returns are higher than governments bonds , more the return more risk.
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The (a)____________ refers to a loss one party that is not offset by gains to someone else. For example, if you bought a gift for Jose for $235, but the gift is only worth $100 to Jose, then the (a)____________ is (b)____________.
Answers
Answer:
a. Deadweight loss
b. $135
Explanation:
The deadweight loss is a situation when the demand and the supply is not within the equilibrium. It could be applied at the time when there is a deficiency that results in non-efficient resource allocation
So as per the given situation, the deadweight loss is the answer
And, the amount would be
= Purchase value - worth value
= $235 - $100
= $13
You've recently noticed attendance issues with your team and suspect that team mates aren't getting along with one another. This is causing low team morale and associates do not seem to care as much about the team's performance Assuming all options are possible, what would you be most and least likely to do?
A. Set specific objectives for your team. Let them know that you are all in this together and that you will succeed or fail together.
B. Spend time with each of your team members and learn about their perspectives. Incorporate their ideas into an action plan. .
C. Show your confidence in your associates by explaining the problem and challenging them to turn the situation around.
D. Consult with your manager and other leaders from high-performing teams. Ask them for suggestions for working through conflicts within the team.
Answers
Answer:
For the issue with the team, the most likely action or decision to take would be:
A. Set specific objectives for your team. Let them know that you are all in this together and that you will succeed or fail together.
On the other-hand, the least likely action to take would be:
D. Consult with your manager and other leaders from high-performing teams. Ask them for suggestions for working through conflicts within the team.
Explanation:
assume that you are the dean of a business school and that you are interested in more entrepreneurship courses being offered in your school. surprisingly to you, some professors resist the idea of offering these courses on the basis of their view that entrepreneurship is a skill that can only be learned through experience. using concepts from the text, make an argument that entrepreneurship can be taught.
Answers
We believe that entrepreneurship can be taught both in and outside of the classroom. For the businesses they may join in the upcoming years and also for society at large, the skills students acquire are crucial.
How entrepreneurship can be taught?By utilizing this foundation, educators throughout all levels can help young people engage with their immediate environment and imagine how things might be different,
test out innovative solutions to problems they encounter, hone there own ability to reframe issues in order to generate novel ideas, and then work tirelessly to scale their thoughts by rallying others to help them.Building on a person's inherent capacity for imagination, entrepreneurship can be taught:
Imagination is the process of picturing things that do not exist.Imagination is a tool that creativity uses to solve problems.Utilizing creativity to produce unique solutions is innovation.Entrepreneurship entails putting innovations to use and expanding ideas by inspiring others' creativity.To know more about the entrepreneur, here
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Define monopoly is this correct answer
Answers
A monopoly is a market structure that consists of only one seller or producer. A monopoly limits available substitutes for its product and creates barriers for competitors to enter the marketplace. Monopolies can lead to unfair consumer practices.
The Eggers Corporation filed an amended Form 1120, claiming an additional $400,000 deduction for payments to a contractor for a prior tax year. The amended return was based on the entity's interpretation of a Regulation that defined deductible advance payment expenditures. The nature of Eggers's activity with the contractor did not exactly fit the language of the Regulation. Nevertheless, because so much tax was at stake, Eggers's tax department decided to claim the deduction. Eggers’s tax department estimated that there was only a 15% chance that Eggers’s interpretation would stand up to a Tax Court review.
a. What is the amount of tax penalty that Eggers is risking by taking this position?
b. What would be the result if there was a 45% chance that Eggers’s interpretation of the Regulation was correct?
Answers
Answer: See explanation
Explanation:
a. What is the amount of tax penalty that Eggers is risking by taking this position?
The amount of tax penalty that Eggers is risking by taking this position will be:
= $400,000 × 20%
= $400,000 × 20/100
= $400,000 × 0.2
= $80,000
The 20% used is the penalty charged when a claim is more than the final amount that's being allowed by the court or the IRS.
b.What would be the result if there was a 45% chance that Eggers’ interpretation of the Regulation was correct?
The result in this case if there was a 45% chance that Eggers’ interpretation of the Regulation was correct will be that Eggers will have zero tax penalty given. This is because since a reasonable cause was shown by the corporation, the penalty will be waived.
Suppose you are the money manager of a $2 million investment fund. The fund consists of four stocks with the following investments and betas. Stock Investment Beta A $ 200 000 1.50 B $ 300 000 -0.50 C $ 500 000 1.25 D $1000 000 O.75
If the market required rate of returns is 28 and the risk-free is 12%:
Calculate:
i. Stock A required rate of return
ii. Stock B required rate of return
iii. Stock C required rate of return
iv. Stock D required rate of return
v. What is the Fund’s required rate of return?
Answers
Answer:
5 ms
Explanation:
What do researchers mean by "secondary data"?
OA. Data collected after any research to gather primary data
OB. Data considered less important than primary data
OC. Data collected specifically for the researcher's own study
OD. Information from research already conducted for another purpose
Answers
The statement do researchers mean by "secondary data" is: OD. Information from research already conducted for another purpose.
What is secondary data?Government papers, scholarly publications, surveys, databases and other previously done research are just a few examples of the sources from which secondary data may be derived.
To find answers to their own research questions or to obtain new insights into a particular area of interest, researchers analyse and interpret this current data. Researchers might avoid spending the time and money necessary for gathering primary data by employing secondary data instead.
Therefore the correct option is D.
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The liabilities of Oriole Company are $117,000 and the owner’s equity is $227,000. What is the amount of Oriole Company’s total assets?
Answers
Answer:
$344,000
Explanation:
Assets can be calculated by applying the accounting equations. In the accounting equations
Assets = Liabilities + Equity
In this case, liabilities are $117,000 and Equity is $227,000.
Therefore,
Assets = $117,000 + $227,000
Assets = $344,000
(Economics)
In an essay of at least two well-developed paragraphs, explain the global benefits of international trade and multinational corporations.
Answers
International trade refers to the exchange of goods and services across national borders. It plays a significant role in promoting economic growth and providing several global benefits.
One of the primary advantages of international trade is that it allows countries to specialize in producing goods and services in which they have a comparative advantage. This means that countries can focus on producing goods that they can produce more efficiently and at a lower cost compared to other countries. As a result, resources are allocated more efficiently, leading to increased productivity and higher standards of living.Furthermore, international trade enables countries to access a wider variety of goods and services that may not be available domestically. This increases consumer choices and provides opportunities for individuals to enjoy a higher quality of life. For example, consumers in a landlocked country can still enjoy fresh seafood by importing it from coastal countries. Similarly, individuals in colder climates can purchase tropical fruits from countries where they are grown.Multinational corporations (MNCs) also contribute to the global benefits of international trade. These are companies that operate in multiple countries, with business activities ranging from production to distribution. MNCs play a crucial role in facilitating international trade by establishing global supply chains, investing in foreign markets, and creating jobs. They bring capital, technology, and managerial expertise to host countries, which can lead to economic development and improved living standards.Moreover, MNCs often engage in research and development (R&D) activities, driving innovation and technological advancements. This can have far-reaching benefits for both the host country and the global economy. For instance, a multinational pharmaceutical company conducting R&D in a developing country may discover new drugs or medical treatments that can benefit people worldwide.In conclusion, international trade and multinational corporations provide numerous global benefits. They promote specialization, resource allocation efficiency, and access to a wider variety of goods and services. Additionally, MNCs contribute to economic development, job creation, innovation, and technological advancements. Overall, international trade and MNCs play a crucial role in fostering economic growth and improving the well-being of individuals and nations around the world.
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To what extent do you consider that paperwork will be replaced in offices by data communicated via computer within the next twenty years? What effect may this have on internal communication? Discss
Answers
Paperwork is likely to be largely replaced by data communicated via computer in offices within the next twenty years.
This shift will have a significant impact on internal communication, making it faster, more efficient, and easier. However, it may also lead to concerns about data security and privacy, as well as a potential loss of face-to-face interaction and social cohesion within the workplace.
What is data security?
Data security refers to the protection of digital data and information from unauthorized access, use, disclosure, modification, or destruction. It involves implementing measures and controls to ensure the confidentiality, integrity, and availability of data, as well as protecting against data breaches, cyber attacks, and other forms of malicious or accidental data loss.
Data security is critical in protecting sensitive and confidential information such as personal and financial data, intellectual property, and trade secrets, and is essential for maintaining the trust of customers, partners, and stakeholders.
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Dan, a licensed broker, has no written agreement with a seller or a prospective buyer. In this situation, Dan can only act as a:
Answers
Dan, a licensed broker, has no written agreement with a seller or a prospective buyer. In this situation, Dan can only act as a Transaction Broker.
BrokerA broker is a person or firm who arranges transaction between a buyer and seller for a commission.
Transaction brokerThis is a real estate agent or firm that provides customer service to a buyer and seller in a real estate transaction.
Therefore, for Dan, who is a licensed broker, he would act as a transaction broker to close the deal with a prospective buyer without a written agreement.
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Which of the outcomes in are most appealing to you? Are you more attracted to extrinsic outcomes or intrinsic outcomes?
Answers
Extrinsic outcomes are external rewards such as money, status, or recognition that come from achieving a goal. These outcomes are appealing to some individuals because they provide tangible benefits and can be easily measured by others.
On the other hand, intrinsic outcomes are internal rewards such as personal satisfaction, a sense of accomplishment, or personal growth that come from achieving a goal. These outcomes are appealing to some individuals because they provide a deeper sense of fulfillment and can be more meaningful in the long-term.
Ultimately, whether someone is more attracted to extrinsic or intrinsic outcomes depends on their personal values and goals. Some people may prioritize external rewards and seek to maximize their income or social status, while others may prioritize personal growth and seek to achieve goals that align with their passions and values.
It is important to strike a balance between both types of outcomes and to find a sense of purpose and satisfaction in the goals that we pursue.
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Tanner-UNF Corporation acquired as a long-term investment $310 million of 6% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity, but when the bonds were acquired Tanner-UNF decided to elect the fair value option for accounting for its investment. The market interest rate (yield) was 9% for bonds of similar risk and maturity. Tanner-UNF paid $280 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $290 million.
How would this investment be classified on Tanner-UNF's balance sheet?
A. Held-to-maturity securities
B. Other securities
C. Significant-influence investments
D. Trading securities
E. Available-for-sale securities
Answers
Answer:
D. Trading securities
Explanation:
Tanner-UNF Corporation
This investment would be classified on Tanner-UNF's balance sheets asTrading securities.
TRADE SECURITIES can be defined as the securities which have been purchased or bought by a company for the sole aim of realizing a short-term profit.
Hence, Companies do not always intend to keep such securities for a long period of time which is why they will only invest it if t they believe or thought they have a good chance of being compensated for the risk. they are taking which is why TRADE SECURITIES always includes both debt securities and equity securities.
some crypto exchanges allow their customers to employ leverage and why is this not a good idea , acording to Fool proof what best decribes this sentence
Answers
Allowing customers to employ leverage is a risky job as leverage works both ways our cash account is down 10% if bitcoin goes the opposite way, from $30,000 to $27,000. However, if we were using a 10:1 leverage, our margin deposit is now gone. A decrease results in a margin call for our account and a demand for extra funds.
How leverage on crypto works:
If we want to possess 1 crypto for $30,000, we have two options: we can either purchase it in our cash account for $30,000 or we can purchase it in our margin account with 10x leverage and a $3,000 margin deposit. The remaining balance of the transaction in our margin account is provided by a loan of $27,000.
If BTC increases by $3,000 to $33,000, we will make a 10% profit in our cash account after deducting any expenses.
The margin account, on the other hand, has a profit of 100% less any costs once the loan is repaid and the interest on the loan.
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the assigned value of a product is its what
Answers
The value that is assigned to any product is known as Price of the Product.
What is the product?A product is refers as goods or services prepared with the objective to sale and gets some income in exchange. A product can be both tangible and intangible to use.
The value of any product can be considered as the amount charge to sale it. The calculation pf price will be based on cost of manufacturing along with other expenses calculated till delivered to consumer.
Therefore, price is used to determine the value of any product.
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On January 1, 2021, Shay Company issues $430,000 of 8%, 15-year bonds. The bonds sell for $417,100. Six years later, on January 1,
2027, Shay retires these bonds by buying them on the open market for $450,425. All interest is accounted for and paid through
December 31, 2026, the day before the purchase. The straight-line method is used to amortize any bond discount.
1. What is the amount of the discount on the bonds at issuance?
2. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2021, through December 31,
2026?
3. What is the carrying (book) value of the bonds as of the close of business on December 31, 2026?
4. Prepare the journal entry to record the bond retirement.
Answers
(1). The amount of the discount on the bonds at issuance are at issuance = Par value of bonds-Issue price of bonds = $430,000-$417,100 = $12,900.
What is the amount?The size or quantity of non-count substantives is indicated by the language unit "amount." You can count the magnitude of air in a bottle or the volume of water in a cup, for instance.
(2). As amortization of the discount is recorded on the bonds for the entire period from January 1, 2021, through December 31, 2026, was December 31, 2026 = $12,900/15*6 = $5,160
(3). The carrying (book) value of the bonds as of the close of business on December 31, 2026
Carrying value = Par value-Unamortized discountUnamortized discount = Total discount-Amortized discount = $12,900-$5,160 = $7,740Carrying value = $430,000-$7,740 = $422,260Therefore, As a result, above are the straight-line method is used to amortize any bond discount.
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Direct examples of the functions of a financial system include
(Select all that apply.) ?
1. a business owner accepting payments via PayPal
2. a bank hiring three new tellers when a new branch opens
3. ensuring that personal information entered electronically is safe
4. a financial institution extending a line of credit to a small business
Answers
Kevin owns a toy company. How should he ensure that his customers are receiving a high-quality product
A. Offer a discount on future purchases to customers
B. Repair products that have been sold to customers and are broken
C. Survey customers and ask for suggestions
D. Test a prototype
Answers
Option (d), Kevin owns a toy store. In this method, he may run a prototype test to ensure that his customers are receiving a high-quality product.
How do you know your customer service is top-notch?If you pay attention to your customers, acknowledge their needs, thank them, and create a warm, welcoming environment, they will think highly of you. A satisfied consumer is more inclined to buy more from you again. Additionally, they could suggest others to your business.
Kevin has several alternatives to ensure that his customers receive high-quality products.
One option is to test a prototype first to ensure the finished product satisfies the appropriate quality standards.Additionally, he may improve the quality of the finished product by using customer feedback. He may conduct client surveys and ask for suggestions in order to understand more about their preferences and goals.Kevin may also offer a warranty or guarantee on his goods and repair or replace any defective things that he has sold to customers.By doing this, he could demonstrate his concern for customer satisfaction and enhance his company's reputation as a producer of high-quality items.Learn more about customer satisfaction: https://brainly.com/question/28387894
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Julia runs a salon from a rented premise. In the month of June, she paid $6,000 as advance rent for the premise for a period of six months. Under which accounting head will she include this advance rent paid?
A. fixed assets
B. current assets
C. long-term liabilities
D. current liabilities
Answers
Option (b), Julia operates a salon out of a rented space. She paid the property's six-month advance rent of $6,000 in the month of June. She will record this advance rent as current assets under the current assets accounting category.
What record in the books is a rent advance?The initial journal entry for prepaid rent debits prepayment and credits cash. Both of these accounts are viewed as assets, thus they have no impact on the balance sheet of a business. Advance payments for expenses are viewed as assets since they will benefit the company financially in the future.
It provides as an example of an prepaid expenditure. Prepaid rent is displayed on the asset side of the balance sheet since it is unrelated to the current accounting period. Rent paid in advance is deducted from the organization's financial records since it is a current asset.
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access the balance sheet of a publicly traded company, and list what items of assets are reported in the property, plant, and equipment section on the asset side. Select any one item from the property, plant, and equipment section, and discuss how you determine the cost of that item to be reported on the balance sheet.
Answers
The balance sheet of a publicly traded company The balance sheet is a financial statement that reports a company's assets, liabilities, and equity at a specific point in time. It presents a summary of what the company owns and owes at the end of the accounting period.
The balance sheet of a publicly traded company can be accessed through the company's website or the Securities and Exchange Commission's EDGAR system.
Property, plant, and equipment sectionOn the asset side of the balance sheet, property, plant, and equipment (PP&E) are reported under long-term assets. PP&E refers to tangible, long-lived assets that are used in the production of goods or services.
These assets are expected to provide economic benefits to the company for more than one year. Examples of PP&E include land, buildings, machinery, equipment, and vehicles. Determining the cost of PP&E itemsThe cost of a PP&E item consists of all expenditures that are necessary to bring the asset to its intended use.
The cost of an item includes not only the purchase price but also all costs directly attributable to bringing the asset to its intended use. For example, the cost of a machine would include the purchase price, freight charges, installation costs, and any other costs necessary to get the machine up and running.
Once an asset is put into use, the company can no longer capitalize any additional costs to that asset's cost. Instead, maintenance and repair costs are expensed as they are incurred. Depreciation expense is also recognized on the income statement over the asset's useful life.
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Alexander Rees is concerned about appearing knowledgeable in exporting. What are
some of the factors he mentions in the project letter?
A-Finding good coffee
B-Developing a reliable source for twizzle sticks
C-Travel costs
D-Cultural Differences and exchange rates
Answers
Alexander Rees is concerned about appearing knowledgeable in exporting. The some of the factors he mentions in the project letter are
Travel costs
Cultural Differences and exchange rates
Thus option (C) and (D) are correct.
What is a cost?The cost is the expenditure or spending required or incurred to create and sell products and services, or to acquire assets.
When a product is sold or consumed, a cost is charged to expense. In the case of a buying of an asset, the charge to expense could be significantly deferred. The cost concept underlies the transition of assets from the balance sheet to expenses in the income statement.
Alexander Rees is concerned about appearing knowledgeable in exporting. Travel costs and Cultural Differences and exchange are some of the factors he mentions in the project letter.
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what makes the news true and accurate
Answers
The news is considered true and accurate when it is based on facts and evidence. This means that the sources used to create the news must be reliable and trustworthy.
News reporters and journalists must verify the information they receive from their sources to ensure that it is accurate before they publish or broadcast it. They must also use multiple sources to confirm the information they receive.
In addition, news must be presented in a balanced and impartial way. This means that reporters should not have any biases or prejudices that affect the way they report the news. They must also present both sides of a story to give their audience a complete picture of what is happening.
Another important aspect of accurate news is the use of language. News reporters must use language that is clear and concise, avoiding any exaggeration or sensationalism. They must also avoid using inflammatory language or making unfounded claims.
Finally, news organizations must have a strong ethical code that guides their reporting. This code should include principles such as accuracy, impartiality, fairness, and transparency. By following these principles, news organizations can ensure that their reporting is true and accurate.
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Problem 8, MacroSoft Inc. has capitalized $600,000 of software costs. Sales from this product were $360,000 in the first year. MacroSoft estimates additional revenues of $840,000 over the product’s economic life of 5 years.
Instructions
Prepare the journal entry to record software cost amortization for the first year. Show all computations.
Answers
Journal Entry:
Date: [First year-end date]
The amortization expense for the first year is $120,000.
Debit: Amortization Expense - Software Cost - Year 1 ($600,000 / 5 years) = $120,000Credit: Accumulated Amortization - Software Cost - Year 1 ($600,000 / 5 years) = $120,000Explanation:To record the software cost amortization for the first year, we need to allocate a portion of the capitalized software costs as an expense. Since the software has an estimated economic life of 5 years, we divide the total software cost ($600,000) by 5 to determine the annual amortization expense. In this case, the amortization expense for the first year is $120,000. We debit the Amortization Expense - Software Cost account to recognize the expense and credit the Accumulated Amortization - Software Cost account to accumulate the amortization over time.For more such questions on Journal Entry
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XYZ Co is considering a major expansion program that has been proposed by the company’s information technology group. To decide whether the company will undertake this major expansion project, the company paid McLindsay Co., a large consulting company, a fee of $2 million to calculate the costs and benefits of the program, but they will refund half of that cost back to XYZ if the company does not move forward with the project. McLindsay reported that the expansion project will have an upfront cost of $20 million for assets, which are depreciated straight line to zero over the four-year horizon of the project. The company does not need to invest in net working capital (i.e., NWC = 0). McLindsay also expects that the program will generate an operating cash flow equal to $10 million the first year and will expand by 20% per year until the project is liquidated at the end of year four. The liquidation value from selling the equipment will be $4 million. You are an assistant to the CFO of the company and your first task is to advise XYZ whether the company should undertake the investment. The CFO has provided you with the following data, which he believes may be relevant to your task (all the market data are current). The firm’s tax rate is 20%. The market data on XYZ Co’s securities are:
Debt
oBond A: 42,750 bonds with a 5.4% coupon rate, with 20 years to maturity selling at par. oBond B: 55,000 bonds with a 4% coupon rate, with 15 years to maturity selling at par.
Assume that both bonds have a par value of $1,000 and they make semiannual payments.
Common stock
o 1,000,000 shares outstanding, selling for $95 per share; XYZ Co just paid a dividend of $4 per share and is expected to increase its future dividends at a constant rate of 5%. The firm’s beta is 1.8. Assume the risk-free rate is 2% and the market return is 8%.
Answer the following questions and show all the formulas and calculations (if using a financial calculator show all the entries).
a. What is XYZ Co’s cost of debt?
b. What is XYZ Co’s cost of equity using the CAPM?
c. What is XYZ Co’s cost of equity using the dividend growth model?
d. What is XYZ Co’s cost of capital? (for your cost of equity calculations, use the average of cost of equity you calculated in the last two parts).
e. Find the cash flows from assets (CFFA) of the project and then compute the NPV of the project. Accounting for all relevant expenses, should the firm undertake the expansion project?
f. Suppose instead that (1) Bond A and Bond B are priced below par and (2) the common stock is selling for $142.50 per share and the last dividend paid was $6. Would the firm’s WACC be higher, lower, or the same as what you found in part (d)? Explain.
Answers
a. To calculate the cost of debt, we need to find the yield to maturity (YTM) of each bond. We can calculate the YTM of Bond A as 5.4% and the YTM of Bond B as 4%. Therefore, the cost of debt for XYZ Co is the weighted average of the YTM of each bond, where the weights are the proportion of the total market value of debt that each bond represents. Assuming that all bonds are selling at par, the total market value of debt is $97,750,000. Thus, the weight of Bond A is 42,750/97,750 = 0.4376 and the weight of Bond B is 55,000/97,750 = 0.5624. Therefore, the cost of debt is:
Cost of Debt = 0.4376 × 5.4% + 0.5624 × 4% = 4.48%
b. Using the CAPM, we can calculate the cost of equity as:
Cost of Equity = Risk-Free Rate + Beta × (Market Return - Risk-Free Rate)
= 2% + 1.8 × (8% - 2%)
= 13.6%
c. Using the dividend growth model, we can calculate the cost of equity as:
Cost of Equity = (Dividend / Price) + Growth Rate
= ($4 / $95) + 5%
= 9.3%
d. To calculate the cost of capital, we need to find the weighted average of the cost of debt and the cost of equity, where the weights are the proportion of the total market value of debt and equity that each component represents. Assuming that the total market value of equity is $95,000,000, the weight of debt is 97,750,000/(95,000,000 + 97,750,000) = 0.5073 and the weight of equity is 1 - 0.5073 = 0.4927. Therefore, the cost of capital is:
Cost of Capital = 0.5073 × 4.48% + 0.4927 × 13.6% = 9.54%
e. To calculate the cash flows from assets (CFFA) of the project, we need to find the operating cash flows (OCF) and the net capital spending (NCS) for each year of the project. Using the given data, we can calculate the OCF for each year as:
Year 1: OCF = $10,000,000
Year 2: OCF = $12,000,000 (20% increase from year 1)
Year 3: OCF = $14,400,000 (20% increase from year 2)
Year 4: OCF = $17,280,000 (20% increase from year 3)
The net capital spending (NCS) for year 0 is the upfront cost of the project, which is $20,000,000. The NCS for year 4 is the liquidation value of the equipment, which is $4,000,000. The NCS for years 1 to 3 is zero since there is no net working capital requirement.
Calculating the CFFA for each year:
Year 0: CFFA = - $20,000,000
Year 1: CFFA = $10,000,000 - $0 - $20,000,000 = -$10,000,000
Year 2: CFFA = $12,000,000 - $0 = $12
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how can help to us cultural and behavioural expectations of studying for a degree in business and management?
Answers
The Cultural and behavioural expectations of studying for a degree in business management help to learn about the culture that affect the behaviors of employees, as well as customers.
What is Cultural expectations?
Cultural expectations can be described as the messages that can be internalize with respect to what is and is what is not acceptable which focus on the standards of behavior as well as the cultural norms by our social systems.
It should be noted that the Social groups can be in many forms, such as the community, friends, workplace, hence the Cultural and behavioural expectations behaviors of employees, as well as customers.
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