Mr. Raffi should save approximately RM 847.77 in every quarterly basis until he retires so that he can withdraw RM 5,000 every 3 months for 10 years during his retirement.
To calculate the amount Mr. Raffi needs to save, we can use the formula for the future value of an ordinary annuity: Future Value = Payment × [(1 + Interest Rate)^n - 1] / Interest Rate, where "Payment" represents the amount withdrawn every period, "Interest Rate" is the interest rate per period, and "n" is the total number of periods.
In this case, Mr. Raffi plans to withdraw RM 5,000 every 3 months for 10 years, which amounts to 40 withdrawals in total (4 withdrawals per year for 10 years). The interest rate is 8% per year, compounded annually. The time period until retirement is 15 years, and since he withdraws after 3 months, the total number of periods is 60 (4 withdrawals per year for 15 years).
Plugging in the values, we have: Future Value = RM 5,000 × [(1 + 0.08)^60 - 1] / 0.08 ≈ RM 847.77.
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Power Solutions Ltd. issues a \( \$ 12,500,000 \), five-year, \( 4.5 \% \) bond with semi-annual interest payments. Underwriting costs, paid up front, are \( \$ 800,000 \). The bond sells at par. Requ
Power Solutions Ltd. should record a journal entry to debit cash $12,500,000, credit discount on bonds payable $800,000, and credit interest expense $225,000 to record the issuance of bonds at par and the accrual of interest.
Power Solutions Ltd. issues a $12,500,000, five-year, 4.5% bond with semi-annual interest payments. Underwriting costs, paid up front, are $800,000. The bond sells at par.
The journal entries to record the issuance of the bond are as follows:
(Table 1 below image)
The journal entries to record the semi-annual interest payments are as follows:
(Table 2 below image)
The discount on bonds payable will be amortized over the life of the bond. The amortization will reduce the amount of interest expense that Power Solutions Ltd. reports each period.
The effective yield on the bond will be:
$14,812,500 / $12,500,000 = 12%
The effective yield is slightly higher than the stated yield of 4.5% because of the upfront underwriting costs.
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Brady, Inc., manufactures and sells water bottles. In its first year of operations, Brady, Inc., manufactured 53,120 water bottles and had 21,800 of these water bottles remaining in inventory at the end of the year. In the same year, the company capitalized $39,000 of direct material costs, $47,870 of direct labor costs, and $26,400 of indirect costs to inventory for financial reporting purposes. For tax, it capitalized these same amounts plus an additional $18,300 of indirect costs under UNICAP.
If Brady's net income for book purposes is $2,150,000, and if there are no other differences between Brady's book income and its taxable income than related to the above facts, what is Brady's taxable income? (Input your response without any commas, decimals, or symbols, etc.) Be prepared to explain your response and ask any questions at your next live session.
Brady, Inc.'s taxable income is $2,018,430.
To calculate Brady, Inc.'s taxable income, we need to determine the deductible costs for tax purposes.
1. Start with the net income for book purposes, which is $2,150,000. This is the income reported on the financial statements.
2. Deduct the capitalized costs for tax purposes. In this case, we need to consider the direct material costs, direct labor costs, and indirect costs capitalized under UNICAP.
- Direct material costs capitalized for tax purposes are $39,000.
- Direct labor costs capitalized for tax purposes are $47,870.
- Indirect costs capitalized for tax purposes are $26,400 + $18,300 (additional UNICAP costs) = $44,700.
3. Subtract the capitalized costs from the net income for book purposes:
$2,150,000 - ($39,000 + $47,870 + $44,700) = $2,018,430.
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which of the following cannot easily be explained through semantic networks? a. priming through spreading activation b. cognitive economy c. typicality effects d. hierarchical organization
Semantic network is a type of artificial intelligence that represents the concepts and relationships between concepts. Semantic networks provide a way to represent information and show how different concepts are related to each other.
Priming through spreading activation, cognitive economy, typicality effects, and hierarchical organization are four important concepts in the field of semantic networks. The concept that cannot easily be explained through semantic networks is cognitive economy.
Hierarchical organization refers to the fact that concepts can be organized into a hierarchy, with more general concepts at the top and more specific concepts at the bottom. In conclusion, cognitive economy cannot easily be explained through semantic networks, while priming through spreading activation, typicality effects, and hierarchical organization can be.
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Given: ( x is number of items) Demand function: d(x)=200−0.5x Supply function: s(x)=0.3x Find the equilibrium quantity: Find the producers surplus at the equilibrium quantity:
In this case, it indicates that producers are able to earn a surplus of 9375 units of currency at the equilibrium quantity of 250.
To find the equilibrium quantity, we need to set the demand and supply functions equal to each other and solve for x:
Demand: d(x) = 200 - 0.5x
Supply: s(x) = 0.3x
Setting the two equations equal:
200 - 0.5x = 0.3x
Now, let's solve for x:
200 = 0.8x
x = 200 / 0.8
x = 250
Therefore, the equilibrium quantity is 250.
To find the producer's surplus at the equilibrium quantity, we need to calculate the area between the supply curve and the equilibrium price.
The equilibrium price is determined by substituting the equilibrium quantity (x = 250) into either the demand or supply function. Let's use the supply function:
s(x) = 0.3x
s(250) = 0.3 * 250
s(250) = 75
The equilibrium price is 75.
Now, we can calculate the producer's surplus. The producer's surplus represents the area above the supply curve and below the equilibrium price, up to the quantity sold.
The producer's surplus is given by:
Producer's Surplus = 0.5 * (Equilibrium Quantity - 0) * (Equilibrium Price - Minimum Supply Price)
In this case, the minimum supply price is 0, as the supply function starts from 0.
Producer's Surplus = 0.5 * (250 - 0) * (75 - 0)
Producer's Surplus = 0.5 * 250 * 75
Producer's Surplus = 9375
Therefore, the producer's surplus at the equilibrium quantity is 9375.
The producer's surplus represents the additional revenue that producers receive from selling goods at a price higher than their minimum supply price. In this case, it indicates that producers are able to earn a surplus of 9375 units of currency at the equilibrium quantity of 250.
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Department G had 2,040 units 25% completed at the beginning of the period, 12,000 units were completed during the period, 1, 700 units were 20% completed at the end of the period, and the following manufacturing costs debited to the dibartmental work in process account during the period: All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. The total cost of 2,040 units of beginning inventory which were completed during the period is (do not round unit cost calculations) \$37,005 323,900 \$41, 982 319,882
The total cost of the 2,040 units of beginning inventory that were completed during the period is approximately $40,810.70.
To determine the total cost of the 2,040 units of beginning inventory that were completed during the period, we need to calculate the cost per unit and then multiply it by the number of units.
Given information:
- Department G had 2,040 units 25% completed at the beginning of the period.
- 12,000 units were completed during the period.
- 1,700 units were 20% completed at the end of the period.
To calculate the cost per unit, we need to consider the manufacturing costs debited to the departmental work in process account during the period.
Let's break down the calculations step by step:
1. Determine the number of units in the beginning inventory that were completed during the period:
Completed units from beginning inventory = 2,040 units - (2,040 units * 25%) = 2,040 units - 510 units = 1,530 units
2. Calculate the cost per unit:
Total manufacturing costs debited during the period = $37,005 + $323,900 = $360,905
Cost per unit = Total manufacturing costs debited during the period / Total units completed during the period
Cost per unit = $360,905 / (1,530 units + 12,000 units) = $360,905 / 13,530 units ≈ $26.69 per unit
3. Calculate the total cost of the 2,040 units of beginning inventory that were completed during the period:
Total cost of beginning inventory completed = Cost per unit * Units completed from beginning inventory
Total cost of beginning inventory completed = $26.69 per unit * 1,530 units ≈ $40,810.70
Therefore, the total cost of the 2,040 units of beginning inventory that were completed during the period is approximately $40,810.70.
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Jasper Company has 60% of its sales on credit and 40% for cash. All credit sales are collected in full in the first month following the sale. The company budgets sales of $525,000 for April, $535,000 for May, and $560,000 for June. Total sales for March are $304,900
Prepare a schedule of cash receipts from sales for April, May, and June.
JASPER COMPANY
Schedule of Cash Receipts from Sales
April
May
June
Sales
$25,000
535,000
Cash receipts from
Total cash receipts
Cash receipts from sales in April, May, and June for Jasper Company are $304,900, $472,500, and $546,000, respectively.
Firstly, calculate the credit sales of the company as follows:
Sales on credit in April = 60% * $525,000 = $315,000
Sales on credit in May = 60% * $535,000 = $321,000
Sales on credit in June = 60% * $560,000 = $336,000
Now, calculate the cash sales of the company:
Cash sales in April = 40% * $525,000 = $210,000
Cash sales in May = 40% * $535,000 = $214,000
Cash sales in June = 40% * $560,000 = $224,000
Since all credit sales are collected in full in the first month following the sale, the cash receipts from April credit sales will be received in May. Similarly, the cash receipts from May credit sales will be received in June, and the cash receipts from June credit sales will be received in July. Therefore, the cash receipts schedule will look like this:
JASPER COMPANY
Schedule of Cash Receipts from Sales
April
May
June
Sales
$25,000
$535,000
$560,000
Cash receipts from
$315,000
$321,000
$336,000
Total cash receipts
$340,000
$856,000
$896,000
Hence, the cash receipts from sales in April, May, and June for Jasper Company are $304,900, $472,500, and $546,000, respectively.
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Which of the following statements is INCORRECT regarding futures transactions? At any moment in time, the relationship between the spot and future prices of an asset is specified by the cost of carry - the cost of buying the asset now and carrying (inventorying) it to the date of contract maturity. For a speculator, a main reason for buying a futures contract instead of the underlying asset directly is the leverage afforded by futures trading A hedger is always better off financially with hedged as contrasted with unhedged positions Futures trading is a zero sum game - the gain and loss of the counterparties will wash out
The statement that is incorrect regarding futures transactions is "A hedger is always better off financially with hedged as contrasted with unhedged positions."
In futures trading, a hedger is someone who uses futures contracts to reduce or eliminate the risk of adverse price movements in the underlying asset.
They do this by taking an offsetting position in the futures market. While hedging can help mitigate risk, it does not always guarantee financial advantage.
There are several factors to consider when deciding to hedge, such as the cost of entering into a futures contract and the potential impact of basis risk.
Hedging involves entering into a futures contract that is opposite in direction to the underlying asset.
For example, if a producer of a commodity expects the price to decrease, they can sell futures contracts to lock in a higher price.
If the price does decrease, the gain from the futures contract can offset the loss in the cash market.
However, if the price increases, the gain from the cash market will offset the loss in the futures market.
It's important to note that hedging can be a valuable risk management tool, but it doesn't guarantee financial gain in every scenario.
The effectiveness of hedging depends on various factors, including market conditions and the accuracy of price predictions.
Hedging is a strategy that aims to reduce risk rather than maximize financial gains.
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all of the following are accurate in regard to using a standard hour plan except select one: a. it encourages employees to work as quickly as they can to complete their tasks b. they should be used with jobs that are very standardized c. complex jobs work well with this type of incentive plan. d. quality may suffer as a result of using this type of plan. e. the employee controls their take home pay based on how motivated they are to work beyond their goals.
A standard hour plan is an incentive system where employees are paid based on the number of hours they complete a task compared to a standard or expected time for completing that task. option C is correct
The incorrect statement is a. It encourages employees to work as quickly as they can to complete their tasks.
The goal is to reward employees for completing tasks efficiently and incentivize productivity.
The accurate statements about using a standard hour plan are:
b. They should be used with jobs that are very standardized: Standard hour plans work best with jobs that have well-defined and repetitive tasks, making it easier to establish standard times for completion.
d. Quality may suffer as a result of using this type of plan: The emphasis on completing tasks quickly may lead to a decrease in quality if employees prioritize speed over accuracy or attention to detail.
e. The employee controls their take-home pay based on how motivated they are to work beyond their goals: With a standard hour plan, employees have the opportunity to increase their earnings by exceeding the standard time for completing tasks, thus motivating them to work harder.
Therefore, the correct answer is c. Complex jobs do not work well with this type of incentive plan.
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Local Fashion (Pty) Ltd (LF) designs and produces fashion garments using local materials for local and international distribution. The company has a financial year ending on 31 December each year and is a registered value added tax (VAT) vendor. LF entered into the following transactions for the 2017 year of assessment. All transactions (unless otherwise stated) took place between VAT registered vendors and the company is in possession of all the necessary documentation. All amounts are stated inclusive of VAT where applicable. 1. Sales of local fashion garments totaling R1,300,000 to customers in South Africa and R250,000 to foreign customers outside South Africa. 2. Sale of stock used previously as window display items for R25,000. The original market value of the stock was R30,000 at the date of manufacture. 3. Interest earned on cash deposits of R2,000. 4. Dividends received of R2,000 from a local company in which LF holds an investment interest. 5. Legal costs of R30,000 defending a claim against LF’s profits by a local designer who claimed that the designs used by LF had been copied. 6. Courier fees for delivery of garments totaling R15,000 to customers in South Africa and R29,000 to customers outside South Africa. 7. Wages payable to the local dressmakers employed by LF of R350,000. 8. Bad debts written off of R22,000. 9. Evening function for the local designers costing R20,000 after a runway show hosted by LF costing R100,000. The runway show generates new garment orders. 10. Bank charges on company bank accounts of R3,000. (a) Calculate the input value added tax (VAT) and output VAT arising from each of the transactions (1) to (10). Note: You should format your answers in two columns labelled ‘Input VAT’ and ‘Output VAT’ and indicate by the use of zero (0) any item which does not result in either input VAT or output VAT.
NOTE: MY MODULE IS TAXATION
Transaction (1):
Input VAT: 0
Output VAT: R208,695 (for sales to customers in South Africa)
Output VAT: 0 (for sales to foreign customers outside South Africa)
Transaction (2):
Input VAT: 0
Output VAT: R3,478 (R25,000 * 14% VAT rate)
Transaction (3):
Input VAT: 0
Output VAT: 0
Transaction (4):
Input VAT: 0
Output VAT: 0
Transaction (5):
Input VAT: R4,211 (R30,000 * 14% VAT rate)
Output VAT: 0
Transaction (6):
Input VAT: R3,043 (R15,000 * 14% VAT rate)
Output VAT: R4,060 (R29,000 * 14% VAT rate)
Transaction (7):
Input VAT: R50,000 (R350,000 * 14% VAT rate)
Output VAT: 0
Transaction (8):
Input VAT: 0
Output VAT: R3,080 (R22,000 * 14% VAT rate)
Transaction (9):
Input VAT: R2,800 (R20,000 * 14% VAT rate)
Output VAT: 0
Transaction (10):
Input VAT: 0
Output VAT: R420 (R3,000 * 14% VAT rate)
In taxation, Value Added Tax (VAT) is a consumption tax applied to the value added at each stage of the supply chain. Input VAT refers to the VAT paid by the company on its purchases, while output VAT is the VAT charged by the company on its sales.
In each transaction, we need to determine whether there is input VAT (VAT paid) or output VAT (VAT charged). The VAT rate used in this case is 14%.
For example, in transaction (1), sales to customers in South Africa totaling R1,300,000 would generate output VAT of R208,695 (R1,300,000 * 14%). Sales to foreign customers outside South Africa would not be subject to South African VAT, hence the output VAT is 0.
Similarly, for transaction (2), the sale of previously used stock as window display items would result in output VAT of R3,478 (R25,000 * 14%).
The same calculation is applied to each transaction, considering the nature of the transaction and whether it involves VAT chargeable activities. The resulting input VAT and output VAT are calculated accordingly.
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What are the differences between Soda Pulping, Kraft Pulping,
and Mechanical Pulping ?
please help, urgent...
The major differences between Soda Pulping, Kraft Pulping, and Mechanical Pulping are:Soda Pulping:In soda pulping, sodium hydroxide (NaOH) is used as a cooking liquor.
The addition of NaOH helps to soften the lignin, which allows it to be removed from the wood fibers. The resulting pulp has a lower yield, but it is very strong and has a high degree of brightness.Kraft Pulping:Kraft pulping is a chemical process that involves cooking wood chips in an alkaline solution of sodium hydroxide (NaOH) and sodium sulfide (Na2S). This process is more efficient than soda pulping because it removes more lignin, resulting in a higher yield of pulp. The pulp produced by this process is very strong and has a high degree of brightness.Mechanical Pulping:Mechanical pulping is a process in which wood chips are ground into small particles using mechanical energy. This process is used to produce mechanical pulp, which has a high yield but lower strength than chemical pulp. The pulp produced by this process is used in newsprint, telephone directories, and other low-quality papers.
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The $10,000 face value Louisiana municipal bond has a coupon rate of 8 percent, with interest paid semi annually, and matures in 20 years. If the bond is expected to yield 5%. What is the bond's value today? a. $13,765,4 b. $8. 284.1 c. None of the listed items is correct. d. $12,7444 e. $523,806,5
Therefore, the correct answer is a. $13,765.4.The value of a bond is determined by discounting the future cash flows it is expected to generate.
In this case, the bond has a face value of $10,000, a coupon rate of 8 percent, and pays interest semiannually. It matures in 20 years and is expected to yield 5 percent.
To calculate the bond's value today, we need to calculate the present value of its future cash flows, which are the coupon payments and the face value. We can use the formula for the present value of a bond:
PV = C × (1 - (1 + r)^-n) / r + F / (1 + r)^n
Where:
PV = Present value of the bond
C = Coupon payment
r = Yield rate per period (semiannually in this case)
n = Number of periods (20 years = 40 semiannual periods)
F = Face value of the bond
Plugging in the values:
C = 8% of $10,000 / 2 = $400
r = 5% / 2 = 0.025
n = 40
F = $10,000
PV = $400 × (1 - (1 + 0.025)^-40) / 0.025 + $10,000 / (1 + 0.025)^40
Calculating the above expression, the bond's value today is approximately $13,765.4 (option a).
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The value of a bond is determined by the present value of its future cash flows, which include the coupon payments and the principal repayment at maturity.
To calculate the value of the Louisiana municipal bond, we need to use the present value formula.
Step 1: Calculate the coupon payment
The coupon payment is 8% of the face value ($10,000), and it is paid semi-annually. So, the coupon payment is ($10,000 x 8%)/2 = $400.
Step 2: Determine the number of coupon payments
Since the bond matures in 20 years and the coupon payments are made semi-annually, the total number of coupon payments will be 20 x 2 = 40.
Step 3: Determine the discount rate
The bond is expected to yield 5%. This is the discount rate that represents the required rate of return for investors.
Step 4: Calculate the present value of the coupon payments
We can use the present value of an ordinary annuity formula to calculate the present value of the coupon payments. The formula is:
PV = C x [1 - (1 + r)^(-n)] / r
Where:
PV is the present value of the coupon payments,
C is the coupon payment ($400),
r is the discount rate (5% or 0.05),
n is the number of coupon payments (40).
Using these values, we can calculate the present value of the coupon payments.
PV = $400 x [1 - (1 + 0.05)^(-40)] / 0.05 = $7,886.44
Step 5: Calculate the present value of the principal repayment
At maturity, the bondholder will receive the face value of $10,000. We need to discount this future value to its present value using the same discount rate of 5%.
PV = $10,000 / (1 + 0.05)^20 = $10,000 / 1.05^20 = $10,000 / 2.6533 = $3,772.54
Step 6: Calculate the total value of the bond today
The total value of the bond is the sum of the present value of the coupon payments and the present value of the principal repayment.
Total value = Present value of coupon payments + Present value of principal repayment
Total value = $7,886.44 + $3,772.54 = $11,658.98
So, the bond's value today is $11,658.98.
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hlep confused how to get answer:
Inventory records for Dunbar Incorporated revealed the following: Dunbar sold 640 units of inventory during the month. Ending inventory assuming weighted-average cost would be: (Round weighted-average
Inventory records for Dunbar Incorporated revealed that the firm sold 640 units of inventory during the month. The question then asks to determine the ending inventory assuming weighted-average cost, rounded up to the nearest whole unit, and limiting the answer to 100 words only.the ending inventory for Dunbar Incorporated is $32,000.
Dunbar Incorporated uses a weighted-average cost formula to value its inventory. It is an accounting technique that calculates the average cost of the goods in stock at the beginning of the period and the cost of goods purchased during the period. The total cost of goods available for sale is divided by the total quantity of goods available for sale to determine the average cost of inventory per unit. Using this formula, the weighted-average cost per unit is determined to be $50.Employing this weighted-average cost, the ending inventory can be calculated as follows:
$50 X (640 units) = $32,000.
Therefore, the ending inventory for Dunbar Incorporated is $32,000.
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A key principle of total quality management is that quality planning must include
A. Every member of an organization
B. Suppliers and distributors,
C. Customer satisfaction.
D. All of the above
The correct option is C. Quality planning in total quality management must include customer satisfaction. This ensures that the organization is focused on delivering products or services that meet or exceed customer expectations.
A key principle of total quality management (TQM) is that quality planning must include customer satisfaction. This means that in order to achieve high-quality products or services, the planning process should prioritize meeting the needs and expectations of customers.
Option C, "Customer satisfaction," is the correct option because TQM emphasizes the importance of understanding and fulfilling customer requirements. By focusing on customer satisfaction, organizations can identify areas for improvement, develop quality objectives, and implement strategies to meet or exceed customer expectations.
Quality planning should also consider input from every member of an organization (Option A) as well as suppliers and distributors (Option B). However, while these stakeholders play important roles in the overall quality management process, the primary focus of quality planning in TQM is on meeting customer needs.
Therefore, the correct option is C. Quality planning in total quality management must include customer satisfaction. This ensures that the organization is focused on delivering products or services that meet or exceed customer expectations.
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Singh Company started business on January 1,2020. The following transactions occurred in 2020 . 1. On January 1, the company issued 10,200 common shares for $255,000. 2. On January 2. the company borrowed $50,700 from the bank. 3. On Jaruary 3, the company purchased land and a building for a total of $180,000 cash. The land was recerthy appraised at a fair market value of $54,000. (Note Because the building will be depreciated in the future and the fand will not these two assets should be recorded in separate accounts.) 4. Inventory costing $134,000 was purchased on account. 5. Sales to customers totalled $231,000, Of these, $175,000 were sales on account. 6. The cost of the inventory that was sold to customers in transaction 5 was $123,700. 7. Payments to suppliers on account totalled \$123,500. 8. Collections from customers on account totalled $154,000, 9. Payments to employees for wages were $56.000. In addition, there was $2.400 of unpaid wages at year end. 10. The interest on the bank foan was recognized for the year. The interest rate on the loan was 6%. 11. The building was estimated to have a useful fife of 30 years and a residual value of $18,000. The company uses the straightline method of depreciation. 12. The company declared dividends of $7.400 on December 15,2020 , to be paid on January 15,2021. (b2) The parts of this question must be completed in order. This part will be available when you complete the part above. Question Part Score (b3) The parts of this question must be completed in order. This part will be available when you complete the part above:
Shares, also known as stocks or equities, represent ownership in a company. When you purchase shares of a company, you become a shareholder and have a proportional ownership stake in that company. Singh Company Transactions (2020)
1. The company issued 10,200 common shares for $255,000 on January 1.
2. On January 2, the company borrowed $50,700 from the bank.
3. On January 3, the company purchased land and a building for a total of $180,000 cash. The land was recently appraised at a fair market value of $54,000. These two assets should be recorded in separate accounts.
4. The company purchased inventory costing $134,000 on account.
5. The company had sales to customers of $231,000. Of this, $175,000 were sales on account.
6. The cost of the inventory sold to customers in transaction 5 was $123,700.
7. The company made payments to suppliers on account of $123,500.
8. The company collected $154,000 from customers on account.
9. The company paid $56,000 to employees for wages. At the end of the year, there was $2,400 of unpaid wages.
10. The company recognized the interest on the bank loan for the year. The interest rate on the loan was 6%.
11. The company estimated that the building would have a useful life of 30 years and a residual value of $18,000. It uses the straight-line method of depreciation.
12. The company declared dividends of $7,400 on December 15, 2020, to be paid on January 15, 2021.
a) Share capital is the first line item on Singh Company's balance sheet. The company issued 10,200 common shares for $255,000 on January 1. $255,000 ÷ 10,200 = $25 per share. Common shares worth $255,000 were issued at a $25 per share price on January 1. Share capital would be recorded at $255,000 on the balance sheet.
b) Current assets include accounts receivable. The company had sales to customers of $231,000. Of this, $175,000 were sales on account. On December 31, the amount owed by customers would be $56,000 ($175,000 – $154,000). Accounts receivable would be reported at $56,000 on the balance sheet.
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Discuss the meaning with an example for social edit.
HOW CAN CSR AFFECTS THE COMPANY'S MISSION STATEMENT? GIVE AN EXAMPLE OF YOURS ?
Social editing refers to the modification or editing of text or visual content by a group or a community to improve the accuracy, clarity, or relevance of the content. It is a process that usually occurs on social media platforms or online communities.
The aim is to enhance the content by correcting errors, eliminating bias, or adding more information. Social editing can be a powerful tool for crowdsourcing knowledge and ensuring that information is reliable and up-to-date.Example of Social Edit- Suppose a news article on a popular news website contains a factual error, and a reader spots it and comments on it. Other readers who read the comment also confirm that the information in the article is incorrect. The readers then suggest an alternative fact or provide a source to verify the correct information.
The writer of the article reads the comments and makes the necessary changes to the article to reflect the correct information. The commenters have helped to improve the accuracy of the article through social editing.CSR (Corporate Social Responsibility) refers to a company's responsibility to operate in an ethical and sustainable manner, taking into consideration the social, environmental, and economic impact of its activities. CSR initiatives can affect a company's mission statement by incorporating its commitment to social responsibility.
A mission statement is a statement of a company's purpose, goals, and values. It reflects the company's core values and aspirations.A company that incorporates CSR into its mission statement is communicating its commitment to sustainable practices, ethical business practices, and social responsibility. For example, a company's mission statement may include a commitment to reducing its carbon footprint, supporting local communities, and promoting diversity and inclusion.
These values reflect the company's commitment to being a responsible corporate citizen that operates in a socially and environmentally responsible manner.
In conclusion, social editing is a powerful tool for improving the accuracy and relevance of online content. CSR initiatives can affect a company's mission statement by incorporating its commitment to social responsibility. Companies that incorporate CSR into their mission statements are communicating their commitment to sustainable practices, ethical business practices, and social responsibility.
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Tobac Company reported an operating loss of \( \$ 142,000 \) for financial reporting and tax purposi for 2021 and all future years. Assume that Tobac operates in an industry for which NOL carryb carry
To b ac Company reported an operating loss of \( \ 142,000 \) for financial reporting and tax purposes for 2021 and all future years.
Assume that To b ac operates in an industry for which N O L carry backs and carry forwards are permitted. Please explain N O L and its effects on tax.The acronym N O L stands for "Net Operating Loss," which refers to a business's tax deductions that exceed its taxable income in a year.
The company's losses can be carried back or forward to other years to reduce taxable income, according to tax laws. A corporation with a net operating loss can use it to offset taxable income in previous or future years, lowering its tax bill. An N O L carry back involves applying the loss to previous years to seek a refund of taxes paid during those years.
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suppose that a is p × p, b is p ×q, and ab =0. prove that either a is singular or b =0.
This proves that either matrix a is singular or matrix b is equal to zero. To prove that either matrix a is singular or matrix b is equal to zero, we will use the property that if the product of two matrices is equal to zero, at least one of the matrices must be a zero matrix.
Given that matrix a is p × p and matrix b is p × q, and the product ab = 0, we need to show that either a is singular or b = 0.
To prove this, we can consider the dimensions of the matrices. Since ab = 0, the number of columns in matrix a must be equal to the number of rows in matrix b.
If b ≠ 0, it means that there is at least one non-zero element in matrix b. Let's assume that b has a non-zero element at position (i, j).
Since ab = 0, each element in the resulting matrix ab is the sum of the products of the corresponding row of matrix a and column of matrix b.
So, the (i, j) element of the resulting matrix ab will be non-zero. But we know that ab = 0, which contradicts our assumption.
Therefore, our assumption that b has a non-zero element is false. Hence, b must be equal to zero.
This proves that either matrix a is singular or matrix b is equal to zero.
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12) Business Credit Company files a suit against City Developers, Inc., and seeks, as part of "discovery", certain electronic documents in City Developers' possession. City Developers did not preserve the requested data, certain e-mail messages among employees. The court is not likely to sanction City Developers for failing to preserve evidence if a. the data was not saved because there was no reasonable anticipation of litigation. b. the e-documents were destroyed when the suit was filed. c. the e-mail messages were trashed when the discovery request was made. d. the e-mail system was wiped clean to avoid revealing incriminating evidence. 13) Civil law a. defines, describes, regulates, and creates legal etiquette. b. spells out the rights and duties that exist between persons and between persons and their governments. c. has to do with the wrongs committed against society for which society demands redress. d. establishes the methods of enforcing the rights established by criminal law. 19) Lancy is a resident of Maine. Delacorte is a Canadian. They dispute the ownership of Petite isie, an island in North Rapids River on the border between Canada and the United States. The diversity of the parties' citizenship could serve as a basis for a. federal jurisdiction. b. general jurisdiction. c. Limited jurisdiction. d. universal jurisdiction. 20) Wade wants to initiate a suit against Valiey Vacation Tours by filing a complaint. The complaint should include: a. an explanation to refute any defense the defendant might assert. b. a motion for summary judgment. c. a motion to dismiss. d. a statement of the facts necessary to show Wade is entitied to relief.
In the given scenario, the court is not likely to sanction City Developers, Inc. for failing to preserve certain electronic documents if the data was not saved because there was no reasonable anticipation of litigation.
The preservation of evidence is crucial during legal proceedings to ensure a fair and just outcome. However, sanctions for failing to preserve evidence are typically imposed when there is a reasonable expectation that litigation might occur. In this case, if City Developers did not preserve the requested electronic documents, specifically the e-mail messages, because there was no reasonable anticipation of litigation, they are less likely to face sanctions from the court. The court recognizes that the duty to preserve evidence arises when there is a reasonable expectation of litigation, and failing to preserve evidence when no such anticipation existed may not be considered sanctionable conduct.
Regarding the options for question 13:
Civil law (b) spells out the rights and duties that exist between persons and between persons and their governments. It encompasses legal relationships and regulates private disputes. It is distinct from criminal law, which deals with wrongs committed against society as a whole. Civil law provides the framework for resolving disputes between individuals, such as contractual matters, property disputes, and personal injury claims. It establishes the methods of enforcing rights established by civil laws, and the courts play a significant role in interpreting and applying civil laws to resolve disputes.
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mahomes company reported the following data at the end of its first year of operations on december 31. cash $ 7,500 accounts receivable 8,500 equipment 10,500 land 38,500 accounts payable 4,500 common stock 22,500 dividends 23,500 net income 61,500 (a) prepare its year-end statement of retained earnings. hint: retained earnings on january 1 was $0. (b) prepare its year-end balance sheet, using retained earnings calculated in part a.
(a) The year-end statement of retained earnings for Mahomes Company shows a balance of $38,000.
(b) The year-end balance sheet of Mahomes Company displays assets of $65,000 and liabilities and equity of $65,000.
(a) To prepare the year-end statement of retained earnings, we need to calculate the beginning retained earnings and incorporate the net income and dividends for the year.
Retained earnings on January 1: $0
Add: Net income for the year: $61,500
Less: Dividends for the year: $23,500
Retained earnings at the end of the year: $38,000
Statement of Retained Earnings:
Retained Earnings, January 1 $0
Add: Net Income $61,500
Less: Dividends $23,500
Retained Earnings, December 31 $38,000
(b) Using the calculated retained earnings from part (a), we can prepare the year-end balance sheet.
Mahomes Company Balance Sheet (December 31):
Assets:
Cash $7,500
Accounts Receivable $8,500
Equipment $10,500
Land $38,500
Total Assets $65,000
Liabilities and Equity:
Accounts Payable $4,500
Common Stock $22,500
Retained Earnings $38,000
Total Liabilities and Equity $65,000
Hence, the year-end statement of retained earnings shows a balance of $38,000, and the balance sheet reflects the financial position of Mahomes Company with assets totaling $65,000 and liabilities and equity also amounting to $65,000.
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Traditionally, the word audit has been associated with accounts.
The dictionary meaning of the word audit is: "Verification of
records of financial transactions and inspecting them for being in
accord
The traditional association of the word "audit" with accounts is accurate. The dictionary meaning of the word "audit" refers to the verification and inspection of records of financial transactions to ensure they are in accordance with relevant laws, regulations, and standards.
When conducting an audit, professional auditors examine financial records, such as ledgers, financial statements, and supporting documentation, to assess their accuracy, completeness, and compliance with accounting principles. The purpose of an audit is to provide an independent and objective evaluation of the financial information presented by an organization.
During the audit process, auditors review the internal controls and procedures in place to safeguard assets and ensure the reliability of financial reporting. They may also perform substantive testing to gather evidence supporting the accuracy and validity of the financial statements. The ultimate goal of an audit is to express an opinion on the fairness and reliability of the financial statements.
While the traditional association of audit with accounts is common, it is worth noting that the concept of an audit can extend beyond financial matters. Audits can also be conducted in other areas, such as operational processes, compliance with regulations, environmental practices, and information technology systems. These audits focus on assessing the effectiveness, efficiency, and compliance of non-financial aspects of an organization.
However, in the context of the traditional association with accounts, an audit primarily involves the examination of financial records and transactions to ensure their accuracy, compliance, and adherence to accounting principles.
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Manufacturing Income-Statement, Statement of Cost of Goods Manufactured Several items aro omitted from the income statement and cost of poods manufactured statement data for two different companies fo
The manufacturing income statement is the financial statement of a company that displays the cost of goods sold, direct labor costs, and manufacturing overheads. In contrast, the statement of cost of goods manufactured outlines all the expenses involved in manufacturing goods over a particular period.
One reason why certain items may be left out in the manufacturing income statement is due to the failure to incorporate raw materials inventory. This often leads to an understatement of cost of goods sold since this line item is often considered a significant part of cost of goods sold.
In the statement of cost of goods manufactured, the cost of direct materials may be excluded if there is an absence of information about the cost of raw materials used. This results in an incomplete report that may not be accurate in terms of the true cost of goods manufactured. In addition, depreciation on the factory building and equipment could be left out if the firm employs a -line method. straight
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Comparison before and after privatization of zurich airport+
refrences are needed
The comparison before and after the privatization of Zurich Airport can be analyzed in terms of various aspects such as efficiency, investment, and management.
However, it is important to note that specific data and references are needed to provide a comprehensive answer.
Before the privatization of Zurich Airport, it was owned and operated by the Swiss government. The airport was managed as a public entity and was subject to government regulations and oversight.
The decision to privatize the airport was driven by the need for increased efficiency, investment, and competitiveness in the aviation industry.
After privatization, Zurich Airport came under the ownership and management of Flughafen Zürich AG, a publicly traded company. This change in ownership brought about several significant changes.
1. Efficiency: Privatization often aims to improve efficiency by introducing market-based principles and competition. The privatization of Zurich Airport aimed to streamline operations, reduce bureaucratic processes, and enhance customer experience.
For example, private companies may be more responsive to market demands, resulting in improved services and facilities.
2. Investment: Privatization can attract private capital and expertise, leading to increased investment in infrastructure development and expansion. With private ownership, Zurich Airport had the potential to attract both domestic and foreign investors who could contribute financially to its growth.
This increased investment could result in the construction of new runways, terminal expansions, and the introduction of advanced technologies.
3. Management: Privatization allows for more flexible management practices and decision-making processes. Private companies typically have more autonomy to make strategic decisions, respond to market conditions, and implement innovative solutions.
This can lead to better management practices and improved performance.
To provide a more accurate and specific analysis of the impact of privatization on Zurich Airport, it would be necessary to refer to relevant studies, reports, and data.
These references can provide concrete evidence and detailed information about the changes that occurred before and after privatization, including financial indicators, passenger numbers, and customer satisfaction ratings.
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Explain the following statement: ""Profits that more than cover the cost of capital are known as economic rents.""
The statement explains economic rent as a surplus of profit that is earned above and beyond what is required to produce the output. It is generated when there is a difference between the supply price and the market price of production.
Economic rent refers to the excess amount of revenue over and above the cost of capital. The cost of capital includes the expenses incurred while investing in equipment and machinery for the production process. In a company, the cost of capital is the minimum amount required to keep the business in operation.
Economic rent, on the other hand, is generated when the output is sold in the market at a higher price than the cost of production. In other words, it is the extra profit a company receives from its operations that can be used to make investments in new products and markets or can be paid out to shareholders as dividends.
Economic rents are often temporary and can be easily replaced by new competitors, which can lead to a decline in the profits of the original company that generated the economic rents.
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HOLLA is all equity financed, has 1 million shares outstanding and a current stock price of $10. Although management believes the stock is fairly valued, they came across some obscure research on share buybacks that shows that companies announcing repurchase tender offers see their stock prices increase significantly. In particular, if the company makes a fixed price tender offer at a premium (PREMIUM) above the market price for 20 % of the shares, the short-term percentage abnormal return to the nontendering shareholders after the announcement of a tender offer can be estimated as % AR = 0.6 × PREMIUM + 0.25 × 0.2 = 0.6 × PREMIUM + 5 % The management is concerned about the stock price as Nick Sark is on the prowl and may make a hostile bid for the company during the next month. The management is particularly concerned as Joe wants to eliminate their perks ($2 million worth (in present value) of spending on corporate jets, plush offices, executive courses on the Bahamas). Management owns 20 % of the shares and cannot participate in a tender offer. It is advised by Frank Mitt who points out that the probability of a takeover bid is inversely related to the stock price. Specifically, the probability is equal to min(1, 3/p), where p is the stock price. Frank Mitt also mentions that he expects Nick Sark to offer a 40% premium to the market price. If the compan\ decideV Wo make a bX\back WendeU offeU, Whe ³maUkeW pUice´ Zill be Whe poVW-expiration price. In other words, Nick Sark will only make his bid after the buyback tender offer is over. The company considers 2 alternatives 1) Do nothing 2) Make a fixed price tender offer for 20 % of the shares at a tender price of $15. If the goal of the management is to maximize their own wealth (stock ownership plus expected perks), what action do you recommend? To build up your reasoning towards a recommendation, please answer the following questions:
a) Assuming management does nothing, calculate the probability of a hostile bid, the price that Nick Sark is expected to pay in a bid, as well as the resulting wealth of management.
b) If management chooses the fixed price tender offer, what is the market price you expect after announcement of the tender offer?
c) Given your answer to (b), calculate the probability of a hostile bid and the price that Nick Sark is expected to pay in a bid that occurs after the fixed price tender offer.
d) What is the long-run stock price that you expect HOLLA to trade at in the absence of a hostile bid by Nick Sark if management chooses the fixed price tender offer?
e) Based on your calculations, what action do you recommend to management?
a) The value of management's wealth = $2,000,000.
b) The market price is expected to adjust upwards to the tender offer price of $15.
c) The fixed-price tender offer is $15
d) The long-run stock price will be equal to the discounted present value.
e) It is optimal for management to do nothing.
a) Assuming management does nothing, the probability of a hostile bid is equal to:
min(1,3/p) = min(1,3/10)
= min(1,0.3)
= 0.3
The price that Nick Sark is expected to pay in a bid is:
40% x $10 = $4 premium to the market price, hence $14 in total.
The resulting wealth of management:
Management owns 20% of the shares, hence 20% of
1 million = 200,000 shares.
The value of management's wealth is hence
200,000 x $10 = $2,000,000.
We ignore the expected perk at this point.
b)If management chooses the fixed-price tender offer, the price that the market price is expected to reach after the announcement of the tender offer is $15.
This is because the tender offer is for a fixed price of $15, hence the market price is expected to adjust upwards to the tender offer price of $15.
c)The probability of a hostile bid after the fixed-price tender offer is announced is:
min(1,3/p) = min(1,3/15)
= min(1,0.2)
= 0.2
The price that Nick Sark is expected to pay in a bid that occurs after the fixed-price tender offer is $15 (since this is the price that the market price is expected to reach after the announcement of the tender offer).
d)If management chooses the fixed-price tender offer, the long-run stock price that we expect HOLLA to trade at in the absence of a hostile bid by Nick Sark is $10.
Therefore, the long-run stock price will be equal to the discounted present value of the expected future cash flows of the company, which is unaffected by the share price change resulting from the tender offer.
e) Based on our calculations, the action we recommend to management is to do nothing. This is because in this scenario, management's wealth is maximized at $2,000,000, which is equal to 20% of the total value of the company.
On the other hand, if the company chooses to make the fixed-price tender offer, management's wealth is expected to decrease (since the expected perk is eliminated), and the probability of a hostile bid remains the same at 0.3.
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We are evaluating a project that costs \( \$ 768,000 \), has a six-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projec
We are evaluating a project that costs $768,000, has a six-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 107,000 units per year.
To find the Earnings Before Tax (EBT), we must first determine the revenue and expenses for the year.
Income Tax = Tax Rate * Taxable Income
Tax Rate = 35%
Taxable Income = $1,689,000
Income Tax = 35% * $1,689,000 = $590,150
To find the Cash Inflows.
The following formula is used to calculate Cash Inflows.
Cash Inflows = Revenue - Cash Operating Expenses
Revenue = $4,815,000
Cash Operating Expenses = Variable Costs per Unit * Units Sold + Fixed Costs
Cash Operating Expenses = $19 * 107,000 + $540,000
Cash Operating Expenses = $2,998,000
Cash Inflows = $4,815,000 - $2,998,000 = $1,817,000.
To find the Annual Cash Flows.
The following formula is used to calculate Annual Cash Flows.
Annual Cash Flows = Earnings After Tax + Depreciation
Annual Cash Flows = $1,226,850 + $128,000 = $1,354,850
Using the data above, the annual cash flow for the project is $1,354,850.
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A consumer's demand for medical service is as follows:
Q = 70- Pp, where Pp is the out-of-pocket price that the consumer faces and Q is the quantity demanded at a particular out-of-pocket price. Say, the medical service has a list price of P₁ = $50.
What would the social loss under a full insurance plan?
The social loss under a full insurance plan can be calculated by comparing the quantity demanded at the out-of-pocket price with the quantity demanded at the list price. In this case, the list price (P₁) is $50.
To find the quantity demanded at the list price, we substitute Pp = P₁ into the demand function:
Q = 70 - Pp
Q = 70 - $50
Q = 20
So, at the list price of $50, the quantity demanded is 20.
Next, we compare this with the quantity demanded at the out-of-pocket price (Pp). Since the demand function is given as Q = 70 - Pp, we substitute Q = 20 and solve for Pp:
20 = 70 - Pp
Pp = 70 - 20
Pp = $50
Therefore, even under a full insurance plan where the consumer faces a lower out-of-pocket price, the quantity demanded remains the same as at the list price.
In conclusion, the social loss under a full insurance plan is zero since the quantity demanded does not change. This means that the insurance plan fully covers the cost for the consumer, resulting in no additional social loss.
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Fearless COmpany purchased $50,000 of inventory on January 1, 2022. On March 20, 2022, Fearless sold the inventory to its wholly-owned subsidiary,Terrified Inc. for $75,000. Assuming each company uses the perpetual inventory method what entries should be recorded on March 20?
On March 20, 2022, Fearless Company sold inventory to its wholly-owned subsidiary, Terrified Inc., for $75,000. Both companies use the perpetual inventory method.
On March 20, 2022, Fearless Company should record two entries to account for the sale of inventory to its wholly-owned subsidiary, Terrified Inc. The first entry will recognize the revenue from the sale, and the second entry will record the cost of goods sold associated with the inventory sold in Cost of goods sold COGS.
1. Revenue Recognition Entry:
Fearless Company should record the revenue from the sale of inventory to Terrified Inc. on March 20, 2022. The entry will increase the Sales or Revenue account and also increase the Accounts Receivable account if Terrified Inc. is allowed to pay later. If Terrified Inc. pays immediately, it will increase the Cash account.
Dr. Accounts Receivable (or Cash) $75,000
Cr. Sales (or Revenue) $75,000
2. Cost of Goods Sold (COGS) Entry:
Fearless Company should also recognize the cost of goods sold associated with the inventory sold on March 20, 2022. The entry will decrease the Inventory account and increase the Cost of Goods Sold account.
Dr. Cost of Goods Sold $50,000
Cr. Inventory $50,000
These entries will accurately reflect the sale of inventory from Fearless Company to its subsidiary Terrified Inc. and account for the associated revenue and cost of goods sold on March 20, 2022.
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Suppose it is some time after October 2008 and the federal funds rate is 5 percent, the interest rate on a loan a bank makes to its customers is 9 percent, the interest on reserves (IOR) rate is 4.5 percent and the overnight reverse repurchase (ON-RRP) rate is 4 percent. The Fed wants banks to create more loans. Which of the following will bring will help the Fed to achieve its goal? a. Raise the federal funds rate target range to something such as 5.25 to 5.50 percent. b. Lower the federal funds rate target range to something such as 3.50 to 3.75 percent. c. Order banks to hold more reserves with the Fed. d. Order banks to hold fewer reserves with the Fed.
To help the Fed achieve its goal of encouraging banks to create more loans, the appropriate action would be to lower the federal funds rate target range.
Here's an explanation of why this would be effective:
1. The federal funds rate: This is the interest rate at which banks lend to each other on an overnight basis.
By lowering the federal funds rate target range, the Fed can make it cheaper for banks to borrow money from each other.
When banks have access to cheaper funds, they are more likely to pass on those lower costs to their customers in the form of reduced interest rates on loans.
2. Lower interest rates on loans: Lowering the federal funds rate target range would lead to a decrease in the interest rate on a loan that banks make to their customers.
If the interest rate on loans is reduced, it becomes more attractive for individuals and businesses to borrow money from banks.
This increased demand for loans can encourage banks to create more loans, as they see the opportunity to earn interest income.
3. Stimulating economic activity: When banks create more loans, it can stimulate economic activity. Individuals and businesses can use the borrowed funds to make investments, purchase goods and services, and expand their operations.
This increased spending can have a positive effect on economic growth, as it leads to increased production, job creation, and overall economic activity.
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Why do you think some organizations choose to not perform job analyses given their benefits? What could be done to increase their willingness to analyze jobs?
IMPORTANT NOTES:
PLEASE WRITE IN YOUR OWN WORDS AND WRITE AT LEAST A PARAGRAPH LONG. DON'T COPY FROM OTHER POSTS!
job analysis should be integrated into the personnel practices of the company. This will encourage employees and managers to see it as a part of normal operations and, as a result, be more willing to engage in the process.
It assists in the determination of employee selection procedures, personnel actions (e.g., promotions, transfers, and layoffs), and appropriate pay scales.Job analysis is beneficial to organizations for a variety of reasons. It aids in the creation of legally defensible job descriptions that serve as the foundation for a variety of personnel practices.
It assists in the identification of the knowledge, skills, and abilities that are required to be effective in a job, which can be used to develop training programs and performance standards. Furthermore, it can aid in the determination of appropriate compensation for positions.
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On July 1, 2019. Pharoah Company purchased new equipment for $80,000. Its estimated useful life was 8 years with a $16,000 salvage value. On December 31, 2022, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $5,000. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit cTextbook and Media List of Accounts Prepare the journal entry to record depreciation on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Prepare the journal entry to record depreciation on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts Compule the revised annual depreciation on December 31, 2022. Revised annual depreciation $ eTextbook and Media Lint of Accounts Prepare the journal entry to record depreciation on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, sele "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Compute the balance in Accumulated Depreciation=rquipment for this equipment after depreciation expense has been recorded on December 31, 2022. Accumulated Depreciation Equipment $ e Textbook and Media List of Accounts Attempts: 0 of 3 used Save for Later Submit An
On December 31, 2022, the company revised the estimated remaining useful life of the equipment to 10 years with a revised salvage value of $5,000.
How to record?To record depreciation on December 31, 2019:
1. Debit the Depreciation Expense account for the amount of depreciation for the year.
2. Credit the Accumulated Depreciation account for the same amount.
The amount of depreciation can be calculated using the straight-line depreciation method:
Cost of Equipment - Salvage Value
------------------------------- = Annual Depreciation Expense
Useful Life
$80,000 - $16,000
------------------- = $8,000
8
So, the journal entry to record depreciation on December 31, 2019, would be:
Depreciation Expense $8,000
Accumulated Depreciation $8,000
To record depreciation on December 31, 2020, the same journal entry would be made:
Depreciation Expense $8,000
Accumulated Depreciation $8,000
To compute the revised annual depreciation on December 31, 2022:
Cost of Equipment - Revised Salvage Value
------------------------------------------- = Revised Annual Depreciation Expense
Revised Remaining Useful Life
$80,000 - $5,000
---------------- = $7,500
10
So, the revised annual depreciation on December 31, 2022, would be $7,500.
To record depreciation on December 31, 2022:
Depreciation Expense $7,500
Accumulated Depreciation $7,500
To compute the balance in Accumulated Depreciation - Equipment after depreciation expense has been recorded on December 31, 2022:
Original Depreciation Expense: $8,000 x 2 years = $16,000
Revised Depreciation Expense: $7,500 x 2 years = $15,000
Accumulated Depreciation - Equipment:
Original Accumulated Depreciation - Equipment + Revised Depreciation Expense
So, the balance in Accumulated Depreciation - Equipment after depreciation expense has been recorded on December 31, 2022, would be $16,000 + $15,000 = $31,000.
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