The project's viability does not depend on the ability to resell the facility, and the IRR and benefit-cost ratio, including reclamation, need further calculations based on the provided data.
To answer questions 15 to 17, let's analyze the project using a 7% discount rate.
Does this project depend on the ability to resell the facility at the end of its useful life? Why or why not?
No, this project does not depend on the ability to resell the facility. The viability of the project is determined based on the costs and benefits incurred during its lifespan. The NPV and IRR calculations do not consider the resale value of the facility at the end of its useful life.
What is the IRR (including reclamation)?
To calculate the IRR, we need to find the discount rate that equates the present value of costs to the present value of benefits, including the reclamation value of $10 million in year 12. By summing the present values of costs and benefits at a 7% discount rate and finding the discount rate that makes them equal, we can determine the IRR.
What is the benefit-cost ratio (including reclamation)?
To calculate the benefit-cost ratio (BCR), we divide the present value of benefits (including the reclamation value) by the present value of costs. The BCR provides a measure of the economic efficiency of the project, with a ratio greater than 1 indicating a favorable outcome.
Hence, the viability of the project does not depend on the ability to resell the facility. The IRR, including reclamation, can be calculated by finding the discount rate that equates the present values of costs and benefits. The BCR, including reclamation, is obtained by dividing the present value of benefits by the present value of costs. These metrics provide insights into the financial attractiveness and efficiency of the project.
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the number of proven causes on a cause-effect diagram after brainstorming and 5-whys is
The number of proven causes on a cause-effect diagram after brainstorming and 5-whys can vary depending on the specific situation and problem being analyzed.
The cause-effect diagram, also known as the Ishikawa or fishbone diagram, is a visual tool used to identify and analyze potential causes of a problem or issue. It helps teams to brainstorm and organize their ideas by categorizing possible causes into different branches.
After brainstorming and utilizing the 5-whys technique, which involves repeatedly asking "why" to identify root causes, the cause-effect diagram is populated with potential causes.
However, it is important to note that not all of these causes may be proven or validated.
The number of proven causes on the diagram can vary based on several factors, including the complexity of the problem, the depth of analysis conducted, the availability of data and evidence, and the expertise of the team involved. Some causes identified during brainstorming may be eliminated or disproven through further investigation and analysis.
The goal of using the cause-effect diagram, along with brainstorming and the 5-whys technique, is to identify the most probable and significant causes that contribute to the problem. It helps teams to focus their efforts on addressing these key causes rather than attempting to tackle all potential causes identified.
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Organizations that are successful in motivating compliance with rules pay careful attention to which of these following aspects. Select one: a. Preparation-Presentation-Reinforcement-Enforcement-Leadership Example b. Enforcement c. Presentation-Preperation-Reinforcement-Discipline d. Font size e. Paper used f. Preperation-Presentation-Documentation-Enforcement g. Ink color h. Leadership Example
Organizations that are successful in motivating compliance with rules pay careful attention to several aspects. One possible answer that aligns with these aspects is option f: Preparation-Presentation-Documentation-Enforcement.
1. Preparation: Successful organizations understand the importance of preparing employees for compliance. They provide training sessions, workshops, or informational materials to educate employees about the rules and regulations they need to follow. This ensures that everyone is aware of the expectations and understands the reasons behind them.
2. Presentation: Effective communication is key to motivating compliance. Organizations present the rules and regulations in a clear and understandable manner. They use various methods such as presentations, visuals, and examples to convey the information effectively. This helps employees comprehend the rules and encourages their adherence.
3. Documentation: Organizations that value compliance maintain proper documentation. They have well-documented policies and procedures that outline the rules and guidelines. This documentation serves as a reference for employees, ensuring consistency in compliance across the organization.
4. Enforcement: To motivate compliance, organizations must enforce the rules consistently and fairly. They have systems in place to monitor compliance, detect violations, and take appropriate actions when necessary. This may include disciplinary measures or corrective actions to address non-compliance effectively.
By paying attention to these aspects - Preparation, Presentation, Documentation, and Enforcement - organizations can create an environment where compliance is valued and encouraged. This approach helps to motivate employees to adhere to the rules, leading to a successful and compliant organization.
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a situation is described in detail and then students discuss it. this training method is called .
The training method described where a situation is discussed in detail by students is called the Case Study method.
What is the Case Study method?A case study is a form of qualitative research that focuses on a person, organization, or phenomenon. Case studies are widely used in social, clinical, educational, and business research.
They provide an in-depth study of a specific situation, group, or event.
A case study approach could be useful in different areas such as market research, healthcare, political science, business, and management. It is often used as a teaching tool in business and management schools.
Students are given case studies to analyze the problem, identify alternatives, and make recommendations.
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In each of the following situations, advise whether or not a successful tort claim exists. If there is a successful tort claim; name that tort.
Peter gets into an argument with Paul in a bar and Paul threatens to punch Peter, but does not follow through on the threat.
As a prank, Roger throws eggs at his neighbour’s window.
Carl designs an elaborate eavestrough system that diverts all snow and rainwater that falls on his property onto his neighbour’s driveway.
Sue, the office gossip, learns of your romantic relationship with a co-worker and writes an accurate article about it in the office newsletter.
John convinces Keith to leave his current job and work for John.
No successful claim: Verbal threat, Successful claim: Vandalism, Successful claim: Nuisance, No successful claim: Accurate article, No successful claim: Persuading to change jobs.
In the given situations:
1. Peter gets into an argument with Paul in a bar, and Paul threatens to punch Peter but does not follow through on the threat.
- There may not be a successful tort claim in this situation. Paul's threat, without any actual physical harm or assault, may not give rise to a specific tort claim. However, it's essential to review local laws to determine if there are any provisions regarding threats or verbal harassment that could apply.
2. Roger throws eggs at his neighbor's window as a prank.
- There may be a successful tort claim in this situation. Roger's action of throwing eggs at his neighbor's window can be considered an act of vandalism or property damage, potentially falling under the torts of trespass to chattels or trespass to property.
3. Carl designs an elaborate eavestrough system that diverts all snow and rainwater onto his neighbor's driveway.
- There may be a successful tort claim in this situation. Carl's deliberate design of the eavestrough system, causing water and snow to divert onto his neighbor's driveway, could be seen as an unreasonable interference with the neighbor's property rights, constituting the tort of nuisance.
4. Sue, the office gossip, learns of your romantic relationship with a co-worker and writes an accurate article about it in the office newsletter.
- There may not be a successful tort claim in this situation. Sue's action of writing an accurate article about your romantic relationship, without defamatory statements or invasion of privacy, may not give rise to a viable tort claim.
5. John convinces Keith to leave his current job and work for John.
- There may not be a successful tort claim in this situation. John's persuasion for Keith to change jobs, without fraudulent misrepresentation or interference with contractual relations, might not amount to a tort claim. It is generally accepted in business for individuals to recruit employees from other companies, but local employment laws and existing contractual obligations should be considered.
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examples should be included
Economic Development in Developing Countries Economic development, the process whereby simple, low-income national economies are transformed into modern industrial economies. Although the term is some
Traditional Society: In this stage, economies are primarily agrarian, and the majority of the population is engaged in subsistence agriculture. A good example is an underdeveloped rural area in a developing country where farming is the main source of income and technology adoption is limited.
Preconditions for Take-off: During this stage, countries begin to experience industrialization and economic diversification. For example, in many African countries, there has been an increase in the development of manufacturing industries and the establishment of infrastructure projects to support economic growth.
Dominance of Large Corporations: In developing countries, large multinational corporations often play a significant role in shaping the economic landscape. For instance, in the manufacturing sector of developing countries like China, multinational corporations have established factories and production facilities, contributing to job creation and export-oriented growth.
Technological Advancements: Technological advancements can drive economic development in developing countries. Mobile banking and digital payment systems have revolutionized financial services in countries like Kenya, where the mobile money platform M-Pesa has provided access to financial services for individuals previously excluded from the formal banking system.
Comparing Domestic and Global Economic Environments:
Domestic Economic Environment (e.g., United States):
The United States is a post-industrial economy characterized by high levels of technological advancement, service-based industries, and consumer culture. For example, in the fast-casual restaurant industry, companies like Chipotle have leveraged technology, such as mobile ordering and delivery services, to cater to consumer demands and enhance the dining experience.
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managers should view the concept of the optimal capital structure as all of the following, except:
Managers should view the concept of the optimal capital structure as all of the following, except a fixed and unchangeable target.
The optimal capital structure refers to the ideal mix of debt and equity financing that maximizes a company's value and minimizes its cost of capital. It is an important financial decision that managers need to consider.
However, it is crucial to note that the optimal capital structure is not a fixed and unchangeable target. Instead, it is a dynamic concept that can evolve over time due to various factors, such as changes in market conditions, business risks, growth opportunities, and financial needs.
Managers should view the concept of the optimal capital structure as flexible and adaptable to the specific circumstances of the company. It is not a one-size-fits-all approach and may vary across industries and companies.
The optimal capital structure can be influenced by factors like the company's growth plans, profitability, cash flow generation, asset structure, industry norms, and investor preferences.
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Indicate how each of the following transactions would affect Blossom Ltd.’s statement of income, statement of financial position, and statement of cash flows. If there would be no effect, then state that.
a. Blossom sold a piece of equipment for $33,000. The equipment had originally cost $173,000 and had a carrying amount of $42,000 at the time it was sold.
b. Blossom purchased a new piece of equipment to replace the equipment that had been sold. The new equipment had a cost of $232,000.
c. Blossom recorded the annual depreciation on its equipment in the amount of $123,000.
a. Statement of Income: The sale would result in a gain or loss, affecting net income.
Statement of Financial Position: The carrying amount of the equipment would be removed.
Statement of Cash Flows: Cash from the sale would be a cash inflow from investing activities.
b. No effect on the statement of income.
The new equipment's cost would be added to the equipment section in the statement of financial position.
Cash paid for the new equipment would be a cash outflow from investing activities.
c. Depreciation would be recorded as an operating expense in the statement of income.
Accumulated depreciation on the equipment would increase in the statement of financial position.
No effect on the statement of cash flows.
a. Statement of Income:
The sale of the equipment would result in a gain or loss, which would be recorded in the statement of income. The gain or loss would be calculated as the selling price ($33,000) minus the carrying amount ($42,000).
The gain or loss would be reported as a non-operating item.
Statement of Financial Position:
The carrying amount of the equipment would be removed from the statement of financial position.
The cash received from the sale of the equipment ($33,000) would be added to the cash and cash equivalents section.
Statement of Cash Flows:
The cash received from the sale of the equipment ($33,000) would be included as a cash inflow from investing activities.
b. Statement of Income:
The purchase of the new equipment would not directly impact the statement of income.
Statement of Financial Position:
The cost of the new equipment ($232,000) would be added to the equipment or property, plant, and equipment section of the statement of financial position.
The cash paid for the new equipment would be deducted from the cash and cash equivalents section.
Statement of Cash Flows:
The cash paid for the new equipment ($232,000) would be included as a cash outflow from investing activities.
c. Statement of Income:
The annual depreciation expense ($123,000) would be recorded as an operating expense in the statement of income.
Statement of Financial Position:
The accumulated depreciation on the equipment would increase by the amount of the depreciation expense.
Statement of Cash Flows:
The depreciation expense would be added back to the net income in the operating activities section of the statement of cash flows. It does not affect cash flow directly.
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Mary Quinn, earns $25 per hour for a 40 hour work week and $40 per hour for overtime work. If Mary works 44 hours, her gross earnings are:
$1100. $1160. $2760. $1760.
Mary Quinn, earns $25 per hour for a 40 hour work week and $40 per hour for overtime work. If Mary works 44 hours, her gross earnings are $1160.
How to find the gross earnings of Mary Quinn?The number of hours worked by Mary Quinn in a week = 40 hours
The wage for Mary Quinn per hour = $25 for regular hours
The overtime wage for Mary Quinn per hour = $40 for overtime hours
The number of overtime hours worked by Mary Quinn in a week = 44 - 40 = 4 hours
Now,
Let's calculate Mary Quinn's gross earnings for a week:
Regular pay (for 40 hours) = $25 × 40 hours = $1000
Overtime pay (for 4 hours) = $40 × 4 hours = $160
Total Gross earnings = Regular pay + Overtime pay= $1000 + $160= $1160
Mary Quinn's gross earnings for 44 hours of work are $1160.
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What is the order of the subtotals that appear on a multi-step income statement? OA. Gross Profit, Operating Income, Net Income, Other Revenues and Expenses OB. Gross Profit, Operating Income, Other Revenues and Expenses, Net Income OD. Other Revenues and Expenses, Operating Income, Gross Profit, Net Income
The correct order of the subtotals that appear on a multi-step income statement is: Gross Profit, Operating Income, Other Revenues and Expenses, Net Income.
An income statement is one of the key financial statements that measures a company's performance over a specific period. The income statement, also known as the profit and loss (P&L) statement, summarizes a company's revenues and expenses to determine its profit or loss for that period.The structure of a multi-step income statement is as follows:
Sales revenue - Cost of goods sold = Gross profit
Gross profit - Operating expenses = Operating income Other revenues and gains - Other expenses and losses
= Other income or expense Operating income + Other income - Other expenses
= Income before taxesIncome before taxes - Income tax expense
= Net income
Therefore, the correct order of the subtotals that appear on a multi-step income statement is:Gross ProfitOperating Income Other Revenues and Expenses Net Income Hence, the correct option is OB. Gross Profit, Operating Income, Other Revenues and Expenses, Net Income.
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Which of the following is the most common reason that M&As often fail to meet expectations? A. Poor post-merger communication B. Form of payment C. Large size of target firm D. Inadequate post-merger due diligence E. Overpayment
The most common reason that M&As (mergers and acquisitions) often fail to meet expectations is E. Overpayment. Overpayment typically refers to a situation where an individual or organization pays more than the expected or appropriate amount for goods or services received.
The most common reason that M&As (mergers and acquisitions) often fail to meet expectations is E. Overpayment. Overpaying for the target company or assets can lead to financial strain, inability to generate expected returns and difficulties in integrating the acquired entity. Overpayment can result from various factors, such as inflated valuation, overly optimistic projections, or strategic misjudgment.
While other factors like poor post-merger communication, a form of payment, the large size of the target firm, and inadequate post-merger due diligence can also contribute to the failure of M&As, an overpayment is often cited as the primary reason. It highlights the significance of conducting thorough financial analysis, due diligence, and valuation assessments to ensure that the transaction is financially viable and aligns with the expected synergies and benefits.
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Please show all your calculation. Round your answer to two decimal places Refer to the accompanying national income data for the economy in 2020. All figures are in million BD. Personal Consumption Expenditures Government Purchases Net Private Domestic Investment Net Exports Net Foreign Factor Income Consumption of Fixed Capital Taxes on Production and Imports Compensation of Employees Rents Interest Proprietors Income Corporate Profit Dividends Undistributed Corporate Profits Statistical Discrepancy Price Index Required: A) What is the nominal gross domestic product for this economy? mark) BD 4,000 1,280 450 70 0 330 500 3,690 120 150 520 820 240 220 0 117 3 points Save Answer Activate Windows Go to Settings to trate Net Exports Net Foreign Factor Income Consumption of Fixed Capital Taxes on Production and Imports Compensation of Employees Rents Interest Proprietors' Income Corporate Profit Dividends Undistributed Corporate Profits Statistical Discrepancy Price Index Required: A) What is the nominal gross domestic product for this economy? mark) B) What is the national income of this economy? mark) C) If the price index is 123 in 2021, what is the inflation rate of 2021? mark) 450 70 0 330 500 3,690 120 150 520 820 240 220 0 117 (1 Activate Windows Go to Settings to activate
A) Nominal gross domestic product = BD 6090
B) National income of this economy = BD 4317
C) Inflation rate of 2021 = 5.13%
A) Nominal gross domestic product = Personal Consumption Expenditures + Government Purchases + Net Private Domestic Investment + Net Exports
Nominal gross domestic product= 4000 + 1280 + 450 + 70
Nominal gross domestic product= 6090
B) National income = Compensation of Employees + Rents + Interest + Proprietors Income + Corporate Profit + Statistical Discrepancy
National income= 3690 + 120 + 150 + 520 + 820 + 117
National income= 4317
C) Inflation rate = [(Price Index in 2021 - Price Index in 2020)/ Price Index in 2020] × 100
Inflation rate= [(123 - 117)/ 117] × 100
Inflation rate= (0.05128) × 100
Inflation rate= 5.13%
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The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 A building that cost $187,440 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $7,242 and was permitted to keep all materials salvaged. Mar. 10 Machinery that was purchased in 2013 for $22,720 is sold for $4,118 cash, f.o.b. purchaser's plant. Freight of $426 is paid on the sale of this machinery. Mar. 20 A gear breaks on a machine that cost $12,780 in 2012. The gear is replaced at a cost of $2,840. The replacement does not extend the useful life of the machine but does make the machine more efficient. May 18 A special base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $7,810 because of defective workmanship on the original base. The cost of the machinery was $20,164 in 2014. The cost of the base was $4,970, and this amount was charged to the Machinery account in 2014 June 23 One of the buildings is repainted at a cost of $9,798. It had not been painted since it was constructed in 2016. 1/30 3/10 5/18
The depreciation expenses for each transaction is calculated as follows.
How to find?1. Jan. 30: A building that cost $187,440 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $7,242 and was permitted to keep all materials salvaged.
- Since the building is being torn down, there is no depreciation expense for this transaction.
2. Mar. 10: Machinery that was purchased in 2013 for $22,720 is sold for $4,118 cash, f.o.b. purchaser's plant. Freight of $426 is paid on the sale of this machinery.
- The machinery was purchased in 2013, so it has been in use for 7 years (2020 - 2013 = 7 years).
- The depreciation expense for the machinery is calculated as 10% of its original cost per year.
Therefore, the annual depreciation expense is $22,720 * 0.1 = $2,272.
- Since the machinery is being sold, there is no depreciation expense for this transaction.
3. Mar. 20: A gear breaks on a machine that cost $12,780 in 2012. The gear is replaced at a cost of $2,840. The replacement does not extend the useful life of the machine but does make the machine more efficient.
- The machine was purchased in 2012, so it has been in use for 8 years (2020 - 2012 = 8 years).
- The depreciation expense for the machine is calculated as 10% of its original cost per year. Therefore, the annual depreciation expense is $12,780 * 0.1 = $1,278.
- Since the gear replacement does not extend the useful life of the machine, there is no additional depreciation expense for this transaction.
4. May 18: A special base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $7,810 because of defective workmanship on the original base.
The cost of the machinery was $20,164 in 2014. The cost of the base was $4,970, and this amount was charged to the Machinery account in 2014.
- The machine was purchased in 2014, so it has been in use for 6 years (2020 - 2014 = 6 years).
- The depreciation expense for the machine is calculated as 10% of its original cost per year.
Therefore, the annual depreciation expense is $20,164 * 0.1 = $2,016.
- Since the base replacement is not part of the machine itself, there is no additional depreciation expense for this transaction.
5. June 23: One of the buildings is repainted at a cost of $9,798. It had not been painted since it was constructed in 2016.
- The building was constructed in 2016, so it has been in use for 4 years (2020 - 2016 = 4 years).
- The depreciation expense for the building is calculated as 5% of its original cost per year.
Therefore, the annual depreciation expense is $187,440 * 0.05 = $9,372.
- Since the repainting is not considered a replacement that extends the useful life of the building, there is no additional depreciation expense for this transaction.
To summarize the depreciation expenses for the transactions:
- There is no depreciation expense for the building torn down on Jan. 30.
- There is no depreciation expense for the machinery sold on Mar. 10.
- There is no additional depreciation expense for the gear replacement on Mar. 20.
- There is no additional depreciation expense for the base replacement on May 18.
- There is no additional depreciation expense for the building repainting on June 23.
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Which of the following topics is not a standard element of
sustainability accounting and reporting?
A. Environmental Impact.
B. Social Impact.
C. Economic Impact.
D. Relational Impact
The correct answer is D. Relational Impact.
Sustainability accounting and reporting focuses on measuring and disclosing an organization's economic, environmental, and social impacts. These three elements are commonly known as the triple bottom line. However, the topic of "Relational Impact" is not a standard element of sustainability accounting and reporting.
To explain further, let's break down the other options:
A. Environmental Impact: This refers to the assessment and measurement of an organization's impact on the environment, including its use of resources, emissions, waste generation, and conservation efforts. It is a crucial aspect of sustainability accounting.
B. Social Impact: This relates to an organization's effects on society, including its employees, customers, communities, and other stakeholders. It involves measuring aspects such as employee well-being, community engagement, human rights, and diversity and inclusion practices.
C. Economic Impact: This encompasses the economic aspects of sustainability, such as financial performance, value creation, supply chain management, and economic contributions to society.
In summary, while environmental, social, and economic impacts are key elements of sustainability accounting and reporting, "Relational Impact" is not.
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In a Type B reorganization, the acquiring corporation obtains substantially all of the target corporation's assets in exchange for its voting stock and a limited amount of other consideration. True False
In a Type B reorganization, the acquiring corporation does not obtain substantially all of the target corporation's assets. Instead, it acquires a controlling interest in the target corporation through the exchange of its voting stock and a limited amount of other consideration.
In a Type B reorganization, the acquiring corporation does not obtain substantially all of the target corporation's assets in exchange for its voting stock and a limited amount of other consideration. Therefore, the statement "In a Type B reorganization, the acquiring corporation obtains substantially all of the target corporation's assets in exchange for its voting stock and a limited amount of other consideration" is False.
In a Type B reorganization, the acquiring corporation obtains less than substantially all of the target corporation's assets. This means that the acquiring corporation only acquires a portion of the target corporation's assets, rather than all of them.
Instead, in a Type B reorganization, the acquiring corporation exchanges its voting stock and a limited amount of other consideration for a controlling interest in the target corporation. This means that the acquiring corporation gains control over the target corporation without acquiring all of its assets.
For example, let's say Company A wants to acquire Company B through a Type B reorganization. Company A offers its voting stock and a limited amount of cash as consideration for a majority ownership stake in Company B. If the transaction is completed, Company A will become the controlling shareholder of Company B, but Company B will still retain some of its assets and continue to operate as a separate entity.
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Mando Co. leased a piece of nonspecialized equipment for use in its operations from Empire Leasing on January 1, 2019. The 5-year lease requires annual lease payments of $346, beginning on January 1, 2019.The lease qualifies as an operating lease for the lessee. Mando's incremental borrowing rate is 11%. Mando incurred initial direct costs of $37.
What is the lease expense that Mando will record at the end of each year of the lease? (Round to the nearest whole dollar.)
Lease expense that Mando will record at the end of each year of the Lease The lease expense that Mando will record at the end of each year of the lease can be calculated by using the present value of annuity formula.
Since the lease qualifies as an operating lease for the lessee, lease payments are made at the end of each year of the lease. The formula to calculate the present value of an annuity is as follows = [tex]A / (1 + r)n - 1 / r.[/tex]
The lease expense that Mando will record at the end of each year of the lease can be calculated as follows
'[tex]= 346 / (1 + 11%)^5 - 1 / 11%PV = 1334.38 - 3.7915PV = 1330.59[/tex]
Lease expense at the end of each year of the lease = [tex]$1331[/tex](rounded to the nearest whole dollar) Therefore, the lease expense that Mando will record at the end of each year of the lease is1331 (rounded to the nearest whole dollar).
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Higgins City levied $5,000,000 of General Fund property taxes for the calendar year ending December 31, 2019, with an estimated uncollectible amount of $300,000. During 2019 and the first two months of 2020, $4,500,000 of the levy is expected to be collected; however, $200,000 of the levy is not expected to be collected until after February 2020. Record the property tax revenue that should be recognized for the calendar year end December 2019 in two ways: first, from the perspective of the governmental activities on the government-wide statement of activities, and second, from the perspective of the General Fund on the statement of revenues, expenditures, and changes in fund balance. Show your calculations. Explain why property tax revenue is treated differently in those two statements.
In the government-wide statement of activities, the revenue is recognized in the year it is earned, while in the General Fund, it is recognized when it becomes available for use.
According to accrual accounting, the revenue should be recognized in the fiscal year in which it is considered earned. The levy for the calendar year ending on December 31, 2019, was $5,000,000, and the estimated uncollectible amount was $300,000.Therefore, the revenue that should be recognized for the calendar year-end December 2019 from the perspective of governmental activities on the government-wide statement of activities is $4,700,000 ($5,000,000 - $300,000). From the General Fund perspective, the amount of revenue to be recognized in the fiscal year in which it becomes available is determined by the modified accrual basis of accounting.In 2019 and the first two months of 2020, the expected collections are $4,500,000, and the $200,000 is not expected to be collected until after February 2020. Therefore, the revenue that should be recognized for the calendar year-end December 2019 from the perspective of the General Fund is $4,500,000 only.
The modified accrual basis of accounting is used by the General Fund, whereas the accrual basis of accounting is used by the government-wide statement of activities.
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one of the main methods mike uses to make sure his employees are motivated is:a tiered bonus system based on performance.to find out what their personal goals are.to offer the highest wages in the industry.to use a personality instrument to determine a person's fit with the company.
Mike uses the method of a tiered bonus system based on performance as one of the main methods to make sure his employees are motivated.
Tiered bonus system is an approach to performance management that emphasizes the link between pay and performance. This method of motivation is implemented in order to encourage employees to work hard and produce quality results.
The tiered bonus system works by setting performance goals for employees and then linking those goals to specific levels of pay. This means that the more an employee achieves their performance goals, the more they are rewarded with bonuses, and the higher their salary will be over time.
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Which accounting treatment(s) is (are) permitted under IPSAS 5 Borrowing costs?
1) Only the Expense model (Charge all borrowing costs to expenses in the period when they are incurred) 2) Only the Capitalisation model (Capitalise borrowing costs which are directly attributable to the acquisition or construction of a qualify, when it is probable that these costs will result in future economic benefits or service potential to the entity, and the costs can be meared other borrowing costs that do not satisfy the conditions for capitalisation are to be expensed when incurred) 3) Both the expense model and the capitalisation model are permitted by IPSAS 5 4) None of the above are permitted by IPSAS 5
IPSAS 5 borrowing cost permits both the capitalization model and the expense model. Capitalization of borrowing costs incurred on a qualifying asset is required by IPSAS 5 if specific conditions are satisfied. The correct option is 3.
It is imperative to understand the nature and types of assets to which borrowing costs may be capitalized.In IPSAS 5 borrowing costs, the capitalization model can be applied to borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset. The borrowing costs can be measured reliably, and it is probable that they will result in future economic benefits or service potential to the entity.
The expense model is also allowed under IPSAS 5. Borrowing costs incurred during the period are charged to expense in the period when they occur.The choice of accounting policy for borrowing costs must be followed consistently across periods. It is necessary to note that borrowing costs are not the same as interest on loans and overdrafts payable. The capitalization model is only applicable to borrowing costs that are incurred on a qualifying asset.
However, borrowing costs that are not attributable to a qualifying asset and those that are incurred after the asset is ready to use should be recognized as an expense in the period when they are incurred. Therefore, it is imperative to consider the nature of the borrowing costs and the asset acquired when choosing an accounting policy for borrowing costs. The correct option is 3.
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A controlling entity elected, in accordance with paragraph 5 of IPSAS 35 , not to prepare consolidated financial statements and instead prepare a set of separate financial statements. What is the entity required to disclose in accordance with IPSAS 34 'Separate financial statements'? A list of significant investments in controlled entities, joint ventures and associates. The fact that the financial statements are separate financial statements. The fact that the exemption from consolidation has been used; the name of the entity whose consolidated financial statements that comply with IPSASs have been produced for public and the address where those consolidated financial statements are obtainable. All of the above are disclosure requirements under IPSAS 34.
The entity is required to disclose in accordance with IPSAS 34 'Separate financial statements' Option B. The fact that the financial statements are separate financial statements.
According to IPSAS 34, "Separate Financial Statements," if a controlling entity elects not to prepare consolidated financial statements and instead prepares a set of separate financial statements, it is required to make certain disclosures. The entity is required to disclose the fact that the financial statements are separate financial statements. This ensures that the users of the financial statements are aware that they are not presented in a consolidated form.
Additionally, the entity is required to disclose the fact that the exemption from consolidation has been used. This means that the entity has chosen not to consolidate its financial statements and has prepared separate financial statements instead. This disclosure is important as it provides transparency and clarity to the users of the financial statements regarding the accounting treatment chosen by the entity.
Furthermore, IPSAS 34 requires the entity to disclose a list of significant investments in controlled entities, joint ventures, and associates. This disclosure helps users understand the extent of the entity's interests in other entities and provides insight into its investment activities.
However, IPSAS 34 does not require the disclosure of the name of the entity whose consolidated financial statements comply with IPSASs or the address where those consolidated financial statements can be obtained. These details are not relevant to the separate financial statements being presented by the entity.
Therefore, the correct answer is B. The fact that the financial statements are separate financial statements, C. The fact that the exemption from consolidation has been used, and A. A list of significant investments in controlled entities, joint ventures, and associates. Option D is not a requirement under IPSAS 34. Therefore, the correct option is B.
The question was incomplete, Find the full content below:
A controlling entity elected, in accordance with paragraph 5 of IPSAS 35, not to prepare consolidated financial statements and instead to prepare a set of separate financial statements. What is the entity required to disclose in accordance with IPSAS 34 'Separate financial statements'?
A. A list of significant investments in controlled entities, joint ventures, and associates.
B. The fact that the financial statements are separate financial statements.
C. The fact that the exemption from consolidation has been used; the name of the entity whose consolidated financial statements that comply with IPSASs have been produced for public
D. and the address where those consolidated financial statements are obtainable.
E. All of the above are disclosure requirements under IPSAS 34.
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c) "Default risk is minimized when exchange-traded futures contracts are employed." Discuss the validity of this statement. (15 marks)
The statement is valid to some extent as exchange-traded futures contracts provide mechanisms like standardized terms, margins, and central clearinghouses to reduce default risk. However, default risk can never be completely eliminated.
The statement that "default risk is minimized when exchange-traded futures contracts are employed" requires careful consideration. While it is true that exchange-traded futures contracts offer certain mechanisms to mitigate default risk, it would be an oversimplification to claim that default risk is completely eliminated.
Exchange-traded futures contracts provide standardized terms and conditions, margin requirements, and central clearinghouses that act as intermediaries between buyers and sellers. These features promote transparency, liquidity, and reduce counterparty risk compared to over-the-counter (OTC) derivatives. The use of initial and variation margins ensures that participants have sufficient collateral to cover potential losses, reducing the risk of default.
However, it is important to note that default risk can never be entirely eliminated. While central clearinghouses mitigate counterparty risk, they are not immune to failure. If a clearinghouse itself were to default, it could have severe implications for market participants. Additionally, market factors such as extreme price movements or unforeseen events can lead to liquidity shortages, making it challenging for market participants to meet margin requirements, increasing the risk of default.
In conclusion, exchange-traded futures contracts do provide valuable risk management mechanisms that minimize default risk compared to OTC derivatives. However, default risk can never be completely eliminated, as it is inherent to any financial transaction. Participants must still be mindful of the potential for default and the associated risks when trading futures contracts.
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(1) Table Top produces tables sold to discount stores. The table
tops are manufactured in Canada by Table Top, but the table legs
are manufactured in a plant in Nogales, Mexico. The assembly
departmen
Table Top relies on a cross-border manufacturing process to produce their tables, with the tabletops manufactured in Canada and the table legs produced in Mexico. The assembly department plays a crucial role in bringing these components together to create the final product.
The Table Top company produces tables that are sold to discount stores. The tabletops themselves are manufactured in Canada by Table Top, while the table legs are manufactured in a plant located in Nogales, Mexico. After the separate production of the tabletops and table legs, they are transported to an assembly department.
In the assembly department, the tabletops and table legs are brought together to create the final tables. This process involves attaching the legs to the tabletops and ensuring that the tables are properly assembled and ready for sale. Once the tables are fully assembled, they are packaged and prepared for shipment to the discount stores.
To summarize, Table Top manufactures tabletops in Canada and table legs in Nogales, Mexico. These components are then brought together in the assembly department to create the final tables, which are subsequently packaged and shipped to discount stores.
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You just purchased a car and signed a bank loan. According to the contract, you make an equal payment at the end of each month. You borrowed $35,500 to be repaid over 6 years. The interest rate is 9%, compounding monthly. How much ( $ ) is your monthly payment? Select one: a. $657.93 b. $639.91 c. $587.25 d. $678.98 e. $674.65
According to the contract, you make an equal payments at the end of each month. The monthly payment for the car loan is $657.93.
To calculate the monthly payments for the car loan, we can use the formula for the monthly payment on a loan with monthly compounding:
[tex]M = P * (r * (1 + r)^n) / ((1 + r)^n - 1)[/tex]
where M is the monthly payment, P is the principal amount borrowed, r is the monthly interest rate, and n is the total number of months.
In this case, you borrowed $35,500 to be repaid over 6 years, which is equivalent to 72 months (6 years * 12 months/year). The interest rate is 9% per year, which can be converted to a monthly interest rate of 0.09 / 12 = 0.0075.
Substituting these values into the formula, we get:
M = $35,500 * (0.0075 * (1 + 0.0075)^72) / ((1 + 0.0075)^72 - 1) ≈ $657.93.
Therefore, the monthly payment for the car loan is approximately $657.93.
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Stan "The Computer Man" sells computer software. The following transactions occurred during April of this year.
4/7 The company purchased $6,100 of merchandise from Commerce Corporation with terms of 1/10, n/30, FOB shipping point, invoice dated April 7.
4/9 The company paid $620 cash for freight charges on the merchandise purchased on April 7.
4/17 The company paid Commerce Corporation for the invoice dated April 7, net of the discount.
4/26 The company purchased $9,800 of merchandise from Chauncy Corporation with terms of 2/15, n/45, FOB destination, invoice dated April 26.
4/30 The company returned merchandise to Chauncy Corporation from the purchase of 4/26. The cost of the returned merchandise was $800.
5/3 The company paid Chauncy Corporation for the balance due, net of the cash discount, less the return on April 20.
5/8 The company purchased $2,830 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated May 8.
5/30 Paid the amount due to Harris Office Products.
Prepare all required journal entries for the above transactions.
1. Merchandise purchase from Commerce Corporation on account: Debit Accounts Payable (Commerce Corporation) $6,100; Credit Merchandise Purchase on Credit $6,100 (April 7).
2. Payment of freight charges: Debit Cash $620; Credit Freight Costs Paid $620 (April 9).
journal entries for the given transactions :
Transaction 1:
Date: April 7
Merchandise Purchase on Credit: $6,100
Accounts Payable (Commerce Corporation): $6,100
Transaction 2:
Date: April 9
Freight Costs Paid: $620
Cash: $620
Transaction 3:
Date: April 17
Accounts Payable (Commerce Corporation): $5,494
Cash: $5,494
Transaction 4:
Date: April 26
Merchandise Purchase on Credit: $9,800
Accounts Payable (Chauncy Corporation): $9,800
Transaction 5:
Date: April 30
Accounts Payable (Chauncy Corporation): $800
Merchandise Inventory: $800
Transaction 6:
Date: May 3
Accounts Payable (Chauncy Corporation): $9,216
Merchandise Inventory: $800
Cash: $8,416
Transaction 7:
Date: May 8
Office Supplies: $2,830
Accounts Payable (Harris Office Products): $2,830
Transaction 8:
Date: May 30
Accounts Payable (Harris Office Products): $2,830
Cash: $2,830
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Refer to the following informatin for Rocket Inc.
Required: Calculate Rocket's liquidity and efficiency ratios for 2020 and 2019 . (Round the final answers to 2 decimal places, Use 365 days a year.
Liquidity and Efficiency ratios are vital in measuring a company's ability to pay off short-term and long-term liabilities. Liquidity ratio measures the company's ability to meet its short-term obligations while efficiency ratios measure how well the company utilizes its assets to generate sales. Refer to the below table for Rocket's data of 2020 and 2019: Liquidity Ratios Working Capital = Current Assets - Current Liabilities Current Ratio = Current Assets / Current Liabilities Quick Ratio = (Current Assets - Inventory) / Current Liabilities Efficiency.
Ratios Total Asset Turnover = Net Sales / Total Assets Inventory Turnover = Cost of Goods Sold / Average Inventory,
Days Sales Outstanding = (Accounts Receivable / Net Sales) x 365Days Inventory = (Inventory / Cost of Goods Sold) x 365.
Below are the calculations for the above ratios for Rocket Inc. in 2020 and 2019.Liquidity Ratios?
Working Capital2020 = $157,000 - $76,000 = $81,0002019 = $127,000 - $58,000 = $69,000 Current Ratio 2020 = $157,000 / $76,000
= 2.06:12019 = $127,000 / $58,000 = 2.19:1Quick Ratio2020 = ($157,000 - $56,000) / $76,000 = 1.38:12019 = ($127,000 - $42,000) / $58,000 = 1.33:
1Efficiency Ratios
Total Asset Turnover 2020 = $570,000 / $350,000 = 1.63 times 2019 = $470,000 / $320,000 = 1.47 times.
Inventory Turnover 2020 = $480,000 / (($60,000 + $52,000) / 2) = 9.04 times2019 = $440,000 / (($45,000 + $42,000) / 2) = 10.22 times.
Days Sales Outstanding2020 = ($48,000 / $570,000) x 365 = 30.60 days2019 = ($45,000 / $470,000) x 365 = 35.00 days.
Days Inventory2020 = ($60,000 / $480,000) x 365 = 45.63 days2019 = ($45,000 / $440,000) x 365 = 37.33 days.
Rocket Inc.'s liquidity and efficiency ratios have been calculated for the year 2020 and 2019. The current ratio in 2020 and 2019 are 2.06:1 and 2.19:1 respectively. The liquidity ratio is below the standard ratio of 2:1, which indicates that the company is unable to meet its short-term obligations using its current assets alone. The quick ratio in 2020 and 2019 are 1.38:1 and 1.33:1 respectively, which indicates that the company has a quick asset to pay off its current liabilities. The efficiency ratio reveals that the company's total asset turnover ratio has increased from 1.47 times in 2019 to 1.63 times in 2020, indicating that the company is efficiently using its assets to generate sales. The inventory turnover in 2020 has decreased to 9.04 times as compared to 10.22 times in 2019, indicating that the company is less efficient in selling its inventory. The days of sales outstanding have decreased from 35.00 days to 30.60 days, which is an indication that the company is efficient in collecting its payments. Finally, the days of inventory have increased from 37.33 days to 45.63 days, indicating that the company is slow in selling its inventory. Therefore, it is important for Rocket Inc. to improve its liquidity and efficiency ratios to make sure that it is financially stable and able to meet its short-term and long-term obligations.
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37. The objective of Check 21 was to encourage greater use of in check processing. (BLJ. p. 32; Kindle, 572-586) (Ch. 3, Phase Three: Imaging) A. electronic check images B. paper checks C. check sorting machines D. the ACH system 38. The way Check 21 achieved the objective in the previous question was to (BIL, P. 32; Kindle, 593) (Ch. 3, Phase Three: Imaging) A. allow payees to convert checks to ACH debits B. prohibit use of paper checks C. require the payer's bank to accept an electronie image of the check D. require the payer's bank to accept a printed copy of the original check 39. Check 21 had which of the following effects on check payments? (BLJ, pp. 32, 36; Kindle, 586−593,666 ). (Ch. 6, Phase Two: Imaging; Image Clearing, Image Clearing-the Future, Box on The Image of Image Clearing) 1. Increased the share of payments made by check, 2. Reduced the average time required to clear check payments. 3. Largely eliminated the expense of transporting paper checks. 4. Decreased vulnerability of payments system to terrorist attacks such as 9/11. A. 1,3 , and 4 B. 2,3 , and 4 C. 1,2 , and 3 D. 1,2 , and 4
The objective of Check 21 was to encourage greater use of electronic check images and achieve the following effects: increased share of payments made by check, reduced average time required to clear check payments, and largely eliminated the expense of transporting paper checks. Therefore, the correct answer for each question is as follows: 37. A - electronic check images, 38. C - require the payer's bank to accept an electronic image of the check, and 39. C - 1, 2, and 3. The correct answers are: 37. A, 38. C, and 39. C.
37. Check 21 aimed to encourage greater use of electronic check images. This means that instead of relying on paper checks, the objective was to promote the use of digital representations of checks.
38. Check 21 achieved its objective by requiring the payer's bank to accept an electronic image of the check. This allowed the check to be processed electronically, eliminating the need for physical paper checks.
39. Check 21 had several effects on check payments. It increased the share of payments made by check as more transactions transitioned to electronic check images. It reduced the average time required to clear check payments because electronic processing is faster than manual processing. Additionally, it largely eliminated the expense of transporting paper checks since electronic images can be transmitted digitally. However, Check 21 was not primarily aimed at addressing the vulnerability of the payments system to terrorist attacks like 9/11.
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Suppose that Coca-Cola is considering a new capital budgeting project. The project will use debt with maturities of 15 years. To determine the cost of debt for the project, an analyst at Coca-Cola looks at currently trading Coca-Cola debt. The analyst is looking at a Coke bond that trades today for $967.00. This bond has an annual coupon rate of 7.00%, face value of $1,000, and will mature in 15 years. The marginal tax rate for Coca-Cola is 40.00%.
a. What is the yield to maturity for the currently trading Coke bond
b. What coupon rate will Coca-Cola put on a new bond?
c. What is the after-tax cost of debt for Coca-Cola?
The Coke bond that is now on the market has a yield to maturity of around 7.65%.
a. Yield to maturity for the currently trading Coke bond can be calculated using the following formula:
Where, M = face value = $1,000
C = annual coupon rate = 7.00%
YTM = ?
T = number of years to maturity = 15
P = market price of the bond = $967
Using these values, we have:
Therefore, the yield to maturity for the currently trading Coke bond is approximately 7.65%.
b. The coupon rate Coca-Cola will put on a new bond can be calculated using the following formula:
Where, C = coupon rate
YTM = yield to maturity = 7.65%
T = number of years to maturity = 15
Using these values, we have:
Therefore, Coca-Cola will put a coupon rate of approximately 7.65% on a new bond.
c. The after-tax cost of debt for Coca-Cola can be calculated using the following formula:
Where, Kd = after-tax cost of debt
C = coupon rate
T = marginal tax rate
Using the values from the above calculations, we have:
Therefore, the after-tax cost of debt for Coca-Cola is approximately 4.59%.
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Why include row and column titles, totals, and subtotals in a
financial schedule created in Excel?
Including row and column titles, totals, and subtotals in a financial schedule created in Excel is important for several reasons:
Clarity and Organisation: The financial schedule's row and column headings create a clear and ordered arrangement. They aid in labeling and identifying the data in each cell, making the information easier to understand and analyze. It improves the schedule's general organization and readability, allowing users to rapidly access individual data points.
Data Analysis and Comparison: In a financial schedule, totals and subtotals provide a brief summary of the data. They display aggregated numbers for a certain row, column, or section, letting users evaluate the overall performance or influence of specific categories or groupings. Totals and subtotals help with data analysis by making it simpler to spot trends, variations, and patterns in financial data.
Accuracy and Validation: Including totals and subtotals in a financial schedule helps assure the calculation's accuracy and validity. Users can cross-check their calculations and ensure that the data input in individual cells adds up to the desired totals by incorporating these summaries. This can assist in detecting and correcting any flaws or anomalies in the
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MIcrosoft Corporation is planning to acquire a new machine, which will have a useful life of two years. However, there is a 10% probability that the machine will break down after only one year. There are two states of economy, Boom and Bust, with the probability of occurrence 60% and 40% in any given year. If the economy is Boom, the pre-tax cash flow from the machine is $25,000 annually, and if the economy is bust, the pre-tax cash flow is only $18,750. The proper discount rate is 12%. The tax rate is 20%. What is the maximum amount that Fisher should pay for this machine? a. $28,986 b. $18,750 c. $25,000 d. $29,000
The maximum amount that Fisher should pay for the machine is $28,986. To determine the maximum amount Fisher should pay for the machine, we need to calculate the present value of the expected cash flows over the machine's useful life.
We'll consider the probabilities of the machine breaking down and the states of the economy.
Useful life of the machine: 2 years
Probability of machine breakdown after 1 year: 10%
Probability of economy being in a Boom state: 60%
Probability of economy being in a Bust state: 40%
Pre-tax cash flow in Boom state: $25,000 per year
Pre-tax cash flow in Bust state: $18,750 per year
Discount rate: 12%
Tax rate: 20%
First, let's calculate the expected cash flows for each state of the economy over the machine's useful life:
Expected Cash Flow in Boom state: $25,000 * 0.6 + $18,750 * 0.4 = $23,250
Expected Cash Flow in Bust state: $18,750
Next, let's calculate the present value of the expected cash flows using the discount rate:
Present Value of Expected Cash Flow in Boom state: $23,250 / (1 + 0.12) + $23,250 / (1 + 0.12)^2 = $41,008.93
Present Value of Expected Cash Flow in Bust state: $18,750 / (1 + 0.12) = $16,741.07
Now, let's consider the probability of the machine breaking down after one year. If it breaks down, there will be no cash flow in the second year. If it doesn't break down, we'll discount the cash flow in the second year as well.
Expected Present Value of Cash Flow: (0.9 * $41,008.93) + (0.1 * $16,741.07) = $37,355.04
Since the question asks for the maximum amount Fisher should pay for the machine, the answer is rounded to the nearest dollar: $37,355.04 ≈ $37,355.
Therefore, the maximum amount that Fisher should pay for the machine is $37,355, which is not among the given options.
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Samantha purchased a two-year insurance policy for $7,200. The adjusting entry for one month would include a: a credit to insurance expense, $300 b debit to insurance Expense, 5300 c credit to Cash, $300 d debit to Prepaid insurance, 5300
The adjusting entry for one month would include a debit to insurance Expense, $300.
The adjusting entry for one month would include a debit to insurance Expense, $300.
Adjusting entries refer to accounting entries made at the end of an accounting period to align revenue and expenses to the accounting period where they occurred.
Insurance premiums are often paid for a longer time than a month but need to be expensed over the period for which the premiums apply.
The correct answer for this question is a debit to insurance Expense, $300.
The correct option is B. Debit to insurance Expense, $300.
Why is that so?
It is necessary to be familiar with the adjusting entries. Adjusting entries refer to accounting entries made at the end of an accounting period to align revenue and expenses to the accounting period where they occurred.
Insurance premiums are often paid for a longer time than a month but need to be expensed over the period for which the premiums apply.
Therefore, if Samantha purchased a two-year insurance policy for $7,200, she would have to expense it over the two-year period of the policy.
As a result, for one month of coverage under the policy, $300 in insurance expenses would be debited and prepaid insurance would be credited for the same amount.
Therefore, the adjusting entry for one month would include a debit to insurance Expense, $300.
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For four years, Marty Campbell invested $6,000 each year in Harley-Davidson. The stock was selling for $78 in 2017,$66 in 2018 , $53 in 2019, and $65 in 2020. a. What is Marty's total investment in Harley-Davidson? Total investment:
b. After four years, how many shares does Marty own? (Round your intermediate calculations and final answer to nearest whole number.)
Number of shares:
c. What is the average cost per share of Marty's investment? (Use the rounded number of shares computed in part bound your answer to 2 decimal places.)
Average cost per share:
Total investment: $24,000
Number of shares: 92
Average cost per share: $260.87
a. Marty Campbell invested $6000 each year for 4 years.
Thus, the total investment of Marty in Harley-Davidson is [tex]$6,000 x 4 = $24,000.[/tex]
b. We can find out how many shares Marty owns by dividing the total investment by the price of shares of Harley-Davidson.
Therefore, the number of shares that Marty owns =
[tex]$\frac{24000}{78+66+53+65}$\\= $\frac{24000}{262}$ \\= 91.60305344 \\≈ 92 shares.[/tex]
c. The average cost per share of Marty's investment can be found by dividing the total investment by the number of shares.
Thus, the average cost per share of Marty's investment =
[tex]$\frac{24000}{92}$ \\= $260.87.[/tex]
Answer: Total investment: $24,000
Number of shares: 92
Average cost per share: $260.87
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