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2 years ago

is a seller's obligation to replace or fix a product (or service) that fails to perform as expected within a specified period.

1 answer:

8 0

Seller's obligation to replace or correct a product (or service) that fails to perform as expected within a specified period. To conform with the matching principle, the seller reports the expected warranty expense in the period when revenue from the sale is reported.

<h3>What are sales?</h3>

Sales are actions involving the sale of goods or the volume of items sold during a specified time frame.
A sale also includes the provision of a service for a fee.
In response to an acquisition, appropriation, request, or a direct connection with the customer at the point of sale, the seller or provider of the products or services completes a sale.
Title (property or ownership) of the object is transferred, and a price is settled, meaning a price is agreed upon for which the ownership of the item will transfer.

<h3>Why are sales important?</h3>

A sale is a transaction in which two or more people trade goods, services, or other assets for cash.
Sales often occur when a seller and a buyer exchange items or assets for money or other assets.

Learn more about sales here:

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Alex Company rents space to a tenant for $2,200, per month. The tenant currently owes two months rent, November and December. Th

kaheart [24]

Answer:

The correct answer is D

Explanation:

The journal entry which is to be posted on December 31, is as:

Rent receivable A/c............................Dr $4,400

Rent Earned A/c...............................Cr $4,400

As the two months rent is not paid so the adjusting entry which is to be posted is that the rent receivable account is debited whereas the rent earned account is credited with the amount of two months rent. (which is $2,200 + $2,200 = $4,400).

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3 years ago

Hope College is planning for the next biennium. School administrators know that the enrollment is on the decline, but still need

Alekssandra [29.7K]

They can accomplish this through early retirement.

<h3><u>Explanation:</u></h3>

Early retirement is a way that we use to stop or discontinue something. Most of the aged person tends to choose early retirement for the purpose of achieving the benefits form the organisation to the most possible level. This decision can be taken when we know that the organisation will be closed in the near future and continuing work will not benefit us.

When we decide for the early retirement the befits that we attain from that will be more than the benefit that are obtained in continuing work. In the given example, Hope college has a plan for next biennium. But, the enrollments are reduced in number and they want to reduce the payroll slowly. Thus this can be accomplished with the help of early retirement.

7 0

3 years ago

"Dawn" is a song included in the sound track of "eDay," a movie produced and distributed by FasTrac Corporation. The song featur

frutty [35]

Answer:

Yes it is copyright infringement.

In order for someone to transfer any material (in this case music) digitally or online, it must be copied first. So when someone produces a digital sampling of copyrighted material, no matter if it only lasts a couple of seconds, it constitutes copyright infringement.

4 0

3 years ago

Presented below is the trial balance of Bramble Corporation at December 31, 2020.

8_murik_8 [283]

Answer:

Bramble Corporation

Assets:

Current Assets:

Cash $ 201,440

Debt Investments (trading)

(at cost, $145,000) 155,150

Accounts Receivable 437,150

Allowance for

Doubtful Accounts 27,150 410,000

Inventory 601,440

Total current assets $1,368,030

Long-term assets:

Debt Investments (long-term) 303,440

Equity Investments (long-term) 281.440

Land 262,150

Buildings 1,044,440

Accumulated Depreciation 152,000 892,440

Equipment 602,150

Accumulated Depreciation 60,000 542,150

Franchises 160,000

Patents 195,000

Total long-term assets $2,636,620

Total assets $4,004,650

Liabilities + Equity:

Current Liabilities:

Notes Payable (short-term) 92,150

Accounts Payable 457,150

Dividends Payable 140,440

Accrued Liabilities 98,150

Total current liabilities $787,890

Notes Payable (long-term) 904,440

Bonds Payable 1,004,440

Total long-term liabilities $1,908,880

Total liabilities $2,696,770

Common Stock ($5 par) 1,002,150

Treasury Stock 193,150

Net Stock outstanding 809,000

Retained Earnings, December 31 414,440

Paid-in Capital in Excess of Par 84,440

Total equity $1,307,880

Total liabilities + equity $4,004,650

Explanation:

a) Data and Calculations:

Debit Credit

Cash $ 201,440

Debt Investments (trading)

(at cost, $145,000) 155,150

Accounts Receivable 437,150

Inventory 601,440

Sales $ 8,102,150

Cost of Goods Sold 4,800,000

Allowance for Doubtful Accounts 27,150

Debt Investments (long-term) 303,440

Equity Investments (long-term) 281.440

Notes Payable (short-term) 92,150

Accounts Payable 457,150

Dividends Payable 140,440

Accrued Liabilities 98,150

Notes Payable (long-term) 904,440

Bonds Payable 1,004,440

Common Stock ($5 par) 1,002,150

Treasury Stock 193,150

Retained Earnings 82,440

Paid-in Capital in Excess of Par 84,440

Investment Revenue 67,180

Land 262,150

Buildings 1,044,440

Accumulated Depreciation-Buildings 152,000

Equipment 602,150

Accumulated Depreciation Equipment 60,000

Franchises 160,000

Patents 195,000

Selling Expenses 2,002,150

Administrative Expenses 904,180

Interest Expense 215,180

Gain 84,180

Totals $12,358,460 $12,358,460

b) Income Statement for the year ended December 31, 2020:

Sales $ 8,102,150

Cost of Goods Sold 4,800,000

Gross profit $3,302,150

Investment Revenue 67,180

Gain 84,180

Total Income before expenses $3,453,510

Selling Expenses 2,002,150

Administrative Expenses 904,180

Interest Expense 215,180

Total Expenses (3,121,510)

Net Income $332,000

Retained Earnings 82,440

Retained Earnings, December 31 $414,440

7 0

3 years ago

Universal Laser, Inc., just paid a dividend of $3.10 on its stock. The growth rate in dividends is expected to be a constant 6 p

Vadim26 [7]

Answer:

Ans. The current price of the stock is $56.82

Explanation:

Hi, well, the problem here is that we have different discount rates, in other words the required rate of return for the stock changes several times, therefore we are going to break this problem in 3 parts, or bring to present value all the cash flows in 3 steps. Let´s start with the value of the dividends.

We have to use the following formula.

$Dn=D_{(n-1)} *(1+g)$

Where, D(n-1) is last dividend and Dn is the dividend that we are looking for, for example, D1 = 3.10*(1+0.06)=3.29, D2=3.29*(1+0.06)=3.48, and so forth. The amount to pay on dividends per share is,

D1=3.29; D2=3.48; D3=3.69; D4=3.91; D5=4.15; D6=4.40; D(7)=4.66

Since the first 3 years are to be discounted at a 15%, this is how the formula should look like.

$PV(1)=\frac{D1}{(1+r(1))^{1} } +\frac{D2}{(1+r(1))^{2} } +\frac{D3}{(1+r(1))^{3} }$

$PV(1)=\frac{3.29}{(1+0.15)^{1} } +\frac{3.48}{(1+0.15)^{2} } +\frac{3.69}{(1+0.15)^{3} }=7.92$

Now, for the second part, we have to bring all cash flows to year 3 at r(2)=13% and then bring it to present value at r(1)=15%. This is because we have 2 different discount rates, this is as follows.

$PV(2)=(\frac{D4}{(1+r(2))^{1} } +\frac{D5}{(1+r(2))^{2} } +\frac{D6}{(1+r(2))^{3} })*\frac{1}{((1+r(1)^{3} }$

$PV(2)=(\frac{3.91}{(1+0.13)^{1} } +\frac{4.15}{(1+0.13)^{2} } +\frac{4.40}{(1+0.13)^{3} })*\frac{1}{(1+0.15)^{3} } =6.42$

Finally, we need to bring all the future cash flows from year 7 and beyond, notice that we need to use the return rate r(3) to bring everything to year 6, then we have to bring it to year 3 and then to present value, everything as follows.

$PV(3)=(\frac{D7}{(r(3)-g)} )*(\frac{1}{(1+r(2))^{3} } )*(\frac{1}{(1+r(1))^{3} } )$

$PV(3)=(\frac{4.66}{(0.11-0.06)} )*(\frac{1}{(1+0.13)^{3} } )*(\frac{1}{(1+0.15)^{3} } )=42.48$

So, the price of the stock is PV(1) + PV(2) + PV(3), or:

$Price=7.92+6.42+42.48=56.82$

Price= $56.82/share

Best of luck.

3 0

3 years ago