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tiny-mole [99]
3 years ago
7

For the year ended December 31, 2015, Lopez Company has implemented an employee bonus program equal to 3% of Lopez’s net income,

which employees will share equally. Lopez’s net income (pre-bonus) is expected to be $500,000, and bonus expense is deducted in computing net income. (Round your final answer to the nearest dollar.)1. Compute the amount of the bonus payable to the employees at year-end (use the method described in the chapter and round to the nearest dollar).
2. Prepare the journal entry at December 31, 2015, to record the bonus due the employees.
3. Prepare the journal entry at January 19, 2016, to record payment of the bonus to employees.
Business
1 answer:
igomit [66]3 years ago
5 0

Answer:

Explanation:

1. Before passing the journal entries, we have to determine the amount of bonus payable that is shown below:

Let us assume that the bonds payable at the year end be X

So, the equation is

X = 0.03 × ($500,000 - X)

X = $15,000 - 0.03X

X + 0.03 = $15,000

X = $15,000 ÷ 1.03

   = $14,563

Now the journal entries are

2. Employees bonus expense A/c Dr $14,563

               To Bonus payable A/c $14,563

(Being the bonus  due is recorded)

3. Bonus payable A/c Dr $14,563

           To Cash A/c $14,563

(Being the payment is recorded)

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Simora [160]

Answer:

a.

Assets Side

Required Reserves   $10 million        

Excess Reserves   $51 million    

Loans   $70 million

Total $131 million

Liabilities Side

Checkable Deposits   $120 million

Bank Capital   $11 million

Total $131 million  

b. Bank capitalization can be measured with bank Leverage Ratio.

= Capital/Assets

= 11/131

= 8.40%

Bank is considered well capitalized if ratio is above 5% so Oldhat Financial is well capitalized.

c. Risk Weighted Assets = $50 million

Risk weighted capital ratio = 22%

Commercial loans are 100% risk weighted = $ 30 million

Residential mortgages are 50% risk weighted  = $ 20 millions

Total = $50 million.

Risk weighted Capital Ratio = Bank capital / Total risk weighted assets

= 11/50

= 22%

7 0
3 years ago
_____ typically includes information on the customers served, why the company exists, what the company does, the value received
max2010maxim [7]

Answer:

Mission.

Explanation:

Considering the stakeholders' perspectives is a significant step or approach to be adopted by business firms when developing a mission statement. It requires that you think about who is affected by your organization and how they might measure your success.

Generally, when the top executives or management are developing a mission statement, decisions, and goals, it is very essential and important that they ensure it is favourable to the stakeholders. Stakeholders can be defined as a group of people who have interest or shares in a business entity and are affected by the decisions of the company.

Hence, the stakeholders perspective needs to be considered at all times because they're part of the business and their actions can affect the success of the business.

Mission typically includes information on the customers served, why the company exists, what the company does, the value received by the customers, and the technology used.

7 0
3 years ago
What shows the quantities of products demanded at each price by all consumers in a market?
e-lub [12.9K]
A market demand schedule
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Woodmier Lawn Products introduced a new line of commercial sprinklers in 2020 that carry a one-year warranty against manufacture
blagie [28]

Answer:Woodmier journal $

1. Date

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Warranty expenses Dr 90,000

Warranty liability Cr. 90,000

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Warranty liability Dr 90,000

Bank/Cash. Cr. 90,000

Narration. Payment of warranty expenditures.

2. No entry require

Explanation:

The warranty expenses since is a period of one year can be accounted for at the end of the year without requirements for provision at the beginning of the year. The actual warranty is debited to the income statement and the liability recognized as a creditor until payment.

The discontinuation of the sales of the product in 2021 will not affect the already incurred warranty liability and the account posting thereon in the following years.

8 0
3 years ago
The unemployment rate in the United States is usually​ ________ than the unemployment rates in most other​ high-income countries
bogdanovich [222]

Answer:

The answers are:

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Explanation:

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The current unemployment rate in the US is 3.7% (as of August 2019) while the unemployment rate in the EU is 6.2%.

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4 0
3 years ago
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