________ states that the same geological processes happen now that happened in the past.

Pina Company began operations on January 2, 2019. It employs 10 individuals who work 8-hour days and are paid hourly. Each emplo

Andrew [12]

Answer:

2019

Dr Salaries and wages expense 9,680

Cr Salaries and wages payable 9,680

Dr Salaries and wages expense 6,160

Cr Salaries and wages payable 6,160

Dr Salaries and Wages Payable 3,520

Cr Cash 3,520

2020

Dr Salaries and wages expense 10,560

Cr Salaries and wages payable 10,560

Dr Salaries and wages expense 6,720

Cr Salaries and wages payable 6,720

Dr Salaries and wages expense

800

Dr Salaries and wages payable 8,800

Cr Cash 9,600

Dr Salaries and Wages Expense 240

Dr Salaries and Wages Payable 5,520

Cr Cash 5,760

B. 2019 $10,410

2020 $12,175

Explanation:

(a) Preparation of journal entries to record transactions related to compensated absences during 2019 and 2020

2019

Dr Salaries and wages expense 9,680

Cr Salaries and wages payable 9,680

(10 employees * $11.00/hr. * 8 hrs./day * 11 days)

(Being to record accrue expense and liability for vacation)

Dr Salaries and wages expense 6,160

(10 employees * $11.00/hr. * 8 hrs./day * 7days)

Cr Salaries and wages payable 6,160

(Being to record accrue expense and liability for sick pay)

Dr Salaries and Wages Payable 3,520

Cr Cash 3,520

(10 employees * $11.00/hr. * 8 hrs./day*4 days)

2020

Dr Salaries and wages expense 10,560

(10 employees * $12/.00/hr. * 8 hrs./day * 11 days)

Cr Salaries and wages payable 10,560

(Being to accrue expense and liability for vacation)

Dr Salaries and wages expense 6,720

Cr Salaries and wages payable 6,720

(10 employees * $12.00/hr. * 8 hrs./day * 7 days)

(Being to record accrue expense and liability for sick pay)

Dr Salaries and wages expense

800

(9,600-800)

Dr Salaries and wages payable 8,800

(10 employees * $11.00/hr. X 8 hrs./day *10days)

Cr Cash 9,600

(10 employees * $12.00/hr. * 8 hrs./day X 10days)

(Being to record vacation time period))

Dr Salaries and Wages Expense 240

(10 employees * ($11-12) /hr. * 8 hrs./day * (7-4) last yr)

Dr Salaries and Wages Payable 5,520

(10 employees * $11.00/hr. * 8 hrs./day * (7-4) days) + (10 employees * $12.00/hr. * 8 hrs./day *(6-3) days)

=(2,640+2,880=5520)

Cr Cash 5,760

(10 employees * $12.00/hr. * 8 hrs./day * 6 days)

(Being to record sick leave paid)

B) Computation for the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019, and 2020

1. December 31, 2019

10 employees * $11.83/hr. * 8 hrs./day * 11 days =$10,410

2. December 31, 2020

10 employees * $11.83/hr. * 8 hrs./day * 1 day =$946

Add: 10 employees * $12.76/hr. * 8 hrs./day * 11 days = 11,229

Total $12,175

($11,229+$946)

Therefore the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 will be $10,410 and 2020 will be $12,175

5 0

3 years ago

The demand curve for a product is given by QXd = 1,200 - 3PX - 0.1PZ where Pz = $300.

arsen [322]

Answer:

Explanation:

a. QXd = 1,200 – 3PX – 0.1PZ

Pz = $300 and Px = $140, plugging the values, we get,

Qx = 1200 – 3*140 – 0.1*300.

Qx = 750 units.

Elasticity of demand = \deltaQx/\deltaPx * Px/Qx.

\deltaQx/\deltaPx = -3.

E = -3 * 140/750.

E = -0.56

The elasticity of demand is INELASTIC because the absolute value of elasticity is less than one. If the firm charges a price below $140it might lose out in revenue because the percentage change in demand is less than the price.

b. Px = $240, substituting this into the equation we get

Qx = 1200 – 3*240 – 0.1*300

Qx = 450 units.

E = -3 * 240/450.

E = -1.6

The demand is elastic because the absolute value is less than one. If the firm charges a price above $240 it might lose out on its revenue because the percent change in demand is more than the price.

c. Cross price elasticity of demand Es = \deltaQx/\deltaPz * Pz/Qx.

\deltaQx/\deltaPz = -0.1

Es = -0.1 * 300/750.

Es = -0.04

The goods are complements of each other. As the price of one increases, the demand for other would fall, and vice-versa is true.

4 0

3 years ago

Suppose the rate of return on short-term government securities (perceived to be risk-free) is about 6%. Suppose also that the ex

ollegr [7]

Answer:

A. 16%

B. 6%

C. Underpriced. Note: This answer is based on the example we used to show how to complete solving this kind of question.

Explanation:

Given;

E(rM) = return required by the market for a portfolio = 16%, or 0.16

rf = rate of return on short-term government securities (perceived to be risk-free) = 6%, or 0.06

We can now proceed as follows:

A. What is the expected return on the market portfolio?

The formula for calculating the expected return on the market portfolio is as follows:

Expected return on the market portfolio = ([E(rM) - rf] / B) + rf

Where;

B = beta of the portfolio = 1

Substituting these values into the equation above, we have:

Expected return on the market portfolio = (0.16 - 0.06)/1 + 0.06 = 0.16, or 16%.

B. What would be the expected return on a zero-beta stock?

The formula for calculating the expected return on a zero-beta stock is as follows:

Expected return on a zero-beta stock = rf + B[E(rM) - rf]

Where;

B = beta of the portfolio = 0

Substituting these values into the equation above, we have:

Expected return on a zero-beta stock = 0.06 + 0[0.16 - 0.06] = 0.06, or 6%.

C. The stock risk has been evaluated at beta = -.5. Is the stock overpriced or under-priced?

In line with capital asset pricing model (CAPM), we have:

Expected return = E(r) = rf + B[E(rM) - rf]

B = beta of the portfolio = -0.5

Substituting these values into the equation above, we have:

E(r) = 0.06 - 0.5(0.16 - 0.06) = 0.06 - 0.05 = 0.01, or 1.00%

Note: To determine if a stock overpriced or under-priced, we make use of an example here by assuming buying a share of stock at $40 which is expected to pay $3 dividends next year and it is expected to sold then for $41.

In line with CAPM, the price must be:

Po = ($41 + $3) / [1 + E(r)] = $44 / (1 + 0.01) = $43.46

Since $43.46 is greater than purchase price of $40, the stock is underpriced.

8 0

3 years ago

The fixed costs of WeBuy&Sell.com, an e-commerce website, make up about 90 percent of the total costs incurred by the compan

nataly862011 [7]

Answer:

This allows WeBuy&Sell.com to earn high profits at a very low cost. According to the given scenario, WeBuy&Sell.com has high scalability.

Explanation:

In an economic context, a scalable business model implies that a company can increase sales given increased resources.

7 0

4 years ago

When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet sites.

I am Lyosha [343]

Solution:

Common stock: These are the common shares that a company issues to creditors to raise funds. In return, creditors are entitled to a dividend share of the profits received by the firm.

Par value: It refers to the worth of a share suggested by the charter of the company. Often referred to as a portfolio face value.

Record the sale of common stock in the books of ANIT Corporation.

Date Account Titles and Explanation Debit (S) Credit (S)

Cash (1) 101,595,000

Common Stock (2) 7500

Paid-in Capital in Excess of Par value (3) 101,587,500

(To record safe of .5 million shores of $0.001 par value per share in excess of Par)

Compute the amount of cash received from common stock issue.

Cash received = Number of shares issued x Price per share

= 7.500,000 shares x $13.546

=$101,595,000

Compute common stock value.

Common H= 'Number of shares v Par value of common stock stock value

= 7,500,000 shares x SO 001 per share

= $7,500

Compute paid-in capital in excess of par value.

Paid-in capital in = I (Cash received—excess of par value Common stock value

=$101,595.000(1) — S7,5001.2)

= $101,587,500

3 0

4 years ago