1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
liq [111]
3 years ago
11

A roofing company collects fees when jobs are complete. The work for one customer, whose job was bid at $3,900, has been complet

ed as of December 31, but the customer has not yet been billed. Assuming adjustments are only made at year-end, what is the adjusting entry the company would need to make on December 31, the calendar year-end?
Business
1 answer:
3241004551 [841]3 years ago
3 0

Answer:

Debit Accounts Receivable, $3,900;

Credit Roofing Fees Revenue, $3,900

Explanation:

Here, no cash transaction was involved. Since the job has been completed but  the customer has not been billed yet, this simply means it has to be debited with accounts receivable, which is recognised as current asset and recognised as revenue for the period, hence needs to be credited.

This means that accounts receivable has to be debited with the amount of $3,900 while roofing fees revenue has to be credited with the amount of $3,900

Considering the above, the adjusting entry the company would need to make on December 31, the calendar year-end would be:

Debit Accounts Receivable, $3,900;

Credit Roofing Fees Revenue, $3.900

You might be interested in
Both Bond Bill and Bond Ted have 6.2 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 5 yea
iragen [17]

Answer:

a-1. Percentage change in the price of Bond Bill = -8.07%

a-2. Percentage change in the price of Bond Ted = -21.12%

b-1. Percentage change in the price of Bond Bill = 8.94%

b-1. Percentage change in the price of Bond Ted = 30.77%

c. See the attached excel file for the graph.

d. It tells us that the longer the term of a bond, the greater will be its interest rate risk.

Explanation:

The price of each bond can be calculated using the following excel function:

Bond price = -PV(YTM, NPER, PMT, FV) ........... (1)

Where;

a-1. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Bill?

YTM = (6.2% + 2%) / Number of semiannuals in a year = 8.2% / 2 = 4.1%

NPER = Number of semiannuals to maturity = 5 * 2 = 10

PMT = Payment = Coupon rate * Face value = (6.2% / Number of semiannuals in a year) * 1000 = (6.2% / 2) * 1000 = $31

FV = Face value = Initial price of Bond Bill = $1,000

Substituting all the values into equation (1), we have:

New price of Bond Bill = -PV(4.1%, 10, 31, 1000)

Inputting =-PV(4.1%, 10, 31, 1000) in a cell in an excel file (Note: As done in the attached excel file), we have:

New price of Bond Bill = $919.29

Percentage change in the price of Bond Bill = ((New price of Bond Bill - Initial price of Bond Bill) / Initial price of Bond Bill) * 100 = (($919.29 - $1,000) / $1,000) * 100 = -8.07%

a-2. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Ted?

YTM = (6.2% + 2%) / Number of semiannuals in a year = 8.2% / 2 = 4.1%

NPER = Number of semiannuals to maturity = 25 * 2 = 50

PMT = Payment = Coupon rate * Face value = (6.2% / Number of semiannuals in a year) * 1000 = (6.2% / 2) * 1000 = $31

FV = Face value = Initial price of Bond Ted = $1,000

Substituting all the values into equation (1), we have:

New price of Bond Ted = -PV(4.1%, 50, 31, 1000)

Inputting =-PV(4.1%, 50, 31, 1000) in a cell in an excel file (Note: As done in the attached excel file), we have:

New price of Bond Ted = $788.81

Percentage change in the price of Bond Ted = ((New price of Bond Ted - Initial price of Bond Bill Ted) / Initial price of Bond Ted) * 100 = (($788.81 - $1,000) / $1,000) * 100 = -21.12%

b-1. If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Bill be then?

YTM = (6.2% - 2%) / Number of semiannuals in a year = 4.2% / 2 = 2.1%

NPER = Number of semiannuals to maturity = 5 * 2 = 10

PMT = Payment = Coupon rate * Face value = (6.2% / Number of semiannuals in a year) * 1000 = (6.2% / 2) * 1000 = $31

FV = Face value = Initial price of Bond Bill = $1,000

Substituting all the values into equation (1), we have:

New price of Bond Bill = -PV(2.1%, 10, 31, 1000)

Inputting =-PV(2.1%, 10, 31, 1000) in a cell in an excel file (Note: As done in the attached excel file), we have:

New price of Bond Bill = $1,089.36

Percentage change in the price of Bond Bill = ((New price of Bond Bill - Initial price of Bond Bill) / Initial price of Bond Bill) * 100 = (($1,089.36 - $1,000) / $1,000) * 100 = 8.94%

b-2. If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Ted be then?

rate = new YTM = (6.2% - 2%) / Number of semiannuals in a year = 4.2% / 2 = 2.1%

NPER = Number of semiannuals to maturity = 25 * 2 = 50

PMT = Payment = Coupon rate * Face value = (6.2% / Number of semiannuals in a year) * 1000 = (6.2% / 2) * 1000 = $31

FV = Face value = Initial price of Bond Ted = $1,000

Substituting all the values into equation (1), we have:

New price of Bond Ted = -PV(2.1%, 50, 31, 1000)

Inputting =-PV(2.1%, 50, 31, 1000) in a cell in an excel file (Note: As done in the attached excel file), we have:

New price of Bond Ted = $1,307.73

Percentage change in the price of Bond Ted = ((New price of Bond Ted - Initial price of Bond Bill Ted) / Initial price of Bond Ted) * 100 = (($1,307.73 - $1,000) / $1,000) * 100 = 30.77%

c. Illustrate your answers by graphing bond prices versus YTM.

Note: See the attached excel file for the graph.

d. What does this problem tell you about the interest rate risk of longer-term bonds?

It tells us that the longer the term of a bond, the greater will be its interest rate risk.

Download xlsx
6 0
2 years ago
In the workplace today, more emphasis is being put on mental health. But sometimes, employees don't want to be seen as being una
AleksandrR [38]

Answer:

I believe it would be a lot easier to argue organization's ethical responsibility to help employees deal with stress.

<u>Here's some ideas:</u>

<em>INTRO</em>

--> Introduce your topic/argument

(make sure to include a thesis statement!!)

First, show the reader how damaging stress can be to the employee by explaining it's negative impact on the employee's wellbeing:

  • Symptoms of stress and ways that it negatively impacts employees specifically.
  • Mention how stress reduces productivity and site research about it.

Point out how common stress is within the workplace by using stats or current day examples:

  • Statistics about the huge percentage of people who report feeling stressed out from work.
  • Use the current day example of how the current pandemic has had a massive impact on the stress especially on healthcare workers.
  • Main point: <em>stress is a very common and serious problem among employees</em>.

<em>BODY</em>

Argue how organizations DO have an ethical responsibility to help employees deal with stress:

  • Point out how it's a very serious problem.
  • Argue that an organization who chooses not to help is a bad organization.
  • Show examples in history where organizations did not take good care of their employees.

To further strengthen your argument, mention how beneficial it is for the organization itself to provide resources for employees to help them manage their stress:

  • Provide statistics on the usefulness of stress-management programs within the workplaces (example: INCREASES PRODUCTION).
  • Argue how happier employees also tend to function better in the workplace because they feel supported.

<em>CONCLUSION</em>

--> Summarize your essay

  • Summarize your main points and restate your thesis statement here.
5 0
2 years ago
The average do-it-yourself bedroom makeover costs $475 with a standard deviation of $86 (fictional data). tanya redoes her daugh
irinina [24]
Given with $475 as the previous cost of the do-it-yourself bedroom makeover, $602 as the cost when she redoes her daughter's room, and $86 as the standard deviation. The percent of bedroom makeovers cost less than Tanya spent, that is rounded to two decimal places is 93.06%.
6 0
3 years ago
in team-based environments, the principal may have difficulty determining individual contributions by members. this can create a
just olya [345]

In team-based environments, the principal may have difficulty determining individual contributions by members. This can create a situation in which an opportunistic employee does little work but takes credit and this is known as adverse selection.

<h3>What is Adverse selection?</h3>
  • In general, the term "adverse selection" refers to a situation in which sellers have knowledge about a certain feature of product quality but purchasers do not, or vice versa. In other words, it is an instance of the use of asymmetric information.
  • When one side to a transaction has more in-depth knowledge of the relevant facts than the other, this is known as asymmetric information, also known as information failure.
  • Usually, the vendor is the one who has more knowledge. When both parties are knowledgeable, it is said that there is symmetric information.

To learn more about business site, refer:

brainly.com/question/28085653

#SPJ4

7 0
10 months ago
A disadvantage of corporations is that shareholders have to pay on profits.
olga_2 [115]

Answer:

taxes

Explanation:

just took the test

4 0
2 years ago
Other questions:
  • What activities would a product owner typically undertake in the phase between the end of the current sprint and the start of th
    7·1 answer
  • Officials argue that the government needs to reduce the national debt. Which actions are most likely to accomplish this goal?
    7·1 answer
  • Matthew owns a warehouse that is used in business while Pamela owns land. Matthew exchanges the warehouse for the land, which wi
    15·1 answer
  • However, the debt issues also raises the probability of bankruptcy. You company has a 30% chance of going bankrupt after 3 years
    10·1 answer
  • The balance sheet of Indian River Electronics Corporation as of December 31, 2017, included 12.25% bonds having a face amount of
    7·1 answer
  • Variable and absorption costing and breakeven points. Camino, a leading firm in the sports industry, produces basketballs for th
    11·1 answer
  • Sealy Corporation had the following information in its financial statements for the years ended 2017 and 2018: Cash Dividends fo
    7·1 answer
  • Universal Foods issued 10% bonds, dated January 1, with a face amount of $150 million on January 1, 2016. The bonds mature on De
    6·1 answer
  • Name three types of financial payment methods for labour services.
    15·1 answer
  • How quickly must you file a report with the michigan dnr if property damage exceeds $2,000?.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!