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LuckyWell [14K]
3 years ago
7

On January 1, 20X1, Tucker Company leases equipment from Franz Inc. over three years of the equipment's five-year estimated usef

ul life. Franz acquired the asset for $431,213 and normally utilizes an 8% interest rate for these types of transactions. The present value of the lease payments is $357,710. The annual lease payment is $100,000; the first payment is due on January 1, 20X1. Tucker should recognize the second lease payment by debiting (round to the nearest whole dollar and select all that apply)
Business
1 answer:
tatuchka [14]3 years ago
3 0

Answer:

Lease payable for $79,383

Interest expense for $20,617

Explanation:

Calculation for the amount that Tucker should recognize the second lease payment

Calculation for Lease payable

Lease payable =$100,000-($357,710-$100,000)*8%

Lease payable =$100,000-($257,710*8%)

Lease payable =$100,000-$20,617

Lease payable =$79,383

Calculation for Interest expense

Interest expense =( $357,710-$100,000)*8%

Interest expense =$257,710*8%

Interest expense =$20,617

Therefore Tucker should recognize the second lease payment by debiting:

Lease payable for $79,383

Interest expense for $20,617

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Empire Company is a manufacturer of smartphones. Its controller resigned in October 2017.
Helen [10]

Answer:

a. Schedule of cost of goods manufactured for October 2017.

Raw materials costs  ($264,000  + $18,000 - $29,000)   $253,000

Direct labor costs                                                                 $190,000

Depreciation on factory equipment                                      $31,000

Indirect labor cost                                                                  $28,000

Rent on factory facilities                                                        $60,000

Utilities expense $12,000  × 75%                                            $9,000

Insurance expense $8,000 × 60%                                         $4,800

Add Opening Work in process Inventory                            $20,000

Less Closing Work in process Inventory                             ($14,000)

Cost of goods manufactured                                               $581,800

b. Income statement for October 2017.

Sales Revenue                                                                     $780,000

Less Cost of Goods Sold :

Opening Finished goods Inventory                $30,000

Add Cost of goods manufactured                 $581,800

Less Closing Finished goods Inventory        ($50,000)   ($561,800)

Gross Profit                                                                           $218,200

Less Expenses :

Advertising expense                                        $90,000

Selling and administrative salaries                  $75,000

Depreciation on sales equipment                   $45,000

Utilities expense 12,000  × 25 %                        $3,000

Insurance expense 8,000 × 40 %                      $3,200   ($216,200)

Net Profit / Loss                                                                       $2,000

Explanation:

First, Prepare the cost of goods manufactured for October 2017 and include the amount in the calculation of cost of goods sold.

In the cost of goods manufactured schedule, include only the costs that are factory related.

Then, Prepare the income statement for October 2017, making sure to adjust the Utilities and Insurance expenses appropriately.

4 0
3 years ago
Patagonia managers look for employees who actively participate in the sport they design products for (i.e. a surfboard shaper ha
pochemuha

Answer:

job requirements or qualifications

Explanation:

Job requirements or qualifications refers to the set of skills, abilities, work experience, educational background, hobbies, etc., that the company considers are necessary for a candidate to possess in order for him/her to successfully perform the tasks related to the job opening.

In this case, Patagonia uses personal hobbies and lifestyle as part of their requirements for applying for a job, other companies might focus more on leadership skills, education, experience, but it depends on the type of product or service that the company sells.

4 0
3 years ago
You have a $15,000 portfolio which is invested in Stocks A and B, and a risk-free asset. $6,000 is invested in Stock A. Stock A
DerKrebs [107]

Answer:

$7073.68

Explanation:

Data provided in the question:

Worth of portfolio = $15,000

Amount invested in stock A = $6,000

Beta of stock A = 1.63

Beta of stock B = 0.95

Beta of portfolio = 1.10

Now,

Beta portfolio = ∑(Weight × Beta)

let the amount invested in Stock B be 'x'

thus,

1.10 = [($6,000 ÷ $15,000 ) × 1.63] +  [( x ÷ $15,000 ) × 0.95 ]

or

1.10 = 0.652 + [( x ÷ $15,000 ) × 0.95 ]

or

0.448 = [( x ÷ $15,000 ) × 0.95 ]

or

x = ( 0.448 × $15,000 ) ÷ 0.95

or

x = $7073.68

6 0
3 years ago
The federal funds rate is the interest rate that banks charge each other.<br><br>T or f
sleet_krkn [62]

Answer: F

Explanation: The fed funds rate is the interest rate that depository institutions—banks, savings and loans, and credit unions—charge each other for overnight loans. The discount rate is the interest rate that Federal Reserve Banks charge when they make collateralized loans—usually overnight—to depository institutions.

5 0
3 years ago
What is the nash equilibrium for this​ game?
NeTakaya
<span>The  nash</span> equilibrium would be A. <span> bp and the mini-mart will both not advertise.
The nash equilibrium happens when all of the competitors choose the decision that give the optimal outcome for both of them.
If Bp and mini-mart both choose not to advertise they both will have a similar profit.</span>
4 0
3 years ago
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