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3 years ago

Adjusting Entry at Balance Sheet Date

Business

1 answer:

Nezavi [6.7K]3 years ago

7 0

Answer:

The entries are prepared and explained in the explanations.

Explanation:

The question is to prepare the adjusting entries recorded by Yum! Brand

Number 1:

Account Items Debit Credit

Cash $60,000

Foreign Exchange loss $5,000

Accounts Receivable $65,000

(1,000,000 x 0.06= $60,000

65,000 - 60,000= $5,000 loss)

Number 2:

Account Items Debit Credit

Cash $168,750

Account Receivable $165,000

Foreign Exchange gain $3,750

225,000 x 0.75= 168, 750

$168,750- $165,000 = $3,750

Number 3:

Account Items Debit Credit

Accounts Payable $556,000

Foreign Exchange loss $8,000

Cash $564,000

400,000 x $1.41 = $564,000

564,000-556,000= $8,000

Number 4:

Account Items Debit Credit

Accounts Payable $56,000

Foreign Exchange gain $2,000

Cash $54,000

200,000 x $0.27= $54,000

56,000- 54,000=$4000

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During May, Bergan Company accumulated 2,500 hours of direct labor costs on Job 200 and 3,000 hours on Job 305. The total direct

alex41 [277]

Answer: Please see answers in explanation column

Explanation:

a)Total Labor Cost for Job 200 = Labor Hours x Direct labor rate

= 2,500 x $ 28

= $ 70,000

b)Total Labor Cost for Job 305 = Labor Hours x Direct labor rate

= 3,000 x $ 24

= $ 72,000

Labor Cost for Job 200 and Job 305 during May = $ 70,000 + $ 72,000

= $ 142,000

Date Account Titles and Explanation Debit Credit

May 31st Work In Progress $142,000

Wages Payable $ 142,000

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2 years ago

Based on current dividend yields and expected capital gains, the expected rates of return on portfolios A and B are 9.1% and 12.

podryga [215]

Answer:

A.) ALPHA

Portfolio A = 8.5%

Portflio B = 13.5%

B.) Sharpe measure

Portfolio A = 0.1519

Portflio B = 0.1479

Explanation:

T- bill rate (Rf) =5%

S&P 500 index ( Rm) = 10%

Portfolio A;

Expected rate of return = 9.1%

Beta (B) = 0.7

Standard deviation (s) = 27%

Portfolio B;

Expected rate of return = 12.1%

Beta (B) = 1.7

Standard deviation = 48%

Required rate of return for both portfolios;

Rf + B × (Rm - Rf)

Portfolio A :

5% + 0.7 ×(10% - 5%) = 5% + 0.7 × (5%)

5% + 3.5% = 8.5%

Portfolio B :

5% + 1.7 ×(10% - 5%) = 5% + 1.7 × (5%)

5% + 8.5% = 13.5%

A) Alpha(A) of Portfolio A and B ;

A = Expected return - Required return

Alpha of portfolio A :

9.1% - 8.5% = 0.6%

Alpha of Portfolio B:

12.1% - 13.5% = - 1.4%

B.) Sharpe measure for portfolio A and B;

Sharpe ratio = (Expected rate of return - Rf) / s

Portfolio A = (9.1% - 5%)/27% = 0.1519

Portfolio B = (12.1% - 5%)/48% = 0.1479

I will choose Portfolio A

8 0

3 years ago

Manny hired his brother’s firm to provide accounting services to his business. During the current year, Manny paid his brother’s

Naily [24]

Answer:

$64,000

Explanation:

In order to be deductible, a business expense must be both ordinary and necessary. Being ordinary means that it is a plausible expense for this business, since the expense in question is related to accounting services, it is ordinary. Being necessary means that the expense is the minimum required and is appropriate and helpful to the business. In this case, all of the expense was not required, therefore, only $64,000 (the reasonable market value for the services provided) are deductible.

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3 years ago

Active trading in markets and competition among securities analysts helps ensure that: I. Security prices approach informational

Anika [276]

Answer:

The answer is: All the options are correct (I, II and III)

Explanation:

The larger the number of individuals (e.g. securities analysts, investors) who are informed about the price system of securities, the prices of securities will approach informational efficiency.

When the system approaches informational efficiency, you can determine which securities are riskier than others. Therefore you can price riskier securities so that they offer higher expected returns.

The other positive effect of informational efficacy is that investors can determine which securities are undervalued or overvalued.

8 0

3 years ago

A machine costing $251,800 was purchased May 1. The machine should be obsolete after three years and, therefore, no longer usefu

e-lub [12.9K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

A machine costing $251,800 was purchased May 1. The machine should be obsolete after three years and, therefore, no longer useful to the company. The estimated salvage value is $3,400.

A) Straight-line:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (251,800 - 3,400)/3= $82,800

B) Double declining balance:

Annual depreciation= 2*[(original cost - residual value)/estimated life (years)]

Year 1= (248,400/3)*2= 165,600

Year 2= 55,200

Year 3= 18,400

5 0

3 years ago