What is a market?

Which of these types of products usually involves the customer doing comparison shopping?

choli [55]

Normally customer does comparison shopping between consumer goods

7 0

3 years ago

Before Cheyenne Corporation engages in the following treasury stock transactions, its general ledger reflects, among others, the

strojnjashka [21]

Answer:

a) Bought 400 shares of treasury stock at $40 per share:

Dr Treasury stock 16,000

Cr Cash 16,000

( to record the repurchased of 400 shares at $40 each)

b) Bought 290 shares of treasury stock at $45 per share:

Dr Treasury stock 13,050

Cr Cash 13,050

( to record the repurchased of 290 shares at $45 each)

c) Sold 370 shares of treasury stock at $42 per share:

Dr Cash 15,540

Cr Common stock 14,800

Cr Paid-in capital - common stock 740

( to record the sell of 370 shares repurchased at selling price of $42)

d) Sold 110 shares of treasury stock at $38 per share:

Dr Cash 4,180

Dr Paid-in capital - common stock 620

Cr Common stock 4,800

( to record the sell of 110 shares repurchased at selling price of $38)

Explanation:

a)

Following repurchased of 400 shares at $40 each, cash account goes down (Cr) by 40 x 400 = $16,000; Treasury account will go up (Dr) by the same amount.

b)

Following repurchased of 290 shares at $45 each, cash account goes down (Cr) by 290 * 45 = $13,050; Treasury account will go up (Dr) by the same amount.

c)

As FIFO apply, the selling of 370 repurchased stock will make the Common stock account goes up (Cr) by 40 x 370 = 14,800; Cash account goes up (Dr) by 370 x 42 = $15,540; the difference of 740 will go into (Cr) Paid-in capital - common stock.

d)

As FIFO apply, the selling of 110 repurchased stock will make the Common stock account goes up (Cr) by 30 x 40 + (110-30) * 45 = $4,800; Cash account goes up (Dr) by 110 x 38 = $4,180; the difference of 620 will go into (Dr) Paid-in capital - common stock.

7 0

3 years ago

Effective internal control activities over the payroll function may include Reconciliation of totals on job time tickets with jo

Svet_ta [14]

Answer:

Verification of agreement of job time tickets with employee clock card hours by a payroll department employee.

Explanation:

An effective internal control system

This simply aim to give adequate hope that the policies, processes, tasks, behaviours etc, of an organisation, when complied, helps its effective and efficient operation of the organisation etc.

It is very essential in the payroll and personnel cycle to prevent over payments and payments to nonexistent employees. Proper authorization by the human resources department should add and delete employees from the payroll or change pay rates and deductions. The number of hours, overtime, must be approved by employees supervisor.

Payroll computations should be separately verified. A member of management should review the payroll output for any obvious errors or unusual amounts.

7 0

3 years ago

In 2008, Cameron began his career with SBC. His starting salary was $32,000. By 2012, his salary increased to $35,000. If the CP

frez [133]

Based on the CPI in 2008 and 2012, Cameron's 2012 real income is <u>$34,400</u>.

<h3>What is real income?</h3>

The real income is the inflation-adjusted income. It is not the same as the nominal income.

For instance, Cameron's nominal income in 2012 is $35,000, but the inflation-adjusted (CPI) real income should be $34,400 based on his starting salary of $32,000 in 2008.

<h3>Data and Calculations:</h3>

Starting salary in 2008 = $32,000

Salary in 2012 = $35,000

Consumer Price Index (CPI) in 2008 = 100.0

Consumer Price Index (CPI) in 2012 = 107.5

CPI adjusted salary in 2012 should be (real income) = $34,400 ($32,000 x 107.5/100.0)

Thus, based on the CPI in 2008 and 2012, Cameron's 2012 real income is <u>$34,400</u>.

Learn more about CPI and real income at brainly.com/question/24802187

8 0

2 years ago

An investor is contemplating the purchase of a 20-year bond that pays $50 interest every six months. the investor plans to hold

irinina [24]

Answer: The investor should be willing to pay <u>$927.68 </u>for the bond today.

We in need to compute the price at which the investor can sell the bond in year 10 (Y10).

The price of the bond in year 10 will be the present value of the coupons over the remaining life of the bond and the maturity value of the bond after 20 years.

We have

Coupon Value (C ) $50.00

No. of coupons remaining (n) 20

Expected YTM in year 10 0.08

Expected semi annual YTM in year 10 $\frac{0.08}{2} =0.04$

Face (Maturity) Value of the bond (MV) $1,000.00

The bond price in year 10 will be

$\mathbf{Bond Price_{Y10}=C*\left ( \frac{1-(1+r)^{-n}}{r}\right )+\frac{MV}{(1+r)^{n}}}$

Substituting the values we get,

$Bond Price_{Y10}=50*\left ( \frac{1-(1+0.04)^{-20}}{0.04}\right )+\frac{1000}{(1+0.04)^{20}}$

$Bond Price_{Y10}=50*\left (13.59\right )+\frac{1000}{2.19}$

$\mathbf{Bond Price_{Y10}= 679.52+ 456.39 = 1,135.90}$

<u>Hence the investor can expect to sell the bond in year 10 at $1,135.90.</u>

Now, we'll calculate the price the investor is willing to pay for the bond. The investor can expected to pay the Present Value of the coupons she'll receive over 10 years and the selling price of the bond 10 years from now. We discount the cash flows at the rate of return the investor expects.

We have

Coupon Value (C ) $50.00

No. of coupons remaining (n) 20

Expected rate of return 0.12

Expected semi annual rate of return $\frac{0.12}{2} =0.06$