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3 years ago

Division X makes a part with the following characteristics:

Business

1 answer:

Gemiola [76]3 years ago

8 0

Answer:

Amount to be lost= $60,000

Explanation:

The Division X is operating at less than full capacity, hence it has excess capacity

This implies that it can produce enough to meet both the internal and external buyers. In this situation, the minimum transfer will be

minimum transfer price= Variable cost= $11

If Division X refuses to accept $17, the company has a whole will lose

amount paid by Division Y to the external supplier in excess of $11 .

Amount to be lost = (17-11)× 10,000

= $60,000

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If Dakota Company issues 1,500 shares of $6 par common stock for $75,000,

HACTEHA [7]

<u>Answer:Option C </u>Paid-In Capital in Excess of Par will be credited for $66,000

<u>Explanation:</u>

Given

No of shares 1,500

Par value $6

Common stock $75,000

Par value of stock = No of shares x Par value

=1500 x 6

=9,000

Excess paid in capital = Common stock - Par value

=75000-9000

=$66,000

So the Paid in capital which is excess of par value will be credited. It can also be termed as the market value of the shares. Par value will be mentioned in the share document. When there is additional paid in capital it is a credit balance in company accounts.

5 0

3 years ago

Consider the following two mutually exclusive projects:Year Cash Flow (X) Cash Flow (Y)0 ?$16,400 ?$16,400 1 6,660 7,190 2 7,240

pickupchik [31]

Answer:

1a. 7.12%

b. 6.99%

2. 9.69%

Explanation:

The IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be calculated using a financial calculator.

The IRR for project X :

Cash flow in year 0 = $-16,400

Cash flow in year 1 = $6,660

Cash flow in year 2 = $7240

Cash flow in year 3= $4760

IRR = 7.12%

The IRR for project Y :

Cash flow in year 0 = $-16,400

Cash flow in year 1 = $7,190

Cash flow in year 2 = $7,780

Cash flow in year 3 = $3530

IRR = 6.99%

The cross over rate is the rate that equates the cash flow from both projects.

The first step is to subtract the cash flow from project Y from the cash flow of project X

Cash flow for year 0 = $16400 - $16400 = 0

Cash flow for year 1 = $6,660 - $7,190 = $-530

Cash flow for year 2 =$7,240 -$7,780 =$-540

Cash flow for year 3 = $4,760 - $3,530 = $1230

The next step is to find the discount rate using a financial calculator.

Cash flow for year zero = 0

Cash flow for year one = $-530

Cash flow for year 2 =$-540

Cash flow for year 3 =$1230

Cross over rate = 9.69%

I hope my answer helps you

6 0

3 years ago

On September 15, 2021, Oliver's Mortuary received a $3,600, nine-month note bearing interest at an annual rate of 14% from the e

pentagon [3]

Answer:

The Journal entry is as follows:

On December 31, 2021

Interest Receivable A/c Dr. $147

To Interest revenue A/c $147

(To record the interest receivable)

Working notes:

Interest Receivable:

= Amount received × Annual rate of interest × Time period

= $3,600 × (14% ÷ 12) × 3.5

= $3,600 × 0.01167 × 3.5

= $147

8 0

3 years ago

On October 1, Vista View Company rented warehouse space to a tenant for $3,600 per month. The tenant paid five months' rent in a

Damm [24]

Answer:

The adjusting entry needed on December 31 is:

Debit Unearned Rent revenue $10,800

Credit Rent Revenue $10,800

Explanation:

Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made.

The tenant paid five months' rent in advance on October 1. From October 1 to December 31, Vista View Company had rented warehouse space to a tenant for 3 months.

The adjusting entry needed on December 31 is:

Debit Unearned Rent revenue $10,800 ($3,600 x 3 = $10,800)

Credit Rent Revenue $10,800

7 0

3 years ago

Unicef is an intergovernmental organization (IGO) but it has independent national committees in 36 countries.

pav-90 [236]

Answer:

C. NGOs

Explanation:

NGO is the acronym for Non-governmental organization and it is mainly a non-criminal, non-profit, voluntarily inclined groups which is independent of governmental influence and policies.

They are organized on community or local, national and international levels to attend to social issues or political purposes.

Hence, the independent national committees in 36 countries that rely on private funding are NGOs.

3 0

3 years ago