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3 years ago

Assume the following adjustment data.

Business

1 answer:

Amanda [17]3 years ago

3 0

Answer:

Debit : Balance Sheet $520

Credit : Supplies $520

Debit : Insurance expense $120

Credit : Prepaid Insurance $120

Debit : Depreciation expense $135

Credit : Accumulated depreciation expense $135

Debit : Unearned Revenue $950

Credit : Revenue Earned $950

Debit : Trade Receivable $250

Credit : Service Revenue $250

Debit : Interest expense $75

Credit : Note Payable $75

Debit : Salaries expense $1,520

Credit : Accounts Payables $1,520

Explanation:

So adjusting entries are done at the end of the reporting period, in this case it is the end of October.

For most of these entries we recognize expenses and a corresponding decrease in assets or increase in liabilities.

As for revenue previously unearned, we have to recognize the revenue portion now earned.

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A bond with a 5-year maturity has a face value of 1,000 and coupon of 8%. Its amortization schedule is 20% at the end of year 3

tatiyna

Answer:

Its total cash flow at the end of year 3 is:

$792.

Explanation:

a) Data and Calculations:

Maturity of bond = 5 years

Face value = $1,000

Coupon rate = 8%

Amortization schedule for each year = 20% (100/5)

Bond’s Periodic Cash flows:

End of year 1 = $200 + $80 interest ($1,000 * 8%) = $280

End of year 2 = $200 + $64 interest ($800 * 8%) = $264

End of year 3 = $200 + $48 interest ($600 * 8%) = $248

Total cash flow at the end of year 3 = $792

6 0

3 years ago

A $2.00 increase in a product's variable expense per unit accompanied by a $2.00 increase in its selling price per unit will: A)

liubo4ka [24]

Answer:

A) decrease the degree of operating leverage

Explanation:

The contribution margin is

sales - variable:

(sales + 2) - (variable + 2) = sales - variable

no change

so B is FALSE

as the contribution margin ratio is:

(sales - variable ) / sales

this increase will impact the contribution margin ratio.

(sales + 2 - (variable +2))/ (sales + 2)

(sales - variable) / (sales + 2)

the CMR will decrease.

so D is FALSE

the break-even on sales will increase as the CMR decreases

more units are needed to fullfil the fixed cost

so C is FALSE

A) decrease the degree of operating leverage

ΔEBIT / Δrevenue

sales increase and the variable cost increases

a change in the sales revenue will not be as efficient as it was before the degree of leverage will decrease.

3 0

4 years ago

Calculate the payout ratio, earnings per share, and return on common stockholders’ equity. (Round earning per share to 2 decimal

drek231 [11]

Answer:

Payout Ratio 69.9%

Earning Per Share $0.94

Return on the Common Stockholder Equity 12.6%

Explanations:-

Monty Corp

1. Calculation for Payout Ratio

Using this formula

Payout Ratio = Dividend Declared/Net Income

Dividend Declared = $0.70 * Shares outstanding

Shares outstanding:-

Opening ($837,500/$3) =279,167

Issued on Feb 1 5310

Treasury (4900)

Purchased Treasury on March 20 (1300)

Shares outstanding 278,277

Dividend Declared = 278277 * $0.70

= $194,793.90

Net Income = $278600

Payout Ratio = $194793.90/$278600 = 69.9%

Therefore Payout Ratio will be 69.9%

2. Calculation for Earning Per Share

Using this formula

Earning Per share =(Net Income – Preference Dividend)/Avg Common Stock shares

Net Income = $2786,00

Preference Dividend = $294,000 * 6%

= $17640

Average Common Stock shares = (Beginning Shares outstanding + Ending Shares outstanding)/2

Beginning Shares outstanding = 279,167 – 4,900 = 274,267

Ending Shares outstanding = 278,277

Average = (274,267 + 278,277)/2 = 276,272

Earning Per Share= ($278,600 - $17,640)/276,272 = $0.94

Therefore Earning per share will be $0.94

3. Calculation for Return on Common Stockholders Equity

Using this formula

Return on Common Stockholder Equity =

(Net Income – Preference Dividend)/Avg Common Stockholder Equity

Average Common Stockholder Equity = (Beginning Stockholder Equity + Ending Stockholder Equity)/2

Beginning Stockholder Equity will be:

Beginning common stock $837,500

Beginning Paid-in Capital in Excess of Stated Value on Common Stock $536,000

Beginning Retained Earnings $695,000

Treasury Stock($39,200)

Beginning Stockholder Equity $2,029,300

Ending Stockholder Equity will be:

Ending common stock ($837,500 + [5,310*$3])

=$853,430

Ending Paid-in Capital in Excess of Stated Value on Common Stock ($536,000 + [5,310 * $4]) =$557,240

Ending Retained Earnings $761,166.10

Treasury Stock ($39,200 + [1300 * $9])

=($50900)

Beginning Stockholder Equity$2,120,936.10

Calculation for Ending Retained Earnings

Using this formula

Ending Retained Earnings = Beginning Retained Earnings + Net Income – Dividend on common & Preferred stock

= $695, 000 + $278,600 – ($194,793.90 + $17,640)

= $761,166.10

Average Common Stockholder Equity = ($2,029,300 + $2,120,936.10)/2 = $2,075,118.05

Return on Common Stockholder Equity = ($278,600 - $176,40)/$2,075,118.05

Return on Common Stockholder Equity = 12.6%

Therefore the Payout Ratio is 69.9%

Earning Per Share is $0.94

Return on Common Stockholder Equity is 12.6%

3 0

3 years ago

What is one way the government tries to attain positive externalities?

Jlenok [28]

One way of representing attaining the positive externality by the government is through the promotion of education.

Option D is the correct answer.

<h3>What is an externality?</h3>

When the cost or advantage is received by a third party that is not related to the economic activity, then it is considered an externality.

A positive externality is the arousal of a positive effect on either production or consumption. The act of penalizing a company for pollution, imposing taxes on citizens earning more than $250,000 and the reduction in rates of interest would all be classified as negative externalities.

Therefore, the encouragement of education by the government is regarded as a positive externality.

Learn more about the externality in the related link:

brainly.com/question/24233609

#SPJ1

4 0

3 years ago

Axis corporation's division a has average operating assets of $500,000 and the division earned $100,000 as net operating income

Misha Larkins [42]

Residual income is named as such because it is the net income that you obtain. This includes all your total sales subtracted with bill payments, personal debts and other variable costs. Its formula is

Residual income = Net Operating Income - (Minimum Required Return * Average Operating Assets)

Substituting the values to the equation.

Residual Income = $100,000 - (0.15 × <span>$500,000)
Residual Income = $25,000

</span>The residual income gives the company an idea on its success and influences the company's decision to close or to expand. If the residual income is positive, then it means the company is earning more than its minimum. If the residual income is negative, then the company has a deficit.

4 0

4 years ago