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2 years ago

Robert a highly successful manager, quit his job in a large retail store so that he could start his own

Business

1 answer:

olga2289 [7]2 years ago

7 0

Answer:

Robert a highly successful manager, quit his job in a large retail store so that he could start his own

practice. He has been in his own business for a little over one year. He has a building and pays

$40,000 mortgage payments

He took out $200.000 which he had in a Time Deposit (CD) that was making 8% a year and put it in

his checking account that is making 0% Interest, He will use that money for the explicit cost

expenses he has for his new business which you will see in this problem

He must pay $7.000 a year in property taxes. He hired a contract software developer to write an

Inventory software system for $160,000 for the year. His revenues in the first year were $350.000.

Thomas earned $200.000 he was with that large retail form. He also got 560.000 a year in profit

sharing each year. His advertising for his first year came to $40,000. His electricity and gas usage

came to $20,000 for the year.

1. List the explicit costs and then list the implicit costs. Be sure to properly LABEL them so that

can give partial credit if you make a mistake.

2. For the year, his accounting profit for loss) is -

and his economic profit for loss) is

3. Did he make an economic profit an economic loss or did he break even? What does his economic

profit breakeven, or economic loss result mean?

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Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2020. As of that date, Abernethy has the followin

kobusy [5.1K]

The consolidation worksheet entries for December 31, 2020, and December 31, 2021 is: Debit Common Stock -Abernethy $250000; Debit Additional paid-n capital – Abernethy $50,000; Debit Retained earnings $431,110; Credit Investment in Abernethy $731,110.

<h3> Consolidation worksheet entries </h3>

December 31, 2020

Entry S

Debit Common Stock -Abernethy $250000

Debit Additional paid-n capital – Abernethy $50,000

Debit Retained earnings $431,110

($731,110-$250,000-$50,000)

Credit Investment in Abernethy $731,110

(Elimination entry for Abernethy common stock)

Entry A

Debit Goodwill $107,510

Credit Investment in Abernethy $107,510

($731,110-$250,000+$323,600+$50,000)

(To recognize excess acquisition cost as goodwill)

Entry I

Debit Equity in Earnings of Subsidiary $129,000

Credit Investment in Abernethy $129,000

(Elimination entry for inter-company income for 2020)

Entry D

Debit Investment in Abernethy $16,000

Credit Dividends paid $16,000

(Elimination of inter-company dividend payments)

Entry E

No Journal Entry Required

(Unamortized goodwill under the partial equity method)

Entry C

No Journal entry required

(Goodwill unamortized)

December 31, 2021

Entry S

Debit Common Stock – Abernethy $250,000

Debit Additional-Paid-in Capital –Abernethy $50,000

Debit Retained Earnings –Abernethy $431,110

($731,110-$250,000-$50,000)

Credit Investment in Abernethy $731,110

(Elimination entry of beginning stockholder’s equity balances of Subsidiary)

Entry A

Debit Goodwill $145,000

Credit Investment in Abernethy $145,000

(To record goodwill balance)

Entry I

Debit Equity in Earnings in Subsidiary $176,000

Credit Investment in Abernethy $176,000

(Elimination of inter-company accrual for the year 2021)

Entry D

Debit Investment in Abernethy $38,000

Credit Dividends Paid $38,000

(Elimination of inter-company dividend payments)

Entry E

No journal entry is required

Therefore the entries is: Debit Common Stock -Abernethy $250000; Debit Additional paid-n capital – Abernethy $50,000; Debit Retained earnings $431,110; Credit Investment in Abernethy $731,110.

Learn more about Consolidation worksheet entries here:brainly.com/question/15128084

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4 0

2 years ago

Opera Corp uses the periodic inventory system. For the current month, the beginning inventory consisted of 7,200 units that cost

Kryger [21]

Answer:

$159,057

Explanation:

The computation of cost of goods sold is shown below:-

Total cost of goods available for sale = (7,200 × $10) + (4,000 × $13) + (12,000 × $13.50)

= $72,000 + $52,000 + $162,000

= $286,000

Total units = 7,200 + 4,000 + 12,000

= 23,200

Average cost per unit = Total cost of goods available for sale ÷ Total units

= $286,000 ÷ 23,200

= $12.33

So,

Cost of Goods sold = Sold units during the month × Average cost per unit

= 12,900 × $12.33

= $159,057

Therefore for computing the cost of goods sold for the month we simply applied the above formula.

3 0

2 years ago

You have obtained a sub-sample of 1744 individuals from the Current Population Survey (CPS) and are interested in the relationsh

allochka39001 [22]

Answer:

Let me give you an example of a segment addition problem that uses three points that asks the student to solve for x but has a solution x = 20.

First, I assumed values for each x, y and z and then manipulated their coefficients to get the total at the end of each equation.

20 + 10 +30 = 60

40 + 0 + 40 = 80

40 + 10 = 50

Then exchangeing these numbers into values and we have the following equation.

x + 2y + 3z = 60

2x + 4z = 80

2x + z = 50 so its easy

If you will solve them manually by substituting their variables into these equations, you can get

x = 20

y = 5

z = 10

Explanation:

4 0

3 years ago

How physical asset valuation (PAV) and research and

stellarik [79]

Answer:

We'll take this one after the other.

A. First Physical Asset Valuation (PAV) refers to the act of writing up or writing down the carrying value of an organisations assets in its balance sheet.

In simple terms, it refers to increasing upwards or downwards the value of an organisations asset in its balance sheet.

When assets are written down, the following are likely to occur:

Critical changes to an organization’s business model or strategy, such as termination of the business and loss of a regulatory licence;

A significant reduction in the cash flow or bottom line of the business;

when the long term growth rates, interest rates or other financial factors such as prices or value of currencies, upon which a business valuation based decline, this impacts the valuation of an asset negatively.

B. Research and Development (R&D)

R&D refers to all the studies, scientific investigations and experiments carried out to enable the discovery and creation of a new or innovative product or service that is more efficient and effective.

The reason there is a risk associated with R&D is that there are usually many elements of uncertainty.

The ideas being tested are usually novel and have not been tried before.

Some of the risks associated with R&D are:

the possibility that the new product will fail in the market;

a new product or service that is does not work

the possibility of cost creep. That is a situation where the cost of the R&D outweighs the potential profit from the product or service.

Cheers!

6 0

2 years ago

All of the following are arguments against increased social responsibility except:________.

Sveta_85 [38]

You can’t see any options so no one will know what to answer.

5 0

3 years ago

Read 2 more answers