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3 years ago

First Rentals purchased office supplies on credit. The general journal entry made by First Rentals will include a:

1 answer:

5 0

The general journal entry made by First Rentals on purchase of office supplies on credit will include a Credit to Accounts Payable.

<h3>How are office supplies on credit recorded?</h3>

Office supplies on credit means office supplies bought on credit by the firm.

In conclusion, the general journal entry made by First Rentals on purchase of office supplies on credit will include a Credit to Accounts Payable.

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Redbud Company uses a certain part in its manufacturing process that it buys from an outside supplier for $44 per part plus anot

Fiesta28 [93]

Answer:

Redbud Company

A) Relevant costs:

B) Direct labor

C) Direct material

D) Variable overhead

F) New manager's salary

B) B) Redbud is indifferent about the decision.

C. Other factors to consider:

B) The potential for improved control over the availability of the parts by having it when needed and the potential for improved quality of the parts.

C) Since Redbud Company is considering the use of currently available capacity, it should evaluate any relevant opportunity costs of using this capacity for more profitable activities.

Explanation:

a) Data and Calculations:

Cost of buying parts from outside supplier = $50 per part

Units required in the next year = 10,000

Costs required to produce internally:

Supervisor's salaries $40,000

Direct material $ 28

Direct labor 12

Variable overhead 6

Fixed overhead (includes

manager at $4 per unit) 10

Total unit cost $ 56

Relevant costs:

Direct material $ 28

Direct labor 12

Variable overhead 6

Fixed overhead (includes

manager at $4 per unit) 4

Total unit cost $50

6 0

3 years ago

You think the way you talk is important to listener?

yuradex [85]

Yes because if you talk in monotone then the lister will probably zone out and not listen. If you talk with more enthusiasm then the lister will probably actually listen to you.

5 0

3 years ago

What is a blue chip stock?

saveliy_v [14]

A blue-chip stock is the stock of a large, well-established and financially sound company that has operated for many years. A blue-chip stock typically has a market capitalization in the billions, is generally the market leader or among the top three companies in its sector, and is more often than not a household name.

7 0

3 years ago

Read 2 more answers

Excelor stock is expected to pay $3.00 per share as its next annual dividend. The firm has a policy of increasing the dividend b

andrew-mc [135]

Answer:

30.92%

Explanation:

You find the answer by calculating the cost of equity using two methods; Dividend discount model and CAPM

<u>Dividend discount model;</u>

cost of equity; r = (D1/P0) +g

whereby, D1 = next year's dividend = 3.00

P0= current price = 13.65

g = dividend growth rate = 11% or 0.11 as a decimal

r = (3/13.65) + 0.11

r = 0.2198 + 0.11

r= 0.3298 or 32.98%

<u>Using CAPM;</u>

r = risk free + beta (Market risk premium)

r = 0.049 + (2.8 * 0.0856)

r = 0.049 + 0.2397

r = 0.2887 or 28.87%

Next, find the average of the two cost of equities;

=(32.98% + 28.87% )/2

= 30.92%

3 0

3 years ago

A father and mother are planning a savings program to put their daughter through college. Their daughter is now 8 years old. She

Anna71 [15]

Answer:

$4,102.57

Explanation:

we must first calculate the future costs of college:

cost of college year 1 = $16,200 x (1 + 2%)¹⁰ = $19,747.71

cost of college year 2 = $19,747.71 x 1.02 = $20,142.66

cost of college year 3 = $20,142.66 x 1.02 = $20,545.51

cost of college year 4 = $20,545.51 x 1.02 = $20,956.42

in order to determine how much money does the family need to have before college starts we must discount the cost of college by 7.5%:

PV cost of college year 1 = $19,747.71

PV cost of college year 2 = 20,142.66 / 1.075 = $18,737.36

PV cost of college year 3 = $20,545.51 / 1.075² = $17,778.70

PV cost of college year 4 = $20,956.42 / 1.075³ = $16,869.09

total = $73,132.86

the future value of the grandmother's deposits:

$13,000 x (1 + 7.5%)¹⁴ = $35,781.77

$2,900 x (1 + 7.5%)¹² = $6,907.16

total = $42,688.93

that means that you will need to save $73,132.86 - $42,688.93 = $30,443.93 by the time your child turns 18

you will make 4 deposits and their future value will be:

deposit x 1.075¹⁰ = 2.0610D

deposit x 1.075⁹ = 1.9172D

deposit x 1.075⁸ = 1.7835D

deposit x 1.075⁷ = 1.6590D

total = 7.4207D

yearly deposit = $30,443.93 / 7.4207 = $4,102.57

4 0

3 years ago