Answer:
Revenue recognized in Dec= $3200
Explanation:
Lets first understand the criteria for revenue recognition. According to the accruals concept of accounting, an entity is supposed to record revenues and expenses as soon as they are earned and incurred. An entity shouldn't wait until the revenue is received and expenses are actually paid. The accruals concept of accounting is also based on the matching principle which requires entities to match and record expenses with the revenue of the period in which they occur. Considering the two concepts mentioned above, we may classify these transactions for revenue recognition as follows;
a. Receipt of $1200 cash:
In this case Lobos Inc. has received the cash in advance and the services against this payment will be rendered next month, therefore, this transaction doesn't imply an earned revenue rather it's a liability for Lobos Inc until the services are actually rendered. No revenue is recognized in December.
b. Perform $900 of services:
Lobos Inc. will provide services to this customer and will receive payment in next month, however the services have been provided which implies Lobos Inc has earned the revenue, though not received it yet but still following the accruals concept, Revenue is recognized in December.
c. Perform $2300 of services:
Similarly, Lobos Inc. will render services and will receive the payment against these services in the month of Dec, therefore, Lobos Inc can recognize revenue in December.
Considering the provided transactions, Lobos, Inc., should recognize $3,200 as revenue for December. The $1,200 cash received does not count as December's revenue since the service will be provided next month.
Explanation:In the field of accounting, revenue is recognized when it's earned, not necessarily when the cash payment is made. Looking at Lobos, Inc.,'s December transactions, we have:
Received $1,200 for services to be provided next month: This money does not count as December's revenue because the service will be provided next month, not in December.Performed $900 worth of services and billed customers: This $900 counts as revenue for December because the services were performed during this month, regardless of when customers make their payments.Performed $2,300 worth of services and received full cash payment from customers: This $2,300 counts as December revenue because services were provided and payment was received during this month.Adding the $900 and $2,300 transactions, Lobos, Inc., should recognize $3,200 in revenue for December.
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Vista newspapers sold 6,000 of annual subscriptions at $125 each on September 1.
How much unearned revenue will exist as of December 31?
a. $0.
b. $500,000.
c. $250,000.
d. $750,000.
Answer:
Option (B) is correct.
Explanation:
Annual Subscription:
= 6000 × $125
= $750,000
Since, the payment was received for 1 Year, we will recognize 4 months revenue (1 September till 31st December) in the given year:
= $750,000 × (4/12)
= $250,000
Unearned Revenue as on 31st December:
= Total Payment Received - Revenue Recognized for 4 months
= $750,000 - $250,000
= $500,000
The unearned revenue for Vista newspapers as of December 31 is $500,000, which is the correct choice. This is found by calculating the monthly revenue from the total annual subscriptions and then multiplying it by the remaining eight months of the subscription period.
Explanation:The question pertains to the accounting concept of unearned revenue, which is relevant when a company receives payment for goods or services that have not yet been delivered or rendered. In this scenario, Vista newspapers sold 6,000 annual subscriptions at $125 each, totaling $750,000 in revenue on September 1. Since subscriptions cover an entire year, as of December 31, four months of the service will have been provided, leaving eight months unearned.
To calculate the unearned revenue as of December 31, we divide the total revenue by 12 months to get the monthly revenue and then multiply by the 8 months of service that will remain unprovided at that date:
Total Annual Revenue: $750,000Monthly Revenue: $750,000 / 12 = $62,500Unearned Revenue (8 months): $62,500 x 8 = $500,000Therefore, option b, $500,000, is the correct amount of unearned revenue that will exist as of December 31.
Evans Products uses a process costing system with two processing departments: the Mixing Department and the Finishing Department. In June, unit costs incurred by the Mixing Department amounted to $4.00 per unit. Unit costs transferred to the finished goods warehouse during the month amounted to $22. Work-in-process inventories are reduced to zero each month. The entry to record the sale of 3,500 units in June would include:
To record the sale of 3,500 units by Evans Products, you calculate the total cost of goods sold (COGS) by multiplying the number of units sold by the unit cost, resulting in a COGS of $77,000. The journal entry would involve debiting the Sales account and crediting Revenue for the total sales amount, and debiting COGS and crediting Inventory for $77,000.
The question involves the accounting process of recording the sale of goods in a company that uses a process costing system. The unit costs incurred by the Mixing Department are $4.00 per unit, and the costs transferred to the finished goods warehouse are $22 per unit. Since work-in-process inventories are reduced to zero each month, and the sale involves 3,500 units, to record the sale, you'd first need to calculate the total cost of the goods sold (COGS) which would be 3,500 units x $22/unit. Then, you would debit the Sales account and credit the Revenue account for the total sales amount, and debit the COGS account and credit the Inventory account for the total COGS.
Using accounting equations:
Total COGS = Number of units sold x Cost per unit
Total COGS = 3,500 units x $22/unit
Total COGS = $77,000
The journal entry would be:
Debit Sales (for the total sales amount)
Credit Revenue (for the total sales amount)
Debit COGS (for $77,000)
Credit Inventory (for $77,000)
Evans Products records the sale of units by debiting Accounts Receivable or Cash and crediting Sales Revenue for the total sales amount. It additionally debits Cost of Goods Sold and credits Finished Goods Inventory for the cost associated with the number of units sold, in this case, 3,500 units at $22 each.
The subject of this question involves understanding process costing in the manufacturing industry, specifically within a company named Evans Products. The student is asked about the accounting entry related to sales in the context of a company that has a process costing system with two processing departments.
In this scenario, Evans Products has no remaining work-in-process inventories at the end of the month, and the unit costs after processing in the Mixing Department and Finishing Department sum up to $22 per unit. For the sale of 3,500 units, the total cost of goods sold (COGS) will be 3,500 units multiplied by $22, which is $77,000. Assuming the sales revenue per unit is greater than or equal to COGS, the entry to record sales would include a debit to Accounts Receivable or Cash (depending on whether the sale was on credit or for cash), and a credit to Sales Revenue for the total sales amount. Additionally, a debit to Cost of Goods Sold and a credit to Finished Goods Inventory would be recorded for $77,000.
Which of the following would have the least amount of influence on a manager's choice of whichinputs to employ in a production process?
Select one:
A. The price of a competitor's output.
B. The technology of the production process.
C. The marginal productivity of the inputs that can be used in the production process.
D. The prices of the inputs that can be used in the production process.
Answer:
The least important is the Option A "The price of a competitor's output". It has no influence in the decision of the manager about the inputs in the production process. The choice of inputs will depend on the technology, prices of the inputs and their marginal productivities.
Explanation:
The least important is the Option A "The price of a competitor's output". It has no influence in the decision of the manager about the inputs in the production process. The choice of inputs will depend on the technology, prices of the inputs and their marginal productivities.
Option B: The technology of the production process could affect the decision about the inputs employed because they are closely related.
Option C: The marginal productivity affect the decision about the inputs because it determines how the productivity can be maximized.
Option D: The prices of the inputs affect the decision because low price inputs (related with their marginal productivity) will be prefer to the high price inputs.
The technology of the production process would have the least amount of influence on a manager's choice of which inputs to employ.
Explanation:The correct answer is B. The technology of the production process. A manager's choice of which inputs to employ in a production process is usually influenced by several factors, such as the price of a competitor's output, the marginal productivity of the inputs, and the prices of the inputs. However, out of the given options, the technology of the production process would have the least amount of influence on a manager's choice. This is because the technology determines how the inputs are used but does not directly affect the selection of inputs.
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Suppose that video game discs are a normal good. If the incomeof video game players increase, you predict that in the market forvideo games,
a) both equilibrium price and quantity will fall
b) equilibrium price will fall but quantity willincrease
c) equilibrium price will increase and quantity willdecrease
d) both equilibrium price and quantity will increase
Answer:
Option (D) is correct.
Explanation:
It was given that video game is a normal good. We know that there is a positive relationship between the demand for a normal good and income of the consumer, hence, if there is an increase in the income level of the consumer then as a result the demand for a normal good increases which shifts the demand curve for normal good rightwards.
Therefore, this will lead to increase both equilibrium price and equilibrium quantity in the market for video games.
Final answer:
If the income of video game players increases, d) both the equilibrium price and quantity in the market for video games will increase.
Explanation:
Equilibrium price and quantity refer to the point in a market where the demand for a good or service equals its supply, establishing a balance between buyers and sellers. At this equilibrium, the market-clearing price and quantity are determined, ensuring that all units offered by producers are bought by consumers. Changes in demand or supply can shift the equilibrium, leading to adjustments in price and quantity.
In the market for video games, if the income of video game players increases, it will result in an increase in demand for video games. This can be seen as a shift in the demand curve to the right. As a result, both the equilibrium price and quantity will increase.
After determining its profit-maximizing quantity of output, how does a monopolistic competitor choose its price? Group of answer choices
a. The firm will look at the demand curve to find out what it could charge for that quantity of output.
b. The firm will look at the average cost curve to find out what it could charge for that quantity of output.
c. The firm will look at the marginal revenue curve to find out what it could charge for that quantity of output.
Answer:
a. The firm will look at the demand curve to find out what it could charge for that quantity of output.
Explanation:
The monopolistic competition market has a large number of competing vendors and producers. In this type of market, firms compete by producing substitute (differentiated) goods that can replace each other, not homogeneous goods, while competing. The production of differentiated goods gives this market a competitive and monopolistic character, but because there are many vendors in the market, prices cannot be determined by a small number of companies. What is important in the monopolistic competition market is that the goods are attractive, preferable and indispensable. Characteristics of monopolistic competition:
1) Many sellers.
2) Differentiated products, products are not exactly the same as in the competitive market. Firms are not the determinants of the price.
3) Companies can enter and exit the market without restrictions. This traffic continues until the profit of the firms is worthless.
A profit-maximizing monopolistic competitor will have a target of the quantity in that case, marginal revenue should be equal to marginal cost and then he monopolistic competitor will start generate that level of output and finally, will decide charge the price which is indicated by the firm's demand curve. That demand curve will not be flat but downward sloped.
You have a project that will involve the purchase of real estate and renovation of the real estate.
Your our analysis indicates the project should have an IRR of 10 percent. Financing will consist of a mortgage (debt) of $90,000 dollars which represents 80 percent of the financing. The pretax cost of debt is estimated to be 8.5 percent. The remaining proportion of the financing will come from selling shares of your stock portfolio. Historically, your return has been 11 percent. Your marginal tax rate is 21 percent.
How would excel be used to figure this out?
Should you pursue the project?
Answer:
Yes the company should you pursue the project.
Explanation:
This problem requires us to tell whether we should pursue the project or not. The IRR of the project is given in the question and WAAC is required to be calculated. The company should accept the project if IRR (10%) is greater than or equal to company's WAAC.
So let calculate waac first.
WAAC = 80%* 8.5% (100% -21%) + 20% * 11%
= 5.4% + 2.2 %
= 7.6%
based on above mentioned rule the company should pursue the project.
Xia Co. currently buys a component part for $10 per unit. Xia believes that making the part would require $7.20 per unit of direct materials and $1.05 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 245% of direct labor cost. Xia estimates an incremental overhead rate of $0.75 per unit to make the part.
What are the relevant costs for Xia to make or buy the part? (Round your answers to 2 decimal places.) Should Xia make or buy the part?
Xia should make the part because it would be more cost-effective compared to buying the part.
Explanation:The relevant costs for Xia to make or buy the part include the direct materials, direct labor, overhead, and incremental overhead. Xia believes that making the part would require $7.20 per unit of direct materials, $1.05 per unit of direct labor, and an incremental overhead rate of $0.75 per unit. To calculate the overhead cost, Xia uses a predetermined overhead rate of 245% of direct labor cost.
Therefore, the relevant costs for Xia to make the part would be -
$7.20 (direct materials) + $1.05 (direct labor) + (245% * $1.05) (overhead) + $0.75 (incremental overhead). On the other hand, if Xia were to buy the part, the relevant cost would be $10 per unit.
Comparing the relevant costs, Xia should make the part if the cost of making is lower than the cost of buying. In this case, the cost of making the part is $9.508125 (rounded to 2 decimal places) per unit, while the cost of buying the part is $10 per unit. Therefore, Xia should make the part, as it would be more cost-effective.
Gardner Corporation purchased a truck at the beginning of 2012 for $90,000. The truck is estimated to have a salvage value of $3,600 and a useful life of 120,000 miles.
It was driven 18,000 miles in 2012 and 32,000 miles in 2013.
What is the depreciation expense for 2012?
a. $13,500b. $12,960c. $21,600d. $36,000
Answer:
Option (b) $12,960
Explanation:
Data provided in the question:
Cost = $90,000
Salvage value = $3,600
Useful life = 120,000 miles
Number of miles driven in 2012 = 18,000
Number of miles driven in 2013 = 32,000
Now,
Using the straight line method of depreciation
Rate of annual depreciation = [ Cost - Salvage value ] ÷ Useful life
= [ $90,000 - $3,600 ] ÷ 120,000
= $0.72 per mile
Therefore,
The depreciation expense for 2012
= Rate of annual depreciation × Number of miles driven in 2012
= $0.72 per mile × 18,000
= $12,960
Hence,
Option (b) $12,960
Soon after settling into her office for the day, Serish finds a note in her inbox from her supervisor. It says, "Here is a list of ideas that I have generated on how we can stop the bottleneck problem. Please feel free to ask questions or offer suggestions." By presenting her with some ideas and offering some assistance, Serish's boss has made it evident that he has more of a(n) _________ style of leadership as described by the leadership continuum model.
a. autocratic
b. relationship-oriented
c. task-oriented
d. situational
Answer:
The Sehrish's boss has leadership style of
b. relationship-oriented
Explanation:
The option a is not correct as autocratic leadership style is such style of an individual who takes decision and make judgments without asking from his or her team. If that person asks his or her team then don't take serious of their opinion.The option b is correct as a relationship-oriented leader is such a leader who takes care of his or her team, motivates them and work on their growth. Similarly, Sehrish's boss told her that he will help her to overcome the problems.The option c not correct as task-oriented leaders are those who focus on the solutions to get the task done and doesn't pay attention towards their team.The option d is also not correct as situational leadership is such a style of leadership in which the leaders choose the leadership strategy that is relevant to the situation.You bought one of Great White Shark Repellant Co.’s 5.8 percent coupon bonds one year ago for $1,030. These bonds make annual payments and mature 14 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 5.1 percent. What was the total return?
Answer:
total rate of return on the Bond = 9.40%
Explanation:
given data
coupon bonds = 5.8%
bonds price = $1,030
maturity time = 14 year
required return on the bonds = 5.1 percent
solution
we know here market price of the bond is Present Value of Coupon Payments + Present face Value
so that face Valueof bond = $1,000
and here annual Coupon Amount will be
annual coupon amount = $1000 × 5.80%
annual coupon amount = $58
and here Market Price of the Bond will be
Market Price of Bond = Present Value of Coupon Payments + Present face Value ......................1
here Present Value of Coupon Payments at PVIFA 5.10% and 14 Years
Present Value Annuity Inflow Factor (PVIFA) = [tex]\frac{1-(1/(1+r)^t}{r}[/tex] ....2
Present Value Annuity Inflow Factor = [tex]\frac{1-(1/(1+0.0510)^14}{0.0510}[/tex]
Present Value Annuity Inflow Factor = 9.83566
and
Present Value Inflow Factor (PVIF) 5.10%, 14 Years= [tex]\frac{1}{(1+r)^t}[/tex] ...........3
Present Value Inflow Factor (PVIF) = [tex]\frac{1}{(1+0.0510)^14}[/tex]
Present Value Inflow Factor = 0.49838
so
Market Price of Bond = ( $58 × 9.83566 ) + ( $1,000 × 0.49838 )
Market Price of Bond = $1,068.85
so total rate of return on the Bond will be
total rate of return on the Bond = [ { Annual Coupon Amount + ( Change in Bond Price ) } ÷ Current Price] ...............4
total rate of return on the Bond = [tex]\frac{58+(1068.85-1030)}{1030}[/tex]
total rate of return on the Bond = 9.40%
A results-only work environment allows employees to ________.
A. take a specified number of days off each year for any purpose
B. work whenever and wherever they wish, as long as they complete projects on time
C. take time off to volunteer for worthy causes in their communities
D. take temporary leaves of absence from work, usually at reduced pay
Answer:
Letter B is correct. Work whenever and wherever they wish, as long as they complete projects on time.
Explanation:
A Results Only Work Environment (ROWE) is a strategy devised by Jody Thompson and Cali Ressler, which is configured as human resources management whose central objective is that the monetary reward for the work of employees is performed according to their production and not according to the amount of hours worked in a period.
This is a current trend for organizational human resource management, because of the benefits of flexible job making, which gives employees more autonomy and motivation to work from anywhere and organize in the way that suits them, as long as the results are presented. This strategy also benefits the company from reducing overall office maintenance costs.
An index fund manager is expected to generate a return that:
Answer:
An index fund manager is expected to generate a return that matches the particular index he has chosen.
Explanation:
An index fund manager is required to generate a return that matches a chosen index so as to cover all the expenses relating to the index he is managing.
The management of Lanzilotta Corporation is considering a project that would require an investment of $275,000 and would last for 6 years. The annual net operating income from the project would be $113,000, which includes depreciation of $18,000. The scrap value of the project's assets at the end of the project would be $17,500. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): __________
Answer:
With a discounted rate of 10%, the payback period of the project is closest to three years.
Explanation:
To calculate this a Net Present Value (NPV) formula is needed. With a discounted rate of 10%, the NPV is calculated for different project's length (from year 6 to year 1, with the initial investment in year zero). The closest to value zero in NPV will correspond to the year where project payback is achieved. In this case, year 3 is the closest NPV to zero
Suppose that identical duopoly firms have constant marginal costs of $10 per unit. Firm 1 faces a demand function of q1=100-2p1+p2 where p and q denote price and quantity and subscripts denote firm 1 and 2. Similarly, firm 2 faces q2=100-2p2+p1. Solve for Nash-Bertrand Equilibrium.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Which of the following is not an objective of the Securities and Exchange Commission?
A. Maintain integrity of the securities markets
B. Regulate major participants in securities markets
C. Advise investors about which particular stocks are good buys
D. Require firms to provide specific information to investors
Answer: C. Advise investors about which particular stocks are good buys
Explanation:
The Security and Exchange Commission (SEC) is a United states independent federal government agency or organization that is saddled with the responsibility of protecting investors and maintaining fairness, orderliness and equity in the security market, they also help to facilitate the formation of capital. SEC was created in 1934 by the congress as an agency that will help the federal government regulate the security market.
It is an organization that protects investors from being manipulated or defrauded in the security market.
Under what scenario could fiscal policy make a recession even worse?
Select one:
a. If tax cuts are not evenly distributed across income groups.
b. If the multiplier is bigger than 1
c. If there is no crowding out of private spending
d. If deficit financed fiscal policy increases the national debt to the point it scares investors away and decreases spender confidence
Answer:
The correct answer is letter "A": If tax cuts are not evenly distributed across income groups.
Explanation:
Fiscal policy refers to the combined governmental decisions regarding a country's taxing and spending. The term fiscal policy is associated with British economist John Maynard Keynes (1883-1946) who believed governments should influence macroeconomic productivity levels. Though, it could be a trap if it is not allocated correctly among different income groups. Economies such as Brazil, for instance, have allocated higher taxes for low-income people creating economic disparity.
A person who saves money for the future by buying a whole life policy A. pays the same premium for the same amount of term coverage. B. is able to accumulate tax-free interest earnings on cash values. C. buys more insurance for a given premium compared to term. D. probably earns a rate of return on cash values greater than in an equivalent universal life policy.
Answer:
B. is able to accumulate tax-free interest earnings on cash values.
Explanation: whole life insurance policy also known as permanent life insurance,is an insurance policy where people who buy the policy are deferred from paying tax,this policy ensure that you pay the same amount of premium throughout the policy,it is a policy that is not termed and it doesn't expire it can last up to 120years.
Price indices"" are calculated by comparing product prices for a given year to prices for the same products in a specific year called the ______ year.
Answer:
Base year.
Explanation:
Price indices is the percentage change in the price of goods in the particular year compared to the price in the base year. Base year is taken as standard year. Price indices are used to measure inflation rate and cost of living, which may vary region to region. Vaughan is considered as inventor of price indeces.
Digger Company purchased a truck that cost $26,000. The company expected to drive the truck 100,000 miles. The truck had an estimated salvage value of $2,000. If the truck is driven 36,000 miles in the current accounting period, which of the following amounts should be recognized as depreciation expense?
A. $8,640.
B. $9,360.
C. $8,000.
D. $8,280.
Answer:
A. $8,640.
Explanation:
Formula: Units of Production Depreciation
Annual Depreciation=Depreciable Value×Units produced during the year/Estimated total production
Annual Depreciation = $24,000 *36,000/100,000= $ 8640
Depreciable Value = Original cost – Scrap value= $26,000- $ 2000= $ 24000
Choose the statement that is true in the year 2027. A) The European Performance segment will demand 2,724,244 units B) The American Performance segment will demand 4,192,000 units C) The European Budget segment will demand 5,779,633 units D) The Asia Pacific Performance segment will demand 2,530,255 units
Answer:
A
Explanation:
The European segment will demand more unit because of high management and development
The student's question requires future market demand projections for various segments, which cannot be accurately addressed without specific data and a clear methodology for the projections. The given data offers no direct correlation to the demand units for the year 2027.
Explanation:To determine which statement is true regarding market demand in the year 2027, we must analyze the provided data. This involves interpreting growth trends, demographic shifts, consumption patterns, and other economic indicators within the given context. The statements given appear to be concerned with future projections for various segments within the automotive industry or a related market, potentially utilizing forecasting methods such as linear extrapolation or compounded growth rates.
However, without access to specific figures or a clear methodology for projection (such as historical data or trend analysis), it is impossible to verify which statement is true for the year 2027. Note that the provided data does not contain any direct information relating to future demand numbers for the mentioned regions or segments.
Garnett Co. expects to purchase $180,000 of materials in July and $210,000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. How much will August's cash disbursements for materials purchases be?
Answer:
Total= $202,500
Explanation:
Giving the following information:
Garnett Co. expects to purchase $180,000 of materials in July and $210,000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase.
To calculate the August cash disbursement, we need to use the following formula:
Cash= total August cash required + cash from July
Cash for August:
August= 210,000*0.75= 157,500
From July= 180,000*0.25= 45,000
Total= $202,500
There is a 15 percent probability the economy will boom; otherwise, it will be normal. Stock G should return 15 percent in a boom and 8 percent in a normal economy. Stock H should return 9 percent in a boom and 6 percent otherwise. What is the variance of a portfolio consisting of $3,500 in Stock G and $6,500 in Stock H?
A) .000209
B) .000247
C) .002098
D) .037026
E) .073600
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Your firm manufactures motorcycles for the consumer market. You purchase raw materials to build the motorcycles from a variety of suppliers in the U.S. and abroad. The volume of your raw materials purchases is a function of the customer demand for your firm’s motorcycles. Which of the following best describes the type of demand your firm has for these raw materials?
Answer:
The correct answer is letter "E": Derived demand.
Explanation:
Derived demand implies the quantity requested to manufacture a good is directly related to the supply requested from the market. If the demand for the good increases, it means the quantity of the materials needed to manufacture that good will increase as well.
Coat's product manager continues to perform well in the market. However, a competing product is coming on strong and is looking to take over as the market share leader in the segment. Without sacrificing contribution margin, what can the Coat product manager do in order to improve upon the buying criteria, and thus potentially increase demand?
Increase the promotion budget to gain greater awareness
Explanation:
Coat's manager continues to perform well in the market competing product as strong and is looking to take over the market share leader in segment.The coat product manger in order to improve the buying criteria, and thus potentially increase demand the best product manager should purchased. Marketing and promoting is a strategy in which one can communicate the customers and target prospective customers to buy the products.Thus increasing the demand of the product and thereby increase the promotion budget and gain greater awareness.1st attempt Jung is willing to pay $85 for a new jacket that sells for $70. Eddie is willing to pay $65 for that same acket. What is the total consumer surplus for Jung and Eddie? Choose one:
A. $10
B. $15
C. $220
D. $150
E. $30
Answer:
Option (B) is correct.
Explanation:
Consumer surplus refers to the benefit or surplus that a consumer get from purchasing the product. It is the difference between consumer's willingness to pay and the selling price of the product.
If the outcome of this difference is positive then there will be a consumer surplus and if the outcome of this difference is negative then there will be no consumer surplus.
Total consumer surplus:
= consumer surplus for Jung + consumer surplus for Eddie
= ($85 - $70) + $0
= $15
Eddie has zero consumer surplus because selling price is higher than his willingness price for the jacket.
The medium-run equilibrium is characterized by four conditions: Output is equal to potential output Y = Yn. The unemployment rate is equal to the natural rate u = un. The real policy interest rate is equal to the natural rate of interest rn where aggregate demand equals Yn. The expected rate of inflation pe is equal to the actual rate of inflation p. a. If the level of expected inflation is formed so pe equals p1-12, characterize the behavior of inflation in a mediumrun equilibrium. b. If the level of expected inflation is pQ , what is the level of actual inflation in the medium-run equilibrium? c. Write the IS relation as Y = C1Y - T2 + I1Y, r + x2 + G. Suppose rn is 2%. If x increases from 3 to 5%, how must the
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
In a medium-run equilibrium, expected and actual inflation rates are equal. Therefore, inflation rates would follow the values assigned to expected inflation. If the interest sensitivity parameter x in the IS relation increases, this will shift the IS curve and alter output levels in the medium run.
Explanation:In a medium-run equilibrium, the expected inflation rate is equal to the actual inflation rate. Therefore, in scenario a where expected inflation is formed as pe equals p1-12, inflation in the medium-run equilibrium would be the same as this expected rate. Similarly, in scenario b, if the level of expected inflation is pQ, the level of actual inflation in the medium-run equilibrium would again equal this expected rate pQ.
For the IS relation Y = C1Y - T2 + I1Y, r + x2 + G, if the real policy interest rate rn is 2% and x increases from 3 to 5%, the overall interest rate effect on output would increase, leading to a shift in the IS curve and altering the output level in the medium run. This shifts because of the change in x, a parameter affecting the interest rate.
The concepts here echo the notion from the great economist Milton Friedman, who suggested that there exists a temporary trade-off between inflation and unemployment, but no permanent trade-off. This corresponds to the vertical long-run Phillips curve, where the unemployment rate remains consistent with the natural rate of unemployment at various inflation rates.
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Walter reached age 70 1/2 in September of 2018. By what date is he required to begin taking the RMD from his traditional IRA?A. December 31, 2018.B. April 1, 2019.C. April 18, 2019.D. December 31, 2019.
Answer: A. December 31, 2018
Explanation: RMD also known as required minimum distribution is a withdrawal one has to take from his or her retirement plan once he or she attains the age of 70and a half years old.
According to IRAs, once a person attains the age of 70.5 which is six months after the person's 70th birthday, the individual is entitled to take his or her RMD by the 31st of December following his or her 70.5 birthday.
According to the above question, Walter is entitled to take his RMD on the 31st of Dec, 2018.
Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2017. The sales price includes an installation fee, which has a standalone selling price of $40,000. The standalone selling price of the goods is $370,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete.
a. (a) Prepare the journal entry (if any) to record the sale on January 2, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
b. Shaw prepares an income statement for the first quarter of 2017, ending on March 31, 2017 (installation was completed on June 18, 2017). How much revenue should Shaw recognize related to its sale to Ricard?
The journal entry on January 2, 2017, should be the debiting of Accounts Receivable for $410,000 and the crediting of Sales for $370,000 and Unearned Revenue for $40,000. In terms of revenue recognized in the first quarter of 2017, it should be only the revenue from the sale of the goods, totaling $370,000, as the installation service is not yet completed.
Explanation:The question relates to the topic of revenue recognition. In this scenario, Shaw Company has two distinct performance obligations: the delivery of goods and the installation service. The total transaction price of $410,000 should be allocated between these two obligations based on their standalone selling prices (in proportion to their relative standalone selling prices).
Journal Entry on January 2, 2017: Debit Accounts Receivable $410,000; Credit Sales (Goods) $370,000; Credit Unearned Revenue (Installation) $40,000. The revenue recognized in the first quarter of 2017, ending March 31st, 2017 should be calculated based on the percentage of completion of the installation. However, as the installation is not completed by the end of March, Shaw shouldn’t recognize any of the installation income yet. The only recognized income would be from the sale of goods which amounts to $370,000.Learn more about Revenue Recognition here:
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Paul Company completed the salary and wage payroll for the month of March. The payroll provided the following details: Salaries and wages earned by employees $ 212,000 Employee income taxes withheld 42,400 Employee government insurance premiums withheld 4,000 FICA payroll taxes* 16,900 *Assessed on both employer and employee (i.e., $16,900 each). Required: 1. Prepare the journal entry to record the payroll for March, including employee deductions. Assume employees have been paid, but that Paul has yet to transfer any withholdings to the government. 2. Prepare the journal entry to record the employer's payroll taxes, which have not yet been paid to the government. 3. Provide a combined journal entry to show the payment of all amounts owed to governmental agencies. (For all requirements, If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
wages expense 212,000 debit
Income tax payroll payable 42,400 credit
FICA payable 16,900 credit
insurnace premium payable 4,000 credit
wages payable 148,700 credit
--to record wages to employees--
payroll tax expense 19,400 debit
FICA payable 19,400 credit
--to record employeed payroll taxes--
Income tax payroll payable 42,400 debit
FICA payable 33,800 debit
insurnace premium payable 4,000 debit
Cash 80,200 credit
--to record payment to gevernment agencies--
Explanation:
We have to deduct from the wages the employee deductions
the remaining is the wages payable
Then, we record the same amount of fica as expense as we, the employer are paying them
Then we debit all the liaiblities which arise from the employees and credit cash for the total amount
I would like to take this opportunity to inform you that the changes to your account will post soon.
1) I am taking this opportunity to inform you that changes to your account will post on Tuesday.
2) As per your verbal instruction, changes to your account will post on Tuesday.
3) The changes to your account will post on Tuesday.
Answer: 2) As per your verbal instruction, changes to your account will post on Tuesday.
Explanation: This sounds the most professional and businesslike.
Hope this helps! :)
Answer:
3) The changes to your account will post on Tuesday.
Explanation:
The sentence “The changes to your account will post on Tuesday” is short, simple, and to the point. It is written to express, not to impress. The other two options are wordy and unclear. To improve clarity, apply the KISS (keep it short and simple) formula to writing business messages.