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2 years ago

Journalize the following transactions assuming a perpetual inventory system:

Business

1 answer:

natulia [17]2 years ago

5 0

Answer:

May 5

Merchandise Inventory $6,000 (debit)

Freight Charges $100 (debit)

Accounts Payable : Archie Co. $6,000 (credit)

Cash $100 (credit)

May 12

Accounts Payable : Archie Co. $2,500 (debit)

Merchandise Inventory $2,500 (credit))

May 14

Accounts Payable : Archie Co. $3,500 (debit)

Discount Received $70 (credit)

Cash $3,430 (credit)

Explanation:

May 5

Recognize the Assets of Merchandise and a Liability : Accounts Payable : Archie Co. as a result of purchase.

Also Recognize the Freight Expenses since this is a F.O.B delivery

May 12

De-recognize the Liability : Accounts Payable - Archie Co. and the Merchandise Inventory asset to the extend of Merchandise returned to Archie Co.

May 14

De-recognize the Liability : Accounts Payable : Archie Co. of $3,500 and the Cash assets to the extend of Payment made to Archie Co less cash discount of $3,430 .

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An American-style call option with six months to maturity has a strike price of $35. The underlying stock now sells for $43. The

Travka [436]

Answer:

a) $8

b) $4

c) Decrease

Explanation:

Background.

A call option as you probably know, is an agreement to buy an asset on or before a particular day at a price already determined in the agreement.

a) the Intrinsic value of the option is the market price minus the strike price.

Intrinsic Value = Market Price - Strike price

= $43 - $35

= $8 per share.

It is worthy of note that for an option, of the intrinsic value dips into negative figures it is just said to be 0.

b) To calculate the time value, we subtract the intrinsic value from the call premium

= Call Premium - Intrinsic value

= $12 - $8

= $4

c) The call option has 6 months to maturity and the dividends are to come in 3 months. Share prices usually drop after a dividend has been paid so because the call option matures in 6 months, the price of the call option will DECREASE owing to the Expected drop in stock price.

8 0

1 year ago

Bob,s candle factory is considering three different manufacturing options. Option A uses hand labor with fixed costs of $10,000

sergeinik [125]

Answer:

a. If demand for Bob's candles is 2500, which option should he pick?

OPTION A

and what is the cost?

$16,875

b. If demand for Bob's candles is 4500 which option should he $19,950

OPTION B

and what is the cost?

$19,950

Explanation:

Option A uses hand labor with fixed costs of $10,000 and variable costs of $2.75/candle.

Option B uses a combination of hand and automation with fixed costs of $15,000 and variable costs of $1.10/candle.

Option C is highly automated with fixed costs of $20,000 and variable costs of $0.75/candle.

demand = 2,500 units

option A = $10,000 + ($2.75 x 2,500) = $16,875

option B = $15,000 + ($1.10 x 2,500) = $17,750

option C = $20,000 + ($0.75 x 2,500) = $21,875

demand = 4,500 units

option A = $10,000 + ($2.75 x 4,500) = $22,375

option B = $15,000 + ($1.10 x 4,500) = $19,950

option C = $20,000 + ($0.75 x 4,500) = $23,375

3 0

2 years ago

Fill in both blanks with the correct terms: A _________ percentage of young people have debt than older generations, while their

Vinil7 [7]

Answer:

The correct answer is letter "C": Larger, lower.

Explanation:

According to different researches carried out across the U.S., young adults who are between 18 and 29 years old have a total debt to $1.05 trillion. Individuals' debt who are older than 70 is $1 trillion. The average debt amount that young adults (18-29) have is $22,000 while elder people from 50 years old and on is $36,000.

Then, <em>young adults have larger accumulated debt than elders and their debt amounts are lower as well.</em>

7 0

2 years ago

Read 2 more answers

During the month of March, Sunland Company’s employees earned wages of $79,000. Withholdings related to these wages were $6,044

Brilliant_brown [7]

Answer:

The Journal entry is as follows:

On March 31st,

Salaries and Wages Expense A/c Dr. $79,000

To Wages Payable $59,377

To Federal Withholding Payable $9,258

To FICA Payable $6,044

To State Withholding Payable $3,827

To Union Dues Payable $494

(To record the salaries and wages expense and salaries and wages payable)

6 0

1 year ago

Given a prior forecast demand value of 1,100, a related actual demand value of 1,000, and a smoothing constant alpha of 0.3, wha

Korvikt [17]

Answer:

1,030

Explanation:

Calculation for what is the exponential smoothing forecast value

Exponential smoothing forecast value = 1,000 + 0.3 x (1,100-1,000)

Exponential smoothing forecast value = 1,000 + 0.3 x (100)

Exponential smoothing forecast value = 1,000 + 30

Exponential smoothing forecast value= 1,030

Therefore the exponential smoothing forecast value will be 1,030

5 0

2 years ago