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atroni [7]
1 year ago
7

Skysong, Inc. returned $140 of goods originally purchased on credit from Concord Industries. Using the periodic Inventory approa

ch, Skysong would record this transaction as:_____.
Accounts Payable 190
Sales Returns and Allowances 190
Sales Returns and Allowances 190
Accounts Receivable 190
Inventory 190
Accounts Receivable 190
Accounts Receivable 190
Sales Returns and Allowances 190
Business
1 answer:
lara31 [8.8K]1 year ago
6 0

Answer:

Sales Returns and Allowances $140 and Accounts Receivable $140

Explanation:

When goods are returned, the sales revenue decreases through Sales Returns and Allowances which is an expense so it is debited and the goods sold on account so the Accounts Receivable which is an asset decreases so it is credited.

Date   Account Titles and Explanations    Debit   Credit

          Sales Returns and Allowances          $140

                 Accounts Receivable                                $140

           (To record sales returns)  

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You purchase a bond with a coupon rate of 5.3 percent and a clean price of $951. Assume a par value of $1,000. If the next semi
olchik [2.2K]

Answer:

The invoice price is $ 969.

Explanation:

This question requires us to tell the invoice price (dirty price) of the bond. Clean price is given in the question. So we can easily calculate invoice price by adding accrued interest in dirty price. Detail calculation is given below.

Clean price          = $ 951 -A

Accrued Interest =  (5.3% * 1000)/12*4 = $ 17.67 -B

Invoice price = A+B = $ 969 (approx)

4 0
1 year ago
A population gathers plants and animals for survival. They need at least 360 units of​ energy, 300 units of​ protein, and 8 hide
stellarik [79]

Answer:

0 units of plants and 18 animals.

Explanation:

From the information provided, we know that this population must hunt at least 8 animals, to obtain the hides necessary to survive. When hunting such a quantity of animals, they would also obtain 160 units of energy and 200 units of protein. In terms of costs, this equals 80 hours of labor.

How can the population obtain the additional 200 units of energy and 100 of protein they need to live? They have two options: gather plants or keep hunting animals, of course, respecting the available quantities.

In the former case, at least 10 units of a plant would have to be gathered, this is the only way to obtain the additional units of energy and protein they are looking for. With 8 animals and 10 units of plants, they would have 460 units of energy, 300 of protein and 8 hides, and would have to invest 280 hours of labor.

If the population decided to reduce labor by gathering fewer plants (which is the activity that requires more time) but hunting the same amount of animals, it would obtain 430 units of energy, 290 units of protein and 8 hides. That means that it would not survive because it would not meet the requirement of 300 proteins.

Therefore, the only way to reduce hours of labor without risking survival would be gathering fewer plants but hunting more animals. Following this logic, the optimal amount would be 18 animals and 0 units of plants, as this would allow people to obtain the necessary resources to survive at the minimum cost in terms of labor. Furthermore, it would fit the physical limit of 27 units of plants and 23 animals. This combination would allow to obtain 360 units of energy, 450 of protein and 18 hides by investing only 180 hours of labor.

The attached image shows what happens when the quantity of animals is increased and that of plants is decreased until reaching the optimal combination of 18 animals and no units of plants.

4 0
2 years ago
Problem 16-17 Firm Value [LO2] Change Corporation expects an EBIT of $25,000 every year forever. The company currently has no de
PolarNik [594]

Answer and Explanation:

The computation is shown below:

a. The current value of the company is

As it is mentioned that the company has no debt that means it is unlevered firm that is equivalent to unlevered value of the company  

Unlevered value of the firm =  Vu  

Vu = EBIT ×  (1 - tax rate ) ÷ unlevered Cost of Equity

= EBIT × (1 - tax rate ) ÷ R0  

= $25,000  ×  (1 -  0.22 ) ÷ 12%  

= $162,500  

b-1.

The computation of the value of the firm in the case when the value of the firm is equivalent to 50% of unlevered value

VL = Vu + Borrowing × tax rate  

where,  

Debt = borrowing = 50% × unlevered value of company  

Debt = borrowing = 50% x Vu  

So,

VL = Vu + Borrowing x tax rate  

VL = $162,500 + ($162,500 × 50%) × 22%  

= $162,500 + $17,875  

= $180,375  

b-2.

The computation of the value of the firm in the case when the value of the firm is equivalent to 100% of unlevered value

Levered value of the firm VL  

VL = Vu + Borrowing × tax rate  

Debt = borrowing = 100% × unlevered value of company  

Debt = borrowing = 100% × Vu

So,    

VL = Vu + Borrowing x tax rate  

= $162,500 + ($162,500 × 100%) × 22%  

= $162,500 + 35,750  

= $198,250  

C.1.

The computation of the value of the firm in the case when the value of the firm is equivalent to 50% of the levered value

VL = Vu + Borrowing × tax rate  

= Vu + (VL × 50%) × tax rate  

VL = Vu + (VL × 50%) × 22%  

VL = Vu + 0.11 VL  

VL - 0.11 VL = 162,500  

0.89 VL = 162,500  

VL= 182,584.27  

C.2.

The computation of the value of the firm in the case when the value of the firm is equivalent to 100% of the levered value  

Levered value of the firm VL  

VL = Vu + Borrowing x tax rate  

VL = Vu + (VL × 100%) × tax rate  

= Vu + (VL × 100%) × 22%  

= Vu + 0.22 VL  

VL - 0.22 VL = 162,500  

0.78 VL = 162,500  

VL= $208,333.33

6 0
2 years ago
TEME is a manufacturer of toy construction equipment. If it pays out all of its earnings as dividends, it will have earnings of
Virty [35]

Answer:

$8.078 million

Explanation:

we must use the same time periods, so instead of using an annual discount rate, we should use a quarterly rate:

effective quarterly interest = (1 + 0.16)¹/⁴ - 1 = 0.0378 = 3.78%

dividends per quarter = 0.3 million + 0.05 million = $0.35 million

terminal value of firm in quarter 4 = 0.35 / 0.0378 = $9.26 million

present value of terminal value = $9.26 / (1.0378)⁴ = $7.983 million

present value of 4 quarterly dividends = $0.3 x 3.64879 (PVIFA, 3.78%, 4 periods) = $1.095 million

NPV = -$1 + $1.095 + $7.983 = $8.078 million

4 0
1 year ago
Read 2 more answers
Erie company manufactures a mobile fitness device called the jogging mate. the company uses standards to control its costs. the
scoray [572]

Answer:

Standard Hours     Standard Rate per Hour      Standard Cost

24 minutes (0.4 hrs.)            $5.40                                  $2.16

During August, 8,390 hours of direct labor time were needed to make 19,600 units of the Jogging Mate. The direct labor cost totaled $43,628 for the month.

1. What is the standard labor-hours allowed (SH) to makes 19,600 Jogging Mates?

  • 19,600 jogging mates x 0.4 hours = 7,840 hours

2. What is the standard labor cost allowed (SH × SR) to make 19,600 Jogging Mates?

  • 7,840 hours x $5.40 = $42,336

3. What is the labor spending variance?

  • labor spending variance = standard cost - actual cost = $42,336 - $43,628 = $1,292 unfavorable

4. What is the labor rate variance and the labor efficiency variance?

  • labor rate variance = (standard rate - actual rate) x actual hours = ([$5.40 - ($43,628/8,390 hours)] x 8,390 hours = ($5.40 - $5.20) x 8,390 hours = $0.20 x 8,390 = $1,678 favorable
  • labor efficiency variance = (standard hours - actual hours) x actual rate = (7,840 hours - 8,390 hours) x $5.20 = -550 hours x $5.20 = -$2,860 unfavorable
7 0
2 years ago
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