BUSINESS COLLEGE

During 2016, Ayayai Corporation spent $144,000 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $17,400 related to the patent were incurred as of October 1, 2016. Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (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.)

Answers

Answer 1

Answer:

Answer:

Please see below the journal entries of Ayayai Corporation for the year ending 2016 and 2017 respectively.

Explanation:

Ayayai Corporation

Journal Entries

For the Year ending 2016

Debit: Research & Development Expense $144,000

Credit: Cash $144,000

To record research and development expense.

Debit: Patent $17,400

Credit: Cash $17,400

To record legal cost relating to Patent.

Debit: Amortization Expense $435

Credit: Patent $435

To record amortization expense for the pro rated year.

Ayayai Corporation

Journal Entries

For the Year ending 2017

Debit: Amortization Expense $1,740

Credit: Patent $1,740

To record amortization expense for year.

AMORTIZATION EXPENSE CALCULATION:

Legal Cost = $17,400

Useful Life = 10 Years

Amortization Expense = Legal Cost / Useful Life

Amortization Expense = $17,400 / 10

Amortization Expense = $1,740 per year

But since in 2016 the patent was obtained on October 1, so Ayayai Corporation will have to pro rate the Amortization Expense in 2016 as below:

Amortization Expense = Annual Amortization Expense x No. of months / Total no. of months

Since patent was obtained in October so the No. of months is '3'

Amortization Expense = $1,740 x 3 / 12

Amortization Expense = $435

Answer 2

Answer:

Answer:

AYAYAI CORPORATION

JOURNAL ENTRIES

Date Description DR CR

2016

Research and developemnt $144,000

Cash $144,000

Being the amount spend on research and development

OCt 1 Patent $17,400

Cash 17,400

Dec 31 Amortization Expense $435

Accumulated amortization $435

2017 Amortization Expense $1,740

Accumulated amortization $1,740

Explanation:

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A goal is a specific commitment to achieve a measurable result within a stated period of time. A) True
B) False

Answers

Answer:

The correct answer is letter "A": True.

Explanation:

Goals represent the objectives companies set that must be achieved within a specified period of time. Goals represent what firms want to achieve and where they want to be positioned in the market. Goals have the characteristic of being measurable, which means entities can monitor the progress of the path of reaching a goal and observable, which implies they are realizable.

Final answer:

The statement is true. A 'goal' represents a commitment to a specific, measurable outcome to be achieved within a defined time frame; this concept is often referred to as SMART goals.

Explanation:

The statement 'A goal is a specific commitment to achieve a measurable result within a stated period of time' is indeed true. Also known as SMART goals, this concept is frequently used in business and personal development contexts. The SMART acronym stands for Specific, Measurable, Achievable, Relevant, and Time-based, which succinctly sums up the essential elements of an effective goal. For example, a student might set a goal to 'Achieve an A grade in history this semester,' which is specific, measurable, presumably achievable, relevant to their academic success, and time-bound by the length of the semester.

Learn more about Goal Setting here:

brainly.com/question/34159608

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An investment has an expected return of 11 percent per year with a standard deviation of 26 percent. Assuming that the returns on this investment are at least roughly normally distributed, how often do you expect to earn less than -15 percent?

Answers

Answer:

$P(X<-15)=P((X-\mu)/(\sigma)<(-15-\mu)/(\sigma))=P(Z<(-15-11)/(26))=P(Z<-1)$

And we can find this probability using the normal standard distribution table or excel and we got:

$P(Z<-1)=0.159$

Explanation:

Previous concepts

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".

The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".

Solution to the problem

Let X the random variable that represent the expected return, and for this case we know the distribution for X is given by:

$X \sim N(11,26)$

Where $\mu=11$ and $\sigma=26$

We are interested on this probability

$P(X<-15)$

And the best way to solve this problem is using the normal standard distribution and the z score given by:

$z=(x-\mu)/(\sigma)$

If we apply this formula to our probability we got this:

$P(X<-15)=P((X-\mu)/(\sigma)<(-15-\mu)/(\sigma))=P(Z<(-15-11)/(26))=P(Z<-1)$

And we can find this probability using the normal standard distribution table or excel and we got:

$P(Z<-1)=0.159$

A recent study about online shopping asked respondents to indicate their education level on the following scale "Less than High School, " "High School, " "Some College, " "College+". Which of the following statements is (are) I. Education level is a categorical variable.II. Education level is nominal scaled.III. Education level is ordinal scaled. A. I onlyB. III onlyC. Both I and IIID. Both I and III

Answers

Answer:

C. Both I and III.

Explanation:

The education level is categorical variable and is ordinal scaled.

Ordinal level is a second level statistical measurement technique. It allows ranks to the data for its categorization and degree of variation is not determined between data. Education level is ordinal scale because it provides orders of quantitative data.

A firm has the following accounts and financial data for 2017: Sales Revenue $3,060 Accounts Receivable $500 Interest Expense $146 Total Operating Expenses $600 Cost of Goods Sold $1,800 Preferred Stock Dividends $28 Accounts Payable $240 Inventory $200 Number of Common Shares Outstanding 1,000 Tax Rate 40% The firm's earnings per share for 2017 is ________.

Answers

Answer:

$280

Explanation:

Given that Sales = $3,060

Minus: Cost of goods sold = $1,800

Gross Profit = $1,260

Minus: Operating expenses is = $600

Thus Operating profit is = $660

Minus: Interest = $146

Profit before tax = $514

Tax at 40% = $514 * 0.4 = $206

Net income (Income after-tax) = $308

Minus: Preferred stock dividend = $28

Earnings available to common stockholders = $280

Hence, in this situation, the correct answer is $280 per share

On December 31, 2015, Waterway Industries is in financial difficulty and cannot pay a note due that day. It is a $2900000 note with $290000 accrued interest payable to Carla Vista, Inc. Carla Vista agrees to accept from Waterway equipment that has a fair value of $1440000, an original cost of $2400000, and accumulated depreciation of $1160000. Carla Vista also forgives the accrued interest, extends the maturity date to December 31, 2018, reduces the face amount of the note to $1230000, and reduces the interest rate to 5%, with interest payable at the end of each year.Nolte should recognize a gain or loss on the transfer of the equipment of

a. $0.

b. $120,000 gain.

c. $180,000 gain.

d. $570,000 loss.

Nolte should recognize a gain on the partial settlement and restructure of the debt of

a. $0.

b. $45,000.

c. $165,000.

d. $225,000.

Answers

Answer:

(a) $210,000

(b) $351,500

Explanation:

(a) Given that,

Fair value of equipment = $1,440,000

Face Amount of the note = $1,230,000

Gain on sale:

= Fair value of equipment - Face Amount of the note

= $1,440,000 - $1,230,000

= $210,000

(b) Given that,

Accrued Interest Payable = $290,000

Interest rate = 5%

Gain on the partial settlement and restructure of the debt:

= Accrued Interest Payable + (Face amount of note × Interest rate)

= $290,000 + ($1,230,000 × 5%)

= $290,000 + $61,500

= $351,500

At the beginning of the period, the Cutting Department budgeted direct labor of $136,000, direct materials of $150,000 and fixed factory overhead of $11,900 for 8,000 hours of production. The department actually completed 10,600 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is Round your final answer to the nearest dollar. Do not round interim calculations.