BUSINESS COLLEGE

pencer Co. has a $450 petty cash fund. At the end of the first month the accumulated receipts represent $68 for delivery expenses, $227 for merchandise inventory, and $37 for miscellaneous expenses. The fund has a balance of $118. The journal entry to record the reimbursement of the account includes a:

Answers

Answer 1

Answer:

Credit to cash for $332

Explanation:

The information above is broken down as;

Petty cash fund = $450

Accumulated receipts for delivery expenses = $68

Merchandise inventory = $227

Miscellaneous expenses = $37

Fund balance = $118

Hence;

The journal entry to record the reimbursement of the account is;

Delivery expenses account Dr. $68

Merchandise inventory account Dr $227

Miscellaneous expenses account Dr $37

To Cash account Cr $332

(Being the recording of cash reimbursement)

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The leader of two postpartum women's support groups is interested in the depression levels of the women in her groups. She administers the Center for Epidemiologic Studies Depression Scale (CES-D) screening test to the members of her groups. The CES-D is a 20-question self-test that measures depressive feelings and behaviors durin the previous week. The mean depression level from the screening test for the 6 women in the first group is mu_1 = 16; the mean depression level for the 10 women in the second group is mu_2 = 12. Without calculating the weighted mean for the combined group, you know that the weighted mean is: Midway between 16 and 12 Closer to 16 than to 12 Closer to 12 than to 16 Compute the weighted mean. Enter your answer rounded to one decimal place. mu = The support group leader realizes that she should also screen for alcohol abuse, so she gives the women in her two groups the Michigan Alcohol Screening Test (MAST). The MAST is a 22-question self-test focusing on the use and abuse of alcohol. The first group has a mean score of mu_1 = 18. The second group has a mean score of mu_2 = 14. Compute the weighted mean. Enter your answer rounded to one decimal place. mu =
Autoliv in Ogden, Utah creates airbags. The deployment time of an airbag should be between 21 and 27 milliseconds and their current average is 22 milliseconds with a standard deviation of 0.25 milliseconds. Determine the process capability index if they were to center the mean.
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In choosing to acquire a TV manufacturer as part of your entry strategy to enter the Smart TV market, Apple intends to integrate the TV manufacturer within its own company. The transfer of which competencies between the two companies creates the possible scenario for success? A. Fully integrate the company and combine it with the current computer business because monitors and televisions are similar in their requirementsB. Transfer the knowledge of touchscreen capabilities and the Apple ecosystem from Apple to the TV manufacturer to use for the new Apple Smart TV

(b) At the beginning of a recent year, JetBlue's assets were $6,020 million and its equity was $1,266 million. During the year, assets increased by $534 million and liabilities increased by $261 million. What was JetBlue's equity at the end of the year?

Answers

Answer:

$1,539 million

Explanation:

The accounting principle states that assets must equal liabilities plus owner's equity. If assets increased by $534 million and liabilities increased by $261 million, the amount by which equity increased is:

$E_i = A_i - L_i\nE_i= \$534 - \$261\nE_i=\$273\ million$

If the initial equity was $1,266 million, JetBlue's equity at the end of the year was:

$E = \$1,266+\$273\nE=\$1,539\ million$

Mountain High Ice Cream Company transferred $76,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $6,600). Mountain High anticipates a $4,600 recourse obligation. The bank charges a 2% fee (2% of $76,000), and requires that amount to be paid at the start of the factoring arrangement. Mountain High has transferred control over the receivables, but determines that it still retains substantially all risks and rewards associated with them. Required: Prepare the journal entry to record the transfer on the books of Mountain High, considering whether the sales criteria under IFRS have been met.

Answers

Answer:

Cash 66,880 debit

Due from factor 7,600 debit

Loss on factoring 6,120 debit

Accounts Receivables 76,000 credit

Recourse Liability 4,600 credit

Explanation:

Accounts receivable factored: 76,000

Cash received 90% of 76,000 = 68,400

less bank charge fee: 76,000 x 2% = 1,520

total: 66,880

Due from factoring = 76,000 x 10% 7,600

Recourse liability: 4600

The loss is calcualte bu difference:

The bank receives 76,000 dollars of Accounts receivables

It pays 66,880 It makes us assuma liability for 4,600

and potentially can paid up to 7,600

Net: 69,880‬

difference: 76,000 - 66,880 = 6,120

To decrease the money supply, the Federal Reserve could a. decrease the required reserve ratio. b. conduct an open market purchase of U.S. Treasury securities. c. increase the discount rate. d. forbid the reselling of U.S. Treasury securities.

Answers

Answer: c. increase the discount rate.

Explanation:

The discount rate of a country is the rate at which the central bank in that country loans money out to the financial institutions.

When this rate is low, more financial institutions will borrow money as opposed to when it is high. Banks borrowing money increases the money supply in the economy so if the Federal Reserve wants to reduce money supply, it should increase the discount rate which would dissuade banks from borrowing from the Fed thereby limiting money supply.

Quantitative Problem 2: Carlysle Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $1.90 at the end of each year. If investors require an 7% return on the preferred stock, what is the price of the firm's perpetual preferred stock? Do not round intermediate calculations. Round your answer to the nearest cent. $ per share

Answers

Answer:

$27.14

Explanation:

Calculation for the price of the firm's perpetual preferred stock

Using this formula

Price of the firm perpetual preferred stock = Annual dividend / Required return

Where,

Annual dividend =$1.90

Required return=7% or 0.07

Let plug in the formula

Price of the firm perpetual preferred stock = $1.90 / 0.07

Price of the firm perpetual preferred stock=$27.14

Therefore the Price of the firm perpetual preferred stock will be $27.14

Hubbard Industries just paid a common dividend, D0, of $2.00. It expects to grow at a constant rate of 3% per year. If investors require a 8% return on equity, what is the current price of Hubbard's common stock

Answers

Answer:

The answer is $41.2

Explanation:

This will be solved by Dividend Discount Model which is one of the ways of valuing the price of shareholders' equity.

Here, the future value of dividend payment are discounted using the cost of equity.

Ke = D1/Po + g

Where Ke is the cost of equity

D1 is future dividend payment.

Po is the current share price or stock price

g is the growth rate.

To find the current price of stock price, we need to re write the equation;

Po = D1 ÷ (Ke - g)

D1 = Do x 1.03

= $2 x 1.03

=2.06

Ke = 8% or 0.08

g = 3% or 0.03

So we have;

2.06 ÷ (0.08 -0.03)

$2.06 ÷ 0.05

$41.2

Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $154,500, allowance for doubtful accounts of $1,165 (credit) and sales of $1,175,000. If uncollectible accounts are estimated to be 0.5% of sales, what is the amount of the bad debts expense adjusting entry?