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Suppose you are considering becoming a driver for Uver, a new ride service in your town. You estimate you can buy a car that will be of acceptable Uver standards with $27,000.00 that you saved up. The car is electric, and with free charging stations all over town, you do not have any expenses for using the car. You expect that the car will be useful as an Uver car for the next 3 years. After the 3 years, the battery will be depleted, so the car will not be worth much anymore. The car therefore w
Suppose you are considering becoming a driver for Uver, a new ride service in your town. You estimate you can buy a car that will be of acceptable Uver standards with $27,000.00 that you saved up. The car is electric, and with free charging stations all over town, you do not have any expenses for us...
1 answer
On January 1, Year 1, Worthy Co. issued $1,000,000 of bonds payable. The bonds mature in five years on December 31, Year 5, and pay 9% interest once a year on December 31. The issue sold for $891,857 to yield 12%. Worthy uses the effective interest method. What is the amount of the liability at December 31, Year 2, after the second interest payment? a. $1,000,000 b. $931,590 c. $908,880
On January 1, Year 1, Worthy Co. issued $1,000,000 of bonds payable. The bonds mature in five years on December 31, Year 5, and pay 9% interest once a year on December 31. The issue sold for $891,857 to yield 12%. Worthy uses the effective interest method. What is the amount of the liability at Dece...
1 answer
On December 31, 2014, Oakbrook Inc. rendered services to Beghun Corporation at an agreed price of $102,049, accepting $40,000 down and agreeing to accept the balance in four equal installments of $20,000 receivable each December 31. An assumed interest rate of 11% is imputed. Instructions: Prepare the entries that would be recorded by Oakbrook Inc. for the sale and for the receipts and interest on the following dates. (Assume that the effective-interest method is used for amortization purposes.)
On December 31, 2014, Oakbrook Inc. rendered services to Beghun Corporation at an agreed price of $102,049, accepting $40,000 down and agreeing to accept the balance in four equal installments of $20,000 receivable each December 31. An assumed interest rate of 11% is imputed.
Instructions:
Prepare t...
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The used car was originally priced at $20,165. it sold for $15,340. find the percent of discount. round to the nearest whole percent. *
The used car was originally priced at $20,165. it sold for $15,340. find the percent of discount. round to the nearest whole percent. *...
1 answer
At times we all regret decisions. Does this necessarily mean we did not use the economic decision rule when making the decision?
At times we all regret decisions. Does this necessarily mean we did not use the economic decision rule when making the decision?...
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Quality Manufacturers Ltd (QML) has three support departments: Equipment Maintenance, Quality Control and Material Handling Department. The company has two departments that are directly engaged in production: The Bending Department and the Welding Department. The usage of the three-support department output is as follows: Service Provider Departments and percentage of their services used by the user departments Equipment Maintenance Department - Bending department and Welding department use 30%
Quality Manufacturers Ltd (QML) has three support departments: Equipment Maintenance,
Quality Control and Material Handling Department. The company has two departments that are
directly engaged in production: The Bending Department and the Welding Department. The usage
of the three-support departmen...
1 answer
Your client purchases land that has been severely eroded. He plans to fill the holes caused by the erosion with waste material. Prepare a memorandum discussing any cost recovery deductions that can be claimed on this property.
Your client purchases land that has been severely eroded. He plans to fill the holes caused by the erosion with waste material. Prepare a memorandum discussing any cost recovery deductions that can be claimed on this property....
1 answer
You have been approached by one of the staff who works testing equipment that passes through your facility. Every day, you receive computers from the university that have been repaired but now need to be tested to ensure that they can work under high stress. This means running them in your test labs. Because the test labs are as stressful on the test equipment as it is on the computers, you have planned for downtime in the past. To get this downtime, you have tried to ensure that effective capac
You have been approached by one of the staff who works testing equipment that passes through your facility. Every day, you receive computers from the university that have been repaired but now need to be tested to ensure that they can work under high stress. This means running them in your test labs...
1 answer
The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2017, 2016, and 2015 2017 2016 2015 Sales $ 555,000 $340,000 $278,000 Cost of goods sold 283,500 21
The following information applies to the questions displayed below.]
Selected comparative financial statements of Korbin Company follow.
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2017, 2016, and 2015
...
1 answer
On January 1, 2019, Mitchell Company leases equipment from Donelson Corp. for the equipment's entire useful life of six years. Danelson acquired the asset for $239,826 and normally utilizes an 5% interest rate for these types of transactions. The annual lease payment is $45,000, and the first payment is made at the inception of the lease. Donelson should record which of the following in connection with the second payment? 1. Debit to interest expense of 11,991. 2. Credit to interest revenue of
On January 1, 2019, Mitchell Company leases equipment from Donelson Corp. for the equipment's entire useful life of six years. Danelson acquired the asset for $239,826 and normally utilizes an 5% interest rate for these types of transactions. The annual lease payment is $45,000, and the first paymen...
1 answer
The dictator of Turan has recently begun to arbitrarily seize farms belonging to his political opponents, and he has given the farms to his friends. His friends don't know much about farming. The courts in Turan have ruled that the seizures are illegal, but the dictator has ignored the rulings. Other things equal, we would expect that the growth rate in Turan will:_______. a. fall and remain lower for a long time. b. increase because the total amount of human capital in the country will increa
The dictator of Turan has recently begun to arbitrarily seize farms belonging to his political opponents, and he has given the farms to his friends. His friends don't know much about farming. The courts in Turan have ruled that the seizures are illegal, but the dictator has ignored the rulings. Othe...
1 answer
Journalize the following adjusting entries that were included on the work sheet for the month ended December 31. Assume the financial statements have been prepared. Dec. 31 Salaries for three days are unpaid at December 31, $1,860. Salaries are $3,100 for a five-day week. 31 Insurance was bought on September 1 for $5,880 for 12 months' coverage. Four months' coverage has expired, $1,960. 31 Depreciation for the month on equipment, $120, based on an asset costing $7,300 with a trade-in value of
Journalize the following adjusting entries that were included on the work sheet for the month ended December 31. Assume the financial statements have been prepared.
Dec. 31 Salaries for three days are unpaid at December 31, $1,860. Salaries are $3,100 for a five-day week.
31 Insurance was bought o...
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A sales manager, Dev, is facing an ethical situation wherein his bicycle company that specializes in mountain bikes sold a bicycle with a defective component. If he informs the customer and issues a recall, it would cost him a substantial amount of money. If the bike malfunctions, there is a very small chance that it could cause serious injury to a cyclist who might use it on rough terrain. He decides to use the egoism approach to decision making and remain silent about the defect, because he:__
A sales manager, Dev, is facing an ethical situation wherein his bicycle company that specializes in mountain bikes sold a bicycle with a defective component. If he informs the customer and issues a recall, it would cost him a substantial amount of money. If the bike malfunctions, there is a very sm...
1 answer
Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying and requires an interest rate implicit in the lease that is one percent below alternate methods of financing. On September 30, 2021, the company leased a delivery truck to a local florist, Anything Grows. The lease agreement specified quarterly payments of $3,000 beginning September 30, 2019, the inception of the lease, and each quarter (December
Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying and requires an interest rate implicit in the lease that is one percent below alternate methods of financing. On September 30, 2021, the company leas...
1 answer
Match the given terms to the appropriate statement relating to the various functions of money. Each term is used only once. a. Money provides a way of measuring a good for value in standardized terms. b. Money permits us to make purchases today and enables us to pay off the purchases at some future point in time. c. Money keeps its overall purchasing power. d. Money is used to complete the transaction between the buyer and seller. 1. Unit of Account 2. Standard of Deferred Payment 3. Mediu
Match the given terms to the appropriate statement relating to the various functions of money. Each term is used only once.
a. Money provides a way of measuring a good for value in standardized terms.
b. Money permits us to make purchases today and enables us to pay off the purchases at some future...
1 answer
A is a small piece of ownership in a company
a is a small piece of ownership in a company...
2 answers
Top Kitchens handles 17% of all the kitchen production in the area for new construction. It is estimated that the cost of kitchens is 14% of the total cost of constructing a new house. New home construction in the area for the next year is estimated to total $32 million. What sales volume can Top Kitchens expect next year?
Top Kitchens handles 17% of all the kitchen production in the area for new construction. It is estimated that the cost of kitchens is 14% of the total cost of constructing a new house. New home construction in the area for the next year is estimated to total $32 million. What sales volume can Top Ki...
1 answer
Aracel Engineering completed the following transactions in the month of June. a. Jenna Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 of drafting equipment to launch the company. b. The company purchased land worth $49,000 for an office by paying $6,300 cash and signing a long-term note payable for $42,700. c. The company purchased a portable building with $55,000 cash and moved it onto the land acquired. d. The company paid $3,000 cash for the pr
Aracel Engineering completed the following transactions in the month of June.
a. Jenna Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 of drafting equipment to launch the company.
b. The company purchased land worth $49,000 for an office by paying $6,3...
1 answer
Rinehart Corporation purchased from its stockholders 5,000 shares of its own previously issued stock for $255,000. It later resold 2,000 shares for $54 per share, then 2,000 more shares for $49 per share, and finally 1,000 shares for $43 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock.
Rinehart Corporation purchased from its stockholders 5,000 shares of its own previously issued stock for $255,000. It later resold 2,000 shares for $54 per share, then 2,000 more shares for $49 per share, and finally 1,000 shares for $43 per share.
Prepare journal entries for the purchase of the tre...
1 answer
Pizza Express Inc. began the Year 2 accounting period with $2,500 cash, $1,400 of common stock, and $1,100 of retained earnings. Pizza Express was affected by the following accounting events during Year 2: a. Purchased $3,600 of supplies on account. b. Earned and collected $12,300 of cash revenue. c. Paid $2,700 cash on accounts payable. d. Adjusted the records to reflect the use of supplies. A physical count indicated that $250 of supplies was still on hand on December 31, Year 2. Required:
Pizza Express Inc. began the Year 2 accounting period with $2,500 cash, $1,400 of common stock, and $1,100 of retained earnings. Pizza Express was affected by the following accounting events during Year 2:
a. Purchased $3,600 of supplies on account.
b. Earned and collected $12,300 of cash revenue....