Answer:
b. $530
Explanation:
As provided retained earnings opening balance = $475
Add net income for the year = $130
Balance = $605
Further dividend is paid, which reduces the balance of retained earnings = $75
Balance after paying dividends = $605 - $75 = $530
All the other information provided in question relates to common stock and has no relevance on retained earnings balance.
Therefore, balance of retained earnings at the end of period = $530
Answer:
The correct answer is D. a meeting of three of the five commissioners of the Federal Aviation Administration.
Explanation:
Sunshine laws are regulations that require openness in government or business. Sunshine laws make public meetings, records, voting, deliberations and other official actions available for observation, participation and / or inspection. Sunshine laws also require that government meetings be held well in advance and at times and locations that are convenient and accessible to the public, with exceptions for emergency meetings.
In some cases, an event or document that would normally be accessible through the laws of sunlight is closed to public access (as a legally protected matter currently under investigation), but the laws of sunlight are supposed to minimize these exceptions. . Sunshine's laws also differentiate entities that are subject to laws from those that are not. For example, any entity with authority to create binding laws would be subject to the law, but an advisory committee that lacks such authority may not be subject to the laws of sunlight, even if it deals with matters related to government.
Answer:
d. a meeting of three of the five commissioners of the Federal Aviation Administration.
Explanation:
Federal Sunshine law was passed in the U.S in the year 1976. It's sole purpose was to ensure that there is transparency in the federal government. This law applies to a country, state, political subdivisions and it makes meetings, voting, records and other official actions available to the public to observe, participate and inspect.
The meeting that would be subject to the open-meeting provisions of the federal sunshine laws would be a meeting of three of the five commissioners of the Federal Aviation Administration.
Answer:1. Maximum transfer price is $60 and it's to be set by the Motel division.
This is the maximum price they will need to get it in the market if they are not buying in-house and it needs to be set by them because it determines the maximum profit it can make from the transaction.
2. The minimum transfer price is $29 and it's to be set by the Furniture division.
This is the production cost and it's still profitable since it has meet his fixed cost at 40,000 unit and the variable cost is $15. The Furniture set the price because it determines the maximum profit it makes from the transaction.
3. Benefit to Motley division is additional profit of $16 per unit for 10,000 units ($31-$15)
Benefit to Furniture division is a reduction in cost of $29 per units on 10000 unit ($60-31)
Benefit to company is the combination of the benefits from both Motly and Furniture division.
b. Enterprise planning and monitoring.
c. Enterprise integration and administration.
d. Financial operations and reporting.
Answer:
The correct answer is letter "B": Enterprise planning and monitoring.
Explanation:
Information Systems impact the Supply Chain at planning and monitoring stages. Information Systems allow managers to analyze information about the flow of the supply chain and allows them to spot where improvement is necessary. Besides, it allows tracking production to maximize it. Decisions can be made upon the feed Information Systems provide.
Answer:
$10,680
Explanation:
Bad debt expense can be seen as an account receivables which are uncollectible during a period of time because of the customers inability to fulfill his /her financial obligations which therefore result into bad debt.
(Bad Debt Expense = Net credit sales × Bad debt loss rate )
= $178,000 × 0.06 = $10,680
Therefore the estimated amount of Bad Debt Expense for the year is $10,680
W Smith, a sole trader, for the year ended 31 December
2013. W Smith has forwarded to you all books of prime
entry and ledgers, and in addition has given you the
following information:
1) Mr Smith had taken £2,000 out of the business bank
account to take his wife on holiday.
ii) Up to last year the machinery and vehicle used in
the business had been depreciated using the reducing
balance method. W Smith thinks that they should now
be depreciated using the straight-line method.
iii) Mr Smith is confident, given his order book that
the business will continue to operate in its present
form for many years.
iv) Mr Smith had purchased ten staplers, four flip
charts and four packets of whiteboard markers which
will be used in the business for the next couple of
years.
V)
Mr Smith informs you that he has just found an
unopened electricity bill for £900 which was for the
quarter October to December 2013
Required
In each case, identify and then explain the main
accounting concepts being highlighted and indicate
how each should be treated in the final accounts.
Answer:
Identification and Explanation of Highlighted Accounting Concepts and Treatment in the Final Accounts:
1. Economic Entity: The business (economic entity) is separate from the individual (W. Smith). Accounts are kept to ensure this separation of ownership from the business. This withdrawal is treated as Drawings, a reduction of capital (owner's equity) in the balance Sheet.
2. Consistency concept: This concept requires that an accounting estimate or principle is consistently applied. However, if there is a change in an accounting estimate, the effect of the change needs to be disclosed in the final accounts.
3. Going concern concept: A business is assumed to continue indefinitely in life. Therefore, assets and liabilities are stated at their cost or fair values. Where there is a contrary view, this must be disclosed and accounts be kept to reflect the revised view. Then, assets and liabilities will reflect market or disposal values.
4. Materiality concept: This concept requires that values in accounts be material. Though, materiality is a matter of judgement, a threshold can be established based on the value of the individual item to the value of the business. Will its disclosure or not affect decisions of a knowledgeable investor or analyst, is a consideration under the materiality concept. The office stationery can be expensed in the income statement if the amount involved is not material, even though, they will continue to be used in the business for more than a year. This somehow contradicts the concept of the matching principle.
5. Accrual Concept: The concept states that "Revenue is recognized when earned, and expenses are recognized when assets are consumed," and not when cash is received or paid. This unpaid electricity bill for £900 must be accrued in the income statement as an expense and treated as a liability in the balance sheet in line with the accrual concept.
Explanation:
These are the basic accounting concepts:
1. Accruals concept
2. Conservatism concept
3. Consistency concept
4. Economic entity concept
5. Going concern concept
6. Matching concept
7. Materiality concept
b. $35.00
c. $37.50
d. $37.60
Answer: $49.05
Explanation:
The call was purchased at $3.05 and the strike price at expiration is $46. The total expenses at expiration is:
= 46 + 3.05
= $49.05
To make a profit, the stock price will have to be above $49.05 which makes it the breakeven point.
Option not included.