Answer:
Increase cash by $4,000 and Increase common stock by $4,000
Explanation:
Demonstration of how to record Jack Pickle
transaction in the accounting equation
Since we were told that Jack Pickle decided to start a small business in form of a corporation in which his initial investment was the sum of $4,000 cash and the cash was in exchange for common stock, therefore using accounting equation this means when we want to record Jack Pickle transactions we have to increase the cash by the sum of $4,000 and the increase common stock by the sum of $4,000.
Increase cash by $4,000 and Increase common stock by $4,000
Answer:
$2 million or $2,000,000
Explanation:
The computation of the revenue and gross profit or loss will appear in the company’s income statement in the first year is shown below:
= revenue recognized - cost incurred
The Total cost is
= $6 + $9
= $15
And, the revenue recognized is
= $6 ÷ $15 × $20
= $8
So, the gross profit is
= $8 - $6
= $2
hence, the gross profit is $2 million
4 Pays insurance in advance for 3 months, $1,020.
16 Receives $780 from clients for services rendered.
27 Pays the secretary $520 salary.
Journalize the transactions.
Answer:Please see answers in explanation column
Explanation:
Journal entry for Novak Corp during August
Date Account title Debit Credit
Aug 1 Cash $10,950
Common stock $10,950
Aug 4 Prepaid Insurance $1,020.
Cash $1,020.
Aug 16 Cash $780
Service revenue $780
Aug 27 Salaries expense $520
Cash $520
To journalize the August transactions for Novak Corp., Debit and Credit the appropriate accounts based on the nature and amount of each transaction. These are done on 1st, 4th, 16th, and 27th of August according to the details provided.
The question is asking for the journalization of the transactions of the Novak Corp. during August. Journalizing transactions involves keeping a record of the financial activities, in the form of debit and credit, in a journal or logbook. Here is how you would journalize the transactions:
Aug. 1: Debit Cash account $10,950. Credit Common Stock account $10,950.
Aug. 4: Debit Insurance Expense account $1,020. Credit Cash account $1,020.
Aug. 16: Debit Cash account $780. Credit Service Revenue account $780.
Aug. 27: Debit Salary Expense account $520. Credit Cash account $520.
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Answer:
tactical
Explanation:
"Planning" is a very important process in order for a business to know how it is going to allocate and manage its resources to achieve its goals in a more organized way.
Among the planning options mentioned, Puma uses "tactical plans" in order to achieve its goal. Such type of plan is focused on a specific goal. In the case of Puma, it is focused on achieving $641 million in its sales target.
Tactical plans also include "when" or the time in which goals are going to be achieved. Most of the time, goals are set from less than a year to one year. In Puma's case, it's goal is by the end of the year.
Tactical plans also state the strategies that the company will use in order to achieve its goal. In order for Puma to increase its sales, it will be introducing new products, sell soccer equipment and combine different subsidiaries. These strategies will help Puma accomplish its mission.
So, this explains the answer.
Puma implemented strategic sales plans based on new product introduction, sale of soccer equipment, and subsidiary consolidation to increase its end-of-year sales target by $641 million post World Cup soccer games.
Based on the question posed, Puma adopted strategic sales plans to increase revenue by $641 million following the World Cup soccer games. These Sales plans were driven around three major strategies; Introducing new product categories, focusing on sales of soccer equipment, and consolidating several company subsidiaries. Introduction of new products would attract more customers and help increase sales. Focusing more on sale of soccer equipment during the World cup period helps to capitalize on the increased demand for such products. Lastly, consolidation of subsidiaries can minimize costs and improve efficiency, leading to an increase in sales.
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c. stay the same.
d. slowly increase.
Answer:
b. go down.
Explanation:
The Formula for Required rate of return Ke = Dividend (D1) / Price. So, increase in price which is denominator will leads to decrease in the required rate of return. Hence, In computing the cost of common equity, if the dividend (D1) goes downward and market price (P0) goes up, required rate of return (Ke) will Go down
b. the incoming cash and outgoing cash
c. the assets purchased with cash contributed by the owner and the cash spent to operate the business
d. the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services
Answer: D) the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services
Explanation:
The profit is the difference between the income and the expenses as:
Profit = Income - expense
Income is money that one earn profit in their business and expenses are the money which we spend. And your total income is your revenue. And if the number is in positive value then, it makes profit. Therefore, (D) is the correct option.
Profit, in financial terms, is the monetary gain realized when the amount earned from a business activity (typically selling goods or services) exceeds the costs, overhead, and taxes necessary to sustain the activity. This is represented by option D in your query. The formula for profit is: total revenue - total costs.
In the context of business, 'Profit' is mentioned as the difference between the amounts received from customers for goods or services and the amounts paid for the inputs used to provide those goods or services. This definition is represented by option D in your question. To give an example, if you run a candy shop and you sell $500 worth of candies in a day, but the candies’ original cost is $200, and you have spent an additional $50 on operation costs, your profit for the day would be: $500 (amount received from sales) - $200 (cost of candies) - $50 (operation cost) = $250. This is known as Net Profit.
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Answer:
Explanation:
Monetary policy tightening decreases money supply and increases interest rate. Higher interest rate lowers investment, which will decrease aggregate demand. AD curve will shift to left, decreasing both price level and real GDP, giving rise to a recessionary gap in short run. Inflation will decrease and unemployment will increase.
In the long run, lower price level will decrease wages and prices of inputs, decreasing production costs. Firms will increase production, increasing aggregate supply. SRAS shifts rightward, intersecting new AD curve at further lower price level but restoring real GDP to potential GDP GDP.
When aggregate demand falls, AD curve will shift leftward from AD0 to AD1, intersecting SRAS0 at point B with lower price level P1 and lower real output Y1, with short run recessionary gap of (Y0 - Y1). In long run, SRAS0 shifts right to SRAS1, intersecting AD1 at point C with further lower price level P2 and restoring real GDP to potential GDP level Y0. Inflation will decrease and unemployment will decrease & restore to initial (full employment) level.