1. What is the ending balance in the accounts listed below given the following transactions: a. RWV borrows $1,100,000 in the form of a note payable. b. RWV purchases land for $250,000. c. RWV builds a building for $750,000. d. RWV orders $7,500 worth of food, which will be paid for later. e. RWV provides services worth $95,000, and will bill for the services later. f. RWV pays salaries to employees totaling $45,000. g. RWV pays $7,500 towards the food it previously ordered. h. RWV uses $5,000 worth of food. i. RWV pays $17,000 of G

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Answer 1
Answer:

Answer:

RWV

Ending Account Balances:

Account Details               Debit     Credit

Notes Payable                              $1,100,000

Cash                           $30,500

Land                           250,000

Building                      750,000

Supplies (Food)             2,500

Accounts Receivable  95,000

Service Revenue                               95,000

Salaries Expense       45,000

Supplies (Food) Exp.   5,000

G                                 17,000

Totals                  $1,195,000      $1,195,000

Explanation:

a) Notes Payable

Account Details         Debit     Credit

Cash                                       $1,100,000

a) Cash Account

Account Details         Debit       Credit

Notes Payable     $1,100,000

Land      (b)                                 $250,000

Building   (c)                                 750,000

Salaries         (f)                              45,000

Supplies (Food)  (g)                         7,500

G (i)                                                 17,000

Balance c/d                                $30,500

b) Land

Account Details         Debit       Credit

Cash                     $250,000

c) Building

Account Details         Debit       Credit

Cash                    $750,000

d) Supplies (Food)

Account Details         Debit       Credit

Accounts Payable    $7,500

Supplies (Food) Expense (h)    $5,000

Balance c/d                               $2,500

Accounts Payable

Account Details         Debit       Credit

Supplies   (d)                           $7,500

Cash (g)                   $7,500

e) Accounts Receivable

Account Details         Debit       Credit

Service Revenue    $95,000

Service Revenue

Account Details         Debit       Credit

Accounts Receivable  (e)        $95,000

f) Salaries Expense

Account Details         Debit       Credit

Cash                       $45,000

h) Supplies (Food) Expense

Account Details         Debit       Credit

Supplies (Food)       $5,000

i) G

Account Details         Debit       Credit

Cash                       $17,000


Related Questions

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Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales $64,900 $405,000 Cost of goods sold 44,000 300,000 Selling and administrative expenses 14,000 75,000 Interest expense 650 1,800 Other income (expense) (70 ) (380 ) Income tax expense 1,300 6,500 Net income $ 4,880 $ 21,320 Balance Sheet Data (End of Year) Current assets $16,000 $45,000 Noncurrent assets 25,000 120,000 Total assets $41,000 $165,000 Current liabilities $10,000 $54,000 Long-term debt 16,800 43,000 Total stockholders’ equity 14,200 68,000 Total liabilities and stockholders’ equity $41,000 $165,000 Beginning-of-Year Balances Total assets $43,000 $162,000 Total stockholders’ equity 12,500 64,000 Current liabilities 10,000 54,000 Total liabilities 30,500 98,000 Other Data Average net accounts receivable $7,400 $3,800 Average inventory 6,800 32,800 Net cash provided by operating activities 5,500 25,500 Capital expenditures 1,600 11,500 Dividends 450 3,500 (a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)(a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)Ratio TargetWal-Mart(1) Current ratio Enter a number:1 Enter a number:1(2) Accounts receivable turnover Enter a numbertimes Enter a numbertimes(3) Average collection period Enter a numberdays Enter a numberdays(4) Inventory turnover Enter a numbertimes Enter a numbertimes(5) Days in inventory Enter a numberdays Enter a numberdays(6) Profit margin Enter percentages% Enter percentages%(7) Asset turnover Enter a numbertimes Enter a numbertimes(8) Return on assets Enter percentages% Enter percentages%(9) Return on common stockholders’ equity Enter percentages% Enter percentages%(10) Debt to assets ratio Enter percentages% Enter percentages%(11) Times interest earned Enter a numbertimes Enter a numbertimes(12) Free cash flow
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Implications of game theory

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Answer:

Game Theory is a general mathematical analysis to investigate the strategic interactions among players. Game theorists attempt to provide precise descriptions of situations of conflicting interests in order to study the behavior that such a conflict would (or, in some cases, should) elicit from rational agents. Players are assumed to consider the position and perceptions of other players while forming their strategies. In our examples, we will assume that there are two players, and that each has two choices and the fact that the players are selfish (operate in their own best interests) and rational .

Limitations of Game Theory :

The biggest issue with game theory is that, like most other economic models, it relies on the assumption that people are rational actors that are self-interested and utility-maximizing. Of course, we are social beings who do cooperate and do care about the welfare of others, often at our own expense. Game theory cannot account for the fact that in some situations we may fall into a Nash equilibrium, and other times not, depending on the social context and who the players are.

If a war destroys a large portion of a country's capital stock but the saving rate is unchanged, the Solow model predicts output will grow and that the new steady state will approach: A. a higher output level than before. B. the same output level as before. C. a lower output level than before. D. the Golden Rule output level.

Answers

Answer:

B. The same output level as before.

Explanation:

If there is a war broke out in a country and because of the war a large potion of the country's capital stock is destroyed but the thing that is unchanged is saving rate.

So according to the solow model the output will grow and the steady state that is new will be the same level of output as before.

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.30q Indirect labor $4,100 + $2.00q Utilities $5,100 + $0.50q Supplies $1,300 + $0.40q Equipment depreciation $18,100 + $2.50q Factory rent $8,500 Property taxes $2,700 Factory administration $13,300 + $0.60q The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 66,780 Indirect labor $ 11,680 Utilities $ 7,590 Supplies $ 3,190 Equipment depreciation $ 28,100 Factory rent $ 8,900 Property taxes $ 2,700 Factory administration $ 15,050 Required: 1. Prepare the Production Department’s planning budget for the month. 2. Prepare the Production Department’s flexible budget for the month. 3. Calculate the spending variances for all expense items.

Answers

Answer:

Packaging Solutions Corporation

1. Planning Budget

Direct labor                              $68,460

Indirect labor                            $12,500

Utilities                                       $7,200

Supplies                                     $2,980

Equipment depreciation        $28,600

Factory rent                              $8,500

Property taxes                          $2,700

Factory administration           $15,820

2. Flexible Budget

Direct labor                             $65,200

Indirect labor                            $12,100

Utilities                                       $7,100

Supplies                                   $2,900

Equipment depreciation        $28,100

Factory rent                             $8,500

Property taxes                         $2,700

Factory administration          $15,700

3. Spending Variances:

                                                  Flexible  Actual       Spending

                                                  Budget  Budget       Variance

Direct labor                             $65,200  $66,780     $1,580 U

Indirect labor                            $12,100    $11,680       $420 F

Utilities                                       $7,100    $7,590       $490 U

Supplies                                   $2,900     $3,190       $290 U

Equipment depreciation        $28,100  $28,100        $0     None

Factory rent                             $8,500   $8,500        $0     None

Property taxes                         $2,700   $2,700        $0     None

Factory administration          $15,700  $15,050        $650 F

Explanation:

a) Data and Calculations:

Planned labor-hours in March = 4,200

Actual labor-hours in March = 4,000

Cost Formulas

Direct labor $16.30q

Indirect labor $4,100 + $2.00q

Utilities $5,100 + $0.50q

Supplies $1,300 + $0.40q

Equipment depreciation $18,100 + $2.50q

Factory rent $8,500

Property taxes $2,700

Factory administration $13,300 + $0.60q

Actual Cost Incurred In March:

Direct labor                      $ 66,780

Indirect labor                     $ 11,680

Utilities                               $ 7,590

Supplies                             $ 3,190

Equipment depreciation $ 28,100

Factory rent                      $ 8,900

Property taxes                  $ 2,700

Factory administration   $ 15,050

Flexible Budget:

Direct labor $16.30 * 4,000 = $65,200

Indirect labor $4,100 + $2.00  * 4,000 = $12,100

Utilities $5,100 + $0.50 * 4,000 = $7,100

Supplies $1,300 + $0.40 * 4,000 = $2,900

Equipment depreciation $18,100 + $2.50 * 4,000 = $28,100

Factory rent $8,500

Property taxes $2,700

Factory administration $13,300 + $0.60 * 4,000 = $15,700

Planning Budget

Direct labor $16.30 * 4,200 = $68,460

Indirect labor $4,100 + $2.00 * 4,200 = $12,500

Utilities $5,100 + $0.50 * 4,200 $7,200

Supplies $1,300 + $0.40 * 4,200 $2,980

Equipment depreciation $18,100 + $2.50 * 4,200 = $28,600

Factory rent $8,500

Property taxes $2,700

Factory administration $13,300 + $0.60 * 4,200 = $15,820

Final answer:

The problem involves calculating the planning budget, flexible budget, and spending variances for the Production Department of Packaging Solutions Corporation. The planning budget is based on the expected output, the flexible budget adjusts according to actual results, and the spending variances give the difference between budgeted and actual costs.

Explanation:

The question falls under the field of cost accounting in Business studies. Here, we'll need to calculate the planning budget, the flexible budget, and the spending variances for the Production Department of Packaging Solutions Corp.

1. Planning Budget: The planning budget is based on the expected labor-hours and the production output associated with those labor-hours. In this case, the planned labor hours were 4,200.

2. Flexible Budget:

The flexible budget adjusts the planning budget to reflect actual operational results. The actual hours worked in March were 4,000, which is what we'll use for the flexible budget calculations.

3. Spending Variances:

Spending variances are the differences between what was budgeted (either in the planning budget or the flexible budget) and actual results. They can be calculated by subtracting the actual costs from the budgeted costs. This will provide insights into areas where spending was over or under the budgeted amounts.

Learn more about Budget Variance Analysis here:

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Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans production of 240,000 units in the second quarter and 52,500 units in the third quarter. Raw material inventory is 43,200 pounds at the beginning of the second quarter. Other information follows:Direct materials Each unit requires 0.60 pounds of a key raw material, priced at $175 per pound. The company plans to end each quarter with an ending inventory of materials equal to 30% of next quarter’s budgeted materials requirements.
Prepare a direct materials budget for the second quarter.

Answers

Answer and Explanation:

The Preparation of direct materials budget for the second quarter is prepared below:-

                                          Rida, Inc.,

                                 Direct materials budget  

                                 For the second quarter

Particulars                                            Amount

Production Unit                                    240,000

Raw material per unit                           0.60

Raw material needed for production 144,000

(240,000 × 0.60)

Add: Desired ending inventory          9,450

(52,500 × 0.6 × 30%)  

Total amount                                       153,450

Less: Beginning inventory                  ($43,200)

Direct material purchase                    $110,250

Cost per pound                                    $175

Direct material purchase cost          $19,293,750

Therefore to reach at direct material purchase cost we simply multiply the direct material purchase cost with cost per pound.

Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $38,000. The annual cash inflows for the next three years will be: Year Cash Flow 1 $ 19,000 2 17,000 3 12,000 Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the financial calculator method. a. Determine the internal rate of return. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. With a cost of capital of 14 percent, should the equipment be purchased? No Yes

Answers

Answer:13.74%

No

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

Using a financial calculator to find the IRR :

Cash flow for year zero = $-38,000.

Cash flow for year one = $ 19,000 

Cash flow for year two = $17,000

Cash flow for year three = $12,000

IRR = 13. 74%

If the cost of capital is 14%, the equipment shouldn't be purchased because the IRR is less than the cost of capital.

I hope my answer helps you.

Broker James has had his license suspended for two years. The licenses of all the broker-associates and salespersons who work for James are

Answers

Available Options Are:

A. Revoked, subject to reinstatement after 30 days.

B. Not affected by the suspension

C. Automatically suspended

D. Placed on inactive status

Answer:

D. Placed on inactive status

Explanation:

The reason is that James was jointly responsible for the actions of his broker-associates and salesperson because they were working under his supervision and that's why now as the license of James has been suspended for 2 years, James is no more jointly accountable for the actions of his associates and salesperson. Hence the licenses of associates and salesperson will be placed on inactive status. To reactive they will have to affiliate themselves to a broker who possesses an active license.