TamariskCompany has several investments in the securities of
other companies. The following information regarding these
investments is available at December 31, 2017.
| 1. | Tamarisk holds bonds issued by Dorsel Corp. The bonds have an amortized cost of $322,000 and their fair value at December 31, 2017, is $395,000. Tamarisk intends to hold the bonds until they mature on December 31, 2025. | |
| 2. | Tamarisk has invested idle cash in the equity securities of several publicly traded companies. Tamarisk intends to sell these securities during the first quarter of 2018, when it will need the cash to acquire seasonal inventory. These equity securities have a cost basis of $796,000 and a fair value of $920,000 at December 31, 2017. | |
| 3. | Tamarisk has a significant ownership stake in one of the companies that supplies Tamarisk with various components Tamarisk uses in its products. Tamarisk owns 6% of the common stock of the supplier, does not have any representation on the supplier's board of directors, does not exchange any personnel with the supplier, and does not consult with the supplier on any of the supplier's operating, financial, or strategic decisions. The cost basis of the investment in the supplier is $1,197,000 and the fair value of the investment at December 31, 2017, is $1,541,000. Tamarisk does not intend to sell the investment in the foreseeable future. The supplier reported net income of $80,000 for 2017 and paid no dividends. | |
| 4. | Tamarisk owns some common stock of Forter Corp. The cost basis of the investment in Forter is $208,000 and the fair value at December 31, 2017, is $58,000. Tamarisk believes the decline in the value of its investment in Forter is permanent and therefore impaired, but Tamarisk does not intend to sell its investment in Forter in the foreseeable future. | |
| 5. | Tamarisk purchased 25% of the stock of Slobbaer Co. for $886,000. Tamarisk has significant influence over the operating activities of Slobbaer Co. During 2017, Slobbaer Co. reported net income of $319,000 and paid a dividend of $115,000. |
(b) Prepare any December 31, 2017, journal entries
needed for Tamarisk relating to Tamarisk's various investments in
other companies. Assume 2017 is Tamarisk’s first year of
operations.
In: Accounting
The following transactions occurred during the month of June
2021 for the Stridewell Corporation. The company owns and operates
a retail shoe store.
Prepare journal entries to record each of the transactions and
events listed above. (If no entry is required for a
transaction/event, select "No journal entry required" in the first
account field.)
1
Issued 95,000 shares of common stock in exchange for $475,000 cash.
2
Purchased office equipment at a cost of $83,750. $33,500 was paid in cash and a note payable was signed for the balance owed.
3
Purchased inventory on account at a cost of $190,000. The company uses the perpetual inventory system.
4
Credit sales for the month totaled $323,000.
5
The cost of the goods was $161,500.
6
Paid $4,250 in rent on the store building for the month of June.
7
Paid $2,280 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2021.
8
Paid $137,275 on account for the merchandise purchased in 3.
9
Collected $64,600 from customers on account.
10
Paid shareholders a cash dividend of $4,750.
11
Recorded depreciation expense of $1,675 for the month on the office equipment.
12
Recorded the amount of prepaid insurance that expired for the month.
In: Accounting
On October 31, 2021, Cullumber Company had a cash balance per
books of $8,967. The bank statement on that date showed a balance
of $10,174. A comparison of the statement with the Cash account
revealed the following:
| 1. | The statement included debit memos of $54 for the printing of additional company cheques and $49 for bank service charges. | |
| 2. | Cash sales of $528 on October 12 were deposited in the bank. The journal entry to record the cash receipt and the deposit slip were incorrectly made out and recorded by Cullumber as $852. The bank detected the error on the deposit slip and credited Cullumber Company for the correct amount. | |
| 3. | The September 30 deposit of $1,004 was included on the October bank statement. The deposit had been placed in the bank’s night deposit vault on September 30. | |
| 4. | The October 31 deposit of $979 was not included on the October bank statement. The deposit had been placed in the bank's night deposit vault on October 31. | |
| 5. | Cheques #1006 for $434 and #1072 for $994 were outstanding on September 30. Of these, #1072 cleared the bank in October. All the cheques written in October except for #1278 for $564, #1284 for $654, and #1285 for $334 had cleared the bank by October 31. | |
| 6. | On October 18, the company issued cheque #1181 for $346 to Helms & Co., on account. The cheque, which cleared the bank in October, was incorrectly journalized and posted by Cullumber Company for $463. | |
| 7. | A review of the bank statement revealed that Cullumber Company received electronic payments from customers on account of $1,894 in October. The bank had also credited the account with $44 of interest revenue on October 31. Cullumber had no previous notice of these amounts. | |
| 8. | Included with the cancelled cheques was a cheque issued by Lasik Company for $604 that was incorrectly charged to Cullumber Company by the bank. | |
| 9. |
On October 31, the bank statement showed an NSF charge of $824 for a cheque issued by W. Hoad, a customer, to Cullumber Company on account. This amount included a $35 service charge by the bank. The company's policy is to pass on all NSF fees to the customer. Question 1) Prepare the bank reconciliation at October 31 Question 2) Prepare the necessary adjusting entries at October 31. |
In: Accounting
5-b b. List and explain the 3 decision process questions
confronting the producer in pure competition.
1) Total Revenue = price*quantity(TR=P*Q)
2)Average Revenue = price (AR=P)
3)Marginal Revenue = price (MR=P)
Please help to explain these three aswers for the above question.
In: Economics
The binding energy per nucleon for magnesium-27 is 1.326*10-12 J/nucleon. Calculate the atomic mass of magnesium-27, in amu. You may assume that the mass of a nucleon is 1.008 amu. (1 kg = 6.022*1026 amu)
In: Chemistry
Why does marginal revenue decrease when total revenue increases? I understand how to calculate marginal revenue and total revenue and I've looked at images of the two curves but I don't understand the reason behind what's happening.
In: Economics
It is the year 2021 and Pork Barrels, Inc., is considering construction of a new barrel plant in Spain. The forecasted cash flows in millions of euros are as follows:
| C0 | C1 | C2 | C3 | C4 | C5 |
| –87 | +17 | +27 | +30 | +34 | +32 |
The spot exchange rate is $1.27 = €1. The interest rate in the United States is 11%, and the euro interest rate is 8%. You can assume that pork barrel production is effectively risk-free.
b. What are the dollar cash flows from the project if the company hedges against exchange rate changes?
What are the dollar cash flows from the project if the company hedges against exchange rate changes? (Negative amounts should be indicated by minus sign. Enter your answers in millions. Do not round intermediate calculations. Round "Forward rate" to 3 decimal places and "Cash flow" to 2 decimal places.)
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In: Finance
Division A manufactures electronic circuit boards. The boards can be sold either to Division B of the same company or to outside customers. Last year, the following activity occurred in Division A:
| Selling price per circuit board | $ | 187 |
| Variable cost per circuit board | $ | 117 |
| Number of circuit boards: | ||
| Produced during the year | 20,100 | |
| Sold to outside customers | 14,700 | |
| Sold to Division B | 5,400 | |
Sales to Division B were at the same price as sales to outside
customers. The circuit boards purchased by Division B were used in
an electronic instrument manufactured by that division (one board
per instrument). Division B incurred $210 in additional variable
cost per instrument and then sold the instruments for $620
each.
Required:
1. Prepare income statements for Division A, Division B, and the company as a whole.
2. Assume Division A’s manufacturing capacity is 20,100 circuit boards. Next year, Division B wants to purchase 6,400 circuit boards from Division A rather than 5,400. (Circuit boards of this type are not available from outside sources.) From the standpoint of the company as a whole, should Division A sell the additional 1,000 circuit boards to Division B or continue to sell them to outside customers?
Prepare income statements for Division A, Division B, and the company as a whole.
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Assume Division A’s manufacturing capacity is 20,100 circuit boards. Next year, Division B wants to purchase 6,400 circuit boards from Division A rather than 5,400. (Circuit boards of this type are not available from outside sources.) From the standpoint of the company as a whole, should Division A sell the additional 1,000 circuit boards to Division B or continue to sell them to outside customers?
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In: Accounting
Please fill out the charts below with the given information.
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers.
Record on page 10 of the journal
Mar. 2 Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,300.
3 Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,000.
4 Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $33,200.
5 Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $19,400.
12 Received check for amount due from Equinox Co. for sale on March 2.
14 Sold merchandise to customers who used American Express cards, $13,700. The cost of merchandise sold was $8,350.
16 Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $16,000.
18 Issued credit memo for $4,800 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,900.
Record on page 11 of the journal
Mar. 19 Sold merchandise on account to Vista Co., $8,250, terms FOB shipping point, 2/10, n/30. The cost of merchandise sold was $5,000. In addition, Amsterdam Supply Co. immediately paid $75 in freight charges and added this to the invoice sent.
26 Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.
28 Received check for amount due from Vista Co. for sale of March 19.
31 Received check for amount due from Empire Co. for sale of March 4.
31 Paid Fleetwood Delivery Service $5,600 for merchandise delivered during March to customers under shipping terms of FOB destination.
Apr. 3 Paid City Bank $940 for service fees for handling MasterCard and American Express sales during March.
15 Paid $6,544 to state sales tax division for taxes owed on sales.
Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles.
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CHART OF ACCOUNTS |
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Amsterdam Supply Co. |
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General Ledger |
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Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles. Scroll down for page 11 of the journal.
In: Accounting
You are looking to purchase a $300,000 home with a 80% LTV mortgage with a term of 30-years and an interest rate of 6%. Your income is $120,000 per year, the annual property taxes are $3,600, and the hazard insurance premium is $1,200 per year. The borrowers other debt service consists of a $700/month car payment and $800/month credit card minimum payment. What is the front-end DTI ratio associated with this borrower/loan?
Please input your answer as a percentage (74% would be input as 74).
In: Finance