If you represented an insurance company or competing pharmaceutical manufacturer, how would you respond to the drug price increases imposed by Turing Pharmaceuticals? Given the absence of limitations on how much a company can charge for a given product, does the increase in the price of Daraprim create justification for the imposition of price controls at times? How does this intersect with the idea that a free-market economy dominates in America?
In: Economics
Intermodal. What are some of the challenges in designing pallet loads if half of your shipments go by 53 ft. containers to customers in North America, and half of your shipments go by 40 ft. containers to international clients? Assume inside dimensions for a 53 ft. container are approximately 52 ft. 6 in. long x 8 ft. 2 in. wide x 9 ft. high.
In: Physics
Suppose Bank of America (BAC) wants to open two subsidies In the US in order to 1) serve foreign residents living in the US and 2) conduct Int'l banking operations.
Describe how BAC would structure these two new business. In other words, what kind of rules would they have to comply with and/or what kind of facilities would BAC have to set-up?
Be specific.
In: Accounting
This week's discussion topic is freedom to speech, which is discussed at the highest platform: Supreme Court of America, many a times. Now, when you have read about protected and unprotected speech and related examples. How far you agree or disagree with the role of government regulating speech, drawing line of demarcation between legitimate and illegitimate speech?
Discuss your answer in 150-200 words.
In: Economics
In what ways do different political systems and ideologies influence the environment in which Multinational Enterprises operates? Multinational enterprises from emerging markets—Brazil and India are beginning to challenge the dominance of developed country MNE. What are some advantages that these firms from emerging markets bring to their global business? How might MNE from developed countries in North America respond to theses challenge
In: Economics
In: Nursing
Assume at Chase Bank the bid rate of a Brazilian real is $.25 while the ask rate is $.27. Assume at the Bank of America the bid rate of a Brazilian real is $.29 while the ask rate is $.30. Given this information, what would be your gain if you use $1,000,000 and execute locational arbitrage? That is, how much will you end up with over and above the $1,000,000 you started with?
In: Finance
Bronner’s Christmas Store is one of the largest in America. Bronner’s currently has one store located in Frankenmuth, Michigan. Bronner’s has decided to open up a second store in Heidelberg, Germany. Reflecting on each chapter in our textbook, respond to each of the following questions as though you were hired to be a consultant to Bronner’s.
Should Bronner’s be concerned about German government policy? Explain.
In: Operations Management
I need an adjusted trial balance for this question. Here are the instructions, the journal, and the unadjusted trial balance.
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2019 (unless otherwise indicated), are as follows:
| 110 | Cash | $ 83,600 |
| 112 | Accounts Receivable | 233,900 |
| 115 | Merchandise Inventory | 624,400 |
| 116 | Estimated Returns Inventory | 28,000 |
| 117 | Prepaid Insurance | 16,800 |
| 118 | Store Supplies | 11,400 |
| 123 | Store Equipment | 569,500 |
| 124 | Accumulated Depreciation-Store Equipment | 56,700 |
| 210 | Accounts Payable | 96,600 |
| 211 | Customers Refunds Payable | 50,000 |
| 212 | Salaries Payable | — |
| 310 | Lynn Tolley, Capital, June 1, 2018 | 685,300 |
| 311 | Lynn Tolley, Drawing | 135,000 |
| 410 | Sales | 5,069,000 |
| 510 | Cost of Merchandise Sold | 2,823,000 |
| 520 | Sales Salaries Expense | 664,800 |
| 521 | Advertising Expense | 281,000 |
| 522 | Depreciation Expense | — |
| 523 | Store Supplies Expense | — |
| 529 | Miscellaneous Selling Expense | 12,600 |
| 530 | Office Salaries Expense | 382,100 |
| 531 | Rent Expense | 83,700 |
| 532 | Insurance Expense | — |
| 539 | Miscellaneous Administrative Expense | 7,800 |
During May, the last month of the fiscal year, the following transactions were completed:
Record the following transactions on page 20 of the journal. Refer to the Chart of Accounts for exact wording of account titles.
| May | 1 | Paid rent for May, $5,000. |
| 3 | Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. | |
| 4 | Paid freight on purchase of May 3, $600. | |
| 6 | Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000. | |
| 7 | Received $22,300 cash from Halstad Co. on account. | |
| 10 | Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. | |
| 13 | Paid for merchandise purchased on May 3. | |
| 15 | Paid advertising expense for last half of May, $11,000. | |
| 16 | Received cash from sale of May 6. | |
| 19 | Purchased merchandise for cash, $18,700. | |
| 19 | Paid $33,450 to Buttons Co. on account. | |
| 20 | Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500, and the cost of the returned merchandise was $8,000. |
Record the following transactions on page 21 of the journal. Refer to the Chart of Accounts for exact wording of account titles.
| May | 20 | Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the merchandise sold was $70,000. |
| 21 | For the convenience of Crescent Co., paid freight on sale of May 20, $2,300. | |
| 21 | Received $42,900 cash from Gee Co. on account. | |
| 21 | Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000. | |
| 24 | Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. | |
| 26 | Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. | |
| 28 | Paid sales salaries of $56,000 and office salaries of $29,000. | |
| 29 | Purchased store supplies for cash, $2,400. | |
| 30 | Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000. | |
| 30 | Received cash from sale of May 20 plus freight paid on May 21. | |
| 31 | Paid for purchase of May 21, less return of May 24 |
| Date | Accounts | debit | Credit |
| May-01 | Rent expense | 5000 | |
| cash | 5000 | ||
| May-03 | Inventory | 35280 | |
| Accounts Payable-Martin Co. | 35280 | ||
| May-04 | Inventory | 600 | |
| Cash | 600 | ||
| May-06 | Accounts receivable | 67130 | |
| Sales | 67130 | ||
| Cost of goods sold | 41000 | ||
| Inventory | 41000 | ||
| May-07 | Cash | 22300 | |
| Accounts Receivable-Halstad co. | 22300 | ||
| May-10 | Cash | 54000 | |
| sales | 54000 | ||
| Cost of goods sold | 32000 | ||
| inventory | 32000 | ||
| May-13 | Accounts payable-Martin Co. | 35280 | |
| cash | 35280 | ||
| May-15 | Advertising expense | 11000 | |
| cash | 11000 | ||
| May-16 | Cash | 67130 | |
| Accounts receivable-Korman Co. | 67130 | ||
| May-19 | Inventory | 18700 | |
| cash | 18700 | ||
| May-19 | Accounts payable-Buttons Co. | 33450 | |
| cash | 33450 | ||
| May-20 | Customers refunds payable | 13230 | |
| cash | 13230 | ||
| Inventory | 8000 | ||
| Estimated returns inventory | 8000 | ||
| May-20 | Accounts receivable-Crescent Co. | 108900 | |
| sales | 108900 | ||
| Cost of goods sold | 70000 | ||
| inventory | 70000 | ||
| May-21 | Accounts receivable-Crescent Co. | 2300 | |
| cash | 2300 | ||
| May-21 | Cash | 42900 | |
| Accounts receivable-gee Co. | 42900 | ||
| May-21 | inventory | 87120 | |
| accounts payable-Osterman Co. | 87120 | ||
| May-24 | Accounts payable-Osterman Co. | 4950 | |
| inventory | 4950 | ||
| May-26 | Customers refunds payable | 7500 | |
| cash | 7500 | ||
| Inventory | 4800 | ||
| Estimated returns inventory | 4800 | ||
| May-28 | Sales Salaries Expense | 56000 | |
| Office Salaries Expense | 29000 | ||
| cash | 85000 | ||
| May-29 | Store Supplies | 2400 | |
| cash | 2400 | ||
| May-30 | Accounts receivable-Turner Co. | 77175 | |
| sales | 77175 | ||
| Cost of goods sold | 47000 | ||
| inventory | 47000 | ||
| May-30 | Cash | 111200 | |
| Accounts receivable-Crescent Co. | 111200 | ||
| May-31 | Accounts payable-Osterman Co. | 82170 | |
| Cash | 82170 |
| Adjusting Entries | |||
| May 31 | |||
| a. | Cost of Merchandise Sold | 13,950 | |
| Merchandise Inventory | 13,950 | ||
| b. | Insurance Expense | 12,000 | |
| Prepaid Insurance | 12,000 | ||
| c. | Store Supplies Expense | 9,800 | |
| Store Supplies | 9,800 | ||
| d. | Depreciation Expense | 14,000 | |
| Accumulated Depreciation: Store Equipment | 14,000 | ||
| e. | Sales Salaries Expense | 7,000 | |
| Office Salaries Expense | 6,600 | ||
| Salaries Payable | 13,600 | ||
| f. | Estimated Refunds Inventory | 35,000 | |
| Cost of Merchandise Sold | 35,000 | ||
| g. | Customer Returns and Allowances | 60,000 | |
| Customer Refunds Payable | 60,000 | ||
Create an adjusting trail balance.
In: Accounting
Required information
Problem 9-4A Estimating warranty expense and liability LO P4
[The following information applies to the questions
displayed below.]
On October 29, Lobo Co. began operations by purchasing razors for
resale. The razors have a 90-day warranty. When a razor is
returned, the company discards it and mails a new one from
Merchandise Inventory to the customer. The company’s cost per new
razor is $20 and its retail selling price is $75. The company
expects warranty costs to equal 8% of dollar sales. The following
transactions occurred.
| Nov. | 11 | Sold 105 razors for $7,875 cash. | ||
| 30 | Recognized warranty expense related to November sales with an adjusting entry. | |||
| Dec. | 9 | Replaced 15 razors that were returned under the warranty. | ||
| 16 | Sold 220 razors for $16,500 cash. | |||
| 29 | Replaced 30 razors that were returned under the warranty. | |||
| 31 | Recognized warranty expense related to December sales with an adjusting entry. | |||
| Jan. | 5 | Sold 150 razors for $11,250 cash. | ||
| 17 | Replaced 50 razors that were returned under the warranty. | |||
| 31 | Recognized warranty expense related to January sales with an adjusting entry. |
Problem 9-4A Part 2
2. How much warranty expense is reported for November and December?
In: Accounting