Master Business with Fun Quizzes & Brain Teasers!

Tamarisk Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2022. 1. Purchased a 1-year insurance policy on June 1 for $1,980 cash. 2. Paid $6,760 on August 31 for 5 months rent in advance. 3. On September 4, received $3,780 cash in advance from a corporation to sponsor a game each month for a total of 9 months for the most improved students at a local school. 4. Signed a contract for cleaning services starting December 1 for $1,040 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.) 5. On December 5, received $1,560 in advance from a gaming club. Determined that on December 31, $495 of these games had not yet been played.For each of the above transactions, prepare the adjusting journal entry that is required on December 31.
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Which statement WOULD NOT be true about the value of career research?There are many careers that would support your well-being, Career exploration allows you to find the onethat pays the most so your well-being is enhanced to the highest degree.Opinions from different people working in the occupation should be considered before ruling out aparticular career.Current job availability and the outlook for future employment are as essential to consider as whether youhave the skills, interest and abilities to pursue a particular career.Everyone values different aspects of an occupation. One person might value the flexible schedule aparticular job offers and another might care more about the amount of training that career might require.
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Use demand and supply diagrams (with proper labels and arrows) to show the effect of a) a reduction in price of DVD Players on market for DVDs. b) reports that eating chocolate adds to your life expectancy (!!) on the market for chocolate candy bars. c) an additional $1 a pack sales tax on cigarettes along with a ban on advertising cigarettes. d) automation in fast food industry on market for unskilled fast food workers. e) an increase in interest rate on the stock market. f) flooding in the southeast on market for fruits and vegetables.
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Chelene had been a caregiver for Martas elderly mother, Janis, for nine years. Shortly before Janis passed away, Chelene convinced her to buy Chelenes house for Marta. Janis died before the papers were signed, however. Four months later, Marta used her inheritance to buy Chelenes house without having it inspected. The house was built in the 1950s, and Chelene said it was in "perfect condition." Nevertheless, one year after the purchase, the basement started leaking. Marta had the paneling removed from the basement walls and discovered that the walls were bowed inward and cracked. Marta then had a civil engineer inspect the basement walls, and he found that the cracks had been caulked and painted over before the paneling was installed. He concluded that the "wall failure" had existed "for at least thirty years" and that the basement walls were "structurally unsound." Using the information presented in the chapter, answer the following questions.1. Can Marta avoid the contract on the ground that both parties made a mistake about the condition of the house? Explain. 2. Can Marta sue Chelene for fraudulent misrepresentation? Why or why not? What element (or elements) might be lacking?. 3. Now assume that Chelene knew that the basement walls were cracked and bowed and that she hired someone to install paneling before offering to sell the house. Did she have a duty to disclose this defect to Marta? Could a court find that Chelene's silence in this situation constituted misrepresentation? Explain.
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Cougar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash $ 23,000 Accounts payable $ 19,000 Investments (short-term) 2,100 Accrued liabilities payable 3,100 Accounts receivable 4,600 Notes payable (short-term) 5,200 Inventory 27,000 Notes payable (long-term) 41,000 Notes receivable (long-term) 2,700 Common stock 10,700 Equipment 57,000 Additional paid-in capital 96,300 Factory building 91,000 Retained earnings 36,600 Intangibles 4,500 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,600 cash. b. Lent $6,300 to a supplier who signed a two-year note. c. Purchased equipment that cost $24,000; paid $4,900 cash and signed a one-year note for the balance. d. Hired a new president at the end of the year. e. The contract was for $86,000 per year plus options to purchase company stock at a set price based on company performance. f. Issued an additional 2,300 shares of $0.50 par value common stock for $19,000 cash. g. Borrowed $19,000 cash from a local bank, payable in three months. h. Purchased a patent (an intangible asset) for $1,100 cash. i. Built an addition to the factory for $29,000; paid $8,700 in cash and signed a three-year note for the balance. j. Returned defective equipment to the manufacturer, receiving a cash refund of $2,400.Prepare a classified balance sheet at December 31of the current year.
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The auditors of Steffey Ltd., decided to study the cash receipts and disbursements for the month of July of the current year under audit. They obtained the bank reconciliations and the cash journals prepared by the company accountants, which revealed the following: June 30: Bank balance, $355,001; deposits in transit, $86,899; outstanding checks, $42,690; general ledger cash balance, $399,210. July 1: Cash receipts journal, $650,187; cash disbursements journal, $565,397. July 31: Bank balance, $506,100; deposits in transit, $51,240; outstanding checks, $73,340; general ledger cash balance, $484,000. Bank statement record of deposits: $835,846; of payments: $684,747.Required:Prepare a four-column proof of cash covering the month of July of the current year. Identify problems, if any.
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Suppose someone offered to sell you a note calling for payment of $1,225 15 months from today (456 days). They offer to sell it to you for $950. You have $950 in a bank time deposit which pays a 12% nominal rate with a daily (365 days a year) compounding, and you plan to leave the money in the bank unless you buy the note? Recommend action based on checking the decision in three ways: (1) by comparing your future value if you buy the note versus leaving your money in the bank, (2) by comparing the PV of the note with your current bank account, and (3) by comparing the EAR on the note versus that of the bank account.
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Terms of a lease agreement and related facts were: a. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $6,652. b. The retail cash selling price of the leased asset was $550,000. c. Its useful life was three years with no residual value. d. The lease term is three years and the lessor paid $550,000 to acquire the asset. e. Annual lease payments at the beginning of each year were $200,000. f. Lessors implicit rate when calculating annual rental payments was 9%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1, 2018. 2. Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs. 3. Record any entry(s) necessary at December 31, 2018, the fiscal year-end.
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Washington State Fisheries, Inc., processes salmon for various distributors. Two departments, processing and packaging, are involved. Data relating to tons of salmon sent to the processing department during May follow: Percent Completed Tons of Salmon Direct Materials Conversion Work-in-process inventory, May 1 1,960 80 % 70 % Work-in-Process inventory, May 31 3,340 50 % 30 % Started processing during May 8,150 Required: 1. Calculate the number of tons completed and transferred out during the month. 2. Calculate the number of equivalent units for both direct materials and conversion for the month of May, assuming that the company uses the weighted-average method. 3. How would your answer in requirement 2 change if the percentage of completion in ending inventory were as follows: direct materials 30%, conversion 40%
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Use the May 31 fiscal year-end information from the following ledger accounts (assume that all accounts have normal balances).General Ledger M. Muncel, Capital Acct. No. 301 Salaries Expense Acct. No. 622Date PR Debit Credit Balance Date PR Debit Credit Balance May 31 G2 88,000 May 31 G2 44,000 M. Muncel, Withdrawals Acct. No. 302 Insurance Expense Acct. No. 637Date PR Debit Credit Balance Date PR Debit Credit Balance May 31 G2 63,000 May 31 G2 5,460 Services Revenue Acct. No. 401 Rent Expense Acct. No. 640Date PR Debit Credit Balance Date PR Debit Credit Balance May 31 G2 155,056 May 31 G2 11,520 Depreciation Expense Acct. No. 603 Income Summary Acct. No. 901Date PR Debit Credit Balance Date PR Debit Credit Balance May 31 G2 21,000 Required:1. Prepare closing journal entries from the above ledger accounts.2. Post the above entries to their respective ledger accounts in the order entered under Part 1.
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A client heard through its hotline that John, the purchases journal clerk, periodically enters fictitious acquisitions. After John creates a fictitious purchase, he notifies Alice, the accounts payable ledger clerk, so she can enter them in her ledger. When the payables are processed, the payment is mailed to the nonexistent suppliers address, a post office box rented by John. John deposits the check in an account he opened in the nonexistent suppliers name. Required a. Define fraud, fraud deterrence, fraud detection, and fraud investigation. b. List four personal (as opposed to organizational) fraud symptoms, or red flags, that indicate the possibility of fraud. Do not confine your answer to this example. c. List two procedures you could follow to uncover Johns fraudulent behavior. (CIA Examination, adapted)
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Determine whether each statement describes the income effect, the substitution effect, or neither. Assume that all other variables are held constant. The price of lobster doubles, making Henri feel less wealthy. As a result, Henri buys fewer lobsters. The price of chicken falls by $0.75 a pound. Since chicken is now relatively less expensive than ground beef, Mary buys more chicken and less beef. The average price of a DVD falls by 15 percent. Tom buys more DVDs because his monthly movie budget can now stretch further. Model Planes Incorporated reduces production of its wooden plane product line. Jessica sees that the price of orange juice is higher this week. She decides to buy less orange juice and more apple juice because orange juice is relatively more expensive.
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Suppose that in a competitive market without government regulations, the equilibrium price of a hamburger is $7 each.Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.Statement Price Control Binding or NotDue to new regulations, fast-food restaurants that would like to pay better wages in order to hire more workers are prohibited from doing so. The government prohibits fast-food restaurants from selling hamburgers for more that $5 each.
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Pyramid Products Company has a revolving credit agreement with its bank. The company can borrow up to $1 million under the agreement at an annual interest rate of 9 percent. Pyramid is required to maintain a 10 percent compensating balance on any funds borrowed under the agreement and to pay a 0.5 percent commitment fee on the unused portion of the credit line. Assume that Pyramid has no funds in the account at the bank that can be used to meet the compensating balance requirement. Determine the annual financing cost of borrowing each of the following amounts under the credit agreement: a. $250,000 b. $500,000 c. $1,000,000
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Fechter Corporation had the following stockholders equity accounts on January 1, 2020: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of ParCommon Stock $200,000, and Retained Earnings $100,000. In 2020, the company had the following treasury stock transactions. Mar. 1 Purchased 5,000 shares at $8 per share. June 1 Sold 1,000 shares at $12 per share. Sept. 1 Sold 2,000 shares at $10 per share. Dec. 1 Sold 1,000 shares at $7 per share. Fechter Corporation uses the cost method of accounting for treasury stock. In 2020, the company reported net income of $30,000.Required:Journalize the treasury 2020, for net income.
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Bill and Ted are deciding what musical instruments they want to learn pick between the guitar, keyboard, and the drums to play for their band. They can They both want to have a good band, but also each has a preference over what to play. Both like the guitar over all else. However, Bill likes the keyboard more than the drums and Ted likes the drums more than the keyboard. What is crucial is that each chooses a different instrument, otherwise the band is pretty terrible. The actual combination does not affect the quality of the band. One night, Bill and Ted simultaneously reveal to each other what instrument they have bought and learned to play. Since they bought AND learned to play the instru- are committed to it! Given the information above, answer the following: ment they 1. Does either Bill or Ted have a dominant/dominated strategy? Explain 2. If Bill picks the keyboard, is it a best response for Ted to pick the drums? Explain 3. If Ted picks the guitar, is it a best response for Bill to pick the keyboard? Explain 4. Can there exist a Nash equilibrium in which Bill picks the drums and Ted picks the keyboard? Explain 5. Can there exist a Nash Equlibrium in which Bill picks the guitar and Ted picks the drums? Explain
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Fortuna Company issued 70,000 shares of $1 par stock, with a fair value of $5 per share, for 80% of the outstanding shares of Acappella Company. The firms had the following separate balance sheets prior to the acquisition: Assets Fortuna Acappella Current assets $2,100,000 $ 960,000 Property, plant, and equipment (net) 4,600,000 1,300,000 Goodwill -- 240,000 Total assets $6,700,000 $2,500,000 Liabilities and Stockholders' Equity Liabilities $3,000,000 $ 800,000 Common stock ($1 par) 800,000 Common stock ($5 par) 200,000 Paid-in capital in excess of par 2,200,000 300,000 Retained earnings 700,000 1,200,000 Total liabilities and equity $6,700,000 $2,500,000 Book values equal fair values for the assets and liabilities of Acappella Company, except for the property, plant, and equipment, which has a fair value of $1,400,000. Compute goodwill or gain recognized in the consolidated statements .Book values equal fair values for the assets and liabilities of Acappella Company, except for the property, plant, and equipment, which have a fair value of $1,600,000.Required: a. What is the Goodwill/Gain associated with the acquisition:b. What is the Non-Controlling Interest recorded in the consolidated balance sheetc. What is the balance of the assets and liabilities side of the consolidated balance sheet after the acquisition:d.Record the two elimination entries associated with the acquisition of the company
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HELP ME ASAP!!_______ is the design of buildings and creation of building plans, orblueprints.O ConstructionO MarketingO ArchitectureO Drafting
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Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals a. Cash used for purchase of office supplies, $1,650 b. Cash provided from consulting to customers, $43,100 c. Cash used for purchase of mining equipment, $68,000. d. Cash provided from long-term borrowing, $55,000 e. Cash used for payment of employee salaries, $23,500. f. Cash used for payment of office rent, $11,500 g. Cash provided from sale of equipment purchased in c. above, $22,000 h. Cash used to repay a portion of the long-term borrowing in d. above, $37,500 i. Cash used to pay office utilities, $3,800 j. Purchase of company vehicle, paying $9,500 cash and borrowing $14,500 Required: Calculate cash flows from investing activities. (List cash outflows as negative amounts.)
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Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi-purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours (54,000 + 10,200)]. Expected annual manufacturing overhead is $1,570,706. Thus, the predetermined overhead rate is $16.31 or ($1,570,706 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models.The companys managers identified six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows. Expected Use of Drivers by ProductActivity Cost Estimated Expected Use ofCost Pools Drivers Overhead Cost Drivers Home CommercialReceiving Pounds $87,100 335,000 215,000 120,000Forming Machine hours 157,500 35,000 27,000 8,000Assembling Number of parts 390,600 217,000 165,000 52,000Testing Number of tests 61,200 25,500 15,500 10,000Painting Gallons 36,806 5,258 3,680 1,578Packing and Pounds 837,500 335,000 215,000 120,000shipping $1,570,7061.) Under traditional product costing, compute the total unit cost of each product. (Round answers to 2 decimal places, e.g. 12.25.)2.) Under ABC, complete the schedule showing the computations of the activity-based overhead rates (per cost driver). (Round your answers to 2 decimal places, e.g. 2.25.)3.) Complete the schedule assigning each activity's overhead cost pool to each product based on the use of cost drivers. (Use rates from part b above and round cost assigned to 0 decimal places, e.g. 12,250. Round overhead per unit to 2 decimal places, e.g. 2.25. Note that due to rounding your total cost assigned will be slightly different than calculated above.)Cost Driver Home ModelCommercial ModelCost Assigned4.) Compute the total cost per unit for each product under ABC. (Round your answers to 2 decimal places, e.g. 12.25.)Home Model $Commercial Model $5.)Classify each of the activities as a value-added activity or a non-value-added activity.ActivityReceiving value-addednon-value-addedForming non-value-addedvalue-addedAssembling value-addednon-value-addedTesting value-addednon-value-addedPainting non-value-addedvalue-addedPacking and shipping value-addednon-value-added
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A company reports the following beginning Inventory and two purchases for the month of January. On January 26, the company sells 360 units. Ending Inventory at January 31 totals 130 units. Units Unit CostBeginning inventory on January 1 320 $3.10Purchase on January 9 70 3.30Purchase on January 25 100 3.40Required:Assume the Perpetual Inventory system is used. Determine the costs assigned to ending Inventory when costs are assigned based on LIFO.
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What are some of the steps that led to creating eHarmony?What advantages did eHarmony have because it was not the first entrant into the online dating market space? What disadvantages might there be as a late entrant into a market? Did eHarmony experience any or all of these? Which? Why did Greg Forgatch believe that eHarmonys first radio ad worked so well? What key advertising concepts has eHarmony applied?
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The defect rate for data entry of insurance claims at Sadegh Kazemi Insurance Co. has historically been about 1.50% This exercise contains only parts a, b, c, d, and e. a. If you wish to use a sample size of 100, the 3-sigma control limits are: UCLD (enter your response as a number between 0 and 1, rounded to three decimal places). b. what if the sample size used were 50, with 3 standard deviation? c. what if the sample size used were 100, with 2 standard deviation? d. what if the sample size used were 50, with 2 standard deviation? e. what happens to standard deviation Ap when the sample size is larger? f. explain why the lower control limits cannot be less then 0.
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What problems might robert encounter in comparing these companies to one another on the basis of their ratios? (select all the answers that apply.) a. financial ratios from software companies are never very reliable. b. the operating characteristics of firms across different industries vary significantly resulting in very different ratio values. c. the four companies are in very different industries. d. caution must be exercised when comparing older to newer firms, e.g., utility company vs. software company?
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