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Ann
2 months ago
15

Friends International is an NGO that fosters greater cultural awareness and understanding by arranging for people of different b

ackgrounds to spend time in other countries and cultures. On January 1, 2014 they purchased $80,000 of open airline tickets in advance that can be used for a variety of destinations. Using the accrual method, build the entry to record the use of $40,000 of these tickets on March 15, 2014 for multiple passengers on a flight from New York to Kigali, Rwanda.
Business
1 answer:
Nady [3.6K]2 months ago
6 0

Answer:

Dr Travel Expenses 40,000

Cr Prepaid Expenses 40,000

Explanation:

Friends International

Dr Travel Expenses 40,000

Cr Prepaid Expenses 40,000

A travel expense of $40,000 was DEBITED to acknowledge the costs associated with the usage of the tickets, while a CREDIT entry for $40,000 was made to Prepaid Expenses, as the company no longer retains the right to the benefits derived from the prepaid tickets.

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The new common stock cost is 16.3%. The price of a stock is determined as the present value of its anticipated future dividends discounted at the cost of equity. The cost of equity can be established through the capital asset pricing model (CAPM). According to CAPM, the cost of equity is defined as Ke = Rf + β(Rm-Rf), where Rf is 6%, Rm-Rf equals 5%, and β equals 2.00. This leads us to: E(r) = 6% + 2.00 × (5%) = 16%. The current market price is calculated as: Market price = 3.00 × (1.1)/(0.16-0.1) = $55. By factoring in the flotation costs while applying the dividend valuation model, the cost of the new common stock is given by: Cost of new common stock = D0 × (1 + g)/Po × (1-F) + g, where Po is 55, g is 10%, F is 5%, and D0 is 3. The calculation yields: 3 × (1.1)/55 × (1-0.05) + 0.1 = 16.3%.
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1 month ago
Seventy percent of Pitkin Corporation's sales are collected in the month of sale, 20% in the month following sale, and 10% in th
stepan [3596]

Answer:

$275,000

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In April, cash collected equals 70% of sales from that month plus 20% of sales from March and 10% from February.

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1 month ago
Conrad Construction Corp. has a $20 million contract to construct a building. The company estimates gross profit of $4 million.
stepan [3596]

Answer:

$2.5 millones

Explanation:

La construcción de Conrad ha estimado sus costos totales en $16 millones y un beneficio bruto de $4 millones (25% de los costos incurridos).

Si la empresa ha tenido costos de $2 millones durante este año, puede prever su beneficio bruto en $500,000.

Por lo tanto, los ingresos totales que debe informar para el año son $2.5 millones (= $2 millones + $0.5 millones)

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The Digby's workforce complement will grow by 20% (rounded to the nearest person) next year. Ignoring downsizing from automating
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Complete Question:

Baldwin's workforce is set to increase by 10% next year, preserving the same extra recruitment costs above the $1,000 baseline, amounting to $694 for each employee. The current complement is 434, with 67 new employees last year. How much will they allocate to recruiting this year?

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Explanation:

Total employees = 434 + 67 = 501

As stated, Baldwin's workforce is expected to grow by 10%.

Thus, existing staff x 110% = 501 x 110% = 551 (employee count cannot include decimals).

Indicating an increase of 50 employees.

Baldwin will incur a cost of $694 + $1,000 = $1,694

So, for the additional 50 employees, the total costs will be $1,694

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