The following table shows a person's nominal and real wages for three years, as well as the price level (price index) for each y

Answer:

D. Foreign Subsidiary

Explanation:

A Foreign Subsidiary is a firm that's either partially or fully owned by a larger corporation headquartered in a different nation. This indicates that the company did not organically establish development or begin operations in the nation where it operates. Establishing foreign subsidiaries is a key method for entering international markets, which entails significant risk and commitment compared to other methods listed in the question, due to considerations like costs and time for setting up a foreign subsidiary, compliance issues, tax obligations, immigration regulations, and securing office space and employee accommodations. These factors are less of a concern in joint ventures, strategic alliances, or franchising when seeking to enter international markets.

Answer:

Schrand Aerobics, Inc.

a. Journal Entries:

Debit Accounts Payable $600

Credit Cash $600

To document the cash payment.

Debit Rent $3,600

Credit Cash $3,600

To document the cash payment.

Debit Accounts Receivable $11,500

Credit Service Revenue $11,500

To record the client billing.

Debit Advertising $500

Credit Accounts Payable $500

To document promotional expenses.

Debit Cash $10,000

Credit Accounts Receivable $10,000

To register the cash received.

Debit Wages $2,400

Credit Cash $2,400

To register the cash paid.

Debit Utilities $680

Credit Accounts Payable $680

To document utility costs.

Debit Interest $20

Credit Cash $20

To register interest payment on notes payable.

Debit Retained Earnings $900

Credit Cash $900

To document dividend payment.

Debit Equipment $4,000

Credit Cash $4,000

To document cash used for purchasing sound equipment.

b. T-Accounts:

Cash

Description                 Debit       Credit         Balance

Balance                                                        $5,000

Accounts payable                        $600        4,400

Rent                                              3,600           800

Accounts receivable 10,000                        10,800

Wages                                          2,400        8,400

Interest                                              20        8,380

Dividend                                         900         7,480

Equipment                                  4,000         3,480

Accounts Receivable

Description           Debit       Credit         Balance

Balance                                                  $5,200

Service Revenue 11,500                         16,700

Cash                                      10,000       6,700

                       Equipment

Description           Debit       Credit         Balance

Cash                  $4,000                           $4,000

                            Notes Payable

Description           Debit       Credit       Balance

Balance                                                  $2,500      

                     Accounts Payable

Description           Debit       Credit       Balance

Balance                                                  $1,000

Cash                   $600                               400

Advertising                           $500            900

Utilities                                    680          1,580

                     Common Stock

Description        Debit       Credit       Balance

Balance                                                $5,500

                     Retained Earnings

Description       Debit       Credit        Balance

Balance                                                $1,200

Dividends        $900                                300

                      Services Revenue

Description           Debit       Credit       Balance

Accounts receivable           $11,500      $11,500

                      Rent Expense

Description           Debit       Credit       Balance

Cash                   $3,600                        $3,600

                      Advertising Expense

Description           Debit       Credit        Balance

Accounts payable $500                           $500

                      Wages Expense

Description          Debit       Credit         Balance

Cash                 $2,400                           $2,400

                      Utilities Expense

Description           Debit       Credit         Balance

Utilities payable   $680                           $680

                      Interest Expense

Description           Debit       Credit         Balance

Cash                      $20                              $20

Explanation:

Journal entries provide the initial record of transactions using debits and credits to the relevant accounts.

T-accounts serve as general ledger accounts that summarize transactions and compute the balance for each account.

Answer:

$9.71

Explanation:

The calculations for the share price are outlined below:-

Current EPS = Net Income ÷ Total Common Shares

= $9,250,000 ÷ 5,500,000

= $1.68

Current P/E ratio = Current stock price ÷ Current EPS

= $12 ÷ $1.68

= 7.14

Projected EPS for next year = $9,250,000 × 1.25 ÷ 8,500,000

= $1.36

Forecasted stock price for next year = $1.36 x 7.14

= $9.71

Response:

The type of buying situation is: Modified rebuy

Clarification:

A modified rebuy occurs when an individual or company reorders a product or service previously purchased but now seeks to change the supplier, product details (for example, gel seats) or the sales terms.

Answer: Nominal

Explanation:

The use of the Nominal measurement scale indicates that data is categorized into specific names or labels, which is the reason it is sometimes called Named data. For example, organizing dogs in a park by their breed such as Husky, American Bull, German Shepherd, etc.

This measurement scale does not involve numerical values and typically lacks any hierarchical arrangement.

In this case, the professor categorized her students based on their majors, with those majors serving as labels. Thus, she applied the Nominal measurement scale.