Rhoades Tax Services began business on December 1, 2015. Its December transaction are as follows. Dec.
1. Rhoades invested $20,000 in the business in exchange for common stock.
2. Paid $1 ,200 cash for December rent to Bomba Realty.
2. Purchased $1 ,080 of supplies on account.
3. Purchased $9,500 of office equipment; paying $4,700 cash with the balance due in 30 days.
8. Paid $1 ,080 cash on account for supplies purchased December 2.
14.Paid $900 cash for assistant's wages for 2 weeks' work.
20. Performed consulting services for $3,000 cash.
28. Paid $900 cash for assistant's wages for 2 weeks' work.
30. Billed clients $7,200 for December consulting services.
31. Paid $1 ,800 cash for dividends.

1. Supplies available at December 31 are $710.
2. Accrued wages payable at December 31 are $270.
3. Depreciation for December is $120.
4. Rhoades has spent 30 hours on an involved tax fraud case during December.

When completed in January, his work will be billed at $75 per hour. (It uses the account Fees Receivable to reflect amounts earned but not yet billed.) Then post adjusting entries to their T-accounts.

Required:
Record any adjusting entries using the financial statement effects template.

Winston uses the high-low method. it had an average cost per unit of $10 at its lowest level of activity when sales equaled 10,000 units and an average cost per unit of $6.50 at its highest level of activity when sales equaled 20,000 units. what would winston estimate its total cost to be if sales equaled 8,000 units?

The sticky-price theory asserts that the output prices of some goods and services adjust slowly to changes in the price level. suppose firms announce the prices for their products in advance, based on an expected price level of 100 for the coming year. many of the firms sell their goods through catalogs and face high costs of reprinting if they change prices. the actual price level turns out to be 110. faced with high menu costs, the firms that rely on catalog sales choose not to adjust their prices. sales from catalogs will

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu