Answer:
The % of completion of the ending inventory in work-in-process with respect to conversion cost is: 40%.
Explanation:
First determine the Physical Units of Closing Work In Process
Physical Units of Closing Work In Process Calculation
Physical Units of Closing Work In Process = 230 + 1,345 - 700
= 875
Calculation of Equivalent Units of Production
(To determine Equivalent units of Closing Work In Process)
Conversion Cost
Units Completed and Transferred (700 × 100%) = 700
Units in Closing Work In Process (Balancing figure) = 350
Equivalent Units of Production = 1,050
Percentage Completion = Equivalent Units of Closing Work In Process / Physical Units of Closing Work In Process × 100
= 350 / 875 × 100
= 40%
The % of completion of the ending inventory in work-in-process with respect to conversion cost is: 40%.
A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if investors' required rate of return is 14.2%, what is the stock price
Answer:
$11.98
Explanation:
A share of common stock just made a dividend payment of $1.00
The expected long-run growth rate of for this stock is 5.4%
= 5.4/100
= 0.054
The investors required rate of return is 14.2%
= 14.2/100
= 0.142
The first step is to calculate the dividend year 1(D1)
D1= Do(1+g)
= 1(1+0.054)
= 1×1.054
= $1.054
Therefore, the stock price can be calculated as follows
Po= D1/(rs-g)
= 1.054/(0.142-0.054)
= 1.054/0.088
= $11.98
Hence the Stock price is $11.98
Your coworker just finished a formal report for her manager. You notice the report has the title page on top with a staple in the upper left-hand corner. What advice can you give her
Answer:
Enclose the report in a binder made of vinyl or hard paper
Explanation:
Remember, this report isn't some casual document to anyone, but a formal report to a respectable personality–the manager.
Professionally such reports are binded so as to enclose them properly with vinyl or hard paper, instead of simply using a staple. Also, I'll recommend that she places the the title page after the cover before the main contents of the report.
Sweeties, Inc., manufactures a sugar product by a continuous process, involving three production departments-Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $369,000, $146,000, and $97,600, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $30,200, and work in process at the end of the period totaled $28,400.
Required:
A1) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials.
A2) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor.
A3) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead.
B. On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting.
Answer:
A1) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials.
Dr Work-in process: Refining Department 369,000
Cr Materials inventory 369,000
A2) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor.
Dr Work-in process: Refining Department 146,000
Cr Wages payable 146,000
A3) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead.
Dr Work-in process: Refining Department 97,600
Cr Manufacturing overhead: Refining Department 97,600
B. On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting.
Dr Work-in process: Sifting Department 614,400
Cr Work-in process: Refining Department 614,400
$30,200 - $28,400 + $369,000 + $146,000 + $97,600 = $614,400
"The Heating Division of Kobe International produces a heating element that it sells to its customers for $45 per unit. Its variable cost per unit is $30, and its fixed cost per unit is $11. Top management of Kobe International would like the Heating Division to transfer 14,900 heating units to another division within the company at a price of $33. Assume that the Heating Division has sufficient excess capacity to provide the 14,900 heating units to the other division. What is the minimum transfer price that the Heating Division should accept
Answer: $30
Explanation:
The formula to determine the transfer price is;
Transfer price = Differential cost to selling division + Opportunity cost of selling internally
The Differential cost is the Variable cost of producing the heating units so is $30.
The Opportunity cost of selling internally refers to if any sales will be foregone outside by selling inside. As the Heating Division has sufficient excess capacity, outside sales will not be affected so this cost is $0.
Transfer Price = 30 + 0
= $30
Gladstone Company issues 200,000 shares of preferred stock for $40 a share. The stock has fixed annual dividend rate of 5% and a par value of $3 per share. If sufficient dividends are declared, preferred stockholders can anticipate receiving dividends of:
Answer: $30,000
Explanation:
Preferred Dividends are paid at a fixed rate based on the par value and the dividend rate.
If there are 200,000 preferred shares, the amount that is to be paid to them in dividends every year would be;
= 200,000 * 5% * 3
= $30,000
This amount will be paid to them if sufficient dividends are declared to cover this amount. If the shares are Cumulative, they will receive this dividend in totality eventually even if it is not the year the dividends are announced in because these kind of shares accrue the dividends.
Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machines' first year depreciation under the double-declining-balance method.
Answer:
Annual depreciation= $48,000
Explanation:
Giving the following information:
Purchasing price= $135,000
Salvage value= $15,000
Useful life= 5 years
To calculate the depreciation expense under the double-declining method, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= 2*[(135,000 - 15,000) / 5]
Annual depreciation= $48,000
Suppose you are committed to owning a $230,000 Ferrari. If you believe your mutual fund can achieve an annual return of 10.95 percent, and you want to buy the car in 12 years on the day you turn 30, how much must you invest today
Answer:
$66,101.45
Explanation:
To find the amount of money that you must invest today, you have to use the formula to calculate the present value:
PV=FV/(1+i)^n
PV= present value
FV= future value= 230,000
i= interest rate= 10.95%
n= number of periods of time= 12
PV=230,000/(1+0.1095)^12
PV=230,000/(1.1095)^12
PV=230,000/3.4795
PV=66,101.45
According to this, the answer is that you must invest today $66,101.45.
Answer:
The amount to be invested today, present value = $66,099.80 Explanation:
The amount to be invested today is the present of an investment of 12 years which would produce a future value of $230,000 where interest rate is 10.95%.
The formula below would be of help;
PV = FV× (1+r)^(-n)
PV - Present Value, FV- Future value, n- number of years
PV = ?, FV- 230,000 , r- 10.95%, n- 12
PV = 230,000 × (1.1095)^(-12)
PV = 66,099.80
The amount to be invested today, present value = $66,099.80
Jeff visited a car dealership and test-drove a used car. After discussing the price with Jake, a salesman at the dealership, and learning that he could buy the car for $500 less than the sticker price, Jeff asked Jake to hold the car for him until 8:00 PM that evening so he could bring his wife back to the dealership to see the car. Jake agreed, writing out a note promising not to sell the car until 8:00 PM. The note was written on dealership letterhead, but Jake did not sign his name. The dealership broke that promise and sold the car to Bill before 8:00 PM. Was the dealership free to sell the car? Can Jeff sue Bill and recover the car? Does Bill have a claim against the dealership?
Answer:
Since this whole sales agreement is about a car, then it falls under the statute of frauds. Any sales contract or offer for any amount of $500 or more needs to be signed. We are not told the final price of the car, but if we consider that only the discount was $500, then we can assume that the price of the car was higher than that. Since the note was not signed, then the promise is not valid.
Which of the followings is a good source for gathering competitive information about senior managers' responsibilities, their background, their education, and highlights of their achievements to date? Group of answer choices government market research firms company websites business and trade publications
Answer:
business and trade publications
Explanation:
A trade publication is a type of publications that specifically share information between and about personnels or individuals, often experts, within a particular industry for the purpose of improving their business or field and to actively keep current or updated on market trends.
Hence, BUSINESS AND TRADE PUBLICATIONS is a good source for gathering competitive information about senior managers' responsibilities, their background, their education, and highlights of their achievements to date.
The company websites is a good source for gathering of competitive information about senior managers' responsibilities, background, education,and highlights of their achievements to date
T ypically, a flourishing organization will publish the full information of their teams on its official website for different official reasons.
The Information does features the managers and other staffs personal details like phone numbers, background, education, achievement, experiences etc.
Hence, those information can be gathered and used by competitors.
In conclusion, the company websites is a good source for gathering of competitive information about senior managers
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The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31, 2016:
Number of Days Unpaid Total Accounts Receivable Historical % Uncollectible
Not yet due $128,200 3%
1-30 days past due $90,900 13%
31-60 days past due $55,300 19%
Over 60 days past due $33,500 37%
Required:
a. The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Inc. is a credit balance in the amount of $29,457 on July 31, 2016. Prepare the required adjusting entry to record Bad Debt Expense for the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
b. Johnston Supplies, Inc. writes off $3,251 of uncollectible accounts on August 15, 2016. Prepare the required adjusting entry to record the write-off. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
c. Use a T-account to determine the account balance in the Allowance for Doubtful Accounts on August 15
Answer:
a. June 30, 2016 adjusting entry for bad debt expense
Dr Bad debt expense 9,108
Cr Allowance for doubtful accounts 9,108
b. August 15, 2016, uncollectible accounts are written off
Dr Allowance for doubtful accounts 3,251
Cr Accounts receivable 3,251
c. Allowance for doubtful accounts
debit credit
June 30, 2016 $38,565
August 15, 2016 $3,251
August 15, 2016 $35,314
Explanation:
Number of Days Total Accounts Historical % Total
Unpaid Receivable Uncollectible
Not yet due $128,200 3% $3,846
1-30 days past due $90,900 13% $11,817
31-60 days past due $55,300 19% $10,507
Over 60 days past due $33,500 37% $12,395
Total $38,565
You purchase a bond with an invoice price of $1,410. The bond has a coupon rate of 6.8 percent, and there are 3 months to the next semiannual coupon date. What is the clean price of the bond? Assume a par value of $1,000.
Answer:
clean price = $1,393
Explanation:
The clean price of the bond does not include any accrued interests. The invoice price = clean price + accrued interests
invoice price = $1,410accrued interests = $1,000 x 0.068 x 3/12 = $17clean price = invoice price - accrued interests = $1,410 - $17 = $1,393
The demand curve is Qd = 1,600 – 50P and the supply curve is Qs = 1,200 + 150P. Calculate the equilibrium quantity. Group of answer choices
Answer:
Equilibrium quantity is 1500
Explanation:
The equilibrium quantity is achieved at a point where the quantity demanded equals quantity supplied.
Qd=Qs
Qd=1,600 – 50P
Qs== 1,200 + 150P
1,600 – 50P=1,200 + 150P
We need to collect like terms
1600-1200=150P+50P
400=200P
P=400/200
P=2
We need substitute 2 for P in any of Qd or Qs
Qs=1200+(150*2)=1500
Multinational enterprises (MNEs) have an impact far beyond their firm boundaries. Assume you are working for a small firm that supplies a product or service to an MNE. How might your relationship change as the MNE moves from Globalization 2.0 to Globalization 3.0 operations?
Answer:
Multinational enterprises (MNEs)
Relationship Change as the MNE moves from Globalization 2.0 to Globalization 3.0 operations:
This move means that Indian and Chinese companies would be competing with my local small firm. The MNE may be looking for cheaper prices for my company's products and services, which the Indian and Chinese companies would more efficiently supply it. My firm may be on the precipice of liquidating if this MNE is our major customer. My firm must move fast to become more competitive by differentiating our products and services with better quality and perhaps reduced production costs, to enable it compete more favorably with the Indian and Chinese competitors. Otherwise, we may regard the relationship as nearing its end and prepare for other opportunities with other companies.
Explanation:
Globalization reduces national boundaries by integrating national economies into a globalized economy, thus enabling companies to compete globally for financial resources, goods, and services. When Globalization 1.0 happened, countries were globalized and the world became a global village. When Globalization 2.0 from which the G7 profited largely, companies were globalized. With the current Globalization 3.0, individuals are being globalized, and the highest beneficiaries are Indian and Chinese nationals who appear better prepared to take on the world, garner most of the important resources to themselves, and call the shots from the boardrooms. An example is Microsoft's current CEO, Satya Nadella, who is an Indian-American.
To create the proper style for an argumentative essay, a writer should
add personal statements.
O include vague language.
O incorporate slang words.
O provide clear statements.
Answer:
Provide clear statements
The government can pay for projects to create work
Explanation:
To create the proper style for an argumentative essay, a writer should
provide clear statements.
What is argumentative essay?An argumentative essay can be defined as a writing essay in which the writer is meant include evidence as well as detailed fact that will help to backup the argument.
When writing an argumentative essay it is important that the writer provide clear statement to as well focus on the evidence.
Therefore to create the proper style for an argumentative essay, a writer should provide clear statements.
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Vibgyor Inc., a manufacturer of smartphones, has entered into a 15-year partnership with a software company to develop sophisticated operating systems and innovative mobile applications for its cell phones. This would mean that both the companies will have to mutually share their resources, knowledge, and capabilities to develop a superior product. What is the relationship between Vibgyor and the software company best referred to as in this scenario?
Answer: b. A Strategic Alliance
Explanation:
A Strategic Alliance refers to two or more entities agreeing to work together and involves them sharing their resources, knowledge, and capabilities to develop a superior product or other objectives that might not be tangible.
The Companies will remain independent while this is done.
The relationship between Vibgyor and the software company can therefore best be referred to as a Strategic Alliance.
Suppose that the government imposes a $2 a cup tax on coffee. The rise in the price of a Starbucks coffee will be ______, coffee. The number of cups of coffee bought in coffee shops will _______.
Answer:
increase, decrease
Explanation:
In simple words, when the tax was imposed on the product the company will ultimately bear it to the final consumer which means the price will rise. However when the price of the product rises the demand for that product decreases due to the fact that many individuals would not be able to buy it now from their limited income, this phenomenon is called price elasticity due to income.
Answer:
increasedecreaseExplanation:
Sharon transfers to Russ a life insurance policy with a cash surrender value of $30,000 and a face value of $100,000 in exchange for real estate. Russ continues to pay the premiums on the policy until Sharon dies 7 years later. At that time, Russ has paid $14,000 in premiums, and he collects the $100,000 face value. How much of the proceeds, if any, are taxable to Russ?
Answer: $56,000
Explanation:
When a life insurance policy is transferred the taxable amount at death is the value of proceeds that the policy gives less the Cash surrender value and the premiums that have already been paid by the formula;
Taxable Proceeds = Total Proceeds received - (Cash Surrender Value + Premiums paid)
Taxable Proceeds = 100,000 - (30,000 + 14,000)
Taxable Proceeds = $56,000
Bolster Soda had an accounts receivable turnover ratio of 9.9 this year and 11.0 last year. Castor Soda had a turnover ratio of 9.3 this year and 9.3 last year. This implies:
Answer:
This implies Bolster Soda collects receivables more effectively and quickly than Castor Soda in the two years.
Explanation:
The accounts receivable turnover ratio refers to an accounting ratio that is used to show the how effective a firm is in collecting the receivables or money its clients are owing it.
This implies that accounts receivable turnover ratio is used to determine the extent to which a firm ie effectively managing the credit it gives to customers and how quickly the firm collects that that short-term debt.
The formula for calculating the accounts receivable turnover ratio is as follows:
Accounts receivable turnover ratio = Net credit sales / Average accounts receivable
When the accounts receivable turnover ratio is high, it implies that the company is efficient is collecting debt and a high percentage of its cutomers are paying up their debts.
The account receivable turnover ratios in the question therefore imply Bolster Soda collects receivables more effectively and quickly than Castor Soda in the two years.
A firm expects to sell 25,200 units of its product at $11.20 per unit and to incur variable costs per unit of $6.20. Total fixed costs are $72,000. The total contribution margin is:
Answer:
The answer is $126,000
Explanation:
Contribution Margin is calculated as selling price minus the variable cost. It measures the ability of the sales price to cover the variable cost incurred on the goods produced.
Selling price per unit - $11.20
Variable cost per unit - $6.20
Contribution margin = $11.20 - $6.20
= $5
Total contribution margin is
$5 x 25,200 units
= $126,000
2020 Melissa, Nicole, and Ben are equal partners in the Opto Partnership (calendar year-end). Melissa decides she wants to exit the partnership and receives a proportionate distribution to liquidate her partnership interest on January 1. The partnership has no liabilities and holds the following assets as of January 1: Tax Basis FMV Cash $ 19,890 $ 19,890 Accounts receivable 0 26,520 Stock investment 8,760 15,150 Land 36,300 48,600 Totals $ 64,950 $ 110,160 Melissa receives one-third of each of the partnership assets. She has a basis in her partnership interest of $29,095. (Leave no answer blank. Enter zero if applicable.) a. What is the amount and character of any recognized gain or loss to Melissa
Answer and Explanation:
According to the given situation, the amount and the character of any recognized gain or loss made to Melissa should be zero or in another word she did not recognize any loss or gain on the distribution instead of this she would adjusted the basis of assets that are to be distributed
Hence, nothing would be recognized
BBQ Corporation has a target capital structure that is 70 percent equity, 30 percent debt. The flotation costs for equity issues are 15 percent of the amount raised; the flotation costs for debt are 8 percent. If BBQ needs $150 million for a new manufacturing facility, what is the cost when flotation costs are considered
Answer:
$172,215,844 is the cost when flotation costs are considered
Explanation:
flotation
Weighted average flotation cost = {(Flotation cost debt * Weight debt) + (Flotation cost equity * Weight equity)
= (8% * 0.30) + (15% * 0.70)
=0.024 + 0.105
= 0.129
= 12.9%
Calculation of the cost of funds
Cost of funds = Amount raised / (1 - Weighted average floatation cost)
= $150,000,000 / (1-0.129)
= $150,000,000 / (0.871)
=$172,215,844
Therefore, the cost of raising fund is $172,215,844
Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date of acquisition, Scrub Company reported assets and liabilities with book values of $420,000 and $169,000, respectively, common stock outstanding of $91,000, and retained earnings of $160,000. The book values and fair values of Scrub’s assets and liabilities were identical except for land, which had increased in value by $21,000, and inventories, which had decreased by $6,000.
a. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Mason acquired its ownership of Best for $291,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the basic consolidation entry
2. Record the excess value (differential reclassifcation entry)
b. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Mason acquired its ownership of Best for $262,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the basic consolidation entry.
2. Record the excess value (differential) reclassification entry.
Answer:
a. See the journal entries in the explanation below.
Retained Earnings is $175,000
Goodwill is $25,000
b. See the journal entries in the explanation below.
Retained Earnings is $175,000
Capital Reserve is $4,000
Explanation:
Note: There are mistakes the names of the companies in the requirements a anb b. These correctly restated before answering the question by as follows:
a. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $291,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the basic consolidation entry
2. Record the excess value (differential reclassification entry)
b. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $262,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the basic consolidation entry.
2. Record the excess value (differential) reclassification entry.
The answers and explanation are therefore given as follows:
a. Prepare the following consolidation entries required when Consideration is $291,000
1. Record the basic consolidation entry
Accounts Dr ($) Cr ($)
Common Stock 91,000
Retained Earnings (w.1) 175,000
Goodwill (w.2) 25,000
Investment in Scrub Company 291,000
(To record the elimination of investment and stockholder equity.)
2. Record the excess value (differential reclassification entry)
Note that $25,000 is transferred to Goodwill account in part 1 above.
The $25,000 is transferred to Goodwill because when the consideration is greater than the net asset value which is calculated as the of Common Stock and Retained Earnings, the difference is the Goodwill.
When Net Consideration is more than the net asset value (Stockholder Equity), then the difference is to be transferred to Goodwill.
Workings:
w.1: Calculation of retained earning to be eliminated
Particulars $
Retained Earnings Balance 160,000
Increase in land value 21,000
Decrease in inventories values (6,000)
Fair Value retained earnings to be eliminated 175,000
w.2: Calculation of Goodwill to be recognized
Particulars $ $
Consideration paid for acquisition 291,000
Assets of Scrub:
Asset book value 420,000
Increase in land value 21,000
Decrease in inventories values (6,000)
Assets 435,000
Liabilities (169,000)
Net asset value of Scrub (266,000)
Goodwill to be recognized 25,000
b. Prepare the following consolidation entries required when Consideration is $262,000
1. Record the basic consolidation entry
Accounts Dr ($) Cr ($)
Common Stock 91,000
Retained Earnings (w.3) 175,000
Investment in Scrub Company 262,000
Capital reserve (w.4) 4,000
(To record the elimination of investment and stockholder equity.)
2. Record the excess value (differential reclassification entry)
Note that $4,000 is transferred to Capital Reserve in part 1 above.
The $4,000 is transferred to Capital Rserve because when the consideration is less than the net asset value which is calculated as the of Common Stock and Retained Earnings, the difference is Capital Reserve.
When Net Consideration is less than the net asset value (Stockholder Equity), then the difference is to be transferred to Capital reserve.
Workings:
w.3: Calculation of retained earning to be eliminated
Particulars $
Retained Earnings Balance 160,000
Increase in land value 21,000
Decrease in inventories values (6,000)
Fair Value retained earnings to be eliminated 175,000
w.4: Calculation of Goodwill to be recognized
Particulars $ $
Consideration paid for acquisition 262,000
Assets of Scrub:
Asset book value 420,000
Increase in land value 21,000
Decrease in inventories values (6,000)
Assets 435,000
Liabilities (169,000)
Net asset value of Scrub (266,000)
Capital reserve to be recognized (4,000)
James just received an $8,000 inheritance check from the estate of his deceased rich uncle. James wants to set aside enough money to pay for a trip in five years. If the trip is expected to cost $5,000, how much of the $8,000 must James deposit now if the rate of return is 12% per year in order to have the $5,000 in five years
Answer:
$2831.13
Explanation:
The computation of the present value of 5,000 in five years is shown below:-
Present Value of 5,000 in five years = Expected cost ÷ (1 + Rate of return)^Number of years
= $5,000 ÷ (1 + 12%)^5
= $
5,000 ÷ (1.12)^5
= $2831.13
Therefore for computing the present value of 5,000 in five years we simply applied the above formula.
Several years ago, Macro Riders issued preferred stock with a stated annual dividend of 5% of its $600 par value. Preferred stock of this type currently yields 10%. Assume dividends are paid annually. a. What is the estimated value of Macros preferred stock
Answer: $300
Explanation:
The Value of a Preferred Stock is derived like a perpetuity in that it is calculated by dividing the annual cash return received by the annual yield/interest.
The stated annual dividend is 5% of $600;
= 5% * 600
= $30
Value of the Preferred Stock = [tex]\frac{Annual Cash Return}{Annual Yield}[/tex]
= [tex]\frac{30}{0.10}[/tex]
= $300
Journalize the following transactions (assume a 360-day year when calculating interest):
Mar. 1 Received a 90-day, 10% note for $24,000, dated March 1, from Batson Co. on account.
May 30 The note of March 1 was dishonored.
Answer:
Mar. 1 Received a 90-day, 10% note for $24,000, dated March 1, from Batson Co. on account.
Dr Notes receivable 24,000
Cr Accounts receivable 24,000
May 30 The note of March 1 was dishonored.
Dr Accounts receivable 24,600
Cr Notes receivable 24,000
Cr Interest revenue 600
If the note would have been collected (paid by Batson Co.), the journal entry would have been:
May 30, note collected from Batson Co.
Dr Cash 24,600
Cr Notes receivable 24,000
Cr Interest revenue 600
Blossom Company issued 3,000 shares of common stock. Prepare the entry for the issuance under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,675. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) The stock had a par value of $9.25 per share and was issued for a total of $51,500. (b) The stock had a stated value of $9.25 per share and was issued for a total of $51,500. (c) The stock had no par or stated value and was issued for a total of $51,500. (d) The stock had a par value of $9.25 per share and was issued to attorneys for services during incorporation valued at $51,500. (e) The stock had a par value of $9.25 per share and was issued for land worth $51,500.
Answer:
Blossom Company
Issue of 3,000 Common Stock Shares on the following assumptions:
(a) The stock had a par value of $9.25 per share and was issued for a total of $51,500:
Debit Cash Account $51,500
Credit Common Stock $27,750
Credit Paid-in In Excess of Par $23,750
To record the issue of 3,000 shares of $9.25 par value.
(b) The stock had a stated value of $9.25 per share and was issued for a total of $51,500:
Debit Cash Account $51,500
Credit Common Stock $27,750
Credit Additional Paid-in Capital $23,750
To record the issue of 3,000 shares of $9.25 stated value.
(c) The stock had no par or stated value and was issued for a total of $51,500:
Debit Cash Account $51,500
Credit Common Stock $51,500
To record the issue of 3,000 shares.
(d) The stock had a par value of $9.25 per share and was issued to attorneys for services during incorporation valued at $51,500:
Debit Incorporation Cost (Attorneys Fees) $51,500
Credit Common Stock $51,500
To record the issue of 3,000 shares for attorneys' services
(e) The stock had a par value of $9.25 per share and was issued for land worth $51,500.
Debit Land $51,500
Credit Common Stock $51,500
To record the issue of 3,000 shares for land.
Explanation:
Shares of Blossom Company can be issued to settle debts or expenses or in exchange for other assets than cash. They can also be issued at par value, above par value, or below par value, depending on prevailing circumstances. Some shares have a par value, which is the nominal value of the shares as authorized. Some are issued at a stated value without par. Others have no par or stated values. Their different accounting treatments are indicated above for Blossom Company.
Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation:
1. Acquired $30,000 cash from the issue of common stock.
2. Borrowed $40,000 cash from National Bank.
3. Earned cash revenues of $48,000 for performing services.
4. Paid cash expenses of $25,000.
5. Paid a $1,000 cash dividend to the stockholders.
6. Acquired an additional $20,000 cash from the issue of common stock.
7. Paid $10,000 cash to reduce the principal balance of the bank note.
8. Paid $53,000 cash to purchase land.
9. Determined that the market value of the land is $75,000.
a. Record the preceding transactions in the horizontal statements model. Also, in the Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first event is shown as an example.
Answer:
sine there is not enough space available, I used an excel spreadsheet.
Explanation:
The last event (9) does not need to be recorded since fixed assets must be reported using their historical value, not their fair market value.
The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions's job cost sheets show the following total costs accumulated on three furniture jobs. Job 602 Job 603 Job 604 Direct materials $ 1,500 $ 3,300 $ 2,700 Direct labor 800 1,420 2,100 Overhead 400 710 1,050 Job 602 was started in production in May, and these costs were assigned to it in May: direct materials, $600; direct labor, $180; and overhead, $90. Jobs 603 and 604 were started in June. Overhead cost is applied with a predetermined rate based on direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 is expected to be finished in July. No raw materials are used indirectly in June. (Assume this company’s predetermined overhead rate did not change over these months.) Required: 1. What is the cost of the raw materials used in June for each of the three jobs and in total
Answer:
June Costs of the raw materials used for each of the three jobs and in total.
Job 602 Job 603 Job 604 Total
Direct materials $ 900 $ 3,300 $ 2,700 6900
Explanation:
Business Solutions
Job 602 Job 603 Job 604
Direct materials $ 1,500 $ 3,300 $ 2,700
Direct labor 800 1,420 2,100
Overhead 400 710 1,050
Job 602 May: Costs
Direct Materials, $600;
Direct Labor, $180;
Overhead, $90
June Costs of the raw materials used for each of the three jobs and in total.
Job 602 Job 603 Job 604 Total
Direct materials $ 900 $ 3,300 $ 2,700 6900
Job 602 total costs are $ 1500 and raw materials costs in May are $ 600. The remaining $ 900 is consumed in June.
Raw materials Job 603 and 604 are consumed in June in full amount
Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs are $270 per unit. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the contribution margin ratio.
Answer:
contribution margin ratio= 0.4
Explanation:
Giving the following information:
Selling price per unit= $450
Unitary variable costs=$270
To calculate the contribution margin ratio, we need to use the following formula:
contribution margin ratio= contribution margin/selling price
contribution margin ratio= (450 - 270) / 450
contribution margin ratio= 0.4
hen a monopolist is able to sell its product at different prices, it is engaging in a. distribution pricing. b. quality-adjusted pricing. c. arbitrage. d. price discrimination.
Answer:
Price discrimination
Explanation:
Price discrimination is charging customers differently for the same product.
Price discrimination is a type of selling strategy where customers are charged for same goods and services. The seller charges based on what they think that the user is likely to pay.