Answer:
1. Ellen would only be able to recover the $500,000 insurance proceed if she should be able to find a technicality in the insurance company's rules and regulation. This is because, strictly following the rules, there is nothing she can do regarding to the claim.
2. It is not ethical for the insurance company to deny the claim of Ellen on the basis of technicality but when viewed from another perspective, they are strictly following the rules of the insurance organization and applying it to the later. It is now left for the claimant to find another technicality on why he or she must be paid the insurance claim.
Explanation:
Data concerning three of the activity cost pools of Salcido LLC, a legal firm, have been provided below: Activity Cost Pool Total Cost Total Activity Researching legal issues $ 22,880 800 research hours Meeting with clients $ 1,325,275 7,573 meeting hours Preparing documents $ 94,240 5,900 documents The activity rate for the "meeting with clients" activity cost pool is closest to:
Answer:
Meeting with clients= $175 per meeting hour
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Meeting with clients= 1,325,275/7,573
Meeting with clients= $175 per meeting hour
Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted 24,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $36,000 Direct labor 8,640 Total $44,640 The standard materials price is $0.6 per pound. The standard direct labor rate is $9 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $33,400 Actual direct labor 8,000 Total $41,400 There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 21,600 units during June. Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct materials quantity variance $ 2.5 Favorable Direct labor time variance
Answer:
$1,000 unfavorable and $224 unfavorable
Explanation:
The computation of the direct material quantity variance and the direct labor time variance is shown below:
For direct material quantity variance:
= (Standard direct materials ÷ bugeted toy × actually produced) - actual direct materials
= ($36,000 ÷ $24,000 × 21,600 units) - $33,400
= $32,400 - $33,400
= $1,000 unfavorable
For direct labor time variance
= (Standard direct labor ÷ bugeted toy × actually produced) - actual direct labor
= ($8,640 ÷ $24,000 × 21,600 units) - $8,000
= $7,776 - $8,000
= $224 unfavorable
Your boss asks you to settle a negotiation between yourself and a co-worker. In order to improve your own bargaining position, you should encourage your boss to:
Answer:
give only my coworker an incentive to reach an agreement.
Explanation:
One of the ways to improving my bargaining position before negotiation as in the above scenario is that I would encourage my boss to give only my coworker an incentive to reach an agreement so as to make the whole process seamless. There are several reasons why parties engage in negotiation; one of which is to reach an agreement in order to avoid dispute or settle disagreement.
By allowing incentives to be given to my coworker alone in order to reach an agreement, it shows that I am willing to compromise hence improve my bargaining position and strengthen my negotiation skill. It means that I am willing to sacrifice my own term and it must be noted that without compromise by either of the parties in a negotiation, it can be nearly impossible to reach an agreement.
While walking along a beach, Daniel notices that several girls are wearing large, round plastic sunglasses and the boys are wearing metal sunglasses. Which concept most likely accounts for the similar fashion within a gender and the different fashions between genders? A. Consumerism B. Competition C. Individual behavior D. Peer pressure
Answer:
the correct answer should be A.
he financial manager at Starbuck Industries is considering an investment that requires an initial outlay of $24,000 and is expected to produce cash inflows of $1,000 at the end of year 1, $5,000 at the end of years 2 and 3, $14,000 at the end of year 4, $9,000 at the end of year 5, and $7,000 at the end of year 6. a. Select the time line option that represents the cash flows associated with Starbuck Industries' proposed investment. b. Which of the approaches—future value or present value—do financial managers rely on most often for decision making? Why?
Answer:
Please check the attached image for the timeline image.
present value. this is because in making the decision of whether to carry out a project, the decision is made at the beginning of of the project and not in the future. so it is important to determine the present value to know if the project is profitable and should be carried out.
Explanation:
Timeline is arranges a series of events in chronological order. cash inflows are recorded as positive while cash outflows have a negative sign in front of the amount.
present value is the sum of discounted cash flows
Ranger Corporation is currently selling widgets for $40 at a cost of $20 per unit. Fixed costs are currently $500 and the current production is 100 widgets. What is the Operating Cash Flow at this output level
Answer: $2000
Explanation:
From the question, we are informed that Ranger Corporation is currently selling widgets for $40 at a cost of $20 per unit and that the fixed costs are currently $500 and the current production is 100 widgets.
The Operating Cash Flow at this output level will be:
= (P - V) × Q
where p = selling price = $40
v = cost price = $20
q = quantity = 100
= ($40 - $20) × 100
= $20 × 100
= $2000
Designs by Candice is a graphic design studio specializing in logos and business stationery. Candice has just made a $69,300 investment in her company and desires a 11% return. Annually, she designs and prints 3,000 orders. Her costs include
Answer:
Designs by Candice
Her costs include:
Costs of materials, labor, overheads.
Then in charging her customers she would include the profit target of $7,623 (representing 11% of her capital investment).
Explanation:
As a graphic design studio, Design by Candice would buy stationery and design materials, including 3D printers and other software. Candice would also incur labor costs on those doing the design proper. There are also manufacturing overheads, including rent, utilities, etc. and not to forget other indirect costs like selling and marketing and administrative expenses.
Joe must pay liabilities of 1,000 due one year from now and another 2,000 due three years from now. There are two available investments: Bond I: A one-year zero-coupon bond that matures for 1,000. The yield rate is 6% per year Bond II: A two-year zero-coupon bond with face amount of 1,000. The yield rate is 7% per year. At the present time the one-year forward rate for an investment made two years from now is 6.5%. Joe plans to buy amounts of each bond. He plans to reinvest the proceeds from Bond II in a one-year zero-coupon bond. Assuming the reinvestment earns the forward rate, calculate the total purchase price of Bond I and Bond II where the amounts are selected to exactly match the liabilities.
1. 2,584
2. 2,697
3. 2,801
4. 2,907
5. 3,000
Answer:
1. 2,584
Explanation:
future payments: $1,000 in 1 year and $2,000 in 3 years
the present value of alternative I (one year bond):
$1,000 / 1.06 = $943.40
the present value of alternative II (first 2 years and then 1 year):
$2,000 / 1.065 = $1,877.93 ⇒ PV at year 2
PV at year 0 = $1,877.93 / 1.07² = $1,640.26
the total present value of both options = $943.40 + $1,640.26 = $2,583.66 ≈ $2,584
Liabilities are settled over time through the transfer of economic benefits including money, goods, and services.
LiabilitiesLiability are some things someone or company owes, that's usually a sum of cash.
Now we calculate the whole price of Bond I and also Bond II.
The longer term payments is : $1,000 in 1 year and $2,000 in 3 years.
The present value of different I (one year bond): $[tex]1,000 / 1.06[/tex] = $[tex]943.40[/tex]
The present value of other II (first 2 years then 1 year): $[tex]2,000 / 1.065[/tex] = $[tex]1,877.93[/tex]⇒ PV at year 2PV at year 0 = $1,877.93 / 1.07² = $1,640.26
The total present value of both options = $943.40 + $1,640.26 = $[tex]2,583.66 ≈[/tex]$2,584
Thus, the correction option is (1.) 2,584.
Find out more information about Liabilities here:
brainly.com/question/17271329
ExxonMobil targets consumers that fill up their gas tanks more than once a week with its Chase Visa fuel card. Here, ExxonMobil is using which segmentation variable?
Answer:
Behavioral
Explanation:
Behavioral segmentation is a type of segmentation where consumers are divided into segments based on specific behaviours.
the behaviour with which consumers are been segmented with here are the type of credit cards used to fill up their gas tanks
Assume an economy in which there are three securities: Stock A with rA = 10% and σ A = 10%; Stock B with rB = 15% and σ B = 20%; and a riskless asset with r RF = 7%. Stocks A and B are uncorrelated (rAB = 0). Which of the following statements is most correct?
A. The expected return on the investor's portfolio will probably have an expected return that is somewhat below 10%.
B. The expected return on the investor's portfolio will probably have an expected return that is somewhat above 15% and a standard deviation (SD) of approximately 20%.
C. Since the two stocks have a zero correlation coefficient, the investor can form a riskless portfolio whose expected return is in the range of 10% to 15%.
D. The investor's risk/return indifference curve will be tangent to the CML at a point where the expected return is in the range of 7% to 10%.
E. The expected return on the investor's portfolio will probably have an expected return that is somewhat below 15% and a standard deviation (SD) that is between 10% and 20%.
Answer: E. The expected return on the investor's portfolio will probably have an expected return that is somewhat below 15% and a standard deviation (SD) that is between 10% and 20%.
Explanation:
Out of the three securities, the highest return that can be received is 15%. It will therefore be impossible for the entire portfolio to go past 15% in returns because even if a 100% of the portfolio is invested in stock B (Stock with 15%), the highest return will be 15%. With other returns stock added, the return will decrease from the highest return receivable so will be under 15%.
The same logic applies for the standard deviation. The highest standard deviation is 20% so the deviation will not exceed this but it will be lower than this due to the presence of less risky stocks in A and the the riskless asset.
Employees earn vacation pay at the rate of one day per month. During the month of July, 19 employees qualify for one vacation day each. Their average daily wage is $94 per day. What is the amount of vacation benefit expense to be recorded for the month of July
Answer:
$1,786
Explanation:
Calculation for the amount of vacation benefit expense to be recorded for the month of July
Using this formula
Vacation beneift expenses= Numbers of qualified employees ×Average daily wage
Let plug in the formula
Vacation benefit expenses =19×$94
Vacation benefit expenses =$1,786
Therefore the amount of vacation benefit expense to be recorded for the month of July will be $1,786
If two firms producing substitutes agree to fix prices, then their prices will 1.____________ . If two firms producing complements agree to fix prices, then their prices will 2.____________ .
Answer: increase; decrease.
Explanation:
Price fixing is a situation that occurs when two companies come together and form an agreement whereby the price of a particular goods or services will not be sold below that particular price.
When two firms producing substitutes agree to fix prices, then their prices will increase and when two firms that are producing complements fix prices, then their prices will reduce.
Reporting the details of notes is consistent with which accounting principle that requires financial statements (including footnotes) to report all relevant information?
a. Relevance
b. Full disclosure
c. Evaluation
d. Materiality
e. Matching
Answer:
The correct answer is Option B.
Explanation:
The full disclosure principle is a concept that requires all necessary details relating to the notes to the financial statements are provided and explained in such a way that would be understandable to the users of the financial statements.
The disclosures are expected to be in compliance with the accounting standards, regulatory pronouncements, among others.
In your opinion, does having two different existing labor federations (AFL-CIO and Change to Win) strengthen or weaken the ability of organized labor to represent the interests of employees today? Support your position.
Answer:
They weaken their ability to represent the interests of employees
Explanation:
The two organizations American Federation of Labor(AFL) and Congress of Industrial organizations(CIO) work differently regarding their approach to representing labor or employees. They have had disagreements in the past, from CIO breaking out of AFL to some violent exchanges and differing policies to representing labour. These differences make it less effective to represent employees as these unions are not entirely unified.
On April 1, 2020, Sydney Company issued 300 $1,000 bonds at 98. Each bond was issued with two detachable stock warrants. Shortly after issuance, the bonds were selling at 95, and the warrants were selling for $55 each.
Instructions:
Prepare the entry to record the issuance of the bonds and warrants.
Answer:
Please refer to the below for explanation
Explanation:
Total face value of bond issue
= 300 × $1,000
= 300,000
Bond proceeds
= 300,000 × 0.98
= $294,000
Market value of the bond
= 300,000 × 0.95
= $285,000
Market value of the warrant
= 300,000 × $55
= 316,500
Allocation for market value bonus
= Market value rotation × lump sum
= 285,000/300,000 × 316,500
= 300,675
Market value warrant
= (316,500 - 300,000)/300,000 × 316,500
= 15,640
Total market value
= 300,675 + 15,640
= 316,315
Journal entries
April 1, 2020 Cash Dr 300,675
To Discount 675
To B/P 300,000
Cash Dr 15,740
To PIC - STK warrant 15,640
Consider a team that you are familiar with - either by being a member of the team, a team leader, or a bystander. What were the team's goals?
Answer:
• To ensure that there is no income leakage whatsoever
• Ensure that there is no customer complaint made to the company's executives
• Early closure not later than 5pm daily, Monday to Friday
• Ensure customer survey ratings of at least 8.0
• Drive paperless environment.
• Daily reconciliation of the bank's transit accounts.
Explanation:
I used to belong to a team called settlement and reconciliation , which is under operations support, business banking in one of the top financial institution.
The goals are as listed above. For instance as a settlement and reconciliation team, you must ensure accurate settlement of all merchants such that none would receive excess settlement s which could deplete the bank's income. Also, there must be no customer complaint escalated to the bank's executives hence team must promptly resolve all queries and complaint.
Another goal is to drive early closure. No member of staff must remain in the office after 5pm unless permission is obtained to deal urgent transaction. Each year, the bank conducts internal survey among departments to know how well we treat our internal and external stakeholders. The least score approved for my team is 8.0 out of 10 , which must be met.
Again, one of the goals of the bank is paperless drive which was included in each team or unit's goals. We support the drive for paperless transactions by suggesting means to consummate transactions without printing. We must also ensure daily and timely reconciliation of all our transit accounts in order to ensure that no idle fund is sitting in there.
At the end of the first year of operations, Mayberry Advertising had accounts receivable of $21,200. Management of the company estimates that 9% of the accounts will not be collected. What adjustment would Mayberry Advertising record for Allowance for Uncollectible Accounts
Answer: Credit Allowance for Uncollectible Accounts $1,908
Explanation:
The Allowance for Uncollectible Accounts is an account where an estimate of receivables that may not be received is recorded. It is the result of companies being proactive in collection management so as not to overstate assets because there will always be a risk of customers defaulting.
The allowance/estimate is made by the company and then reduced from the Receivables account. That amount removed is credited to the Allowance for Uncollectible Accounts.
= 21,200 * 9%
= $1,908
Suppose you are Coca-Cola and you are competing with Pepsi-Cola. Both of you would make more money if you advertised less - but you find yourself in a repeated prisoner's dilemma where you both are deciding to advertise. How would you prefer to deal with your competitor
Available Options Are:
A. Be nice and don't advertise first.
B. If your competitor advertises do not escalate the situation, but do match their move
C. Wait to respond to your competitors actions.
D. Make sure your actions are clear to your competitor.
E. All of the above except 'c'.
Answer:
Option C. Wait to respond to your competitors actions.
Explanation:
The best way to respond to our customer would be by to wait to respond to Pesi-cola's actions. By doing so, we have option to take best advantage out of the position. Furthermore, it is in the best interest of both competitors to increase the revenue by not sepending huge amounts on advertising products. And this is only possible if both Coca-cola and Pepsi-cola not investing in marketing products. So the only option here that gicves this option is Statement C.
It can also help to design better strategy to take advantage of the competitor's strategy.
A foreign subsidiary of the Bart Corporation has certain balance sheet accounts on December 31, 20X2. Information relating to these accounts in U.S. dollars is as follows:_________.
Restated at Current Rates Historical Rates
-Marketable (AFS and Trading) securities $ 75,000 $ 85,000
-Inventories, carried at average cost 600,000 700,000
-Refundable deposits 25,000 30,000
-Goodwill 55,000 70,000
Total: $755,000 $885,000
What total should be included in Bart's balance sheet on December 31, 20X2, as a result of the preceding information?
Answer:
$885,000
Explanation:
How you are going to report the assets depends on whether you want to use the current rate method or the temporal (historic) method. Under the temporal method, you should use the historical rates, therefore, the total amount reported on the balance sheet is $885,000. if you want to use the current rate method, you should report the assets at $755,000, but you must also report an unrealized loss = $885,000 - $755,000 = $130,000 in the cumulative translation adjustment account. The total amount reported will not change, only the way you report it will change.
Montel Company’s July sales budget calls for sales of $630,000. The store expects to begin July with $63,000 of inventory and to end the month with $37,000 of inventory. Gross margin is typically 20% of sales. Determine the budgeted cost of merchandise purchases for July.
Answer:
Budgeted cost of merchandise purchases =$499,000
Explanation:
The expected units of a product that a business estimates to purchase given its sales budget and inventory is known as the purchases budget.
The purchases budget can bed determined by adjusting the sales budget for closing and opening inventories.
Purchases budget = Sales budget +closing inventory - opening inventory
Note that the sales was given in selling price terms while the inventories in cost terms, hence there is a need to work out the cost of the sales using the 20% margin
Cost of the sales = 100/120× 630,000 =$ 525000
Opening inventory =63,000
Closing inventory = 37,000
Budgeted cost of merchandise purchases:
= 525000 + 37,000 - 63,000= $499,000
Budgeted cost of merchandise purchases =$499,000
According to the Uniform Prudent Investors Act , it is NOT a breach of fiduciary duty if investment advisers do not inquire into a client's A) investment objectives B) specific financial needs C) Social Security or tax ID number D) financial situation
Answer: C) Social Security or tax ID number
Explanation:
The Uniform Prudent Investors Act lists guidelines to be followed by investment advisers and trustees when they invest assets. The guiding principle of this Act is the Prudent Man Rule which is that when investing, the investor should invest like a Prudent person would invest their assets.
As such, an investor should be sure to find out some details about the client to enable them better recommend an investment trajectory. Details such as their specific financial needs, their investment objectives and their financial situation will enable the advisers better know what investment strategies and vehicles to use and therefore not inquiring about them would be a breach of fiduciary duty.
Knowing about a client's Social Security or tax ID number will not help the adviser chart an investment course better so does not need to be known.
On February 1, 2021, a company loans one of its employees $29,000 and accepts a ten-month, 8% note receivable. Calculate the amount of interest revenue the company will recognize in 2021
Answer:
Calculation of interest revenue:
Interest revenue = $29,000 x 8% x 10/12 = $1,933
Explanation:
a) Data and Calculation:
Feb. 1, 2021 Loan to employees = $29,000
Ten-month, 8% note receivable
Interest revenue = $29,000 x 8% x 10/12 = $1,933
The note is for 10 months, but the rate of interest is 8% per annum. After the rate is applied on the loan to get an interest of $2,320, this will then be multiplied by 10 and divided by 12 to get the 10 months interest revenue. These loans to employees are expected to be repaid by the end of November, 2021 with the interest.
A put option gives its owners the right, but not the obligation, to: buy a commodity at a specified price and future date, at which time physical delivery occurs. sell a commodity at a specified price and future date, but physical delivery does not occur. sell a specified number of shares at a certain price within a specified period of time. buy a specified number of shares at a certain price within a specified period of time.
Answer:
sell a specified number of shares at a certain price within a specified period of time.
Explanation:
A put option is a contract in which there is a right given to an owner but its not an obligation for selling a particular number of shares at a specific price within a time period set. Here specific price we called as predetermined price where the option put the buyer to sell at the strike price
Hence, the third option is correct
Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are forecasted at 45,000 for January, 55,000 for February, and 50,000 for March. Cost of goods sold is $14 per unit. Other expense information for the first quarter follows.
Commissions....8% of sales
Rent....$14,000 per month
Advertising....15% of sales
Office salaries....$75,000 per month
Depreciation....$40,000 per month
Interest....15% annually on a $250,000 note payable
tax rate....30%
Prepare a budgeted income statement for this first quarter.
Answer:
Fortune, Inc.
Budgeted Income Statement
For the first quarter, 202x
January February March Total
Sales revenue $1,125,000 $1,375,000 $1,250,000 $3,750,000
Cost of goods sold $630,000 $770,000 $700,000 $2,100,000
Gross profit $495,000 $605,000 $550,000 $1,650,000
S&A expenses:
Rent $14,000 $14,000 $14,000 $42,000Office salaries $75,000 $75,000 $75,000 $225,000Sales comm. $90,000 $110,000 $100,000 $300,000Advertising $168,750 $206,250 $187,500 $562,500Depreciation $40,000 $40,000 $40,000 $120,000EBIT $107,250 $159,750 $133,500 $400,500
Income taxes $32,175 $47,925 $40,050 $120,150
Net income $75,075 $111,825 $93,450 $280,350
The table below shows a summary of Kaitlin's credit card statement for the month of February.
Transaction types Amount
Unpaid balance from January (Beginning balance on February 1) $2802.38
Purchases made during the month of February $543.55
Payments made during the month of February $389.60
Complete the parts below. Write your answer to the nearest cent. (a) Suppose the credit card company charges 1.9% monthly interest on the unpaid balance from January. How much interest will this be? (b) What will Kaitlin's unpaid balance be on her March 1 statement? (Assume that this balance will include the interest from part (a), but will not include any interest on her February balance yet.)
Answer:
A) 32 percent interest B) Yes it will be paid
Explanation:
23 times 42 divided by 7
Ansara Company had the following abbreviated income statement for the year ended December 31, 20Y2:_________.
(in millions)
Sales $21,920
Cost of goods sold $18,630
Selling, administrative, and other expenses 1,970
Total expenses $20,600
Income from operations $1,320
Assume that there were $4,820 million fixed manufacturing costs and $1,100 million fixed selling, administrative, and other costs for the year. The finished goods inventories at the beginning and end of the year from the balance sheet were as follows:________.
January 1 $2,630 million
December 31 $3,070 million
Assume that 30% of the beginning and ending inventory consists of fixed costs. Assume work in process and materials inventory were unchanged during the period.
a. Prepare an income statement according to the variable costing concept for Ansara Company for 20Y2.
Ansara Company
Variable Costing Income Statement
For the Year Ended December 31, 20Y2 (in millions)
Sales $ 21,920
Variable cost of goods sold:
Beginning inventory $ 1,841
Variable cost of goods manufactured 13,810
Ending inventory 2,149
Total variable cost of goods sold
Manufacturing margin $
Variable selling and administrative expenses 870
Contribution margin $
Fixed costs:
Fixed manufacturing costs $ 4,820
Fixed selling and administrative expenses 1,100
Total fixed costs 5,920
Income from operations $
b. Explain the difference between the amount of income from operations reported under the absorption costing and variable costing concepts.
The income from operations under the variable costing concept be the same as the income from operations under the absorption costing concept when the inventories either increase or decrease during the year. In this case, Ansara’s inventory , meaning it sold than it produced. As a result, the income from operations under the variable costing concept will be more than the income from operations under the absorption costing concept. The reason is because the variable costing concept deduct the fixed costs in the period that they are incurred, regardless of changes in inventory balances.
Answer:
Ansara Company
a. Ansara Company Variable Costing Income Statement
For the Year Ended December 31, 20Y2 (in millions)
Sales $ 21,920
Variable cost of goods sold:
Beginning inventory $ 1,841
Variable cost of goods manufactured 13,810
Ending inventory 2,149
Total variable cost of goods sold 17,800
Manufacturing margin $4,120
Variable selling and administrative expenses 870
Contribution margin $3,250
Fixed costs:
Fixed manufacturing costs $ 4,820
Fixed selling and administrative expenses 1,100
Total fixed costs 5,920
Income from operations $2,670
b. Explanation of the difference between the amount of income from operations reported under absorption costing and variable costing concepts:
The difference occurs as a result of cost of inventory at the beginning and at the end. Under variable costing concept, the fixed manufacturing costs does not form part of the product costs. They are treated as period costs. But under absorption costing, fixed manufacturing costs form part of the product costs.
Explanation:
a) Data:
Ansara Company Abbreviated Income Statement for the year ended December 31, 20Y2: (in millions):
Sales $21,920
Cost of goods sold $18,630
Gross profit $3,290
Selling, administrative, and
other expenses 1,970
Income from operations $1,320
b) Absorption costing concept is a costing technique that includes the full cost of manufacturing (i.e. cost of direct materials, direct labor, and all fixed production costs or overheads) in the product costs. Under variable costing concept, the full cost of manufacturing is not included in the product costs. Instead, all the variable costs (direct materials, direct labor, and variable overhead, whether factory or not) are included, while fixed manufacturing overheads are treated as period costs and expensed.
The following water and sewer fund information is available for the preparation of the financial statements
for the City of Western Sands for the year ended December 31, 2017:__________.
Operating revenues-charges for services .................. $18,087,000
Operating expenses:
Personnel services ...................................................... 6,177,000
Contractual services .................................................... 2,995,000
Utilities ..........................................................................888,000
Repairs and maintenance ............................................1,992,000
Depreciation .................................................................5,422,000
Interest revenue ...........................................................29,000
State aid (intergovernmental revenue) .........................100,000
Interest expense ............................................................434,000
Capital contributions .....................................................1,632,000
Transfer to General Fund ..............................................365,000
Net position, January 1, 2017 ........................................2,700,000
From the information given above, prepare, in good form, a Water and Sewer Fund column for the proprietary fund Statement of Revenues, Expenses, and Changes in Fund Net Position for the year ended December 31, 2017.
Answer and Explanation:
The Preparation of water and sewer fund Statement of Revenues, Expenses, and Changes in Fund Net Position for the year ended December 31, 2017 is shown below:-
Water and Sewer fund
Statement of Revenues, Expenses,
and Changes in Fund Net Position
for the year ended December 31, 2017
Particulars Amount
Operating revenue - Charges for
services $18,087,000
Operating expenses
Personal services $6,177,000
Contractual services $2,995,000
Utilities $888,000
Repair and Maintenance $1,992,000
Depreciation $5,422,000
Total operating expenses $17,474,000
Operating income $613,000
Non operating revenues
Interest revenue $29,000
Interest expenses ($434,000)
State aid $100,000
Total of non operation revenue ($305,000)
Capital contribution $1,632,000
Transfer to general fund ($365,000)
Change in net assets $1,575,000
Jan 1 Net assets $2,700,000
Dec 31 Net assets $4,275,000
We simply deduct all expenses from revenue to arrive ending net assets
Chimney Sweeps provided chimney cleaning services to several clients during the month of February. Chimney's customers have not yet been billed. Chimney's customers owe $2,000 to Chimney. How will Chimney Sweeps record this transaction?
Answer:
The Answer is explained below
Explanation:
As chimney has provided clearing services to several clients and have not yet been billed Chimney will debit the accounts receivable with $2,000 and will credit the Services revenue by $2,000.
Entry DEBIT CREDIT
Account Receivable $2,000
Services Revenue $2,000
Q 7.34: At the end of a shift, the sales clerk turned over $21,476.38 in cash, checks, and credit card receipts to the cashier. When the supervisor looked at the cash register tape for that shift, the tape stated that the sales clerk had sold $21,478.23 in merchandise. What should the company do as a result of this difference
Answer:
A cash shortage of $1.85 has occurred. The sales clerk must have taken away more in tips than she should.
The company can ask the sales clerk to refund the sum of $1.85 shortage provided it allows the sales clerk also to take away overages. If not, the shortage can be taken from the overtages, if any.
Explanation:
In handling cash, shortages and overages occur. The best policy is to prevent such shortfall and excess in cash handling as they can lead to other problems. But, where the shortages and overages are tolerable, the company should accommodate them by creating clear company policies about the issues. Policies provide guides to employees so that they know what they are ordinarily expected to do.
On February 12, Travis Company purchased merchandise on account from a supplier for $10,300. terms 2/10, net 30.
On February 14. Travis returned $1,550 of the merchandise purchased.
On February 17, Travis Company paid for the merchandise.
Assume Travis Company is using the periodic inventory system, record the journal entries required for the above transactions.
Answer:
February 12
Dr Merchandise Inventory 10,300
Cr Accounts Payabe 10,300
February 14
Dr Accounts Payable 1,550
Cr Merchandise Inventory 1,550
February 17
Dr Accounts Payable 8,750
Cr Cash 8,575
Cr Merchandise Inventory 175
Explanation:
Preparation of the Journal entries for Travis Company using periodic inventory system
A. Based on the information given we were told that the company purchased merchandise on account from a supplier for the amount of $10,300 this means that the transaction will be recorded as:
February 12
Dr Merchandise Inventory 10,300
Cr Accounts Payabe 10,300
B. Since the company returned the amount of $1,550 of the merchandise purchased this means that the transaction will be recorded as:
February 14
Dr Accounts Payable 1,550
Cr Merchandise Inventory 1,550
C. Based on the information given we were told that the company paid for the merchandise, this means that the transaction will be recorded as:
February 17
Dr Accounts Payable 8,750
(10,300-1,550)
Cr Cash 8,575
(98%*8,750)
Cr Merchandise Inventory 175
(2%*8,750)