Answer:
the net income would be $33,340
Explanation:
The computation of adjusted net income is shown below:
= Net income - office supplies used + service performed for clients - interest accrued to bank
- $37,000 - $3,060 + $2,940 - $3,540
= $33,340
Hence, the net income would be $33,340
Question 12 of 40
What type of producer is a construction worker?
O A. A manufacturer
B. A raw-goods producer
C. A builder
D. A service provider
SUBMIT
Answer:
a builder
Explanation:
A builder is a type of producer is a construction worker. The appropriate response is option C.
Who is a producer ?Producers are those who cultivate or produce commodities as well as offer services. They assist us in carrying out tasks and are referred to as workers at times. A producer is a type of economic entity that creates or markets products or services. they are the organizations that provide for the economy.
These companies or people create an output by utilizing and integrating the factors of production (land, labor, capital, and technology). The supply side of the marketplace is represented by this production.
Producers are defined even more broadly in certain economics schools and theories, to include federal, state, local, entities. A productive workforce is necessary for an economy to run smoothly.
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Activity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8 per guest check-in, $25 per room cleaning, and $4 per served meal (not including food). Ginny Campbell visited the hotel for a three-night stay. Campbell had three meals in the hotel during her visit. Determine the total activity-based cost for Campbell's visit. $
Answer:
Total allocated costs= $95
Explanation:
To allocate costs to the Campbell visit, we need to use the following formula:
Allocated costs= Estimated activity rate * Actual amount of allocation base
guest check-in= 8
room cleaning= 25*3= 75
served meal= 4*3= 12
Total allocated costs= $95
The following information is available for completed Job No. 402:
Direct materials $170000
Direct labor $230000
Manufacturing overhead applied $160000
Units produced 8000 units
Units sold 6000 units.
The cost of the finished goods on hand from this job is:________
a. $420000.
b. $140000.
c. $560000.
d. $100000.
Answer:
b. $140000.
Explanation:
We know that
cost of finished goods in stock= (total production cost ÷ number of units produced)×number of units unsold
= [(170000+230000+160000)/8000]*(8000-6000)
= $140000
Option b) is the correct answer
To complete your degree and then go through graduate school, you will need $95,000 at end of each of the next 8 years. Your Aunt offered to put you through school, and she will deposit in a bank paying 4.00% interest a sum of money that is sufficient to provide you with the needed 8 withdrawals of $95,000 each.
Required:
a. How large of a deposit must she make today?
b. How much will be in the account immediately after you make the 3rd $95,000 withdrawal?
c. How much will be in the account immediately after you make all the withdrawals including the last one in 8 years?
d. Now, if you decide to drop out of school today and not make any of the withdrawal, but instead keep your auntâs money, that she deposited today, in the account that is earning 4.00%, how much would you have at the end of 8 years?
Answer:
PMT = $95,000
Rate = 4%
Life = 8 years
a. Amount to be deposited today
= PV(Rate, N, -PMT)
= PV(4%, 8, -95,000)
= $639,610.76
b. Amount in account after 3rd withdrawal
= PV(Rate, N, -PMT)
= PV(4%, 5, -95,000)
= $422,913.12
c. Balance in account after 8th withdrawal
= = PV(Rate, N, -PMT)
= PV(4%, 0, -95,000)
= $0
d. How much would you have at the end of 8 years?
= FV(4%, 8, -639610.76)
= $875,351.49
Suppose there are 500 identical vendors selling T-shirts at an Ozzie Osborneconcert in State College. All vendors pay $5 dollars per T-shirt to their supplierand $20 for the right to sell at the concert. Vendors have no other costs. Atthe end of the day, you (the concert organizer) observe that each vendor sold20 T-shirts and that the price of a T-shirt was $6.00. Is this a perfectly competitive market? Explain
Answer:
yes
It is a perfect competition for the following reasons
It is a perfect competition because there are many sellers
Each seller sells at identical prices
The goods sold is homogenous . All the shirts are the same
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
A student has received a $30,000 loan from a wealthy aunt in order to finance his four-year college program. The terms are that the student repay his aunt in full at the end of eight years with simple interest computed at the rate of 4 percent per year. Determine the interest that must be paid on the eight-year loan. Don't forget to include units
Answer:
$9,600
Explanation:
Loan received (Principal) = $30,000
SI Rate = 4%
Time Period = 8 years
Simple Interest = ?
SI = PRT / 100
SI = $30,000 * 4/100 * 8
SI = $9,600
So, the student must pay $9,600 as interest on the eight-year loan
The interest that must be paid on the eight-year loan is $9,600
Given the information below:
Loan received (Principal) = $30,000
SI Rate = 4%
Time Period = 8 years
Simple Interest = ?
We know that simple interest(SI) is computed as :
SI = Principal * Rate * Time / 100
SI = PRT / 100
SI = $30,000 * 4 / 100 * 8
SI = $9,600
Hence, the student must pay $9,600 as interest on the eight-year loan.
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How Much Capital Do You Need to Start Investing?
The motivation for making investments is largely driven by the goals you have. These goals could be short-term such as buying a new car, saving for a down payment or save enough to take a year off and travel. In any situation, the first step is to identifying the amount of capital you need and how much risk are you willing to take for the return you expect.
Jake is a 25-year-old financial consultant whose primary long-term financial goal is to save enough money to comfortably retire. Therefore, he wants to begin an investment plan that will make this a reality within 40 years. He currently has $10,000 saved for this purpose, and he wants to determine the appropriate monthly savings amount that will allow him to reach his goal. He estimates that he can earn an average annual return of 10%, and he would like to save a total of $500,000.
Table of Future Value Factors Table of Future Value Annuity Factors
Year 2% 5% 8% 10% Year 2% 5% 8% 10%
1 1.020 1.050 1.080 1.100 1 1.000 1.000 1.000 1.000
5 1.104 1.276 1.469 1.611 5 5.204 5.526 5.867 6.105
10 1.219 1.629 2.159 2.594 10 10.950 12.578 14.487 15.937
40 2.208 7.040 21.724 45.258 40 60.401 120.797 259.052 442.580
If he invests the $10,000 today, the terminal value of this initial investment in 40 years (earning an average 10% return) will be. This means that he must accumulate the remainingthrough his annual savings plan to obtain the full $500,000. Still assuming an average return on investment of 10%, the additional yearly investment required to reach Shen’s targeted financial goal within 40 years is .
Suppose instead that Jake had no capital saved and thus needed to accumulate the entire $500,000 in the next 40 years. In this case, his annual contribution would have to be___.
When Jake starts with an initial investment of $10,000, the total amount that he ends up contributing to accumulate $500,000 is equal to the initial investment plus the additional yearly payments, for a total of____.
When he starts with no initial capital contribution, the amount he ends up contributing is equal to the sum of all annual contributions you calculated in the no-initial-capital scenario, for a total of___
Once Jake has determined the annual amount he needs to save, the next step toward achieving his goal is coming up with an investment plan.
The appropriate investment plan depends on the investment objective.
A. True
B. False
Answer:
How Much Capital Do You Need to Start Investing?
Jake
If he invests the $10,000 today, the terminal value of this initial investment in 40 years (earning an average 10% return) will be $452,580. This means that he must accumulate the remaining through his annual savings plan to obtain the full $500,000. Still assuming an average return on investment of 10%, the additional yearly investment required to reach Shen’s targeted financial goal within 40 years is $107.11.
Suppose instead that Jake had no capital saved and thus needed to accumulate the entire $500,000 in the next 40 years. In this case, his annual contribution would have to be_$1,129.71__.
When Jake starts with an initial investment of $10,000, the total amount that he ends up contributing to accumulate $500,000 is equal to the initial investment plus the additional yearly payments, for a total of_$14,285___.
When he starts with no initial capital contribution, the amount he ends up contributing is equal to the sum of all annual contributions you calculated in the no-initial-capital scenario, for a total of_$45,188__
Once Jake has determined the annual amount he needs to save, the next step toward achieving his goal is coming up with an investment plan.
The appropriate investment plan depends on the investment objective.
A. True
Explanation:
a) Data and Calculations:
Age of Jake now = 25
Age of Jake at retirement = 65 (25 + 40)
Retirement savings = $10,000
Expected total savings = $500,000
Period of savings = 40 years
Relevant Future Value Factor = 45.258 (40 years at 10% compounded annually)
With the initial retirement savings of $10,000
Jake must Save Every Year Until 65
Amount to Save Every Year: $107.11
Total Principal: $14,285
Total Interest: $485,715
Without the initial retirement savings of $10,000
Jake must Save Every Year Until 65
Amount to Save Every Year: $1,129.71
Total Principal: $45,188
Total Interest: $454,812
The terminal value of $10,000 in 40 years at 10% interest is:
= $10,000 * 45.258 = $452,580
Balance to save = $500,000 = $452,580 = $47,420
If social returns to the production of a good are less than private returns, then we can conclude that relative to the social optimum, the good will be Group of answer choices overproduced and overpriced. overproduced and underpriced. underproduced and underpriced. None of these answers are correct underproduced and overpriced.
Answer:
overproduced and under-priced.
Explanation:
If social returns to the production of a good are less than private returns, the good generates negative externality
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Break-Even Sales Under Present and Proposed Conditions
Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $189 per unit during the current year. Its income statement is as follows:
Sales $189,000,000
Cost of goods sold (101,000,000)
Gross profit $88,000,000
Expenses:
Selling expenses $16,000,000
Administrative expenses 12,600,000
Total expenses (28,600,000)
Operating income $59,400,000
The division of costs between Costs that vary in total dollar amount as the level of activity changes.variable and Costs that tend to remain the same in amount, regardless of variations in the level of activity.fixed is as follows:
Variable Fixed
Cost of goods sold 70% 30%
Selling expenses 75% 25%
Administrative expenses 50% 50%
Management is considering a plant expansion program for the following year that will permit an increase of $13,230,000 in yearly sales. The expansion will increase fixed costs by $4,500,000 but will not affect the relationship between sales and variable costs.
Required:
1. Determine the total variable costs and the total fixed costs for the current year.
Total variable costs $
Total fixed costs $
2. Determine (a) the unit variable cost and (b) the The dollars available from each unit of sales to cover fixed costs and provide operating profits.unit contribution margin for the current year.
Unit variable cost $
Unit contribution margin $
3. Compute the break-even sales (units) for the current year.
units
4. Compute the break-even sales (units) under the proposed program for the following year.
units
5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $59,400,000 of operating income that was earned in the current year.
units
6. Determine the maximum operating income possible with the expanded plant.
$
7. If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year?
$ Income
Loss
Answer:
Portmann Company1. Total variable costs = $89,000,000
Total fixed costs = $40,600,000
2. a Unit variable cost = $89
b. Unit contribution margin = $100
3. Break-even sales (units) = Fixed cost/Contribution margin per unit
= $40,600,000/$100
= 406,000 units
4. Break-even sales (units) = Fixed cost/Contribution margin per unit
= $45,100,000/$100
= 451,000 units
5. Break-even sales (units) to achieve target profit = (Fixed cost + Target Profit)/Contribution margin per unit
= ($45,100,000 + $59,400,000)/$100
= 1,045,000 units
6. Maximum operating income possible with the expanded plant is:
= $61,900,000
7. Operating income if the proposal is accepted and sales remain at the current level is:
= $54,900,000
Explanation:
a) Data and Calculations:
Sales volume during current year = 1,000,000
Sales price per unit during current year = $189
Income statement is as follows:
Sales $189,000,000
Cost of goods sold (101,000,000)
Gross profit $88,000,000
Expenses:
Selling expenses $16,000,000
Administrative expenses 12,600,000
Total expenses (28,600,000)
Operating income $59,400,000
Variable Fixed
Cost of goods sold 70% 30%
Selling expenses 75% 25%
Administrative expenses 50% 50%
Total variable costs for the current year:
Variable
Cost of goods sold 70% * $101,000,000 = $70,700,000
Selling expenses 75% * $16,000,000 = 12,000,000
Administrative expenses 50% * $12,600,000 = 6,300,000
Total variable costs = $89,000,000
Variable unit cost = $89 ($89,000,000/1,000,000)
Contribution per unit = $100 ($189 - $89)
Total fixed costs for the current year:
Fixed
Cost of goods sold 30% * $101,000,000 = $30,300,000
Selling expenses 25% * $16,000,000 = 4,000,000
Administrative expenses 50% * $12,600,000 = 6,300,000
Total fixed costs = $40,600,000
Projected sales for the next year = $202,230,000 ($189,000,000 + $13,230,000)
Percentage Increase in sales for the next year = $13,250,000/$189,000,000 * 100 = 7%
Fixed costs caused by expansion = $4,500,000
Total fixed costs = $45,100,000 ($40,600,000 + $4,500,000)
Variable costs = $95,230,000 ($89,000,000 * 1.07)
Contribution margin:
Sales $202,230,000
Variable costs 95,230,000
Contribution margin $107,000,000
Expenses:
Fixed costs 45,100,000
Operating income $61,900,000
Sales volume = 1,070,000 units (1,000,000 * 1.07)
Contribution per unit = $107,000,000/1,070,000 = $100
Sales at current level:
Sales $189,000,000
Variable costs 89,000,000
Contribution $100,000,000
Fixed costs 45,100,000
Operating income $54,900,000
Shear, Inc., began operations in Year 1. Included in Shear’s Year 1 financial statements were credit loss expenses on accounts receivable of $1,400 and profit from an installment sale of $2,600. For tax purposes, the credit losses will be deducted and the profit from the installment sale will be recognized in Year 2. The applicable tax rate is 25%. In its Year 1 income statement, what amount should Shear report as deferred income tax expense?
Answer:
$300
Explanation:
Calculation for what amount should Shear report as deferred income tax expense
Using this formula
Deferred income tax expense=(installment sale Profit-Loss expenses on accounts receivable)*Tax rate
Let plug in the formula
Deferred income tax expense=(2,600-1,400)*25%
Deferred income tax expense=1,200*25%
Deferred income tax expense=$300
Therefore the amount that Shear should report as deferred income tax expense will be $300
Riley Incorporated reports the following amounts at the end of the year (all amounts in $000):
Cash $16,140
Product Revenues $112,500
Depreciation Expense 3,210
Mortgage Payable 38,000
Taxes Payable 1,020
Treasury Stock 650
Buildings 79,000
Salaries 62,800
Land 40,000
Accumulated Depreciation 21,730
Current Portion - Notes and Mortgage Payable 2,200
Accounts Payable 18,500
Equipment 42,000
Net Accounts Receivable 23,500
Income Tax Expense 3,650
Discounts on Notes Payable 7,950
Interest Expense 4,000
Inventory 6,400
Notes Payable 25,650
Costs of Goods Sold 17,400
Utilities 350
License Revenues 250
Advertising Expense 11,300
Short Term Investments (Securities) 2,500
Prepaid Expense 900
Wages Payable 3,200
In addition, the company had common stock of $75,000 at the beginning of the year and issued an additional $5,000 during the year. The company also had retained earnings of $20,700 at the beginning of the year and declared/paid dividends of $2,000 during the year. Prepare the income statement, statement of stockholders’ equity, and balance sheet.
Answer and Explanation:
The presentation of the financial statement is as follows:
Income Statement
Revenues
Product revenues $112,500
License Revenues $250
Total Revenues (A) $112,750
Expenses
Salaries $62,800
Discount on Notes Payable $7,950
Interest expense $4,000
Depreciation expenses $3,210
Income Tax Expenses $3,650
Cost of Goods Sold $17,400
Utilities $350
Advertising Expenses $11,300
Total Expenses (B) $110,660
Net Income (A-B) $2,090
Stockholders’ Equity
Statement of Stockholder's Equity
Particulars Common Stock Retained Earning
Opening Balance $75,000 $20,700
Add: Issue $5,000
Add: Net Income $2,090
Less: Dividend ($2000)
Closing Balance $80,000 $20,790
Balance Sheet
A. Stockholder's Equity
Common Stock $80,000
Retained Earning $20,790
Treasury Stock (650)
Total $100,140
B. Liabilities
Mortgage Payable $38,000
Taxes Payable $1,020
Notes & Mortgage payable $2,200
Accounts payable $18,500
Notes Payable $25,650
Wages Payable $3,200
Total liabilities $88,570
Total Stockholders' Equity and Liabilities $188,710
C. Assets
Equipment $42,000
Building $79,000
Land $40,000
Accumulated Depreciation (21730)
Net Accounts Receivables $23,500
Cash $16,140
Inventory $6,400
Short Term Investments $2,500
Prepaid Expense $900
Total Assets $188,710
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Shaila wants to add new tabs to her PowerPoint. She selects New Tab and renames it. She then starts adding the
terms Bring Forward and Bring to Front into her group. Shaila most likely chose her commands from
O commands not found in the Ribbon.
popular commands.
O custom tabs and groups.
O main tabs.
Answer:
Popular Commands.
Explanation:
To creat a new tab on Microsoft Powerpoint, , Popular command is the set of command that will be make available for the user, this popular command are composed of those action needed when making a presentation such as bring forward,Animation Commands,. Bring to Front and others.
Consider an economy in which every inhabitant described is unique; no one fits into more than one category. All inhabitants are working-age adults. 3150 people work full-time 2400 people work part-time 400 people aren't working, but are actively looking for jobs on a weekly basis 220 people aren't working, nor are they looking (140 of these used to look, but gave up over a year ago) Calculate the labor force for this economy. Be sure to follow all formatting instructions from the assignment directions.
Answer: 5,950 people
Explanation:
The labor force in a country refers to the number of both employed and unemployed in an economy. Unemployed people by definition are those actively seeking employment which means that discouraged workers and those who are not seeking employment are not included.
Labor force = Working full time + Part time workers + Unemployed
= 3,150 + 2,400 + 400
= 5,950 people
t the end of the current year, the following information is available for both Pulaski Company and Scott Company. Pulaski Company Scott Company Total assets $ 2,276,500 $ 1,145,500 Total liabilities 882,500 576,500 Total equity 1,394,000 569,000 Required: 1. Compute the debt-to-equity ratios for both companies. 2. Which company has the riskier financing structure?
Answer:
0.63
1.01
Scott company
Explanation:
Debt to equity ratio is an example of solvency ratio.
Solvency ratios measure a firms ability to honour its long term financial obligation
The higher the debt to equity ratio, the higher the financial risk and the weaker solvency is
Debt to equity ratio = total liabilities to equity ratio
Pulaski Company : 882,500 / 1,394,000 = 0.63
Scott company : 576,500 / 569,000 = 1.01
Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year were 54,300. The actual factory overhead for the year was $1,348,800.
a. Determine the total factory overhead amount applied.
b. Calculate the over or underapplied amount for the year.
Solution :
a).
Estimated overhead 1,250,000
Divide by the estimated machine hours 50,000
Predetermined overhead rate 25
Actual machine hours 54,300
Multiply by predetermined overhead rate 25
The factory overhead amount applied $ 1,357,500
b).
Actual factory overhead 1,348,800
Less : factory overhead amount applied 1,357,500
The underapplied amount is $ 8700
You are the executive director of a nonprofit that runs an animal shelter and animal services, such as low-cost spay/neuter programs. Your biggest donor, a local foundation, has just withdrawn funding, saying that it has refocused its mission on supporting arts programs and your activities do not align with that. Unless other funding can be found, and soon, the shelter building will need to be closed, paid staff laid off, and most animals turned over to other, already crowded shelters. Your employees and volunteers are very worried and are looking to you for leadership.
Which of the following do you do? Check all that apply.
a. Withhold information about the organizationâs financial picture so that employees continue to be loyal rather than looking for other jobs.
b. Hold meetings with employees, volunteers, and representatives of other local shelters and listen carefully as they brainstorm ideas.
c. Honestly acknowledge the challenges the organization faces while also communicating optimism about finding the resources to fulfill your mission.
d. Stay in your office as much as possible so people know youâre hard at work, and when you do walk around, keep a "poker face" on so no one gets the idea that things are worse or better than they are.
Answer:
Providing leadership in critical times:
b. Hold meetings with employees, volunteers, and representatives of other local shelters and listen carefully as they brainstorm ideas.
c. Honestly acknowledge the challenges the organization faces while also communicating optimism about finding the resources to fulfill your mission.
Explanation:
A leader assumes responsibility for clear communication with all stakeholders and must be forthcoming with necessary information. She must also be transparent and innovative. A leader collaborates with her team to find better solutions to challenges facing the organization. A good leader is a good negotiator and must remain optimistic amid the challenges of life.
List the name of the inventory method that best fits the description. Assume that the cost of inventory is rising.
_________Maximizes reported income
_________ Used to account for automobiles, jewelry, and art objects
_________Results in a cost of ending inventory that is close to the current cost of replacing the inventory
_________Generally associated with saving income taxes
_________Enables a company to buy high-cost inventory at year-end and thereby decrease reported income and income tax
_________Results in an old measure of the cost of ending inventory
_________Provides a middle-ground measure of ending inventory and cost of goods sold
_________Enables a company to keep reported income from dropping lower by liquidating older layers of inventory
_________Writes inventory down when current replacement cost drops below historical cost
_________Matches the most current cost of goods sold against sales revenue
Answer:
Inventory is the complete list of the items or the list of stock such as goods, properties, etc.
Explanation:
Inventory are defined as the stock of the goods and the materials that the business holds in order to ultimate goal of a resale. Inventory management is the discipline that is primarily about specifying shape and the placement of the stocked goods. There are various inventory methods. FIFO as well as LIFO are the important inventory methods.
The full form of FIFO is first in first out while the full form of LIFO is last in first out.
LIFO -- it maximizes the reported income.
Specific unit cost -- they are used for account of the automobiles, art objects and jewelries.
FIFO -- it results in the cost of the ending inventory which is close to current cost of the replacing inventory.
LIFO -- it generally associated with the savings income taxes.
LIFO -- it enables the company to buy a high cost inventory method at the year end.
LIFO -- it results old measure of a cost ending inventory.
Average cost -- it provides the middle ground measure of the ending inventory and also the cost of the goods sold.
FIFO -- it enables the company in order to keep the reported income from the dropping lower by the liquidating of the older layers of the inventory.
applies to all the four methods -- writes the inventory down when the current replacement cost drops to the below historical costs.
LIFO -- it matches the current cost of the goods that are sold against the sales revenue.
A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $12 per hour and capital is rented at $8 per hour. Currently, the marginal product of labor is 60 units of output per hour and the marginal product of capital is 45 units of output per hour is the firm using the cost minimizing combination of labor and capital? If not, should the firm increase or decrease the amount of capital used in its production process?
Answer:
Explanation:
According to the rule of cost minimization, a firm should should employ that quantity f labor and capital for which the marginal rate of technical substitution between capital and labor (MRTSkl) equals the wage rental ratio (w/r). Hence, the cost minimization rules becomes:
(MRTSkl) = w/r
MPl / MPk = w / r
MPl / w = MPk / r
In the case given, substitute the values of the variables and find that
MPl / w = MPk / r
60 / 12 < 45 / 8
5 < 5.625
Since the ratio is not equal, the firm is not using the optimum mix of inputs. On last dollar spent basis, capital is a better deal than labor, and the firm should use less labor and increase the amount of capital in order to minimize costs.
Adjustment for Unearned RevenueOn June 1, 20Y2, Herbal Co. received $42,890 for the rent of land for 12 months.Journalize the adjusting entry required for unearned rent on December 31, 20Y2. Round your answers to the nearest dollar amount. If an amount box does not require an entry, leave it _______.
Answer:
Dr unearned rent $25,019
Cr rental income $25,019
Explanation:
The cash received on June 1 20Y2 for 12 months rent would have been debited cash while the unearned rent account would have been debited with the same amount.
As of December 31, 20Y2, the rent of 7-month(June-December) have now been earned and adjusted as follows:
earned rent for 7 months=$42,890*7/12=$25,019
The earned rental income would be debited to unearned rent and credit to rental income
Testbank Multiple Choice Question 145 Sheffield Corp. had 330 units of product A on hand at January 1, 2020, costing $22 each. Purchases of product A during January were as follows: Date Units Unit Cost Jan. 10 410 $23 18 450 24 28 180 25 A physical count on January 31, 2020 shows 440 units of product A on hand. The cost of the inventory at January 31, 2020 under the LIFO method is $10740. $9790. $9490. $10190.
Answer:
$9790
Explanation:
LIFO means last in first out. It means it is the last purchased inventory that is the first to be sold.
If LIFO method is used, the reaming inventory would consist of the earliest purchased inventories.
If 440 units remain, they wold consist of beginning inventory and inventory purchased on 10th of January
(330 x $22) + [(440 - 330) x $23) = $9790
Imagine that your country takes in $100 million each year in tax money but chooses to spend $500 million on various services it provides. What type of stance does your country take on fiscal policy?
A.
expansionary stance
B.
contractionary stance
C.
economic stance
D.
neutral stance
For plato, Expansionary stance.
Expansionary stance is the type of stance does your country take on fiscal policy. Hence, option A is correct.
What is Expansionary stance?When government expenditure surpasses tax receipts, the fiscal attitude is said to be "expansionary" because this tends to increase aggregate demand. For instance, household spending will increase if income taxes are reduced by the government.
Governments engage in contractionary fiscal policy when they either cut spending or raise taxes. Its name alludes to the method by which the economy contracts. It limits the amount of money that both businesses and people can spend.
Contractionary policy is used to control inflation. Governments are said to be implementing an expansionary fiscal strategy when they lower tax rates while raising spending to promote economic growth. As a result of an increase in purchasing power, consumption increases.
Thus, option A is correct.
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If a government wants to efficiently reduce a widespread negative externality like air pollution, it must know the costs of pollution abatement of the individual polluters. However, this information is difficult to obtain directly. Tradeable emissions permits are one way to solve the asymmetric information problem affecting pollution abatement efforts.
a. Because the permits are tradeable, firms with ___ abatement costs will sell some of their permits to firms with ___ abatement costs.
b. Now consider that even after a firm has sold its permits, it must still reduce its pollution output.
Since those who sell their permits would have ___ abatement costs, the negative externality is reduced at ___ possible cost to society.
Answer:
a). lower, higher
b). lower, lower
Explanation:
The abatement costs may be defined as the cost that is borne by a firm or an organization when it is necessary to remove any undesirable nuisances or any negative byproducts of the process that is created during the production process. It is cost incurred in eliminating a negative externality such as environmental externality like pollution.
In the context, for solving the pollution abatement cost, the tradeable emissions permits as they are tradebale, an organization with a lower abatement cost sells the permits to the higher abatement cost firms.
Even after selling, the firm still have to reduce the pollution output, then the firm that sold the permit would have lower abatement cost and the negative externality is also reduced at the lower possible cost.
example of paraphrase about business?
Answer:
Sometimes you only need to paraphrase the information from one sentence. Here are some examples of paraphrasing individual sentences: Original: Her life spanned years of incredible change for women as they gained more rights than ever before. Paraphrase: She lived through the exciting era of women's liberation.
The following information is available for Sheridan Company
Accounts receivable $2,000
Cash $6,280
Accounts payable 3,900
Supplies 3,790
Interest payable 500
Unearned service revenue 820
Salaries and wages expense 4,900
Salaries and wages payable 740
Notes payable 32,500
Depreciation expense 660
Common stock 52,200
Equipment (net) 110,300
Inventory 2,810
Required:
Using the information above, prepare a balance sheet as of December 31, 2022.
Answer:
See below
Explanation:
Balance sheet as of December 31, 2022.
Current assets
Account receivable $2,000
Cash $6,280
Supplies $3,790
Total $12,070
Fixed assets
Equipment net $110,300
Inventory $2,810
Total $113,110
Total assets = $12,070 + $113,110 = $125,180
Current liabilities
Accounts payable $3,900
Interest payable $500
Salaries and wages payable $740
Notes payable $32,500
Total $37,640
Financed by;
Common Stock $52,500
Total liabilities + Common stock
= $37,640 + $52,500
= $90,140
Diaz Company owns a milling machine that cost $126,500 and has accumulated depreciation of $92,700. Prepare the entry to record the disposal of the milling machine on January 3 under each of the following independent situations. The machine needed extensive repairs, and it was not worth repairing. Diaz disposed of the machine, receiving nothing in return. Diaz sold the machine for $15,900 cash. Diaz sold the machine for $33,800 cash. Diaz sold the machine for $41,200 cash.
Answer:
A. Jan 03
Dr Accumulated depreciation—Milling machine $92,700
Dr Loss on disposal of milling machine $33,800
Cr Milling machine $126,500
B .Jan 03
Dr Cash $15,900
Dr Accumulated depreciation—Milling machine $92,700
Dr Loss on sale of milling machine $17,900
Cr Milling machine $126,500
C. Jan 03
Dr Cash $33,800
Dr Accumulated depreciation—Milling machine $92,700
Cr Milling machine $126,500
Explanation:
Preparation of journal entries
A. Jan 03
Dr Accumulated depreciation—Milling machine $92,700
Dr Loss on disposal of milling machine $33,800
($126,500-$92,700)
Cr Milling machine $126,500
B .Jan 03
Dr Cash $15,900
Dr Accumulated depreciation—Milling machine $92,700
Dr Loss on sale of milling machine $17,900
[126,500-($15,900+$92,700)
Cr Milling machine $126,500
C. Jan 03
Dr Cash $33,800
Dr Accumulated depreciation—Milling machine $92,700
Cr Milling machine $126,500
Use the following information:
Net Sales $9,740
Cost of goods sold 7,910
Depreciation 480
Earnings before interest and taxes $1,350
Interest paid 110
Taxable income $1,240
Taxes 434
Net income $806
Windswept, Inc.
2016 and 2017
Balance Sheets ($ in millions)
2016 2017 2016 2017
Cash $260 $290 Accounts payable $1,490 $1,460
Accounts rec. 1,060 960 Long-term debt 1,130 1,330
Inventory 1,900 1,740 Common stock 3,400 3,340
Total $3,220 $2,990 Retained earnings 670 920
Net fixed assets 3,470 4,060
Total assets $6,690 $7,050 Total liab. & equity$6,690 $7,050
What were the total dividends paid for 2017?
Answer:
Windswept, Inc.
The total dividends paid for 2017 is:
= $556.
Explanation:
a) Data and Calculations:
Windswept, Inc.
Income Statement for the year ended December 31, 2017:
Net Sales $9,740
Cost of goods sold 7,910
Depreciation 480
Earnings before interest and taxes $1,350
Interest paid 110
Taxable income $1,240
Taxes 434
Net income $806
Windswept, Inc.
2016 and 2017 Balance Sheets ($ in millions)
2016 2017 2016 2017
Cash $260 $290 Accounts payable $1,490 $1,460
Accounts rec. 1,060 960 Long-term debt 1,130 1,330
Inventory 1,900 1,740 Common stock 3,400 3,340
Total $3,220 $2,990 Retained earnings 670 920
Net fixed assets 3,470 4,060
Total assets $6,690 $7,050 Total liab. & equity $6,690 $7,050
The total dividends paid for 2017:
Retained earnings, Dec. 31, 2016 $670
Net income for the year, 2017 806
Less Retained earnings, Dec. 31, 2017 920
Dividends paid $556
Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930s. The retro-look cycle would be sold for $12,000 and at that price, Thad estimates 400 units would be sold each year. The variable cost to produce and sell the cycles would be $9,000 per unit. The annual fixed cost would be $960,000.
Show your calculation steps.
a. What is the break-even in unit sales?
Break-even in unit sales _____
b. What is the margin of safety in dollars?
Margin of safety in dollars _____
c. What is the degree of operating leverage? (Round your answer to 2 decimal places.)
Degree of operating leverage _____
Answer:
a. Break even in unit sales = $960,000 / $12,000 - $9,000 = $960,000 / $3,000 = 320
b. Margin of safety = ($12,000*400) - ($12,000*320) = $4800000 - $3840000 = $960,000
c. Degree of operating leverage = Contribution / PBIT
Contribution = ($12,000*400) - ($9,000*320) = 4800000 - 2880000 = 1920000
PBIT = 1920000/960,000 = 2
Degree of operating leverage = 1920000/2
Degree of operating leverage = 960,000
The next dividend payment by Zone, Inc., will be $2.08 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. If the stock currently sells for $42 per share, what is the required return
Answer:
10.95%
Explanation:
According to the gordon growth model,
the value of stock (price) = dividend / required return - growth rate
42 = 2.08/ r - 0.06
42(r-0.06) = 2.08
2.08/42 = r - 0.06
r = 10.95%
In its first year of operations, Pharoah company recognized $31,800 in service revenue, $6400 of which was on account and still outstanding at year end. The remaining $25400 was received in cash from customers.
The company incurred operating expenses of $16600. Of these expenses, $12730 were paid in cash; $3870 was still owed on account at year end. In addition, Pharoah prepaid $2390 for insurance coverage that would not be sued until the second year of operations.
Calculate the first year's net earnings under the cash basis of accounting and the first year's net earnings under the accrual basis of accounting.
What basis of accounting (cash or accrual) provides more useful information for decision makers?
Answer:
Net income under cash basis:
= Revenues - Expenses
= ($31,800-$6,400) - ($12,730+$2390)
= $25,400 - $15,120
= $10,280
Net income under accrual basis:
= $31,800 - $16,600
= $15,200
The basis of accounting which provides more useful information for decision makers is the accrual basis because it entails the revenues and expenses for a specific period of time which make it easy for decision making.
Manufacturing overhead for the month was underapplied by $6,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for January would include the following:
Work In Process Finished Goods Cost of Goods Sold Total
Direct materials $10,670 $12,000 $81,120 $103,790
Direct labor 11,630 15,000 101,400 128,030
Manufacturing
overhead applied 9,680 9,680 68,640 88,000
Total $31,980 $36,680 $251,160 $319,820
Manufacturing overhead for the month was underapplied by $6,000.
The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts.
The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for May would include the following:
a. credit to Work in Process of $31,980.
b. debit to Work in Process of $660.
c. credit to Work in Process of $660.
d. debit to Work in Process of $31,980.
Answer:
b. debit to Work in Process of $660.
Explanation:
Particulars Work in Finished Cost of Goods Sold Total
Process Goods
Manufacturing
overhead
applied during
the month 9680 9680 68640 88000
Percentage of total 11.0% 11.0% 78.0% 100.0%
Allocation of under-applied
manufacturing overhead 660 660 4680 6000