Answer:
December 31
Dr Deferred revenue 1,700
Cr Rent revenue 1,700
December 31
Dr Insurance Expense 6,240
Cr Prepaid insurance 6,240
December 31
Dr Salaries Expense 2,400
Cr Salaries payable 2,400
December 31
Dr Interest Expense 200
Cr Interest payable 200
December 31
Dr Salaries Expense 3,300
Cr Supplies 3,300
Explanation:
Preparation of Journal entries
December 31
Dr Deferred revenue 1,700
(3,400/2)
Cr Rent revenue 1,700
(To record rent revenue)
December 31
Dr Insurance Expense 6,240
($12,480*6/12)
Cr Prepaid insurance 6,240
(To Record insurance expense)
December 31
Dr Salaries Expense 2,400
Cr Salaries payable 2,400
(To record Salaries Expense)
December 31
Dr Interest Expense 200
(12,000*10%*2/12)
Cr Interest payable 200
(To record interest Expense)
December 31
Dr Salaries Expense 3,300
($940+$2,800-$440)
Cr Supplies 3,300
(To record supplies Expense)
Tim, a cash-basis taxpayer, incorporates his sole proprietorship. He transfers the following items to newly created Wren Corporation:
Adjusted Basis Fair Market Value
Cash $10,000 $10,000
Building 100,000 160,000
Mortgage payable (secured by the building and held for 5 years) 120,000 120,000
With respect to this transaction, Select one:
a. Wren Corporation's basis in the building is $100,000.
b. Tim has no recognized gain.
c. Tim has a recognized gain of $20,000.
d. Tim has a recognized gain of $10,000.
Answer:
a because it tis tbr modnfhtisnfbhrirfgh
Steve’s Lumber Company features a large selection of materials for flooring, decks, moldings, windows, siding and roofing. It is a small, but profitable family business that is looking to expand. The prices of lumber and other building materials are constantly changing. When a customer places an order, typically inquiring about the price on pre-finished wood flooring, sales representatives consult the catalogue, and a manual price sheet and then call the supplier for the most recent price. The supplier in turn uses a manual price sheet, which has been updated each day. Often the supplier must call back Steve’s reps because the company does not have the newest pricing information immediately on hand. Of course, the customer’s order is delayed until a firm price is determined. Steve has hired you to assess the business impact of the situation.
1. What can be done for them to make this process more efficient.
2. Identify 3 metrics that could be put in place to measure the impact of the existing process on operational efficiency.
3. Explain how information systems could support those changes. Discuss what data the systems should capture and what decisions the system could improve.
Answer:
1. The major issue in the process is the lack of communication between different parties. The process being manually driven, might affect the customer satisfaction and lead to lost sales. The changes which need to be made is to make available the price information of different items at once, when the customer comes in to place an order. This can be made possible by asking the suppliers to send the updated sheet every morning before the day's business begins. It will be better if the entire uncatalogued as well as the price sheet is in electronic form, which can be updated immediately, as soon as the information is received from supplier in the morning. One better alternative is to connect the suppliers through an ERP so that their price might reflect at the company's end as soon as it is updated, It will reduce much hassle and mistakes that might creep in due to manual process.
2. a. The number of customers leaving per day / week to competitors due to inefficiency.
b. Total average delay in customer's order.
c. Customer satisfaction rating of the process as this will give the overall picture of customer's opinion about the company.
3. The information system might enable the suppliers to update their information each day which can then be used by the company reps to find out the right price of an item and enable him /her to provide the estimate immediately, leading to greater customer satisfaction, reducing the lost sales and eliminating the chances of a wrong quote being given.
Match each term on the left with the best definition on the right. Note: Not all definitions will be used.
A. Materials that cannot be directly or conveniently traced to a specific unit or job.
B. Total production cost assigned to goods that were produced during the period.
C. Cost of materials purchased from suppliers that have not yet been used in production.
D. Actual amount of indirect manufacturing costs incurred during the period.
E. Materials that can be directly and conveniently traced to a specific unit or job.
F. Indirect manufacturing costs that have been assigned to a specific unit or job using a predetermined overhead rate.
G. Cost of units or jobs that are incomplete at any given point in time.
H. Total manufacturing cost of jobs or units sold during the period.
I. Costs of all units completed and ready for sale at any given point in time.
1. Actual manufacturing overhead 2. Applied manufacturing overhead 3. Cost of goods manufactured 4. Cost of goods sold 5. Direct materials 6. Finished goods 7. Indirect materials 8. Raw material inventory 9. Work in process inventory
Answer:
A. Indirect materials.
B. Cost of goods manufactured
C. Raw material inventory
D. Actual manufacturing overhead
E. Direct materials.
F. Applied manufacturing overhead
G. Work in process inventory
H. Cost of goods sold.
I. Finished goods inventory.
Explanation:
A. Materials that cannot be directly or conveniently traced to a specific unit or job: Indirect materials.
B. Total production cost assigned to goods that were produced during the period: Cost of goods manufactured.
C. Cost of materials purchased from suppliers that have not yet been used in production: Raw material inventory.
D. Actual amount of indirect manufacturing costs incurred during the period: Actual manufacturing overhead.
E. Materials that can be directly and conveniently traced to a specific unit or job: Direct materials.
F. Indirect manufacturing costs that have been assigned to a specific unit or job using a predetermined overhead rate: Applied manufacturing overhead.
G. Cost of units or jobs that are incomplete at any given point in time: Work in process inventory.
H. Total manufacturing cost of jobs or units sold during the period: Cost of goods sold.
I. Costs of all units completed and ready for sale at any given point in time: Finished goods inventory.
On December 31, 2016, the manager of Jordan Creek Apartments noticed that four tenants had not paid their December rent amounting to $500 each. The manager spoke to each tenant individually and was promised by all 4 that the rent would be paid by January 15, 2017. Assuming the tenants follow through and make their payments by January 15, 2017, Jordan Creek should make the following entry as of December 31, 2016:______.
Cash (dr) $2,000
Rental Receivable (cr) $2,000
A. True
B. False
Answer:
B. False
The business should not make this entry on 31 December.
Explanation:
The accounting principle of prudence states that profits should not be overstated and losses should not be understated. This means that any profit should not be recorded until it is realized while any losses should be recorded as soon as they are anticipated. As the business has not received cash from tenants on 31 December 2016, it should not make any entry debiting cash and crediting the rent receivable.
The business should let the rent receivable balance intact until the rent is received on 15 January and till then record no entry to such as the above.
D’Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets, liabilities, and common stock of the business on July 1, 2016, are as follows: Cash, $45,000; Accounts Receivable, $93,000; Supplies, $7,000; Land, $75,000; Accounts Payable, $40,000; Common Stock, $60,000. Business transactionsduring July are summarized as follows:
A. Joel Palk invested additional cash in exchange for common stock with a deposit of $35,000 in the business bank account.
B. Paid $50,000 for the purchase of land adjacent to land currently owned by D’Lite Dry Cleaners as a future building site.
C. Received cash from cash customers for dry cleaning revenue, $32,125.
D. Paid rent for the month, $6,000.
E. Purchased supplies on account, $2,500.
F. Paid creditors on account, $22,800.
G. Charged customers for dry cleaning revenue on account, $84,750.
H. Received monthly invoice for dry cleaning expense for July (to be paid on August 10), $29,500.
I. Paid the following: wages expense, $7,500; truck expense, $2,500; utilities expense, $1,300; miscellaneous expense, $2,700.
J. Received cash from customers on account, $88,000.
K. Determined that the cost of supplies on hand was $5,900; therefore, the cost of supplies used during the month was $3,600.
L. Paid dividends, $12,000.
Required:
1. Determine the amount of retained earnings as of July 1 of the current year.
2. The assets, liabilities, and stockholders’ equity as of July 1 are stated in equation form similar to that shown in this chapter. In tabular form below the equation, indicate increases and decreases resulting from each transaction and the new balances after each transaction. In each transaction row (rows indicated by a letter), you must indicate the math sign (+ or -) in columns effected by the transaction. You will not need to enter math signs in the balance rows (rows indicated by Bal.). Entries of 0 (zero) are not required and will be cleared if entered.
3.a. Prepare an income statement for the month ended July 31, 2016. Refer to the Accounts in the accounting equation grid and to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss has been incurred, enter that amount as a negative number using a minus sign. You will not need to enter colons (:) on the income statement.
3.b. Prepare a retained earnings statement for the month ended July 31, 2016. Refer to the lists of Accounts in the accounting equation grid and to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Enter all amounts as positive numbers. The word "Less" or "Add" is not needed in the Retained Earnings Statement.
3.c. Prepare a balance sheet as of July 31, 2016. Refer to the Accounts in the accounting equation grid and to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.
4. Prepare a statement of cash flows for July. Enter amounts that represent cash outflows as negative numbers using a minus sign. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. You will not need to enter colons (:) or the word Deduct on the statement.
Labels Cash flows from financing activities, Cash flows from investing activities, Cash flows from operating activities, ExpensesFor the Month Ended July 31, 2016, July 31, 2016
Amount Descriptions Additional investment during July, Cash balance, July 1, 2016, Cash balance, July 31, 2016, Cash payments for expenses and payments to creditors, Cash received from customers, Cash received from issuing common stock, Decrease in retained earnings, Dividends, Increase in retained earnings, Net cash flows from financing activities, Net cash flows from investing activities, Net cash flows from operating activities, Net cash flows used for financing activities, Net cash flows used for investing activities, Net cash flows used for operating activities, Net decrease in cash during July, Net income, Net increase in cash during July. Net loss, Purchase of land, Retained earnings, July 1, 2016, Retained earnings, July 31, 2016, Total assets, Total expenses, Total liabilities and stockholders’ equity, Total stockholders’ equity
Answer:
1) equity = assets - liabilities
equity = $45,000 + $93,000 + $7,000 + $75,000 - $40,000 = $180,000
retained earnings = total equity - common stock = $180,000 - $60,000 = $120,000
2) Since there is not enough room here, I used an excel spreadsheet to prepare the accounting equation.
3a) D’Lite Dry Cleaners
Income Statement
For the month ended July 31, 202x
Revenues $116,875
Expenses:
Dry cleaning expense $29,500 Rent expense $6,000 Wages expense $7,500 Truck expense $2,500 Supplies expense $3,600 Utilities expense $1,300 Miscellaneous expense $2,700 ($53,100)Net income $63,775
3b) D’Lite Dry Cleaners
Balance Sheet
For the month ended July 31, 202x
Assets:
Cash $95,325
Accounts receivable $89,750
Supplies $5,900
Land $125,000
Total assets $315,975
Liabilities:
Accounts payable $49,200
Equity:
Common stock $95,000
Retained earnings $171,775
Total equity = $266,775
Total liabilities and equity $315,975
3c) D’Lite Dry Cleaners
Statement of Owner’s Equity
For the month ended July 31, 202x
Palk, Joel, common stock, beginning balance $60,000
Retained earnings $120,000
Additional common stock issued $35,000
net income $63,775
subtotal $278,775
dividends ($12,000)
Palk, Joel, common stock, ending balance $95,000
Retained earnings $$171,775
Governments most often influence market conditions by:
A. setting up natural monopolies for essential services.
B. increasing barriers to entry in pure competition markets.
C. encouraging price fixing by corporations in an oligopoly.
D. paying research and development costs for corporations
Answer:
a
Explanation:
just took it
Governments most often influence market conditions by setting up natural monopolies for essential services. Thus, the correct option is A).
What are the ways government can influence the market conditions?Government can influence the market conditions by creating subsidies, by collecting tax from the public and giving the money to an industry, or tariffs, by adding taxes to foreign products to lift prices up and make domestic products more appealing.
It has the authority to change the level and type of taxes, the formation of spending and its level, the degree of borrowing etc. which can directly influence the market conditions.
It can directly or indirectly influence the way resources are used in the economy and increase the efficiency in order to promote the economy growth.
Learn more about government influence on market conditions here:-
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If steak and potatoes are complements, when the price of steak goes down, the demand curve for potatoes:
Answer:
Shift to the left
Explanation:
Demand curve is essential in economics, because it allows to know the relationship between the price of a particular goods/service and quantity demanded all in that price graphically
Since complementary goods are used along with each other, they also shift demands curve to the left because any fall at the price of one of the complement goods, the demands of first one increases, then the other one.
Therefore, If steak and potatoes are complements, when the price of steak goes down, the demand curve for potatoes Shift to the left
Developing Business Writing TechniquesYou can improve your message by using mechanical emphasis, parallelism, voice, and well-placed descriptions.One way to achieve emphasis is through mechanical devices.Complete the following sentence. —used sparingly—can be an effective way to emphasize explanatory information.You can also improve your messages through stylistic emphasis in sentnce structure and word choice. Which of the following stylistic devices can be used to achieve emphasis? Check all that apply.Position important ideas first or last in a sentence.Use complex sentence patterns.Use general terms.Label descriptive modifiers.Use vivid words.In some cases it is necessary to de-emphasize an idea, such as bad nes. Does the following selection emphasize or de-emphasize the bad news?While we are unable to renew your contract for the upcoming year, we hope to have the position reposted once the funds are available.EmphasizeDe-emphasizeWhen you compose messages, you may use the active or passive voiceto convey meaning. Most business messages use the active voice. Which of the following are instances when you would use the passive voice in a business message? Check all that apply.To emphasize an action instead of the recipient of an actionTo avoid beginning the sentence with itTo create confusion for your readerTo conceal the doer of an actionDoes the following sentence use the active or passive voice?The Lifetime Achievement Award was presented to Christina Balian.PassiveActiveParallel sentences are balanced and easy for readers to understand. Choose which sentence has the better parallel structure.If you write well, speak well, and use good interpersonal skills, you will do well in this corporation.If you write well, speak well, and are using good interpersonal skills, you will do well in this corporation.Choose the best revision to the following sentence.Teagan saw the recommendations flipping through the report.Flipping through the report, Teagan saw the recommendations.Teagan saw the recommendations, flipping through the report.Effective business writers use various techniques to improve their messages. How could the following selection be improved?Because of the snowstorm, the roads are closed and the trains aren’t running, the office will be closed today.The problem in this ineffective selection is:Passive voiceNot emphasizing important ideasSentence length/comprehension rateWriters should use words carefully and construct sentences skillfully to emphasize main ideas and de-emphasize minor ideas.Choose the best responseWhich of the following emphasizes the main idea?We have now successfully concluded our interview process and you have passed.Congratulations! We would like to offer you the position of senior analyst.
Answer:
Developing Business Writing Techniques
Improving messages by using mechanical emphasis, parallelism, voice, and well-placed descriptions:
1. Devices:
Stylistic devices—used sparingly—can be an effective way to emphasize explanatory information.
2. Stylistic devices used to achieve emphasis:
a. Position important ideas first or last in a sentence.
b. Use vivid words.
3. De-emphasize bad news
4. When to use the Passive Voice:
To emphasize an action instead of the recipient of an action
To conceal the doer of an action
5. Passive
6. Sentence with better parallel structure:
If you write well, speak well, and use good interpersonal skills, you will do well in this corporation.
7. Best Revision:
Flipping through the report, Teagan saw the recommendations.
8. Not emphasizing important ideas
9. Congratulations! We would like to offer you the position of senior analyst.
Explanation:
Stylistic devices help writers to achieve emphasis and readers to achieve understanding of the message being communicated. While they should be used economically, their presence in any writing acts as an effective way to improve messages.
Makers Corp. had additions to retained earnings for the year just ended of $174,000. The firm paid out $190,000 in cash dividends, and it has ending total equity of $4.95 million. The company currently has 140,000 shares of common stock outstanding.
a. What are earnings per share?
b. What are dividends per share ?
c. What is the book value per share?
d. If the stock currently sells for $86 per share, what is the market-to-book ratio?
e. What is the price-earnings ratio?
f. If the company had sales of $4.69 million, what is the price-sales ratio?
Answer: See explanation
Explanation:
a. What are earnings per share?
Earnings per share:
= (additions to retained earnings+ cash dividends)/140000
= (174000+190000)/140000
= 364000/140000
Earnings per share = $ 2.60
b. What are dividends per share ?
Dividends per share will be:
= Dividend/Number of shares of common stock outstanding
= 190000/140000
= $ 1.36
c. What is the book value per share?
Book value per share will be:
= Ending total equity/Number of shares of common stock outstanding
= 4950000/140000
= $ 35.36
d. If the stock currently sells for $86 per share, what is the market-to-book ratio?
Market-to-book ratio will be:
= Market Value per share/Book Value per share
= 86/35.36
= 2.43
e. What is the price-earnings ratio?
Price-earnings ratio will be:
= Market Value per share/Earnings per share
= 86/2.6
= 33.08
f. If the company had sales of $4.69 million, what is the price-sales ratio?
Price-sales ratio will be the market value per share multiplied by the number of shares of common stock outstanding. This will be:
= (86 × 140000)/4690000
= 2.57 times
Faughn Corporation has provided the following data concerning manufacturing overhead for July:
Actual manufacturing overhead incurred $69,000
Manufacturing overhead applied to Work in Process $79,000
The company's Cost of Goods Sold was $243,000 prior to closing out its Manufacturing Overhead account. The company closes out its Manufacturing Overhead account to Cost of Goods Sold. Which of the following statements is true?
A) Manufacturing Overhead account is $233,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000.
B) Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000
C) Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000
D) Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000
Faughn Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:
Raw materials purchased on account $475,000
Raw materials (all direct) requisitioned for use in production $476,000
Direct labor cost $640,000
Manufacturing overhead:
Indirect labor cost $174,000
Other manufacturing overhead costs incurred $498,000
Cost of goods manufactured $1,672,500
Cost of goods sold (unadjusted) $1,469,000
The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:_____.
A. Finished Goods 1,672,500
Work in Process 1,672,500
B. Work in Process 1,469,000
Finished Goods 1,469,000
C. Finished Goods 1,469,000
Work in Process 1,469,000
D. Work in Process 1,672,500
Finished Goods 1,672,500
Answer: B. Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000
A. Finished Goods 1,672,500
Work in Process 1,672,500
Explanation:
• Based on the scenario in the question, it should be realized that the applied manufacturing overhead is more than the actual manufacturing overhead by:
= $79,000 − $69,000
= $10,000
This implies that $10,000 would be overapplied. The $10000 will then be subtracted from the cost of the goods that were sold and we'll then get adjusted cost of goods sold of:
= $243,000 − $10,000
= $233,000
• The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:
Finished Goods 1,672,500
Work in Process 1,672,500
The March 29, 2012, edition of the Wall Street Journal Online contains an article by Miguel Bustillo entitled, "Best Buy Forced to Rethink Big Box." The article explains how the 1,100 giant stores, which enabled Best Buy to obtain its position as the largest retailer of electronics, are now reducing the company’s profitability and even threatening its survival. The problem is that many customers go to Best Buy stores to see items but then buy them for less from online retailers. As a result, Best Buy recently announced that it would close 50 stores and switch to smaller stores. However, some analysts think that these changes are not big enough.
Suppose the following data were extracted from the 2017 and 2012 annual reports of Best Buy. (All amounts are in millions).
2017 2016 2012 2011
Total assets at year-end $17,729 $18,390 $11,880 $10,234
Net sales 50,308 30,768
Net income 1,301 1,143
Using the data above.
Compute the profit margin, asset turnover, and return on assets for 2017 and 2012.
Answer:
2012Profit Margin
= Net income / Net sales
= 1,143 / 30,768 * 100
= 3.7%
Asset Turnover
= Net sales / Average operating assets
= 30,768 / [(10,234 + 11,880) / 2]
= 2.78 times
Return on Assets
= Net income / Average operating assets
= 1,143/ [(10,234 + 11,880) / 2]
= 10.3%
2017Profit Margin
= Net income / Net sales
= 1,301 / 50,308
= 2.6%
Asset Turnover
= Net sales / Average operating assets
= 50,308 / [(18,390 + 17,729) / 2]
= 2.79 times
Return on Assets
= Net income / Average operating assets
= 1,301 / [(18,390 + 17,729) / 2]
= 7.2%
AAA Inc. has a current debt-to-equity ratio of 3, and is considering expanding its operations into a new industry. Firms in this new industry face a different set of risks than AAA Inc. However, the executives at AAA Inc. observe that a company in the new industry (BBB Inc.) has a cost of equity of 14%, a cost of debt of 7%, and a debt-to-value ratio of 40%. AAA Inc. plans to finance its expansion into the new industry with 50% debt and 50% equity. The cost of debt for AAA Inc. is also 7%, and the corporate tax rate is 25%. Solve for the discount rate that AAA Inc. should use when evaluating whether to go forward with the expansion.
Answer:
10% and it should go forward.
Explanation:
So, from the question above we have the following parameters which is going to help in solving this particular Question/problem.
=> The current debt-to-equity ratio of AAA Inc. = 3.
=> The cost of equity of BBB Inc. = 14%.
=>The cost of debt of BBB Inc. = 7%, and a debt-to-value ratio of 40%.
=> "AAA Inc. plans to finance its expansion into the new industry with 50% debt and 50% equity. "
=> "The cost of debt for AAA Inc. is also 7%, and the corporate tax rate is 25%. "
Therefore, the discount rate of AAA Inc = (0.5 × 14%) +0.5 × 7% × ( 1 - 25%) = 10%.
Also, the discount rate of BBB In. = =60 × 14% + 40 × 7% × ( 1 - 25% ) = 11%
The operation should go forward because the discount rate of BBB Inc is greater than thar of AAA inc.
10% and it should go forward.
Dr. Jake Lambert signed an employment agreement with Baptist Health Services, Inc., to provide cardiothoracic-surgery services to Baptist Memorial Hospital-North Mississippi, Inc., in Oxford, Mississippi. Complaints about Lambert’s behavior arose almost immediately. His work was evaluated by a team of doctors and psychologists, who diagnosed him as suffering from obsessive-compulsive personality disorder and concluded that he was unfit to practice medicine. Based on this conclusion, the hospital suspended his staff privileges. Citing the suspension, Baptist Health Services claimed that Lambert had breached his employment contract. What is Lamberts R this claim? Explain.
Answer:
doctrine of impossibility
Explanation:
Based on the scenario being described, Dr. Lambert's best defense to this claim would be the doctrine of impossibility. This doctrine basically protects individual's in these types of situations as long as they can prove that the targetted reason for the claim does not make completing the tasks required by the contract impossible. This perfectly applies to this situation because Dr. Lambert's obsessive-compulsive disorder may be unsettling to the other doctors or supervisors but it does not prevent Dr. Lambert from fully and correctly completing his responsibilities as a cardiothoracic-surgeon, and therefore the doctrine of impossibility would be a great defense to his claim.
Oct. 1 Stockholders invest $33,540 in exchange for common stock of the corporation 2 Hires an administrative assistant at an annual salary of $41,520. 3 Buys office furniture for $3,690, on account. 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $11,190 (not paid by Roads at this time) 10 Receives cash of $155 as commission for acting as rental agent renting an apartment. 27 Pays $660 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $3,460 in salary for October.
Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the the problem.)
Date Account Titles and Explanation Debit Credit
Answer and Explanation:
The Journal entries are prepared below:-
1. Cash Dr, $33,540
To Common Stock $33,540
(Being the common stock issued is recorded)
2. No journal entry is required as the agreement has been entered
3. Office furniture Dr, $3,690
To Accounts payable $3,690
(Being the service revenue earned is recorded)
4. Accounts receivable Dr, $11,190
To Service revenue $11,190
(Being the service revenue earned is recorded)
5. Cash Dr, $155
To Service revenue $155
(Being the service revenue earned is recorded)
6. Accounts Payable Dr, $660
To Cash $660
(Being the payment of office furniture purchased is recorded)
7. Salary expense Dr, $3,460
To Cash $3,460
(Being the salaries paid to administrative staff is recorded)
Tom Zopf owns and manages a computer repair service, which had the following trial balance on December 31, 2016 (the end of its fiscal year).TABLETTE REPAIR SERVICE, INC.Trial BalanceDecember 31, 2016 Debit CreditCash $ 7,900 Accounts Receivable 15,700 Supplies 12,500 Prepaid Rent 3,200 Equipment 20,300 Accounts Payable $19,000Common Stock 30,100Retained Earnings 10,500$59,600 $59,600Summarized transactions for January 2017 were as follows:1. Advertising costs, paid in cash, $1,1702. Additional supplies acquired on account $3,6703. Miscellaneous expenses, paid in cash, $1,7904. Cash collected from customers in payment of accounts receivable $12,1605. Cash paid to creditors for accounts payable due $12,2406. Repair services performed during January: for cash $6,870; on account $8,6707. Wages for January, paid in cash, $2,2308. Dividends during January were $2,690Open T-accounts for each of the accounts listed in the trial balance, and enter the opening balances for 2017.
Answer:
Cash
debit credit
beg. bal. 7,900
1. 1,170
3. 1,790
4. 12,160
5. 12,240
6. 6,870
7. 2,230
8. 2,690
end. bal. 6,810
Accounts receivable
debit credit
beg. bal. 15,700
4. 12,160
6. 8,670
end. bal. 12,210
Supplies
debit credit
beg. bal. 12,500
2. 3,670
end. bal. 16,170
Prepaid Rent
debit credit
beg. bal. 3,200
Equipment
debit credit
beg. bal. 20,300
Accounts Payable
debit credit
beg. bal. 19,000
2. 3,670
5. 12,240
end. bal. 10,430
Common Stock
debit credit
beg. bal. 30,100
Retained Earnings
debit credit
beg. bal. 10,500
Service revenue
debit credit
beg. bal. 0
6. 15,540
Advertising expenses
debit credit
beg. bal. 0
1. 1,170
Miscellaneous expenses
debit credit
beg. bal. 0
3. 1,790
Wages expenses
debit credit
beg. bal. 0
7. 2,230
Dividends expenses
debit credit
beg. bal. 0
8. 2,690
A copy company wants to expand production. It currently has 20 workers who share eight copiers. Two months ago, the firm added two copiers and output increased by 100,000 pages per day. One month ago, they added five workers and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?
Answer:
Another Copier
Explanation:
Based on the information provided I would recommend that the company buy another copier as it provides the greatest benefit for the cost. For example, five workers are able to increase production by 50,000 pages per day. This means that 1 worker increases production by 10,000 pages per day, while one copier increases production by 50,000 per day.
Now 1 copier is worth 2 workers (double what a single worker costs), but two workers only increase production by 20,000 pages per day which is still 30,000 pages less per day than the copier. Therefore, the copier would provide the greatest benefit to the company.
There is $257 in your account and you earn simple interest of 3.2% for 5 years. What is your new balance?
Answer:
I am not 100% sure but I think that the answer is $298.12
Jingfei, an employee of Chinese origin, works as a sales representative at Global Recyclers International. Her supervisor, Ralph, persistently refers to her as "Julie" instead of "Jingfei." Although she objects and asks to be called by her rightful name, Ralph continues to call her "Julie" for over a year and justifies his actions by saying that an American-sounding name would increase her chances of success and would be more acceptable to Global's clientele. Jingfei brings a complaint under Title VII of the Civil Rights Act of 1964. Which of the following holds true in this case? a) Global Recyclers International will not be liable to Jingfei because the use of "Julie" is neither a racial epithet nor a description of her physical ethnic traits. b) Global Recyclers International will not be liable to Jingfei because Ralph did not intend his use of "Julie" to be derogatory of her national origin. c) Global Recyclers International will be liable to Jingfei because Title VII provides protection against discrimination based on a victim's country of citizenship. d) Global Recyclers International will be liable to Jingfei because ethnic characteristics go beyond skin color and other physical traits and can include names.
Answer:
idkdidkidkd
Explanation:
bc idkidkdidkidkd
Duc has been employed by Longbow Corporation for 25 years. During that time, he bought an annuity at a cost of $50 per month ($15,000 total cost). The annuity will pay him $200 per month after he reaches age 65. When Duc dies, his wife, Annika, will continue to receive the annuity until her death. Duc turns 65 in April 2019 and receives 8 payments on the contract. Annika is age 60 when the annuity payments begin.
Required:
a. How much gross income does Duc have from the contract in the current year?
b. Assume that Duc dies on April 2, 2025. How does Annika account for the contract in 2025?
c. Assume the same facts as in part b and that Annika dies on August 4, 2032. How does the executor of Annika's estate account for the contract in the year of her death?
Answer:
a. How much gross income does Duc have from the contract in the current year?
According to the IRS, Duc's life expectancy is 90 years and 8 months, or 310 more months. This means that Duc can discount from his monthly income $15,000 / 310 = $48.39 (which we must round down to $48).
Duc received 8 x $200 = $1,600
deductions = 8 x $48 = $384
taxable income = $1,216
b. Assume that Duc dies on April 2, 2025. How does Annika account for the contract in 2025?
Annika should account for the contract in the same way as Duc did, and will also be able to discount $48 per month form her gross income. Since Annika will still file her taxes as married during 2025, she will report net income from this contract = ($200 - $48) x 12 months = $1,824
c. Assume the same facts as in part b and that Annika dies on August 4, 2032. How does the executor of Annika's estate account for the contract in the year of her death?
Both Duc and Annika received [(2032 - 2019) x 12] + 4 = 160 payments in total, so her estate is entitled to a tax deduction = (310 - 160) x $48 = $7,200
Since she died on August, her estate must also report income = ($200 - $48) x 8 = $1,216
Which of the following goods would be considered an elastic in demand?
1.) Milk
2.)candy
3.) designer clothes
4.) television
On December 31, 2021, Interlink Communications issued 5% stated rate bonds with a face amount of $113 million. The bonds mature on December 31, 2051. Interest is payable annually on each December 31, beginning in 2022. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $). Determine the price of the bonds on December 31, 2021, assuming that the market rate of interest for similar bonds was 6%.
Table values are based on:
n = 30
i = 6%
Cash Flow Amount Present Value
Interest $111,300,000 $74,454,240
Principal $100,000,000 $13,137,000
Price of bonds $87,591,240
Answer:
Bond Price = $97.4457408 million rounded off to $97.45 million
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,
Coupon Payment (C) = 113 million * 0.05 = 5.65 million
Total periods (n) = 30
r or YTM = 0.06 or 6%
The formula to calculate the price of the bonds today is attached.
Bond Price =5.65 * [( 1 - (1+0.06)^-30) / 0.06] + 113 / (1+0.06)^30
Bond Price = $97.4457408 million rounded off to $97.45 million
Workman Software has 11.2 percent coupon bonds on the market with 20 years to maturity. The bonds make semiannual payments and currently sell for 108.4 percent of par. a. What is the current yield on the bonds
Answer:
10.33%
Explanation:
The computation of the current yield on the bonds is shown below:-
current yield on the bonds = Coupon bond ÷ Current price of bond
= (Par value × Coupon rate) ÷ (Par value × Current selling price percentage)
= ($1,000 × 11.2%) ÷ ($1,000 ÷ 108.4%)
= $112 ÷ $1,084
= 10.33%
Therefore we have applied the above formula.
Cool Car Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2014 are as follows:
The selling price per vehicle is $27000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs.
Requirements:
Prepare April and May 2014 income statements for Cool Car Motors under (a) variable costing and (b) absorption costing.
Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing.
Unit data April May
Beginning Inventory 0 100
Production 500 425
Sales 400 495
Variable Costs
Manufacturing cost/unit produced $11000 $11000
Operating (marketing) cost/unit sold 3200 3200
Fixed costs
Manufacturing costs $2000000 $2000000
Operating (marketing) costs 550000 550000
Answer:
Cool Car Motors
Income statements for April and May - variable costing
April May
Sales ($27000) $10,800,000 $13,365,000
Less Cost of Sales ($4,400,000) ($5,445,000)
Contribution $6,400,000 $7,920,000
Less Expenses :
Fixed Manufacturing costs ($2,000,000) ($2,000,000)
Operating (marketing) costs :
Variable ($3200) ($1,280,000) ($1,584,000)
Fixed ($550,000) ($550,000)
Net Income / (Loss) $2,570,000 $3,786,000
Cool Car Motors
Income statements for April and May - Absorption costing
April May
Sales ($27000) $10,800,000 $13,365,000
Less Cost of Sales ($6,000,000) ($7,425,000)
Gross Profit $4,800,000 $5,940,000
Less Expenses :
Operating (marketing) costs :
Variable ($3200) ($1,280,000) ($1,584,000)
Fixed ($550,000) ($550,000)
Net Income / (Loss) $2,970,000 $3,806,000
Cool Car Motors
Reconciliation of Absorption Costing Profit to Variable Costing Profit
April May
Absorption Costing Income $2,970,000 $3,806,000
Add Fixed Costs in Opening Inventory $0 $400,000
Less Fixed Cost in Closing Inventory ($400,000) ($120,000)
Variable Costing Income $2,570,000 $3,786,000
Explanation : The Fixed Costs deferred in closing inventory is the cause of the difference between operating income for each month under variable costing and absorption costing.
Explanation:
Summary of Units
April May
Beginning Inventory 0 100
Add Production 500 425
Available for Sale 500 525
Less Sales (400) (495)
Ending Inventory 100 30
Variable Costing Calculations :
April May
Cost of Sales
Beginning Inventory at $11000 $0 $1,100,000
Manufacturing Cost at $11000 $5,500,000 $4,675,000
Ending Inventory at $11000 ($1,100,000) ($330,000)
Cost of Sales $4,400,000 $5,445,000
Absorption Costing Calculations :
April May
Cost of Sales
Beginning Inventory at $15000 $0 $1,500,000
Manufacturing Cost at $15000 $7,500,000 $6,375,000
Ending Inventory at $15000 ($1,500,000) ($450,000)
Cost of Sales $6,000,000 $7,425,000
What's your tikto I will follow
On December 31, 2021, the end of the fiscal year, Revolutionary Industries completed the sale of its robotics business for $13.0 million. The robotics business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $9.0 million. The income from operations of the segment during 2021 was $6.0 million. Pretax income from continuing operations for the year totaled $14.0 million. The income tax rate is 25%.
Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4.)
Suppose that, in a competitive market without government regulations, the equilibrium price of hamburgers is $7 each. Indicate the followings whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
a. The government has instituted a legal minimum price of $5 each for hamburgers.
b. The government prohibits fast-food restaurants from selling hamburgers for more than $5 each.
c. Due to new regulations, fast-food restaurants that would like to pay better wages in order to hire more workers are prohibited from doing so.
Answer:
Price floor non binding
Price ceiling binding
Price ceiling binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
A. The minimum price is less than the equilibrium price, thus it is a non binding price floor
b. The maximum price is less than the equilibrium price, thus it is a binding price floor
c. Restaurants that would want to pay better wages are unable to do so. This means that there is a binding price maximum in place
Broussard Skateboard's sales are expected to increase by 25% from $9.0 million in 2019 to $11.25 million in 2020. Its assets totaled $3 million at the end of 2019. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 40%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.
Answer:
EFN = $120,000
Explanation:
External financing needed = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x (1-d))
A/S = assets / sales = 3/9 = 0.333 3
Δ Sales = change in sales = $2.25 million
L/S = current liabilities that change along with sales / sales = 0.9/9 = 0.1
PM = profit margin = 6%
FS = total forecasted sales = $11.25 million
1 - d = 1 - dividend payout ratio = 1 - 0.4 = 0.6
EFN = (3/9 x $2.25) - (0.1 x $2.25) - (0.06 x $11.25 x 0.6) = $0.75 - $0.225 - $0.405 = $0.12 million = $120,000
The following information is provided for the Moon Antenna, Corp., which manufactures two products: Lo-Gain antennas and Hi-Gain antennas for use in remote areas EEB (Click the icon to view the information.) Activity Cost Allocation Base 58,000 Number of setups 30,000 Number of machine hours 88,000 Set up Machine maintenance Total indirect manufacturing costs Direct labor hours Number of setups Number of machine hours Lo-Gain 1,600 25 3,900 Hi-Gain 400 25 2,100 Total 2,000 50 6,000 Moon plans to produce 225 Lo-Gain antennas and 275 units of Hi-Gain antennas Requirements 1. Compute the ABC indirect manufacturing cost per unit for each product. 2. Compute the indirect manufacturing cost per unit using direct labor hours for the traditional single plantwide allocation rate system
Requirement 1. Compute the ABC indirect manufacturing cost per unit for each product. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rateor each activity. Round your answers to the nearest cent.) Predetermined OH allocation rate Setup Machine maintenance Next, select the formula to allocate overhead (OH) costs Allocated mfg. overhead costs Compute the total activity-based costs allocated to Lo-Gain antennas, and then compute the cost per unit for Lo-Gain antennas. Finally, compute the total activity-based costs allocated to Hi-Gain antennas then compute the cost per unit for Hi-Gain antennas. (Round the cost per unit to the nearest cent.) Lo-Gain Hi-Gain Setup Machine maintenance Total activity-based costs Number of units Activity-based cost per unit
Requirement 2. Compute the indirect manufacturing cost per unit using direct labor hours from the single-allocation-base system. First, compute the predetermined overhead (OH) allocation rate. (Round your answer to the nearest cent.) The predetermined overhead (OH) allocation rate is S Compute the manufacturing cost allocated to Lo-Gain antennas, and then compute the indirect manufacturing cost per unit for Lo-Gain antennas. Then, compute the manufacturing cost allocated to Hi-Gain antennas and the indirect manufacturing cost per unit for Lo-Gain Lo-Gain Hi-Gain
Total indirect costs allocated Number of units Indirect cost per unit
Full question attached
Answer and Explanation:
Full answer and explanation attached
Which situation exemplifies public action?
A. The mafia in Cedia Republic demands "protection money" from successful domestic business owners.
B. Cedian proprietors in the hospitality industry often complain about protection rackets by criminal groups.
C. Government bureaucrats demand bribes from international businesses in return for the rights to operate in Cedia Republic.
D. The Cedian government has been criticized for its inability to curb theft of trade secrets of international businesses by private domestic owners.
E. To promote the Cedian culture, the government allows movies based on Cedian history to be made tax-free.
Answer:
C.
Explanation:
From the answer choices provided, the one that best exemplifies public action would be Government bureaucrats demand bribes from international businesses in return for the rights to operate in Cedia Republic. That is because in this scenario the bureaucrats are joining together in unison in order to demonstrate the power that they hold over their community, which by banding together they protect each other and become that much more powerful. Mainly because since they are unified they will have each other's backs and not interfere with the other's bribes.
On April 1, Sangvikar Company had the following balances in its inventory accounts:
Materials Inventory $12,720
Work-in-Process Inventory 21,320
Finished Goods Inventory 8,700
Work-in-process inventory is made up of three jobs with the following costs:
Job 114 Job 115 Job 116
Direct materials $2,774 $2,640 $3,650
Direct labor 1,800 1,560 4,300
Applied overhead 1,080 936 2,580
During April, Sangvikar experienced the transactions listed below.
a. Materials purchased on account, $30,000.
b. Materials requisitioned: Job 114, $16,500; Job 115, $12,400; and Job 116, $5,000.
c. Job tickets were collected and summarized: Job 114, 150 hours at $15 per hour; Job 115, 220 hours at $17 per hour; and Job 116, 80 hours at $18 per hour.
d. Overhead is applied on the basis of direct labor cost.
e. Actual overhead was $4,765.
f. Job 115 was completed and transferred to the finished goods warehouse.
g. (1) Job 115 was shipped, and (2) the customer was billed for 140 percent of the cost.
Required:
Prepare journal entries for the April transactions.
Answer:
a.
DR Raw Material Inventory $30,000
CR Accounts Payable $30,000
b.
DR Work in Process Inventory $33,900
CR Raw Material Inventory $33,900
Working
= Job 114 + Job 115 + Job 116
= 16,500 + 12,400 + 5,000 = $33,900
c.
DR Work in Process $7,430
CR Wages Payable $7,430
Working
= (150 * 15) + (220 * 17) + (80 * 18)
= $7,430
d.
DR Work in Process $4,458
CR Manufacturing Overhead $4,458
Working
Overhead as % of Direct labor cost using Job 115 = Applied Overhead / Direct labor = 936/1,560 = 60%
Manufacturing Overhead = Overhead rate * Direct labor
= 60% * 7,430 = $4,458
e.
DR Manufacturing Overhead $4,765
CR Accounts Payable $4,765
f.
DR Finished Goods $23,520
CR Work in Process $23,520
Job 115 costs = Beginning + Material + Labor + Overhead
= (2,640 + 1,560 + 936) + 12,400 + (220 * 17) + (220 * 17 * 60%)
= $23,520
g.
DR Cost of Goods sold $23,520
CR Finished Goods $23,520
DR Accounts Receivable $32,928
CR Cost of Goods sold $32,928
Working
= 23,520 * 140%
= $32,928