Bond Company adopted the dollar-value LIFO inventory method on January 1, 2016. In applying the LIFO method, Bond uses internal cost indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 3 for the two years following the adoption of LIFO: Under the dollar-value LIFO method the inventory at December 31, 2017, should be:________.a) $362,750. b) $355,000. c) $356,150. d) None of these answer choices is correct.
Answers
Answer:
a) $362,750
Explanation:
The computation of inventory is shown below:-
Year Inventory at Change in Cost Layer at Ending
base layer at base current
1-1-2016 304,500 304,500 1.00 304,500
31-12-2016 327,500 23,000 1.05 24,150 328,650
(327,500 - 304,500)
31-12-2017 355,000 27,500 1.24 34,100 362,750
(355,000 - 327,500)
Answer:
A- 362.750
Explanation:
A- 362.750
Related Questions
It is was that 5% product of a lot are defective, if 8 products are selected randomly, what is the probability of getting lessThan 3 defective products?
Answers
Answer:
QUIERES SER MI AMIGO?
ESQUE ANDO BURRIDO
The information shown below is taken from the accounts of Wildhorse Corporation for the year ended December 31, 2020.
Net income $370,000
Amortization of patent 12,000
Proceeds from issuance of common stock 150,000
Decrease in inventory 27,000
Sale of building at a $14,000 gain 84,000
Decrease in accounts payable 12,000
Purchase of equipment 150,000
Payment of cash dividends 28,000
Depreciation expense 54,000
Decrease in accounts receivable 20,000
Payment of mortgage 71,000
Increase in short-term notes payable 8,000
Sale of land at a $7,000 loss 44,000
Purchase of delivery van 30,000
Cash at beginning of year 300,000
Prepare a statement of cash flows for Wildhorse Corporation for the year ended December 31, 2020.
Answers
Answer and Explanation:
Statement of Cash flow attached
Rockeagle Corporation began fiscal Year 2 with the following balances in its inventory accounts.
Raw Materials $30,000
Work in Process 45,000
Finished Goods 14,000
During the accounting period, Rockeagle purchased $125,000 of raw materials and issued $124,000 of materials to the production department. Direct labor costs for the period amounted to $162,000, and manufacturing overhead of $24,000 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $306,000 to produce were completed and transferred to Finished Goods Inventory. Goods costing $301,000 were sold for $400,000 during the period. Selling and administrative expenses amounted to $36,000. Required:
1. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet.
2. Prepare a schedule of cost of goods manufactured and sold and an income statement.
ROCKEAGLE CORPORATION
Schedule of cost of goods manufactured and sold
For the year ended 2018
Beginning raw materials inventory
Purchases
Raw materials available 0
Ending raw materials inventory
Raw materials used 0
Labor
Manufacturing overhead
Total manufacturing costs 0
Beginning work in process inventory
Total work in process inventory 0
Ending work in process inventory
Cost of goods manufactured 0
Beginning finished goods inventory
Goods available for sale 0
Ending finished goods inventory
Cost of goods sold $0
Answers
Answer:
I solved this manually. please try to follow up with the calculations.
ending inventory balance of
a. Raw material = $31000
b. work in progress = $49000
c. finished goods = $19000
Explanation:
for raw material:-
balance at beginning 30,000 + purchase of 125000 - issue of 124000
= 30000+125000-124000
= 31,000
the ending balance is 31000
for work in progress inventory:-
beginning inventory 45000 + 124000 current cost of issued material + 162000 direct wages + overhead 24000
= 45000+124000+162000+24000
= $355000
we subtract 306000 costs of goods manufactured from this value
= $355000-306000
= 49000 wip ending balance
for finished goods inventory:-
begining inventory 14000 + 306000 costs of goods manufactured - 301000 costs of goods sold
= 14000+306000-301000
= $19000
2. schedule for costs of goods manufactured:-
beginning inventory 30000 + purchase 125000 - ending inventory
= 30000+125000-31000
= 124000
124,000+162000 labour cost+24000
total cost of manufacturing = 310000
310000+begining wip of 45,000 - ending inventory of 49000
= 310000+45000-49000
= 306,000 costs of goods manufactured
we add this value to beginning inventory of finished goods-ending inventory
= 306000+14000-19000
= $301000 costs of goods sold
3. income statement:-
revenue of 400000 - 301000 costs of good sold = 99000
99000-36000 selling expenses
= $63000
Cost of Goods Manufactured and Sold Anglin Company, a manufacturing firm, has supplied the following information from its accounting records for the last calendar year:
Direct labor cost $494,890
Purchases of direct materials 377,110
Freight-in on materials 7,300
Factory supplies used 18,130
Factory utilities 52,290
Commissions paid 79,258
Factory supervision and indirect labor 162,840
Advertising 146,240
Materials handling 16,180
Work-in-process inventory, January 1 204,630
Work-in-process inventory, December 31 117,380
Direct materials inventory, January 1 37,040
Direct materials inventory, December 31 36,100
Finished goods inventory, January 1 59,290
Finished goods inventory, December 31 63,240
A. Prepare a cost of goods manufactured statement.
B. Prepare a cost of goods sold statement.
Answers
Answer:
a. Anglin company
Schedule of cost of goods manufactured
Direct Material:
Direct Material, January 1 $37,040
Add: Purchase of direct Material $377,110
Freight in on materials $7,300
Materials available $421,450
Less: Direct Material, Dec 31 $36,100
Direct Materials used in production $385,350
Direct manufacturing Labor $494,890
Manufacturing Overhead
Factory supplies used $18,130
Factory utilities $52,290
Factory supervision and indirect labor $162,840
Materials handling $16,180
Total Manufacturing overhead $249,440
Total Manufacturing Costs added $1,129,680
Add: Work in Process, January 1 $204,630
Less: Work in Process, Dec 31 $117,380
Cost of goods manufactured $1,451,690
b. Anglin Company
Schedule of cost of goods sold
Cost of goods manufactured $1,451,690
Add: Finished goods, January 1 $59,290
Total Cost of goods available for sale $1,510,980
Less: Finished Goods, Dec 31 $63,240
Cost of goods sold $1,447,740
Plastic Company purchased 100 percent of Spoon Company's voting common stock for $666,000 on January 1, 20X4. At that date, Spoon reported assets of $697,000 and liabilities of $241,000. The book values and fair values of Spoon's assets were equal except for land, which had a fair value $116,000 more than book value, and equipment, which had a fair value $94,000 more than book value. The remaining economic life of all depreciable assets at January 1, 20X4, was ten years. Spoon reported net income of $78,000 and paid dividends of $53,000 in 20X4.
Required:
Compute the amount of investment income to be reported by Plastic using the equity method for 20X4.
Answers
Answer: $68,600
Explanation:
Investment Income using Equity method = Plastic company Share in income of Spoon company - Depreciation on Assets
Plastic Company share in Income of Spoon Company = 100% * 78,000 = $78,000
Land cannot be depreciated so only Equipment will be depreciated.
= 94,000/10 years
= $9,400
Investment Income using Equity method = 78,000 - 9,400 = $68,600
The following are selected transactions of Blanco Company. Blanco prepares financial statements quarterly.
Jan. 2 Purchased merchandise on account from Nunez Company, $30,000, terms 2/10, n/30. (Blanco uses the perpetual inventory system.)
Feb. 1 Issued a 9%, 2-month, $30,000 note to Nunez in payment of account.
Mar. 31 Accrued interest for 2 months on Nunez note.
Apr. 1 Paid face value and interest on Nunez note.
July 1 Purchased equipment from Marson Equipment paying $11,000 in cash and signing a 10%, 3-month, $60,000 note.
Sept. 30 Accrued interest for 3 months on Marson note.
Oct. 1 Paid face value and interest on Marson note.
Dec. 1 Borrowed $24,000 from the Paola Bank by issuing a 3-month, 8% note with a face value of $24,000.
Dec. 31 Recognized interest expense for 1 month on Paola Bank note.
Required:
a. Prepare journal entries for the listed transactions and events.
b. Post to the accounts Notes Payable, Interest Payable, and Interest Expense.
c. Show the balance sheet presentation of notes and interest payable at December 31.
d. What is total interest expense for the year?
Answers
Answer:
Blanco Company
a. Journal Entries
Jan. 2:
Debit Inventory $30,000
Credit Accounts Payable (Nunez Company) $30,000
To record the purchase of merchandise, terms 2/10, n/30.
Feb 1:
Debit Accounts Payable (Nunez Company) $30,000
Credit Notes Payable (Nunez Company) $30,000
To record the issue of 9%, 2-month note in payment of account.
March 31:
Debit Interest Expense $450
Credit Interest Payable $450
To accrue 2 months interest expense.
Apr. 1:
Debit Notes Payable (Nunez Company) $30,000
Debit Interest Payable $450
Credit Cash Account $30,450
To record the payment on notes payable.
July 1:
Debit Equipment $71,000
Credit Cash $11,000
Credit Notes Payable $60,000
To record the purchase of equipment and signing a 10% , 3-month note.
Sept. 30:
Debit Interest Expense $1,500
Credit Interest Payable (Marson Equipment) $1,500
To accrue interest expense for 3 months.
Oct. 1:
Debit Notes Payable (Marson Equipment) $60,000
Debit Interest Payable (Marson Equipment) $1,500
Credit Cash Account $61,500
To record payment on account.
Dec. 1:
Debit Cash Account $24,000
Credit Notes Payable (Paola Bank) $24,000
To record the issue of a 3-month, 8% note.
Dec. 31
Debit Interest Expense $160
Credit Interest Payable $160
To accrue interest expense for one month.
b. General Ledger for Notes Payable, Interest Payable, and Interest Expense
Notes Payable
Date Accounts Title Debit Credit
Feb. 1 Accounts Payable (Nunez Company) $30,000
Apr. 1 Cash $30,000
July 1 Equipment $60,000
Oct. 1 Cash $60,000
Dec. 1 Cash $24,000
Interest Payable
Date Accounts Title Debit Credit
Mar. 31 Interest Expense $450
Apr. 1 Cash $450
Sept 30 Interest Expense $1,500
Oct. 1 Cash $1,500
Dec. 31 Interest Expense $160
Interest Expense
Date Accounts Title Debit Credit
Mar. 31 Interest Payable $450
Sept 30 Interest Payable $1,500
Dec. 31 Interest Payable $160
Dec. 31 Income Summary $2,110
c. Balance Sheet presentation of notes and interest payable at December 31:
Current Liabilities:
Notes Payable $24,000
Interest Payable $160
d. Total interest expense for the year:
= $2,110
Explanation:
In this case, Blanco Company uses adjusting entries to accrue expenses, especially interest expense with their corresponding payables.
Journal entries are the bookkeeping entries that are recorded to maintain the record of the transactions of the firm. It records all the debit and credit transactions of the company.
The Journal entries, ledger accounts, and the balance sheet has been attached below.
The total interest expense for the year is $2,110
To know more about the various financial statements, refer to the link below:
https://brainly.com/question/13795222
Cortina Company accumulates the following adjustment data at December 31. Indicate (1) the type of adjustment (prepaid expense, accrued revenue, and so on) and (2) the status of the accounts before adjustment (overstated or understated). (Enter your answers in alphabetical order.) Item (1) Type of Adjustment (2) Accounts Before Adjustment a. Supplies of $400 are on hand. Supplies account shows $1,600 balance. select the type of adjustment select the status of the accounts before adjustment select the status of the accounts before adjustment b. Services performed but unbilled total $700. select the type of adjustment select the status of the accounts before adjustment select the status of the accounts before adjustment c. Interest of $300 has accumulated on a note payable. select the type of adjustment select the status of the accounts before adjustment select the status of the accounts before adjustment d. Rent collected in advance totaling $1,100 has been earned.
Answers
Answer:
Cortina Company
Indication of the type of adjustment and the status of the accounts before the adjustment:
Type of adjustment (prepaid Status of the accounts before the
expense, accrued revenue, etc.) adjustment:
a. Usage adjustment Supplies Overstated by $1,200
b. Accrued Revenue Service Revenue understated by $700
c. Accrued Expense Interest Expense understated by $300
d. Earned Revenue Rent Revenue understated by $1,100
and Deferred Revenue overstated by
the same amount.
Explanation:
Cortina Company must recognize all revenue and expenses, whether cash has exchanged hands or not, provided they have been earned or incurred within the stated accounting period. This is in accordance with the accrual concept and the matching principle of generally accepted accounting principles.
Cook Co. reports the following information for the current year:
Saper Sandpaper $ 17,000
Direct labor 680,000
Small tools 100,000
Materials inventory, Jan 1 120,000
Materials inventory, Dec 31 86,000
Materials purchased 980,000
Machine helpers’ salaries 86,000
Finished Goods, Jan 1 210,000
Finished Goods, Dec 31 400,000
Sales 4,000,000
Leasing costs, plant 120,000
Work-in-process, Jan 1 30,000
Work-in-process, Dec 31 20,000
Depreciation, plant 70,000
Sales Commissions 200,000
Property taxes, plant 10,000
Insurance, factory equipment 5,000
Sales salaries 180,000
Advertising costs 150,000
Office administration costs 250,000
Units completed 82,000
Compute the Net Income (loss) assuming that Cook Co. is in the 30% tax bracket?
a) $1,454,600
b) $1,431,000
c) $1,298,000
d) $908,600
Answers
Answer:
Cook Co.
Net Income
d) $908,600
Explanation:
a) Data and Calculations:
Cook Co. Information for the current year:
Materials inventory, Jan 1 120,000
Materials purchased 980,000
Materials inventory, Dec 31 86,000
Materials used 1,014,000
Work-in-process, Jan 1 30,000
Materials used 1,014,000
Direct labor 680,000
Total overhead costs 408,000
Work-in-process, Dec 31 (20,000 )
Cost of production $2,112,000
Finished Goods, Jan 1 210,000
Cost of production 2,112,000
Finished Goods, Dec 31 (400,000 )
Cost of Goods Sold $1,922,000
Manufacturing overhead costs:
Saper Sandpaper $ 17,000
Machine helpers’ salaries 86,000
Small tools 100,000
Leasing costs, plant 120,000
Depreciation, plant 70,000
Property taxes, plant 10,000
Insurance, factory equipment 5,000
Total overhead costs $408,000
Sales Commissions 200,000
Sales salaries 180,000
Advertising costs 150,000
Office administration costs 250,000
Total expenses $780,000
Sales 4,000,000
Cost of Goods Sold $1,922,000
Gross profit $2,078,000
Less expenses 780,000
Profit before tax 1,298,000
Income Tax (30%) 389,400
Net Income $908,000
Suppose someone offered to sell you a note calling for the payment of $1,000 15 months from today. They offer to sell it to you for $850. You have $850 in a bank time deposit which pays a 7% effective annual interest rate (compounding), and you plan to leave the money in the bank unless you buy the note. The note is not risky--you are sure it will be paid on schedule. Should you buy the note?
Check the decision in three ways:
a. By comparing your future value if you buy the note versus leaving your money in the bank.
b. By comparing the PV of the note with your current bank account.
c. By comparing the EFF% on the note with that of the bank account.
Answers
Answer:
1. The future value = 1000
Now we are to calculate the future value of bank savings
= 850x(1+0.07)^15/12
= 850x1.07^1.25
=$925.0147
So it is better to buy note.
2. Present value = 1000/(1.07^15/12)
= 1000/1.08825252622
= $918.9
For one to get same amount of money then savings would have to be increased. So we choose note
3. EAR = EFF%
= 1000/(850^12/15)-1
= 13.88%
We have EAR on bank as 7% and that of note as 13.88%. note is higher so we choose note
The assembly division of , Inc. uses the weighted-average method of process costing. Consider the following data for the month of May : LOADING...(Click the icon to view the data.) Requirement Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Enter the physical units first, then calculate the equivalent units. Physical Flow of Production Units Work in process beginning 90 Started during current period 515 To account for 605 Completed and transferred out during current period 465 Work in process, ending 140 Accounted for 605 Equivalent units of work done to date Equivalent Units Direct Conversion Materials Costs
Answers
Answer:
Equivalent units of work done to date
a. Direct Conversion = 556 unit
b. Materials Costs = 514 unit
Explanation:
Note: Attached is the full question for better understanding
Equivalent units
Physical Direct Conversion
units materials costs
Work in Process beginning 90
Started during current period 515
To account for 605
Completed and transferred 465 465 465
out during current period
Work in Process,ending 140 91 49
Accounted for 605
Equivalent units of work done to date 556 514
Workings
Work in Process,ending:
Direct materials = 140*65% = 91
Conversion costs = 140*35% = 49
Ajax Beverages holds 40% of the stock of Bubbly Bottler, acquired at a cost equal to 40% of Bubbly's book value at the time of purchase. This is a significant influence investment. At the start of 2021, Ajax reports the investment at a balance of $100,000. In 2021, Bubbly reports net income of $1,000 and $50 in other comprehensive income. Bubbly pays no dividends in 2021. The market value of Ajax's investment in Bubbly stock increases by $500 during 2021.
At what amount does Ajax report the investment at the end of 2021?
a. $100,500
b. $100,420
c. $100,400
d. $100,450
Answers
Answer:
b. $100,420
Explanation:
Amount paid for investment $100,000
Add: Share of net income $400
($1000*40%)
Add: Share of other comprehensive income $20
($50*40%)
Investment at the end of 2021 $100,420
For journal entries, indicate the letter of the explanation that most closely describes it in the space beside each entry. You can use letters more than once.
To record receipt of unearned revenue.
To record this period's earning of prior unearned revenue.
To record payment of an accrued expense.
To record receipt of an accrued revenue.
To record an accrued expense.
To record an accrued revenue.
To record this period's use of a prepaid expense.
To record payment of a prepaid expense.
To record this period's depreciation expense.
Explanation Journal entries Debit Credit
Insurance expense 1900
Prepaid Insurance 1900
Salaries payable 3900
Cash 3900
Prepaid Rent 3200
Cash 3200
Salaries expense 4900
Salaries payable 4900
Interest Receivable 1900
Interest Revenue 1900
Cash 3900
Accounts Receivable 3900
Cash 5900
Unearned Professional Fees 5900
Answers
Answer:
Explanation Journal entries Debit Credit
Insurance expense 1900
Prepaid Insurance 1900
To record this period's use of a prepaid expense.
Salaries payable 3900
Cash 3900
To record payment of an accrued expense.
Prepaid Rent 3200
Cash 3200
To record payment of a prepaid expense.
Salaries expense 4900
Salaries payable 4900
To record an accrued expense.
Interest Receivable 1900
Interest Revenue 1900
To record receipt of an accrued revenue.
Cash 3900
Accounts Receivable 3900
To record receipt of an accrued revenue.
Cash 5900
Unearned Professional Fees 5900
To record receipt of unearned revenue.
Bank's Balance Sheet
Assets Liabilities and Owners' Equity
Reserves $175 Deposits $1,400
Loans $700 Debt $225
Securities $875 Capital (owners' equity) $125
Suppose the owners of the bank contribute an additional $200 from their own funds and use it to buy securities in the name of the bank. This would increase the securities account andincrease thedebt account. This would also bring the leverage ratio from its initial value of14.00 to a new value of . Which of the following do bankers take into account when determining how to allocate their assets?
A. The return on each asset
B. The total value of liabilities
C. The size of the monetary base
Answers
Answer:
1. increase securities , increase owners equity
2. Leverage ratio is 5.2
3. A. The return on each asset
Explanation:
1. If the bank owner decide to imcrease assets by buying new securities through additional funds from them, then securities assets increases by $200 and owners equity increases by $ 200 to balance the balance sheet
2. Leverage ratio= total assets divided by owners equity
= 1950/375= 5.2 ( owners equity increases by $200 to make $375)
3. Banks consider return on assets to allocate asset resources because they weigh risk and return and allocate to resources on the basis of greatest optimal risk return combination
1. The investment of an additional $200 by the owners of the bank and the purchase of securities in the name of the bank would increase the securities account and increase the Capital account by $200, respectively.
2. This additional investment would also bring the leverage ratio from its initial value of 14.00 ($1,750/$125) to a new value of 6.00 ($1,950/$325).
What is the bank's leverage ratio?The leverage ratio is computed as the ratio of the total assets to the equity capital.
Thus, the old leverage ratio is 14 ($1,750/$125) just as the new leverage ratio is 6 ($1,950/$325).
3. The factor that bankers take into account when determining how to allocate their assets is A. The return on each asset.
What is the return on assets?The return on assets is a financial measure indicating the profitability of an asset relative to other assets.
Data and Calculations:Bank's Balance Sheet
Assets Liabilities and Owners' Equity
Reserves $175 Deposits $1,400
Loans $700 Debt $225
Securities $875 Capital (owners' equity) $125
Total $1,750 Total $1,750
Bank's New Balance Sheet
Assets Liabilities and Owners' Equity
Reserves $175 Deposits $1,400
Loans $700 Debt $225
Securities $1,075 Capital (owners' equity) $325
Total $1,950 Total $1,950
Thus, the factor that bankers consider in determining the allocation of assets is Option A.
Learn more about the bank's leverage ratio at https://brainly.com/question/14002613
Exam Style Questions
TelCom owns a phone network and provides phone network services to many
consumers. The business does not manufacture phones and it does not own
retail stores selling them. Senior managers at TelCom are considering a takeover
of either a phone manufacturer or a chain of phone shops. TelCom employs
4000 workers and, last year, recorded total sales of $300 million. In contrast,
the largest manufacturer of mobile phones, PhonTec, has 450 workers and
recorded total sales last year of $1200 million.
a) What is meant by 'takeover'?
[2]
b) Identify two other ways a business might grow apart from takeovers. (2)
c) Identify and explain two reasons why external groups would be
interested in measuring the size of businesses such as TelCom.
[4]
d) Identify and explain two possible reasons why senior managers at
Telcom want to expand the business.
[6]
e) How should TelCom expand - taking over a phone manufacturer or a
chain of shops selling mobile phones? Justify your answer.
[6]
Answers
Answer:
a) What is meant by 'takeover'?
In this context, a takeover means vertical integration, either backwards (buying a supplier, in this case, the phone manufacturer), or forwards (buying a distributor, in this case, the retail store).
b) Identify two other ways a business might grow apart from takeovers.
Businesses can grow by internal expansion: by pouring their own resources into a new business division, a new product, a new sector, and so on.
Businesses can also grow by forming strategic alliances with other companies.
c) Identify and explain two reasons why external groups would be interested in measuring the size of businesses such as TelCom.
Investors, as an external group, are interested in measuring the size of the business in order to determine is value, and decide if investing in the business is a good decision or not.
The government, as an external group, is interested in measuring the size of the business simply to determine how many taxes to impose on it.
d) Identify and explain two possible reasons why senior managers at
Telcom want to expand the business.
They may want to expand the business because they want to increase profits, and larger companies almost always have larger profits than smaller ones.
They also may want to expand the business in order to meet some other corporate strategy goal, like reducing costs, or achieving a specific amount of sales.
e) How should TelCom expand - taking over a phone manufacturer or a
chain of shops selling mobile phones? Justify your answer.
They should do what is most profitable. Apparently, the retail business is less profitable than the mobile manufacturing business, so under this scenario, TelCom should integrate backwards, and buy the manufacturer.
The chart of accounts used by Norton Printing Company is listed below.
You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(s) in the appropriate boxes.
CHART OF ACCOUNTS
1 Cash 8 Common Stock
2 Accounts Receivable 9 Retained Earnings
3 Paper Supplies 10 Dividends
4 Copy Machines 11 Service Revenue
5 Accounts Payable 12 Advertising Expense
6 Note Payable 13 Rent Expense
7 Unearned Revenue
Number(s) Number(s)
of account(s) of account(s)
debited credited
1. Stockholders invest $90,000 cash to start the business.
2. Purchased three digital copy machines for $400,000, paying $100,000 cash and signing a 5-year, 6% note for the remainder.
3. Purchased $5,000 paper supplies on credit.
4. Cash received for photocopy services amounted to $7,000.
5. Paid $500 cash for radio advertising.
6. Paid $800 on account for paper supplies purchased in transaction 3.
7. Dividends of $1,500 were paid to stockholders.
8. Paid $1,200 cash for rent for the current month.
9. Received $2,000 cash advance from a customer for future copying.
10. Billed a customer for $450 for photocopy services completed.
Answers
Answer:
Indication of accounts to be debited and credited:
Transaction Number(s) Number(s)
of account(s) of account(s)
debited credited
1. 1 8
2. 4 1 and 6
3. 3 5
4. 1 11
5. 12 1
6. 5 1
7. 10 1
8. 13 1
9. 1 7
10. 2 11
Explanation:
a) Data:
CHART OF ACCOUNTS
1 Cash 8 Common Stock
2 Accounts Receivable 9 Retained Earnings
3 Paper Supplies 10 Dividends
4 Copy Machines 11 Service Revenue
5 Accounts Payable 12 Advertising Expense
6 Note Payable 13 Rent Expense
7 Unearned Revenue
b) The Chart of Accounts is a list of the Assets, Liabilities, Equity, Revenue, and Expense accounts that an organization uses to record its business transactions. They accumulate and summarize business transactions, making them reportable in good accounting formats.
Each of the following statements is justified by a fundamental quality or an enhancing of quality accounting. Match the letter next to each statement corresponding to the quality involved.
A. Comparability D. Consistency
B. Understandability E. Relevance
C. Verifiable F. Faithful representation
1. A company uses the same accounting principles from year to year.
2. Information that is free from error.
3. Information presented in a clear and concise fashion.
4. Information that makes a difference in a decision.
5. Information accurately depicts what really happened.
Answers
Answer:
Explanation:
1. A company uses the same accounting principles from year to year.(CONSISTENCY)
2. Information that is free from error.(VERIFIABLE)
3. Information presented in a clear and concise fashion.(UNDERSTANDABILITY)
4. Information that makes a difference in a decision.(RELEVANCE)
5. Information accurately depicts what really happened.(FAITHFUL REPRESENTATION)
To have a standard financial statement in accounting , there's are some qualities that are needed to put into consideration such as fundamental qualities as well as Enhancing quality of accounting. fundamental qualities are needed to obtain relevancy and reliability in preparing accounting statement.Enhancing quality of accounting are also to have
Comparability,Consistency, Understandability, Relevance, Verifiable
as well as Faithful representation
The following questions practice these skills:
Draw a linear production possibilities frontier.
Draw a bowed production possibilities frontier.
Compute opportunity costs from a production possibilities frontier.
Identify feasible and infeasible and efficient and inefficient points from a production possibilities frontier.
Identify comparative and absolute advantage from a production possibilities frontier.
Describe trade based on comparative advantage.
Identify positive and normative statements.
Two important industries on the island of Bermuda are fishing and tourism. According to data from the World Resources Institute and the Bermuda Department of Statistics, in the year 2000 the 307 registered fishermen in Bermuda caught 286 metric tons of marine fish. And the 3,409 people employed by hotels produced 538,000 hotel stays (measured by the number of visitor arrivals). Suppose that this production point is efficient in production. Assume also that the opportunity cost of one additional metric ton of fish is 2,000 hotel stays and that this opportunity cost is constant (the opportunity cost does not change).
a. If all 307 registered fishermen were to be employed by hotels (in addition to the 3,409 people already working in hotels), how many hotel stays could Bermuda produce?
b. If all 3,409 hotel employees were to become fishermen (in addition to the 307 fishermen already working in the fishing industry), how many metric tons of fish could Bermuda produce?
c. Draw a production possibility frontier for Bermuda, with fish on the horizontal axis and hotel stays on the vcrtical axis, and label Bermuda’s actual production point for the year 2000.
Answers
Answer:
a. If all 307 registered fishermen were to be employed by hotels (in addition to the 3,409 people already working in hotels), how many hotel stays could Bermuda produce?
since the opportunity cost is constant, then if all 307 fishermen decided to become hotel workers, then the total number of hotel stays would be (286 tons of fish x 2,000 stays per ton) + 538,000 stays = 1,110,000 stays
b. If all 3,409 hotel employees were to become fishermen (in addition to the 307 fishermen already working in the fishing industry), how many metric tons of fish could Bermuda produce?
total number of fish caught = (538,000 stays / 2,000 tons per stay) + 286 tons of fish = 555 tons of fish caught
c. attached graph
Greenwood Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:
Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity
Machining Machine-hours $ 228,000 12,000 MHs
Machine setups Number of setups $ 40,000 100 setups
Production design Number of products $ 74,000 2 products
General factory Direct labor-hours $ 288,000 12,000 DLHs
Activity Measure Product Y Product Z
Machining 7,000 5,000
Number of setups 40 60
Number of products 1 1
Direct labor-hours 7,000 5,000
Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your intermediate calculations and final answers to 2 decimal places.)
Answers
Answer:
Product Y 58%
Product Z 42%
Explanation:
Calculation for the percentage of the General Factory cost is assigned to Product Y and Product Z
First step is to find the General factory activity rate
General factory activity rate =$ 288,000/12,000DLHs
General factory activity rate= 24.00
Second step is to Compute Overhead allocation: for Product Y and Product Z
Overhead
Product Y(7,000*24.00) 168,000
Product Z(5,000*24) 120,000
Total 288,000
Last step is to Compute the percentage of the General Factory cost is assigned to Product Y and Product Z
Overhead Percentage of total
Product Y 168,000/288,000
Product Y=0.58*100
Product Y =58%
Product Z 120,000/288,000
Product Z=0.42*100
Product Z=42%
Therefore the percentage of the General Factory cost assigned to Product Y is 58% and Product Z is 42%
Randel Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below:
Cost Drivers by Product Activity Cost Pool Cost Driver Estimated Overhead Budget Deluxe Ordering and Receiving Orders $130,000 600 400 Machine Setup Setups 297,000 500 400 Machining Machine hours 1,000,000 150,000 100,000 Assembly Parts 1,600,000 1,200,000 800,000 Inspection Inspections 300,000 550 450 Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. (Round overhead cost per unit to 2 decimal places, e.g. 12.25 and cost assigned to 0 decimal places, e.g. 2,500.)
Answers
Answer:
Overhead Cost
Activity Cost Pool Cost per activity Budget Delux
Ordering and receiving $130 $78,000 $52,000
Machine setup $330 $165,000 $132,000
Machining $4.0 $600,000 $400,000
Assembly $0.8 $960,000 $640,000
Inspection $300 $165,000 $135,000
$1,968,000 $1,359,000
Budget Cost
Total Overhead cost $1,968,000 $1,359,000
Units 700,000 200,000
Overhead cost per unit $2.81 $6.80
Renata and Danuta would like to form a business providing take-out meals to homebound destitute residents of Las Vegas. The meals would be ordered from a menu provided by their company and prepared and delivered by Renata and Danuta. They hope to eventually have their business become international in scope. They will need to raise $100,000 to get their business running and will eventually have much greater capital needs. From the following choices, select the best form of business Renata and Danuta could adopt?
A. Nonprofit corporationB. Limited-liability companyC. SyndicateD. Joint venture
Answers
Answer: Non profit Corporation
Explanation:
The best form of business Renata and Danuta could adopt is a nonprofit corporation. It should be noted that a nonprofit corporation is a corporation that is being formed for educational, charitable, religious, or scientific purpose.
Since Renata and Danuta would like to form a business providing take-out meals to homebound destitute, this is a charitable purpose. A non-profit corporation can be a charity, research institute, organization, a church, school, volunteer services organization, etc.
Answer:
answer is A
a non profit corporation
Explanation:
a nonprofit organization that do not earn profits. the revenue that is earned is usually used for the buisness or for donations.
these types of businesses are tax exempt , that are for churches, charities, schools, religious events. Renata and Danuta are running non profit organizations
hope this helps!
Harper, Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2017, for $322,000 in cash. The book value of Kinman net assets on that date was $665,000, although one of the company's buildings, with a $70,800 carrying amount, was actually worth $114,300. This building had a 10-year remaining life. Kinman owned a royalty agreement with a 20-year remaining life that was undervalued by $96,500. Kinman sold inventory with an original cost of $44,100 to Harper during 2017 at a price of $63,000. Harper still held $27,600 (transfer price) of this amount in inventory as of December 31, 2017. These goods are to be sold to outside parties during 2018. Kinman reported a $55,800 net loss and a $26,400 other comprehensive loss for 2017. The company still manages to declare and pay a $12,000 cash dividend during the year. During 2018, Kinman reported a $48,200 net income and declared and paid a cash dividend of $14,000. It made additional inventory sales of $104,000 to Harper during the period. The original cost of the merchandise was $65,000. All but 30 percent of this inventory had been resold to outside parties by the end of the 2018 fiscal year. Prepare all journal entries for Harper for 2017 and 2018 in connection with this investment. Assume that the equity method is applied.
Answers
Answer:
Please find attached.
Explanation:
Please find attached the journal entries per the attached question
An economy that has government collecting taxes and making regulations is called a
Answers
Answer:
If I recall it may be called Revenue.
Explanation:
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Assume the market for wine is functioning at its equilibrium. For each of the following situations, say whether the new market outcome will be efficient or inefficient.
a. A new report shows that wine is good for heart health. Efficient
b. The government sets a minimum price for wine, which increases the current price. Inefficient
c. An unexpected late frost ruins large crops of grapes. Inefficient
d. Grape pickers demand higher wages, increasing the price of wine.
Answers
Answer:
Efficient
Inefficient
Efficient
Efficient
Explanation:
a. As a result as the report, the demand for wine would increase. As a result, a new equilibrium would be established
b. When the government sets a minimum price for a good or service, it is known as a price floor. Setting a minimum price would lead to the market moving away from equilibrium. The supply of wine would exceed the demand for wine
c, The damage of grapes would lead to a fall in supply. A new equilibrium would be established
d. An increase in the price of wine would lead to a reduction in the demand for wine. A new equilibrium would be established
Entries for Stock Dividends Zurich Corporation has 17,000 shares of $50 par common stock outstanding. On June 8, Zurich Corporation declared a 4% stock dividend to be issued August 12 to stockholders of record on July 13. The market price of the stock was $69 per share on June 8. Journalize the entries required on June 8, July 13, and August 12. For a compound transaction, if an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank.Aug. 2 Stock Dividends Stock Dividends Distributable Paid-In Capital in Excess of Par-Common Stock Sept. 15 No entry required No entry required Oct. 8 Stock Dividends Distributable Common Stock
Answers
Answer:
Date Account Title and Description Debit Credit
June 8 Stock Dividends $46,920
Stock Dividends Distributable $34,000
Paid-in-Capital in Excess of Par $12,920
common stock
(Being Dividend declared recorded)
July 13 No entry required
No entry required
Aug 12. Stock Dividends Distributable $34,000
Common stock $34,000
(Being Dividend declared as par value recorded)
Working Notes:
Stock dividend = 17,000 * 4% * $69 = $46,920
Stock dividend distributable = 17,000 * 4% * $50 = $34,000
Paid in capital in excess of par - Common stock = $46,920 - $34,000 = $12,920
A company is considering constructing a plant to manufacture a proposed new product. The land costs $, the building costs $, the equipment costs $, and $ additional working capital is required. It is expected that the product will result in sales of $ per year for years, at which time the land can be sold for $, the building for $, and the equipment for $. All of the working capital would be recovered at the EOY . The annual expenses for labor, materials, and all other items are estimated to total $. If the company requires a MARR of % per year on projects of comparable risk, determine if it should invest in the new product line. Use the AW method.
a) The AW is $.........
b) According to the AW decision rule the investment in the new product line .. (is not/is) economically justified.
Answers
Complete question :
A company is considering constructing a plant to manufacture a proposed new product. The land costs $350,000, the building costs $600,000, the equipment costs $250,000, and $150,000 additional working capital is required. It is expected that the product will result in sales of $900,000 per year for 10 years, at which time the land can be sold for $450,000, the building for $400,000, and the equipment for $50,000. All of the working capital would be recovered at the EOY 10. The annual expenses for labor, materials, and all other items are estimated to total $500,000. If the company requires a MARR of 15% per year on projects of comparable risk, determine if it should invest in the new product line. Use the AW method.
Answer: $182,800
Explanation:
Given the following :
land costs = $350,000
building costs = $600,000
equipment costs = $250,000
additional working capital = $150,000
Expected sales per year for 10 years = $900,000
Salvage value After (10years):
Cost of land = $450,000
Building = $400,000
Equipment = $50,000
All working capital will be recovered at end of year, Hence, working capital will be $150,000
Annual expenses = $500,000
MARR = 15% per annum
Total amount invested = $(350,000 + 600,000 + 250,000 + 150,000) = $1,350,000
Expected sales per Annum = annual revenue = $900,000
Expenditure per year = $500,000
Net income = Revenue - Expenditure
Net income = $900,000 - $500,000 = $400,000
Worth or valuation of investment after 10 years :
($450,000 + $50,000 + $400,000 + $150,000)
= $1,050,000
Hence,
Capital recovery factor : (A/P, 15%, 10) = 0.199
Sinking fund table : (A/F, 15%, 10) =0.049
NET ANNUAL WORTH :
-Initial investment(A/P, 15%, 10) + annual net income + salvage value(A/F, 15%,10)
= - 1,350,000(0.199) + 400,000 + 1,050,000(0.049)
= $182,800
The investment is economically justified as the net annual worth yields a positive value.
The City of Troy collects its annual property taxes late in its fiscal year. Consequently, each year it must finance part of its operating budget using tax anticipation notes. The notes are repaid upon collection of property taxes. On April 1, the city estimated that it will require $2,500,000 to finance governmental activities for the remainder of the fiscal year. On that date, it had $770,000 of cash on hand and $830,000 of current liabilities. Collections for the remainder of the year from revenues other than current property taxes and from delinquent property taxes, including interest and penalties, were estimated at $1,100,000.
Required:
Calculate the estimated amount of tax anticipation financing that will be required for the remainder of the current fiscal year. Assume that on April 2, the City of Troy borrowed the amount calculated in part a by signing tax anticipation notes bearing 6 percent per annum to a local bank. Record the issuance of the tax anticipation notes in the general journals of the General Fund and governmental activities at the government-wide level. By October 1, the city had collected a sufficient amount of current property taxes to rep
Answers
Answer:
A. $1,460,000
B. General Fund:
Dr Cash $1,460,000
Cr Tax Anticipation Notes Payable $1,460,000
Governmental Activities:
Dr Cash $1,460,000
Cr Tax Anticipation Note Payable $1,460,000
C. General Fund:
Dr Tax Anticipation Note Payable $1,460,000
Dr Expenditures $43,800
Cr Cash $1,503,800
Governmental Activities:
Dr. Tax Anticipation Note Payable $1,460,000
Dr Expenses-General Government $43,800
Cr Cash $1,503,800
Explanation:
A. Calculatation for the estimated amount of tax anticipation financing
Estimated Expenditures Requirements:
Budgeted Expenditure, remainder $2,500,000
Add Current Liabilities Payable $830,000
Total $3,330,000
Estimated Resources Available:
Cash on hand $770,000
Add Collection of budgeted revenues and delinquent property taxes $1,100,000
Total $1,870,000
Estimated Anticipation Note Financing $1,460,000
($3,330,000-$1,870,000)
Therefore the Estimated Anticipation Note Financing is $1,460,000
B. Preparation of the journal entry to record the issuance of the tax anticipation notes in the general journals
General Fund:
Dr Cash $1,460,000
Cr Tax Anticipation Notes Payable $1,460,000
( To record the insuance of tax anticipation note payable)
Governmental Activities:
Dr Cash $1,460,000
Cr Tax Anticipation Note Payable $1,460,000
C. Preparation of the general journals of the General Fund and governmental activities
General Fund:
Dr Tax Anticipation Note Payable $1,460,000
Dr Expenditures $43,800
(1,460,000*6%*6/12)
Cr Cash $1,503,800
(1,460,000+43,800)
Governmental Activities:
Dr. Tax Anticipation Note Payable $1,460,000
Dr Expenses-General Government $43,800
(1,460,000*6%*6/12)
Cr Cash $1,503,800
(1,460,000+43,800)
(Being the payment for tax and interest)
Which term refers to the money you get to keep from your business activities once your expenses are paid?
Revenue
Funds
Profit
Dividends
Answers
Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes:
• Purchased $605,700 of materials.
• Used $520,900 of direct materials in production.
• Incurred $448,000 of direct labor wages.
• Applied factory overhead at a rate of 80% of direct labor cost.
• Transferred $1,274,200 of work in process to finished goods.
• Sold goods with a cost of $1,211,400.
• Revenues earned by selling bikes, $2,168,400.
• Incurred $520,900 of selling expenses.
• Incurred $193,800 of administrative expenses.
a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inventory method.
Rushmore Biking Inc.
Income Statement
For the Month Ended February 28
Selling and administrative expenses:
Total selling and administrative expenses
b. Determine the inventory balances on February 28, the end of the first month of operations,
Materials inventory, February 28
Work in process inventory, February 28
Finished goods inventory, February 28
Get more help from Chegg
Answers
Answer:
a.Net Income $ 242,300
Materials inventory, February 28= $ 84,800
Work in process inventory, February 28= $ 53,100
Finished goods inventory, February 28= $ 62800
Explanation:
Rushmore Biking Inc.
Income Statement
For the Month of February
Debit Credit
Sales Revenue $ 2,168,400
Direct Materials $520,900
Direct Labor $448,000
Applied factory overhead $ 358,400
Total Manufacturing Costs $ 1327,300
Less Closing Work In Process $ 53,100
Cost Of Goods Manufactured $1,274,200
Less Finished Goods Ending Inventory $ 62800
Cost Of Goods Sold ($1,211,400)
Gross Profit $ 957,000
Less
Selling Expenses $520,900
Administrative Expenses $193,800 ( $ 714,700)
Net Income $ 242,300
b.
Materials inventory, February 28= Purchased Less Used
= $605,700- $520,900 = $ 84,800
Work in process inventory, February 28= Total Manufacturing Costs Less Cost Of Goods Manufactured
$ 1327,300-$1,274,200= $ 53,100
Finished goods inventory, February 28 = Cost Of Goods Manufactured Less Cost Of Goods Sold
$1,274,200 - $1,211,400= $ 62800
For each separate case below, follow the 3-step process for adjusting the accured expense account: Step 1: Determine what the current account balance equal. Step 2: Determine what the current account balance should equal. Step 3: Record adjusting journal entries for each of the following for year ended December 31. Assume no other adjusting entries are made during the year.
A. Salaries Payable. At year-end, salaries expense of $15,500 has been incurred by the company, but is not yet paid to employees.
B. Interest Payable. At its December 31 year-end, the company owes $250 of interest on a line-of-credit loan. That interest will not be paid until sometime in January of the next year.
C. Interest Payable. At its December 31 year-end, the company holds a mortgage payable that has incurred $875 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year.
Answers
Answer:
A. 1. Salaries Payable = $0
2. Salaries Payable should equal $15,500
3. Debit Salaries Expense $15,500
Credit Salaries Payable $15,500
To accrue unpaid salaries expense for the year.
B. 1. Interest Payable = $0
2. Interest Payable should equal $250
3. Debit Interest Expense $250
Credit Interest Payable $250
To accrue unpaid interest expense for the year.
C. 1. Interest Payable = $0
2. Interest Payable should equal $875
3. Debit Interest Expense $875
Credit Interest Payable $875
To accrue unpaid mortgage interest expense for the year.
Explanation:
Adjusting journal entries are used to recognize transactions and events that do not have any cash basis because they are required under the accrual basis of accounting. The accrual basis requires that transactions are recorded in the period they occur without reference to cash payment or receipt.
An assisted-living facility provides services in the form of residential space, meals, and other occupant assistance (OOA) to its occupants. The facility currently uses a traditional cost accounting system that charges each occupant a daily rate equal to the facility’s annual cost of providing residential space, meals, and OOA divided by total occupant days. However, an activity-based costing (ABC) analysis has revealed that occupants’ use of OOA varies substantially. This analysis determined that occupants could be grouped into three categories (low, moderate, and high usage of OOA) and that the activity driver of OOA should be nursing hours. The driver of the residential space and meals is occupant days. The following quantitative information was also provided: Annual Annual Occupant Category Occupant Days Nursing Hours Low usage 36,000 90,000 Medium usage 18,000 90,000 High usage 6,000 120,000 60,000 300,000 The total annual cost of OOA was $7.5 million, and the total annual cost of providing residential space and meals was $7.2 million. Accordingly, the ABC analysis indicates that the daily costing rate for providing residential space, meals, and OOA should be:__________
Answers
Answer:
total cost for:
low usage category = $6,570,000medium usage category = $4,410,000high usage category = $3,720,000Explanation:
occupant category annual occupant days annual nursing hours
Low usage 36,000 90,000
Medium usage 18,000 90,000
High usage 6,000 120,000
Total 60,000 300,000
using ABC costing, the rate per occupant day = $7,200,000 / 60,000 = $120 per day
using ABC costing, the rate per nursing hour = $7,500,000 / 300,000 = $25 per nursing hour
total cost for:
low usage category = (36,000 x $120) + (90,000 x $25) = $6,570,000
medium usage category = (18,000 x $120) + (90,000 x $25) = $4,410,000
high usage category = (6,000 x $120) + (120,000 x $25) = $3,720,000