Answer:
Brooks Foundry
1. Predetermined manufacturing overhead rate
= $8
2. Allocated manufacturing overhead = Overhead rate multiplied by actual machine hours
= $8 * 54,500
= $436,000
3. Manufacturing overhead incurred during the year = $517,500
Manufacturing overhead is underallocated at the end of the year.
The underallocation = $81,500 ($517,500 - 436,000)
4. The jobs were undercosted by $81,500.
Explanation:
a) Data and Calculations:
Estimated costs:
Manufacturing overhead = $650,000
Direct labor cost = $1,300,000
Machine hours = 81,250
Actual costs:
Direct labor cost $1,190,000
Overhead costs:
Depreciation on manufacturing
plant and equipment $485,000
Property taxes on plant $21,500
Plant janitors' wages $11,000
Total actual overhead costs $517,500
Machine hours 54,500 hours
b) Selling Expenses:
Sales salaries $26,000
Delivery drivers' wages $14,500
Total $40,500
c) Computation of the predetermined manufacturing overhead rate:
Predetermined overhead rate = estimated manufacturing overhead costs divided by estimated machine hours
= $650,000/81,250
= $8
Bonita Company borrowed $43,200 on November 1, 2020, by signing a $43,200, 9%, 3-month note.
Required:
Prepare Bonita’s November 1, 2020, entry; the December 31, 2020, annual adjusting entry; and the February 1, 2021, entry.
Answer and Explanation:
The journal entries are shown below:
On Nov 1
Cash $43,200
To Note payable $43,200
(Being the borrowed amount is recorded)
On Dec 31
Interest expense ($43,200 × 9%× 2 ÷ 12) $648
To Interest payable $648
(Being the interest expense is recorded)
On Feb 01
Interest expense ($43,200 × 9%× 1 ÷ 12) $324
Interest payable $648
Note payable $43,200
To Cash $44,172
(Being cash paid is recorded)
what is the fastest way to grow your account (in followers and likes) on social media? this doesn't have to be "right" just say what has helped you grow on social media
Answer:
I think is just be nice like thier pics leave nice comments cause if ur nice to them they might think Oh that was nice I'm gonna follow them and just put cute pics and things that are trendy so people will see them and always stay nice and polite
Explanation:
On December 28, 20Y3, Silverman Enterprises sold $18,500 of merchandise to Beasley Co. with terms 2/10, n/30. The cost of the goods sold was $11,200. On December 31, 20Y3, Silverman prepared its adjusting entries, yearly financial statements, and closing entries. On January 3, 20Y4, Silverman Enterprises issued Beasley Co. a credit memo for returned merchandise. The invoice amount of the returned merchandise was $4,000 and the merchandise originally cost Silverman Enterprises $2,350. A. Journalize the entries by Silverman Enterprises to record the December 28, 20Y3 sale, using the net method under a perpetual inventory system. B. Journalize the entries by Silverman Enterprises to record the merchandise returned by Beasley Co. on January 3, 20Y4. C. Journalize the entry to record the receipt of the amount due by Beasley Co. on January 7, 20Y4.
Answer:
A.
Dec. 28, 20Y3
Dr Account receivable - Beasley co. 18,500
Cr Sales 18,500
Dec. 28, 20Y3
Dr Cost of goods sold 11,200
Cr Inventory 11,200
B.
Jan. 3, 20Y4
Dr Sales return and allowance 4,000
Cr Account receivable - Beasley co. 4,000
Jan. 3, 20Y4
Dr Inventory 2,350
Cr Cost of goods sold 2,350
C. Jan. 7, 20Y4
Dr Cash 14,210
Dr Sales discount 290
Cr Account receivable - Beasley co. 14,500
Explanation:
A. Preparation of the Journal to record the December 28, 20Y3 sale, using the net method under a perpetual inventory system
Dec. 28, 20Y3
Dr Account receivable - Beasley co. 18,500
Cr Sales 18,500
Dec. 28, 20Y3
Dr Cost of goods sold 11,200
Cr Inventory 11,200
B. Preparation of the journal entries to record the merchandise returned
Jan. 3, 20Y4
Dr Sales return and allowance 4,000
Cr Account receivable - Beasley co. 4,000
Jan. 3, 20Y4
Dr Inventory 2,350
Cr Cost of goods sold 2,350
C. Preparation of Journal entry to record the receipt of the amount due
Jan. 7, 20Y4
Dr Cash 14,210
[(18,500-4,000)-(18,500-4,000)*2% ]
Dr Sales discount 290
[(18,500-4,000)*2% ]
Cr Account receivable - Beasley co. 14,500
(18,500-4,000)
A- Dr. A/c. receivable-18500, Cr Sales 18500
B- Dr. Sales return and allowance 4000, Cr Account receivable 4000
C- Dr. Cash 14210, Dr. Sales discount 290, Cr Account receivable 14500
What is a Journal entry?
A. Then we Preparation of the Journal to record the December 28, 20Y3 sale, Now we are using the net method under a perpetual inventory system is:
Dec. 28, 20Y3
Dr. Account is receivable - Beasley co. 18,500
Cr Sales 18,500
Dec. 28, 20Y3
Dr. Cost of goods sold 11,200
Cr Inventory 11,200
B. We Preparation of the journal entries to record the merchandise returned are:
Jan. 3, 20Y4
Dr. Sales returns and allowance 4,000
Cr Account is receivable - Beasley co. 4,000
Jan. 3, 20Y4
Dr. Inventory 2,350
Cr Cost of goods sold 2,350
C. We Preparation of Journal entry to record the receipt of the amount due to:
Jan. 7, 20Y4
Dr Cash 14,210
[(18,500-4,000)-(18,500-4,000)*2% ]
Dr Sales discount 290
[(18,500-4,000)*2% ]
Cr Account receivable - Beasley co. 14,500 (18,500-4,000)
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Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container’s cost. They receive a refund when the container is returned. During 2021, deposits collected on containers shipped were $948,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2021, represented deposits of $623,000. In 2021, $873,000 was refunded and deposits forfeited were $42,750. Required: 1. Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2021. 2. Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet.
Answer:
1.
a. Dr Cash $948,000
Cr Liability for refundable deposits $948,000
b. Dr Liability for refundable deposits $873,000
Cr Cash $873,000
c. Dr Liability for refundable deposits $42,750
Cr Sale of containers $42,750
d. Dr Cost of goods sold $42,750
Cr Inventory of containers $42,750
2. $655,250
Explanation:
1. Preparation of Journal entries
Based on the information given we were told that the deposits collected on containers that were shipped was the amount of $948,000 which means that the Journal entry will be:
a. Dr Cash $948,000
Cr Liability for refundable deposits $948,000
b. Based on the information given we were told that the amount of $873,000 was refunded which means that the Journal entry will be :
Dr Liability for refundable deposits $873,000
Cr Cash $873,000
c. Based on the information given we were told that the deposits forfeited were the amount of $42,750 which means that the Journal entry will be :
Dr Liability for refundable deposits $42,750
Cr Sale of containers $42,750
Dr Cost of goods sold $42,750
Cr Inventory of containers $42,750
2. Calculation to Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet.
Liability for refundable deposits, January 1, 2021 $623,000
Add: Deposits received during 2021 $948,000
Less: Deposits returned during 2021 ($873,000)
Less:Deposits forfeited during 2021 ($42,750)
Balance, December 31, 2021 $655,250
Therefore the liability for refundable deposits to be reported on the December 31, 2021, balance sheet will be $655,250
For each separate case, record the necessary adjusting entry.
a. On July 1, Lopez Company paid $3,200 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31.
b. Zim Company has a Supplies account balance of $9,000 at the beginning of the year. During the year, it purchased $4,000 of supplies. As of December 31, a physical count of supplies shows $1,800 of supplies available.
Prepare the adjusting journal entry to correctly report the balance of the Supplies account and the Supplies Expense account as of December 31.
Answer and Explanation:
The Journal entries are shown below:-
Supplies expense Dr, $11,200 ($9,000 + $4,000 - $1,800)
To Supplies $11,200
(Being supplies expense is recorded)
Here we debited the supplies expenses as and we credited the supplies as it increased the expense and also increased the assets so that proper recording could be done
Umatilla Bank and Trust is considering giving Pronghorn Corp a loan. Before doing so, it decides that further discussions with Pronghorn’s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $277,880. Discussions with the accountant reveal the following. 1. Pronghorn shipped goods costing $54,380 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse. 2. The physical count of the inventory did not include goods costing $96,250 that were shipped to Pronghorn FOB destination on December 27 and were still in transit at year-end. 3. Pronghorn received goods costing $27,180 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count. 4. Pronghorn shipped goods costing $46,830 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Pronghorn physical inventory. 5. Pronghorn received goods costing $45,270 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $277,880.
Answer:
1. Pronghorn shipped goods costing $54,380 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
These goods were correctly excluded from the inventory account because the purchase was FOB shipping point, which means that title passes to the buyer once the goods leave the sellers shipyard or warehouse.2. The physical count of the inventory did not include goods costing $96,250 that were shipped to Pronghorn FOB destination on December 27 and were still in transit at year-end.
These goods were correctly excluded from the inventory account because the purchase was FOB destination, which means that title passes to the buyer only after the goods are delivered.3. Pronghorn received goods costing $27,180 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count.
They should have been included in the inventory account because the purchase was FOB shipping point, which means that title passes to the buyer once the goods leave the sellers shipyard or warehouse.4. Pronghorn shipped goods costing $46,830 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Pronghorn physical inventory.
They should have been included in the inventory account because the sale was FOB destination which means that title passes to the buyer only after the goods are delivered.5. Pronghorn received goods costing $45,270 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $277,880.
These goods should have been excluded from the inventory account because the purchase was FOB destination, which means that title passes to the buyer only after the goods are delivered.The Office Interiors Company has developed a new, modern office chair. Initial sales forecasts are for 64 chairs per day. The assembly operations will run for two eight hour shifts. The process engineer and operations manager are working together to balance the line to make the new chair as efficiently as possible. The process engineer suggests using the longest operating time rule while the operations manager suggests using the most followers rule to design the line. If there is a tie, use the other rule to break the tie.
Required:
Based on the processing information, which approach do you recommend? Why?
Answer is given below
Explanation:
The long operating time rule should be preferred and in the case of a tie, most followers use the rule as a tie breaker. Since we have a time limit and need to set the number of chairs per day, the time required at the station is more than the number of followers, because the latter is not specified or only he can control. A total job of 50 chairs per day requires time.An analysis of the accounts of Coronado Company reveals the following manufacturing cost data for the month ended June 30, 2020.
Inventory Beginning Ending
Raw materials $9,100 $13,450
Work in process 5,110 8,880
Finished goods 9,870 6,880
Costs incurred: raw materials purchases $55,160, direct labor $51,800, manufacturing overhead $24,080. The specific overhead costs were: indirect labor $7,340, factory insurance $4,130, machinery depreciation $4,920, machinery repairs $2,460, factory utilities $3,450, and miscellaneous factory costs $1,780. Assume that all raw materials used were direct materials.
A) Prepare the cost of goods manufactured schedule for the month ended June 30, 2020.
B) Show the presentation of the ending inventories on the June 30, 2020, balance sheet.
Answer:
See attached solutions
Explanation:
A. Cost of goods manufactured is $122,920
B. The total current asset is $29,210.
Please find attached computation of how we arrived at the above values(computation of cost of goods manufactured schedule and presentation of the ending inventories on the balance sheet).
In the economic environment of 2010-2014, the U.S. experienced a slow-growing economy with record low interest rates. In what ways does this type of economic environment diminish the importance of working capital management to the firm
Answer:
Throughout the clarification section elsewhere here, the description of the query is mentioned.
Explanation:
During the year 2007, the eruption including its sub-prime crisis struck the U.S., which escalated to a full-fledged financial crisis. Whilst also 2010-2014, the United States government had not fully recovered from the crisis, as well as the unemployment number was still high. It would still be trying to do it anyway. This consequently led towards a low demographic demand and therefore a decline in supply, that contributed to little company growth.' This inevitably eventually led to a heavy budget.We recognize that maintenance of working capital applies to investments in existing assets such as inventory that are repossessed within the next year or shorter and therefore are necessary for the day-to-day activities of the company. It also serves as a buffer against liquidity tightening restricting access to extra money. Even though short-term yields were already low, interest rates are low, making it extremely difficult to raise financial operating expenses, businesses are now struggling to retain their investment returns intact. The value of the maintenance of capital expenditures is thus reduced.Felton Co. sells major household appliance service contracts for cash. The service contracts are for a 1-year, 2-year, or 3-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance of $480,000 at December 31, 2009 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $120,000 at December 31, 2009. Outstanding service contracts at December 31, 2009 expire as follows:
During 2010 During 2011 During 2012
$100,000 $160,000 $70,000
What amount should be reported as unearned service contract revenues in Felton's December 31, 2009 balance sheet?
Answer:
Unearned Service Contracts Revenue = $330,000
Explanation:
Unearned Service Contracts Revenue refers to the expected revenue from a contracts been carried and has yet been paid.
Unearned Service Contracts Revenue for 2010 = $100,000, for 2011 = $160,000 and for 2012 = $70,000
Unearned Service Contracts Revenue = $100,000 + $160,000 + $70,000
Unearned Service Contracts Revenue = $330,000
A common stock pays annual dividend per share of $2.10. The risk-free rate is 6% and the risk premium for this stock is 4%. The annual dividend is expected to remain at $2.10. What is the value of the stock
Answer:
The value of the stock is $21 a
Explanation:
The computation of the value of the stock is shown below:
Cost of equity, Ke is
= 6% + 4%
= 10%
And,
the value of the stock is
= Constant dividend ÷ Ke
= $2.10 ÷ 10%
= $21
Hence, the value of the stock is $21 and the same is to be considered
We simply applied the above formula so that the correct value could come
The EBIT is $40,000, depreciation is $10,000, and taxes are $6,000. What is the operating cash flow (OCF)
Answer:
Operating cash flow= $44,000
Explanation:
Giving the following information:
The EBIT is $40,000, depreciation is $10,000, and taxes are $6,000.
To calculate the operating cash flow, we need to use the following formula:
Operating cash flow= EBIT - T + Depreciation
Operating cash flow= 40,000 - 6,000 + 10,000
Operating cash flow= $44,000
Which of the following are true?
A. The data in D3 is skewed right.
B. Three quarters of the data values for D2 are greater than the median value for D1 .
C. At least three quarters of the data values in D1 are less than all of the data values in D2 .
D. At least a quarter of the data values in D2 are less than all of the data values in D3 .
E. At least a quarter of the data values for D3 are less than the median value for D2 .
F. The median value for D1 is less than the median value for D3
Answer:
A. The data in D3 is skewed right.B. Three quarters of the data values for D2 are greater than the median value for D1 .E. At least a quarter of the data values for D3 are less than the median value for D2 .Explanation:
A Box Plot can be interpreted as follows;
The first point on the line is the minimum value.
The first end of the box is the First Quartile of the data range.
The next line is the Median.
The last end of the box is the Third Quartile.
The last point on the line is the maximum value.
Most of D3 lies on the right side of Median so it is skewed right.
The First Quartile of D2 is more than the Median of D1 which means that 3 quarters of D2 (first quartile to the maximum value) are greater than the median of D1.
D2's Median value is greater than the Third Quartile of D3 which means that more than just a quarter of D3 falls below D2's Median so option E is correct.
The true statements are
A. The data in D3 is skewed right.
B. Three quarters of the data values for D2 are greater than the median value for D1 .
E. At least a quarter of the data values for D3 are less than the median value for D2 .
The following information should be considered:
A Box Plot can be interpreted as follows;
The first point on the line is the minimum value.The first end of the box is the First Quartile of the data range.The next line is the Median.The last end of the box is the Third Quartile.The last point on the line is the maximum value.Most of D3 lies on the right side of Median so it is skewed right.The First Quartile of D2 is more than the Median of D1 that represent 3 quarters of D2 are greater than the median of D1.D2's Median value more than the Third Quartile of D3 which means that more than just a quarter of D3 falls below D2's Median.Learn more: https://brainly.com/question/5763151?referrer=searchResults
Cordell Inc. experienced the following events in 2018, its first year of operation:
1. Received $40,000 cash from the issue of common stock.
2. Performed services on account for $82,000.
3. Paid a $6,000 cash dividend to the stockholders.
4. Collected $76,000 of the accounts receivable.
5. Paid $53,000 cash for other operating expenses.
6. Performed services for $19,000 cash.
7. Recognized $3,500 of accrued utilities expense at the end of the year.
Required
a. Identify the events that result in revenue or expense recognition.
b. Based on your res ponse to Requirement a, determine the amount of net income reported on the 2018 income statement.
c. Identify the events that affect the statement of cash flows.
d. Based on your response to Requirement c, determine the amount of cash flow from operatingactivities reported on the 2018 statement of cash flows.
Answer:
Cordell Inc.
a. Events that result in revenue or expense recognition:
2. Performed services on account for $82,000.
5. Paid $53,000 cash for other operating expenses.
6. Performed services for $19,000 cash.
7. Recognized $3,500 of accrued utilities expense at the end of the year.
b. The amount of net income reported on the 2018 income statement:
$44,500
c. The events that affect the statement of cash flows:
1. Received $40,000 cash from the issue of common stock.
3. Paid a $6,000 cash dividend to the stockholders.
4. Collected $76,000 of the accounts receivable.
5. Paid $53,000 cash for other operating expenses.
6. Performed services for $19,000 cash.
d. The amount of cash flow from operating activities reported on the 2018 statement of cash flows:
$42,000
Explanation:
Data and Calculations:
a) Revenue
Event 2. $82,000
Event 5. (53,000)
Event 6. 19,000
Event 7. (3,500)
b) Net Income $44,500
c) Cash flow from operating activities:
Event 4. Collection from Accounts Receivable $76,000
Event 5. Payment for operating expenses ($53,000)
Event 6. Cash Receipts for services $19,000
d) Net Cash from operating activities $42,000
Selected balance sheet and income statement information for Home Depot follows.
$ millions Jan. 31, 2016 Feb. 01, 2015
Operating assets $40,683 $38,573
Nonoperating assets 2,266 1,773
Total assets 42,949 40,346
Operating liabilities 15,043 13,552
Nonoperating liabilities 21,275 17,157
Total liabilities 36,318 30,709
Total stockholders' equity 6,631 9,637
Sales 89,234
Net operating profit before tax (NOPBT) 12,124
Nonoperting expense before tax 803
Tax expense 4,001
Net income 7,320
Compute net operating profit after tax for the year ended January 31, 2016. Assume a statutory tax rate of 37%.
Round answer to the nearest whole number.
Answer:
$7,826
Explanation:
The computation of net operating profit after tax is shown below:-
Net operating profit after tax = Net operating profit before tax - Tax expense on operating profit
= $12,124 - ($4,001 + $803 × 37%)
= $12,124 - $4,298
= $7,826
Therefore for computing the net operating profit after tax we simply applied the above formula.
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes):
Income Statement Balance Sheet
Sales $46,500 Assets $20,500 Debt $6,500
Costs 38,780 Equity 14,000
Net income $7,720 Total $20,500 Total $20,500
The company has predicted a sales increase of 14 percent. Assume the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not.
Required:
Prepare the pro-forma statements.
Question attached
Answer and Explanation:
Full answer and explanation attached
Which productivity program is useful to help manage bills and show a budget?
O Microsoft Word
O Microsoft Access
Microsoft PowerPoint
O Microsoft Excel
Answer:
Microsoft Excel
Explanation:
I need 5 Brainliest before I can become Ace
Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting common stock of an investee company in exchange for $75,000 worth of investor company common stock. The transaction is a tax-free reorganization under the Internal Revenue Code. The following financial statement information is for the investor company and the investee company on January 1, 2013, prepared immediately before this transaction.
Book Values
Investor Investee
Receivables & inventories $50,000 $25,000
Land 100,000 50,000
Property & equipment 112,500 50,000
Total assets $262,500 $125,000
Liabilities $75,000 $40,000
Common stock ($2 par) 10,000 5,000
Additional paid-in capital 140,000 75,000
Retained earnings 37,500 5,000
Total liabilities & equity $262,500 $125,000
Compute the investment account (market value equals book value)
Assume that the fair values of the investee's net assets approximated the recorded book values of the investee's net assets, and the transaction resulted in no recorded goodwill or bargain purchase gain. What is the balance in the pre-consolidation "investment in investee" account on the investor company's books on January 1, 2013, immediately after the acquisition of the investee company voting common stock?
A. Not enough information provided
B. $5,000
C. $85,000
D. $75,000
Answer:
C. $85,000
Explanation:
Calculation for the balance in the pre-consolidation
Receivables & inventories $25,000
Land 50,000
Property & equipment 50,000
Total assets 125,000
Less Liability ($40,000)
Consolidation balance$85,000
Therefore the amount of $85,000 will be the Consolidation balance
Monty Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $2,500,000 on January 1, 2020. Monty expected to complete the building by December 31, 2020. Monty has the following debt obligations outstanding during the construction period.
Construction loan-12% interest, payable semi-annually,
issued December 31, 2019 $1,000,000
Short-term loan-10% interest, payable monthly, and
principal payable at maturity on May 30, 2021 700,000
Long-term loan-11% interest, payable on January 1 of
each year. Principal payable on January 1, 2024 500,000.
1. Assume that Monty completed the office and warehouse building on December 31, 2020, as planned at a total cost of $2,600,000, and the weighted-average amount of accumulated expenditures was $1,800,000. Compute the avoidable interest on this project.
2. Compute the depreciation expense for the year ended December 31, 2021. Monty elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $510,000.
Answer:
1. Assume that Monty completed the office and warehouse building on December 31, 2020, as planned at a total cost of $2,600,000, and the weighted-average amount of accumulated expenditures was $1,800,000. Compute the avoidable interest on this project.
we must determine the weighted average cost of non-specific debt:
$1,000,000 x 10% = $100,000
$700,000 x 11% = $77,000
total = $177,000 / $1,700,000 = 10.4118%
avoidable interest = ($1,000,000 x 12%) + ($800,000 x 10.4118%) = $203,294.40
2. Compute the depreciation expense for the year ended December 31, 2021. Monty elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $510,000.
depreciation expense = (total cost of the building - avoidable interest - salvage value) / useful life
depreciation expense = ($2,600,000 - $203,294 - $510,000) / 30 years = $62,890.20
Garison Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. Garison uses two sales promotion techniques— warranties and premiums— to attract customers.
Musical instruments and sound equipment are sold with a one- year warranty for replacement of parts and labor. The estimated warranty cost, based on past experience, is 2% of sales.
The premium is offered on the recorded and sheet music. Customers receive a coupon for each dollar spent on recorded music or sheet music. Customers may exchange 200 coupons and $ 20 for a CD player. Garison pays $ 32 for each CD player and estimates that 60% of the coupons given to customers will be re-deemed.
Garison’s total sales for 2020 were $7,200,000—$5,700,000 from musical instruments and sound reproduction equipment and $1,500,000 from recorded music and sheet music. Replacement parts and labor for warranty work totaled $94,000 during 2020 ($44,000 of the work is related to pre-2020 sales). A total of 6,500 players used in the premium program were purchased during the year and there were 1,200,000 coupons re-deemed in 2020.
The accrual method is used by Garison to account for the warranty and premium costs for financial reporting purposes. The balances in the accounts related to warranties and premiums on January 1, 2010, were as shown below.Inventory of Premium CD Players $ 37,600Estimated Premium Claims Outstanding 44,800Estimated Liability from Warranties 136,000Instructions
Garison Music Emporium is preparing its financial statements for the year ended December 31, 2010. Determine the amounts that will be shown on the 2010 financial statements for the following.1) Warranty ExpenseSale of Musical Instruments $7,200,000Sale of Sound reproduction equipment $5,700,000Total Sales $12,900,000Warranty Expense 2% of sales $258,0002) Estimated Liability from WarrantiesBeginning Balance $136,000Add: Addition for the year $258,000Total $394,000Less: Expense incurred $164,000Ending Balance on $230,000December 31, 2010 =======3) Premium ExpenseSale of recorded music and sheet music $1,500,000Coupons issued at one coupon for one dollar 1,500,000CD Players to be release at one for 200 coupons = 4,500Premium Expense of CD players at $12 ($32 - $20) =$54,0004) Inventory of CD PlayersBeginning Balance 1,175 units $37,600Purchased during the year 6,500 units $208,000Total available 7675 units $245,600Less: issued for redemption 6,000 units $192,000Ending Balance 1,675 units $ 53,6005) Estimated Premium Claims outstandingBeginning Balance $44,800Add: Claims for the year(60% of the current sales) $54,000Total $98,800Less: Redeemed during the year $72,000Ending balance $26,800
Answer and Explanation:
Full answer an explanation attached
Consider the effects of inflation in an economy composed of only two people: Hubert, a bean farmer, and Kate, a rice farmer. Hubert and Kate both always consume equal amounts of rice and beans. In 2016 the price of beans was $1, and the price of rice was $4. Suppose that in 2017 the price of beans was $2 and the price of rice was $8. Inflation was % . Indicate whether Hubert and Kate were better off, worse off, or unaffected by the changes in prices. Better Off Worse Off Unaffected Hubert Kate Now suppose that in 2017 the price of beans was $2 and the price of rice was $4.80. In this case, inflation was % . Indicate whether Hubert and Kate were better off, worse off, or unaffected by the changes in prices. Better Off Worse Off Unaffected Hubert Kate Now suppose that in 2017, the price of beans was $2 and the price of rice was $1.60. In this case, inflation was % . Indicate whether Hubert and Kate were better off, worse off, or unaffected by the changes in prices.
Better Off Worse Off Unaffected
Hubert
Kate
What matters more to Hubert and Kate?
The overall inflation rate
The relative price of rice and beans
Answer:
a.
Inflation will be the percentage by which prices have risen in the economy.
It can be calculated by using a market basket that would comprise the two goods. In 2016 therefore, the price of this basket is $5 = 1 + 4. In 2017 the price would have increased to $10.
Inflation = (10 - 5) / 5 = 100%
Both Hubert and Kate would be unaffected by the changes in prices because the prices doubled for both of them.
b. Now suppose that in 2017 the price of beans was $2 and the price of rice was $4.80.
Market basket in 2017 = 2 + 4.8 = $6.80
Inflation = (6.8 - 5) / 5 = 36%
Hubert will be better off because the price of beans increased by 100% which is more than the inflation rate of 36%.
Kate's price increase = (4.8 - 4)/4 = 20%. Yet inflation is 36%. Kate will therefore be worse off as inflation is higher than the increase in what she sells.
c. Now suppose that in 2017, the price of beans was $2 and the price of rice was $1.60.
Market Basket in 2017 = 2 + 1.6 = $3.60
Inflation = (3.6 - 5)/5 = -28%
Hubert will be better off because his prices have risen while general inflation has fallen.
Kate's price decrease = ( 1.6 - 4)/4 = -60%. Inflation was -28%. Kate will therefore be worse off because inflation decreased less than her prices did.
d. The relative price of rice and beans matter more to them because if the goods rise in prices significantly enough, they would be better off even if there was inflation.
Select an e-commerce company. Visit its website or mobile app and describe its business model based on the information you find there. Identify its customer value proposition, its revenue model, the marketspace it operates in, who its main competitors are, any comparative advantages you believe the company possesses, and what its market strategy appears to be. Also try to locate information about the company's management team and organizational structure. (Check for a page labeled "the Company," "About Us," or something similar.)
Explanation:
The e-commerce site visited was from Adidas, one of the largest sporting goods companies in the world. The value proposition that the company offers to the client is the creation of a marketing focused on the young and modern public, which can be seen on its website, where young models with a cool look use the brand's sneakers and clothing, always with a lot of youthful color and personality. The brand also creates value using influential marketing, sponsoring major celebrities and sports around the world, being a very strong brand and recognized for its values. The company has comparative advantages with competing companies in the sports segment, due to the fact that Adidas seeks a new look and refinement for its products, which can be seen in its collections where there are partnerships with several famous designers and personalities.
There is information about the company at the bottom of the page, which reveals about its multifaceted, simple and fast organizational structure, as written on the website, which reinforces the company's global values.
The Jamesway Corporation had the following situations on December 2021. On December 10, 2021, Jamesway received a $4,800 payment from a customer for services begun on that date and which were completed by December 31, 2021. Deferred service revenue was credited. On December 1, 2021, the company paid a local radio station $3,600 for 40 radio ads that were to be aired, 20 per month, throughout December and January. Prepaid advertising was debited. Employee salaries for the month of December totaling $24,000 will be paid on January 7, 2022. On August 31, 2021, Jamesway borrowed $50,000 from a local bank. A note was signed with principal and 9% interest to be paid on August 31, 2022.
Prepare the necessary adjusting entries at its year-end of December 31, 2021. No adjusting entries were recorded during the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer and Explanation:
The Journal entries are shown below:-
1. Deferred Service Revenue A/c Dr, $4,800
To Revenue A/c $4,800
(Being Revenue recognized is recorded)
2. Advertisement Expense A/c Dr, $1,800 ($3,600 ÷ 40 × 20)
To Prepaid Advertisement A/c $1,800
(Being expense recognized is recorded)
3. Employees Salaries A/c Dr, $24,000
To Outstanding Employees Salaries A/c $24,000
(Being expense & liability is recorded)
4. Interest expense A/c Dr, $1,500 (($50,000 × 9%) ÷ 12 × 4
To Interest Liability A/c $1,500
(Being Interest expense and Liability is recorded)
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice—White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below:
Product
White Fragrant Loonzain Total
Percentage of total
sales 48% 20% 32% 100%
Sales $297,600 100% $124,000 100% $198,400 100% $620,000 100%
Variable
expenses 89,280 30% 99,200 80% 109,120 55% 297,600 48%
Contribution
margin $208,320 70% $24,800 20% $89,280 45% 322,400 52%
Fixed expenses 227,760
Net operating income $94,640
Dollar sales to break-even = Fixed expenses = $227,760 = $438,000
UnitCM ratio 0.52
As shown by these data, net operating income is budgeted at $94,640 for the month and the estimated break-even sales is $438,000. Assume that actual sales for the month total $620,000 as planned. Actual sales by product are: White, $198,400; Fragrant, $248,000; and Loonzain, $173,600.
Required:
1. Prepare a contribution format income statement for the month based on the actual sales data.
2. Compute the break-even point in dollar sales for the month based on your actual data.
Answer:
Gold Star Rice, Ltd.
Income Statement by product:
White Fragrant Loonzain Total
Percentage of total
sales 32% 40% 28% 100%
Sales $198,400 100% $248,000 100% $173,600 100% $620,000 100%
Variable
expenses 59,520 30% 198,400 80% 95,480 55% 353,400 57%
Contribution
margin $138,880 70% $49,600 20% $78,120 45% 266,600 43%
Fixed expenses 227,760
Net operating income $38,840
2. Break-even point in dollar sales for the month =
Dollar sales to break-even = Fixed expenses = $227,760 / 0.43
= $529,674
Unit CM ratio 0.43
Explanation:
a) Data and Calculations:
Income Statement by product:
White Fragrant Loonzain Total
Percentage of total
sales 48% 20% 32% 100%
Sales $297,600 100% $124,000 100% $198,400 100% $620,000 100%
Variable
expenses 89,280 30% 99,200 80% 109,120 55% 297,600 48%
Contribution
margin $208,320 70% $24,800 20% $89,280 45% 322,400 52%
Fixed expenses 227,760
Net operating income $94,640
Dollar sales to break-even = Fixed expenses = $227,760 = $438,000
Unit CM ratio 0.52
At the beginning of 2014, EZ Tech Company's Accounts Receivable balance was $140,000, and the balance in Allowance for Doubtful Accounts was $2,350 (Cr.). EZ Tech's sales in 2014 were 80% of which were on credit. Collections on account during the year were $670,000. The company wrote off $4,000 of uncollectible accounts during the year.
Required:
a. Compute the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values.
b. Compute the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the income statement for the current year.
c. Compute the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the balance sheet for the current year.
Answer:
Account receivables
Debit Credit
140,000
840,000
670,000
4,000
306,000 Ending Balance
Allowance for doubtful account
Debit Credit
2,350
4,000
25,200
23,550
Bad debt expense for the year: 23,550
Account receivables in the balance sheet (net)
306,000 - 23,550 = 282,450
Explanation:
*missing information: the sales were 1,050,000
so credit sales: 1,050,000 x 80% = 840,000
*missing information bad debt expense is 3% of credit sales
bad debt expense for the year:
840,000 x 3% = 25,200
Presented below is selected financial information for Kingbird, Inc. for December 31, 2017.
Inventory $24,500 Cash paid to purchase equipment $12,000
Cash paid to suppliers 103,900 Equipment 42,700
Buildings 199,800 Service revenue 103,400
Common stock 50,100 Cash received from customers 132,400
Cash dividends paid 7,100 Cash received from issuing common stock 21,800
Cash at beginning of period 7,400
Required:
Prepare the statement of cash flows for Kingbird, Inc..
Answer:
Cashflow from Operating Activities
Cash received from customers $132,400
Cash paid to suppliers ($103,900)
Cash from Operations $28,500
Cashflow from Investing Activities
Purchase of Equipment ($12,000)
Cashflow from Investing Activities ($12,000)
Cashflow from Financing Activities
Cash received from Issuing Stock $21,800
Dividend Paid ($7,100)
Cashflow from Financing Activities $14,700
Net Increase in Cash $31,200
Beginning Cash $7,400
Cash at End of Period $38,600
Net Increase in cash = 28,500 - 12,000 + 14,700 = $31,400
Terminology.In the space provided, write the word or phrase that is defined or indicated.
1. Net income minus preferred dividends divided by the weighted average of shares outstanding___________
2. All changes in equity during a period except those resulting from investments by owners and distributions to owners.________-
3. A correction of an error is reported as a _________.
4. The portion of equity interest in a subsidiary not attributable to the parent company. ____________
5. The income statement category for a disposal of a component of a business. ___________
6. Relating tax expense to specific items on the income statement. _________
7. Obligations expected to be liquidated ______ through use of current assets.
8. Statement showing financial condition at a _________ point in time.
9. Events that depend upon future outcomes. ___________
10.Probable future sacrifices of economic benefits.________
11.Resources expected to be converted to ______n one year or the operating cycle, whichever is longer
12.Resources of a durable nature used in _____________operations.
13.Economic rights or competitive advantages _________ which lack physical substance.
14.Probable future economic benefits. _________
15.Residual interest in the net assets of an entity_______
Answer:
1. Earnings per share.
2. Comprehensive income.
3. Prior period adjustment.
4. Non-controlling interest.
5. Discontinued operations.
6. Intra-period tax allocation.
7. Current liabilities.
8. Balance sheet.
9. Contingencies.
10. Liabilities.
11. Current assets.
12. Property, plant and equipment.
13. Intangible assets.
14. Assets.
15. Equity.
Explanation:
1. Net income minus preferred dividends divided by the weighted average of shares outstanding: Earnings per share.
2. All changes in equity during a period except those resulting from investments by owners and distributions to owners: Comprehensive income.
3. A correction of an error is reported as a: Prior period adjustment.
4. The portion of equity interest in a subsidiary not attributable to the parent company: Non-controlling interest.
5. The income statement category for a disposal of a component of a business: Discontinued operations.
6. Relating tax expense to specific items on the income statement: Intra-period tax allocation.
7. Obligations expected to be liquidated through use of current assets: Current liabilities.
8. Statement showing financial condition at a point in time: Balance sheet.
9. Events that depend upon future outcomes: Contingencies.
10. Probable future sacrifices of economic benefits: Liabilities.
11. Resources expected to be converted to cash in one year or the operating cycle, whichever is longer: Current assets.
12. Resources of a durable nature used in operations: Property, plant and equipment.
13. Economic rights or competitive advantages which lack physical substance: Intangible assets.
14. Probable future economic benefits: Assets.
15. Residual interest in the net assets of an entity: Equity.
Consider the following data on U.S. GDP: Year Nominal GDP GDP Deflator (Billions of dollars) (Base year 2009) 2016 18,707 105.93 1996 8,073 73.181. The growth rate of nominal GDP between 1996 and 2016 was, and the growth rate of the GDP deflator between 1996 and 2016 was ____. 2. The growth rate of a variable X over an N-year period is calculated as 100×((XfinalXinitial)(1N)−1)) Measured in 2009 prices, real GDP was billion in 1996 and billion in 2016. (Note: Select the answers closest to the values you compute.) 3. The growth rate of real GDP between 1996 and 2016 was ____. 4. The growth rate of nominal GDP between 1996 and 2016 was than the growth rate of real GDP.
Year Nominal GDP GDP deflator(in billions of dollars) (base year 2009)
1996 8073 73.81
2016 18707 105.3
Answer and Explanation:
1. Growth rate of nominal GDP =
Difference of nominal GDP from 1996-2000/nominal GDP 1996*100/1
=
2. What was the growth rate of the GDP deflator between 1996 and 2016?
growth rate of the GDP deflator = GDPdeflator 2016 - GDP deflator 1996)/ GDP deflator 1999 x 100
= 105.3- 73.81/73.81x 100
= 0.4424 x 100
= 4.424 %
3. What was the real GDP in 1996 measured in 2009 prices?
Real GDP in 1996= nominal GDP/ GDP deflator in hundreths
GDP deflator in hundreths= 73.81/100 = 1.13
Real GDP in 1999 at 1996 prices = 8073/1.13
= $ 8202754.867 billions
4. What was real GDP in 2016 measured in 2009 prices?
Real GDP= nominal GDP/ GDP deflator in hundreths
GDP deflator in hundreths= 105.3/100 = 1.18
Real GDP in 2016 at 2009 prices = 18707/1.18
= $ 8367049.153 billions
5. What was the growth rate of real GDP between 1996 and 2016?
Growth rate of real GDP from 1996 to 2016 = real GDP 2016 - Real GDP 1996)/ RGDP 1996x 100
= 8367049.153 - 8202754.867 / 8202754.867 x 100
= 0.0200 x100
= 2 %
6. Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP?
Explain
Nominal GDP growth rate is higher than real GDP growth rate rate which is normal since Nominal GDP is calculated using market prices for the year while real GDP is calculated using base year prices.
Which of the following is a disadvantage of franchising? a. It requires the franchisees to create a new business model and plan strategies. b. It results in the franchisor taking all the financial burden of the franchisees. c. It does not provide sufficient incentive to the franchisees to run operations effectively because franchisees are not entrepreneurs. d. It restricts the franchisor from expanding. e. It results in the delegation of authority to franchisees, and the franchisor may not enjoy complete control.
Answer:
e. It results in the delegation of authority to franchisees, and the franchisor may not enjoy complete control.
Explanation:
Indeed, by selling or granting (licensing) the right to use the company's name/brand, or employing the same method of operations to another enterprise (called the franchisee), a franchisor may face disadvantages resulting in loss of complete control.
In other words, the franchisee may begin to feel they could be and should be able to decide how to carry out their operations without help from the franchisor.
Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $414,000 in additional credit sales, 8% are likely to be uncollectible. The company will also incur $17,400 in additional collection expense. Production and marketing costs represent 76% of sales. The firm is in a 35% tax bracket and has a receivables turnover of five times. No other asset buildup will be required to service the new customers. The firm has a 10% desired return.
A-1. Calculate the incremental income after taxes.A-2. Calculate the return on incremental investment. A-3. Should Fast Turnstiles Co. extend credit to these customers?A. YesB. NoB-1. Calculate the incremental income after taxes if 11% of the new sales prove to be uncollectible.B-2. Calculate the return on incremental investment if 11% of the new sales prove to be uncollectible. B-3. Should credit be extended if 11% of the new sales prove uncollectible?A. YesB. NoC-1. Calculate the return on incremental investment if the receivables turnover drops to 1.6, and 8% of the accounts are uncollectible. C-2. Should credit be extended if the receivables turnover drops to 1.6, and 8% of the accounts are uncollectible?A. NoB. Yes
Answer:
Follows are the solution to this question:
Explanation:
In point A-1:
Calculating the value of Incremental sales after tax:
Further revenues= $414,000
Recognize(Less)=Costs
Debt worth =$33,120
Set Exp. = $17,400
Production and commercialization cost= $314,640
Pre-sales tax =$48,840.
Lower: 35% tax = $17,094
Incremental tax income =$31,746
In point A-2:
Determine profits for extra expenditure
Extra spending on debts [tex]= \frac{ \$ 414,000}{\$ 5}[/tex]
[tex]= \$ 82,800.[/tex]
Return on the Expenditure [tex]= \frac{\$ 31746}{ \$ 82800}[/tex]
[tex]= 38.34 \%[/tex]
In point A-3:
Yeah, For the Fast Turnstiles company must provide certain consumers with loans.
In point B-1:
Incremental taxes after-tax calculation:
Further sales = $ 414,000
Return: Costs
gross debt= $45,540
Set Exp = $17,400
Cost for production and marketing = $314,640
Net profits=$ 36,420
Without tax 35% = $12,747
Incremental tax revenue= $23,673
In point B-2:
Determine profits for extra expenditure
Extra investment in debts [tex]= \frac{ \$ 414,000 }{ \$ 5}[/tex]
[tex]= \$ 82,800[/tex]
Incremental return on that investment [tex]= \frac{\$ 23673}{\$ 82800}[/tex]
[tex]= 28.59 \%[/tex]
In point B-3:
Yeah, The Fast Turnstiles company must provide to certain consumers to credit.
In point C-1:
The incremental tax revenue estimate
$414,000 = excess revenue
Remember Costs
Debt worth= $ 33,120
set Exp = $17,400
Production and commercialization cost= $314,640
Pre- sales tax = $48,840.
Less: 35% Tax = $17,094
Incremental tax income= $31,746
Calculate profits for extra expenditure
Extra Accounting Investment [tex]= \frac{\$ 414000}{1.6}[/tex]
[tex]= \$ 258750[/tex]
Incremental Return[tex]= \frac{\$ 31,746} {\$ 258,750}[/tex]
[tex]= 12.27 \%[/tex]
In point C-2:
Yeah, its credit should be granted to all these consumers through Fast Turnstiles company limited.