Answer:
H & H Tool, Inc.
a. Journal (Closing Entries):
Debit Revenue $000
Credit Retained Earnings $000
To close the revenue accounts to the retained earnings.
Debit Retained Earnings $000
Credit Expenses $000
To close the expense accounts to the retained earnings.
b. General Ledger Accounts:
Cash
Date Account Titles Debit Credit
Jan. 1 Balance $2
Accounts Receivable
Date Account Titles Debit Credit
Jan. 1 Balance $6
Supplies
Date Account Titles Debit Credit
Jan. 1 Balance $13
Equipment
Date Account Titles Debit Credit
Jan. 1 Balance $54
Accumulated Depreciation
Date Account Titles Debit Credit
Jan. 1 Balance $5
Software
Date Account Titles Debit Credit
Jan. 1 Balance $21
Accumulated Amortization
Date Account Titles Debit Credit
Jan. 1 Balance $6
Accounts Payable
Date Account Titles Debit Credit
Jan. 1 Balance $4
Common Stock
Date Account Titles Debit Credit
Jan. 1 Balance $72
Retained Earnings
Date Account Titles Debit Credit
Jan. 1 Balance $9
Explanation:
a) Trial Balance as of January 1, 2018:
Account Titles Debit Credit
Cash $2
Accounts Receivable 6
Supplies 13
Equipment 54
Accumulated Depreciation $5
Software 21
Accumulated Amortization 6
Accounts Payable 4
Common Stock 72
Retained Earnings 9
Totals 96 96
b) The revenue and expenses have zero balances. This means that they had been closed to the retained earnings account (Income Summary) before now. There is no logical need to repeat the process. However, a dummy has been entered for demonstration purpose.
HELP A company can have a competitive advantage if it
produces a comparable product at the same cost as others in the market.
builds the best reputation for quality of all companies in the market.
has about the same manufacturing costs as other companies in the market.
All of the above.
Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was issued with 10 detachable stock warrants, each of which entitled the bondholder to purchase, for $20, one share of $1 par common stock. At the time of sale, the market value of the common stock was $25 per share and the market value of each warrant was $5. Prepare the journal entry to record the issuance of the bonds.
Answer:
Date Account titles and Explanation Debit Credit
Cash (60,000*102%) $61,200,000
Discount on bonds payable $1,800,000
(63,000,000-61,200,000)
Bond payable (Face value) $60,000,000
Equity stock warrants outstanding $3,000,000
(60,000 bonds * 10 warrants * $5)
(To record the issue of shares and the share warrants)
In preparation for the winter season, a clothing company is manufacturing parka and goose overcoats, insulated pants, and gloves. All products are manufactured in four different departments: cutting, insulating, sewing, and packing. The company has received firm orders for its products. The contract stipulates a penalty for undelivered items. The following table provides the pertinent data of the situation.
Department Parka Goose Pants Gloves Capacity
Cutting 0.30 0.30 0.25 0.15 1000
Insulating 0.25 0.35 0.30 0.10 1000
Sewing 0.45 0.50 0.45 0.22 1000
Packaging 0.15 0.15 0.10 0.05 1000
Demand 800 750 600 500
Unit profit 30 40 20 10
Unit Penalty 15 20 10 8
Formulate the Problem as a LP Problem.
Answer:
Let A represent no of Parka produced
Let B be number of Goose Produced
Let C be number of Number of Pants
Let D be number of Gloves
A', B', C' and D' are shortages in production if any. The range of these variables will be from 0 to Demand.
Out objective is to plan our production to maximize net profit (Profit-Penalty).
Maximize
P = 30A + 40B + 20C + 10D - 15A' - 20B' - 10C' - 8D'
s.t
0.3A + 0.3B + 0.25C + 0.15D ≤ 1000
0.25A + 0.35B + 0.30C + 0.10D ≤ 1000
0.45A + 0.50B + 0.40C + 0.22D ≤ 1000
0.15A + 0.15B + 0.10C + 0.05D ≤ 1000
0 ≤ A' ≤ 800
0 ≤ B' ≤ 750
0 ≤ C' ≤ 600
0 ≤ D' ≤ 500
The LP problem is:
Maximize [tex]z= 30x_1 + 40x_2 + 20x_3 +10x_4 - 15s_1 -20s_2 - 10s_3 - 8s_4[/tex]Subject to
[tex]0.3x_1 + 0.3x_2 + 0.25x_3+0.15x_4 \le 1000[/tex][tex]0.25x_1 + 0.35x_2 + 0.3x_3+0.1x_4 \le 1000[/tex][tex]0.45x_1 + 0.5x_2 + 0.45x_3+0.22x_4 \le 1000[/tex][tex]0.15x_1 + 0.15x_2 + 0.1x_3+0.05x_4 \le 1000[/tex][tex]x_1 + s_1 = 800[/tex], [tex]x_2 + s_2 = 750[/tex], [tex]x_3 + s_3 = 600[/tex], [tex]x_4 + s_4 = 500[/tex]Where: [tex]x_1,x_2,x_3,x_4 \ge 0[/tex]Represent the products with x1, x2, x3 and x4, and the slack variables with s
From the table entries, we have the unit profit and the unit penalty.
So, the maximized function would be:
Total profit - Total penalty.
This gives
[tex]z= 30x_1 + 40x_2 + 20x_3 +10x_4 - 15s_1 -20s_2 - 10s_3 - 8s_4[/tex]
The constraints for cutting, insulating, sewing and packaging would be:
[tex]0.3x_1 + 0.3x_2 + 0.25x_3+0.15x_4 \le 1000[/tex]
[tex]0.25x_1 + 0.35x_2 + 0.3x_3+0.1x_4 \le 1000[/tex]
[tex]0.45x_1 + 0.5x_2 + 0.45x_3+0.22x_4 \le 1000[/tex]
[tex]0.15x_1 + 0.15x_2 + 0.1x_3+0.05x_4 \le 1000[/tex]
Lastly, the demand entries would be the sum of the product variables, and the slack variables.
So, we have:
[tex]x_1 + s_1 = 800[/tex]
[tex]x_2 + s_2 = 750[/tex]
[tex]x_3 + s_3 = 600[/tex]
[tex]x_4 + s_4 = 500[/tex]
Hence, the LP problem is:
Maximize [tex]z= 30x_1 + 40x_2 + 20x_3 +10x_4 - 15s_1 -20s_2 - 10s_3 - 8s_4[/tex]
Subject to
[tex]0.3x_1 + 0.3x_2 + 0.25x_3+0.15x_4 \le 1000[/tex]
[tex]0.25x_1 + 0.35x_2 + 0.3x_3+0.1x_4 \le 1000[/tex]
[tex]0.45x_1 + 0.5x_2 + 0.45x_3+0.22x_4 \le 1000[/tex]
[tex]0.15x_1 + 0.15x_2 + 0.1x_3+0.05x_4 \le 1000[/tex]
[tex]x_1 + s_1 = 800[/tex], [tex]x_2 + s_2 = 750[/tex], [tex]x_3 + s_3 = 600[/tex], [tex]x_4 + s_4 = 500[/tex]
Where:
[tex]x_1,x_2,x_3,x_4 \ge 0[/tex]
Read more about linear programming models at:
https://brainly.com/question/15356519
For each of the following accounts, indicate the effect of a debit or a credit on the account and the normal balance.
Debit Effect Credit Effect Normal Balance
a. Accounts Payable
b. Advertising Expense
c. Service Revenue
d. Accounts Receivable
e. Retained Earnings
f. Dividends
Answer:
a. Accounts Payable
Accounts payable have a credit balance and will increase under credit effect and decrease under debit effect.
b. Advertising Expense
Advertising expense has a debit balance and will increase in case of debit effect and decrease in case of credit effect.
c. Service Revenue
Service revenue will be credited and will increase in case of credit effect and decrease in case of debit effect.
d. Accounts Receivable
Accounts receivables will be debited and increase under debit effect and decrease under credit effect.
e. Retained Earnings
Retained earnings will be credited and will increase in case of credit effect and decrease in case of debit effect.
f. Dividends
Dividends will be debited which will lead to an increase in it under debit effect and decrease under credit effect.
Question 3: Cost terminology in manufacturing firms a) Direct materials include all materials and components only raw materials such as steel and glass only major materials and components Correct: Your answer is correct. Direct labor includes all production labor including supervisors and maintenance staff only managers who directly supervise the production process only hourly production workers (aka assembly workers) Correct: Your answer is correct. Manufacturing overhead includes only big items that cannot be traced (e.g., factory rent) only non-manufacturing costs only small items that are not worth tracing (e.g., glue, grease) both big items that cannot be traced (e.g., factory rent) and small items that are not worth tracing (e.g., glue, grease) Correct: Your answer is correct. b) Classify the following items as direct materials (DM), direct labor (DL), or manufacturing overhead (OH) for a car assembly plant: Rent for the factory building DL DM OH Correct: Your answer is correct. Cost of engines used in production DL DM OH Correct: Your answer is correct. Depreciation on production equipment DL DM OH Correct: Your answer is correct. Cost of lubricant used in production DL DM OH Correct: Your answer is correct. Production supervisor's salary DL DM OH Correct: Your answer is correct. Assembly workers' wages DL DM OH Correct: Your answer is correct.
Answer:
1. a. Only major materials and components.
Only the major materials and components are include as direct materials because these are the materials that directly needed for production.
b. Only hourly production workers (aka assembly workers).
The direct labor has to be those people who are directly involved in production which in this case is the assembly workers. Managers and Supervisors are not integral so are not direct labor.
c. Both big items that cannot be traced (e.g., factory rent) and small items that are not worth tracing (e.g., glue, grease).
All other items involved in production should be included as manufacturing overheads including big items and small items that cannot be traced.
2.
Rent for the factory building ⇒ Manufacturing Overhead (OH).
Cost of engines used in production ⇒ Direct materials (DM).
Depreciation on production equipment ⇒ Manufacturing Overhead (OH).
Cost of lubricant used in production. ⇒ Manufacturing Overhead (OH).
Production supervisor's salary. ⇒ Manufacturing Overhead (OH).
Assembly workers' wages. ⇒ Direct Labor.
Spicewood Stables, Inc., was established in Dripping Springs, Texas, on April 1. The company provides stables, care for animals, and grounds for riding and showing horses. You have been hired as the new assistant controller. The following transactions for April are provided for your review.
1. Received contributions from investors and issued $230,000 of common stock on April 1.
2. Acquired a barn for $180,000. On April 2, the company paid half the amount in cash and signed a three-year note payable for the balance.
3. Provided $18,000 in animal care services for customers on April 3, all on credit.
4. Rented stables to customers who cared for their own animals; received cash of $14,000 on April 4 for rent earned this month.
5. On April 5, received $3,350 cash from a customer to board her horse in May, June, and July (record as Deferred Revenue).
6. Purchased and received hay and feed supplies on account on April 6 for $3,800.
7. Paid $2,600 on accounts payable on April 7 for previous purchases.
8. Received $2,040 from customers on April 8 on accounts receivable.
9. On April 9, prepaid a two-year insurance policy for $4,800 for coverage starting in May.
10. On April 28, paid $1,140 in cash for water and utilities used this month.
11. Paid $14,800 in wages on April 29 for work done this month.
12. Received an electric utility bill on April 30 for $1,560 for usage in April; the bill will be paid next month.
Required:
1. Prepare the journal entry for each of the above transactions.
2. Post the transaction activity from requirement 1 to the T-Accounts below. All accounts begin with zero balances because this is the first month of operations.
3. Prepare an unadjusted trial balance as of April 30.
4-a. Refer to the revenues and expenses shown on the unadjusted trial balance. Based on this information, calculate preliminary net income and net profit margin.
4-b. Determine whether the net profit margin is better or worse than the 30.0 percent earned by a close competitor.
Answer:
Spicewood Stables, Inc.
1. Journal Entries:
April 1:
Debit Cash $230,000
Credit Common Stock $230,000
To record contributions from investors and issuance of stock.
April 2:
Debit Barn $180,000
Credit Cash $90,000
Credit Notes Payable (Long-term) $90,000
To record the acquisition of a barn.
April 3:
Debit Accounts Receivable $18,000
Credit Service Revenue $18,000
To record the provision of animal care services on credit.
April 4:
Debit Cash $14,000
Credit Rent Revenue $14,000
To record the renting of stables to customers for April.
April 5:
Debit Cash $3,350
Credit Deferred Revenue $3,350
To record the receipt of cash from customer in advance.
April 6:
Debit Supplies $3,800
Credit Accounts Payable $3,800
To record the purchase of hay and feed supplies on account.
April 7:
Debit Accounts Payable $2,600
Credit Cash $2,600
To record the payment on account
April 8:
Debit Cash $2,040
Credit Accounts Receivable $2,040
To record the receipt of cash from customers.
April 9:
Debit Prepaid Insurance $4,800
Credit Cash $4,800
To record the prepayment of insurance for 2 years.
April 10:
Debit Utilities Expense $1,140
Credit Cash $1,140
To record the payment for water and utilities.
April 11:
Debit Wages Expense $14,800
Credit Cash $14,800
To record the payment of wages for the month.
April 12:
Debit Utilities Expense $1,560
Credit Utilities Payable $1,560
To record the accrued electric utility bill.
2. T-Accounts:
Cash
Date Account Title Debit Credit
April 1 Common stock $230,000
April 2 Barn $90,000
April 4 Rent Revenue 14,000
April 5 Deferred Revenue 3,350
April 7 Accounts payable 2,600
April 8 Accounts receivable 2,040
April 9 Prepaid Insurance 4,800
April 10 Utilities Expenses 1,140
April 11 Wages Expense 14,800
April 12 Balance $136,050
Totals $249,390 $249.390
Common Stock
Date Account Title Debit Credit
April 1 Cash $230,000
Barn
Date Account Title Debit Credit
April 2 Cash $90,000
April 2 Notes payable 90,000
April 12 Balance $180,000
Notes Payable
Date Account Title Debit Credit
April 2 Barn $90,000
Accounts Receivable
Date Account Title Debit Credit
April 3 Service Revenue $18,000
April 8 Cash $2,040
April 12 Balance $15,960
Service Revenue
Date Account Title Debit Credit
April 3 Accounts receivable $18,000
Rent Revenue
Date Account Title Debit Credit
April 4 Cash $14,000
Deferred Revenue
Date Account Title Debit Credit
April 5 Cash $3,350
Supplies
Date Account Title Debit Credit
April 6 Accounts Payable $3,800
Accounts Payable
Date Account Title Debit Credit
April 6 Supplies $3,800
April 7 Cash $2,600
April 12 Balance $1,200
Prepaid Insurance
Date Account Title Debit Credit
April 9 Cash $4,800
Utilities Expenses
Date Account Title Debit Credit
April 10 Cash $1,140
Wages Expense
Date Account Title Debit Credit
April 11 Cash $14,800
3. Unadjusted Trial Balance as of April 30:
Account Title Debit Credit
Cash $136,050
Common stock $230,000
Barn 180,000
Notes payable 90,000
Accounts receivable 15,960
Service Revenue 18,000
Rent Revenue 14,000
Deferred Revenue 3,350
Supplies 3,800
Accounts payable 1,200
Prepaid Insurance 4,800
Utilities Expenses 1,140
Wages Expense 14,800
Totals $356,550 $356,550
4a.
Service Revenue 18,000
Rent Revenue 14,000
Total revenues $32,000
Utilities Expenses 1,140
Wages Expense 14,800
Total expenses $15,940
Net Income $16,060
Net profit margin = $16,060/$32,000 * 100 = 50.19%
4b. The net profit margin is better than the 30.0% earned by a close competitor.
Explanation:
The adjustment for Electric Utility does not form part of the adjusted trial balance. If we assume that the payment was eventually made on April 30, the Cash Balance will reduce by $1,560 and the total expenses will increase by the same amount with an equal reduction in the net income to $14,500. This will also reduce the net profit margin to 45.31%.
You are asked to assess the current service model for a manufacturing line featuring 8 machines. Based on empirical data you have determined that machines have a 23% likelihood of being down and in need of repair. There are currently 2 workers capable of running and repairing machines. Each of the 8 machines can produce 18 units/hour. The overhead for running each of the 8 machines is $713 per day per machine. Each operator is paid at an hourly rate of $15. [You can assume an 8-hour work day]
a. Determine the total amount of lost work time.
b. Should you hire an additional worker to run the 8 machines in this manufacturing line?
Answer:
A) 14.72 hours
B) An additional worker should be hired since the lost work time is 14.72 hours
Explanation:
Number of machines on manufacturing line = 8
percentage of machine been down = 23%
number of workers capable of running and repairing machines = 2
machine productivity ( per machine ) = 18 units/hour
overhead cost / machine = $713
hourly rate paid per worker = $15
Total number of work hours = 8 hour
A) calculate Total amount of lost worktime
= number of machines * Total number of work hours * 23%
= 8 * 8 * 23% = 14.72 hours
B) An additional worker should be hired since the lost work time is 14.72 hours
In Year 1, the investor acquired 10% ownership of investee and applied fair value method to account for the investment. In Year 2, the investor acquired another 30% ownership and applied equity method to account for the investment (40% ownership). In Year 3, the investor sold 35% ownership of the investee and started using fair value method again to account for the investment (5% ownership). Should the investor apply retrospective adjustment in Year 2 and Year 3
Answer:
b
Explanation:
What is one of the basic principles of economics?
A.
Society’s resources are unlimited.
B.
People never put their own interests as their first priority.
C.
If people demand a product, then businesses are required to supply it.
D.
Society and its individuals have unlimited wants.
Answer:
D. Society and its individuals have unlimited wants.
Explanation:
Economics can be defined as the study of how to use scarce or limited resources to meet the unending needs and wants of the consumers.
One of the basic principles of economics is that society and its individuals have unlimited wants because humans are generally insatiable. Therefore, we are left with the option of choosing (choices) because we cannot have all that we desire or want and the resources used to meet the demands are scarce or limited.
Generally, Economics can be classified into two (2) categories, namely;
1. Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
2. Microeconomics can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets.
Hence, it is focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.
Answer:
d
Explanation:
The International Bank for Reconstruction and Development was originally founded with the purpose of:_________
Answer:
Explanation:
This banks original purpose for being founded was to provide money and help pay for the reconstruction of European nations that suffered great losses during the second World War. This bank was founded in 1944, one whole year before the end of the war. The war completely destroyed many European nations as well as their economies so it was very difficult for them to rebuild without the help of the International Bank for Reconstruction and Development.
Constable Co. reported the following information at December 31, Year 1:
Accounts Payable $4,540
Accounts Receivable 9,390
Cash 23,890
Common Stock 90,400
Equipment 49,900
Inventory 31,600
Notes Payable due December 31, Year 3 2,540
Retained Earnings, December 31, Year 1 14,130
Wages Payable 3,170
What is the amount of current liabilities on the classified balance sheet?
Answer:
The amount of Current liabilities is $7,710
Explanation:
The amount of current liabilities on the classified balance sheet is seen below;
Constable Corp.
Balance sheet as at December 31, year 1.
Current liabilities
Accounts payable $4,540
Wages payable $3,170
Total $7,710
Skysong, Inc. compiled the following financial information as of December 31, 2022:
Service revenue $827000
Common stock 181000
Equipment 232000
Operating expenses 748000
Cash 202000
Dividends 64000
Supplies 38000
Accounts payable 113000
Accounts receivable 95000
Retained earnings, 1/1/22 444000
Skysong's retained earnings on December 31, 2022 are:_________
Answer:
$459,000
Explanation:
The computation of the ending retained earning balance is shown below:
Ending retained earning balance is
= Opening retained earning balance + net income - dividend
where
Net income
= Service revenue - operating expenses
= $827,000 - $748,000
= $79,000
Now the ending retained earnings balance is
= $444,000 + $79,000 - $64,000
= $459,000
Select the best opening for a letter from a local nonprofit organization that refuses a request for a charitable donation.
A. The services you provide for homeless families in our community are necessary and important.
B. This is to inform you that your kind letter of May 14 has been directed to me for reply.
C. We have received your letter requesting a donation to your annual fund-raiser.
D. Although we admire what your organization does for our community, unfortunately we are unable to donate to your fund-raiser at this time.
Answer:
B. This is to inform you that your kind letter of May 14 has been directed to me for reply.
Explanation:
According to the given options, the option B should be selected for refusing the request for a charitable donation as letter of may 14 would be directed to me for reply as it represent the declination of request made for charitable donation
So the option b is correct
and, the rest of the options are incorrect
Question 7 of 10
Your company emphasizes the important of conserving (not wasting)
resources. How can you support that value when you print an 8-page report
you were asked to bring to your department's monthly meeting?
A. Use the Print option for two-sided printing.
B. Post the report online before printing it.
C. Use the Print option to create extra copies.
D. Use the Save option to choose a format readers can open.
SUBMIT
Answer:
A. Use the Print option for two-sided printing.
I'd choose A, although I don't really understand what option D means..
Conservative Bank offers loans at various interest rates, depending on the nature of the loan. Jake wants to borrow $200,000 for a new home. He promises to pay back the loan in 10 years. Alyssa also wants to borrow $200,000 for a new home. She promises to pay back the loan in 15 years. Assume Jake and Alyssa are equally creditworthy and that the two home mortgages are the same in all other aspects. If all else is constant, the bank would most likely charge a higher interest rate to___.
Answer:
Bank would most likely charge a higher interest rate to Alyssa
Explanation:
Credit worthiness of Jake and Alyssa is same and interestingly amount is also same. But Alyssa is taking it for long period of time say, 15 years while Jake will return in 10 years. Bank decides the interest rate based on the economic conditions. Short term loan are given at lower rate because it is easy to predict the future. But here in both cases, loans are taken for long period. But still Alyssa period is greater than Jake. Thus, bank will charge higher interest rate from Alyssa.
Which of the following best illustrates Hofstede's definition of collectivism?
a. Managers at Honest Tea expect that all employees will have an interest and part in environmental sustainability
b. The founder of Honest Tea stresses the importance of equality and opportunity
c. An employee of Honest Tea prefers to work alone and puts him- or herself above others
d. The managers of Honest Tea prefer tradition over change
e. Employees in Honest Tea have high levels of anxiety about uncertainty
Answer:
a. Managers at Honest Tea expect that all employees will have an interest and part in environmental sustainability
Explanation:
Analyzing the information about Honest Tea, it is possible to understand that sustainability is an issue that has a lot of weight for the company, and all its processes are managed in an environmentally responsible manner. Therefore, it is correct to say that Honest Tea managers expect all employees to be interested and participate in environmental sustainability, as this is a value that identifies and positions the company in the market, and it is essential that this value is shared by all employees.
Environmental management is a form of management that provides significant advantages to an organization, as it standardizes procedures and policies to reduce environmental impacts, the company operates with a focus on continuous improvement that reduces costs, waste, makes work most satisfactory and sustainability as a shared value.
Below are the transactions for Salukis Car Cleaning for June, the first month of operations.
June 1 Obtain a loan of $53,000 from the bank by signing a note.
June 2 Issue common stock in exchange for cash of $23,000.
June 7 Purchase car wash equipment for $58,000 cash.
June 10 Purchase cleaning supplies of $6,300 on account.
June 12 Wash 330 cars for $10 each. All customers pay cash.
June 16 Pay employees $730 for work performed.
June 19 Pay for advertising in a local newspaper, costing $330.
June 23 Wash 430 cars for $10 each on account.
June 29 Pay employees $780 for work performed.
June 30 A utility bill of $1,230 for the current month is paid.
June 30 Pay dividends of $430 to stockholders.
1. Record each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account.
4. Prepare a trial balance for June.
Answer:
Part 1
June 1
Debit : Cash $53,000
Credit : Bank Note $53,000
June 2
Debit : Cash $23,000
Credit : Common Stock $23,000
June 7
Debit : Equipment $58,000
Credit : Cash $58,000
June 10
Debit : Supplies $6,300
Credit : Account Payables $6,300
June 12
Debit : Cash $3,300
Credit : Service Revenue $3,300
June 16
Debit : Salaries $730
Credit : Cash $730
June 19
Debit : Advertising $330
Credit : Cash $330
June 23
Debit : Trade Receivables $4,300
Credit : Service Revenue $4,300
June 29
Debit : Salaries $780
Credit : Cash $780
June 30
Debit : Utility Bill $1,230
Credit : Cash $1,230
June 30
Debit : Dividends $430
Credit : Cash $430
Part 2 & 3
Cash : Debit Side - $53,000 + $23,000 + $3,300, Credit Side - $58,000 + $730 + $330+ $780+ $1,230+$430 = $17,800 (debit)
Bank Note : Debit Side - Credit Side - $53,000 = $53,000 (credit)
Common Stock : Debit Side - Credit Side - $23,000 = $23,000 (credit)
Equipment : Debit Side - $58,000 Credit Side - = $58,000 (debit)
Supplies : Debit Side - $6,300 Credit Side - = $6,300 (debit)
Accounts Payable : Debit Side - Credit Side - $6,300 = $6,300 (credit)
Service Revenue ; Debit Side - Credit Side - $3,300 + $4,300 = $7,600(credit)
Salaries : Debit Side - $730 + $780 Credit Side - = $1,510 (debit)
Advertising : Debit Side - $330 Credit Side - = $330 (debit)
Accounts Receivables : Debit Side - $4,300 Credit Side - = $4,300 (debit)
Utility Bill : Debit Side - $1,230 Credit Side - = $1,230 (debit)
Dividends : Debit Side - $430 Credit Side - = $430 (debit)
Part 4
Trial Balance as at 30 June
Debit Credit
Cash $17,800
Bank Note $53,000
Common Stock $23,000
Equipment $58,000
Supplies $6,300
Accounts Payable $6,300
Service Revenue $7,600
Salaries $1,510
Advertising $330
Accounts Receivables $4,300
Utility Bill $1,230
Dividends $430
Totals $89,900 $89,900
Explanation:
The Accounting Process starts with recording transactions in the Journals. The Journals are then posted to the Account Affected and the balances of those Accounts are determined. The trial Balance is then prepared by extracting these balance to find the Debit and Credit Totals to check mathematical accuracy.
On January 1, Gucci Brothers Inc. started the year with a $696,000 balance in Retained Earnings and a $602,000 balance in common stock. During the year, the company reported net income of $109,000, paid a dividend of $14,400, and issued more common stock for $30,000. What is total stockholders' equity at the end of the year?
Answer:
See below
Explanation:
Given the above information, we will first calculate the common stock
Common stock = Balance in common stock + Common stock issued
= $602,000 + $30,000
= $632,000
Retained earnings
= Balance in retained earning + Net income - dividend paid
= $696,000 + $109,000 - $14,400
= $790,600
Total stockholder equity
= Common stock + retained earning
= $632,000 + $790,600
= $1,422,600
Assume that the risk-free rate of interest is 3% and the expected rate of return on the market is 14%. I am buying a firm with an expected perpetual cash flow of $1,000 but am unsure of its risk. If I think the beta of the firm is 0.9, when in fact the beta is really 1.8, how much more will I offer for the firm than it is truly worth
Answer: $3,365.98
Explanation:
Value of firm with beta of 0.9.
First use CAPM to find the required return:
= Risk free rate + beta * (Market return - risk free rate)
= 3% + 0.9 * (14% - 3%)
= 12.9%
Firm Value = Perpertual cashflow / Required return
= 1,000 / 12.9%
= $7,751.94
Value of firm with beta of 1.8.
Required return = 3% + 1.8 * (14% - 3%)
= 22.8%
Value of firm = 1,000 / 22.8%
= $4,385.96
Difference = 7,751.94 - 4,385.96
= $3,365.98
You would be paying $3,365.98 than the firm is worth.
A product priced at $5 has annual sales of 1,000 units. When price is reduced to $4, quantity increases to 1,250 units. Other things unchanged, the price elasticity of demand for the product is:
Answer:
Unitary
Explanation:
Price elasticity of demand is demand is defined as a measure of how sensitive quantity of a product demanded is sensitive to changes in price.
Usually an increase in price results in a reduction in quantity demanded, and reduction in price results in an increase in quantity demanded.
Using the midpoint method of calculating price elasticity
Price elasticity = (change in quantity demanded) ÷ (change in price)
Change in quantity demanded = (1000-1250)/(100+1250)/2
Change in quantity demanded = -0.2222
Change in price = (5-4) / (5+4)/2
Change in price = 0.2222
Price elasticity = -0.2222 ÷ 0.2222 = -1
Therefore price elasticity is unitary.
Unitary elasticity means that a a percentage change in price results in equal percentage change in quantity demanded
At his new job, Carlos notices that everyone places high values on their families and each others' families, birthdays are always celebrated, and flexible schedules are permitted to facilitate family involvement as long as the work is still getting done. Everyone is very relaxed and friendly. Carlos has made several observations about the:________
a. organizational structure.
b. ethical climate.
c. morale and performance programs.
d. codes of conduct.
e. corporate culture.
Answer:
e. corporate culture
Explanation:
Carlos has made several observations about the corporate culture. In other words, his observations were mainly about the believes and decisions that the company has made regarding its employees and outside of work factors. Which in this case are families. Their corporate culture values family a lot and they seem to hire individuals whose traits match these values as well. This is why they allow all of these leeways and benefits when regarding employee families.
Software Distributors reports net income of $58,000. Included in that number is depreciation expense of $11,500 and a loss on the sale of land of $5,300. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $28,000, a decrease in inventory of $16,500, and an increase in accounts payable of $48,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method.
Answer:
Software Distributors
Statement of cash flows (partial)
Cash flow from operating activities:
Net income $58,000
Adjustments to reconcile net income to
net cash flows from operating activities
Add: Depreciation expense $11,500
Add: Loss on sale of land $5,300
Add: Decrease in accounts receivable $28,000
Add: Decrease in inventory $16,500
Add: Increase in accounts payable $48,000
Net cash flow from operating activities $167,300
Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below:
Processing $ 5,945
Supervising $ 19,680
Other $ 11,300
Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:
MHs (Processing) Batches (Supervising)
Product M0 13,700 400
Product M5 800 400
Total 14,500 800
Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.
Product M0 Product M5
Sales (total) $ 81,800 $ 94,400
Direct materials (total)$ 29,400 $ 32,300
Direct labor (total) $ 28,700 $ 42,600
What is the product margin for Product M5 under activity-based costing?
Answer:
Product margin= $9,332
Explanation:
First, we need to allocate the activity cost to product M5:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Processing= 5,945/14,500= $0.41 per machine hour
Supervising= 19,680/800= $24.6 per batch
Product M5:
Processing= 0.41*800= $328
Supervising= 24.6*400= $9,840
Finally, the total cost and the product margin:
Total cost= 32,300 + 42,600 + (328 + 9,840)
Total cost= $85,068
Product margin= 94,400 - 85,068
Product margin= $9,332
A rational buyer will: buy a product until the marginal benefit of consuming the product is less than the price of the product. buy the product only when the marginal benefit of consuming the product is twice as much as the price of the product. not consider costs versus benefits when purchasing a product. keep buying a product until marginal benefit equals price.
Answer:
keep buying a product until marginal benefit equals price
Explanation:
A rational consumer would continue to consume a product until the marginal benefit of the last unit consumed equal marginal cost. At this point, utility is maximised.
For example, if the price of a bottle of water is $4. The utility you derive from the first bottle is 6. So you consume one more bottle, the utility you derive from the second bottle is 5. you buy a third bottle. The utility you derive from the 3rd bottle is 4. At this point utility is maximised and you should stop consuming more water
If you consume a 4th bottle, the utility you would derive from it would be 3 utils. This doesn't make sense because you are paying more for the bottle when compared to the utility you would derive from it
The accounting staff at Valencia Manufacturing, Incorporated has provided the following data for the month of July. The balance in the Work in Process inventory account was $31,000 at the beginning of the month and $21,500 at the end of the month. During the month, the Corporation incurred direct materials cost of $56,800 and direct labor cost of $30,700. The actual manufacturing overhead cost incurred was $53,900. The manufacturing overhead cost applied to Work in Process was $52,800. The cost of goods manufactured for July was:
Answer:
the cost of goods manufactured is $149,800
Explanation:
The computation of the cost of goods manufactured is given below:
= Opening work in process + total manufacturing cost - ending work in process
= $31,000 + ($56,800 + $30,700 + $52,800) - $21,500
= $31,000 + $140,300 - $21,500
= $149,800
hence, the cost of goods manufactured is $149,800
Prepaid rent for three months, $3,600. May 5 Received and paid electricity bill, $900. May 9 Received cash for meals served to customers, $2,000. May 14 Paid cash for kitchen equipment, $3,120. May 23 Served a banquet on account, $3,200. May 31 Made the adjusting entry for rent (from May 1). May 31 Accrued salary expense, $1,800. May 31 Recorded depreciation for May on kitchen equipment, $52
On December 31, 2018 Dean Company changed its method of accounting for inventory from weighted average cost method to the FIFO method. This change caused the 2018 beginning inventory to increase by $960,000. The cumulative effect of this accounting change to be reported for the year ended 12/31/18, assuming a 40% tax rate, is Group of answer choices
Answer:
$576,000
Explanation:
Calculation for what The cumulative effect of this accounting change to be reported for the year ended 12/31/18, assuming a 40% tax rate, is
Accounting change cumulative effect= ($960,000 × (1 - .40)
Accounting change cumulative effect= ($960,000×0.6)
Accounting change cumulative effect= $576,000
Therefore The cumulative effect of this accounting change to be reported for the year ended 12/31/18, assuming a 40% tax rate, is $576,000
M Corp. has an employee benefit plan for compensated absences that gives each employee 15 paid vacation days. Vacation days can be carried over indefinitely. Employees can elect to receive payment in lieu of vacation days. At December 31, 2021, M's unadjusted balance of liability for compensated absences was $35,400. M estimated that there were 200 total vacation days available at December 31, 2021. M's employees earn an average of $177 per day. After recording any necessary adjustment, in its December 31, 2021, balance sheet, what amount of liability for compensated absences is M required to report
Answer:
$35,400
Explanation:
Calculation for what amount of liability for compensated absences is M required to report
Using this formula
Liability for compensated absences=Total vacation days available at December 31, 2021 *Average wage per day
Let plug in the formula
Liability for compensated absences=200*$177 per day
Liability for compensated absences=$35,400
Therefore the Liability for compensated absences at December 31, 2021 will be $35,400
Stephen is a new insurance agent with an established company.He is nervous at the idea of making cold calls on the telephone to prospective clients.After thinking through the problem,Stephen decides to ask his supervisor if he can host a small introductory meeting,inviting local business in for coffee and cake to introduce himself.Stephen is exhibiting a high level of hope.
a. True
b. False
Answer:
a. True
Explanation:
It is correct to say that Stephen is exhibiting a high level of hope because he had the idea of organizing a small introductory meeting in order to introduce himself to local companies and thus break the initial nervousness that could occur if he did not previously know his potential client. With this introductory meeting for greater integration between him, who is the new insurance agent and the companies that are his potential clients, there may be greater interaction, greater possibility of closing deals and greater customer satisfaction, lessening insecurity, etc.
The Coyote Watershed has two large reservoirs built and operating on-stream to capture storm runoff in the upper watershed. They are named Coyote and Anderson Reservoirs. The capacities of these two reservoirs are 23,244 ac-ft and 90,373 ac-ft, respectively. Coyote Reservoir is approximately five miles upstream from the high water line of Anderson Reservoir and is regulated by releasing water downstream into Anderson Reservoir.
In January, 2017, storms added considerable volume of water to this set of reservoirs, approximately 20,000 ac-ft of runoff were captured. Assuming the upper watershed is 200 square miles and is saturated (100% runoff), calculate the total inches of rain needed to add this amount of runoff to yield this net increase in the two reservoirs combined. Hint: 1 sq. mi. = 640 acres 1 acre-ft= 12 acre inches
Answer:
The answer is "1.875 in of rain"
Explanation:
The reservoir size is negligible. It's just a problem how often rain is required for 20000 acre-feet across an area of 200 square miles.
Calculating the area in acre:
[tex]= 200 \ mi^{2} \times 640 \frac{acre}{mi^2}\\\\= 128,000 \ acres[/tex]
calculating the value of the rainfall in feet:
[tex]= \frac{20,000 \ acre\-feet}{128,000 \ acres}\\\\= 0.15625 \ ft[/tex]
calculating the value of Rainfall in inches:
[tex]= 0.15625 \ ft \times 12 \frac{in}{ft}\\\\= 1.875 \ \text{in of rain}[/tex]