Answer:
1.
A. Dr Inventory 180,000
Cr Accounts Payable 180,000
B. Dr Accounts Receivable 235,000
Cr Sales Revenue 235,000
C. Dr Cost of Goods Sold 135,000
Cr Inventory 135,000
D. Dr Cash 70,500
Cr Accounts Receivable 70,500
2. BALANCE SHEET $45,000
INCOME STATEMENT $100,000
Explanation:
1. Preparation of the journal entry
A. Preparation of the journal entry for the purchase of inventory.
Dr Inventory 180,000
Cr Accounts Payable 180,000
(Being to record the purchase of inventory)
B. Preparation of the journal entry for sale
Dr Accounts Receivable 235,000
Cr Sales Revenue 235,000
(Being to record sale revenue)
C. Preparation of the journal entry to
Record the cost of goods sold portion of the sale.
Dr Cost of Goods Sold 135,000
Cr Inventory 135,000
(75%*180,000)
(Being to record cost of goods sold portion of the sale)
D. Preparation of the journal entry to Record the collection of 30% of the accounts receivable.
Dr Cash 70,500
Cr Accounts Receivable 70,500
(30%*235,000)
(Being to record the collection of 30% of the accounts receivable)
2. Calculation to Determine what the company will report on the balance sheet
BALANCE SHEET
Current Assets:
Inventory $45,000
(180,000-135,000)
Therefore the company will report $45,000 on the balance sheet
Calculation to Determine what the company will report on the income statement:
INCOME STATEMENT
Sales revenue 235,000
Less Cost of Goods Sold 135,000
Gross profit $100,000
Therefore the company will report $100,000 on the income statement
On January 1, 2021, Red Flash Photography had the following balances: Cash, $20,000; Supplies, $8,800; Land, $68,000; Deferred Revenue, $5,800; Common Stock $58,000; and Retained Earnings, $33,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $28,000. 2. May 20 Provide services to customers for cash, $43,000, and on account, $38,000. 3. August 31 Pay salaries to employees for work in 2021, $31,000. 4. October 1 Paid for one year's rent in advance, $20,000. 5. November 17 Purchase supplies on account, $30,000. 6. December 30 Pay dividends, $2,800.
The following information is available on December 31, 2021:
1. Employees are owed an additional $4,800 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $5,800 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.
Answer:
A. 15-Feb
Dr Cash $ 28,000.00
Cr Common Stock $ 28,000.00
20-May
Dr Cash $ 43,000.00
CrAccounts Receivable $ 38,000.00
Cr To Service Revenue $ 81,000.00
31-Aug
Dr Salaries Expense $ 31,000.00
Cr To Cash $ 31,000.00
1-Oct
Dr Prepaid Rent $ 20,000.00
Cr To Cash $ 20,000.00
17-Nov Dr Supplies $ 30,000.00
Cr Accounts Payable $ 30,000.00
30-Dec
Dr Dividends $ 2,800.00
Cr Cash $ 2,800.00
31-Dec
Dr Salaries Expense $ 4,800.00
Cr Salaries Payable $ 4,800.00
31-Dec
Dr Rent Expense $ 5,000.00
Cr Prepaid Rent $ 5,000.00
31-Dec
Dr Supplies Expense $ 33,000.00
Cr Supplies $ 33,000.00
31-Dec
Dr Deferred Revenue $ 5,800.00
Cr Service Revenue $ 5,800.00
B. $ 13,000.00
C. $ 43,200.00
D.TOTAL ASSETS $ 164,000.00
TOTAL LIABILITIES and EQUITY $ 164,000.00
Explanation:
Preparation of General Journal, Income Statement, Statement of SE, Balance Sheet
15-Feb
Dr Cash $ 28,000.00
Cr Common Stock $ 28,000.00
20-May
Dr Cash $ 43,000.00
CrAccounts Receivable $ 38,000.00
Cr To Service Revenue $ 81,000.00
31-Aug
Dr Salaries Expense $ 31,000.00
Cr To Cash $ 31,000.00
1-Oct
Dr Prepaid Rent $ 20,000.00
Cr To Cash $ 20,000.00
17-Nov Dr Supplies $ 30,000.00
Cr Accounts Payable $ 30,000.00
30-Dec
Dr Dividends $ 2,800.00
Cr Cash $ 2,800.00
31-Dec
Dr Salaries Expense $ 4,800.00
Cr Salaries Payable $ 4,800.00
31-Dec
Dr Rent Expense $ 5,000.00
Cr Prepaid Rent $ 5,000.00
($ 20000 x 3/12)
31-Dec
Dr Supplies Expense $ 33,000.00
Cr Supplies $ 33,000.00
($ 8800 + $ 30000 - $ 5800)
31-Dec
Dr Deferred Revenue $ 5,800.00
Cr Service Revenue $ 5,800.00
B. Preparation of INCOME STATEMENT
Service REVENUE $ 86,800.00
Less: EXPENSES
Salaries Expense $ 35,800.00
Rent Expense $ 5,000.00
Supplies Expense $ 33,000.00
Net Income $ 13,000.00
($ 86,800.00-$ 73,800.00)
Therefore the income statement will be $ 13,000.00
Calculation for the STATEMENT OF RETAINED EARNINGS
Beginning Balance $ 33,000.00
Add: Net Income $ 13,000.00
Less: Dividends $ (2,800.00)
Ending Balance $ 43,200.00
Therefore retained earnings will be $ 43,200.00
D. Preparation of BALANCE SHEET
ASSETS
Cash $ 37,200.00
Accounts Receivable $ 38,000.00
Prepaid Rent $ 15,000.00
Supplies $ 5,800.00
Land $ 68,000.00
TOTAL ASSETS $ 164,000.00
LIABILITIES and EQUITY
Liabilities
Accounts Payable $ 30,000.00
Salaries Payable $ 4,800.00
Total Liabilities $ 34,800.00
Equity
Common stock $ 86,000.00
Retained Earnings $ 43,200.00
Total Equity $ 129,200.00
TOTAL LIABILITIES and EQUITY $ 164,000.00
Therefore the balance sheet will be
ASSETS $ 164,000.00
TOTAL LIABILITIES and EQUITY $ 164,000.00
A refrigerator costs $800 on an installment plan that requires a down payment of $140 and monthly payments for 12 months. What are the monthly payments of the plan?
Cheyenne Corp. incurred the following costs while manufacturing its product.
Materials used in product $129,100 Advertising expense $53,200
Depreciation on plant 64,600 Property taxes on plant 16,000
Property taxes on store 8,160 Delivery expense 24,300
Labor costs of assembly-line workers 111,300 Sales commissions 40,100
Factory supplies used 28,700 Salaries paid to sales clerks 57,100
Work in process inventory was $14,500 at January 1 and $16,800 at December 31. Finished goods inventory was $69,500 at January 1 and $46,000 at December 31.Compute cost of goods manufactured.
Answer:
$347,400
Explanation:
Cost of goods manufactured = Material used in product + Labor costs of assembly line workers + Factory overheads (ie Depreciation on plant+ Property taxes on plant + Factory supplies used) + Opening WIP - Closing WIP
Cost of goods manufactured = $129,100 + $111,300 + $64,600 + $16,000 + $28,700 + $14,500 - $16,800
Cost of goods manufactured = $347,400
A machine cost $239,800, has annual depreciation expense of $47,960, and has accumulated depreciation of $119,900 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $96,320, it is exchanged for a similar machine with a fair value of $281,800 and the proper amount of cash is paid. The exchange lacked commercial substance.
Required:
Prepare all entries that are necessary at April 1, 2021.
Answer:
April 1, 2021
Dr Depreciation expense 11,990
Cr Accumulated depreciation 11,990
April 1, 2021
Dr Machinery, New $281,800
Dr Accumulated depreciation- Machinery 123,890
Dr Loss on disposal of machinery 19,590
Cr Cash 185,480
Cr Machinery, Old $239,800
Explanation:
Preparation of all entries that are necessary at April 1, 2021.
April 1, 2021
Dr Depreciation expense 11,990
Cr Accumulated depreciation 11,990
(47,960 * 3/12)
(Being To record depreciation)
April 1, 2021
Dr Machinery, New $281,800
Dr Accumulated depreciation- Machinery (111,900+11,990) 123,890
Dr Loss on disposal of machinery 19,590
[185,480+$239,800-($281,800+123,890)]
Cr Cash 185,480
($281,800-$96,320)
Cr Machinery, Old $239,800
(Being To record the exchange of machinery)
Help Help!~ I will give brainliest to the first correct & honest answer!
Beekeeping has become a focus of Jacinta’s life. She understands that bees are fast disappearing and works hard to keep her hives healthy and productive. The Agriculture, Food, and Natural Resource pathway Jacinta works in is _____.
a). Agribusiness Systems
b). Food Products & Processing Systems
c). Animal Systems
d). Natural Resources Systems
Answer:
Explanation: B Food Products & Processing Systems
Answer:
I think it is Food products and Processing systems
On September 30, 2012, Wildhorse Company issued 9% bonds with a par value of $580,000 due in 20 years. They were issued at 97 and were callable at 103 at any date after September 30, 2017. Because Wildhorse Company was able to obtain financing at lower rates, it decided to call the entire issue on September 30, 2018, and to issue new bonds. New 7% bonds were sold in the amount of $700,000 at 104; they mature in 20 years. Wildhorse Company uses straight-line amortization. Interest payment dates are March 31 and September 30.
Required:
Prepare journal entries to record the redemption of the old issue and the sale of the new issue on September 30, 2018.
Answer:
Wildhorse Company
Journal Entries:
September 30, 2018:
Debit 9% Bonds Payable $580,000
Debit Bond Redemption Expenses $17,400
Credit Cash $597,400
To record the redemption of the 9% Bonds Payable at 103.
September 30, 2018:
Debit Cash $728,000
Credit 7% Bonds Payable $700,000
Credit Bonds Premium $28,000
To record the sale of 7% Bonds Payable at 104.
Explanation:
a) Dat and Calculations:
9% bonds payable at par value = $580,000
Issued at a discount of $17,400 ($580,000 * 97/100) - $580,000
Redeemed at a premium of $17,400 ($580,000 * 103/100) - $580,000
7% bonds payable at par value = $700,000
Issued at a premium of $28,000 ($700,000 * 104/100) - $700,000
Bergamo Bay's computer system generated the following trial balance on December 31, 2017. The company's manager knows something is wrong with the trial balance because it does not show any balance for Work in Process Inventory but does show a balance for the Factory Overhead account. In addition, the accrued factory payroll (Factory Wages Payable) has not been recorded.
After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date.
Materials requisition 21-3010: ............................$10,200 direct materials to Job 402
Materials requisition 21-3011: ............................$18,600 direct materials to Job 404
Materials requisition 21-3012: ........................................$5,600 indirect materials
Labor time ticket 6052: ........................................$36,000 direct labor to Job 402
Labor time ticket 6053: ........................................$23,800 direct labor to Job 404
Labor time ticket 6054: ....................................................$8,200 indirect labor
Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 200% of direct labor cost.
Required
1. Use information on the six source documents to prepare journal entries to assign the following costs.
a. Direct materials costs to Work in Process Inventory.
b. Direct labor costs to Work in Process Inventory.
c. Overhead costs to Work in Process Inventory.
d. Indirect materials costs to the Factory Overhead account.
e. Indirect labor costs to the Factory Overhead account.
2. Determine the revised balance of the Factory Overhead account after making the entries in part 1. Determine whether there is any under- or overapplied overhead for the year. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold, assuming the amount is not material.
3. Prepare a revised trial balance.
4. Prepare an income statement for 2017 and a balance sheet as of December 31, 2017.
Analysis Component
5. Assume that the $5,600 on materials requisition 21-3012 should have been direct materials charged to Job 404. Without providing specific calculations, describe the impact of this error on the income statement for 2017 and the balance sheet at December 31, 2017.
Question Completion:
Trial Balance as at December 31, 2017:
Debit Credit
Cash $170,000
Accounts receivable 75,000
Raw materials inventory 80,000
Work in process inventory 0
Finished goods inventory 15,000
Prepaid rent 3,000
Accounts payable 17,000
Notes payable 25,000
Common stock 50,000
Retained earnings 271,000
Sales 373,000
Cost of goods sold 218,000
Factory overhead 115,000
Operating expenses 60,000
Totals $736,000 $736,000
Answer:
Bergamo Bay
1. Journal Entries to assign the following costs:
a. Direct materials costs to Work in Process Inventory.
Debit Work in Process $10,200
Credit Raw materials $10,200
To record direct materials for Job 402.
Debit Work in Process $18,600
Credit Raw materials $18,600
To record direct materials for Job 404.
b. Direct labor costs to Work in Process Inventory.
Debit Work in Process $36,000
Credit Factory Payroll Payable $36,000
To record ticket 6052 direct labor to Job 402.
Debit Work in Process $23,800
Credit Factory Payroll Payable $23,800
To record ticket 6053 direct labor to Job 404.
c. Overhead costs to Work in Process Inventory.
Debit Work in Process $119,600
Credit Factory Overhead $119,600
To apply overhead costs, 200% of direct labor cost to WIP.
d. Indirect materials costs to the Factory Overhead account.
Debit Factory Overhead $5,600
Credit Raw materials $5,600
To record indirect materials to factory overhead.
e. Indirect labor costs to the Factory Overhead account.
Debit Factory Overhead $8,200
Credit Factory Payroll Payable $8,200
To record indirect labor costs to factory overhead.
2. Revised balance of the Factory Overhead account after above entries:
= $9,200
Underapplied overhead = $9,200
Adjusting Journal Entry to Cost of Goods Sold:
Debit Cost of Goods Sold $9,200
Credit Factory Overhead $9,200
To record underapplied overhead to cost of goods sold.
3. Revised Balance as at December 31, 2017:
Debit Credit
Cash $170,000
Accounts receivable 75,000
Raw materials inventory 45,600
Work in process inventory 0
Finished goods inventory 223,200
Prepaid rent 3,000
Accounts payable $17,000
Factory payroll payable 65,400
Notes payable 25,000
Common stock 50,000
Retained earnings 271,000
Sales 373,000
Cost of goods sold 227,200
Factory overhead 0
Operating expenses 60,000
Totals $804,000 $801,400
4. Income Statement for the year ended December 31, 2017
Sales 373,000
Cost of goods sold 227,200
Operating expenses 60,000 287,200
Net Income 85,800
Retained Earnings 271,000
Net income 85,800
Retained earnings 356,800
Balance Sheet as of December 31, 2017:
Cash $170,000
Accounts receivable 75,000
Raw materials inventory 45,600
Work in process inventory 0
Finished goods inventory 223,200
Prepaid rent 3,000 $516,800
Accounts payable $17,000
Factory payroll payable 65,400
Notes payable 25,000
Total liabilities 107,400
Common stock 50,000
Retained earnings 356,800 406,800
Total Liabilities and equity 514,200
5. Assume that the $5,600 on materials requisition 21-3012 should have been direct materials charged to Job 404. Without providing specific calculations, describe the impact of this error on the income statement for 2017 and the balance sheet at December 31, 2017
If the $5,600 were direct materials instead of indirect materials, it would not be expensed in the income statement, through Cost of Goods Sold. Instead, it would be carried forward as Finished Goods Inventory in the Balance Sheet.
Explanation:
a) Data and Calculations:
Trial Balance as at December 31, 2017:
Debit Credit
Cash $170,000
Accounts receivable 75,000
Raw materials inventory 80,000
Work in process inventory 0
Finished goods inventory 15,000
Prepaid rent 3,000
Accounts payable $17,000
Notes payable 25,000
Common stock 50,000
Retained earnings 271,000
Sales 373,000
Cost of goods sold 218,000
Factory overhead 115,000
Operating expenses 60,000
Totals $736,000 $736,000
Raw materials inventory
Account Titles Debit Credit
Balance 80,000
Work in Process (Job 402) 10,200
Work in Process (Job 404) 18,600
Factory overhead 5,600
Balance 45,600
Work in process inventory
Account Titles Debit Credit
Balance 0
Raw materials 10,200
Raw materials 18,600
Factory payroll 36,000
Factory payroll 23,800
Overhead 119,600
Finished Goods 208,200
Finished goods inventory
Account Titles Debit Credit
Balance 15,000
WIP 208,200
Balance 223,200
Factory Payroll Payable
Account Titles Debit Credit
WIP ticket 6052 36,000
WIP ticket 6053 23,800
Factory overhead 5,600
Balance 65,400
Cost of goods sold
Account Titles Debit Credit
Balance 218,000
Factory overhead 9,200
Balance 227,200
Factory overhead
Account Titles Debit Credit
Balance 115,000
Raw materials 5,600
Payroll Payable 8,200
Work in Process 119,600
Underapplied:Cost of goods 9,200
Journalize the December 31 adjusting entry required if the amount of unearned fees at the end of the year is $12,530. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Prepaid Insurance
15 Land
16 Equipment
17 Accumulated Depreciation-Equipment
LIABILITIES
21 Accounts Payable
22 Unearned Fees
23 Salaries Payable
24 Taxes Payable
EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
REVENUE
41 Fees Earned
EXPENSES
51 Advertising Expense
52 Insurance Expense
53 Rent Expense
54 Salary Expense
55 Supplies Expense
56 Utilities Expense
57 Depreciation Expense
59 Miscellaneous Expense
Answer:
Dr Unearned fees $24,510
Cr Fees earned $24,510
Explanation:
Preparation of the December 31 adjusting entry required
Based on the information given if the balance shown in the unearned fees account was the amount of $37,040 before adjustment at the end of the year which means that if the amount of unearned fees at the end of the year is the amount of $12,530 the December 31 adjusting entry required will be :
Dr Unearned fees $24,510
Cr Fees earned $24,510
($37,040-$12,530)
Below, you are provided with the value of the income elasticity of demand for a good. You will use this information to identify the percentage change in the quantity demanded for that good that arises from a particular percentage change in the average income of consumers. You will also identify whether the good is a normal good or an inferior good.
The income elasticity of demand captures the percent change in the__________ (quantity demanded, price) of a good or service that results from a percent change in the average income of consumers.
Answer:
quantity demanded
Explanation:
Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go-karts: Deluxe and Basic. Activity Expected Costs Expected Activity Handling materials $ 625,000 100,000 parts Inspecting product 900,000 1,500 batches Processing purchase orders 105,000 700 orders Paying suppliers 175,000 500 invoices Insuring the factory 300,000 40,000 square feet Designing packaging 75,000 2 models Required: Compute the activity rate for each activity, assuming the company uses activity-based costing. (Round activity rate answers to 2 decimal places.)
Answer:
Handling materials = $6.25 per part
Inspecting product = $600 per batch
Processing purchase = $150 per order
Handling materials = $350 per invoice
Insuring the factory = $7.50 per square feet
Designing packaging = $37,500 per model
Explanation:
Activity rate = Estimated Cost ÷ Estimated Activity
therefore,
Handling materials = $ 625,000 ÷ 100,000 parts = $6.25
Inspecting product = $ 900,000 ÷ 1,500 batches = $600
Processing purchase = $ 105,000 ÷ 700 orders = $150
Handling materials = $ 175,000 ÷ 500 invoices = $350
Insuring the factory = $ 300,000 ÷ 40,000 square feet = $7.50
Designing packaging = $ 75,000 ÷ 2 models = $37,500
The deans' suite hoped to cut costs and decided to perform a total cost analysis on its vodka supplier. Consumption was currently 6,000 bottles per semester and this was predicted to maintain that level for the next few years. Their current source, Byron's, charged $9.50 per bottle and packed 288 bottles in a crate. The cost to ship the crate was $15. Another potential source of vodkas was Pancho's, who charged $9.00 per bottle but could ship only 100 bottles in a crate and at a higher price, $20. Assume that a partial crate may be purchased. What is the total annual cost to supply vodka from their current supplier
Answer:
$55,200
Explanation:
Consumption = 6000 bottles
Cost per bottle = $9
Consumption Cost = 6000*$9 = $54,000
No of crates = 6000/100 = 60 crates
Cost pet crate = $20
Crate cost = $1,200
Total annual cost = Consumption Cost + Crate cost
Total annual cost = $54,000 + $1,200
Total annual cost = $55,200
So, the total annual cost to supply vodka from their current supplier is $55,200
The total annual cost to supply vodka from their current supplier is $55,200.
Total annual costConsumption Cost:
Consumption Cost = 6000×$9
Consumption Cost = $54,000
Number of crates:
Number of crates = 6000/100
Number of crates= 60 crates
Total annual cost:
Total annual cost=$54,000+(60×$20)
Total annual cost = $54,000 + $1,200
Total annual cost = $55,200
Inconclusion the total annual cost to supply vodka from their current supplier is $55,200.
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Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs:
Quantity Variable Cost Average Fixed Cost Average Variable Cost Average Total Cost
(Houses Painted per Month) (Dollars) (Dollars) (Dollars) (Dollars)
1 10
2 20
3 40
4 80
5 160
6 320
7 640
The efficient scale is houses.
Answer:
AVERAGE FIXED COST
1 200
2 100
3 66.7
4 50
5 40
6 33.3
7 28.6
AVERAGE VARIABLE COST
1 10
2 10
3 13.3
4 20
5 32
6 53.3
7 91.4
AVERAGE TOTAL COST
1 210
2 110
3 80
4 70
5 72
6 86.7
7 120
The efficient scale is 4 houses per month
Explanation:
Calculation for the average fixed cost, average variable cost, and average total cost for each quantity
First step is to calculate the Variable Cost,Fixed Cost and Total cost
Quantity Variable Cost Fixed Cost Total cost
$0 $200 $200 $200
1 10 +200=210
2 20 +200=220
3 40 +200=240
4 80 + 200=280
5 160 +200=360
6 320 +200=520
7 640+ 200=840
Now let calculate the average fixed cost, average variable cost, and average total cost for each quantity
Calculate AVERAGE FIXED COST
Quantity Fixed Cost AVERAGE FIXED COST
$0 $200 ---
1 200=200 (200/1)
2 200=100 (200/2)
3 200=66.7 (200/3)
4 200=50 (200/4)
5 200=40 (200/5)
6 200=33.3 (200/6)
7 200=28.6 (200/7)
Calculate for AVERAGE VARIABLE COST
Quantity Variable Cost AVERAGE VARIABLE COST
$0 $200 ---
1 10 =10 (10/1)
2 20=10 (20/2)
3 40 =13.3 (40/3)
4 80=20 (80/4)
5 160 =32 (160/5)
6 320=53.3 (320/6)
7 640=91.4 (640/7)
Calculation for AVERAGE TOTAL COST
Quantity Total cost AVERAGE TOTAL COST
$0 $200 -----
1 210 =210 (210/1)
2 220 =110 (220/2)
3 240=80 (240/3)
4 280=70 (280/4)
5 360=72 (360/5)
6 520=86.7 (520/6)
7 840=120 (840/7)
Based on the above Calculation The efficient scale is 4 houses per month reason been that it has the lowest Average total cost of 70 therefore minimizing the Average total cost.
Match each of the following terms A through F with the appropriate definitions 1 through 6.
A. Maker of a note
B. Interest
C. Promissory note
D. Payee of a note
E. Principal of a note
F. Dishonoring a note _____
1. A written promise to pay a specified amount either on demand or at a definite future date. _____
2. The cost of borrowing money for a borrower, alternatively the profit from, lending money for a lender. _____
3. One who signs a note and promises to pay it at maturity. _____
4. The one to whom the promissory note is made payable. _____
5. Refers to a note maker's inability or refusal to pay the note at maturity. _____
6. The amount that the signer of a note agrees to pay back when the note matures, not including interest. Defining promissory notes.
Solution :
A. Maker of a note: 3. It is the person who signs the note and promises to pay.
The maker puts his signature and promises to pay the bearer the amount of the value of the note.
B. Interest: 2. It is the cost of borrowing money and profit for lender.
It is the extra money that the borrower pays to the lender. It is like an income to the lender.
C. Promissory note: 1. It is a promise to pay the signed sum.
It is a note that promises to pay the amount of the value.
D. Payee of a note: 5. It is the person to which the note is payable.
Payee is the individual who is the owner of the note.
E. Principal of a note: E. It is the amount signed to be paid back excluding interest.
It is the basic amount signed to be paid to the bearer.
F. Dishonoring a note: 5. It is inability to pay the signed sum.
Dishonoring is refusal to pay or the inability to pay the value for the signed amount.
Information concerning a magazine’s readership is of interest both to the publisher and to the magazine’s advertisers. A survey of 500 subscribers included the following questions. For each question, determine the data type of possible responses.
a What is your age?
b What is your gender?
c What is your marital status?
d Is your annual income less than $30000,
between $30000 and $60000, or over
$60 000?
e To how many other magazines do you
subscribe?
f How do you rate the feature article
published in the current issue of the magazine (very good, good or poor)?
The smallest amount you must pay each month on a loan is called the A. annual percentage rate B. annual fee C. minimum finance charge D. minimum monthly payment SUBMIT
Answer: D. minimum monthly payment
Explanation:
The minimum monthly payment is the lowest that a person should pay per month on a loan, particularly that of a credit card, if they do not want to be ruled as being in default.
The advantage of this is that the person will still be in good standing with the creditor meaning that they have not defaulted (really bad for credit score). Disadvantage is that the loan interest will be higher as it is based on a larger balance than had the person paid more.
Suppose the government imposes a tax on cheese. The deadweight loss from this tax will likely be greater in the a. eighth year after it is imposed than in the first year after it is imposed because demand and supply will be less elastic in the first year than in the eighth year. b. first year after it is imposed than in the eighth year after it is imposed because demand and supply will be less elastic in the first year than in the eighth year. c. first year after it is imposed than in the eighth year after it is imposed because demand and supply will be more elastic in the first year than in the eighth year.
Answer:
A
Explanation:
Deadweight loss of tax measures the decrease in demand as a result of an increase in tax
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.
Demand is less elastic in the short run because there is no enough time for consumers to find suitable and cheaper substitutes. As time goes on, demand becomes more elastic because consumers would have had enough time to find cheaper substitutes
Supply is also less elastic in the short time and more elastic in the long run
2/2
John's employer offered him health insurance coverage for $125 per month that would
cover him as an individual. However, he was also offered the option to cover himself, bis
wife, and his child for $295 a month. How much extra would it cost John annually to add
his family to his health insurance?
M. K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a national exchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted that the company’s earnings would grow by 20% this year. Unfortunately, sales have been less than expected for the year, and Gallant concluded within two weeks of the end of the fiscal year that it would be impossible to report an increase in earnings as large as predicted unless some drastic action was taken. Accordingly, Gallant has ordered that wherever possible, expenditures should be postponed to the new year—including canceling or postponing orders with suppliers, delaying planned maintenance and training, and cutting back on end-of-year advertising and travel. Additionally, Gallant ordered the company’s controller to carefully scrutinize all costs that are currently classified as period costs and reclassify as many as possible as product costs. The company is expected to have substantial inventories at the end of the year.
1. Why would reclassifying period costs as product costs increase this period’s reported earnings?
2. Do you believe Gallant’s actions are ethical? Why or why not?
Based on the following information, determine the location quotient for Amusement City and whether this city has a competitive advantage in the amusement industry: employment in amusements and recreation in Amusement City: 54,446; total employment in Amusement City: 578,477; employment in amusements and recreation (nationally): 1,381,377; total employment (nationally): 106,201,232.
a. 0.23; No, the city does not have a competitive advantage in this industry.
b. 4.43; No, the city does not have a competitive advantage in the industry
c. 0.23; Yes, the city has a competitive advantage in this industry
d. 4.43; Yes, the city has a competitive advantage in this industry
Answer:
a. 0.23; No, the city does not have a competitive advantage in this industry
Explanation:
Calculation to determine the location quotient for Music City and whether this city has a competitive advantage in the entertainment industry
Location quotient for Music City= (3020/ 656,785)/ (2,160,970/ 106,201,232)
Location quotient for Music City=0.004598/0.020347881
Location quotient for Music City= 0.225
Location quotient for Music City= 0.23 (Approximately)
Based on the above calculation the city does NOT have a competitive advantage in this industry.
Tammy, a resident of Virginia, is considering purchasing a $100,000 North Carolina bond that yields 4.6% before tax. She is in the 35% Federal marginal tax bracket and the 5% state marginal tax bracket. She is aware that State of Virginia bonds of comparable risk are yielding 4.5%. However, the Virginia bonds are exempt from Virginia tax, but the North Carolina bond interest is taxable in Virginia. Tammy can deduct any state taxes paid on her Federal income tax return. In your analysis, assume that the bond amount is $100,000.
The question is incomplete. The complete question is :
Tammy, a resident of Virginia, is considering whether to purchase a $100, 000 North Carolina bond that yields 4.6% before tax. She is in the 35% Federal marginal tax bracket and the 5% state marginal tax bracket. Tammy is aware that State of Virginia bonds of comparable risk are yielding 4.5%. Virginia bonds are exempt from Virginia tax, but the North Carolina bond interest is taxable in Virginia. Tammy can deduct all state taxes paid on her Federal income tax return. In your analysis, assume that the bond amount is $100,000.If required, round your computations and answers to the nearest dollar. Determine the after tax income from each bond. Virginia Bond: $ 4, 600 North Carolina Bond: $ 4, 451 Which of the two options will provide the greater after-tax return to Tammy? Virginia bond
Solution :
Assuming that the bond amount is $100,000.
After the tax income from the Virginia bond is given by:
= 100,000 x 4.5%
= $ 4500
After the income tax from the North Carolina bond :
= (100,000 x 4.6%) x (1-5%) + (100,000 x 4.6% x 5% x 0.35)
= $ 4451
Therefore the Virginia bond will give an after tax higher return.
Abbey Park was organized on April 1, 2016, by Trudy Crawford. Trudy is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Trudy prepared the following income statement for the quarter that ended March 31, 2017.
Abbay Park
Income statement
For the quarter ended March 31,2017
Revenues 83000
Rent Revenue
Operating expenses
Advertising expense 4200
Salaries and wages expense 27600
Utilities expense 1500
Depreciation expense 800
Maintenance expense 2800
Total operating expense 36900
Net income 46100
Trudy knew that something was wrong with the statement because net income had never exceeded $20,000 in any one quarter. Knowing that you are an experienced accountant, she asks you to review the income statement and other data. You first look at the trial balance. In addition to the account balances reported in the income statement, the ledger contains these selected balances at March 31, 2017.
Supplies 4500
Prepaid insurance 7200
Notes payable 20000
You then make inquiries and discover the following.
1. Rent revenue includes advanced rentals for summer-month occupancy, $21,000.
2. There were $600 of supplies on hand at March 31.
3. Prepaid insurance resulted from the payment of a 1-year policy on January 1, 2017.
4. The mail on April 1, 2017, brought the following bills: advertising for week of March 24, $110; repairs made March 10, $1,040; and utilities $240.
5. Wage expense totals $290 per day. At March 31, 3 days’ wages have been incurred but not paid.
6. The note payable is a 3-month, 7% note dated January 1, 2017. Instructions With the class divided into groups, answer the following.
(a) Prepare a correct income statement for the quarter ended March 31, 2017.
(b) Explain to Trudy the generally accepted accounting principles that she did not follow in preparing her income statement and their effect on her results.
Answer:
Abbey Park
a) Correct Income Statement for the quarter ended March 31, 2017:
Abbey Park
Income statement
For the quarter ended March 31,2017
Revenue
Rent Revenue $62,000
Operating expenses
Advertising expense 4,310
Salaries and wages expense 28,470
Utilities expense 1,740
Depreciation expense 800
Maintenance expense 3,840
Supplies Expense 3,900
Insurance expense 1,800
Interest expense 350
Total operating expense 45,210
Net income $16,790
b) The generally accepted accounting principles that Trudy did not follow in the preparation of her income statement are the accrual concept and the matching principle. Failure to follow these principles means that the net income will be misstated. The accounts were based on the cash basis instead of the accrual basis of generally accepted accounting principles. This means that records for non-cash transactions were not recognized while some others were recognized based on their cash effects.
Explanation:
a) Income Statement for the quarter ended March 31, 2017:
Abbey Park
Income statement
For the quarter ended March 31,2017
Revenue
Rent Revenue $83,000
Operating expenses
Advertising expense 4,200
Salaries and wages expense 27,600
Utilities expense 1,500
Depreciation expense 800
Maintenance expense 2,800
Total operating expense 36,900
Net income $46,100
Adjustments:
1. Rent Revenue = $62,000 ($83,000 - 21,000)
2. Supplies Expenses $3,900 ($4,500 - 600)
Supplies balance = 600
3. Prepaid Insurance = $5,400 ($7,200 - 1,800)
Insurance expense = $1,800 ($7,200/4)
4. Advertising Expense = $4,310 ($4,200 + 110)
Maintenance Expense = $3,840 ($2,800 + 1,040)
Utilities Expense = $1,740 ($1,500 + 240)
Expenses Payable = $1,390
5. Wages Expenses = $28,470 (27,600 + ($290 * 3))
Wages payable $870
6. Interest Expense = $350 ($20,000 * 7% * 3/12)
Assume for a moment that Sue, the owner of Camp Bow Wow in Colorado, said that she was looking to provide constantly evolving and improving pet care services that no other organization offered. This would be an example of a-----------------------------strategy.
a. specialization by building customer intimacy
b. cost leadership by being operationally excellent
c. differentiation through product innovation
d. expansion and growth to enhance earnings per share by building out new operations
Answer:
c. differentiation through product innovation
Explanation:
This would be an example of a differentiation through product innovation strategy because She is constantly looking for an evolving project and at the same time no other organisation has provided this product, which is an example of differentiations with leadership . so correct option is c. differentiation through product innovationAs per the question the owners of the camp wow is looking to provide a continuously evolving and improving pet care service that has no organization.
This is an example of the product innovation and is a subsequent creation of the product or a good or service. Hence the option C is correct. That is differentiation by the innovationLearn more about the owner of Camp Bow Wow.
brainly.com/question/15593483.
Compute the 2019 Federal income tax liability and the marginal and effective tax rates in each of the following independent cases. Click here to access the 2019 tax rate schedule. If required, round the tax liability the nearest dollar. When required, round the average rates to four decimal places before converting to a percentage (i.e. .67073 would be rounded to .6707 and entered as 67.07%). a. Chandler is single and reports taxable income of $125,200.
Answer:
Tax liability = $24,222.50Marginal rate = 24%Average rate = 19.35%Explanation:
Question requires that we find the Tax liability, Marginal rate and Average rate.
Tax liability:
Chandler is in the $84,200 to $160,725 bracket.
= 14,382.50 + 24% * (125,200 - 84,200)
= 14,382.50 + 9,840
= $24,222.50
Marginal rate = 24%
Chandler's bracket is the 24% bracket.
Average rate:
= Tax/ Taxable income
= 24,222.50 / 125,200
= 19.35%
Prepare the adjusting journal entries for the following transactions.
1. Supplies for office use were purchased during the year for $620, of which $160 remained on hand (unused) at year-end.
2. Interest of $310 on a note receivable was earned at year-end, although collection of the interest is not due until the following year.
3. At year-end, salaries and wages payable of $4,200 had not been recorded or paid.
4. At year-end, one-half of a $2,600 advertising project had been completed for a client, but nothing had been billed or collected.
5. Re-deemed a gift card for $660 of services.
Answer and Explanation:
The adjusting entries are shown below:
1. Supplies expense $460 ($620 - $160)
To supplies $460
(being supplies expense is recorded)
2. Interest receivable $310
To Interest revenue $310
(Being interest revenue is recorded)
3. wages expense $4,200
To wages payable $4,200
(Being wages expense is recorded)
4. Account receivable $1,300 (50% of $2,600)
To Service revenue $1,300
(Being service revenue is recorded)
5. Unearned revenue $660
To Service revenue $660
(Being service revenue is recorded)
Recording Transactions in Journal Entries and T-Accounts
On December 1, 2018, R. Lambert formed Lambert Services, which provides career and vocational counseling services to graduating college students. The following transactions took place during December, and company accounts include the following: Cash, Accounts Receivable, Land, Accounts Payable, Notes Payable, Common Stock, Retained Earnings, Counseling Services Revenue, Rent Expense, Advertising Expense, Interest Expense, Salary Expense, and Utilities Expense.
(1) Raised $7,000 cash through common stock issuance.
(2) Paid $750 cash for December rent on its furnished office space.
(3) Received $500 invoice for December advertising expenses.
(4) Borrowed $15,000 cash from bank and signed note payable for that amount.
(5) Received $1,200 cash for counseling services rendered.
(6) Billed clients $6,800 for counseling services rendered.
(7) Paid $2,200 cash for secretary salary.
(8) Paid $370 cash for December utilities.
(9) Declared and paid a $900 cash dividend.
(10) Purchased land for $13,000 cash to use for its own facilities.
(11) Paid $100 cash to bank as December interest expense on note payable.
Required:
A. Prepare journal entries for each of the transactions 1 through 11.
B. Set up T-accounts for each of the accounts used in part a and post the journal entries to those T-accounts.
Answer:
A. Journal Entries:
1. Debit Cash $7,000
Credit Common Stock $7,000
To record the issuance of stock.
2. Debit Rent Expense $750
Credit Cash $750
To record the payment of rent expense for December.
3. Debit Advertising Expense $500
Credit Account Payable $500
To record the accrued expense.
4. Debit Cash $15,000
Credit Notes Payable $15,000
To record the borrowing of cash from bank with a note payable.
5. Debit Cash $1,200
Credit Counseling Services Revenue $1,200
To record the receipt of cash for counseling services rendered.
6. Debit Accounts Receivable $6,800
Credit Counseling Services Revenue $6,800
To record revenue for counseling services rendered.
7. Debit Salary Expense $2,200
Cash Cash $2,200
To record the payment for secretary salary.
8. Debit Utilities Expense $370
Credit Cash $370
To record the payment of utilities expense for the month.
9. Debit Dividends $900
Credit Cash $900
To record the payment of dividends.
10. Debit Land $13,000
Credit Cash $13,000
To record the purchase of land for cash.
11. Debit Interest Expense $100
Credit Cash $100
To record the payment of interest on Note Payable.
B. T-accounts:
Cash
Account Titles Debit Credit
Common stock $7,000
Rent Expense $750
Note payable 15,000
Counseling Services 1,200
Salary Expense 2,200
Utilities Expense 370
Dividends 900
Land 13,000
Interest Expense 100
Accounts Receivable
Account Titles Debit Credit
Counseling Services $6,800
Land
Account Titles Debit Credit
Cash $13,000
Accounts Payable
Account Titles Debit Credit
Advertising expense $500
Notes Payable
Account Titles Debit Credit
Cash $15,000
Common Stock
Account Titles Debit Credit
Cash $7,000
Retained Earnings
Account Titles Debit Credit
Counseling Services Revenue
Account Titles Debit Credit
Cash $1,200
Rent Expense
Account Titles Debit Credit
Cash $750
Advertising Expense
Account Titles Debit Credit
Accounts Payable $500
Interest Expense
Account Titles Debit Credit
Cash $100
Salary Expense
Account Titles Debit Credit
Cash $2,200
Utilities Expense
Account Titles Debit Credit
Cash $370
Dividends
Account Titles Debit Credit
Cash $900
Explanation:
a) Data and Calculations:
Transactions Analysis:
1. Cash $7,000 Common Stock $7,000
2. Rent Expense $750 Cash $750
3. Advertising Expense $500 Advertising Payable $500
4. Cash $15,000 Notes Payable $15,000
5. Cash $1,200 Counseling Services Revenue $1,200
6. Accounts Receivable $6,800 Counseling Services Revenue $6,800
7. Salary Expense $2,200 Cash $2,200
8. Utilities Expense $370 Cash $370
9. Dividends $900 Cash $900
10. Land $13,000 Cash $13,000
11. Interest Expense $100 Cash $100
Which of the following people owe a tax penalty for early withdrawal? Leslie is 58 years old and wants to buy a car, so she withdrew some money from her IRA Benjamin is 62 years old and withdrew money this year for retirement. Dalton is 50 years oldHe lost his job due to Cavid-19 and some money out nay
Answer: Leslie is 58 years old and wants to buy a car, so she withdrew some money from her IRA
Explanation:
Out of the options given in the question, the person who owe a tax penalty for early withdrawal is Leslie.
From the question, we are informed that "Leslie is 58 years old and wants to buy a car, so she withdrew some money from her IRA.
For someone to be able to withdraw, the person must be above 60 years as in the case of Benjamin or in a case of a situation when there's an unforeseen circumstances such as loss of job in case of Dalton
A company issued 6-year, 8% bonds with a par value of $750,000. The market rate when the bonds were issued was 7.5%. The company received $757,500 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:
Answer:
$28,406.25
Explanation:
Calculation for how much is the amount of interest expense for the first semiannual interest period Using the effective interest method
Interest expense=$757,500 x .075 x ½ year
Interest expense= $28,406.25
Therefore the amount of interest expense for the first semiannual interest period is $28,406.25
Find the EAR in each of the following cases: Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) 7% Quarterly 17 Monthly 13 Daily 10 infinite
Answer:
7.19
18.39
13,88
10.51%
Explanation:
EAR = (1 + periodic interest rate)^m - 1
m = number of compounding
a. ( 1 + 0.07/4)^4 - 1 = 7.19%
b. (1 + 0.17/12)^12 - 1 = 18.39%
c. (1 + 0.13/365)^365 - 1 = 13.88%
d. EAR =
Sue would like to save up for a down payment on a home she hopes to purchase in 5 years. If she wishes to have $20,000 saved up at the end of five years and can earn 3.5% annually in her savings account. If she would like to make equal annual deposits, what amount will her deposits need to be in order to reach her goal
Answer:
Annual deposit= $3,729.63
Explanation:
Giving the following information:
Future value (FV)= $20,000
Number of periods (n)= 5 years
Interest rate (i)= 3.5% = 0.035
To calculate the annual deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (20,000*0.035) / [(1.035^5) - 1]
A= $3,729.63
Limited Liability Companies (LLCs) are gaining in popularity over sub-chapter S corporations because:_____.
A. LLCs offer better liability protection to their members.
B. Sub-chapter S corporations are being phased out by the government which is promoting.
C. LLCs as they requires less paperwork on the part of the IRS.
D. Sub-chapter S corporations are being taxed at a higher rate by the IRS.
E. They are simpler when it comes to paperwork, offer some of the same tax advantages and also protect members from unlimited financial exposure.
Answer:
E. They are simpler when it comes to paperwork, offer some of the same tax advantages and also protect members from unlimited financial exposure
Explanation:
Limited liability companies are set up to protect the owners from liability. The business is a seperate entity from the individual owners and their assets are not used to settle debts of the business.
This type of business is gaining more use than S corporation. S corporation in addition to having liability advantages also requires more rigid requirements to set up. They do not pay corporate tax, but rather are taxed as sole proprietorship or a partnership.
Because of the ease of setting up an LLC more people prefer it to an S corporation. It also protects owners from unlimited financial liability