Answer:
a. -$210,000
b. $455,000
Explanation:
a. Company's net income
Sales. 2,275,000
Less:
Cost of goods sold
1,285,000
Administrative and selling expenses
535,000
Depreciation expense
420,000
EBIT
35,000
Less interest
245,000
Taxable income
-$210,000
Taxes 21%
Nil
Net income
-$210,000
b. The operating cash flow for the year
OCF = EBIT + depreciation - taxes
OCF = 35,000 + 420,000 - 0
OCF = $455,000
c. Net income was negative due to the deductibility of interest expense and depreciation.
The actual operating cash flow was positive due to the fact that depreciation is a non cash expense, and also interest is a financing and not an operating expense.
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)
Find more information about Journal entry here:
https://brainly.com/question/8913038
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.
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.
Wages of $8,000 are earned by workers but not paid as of December 31. Depreciation on the company’s equipment for the year is $10,480. The Office Supplies account had a $310 debit balance at the beginning of the year. During the year, $4,597 of office supplies are purchased. A physical count of supplies at December 31 shows $510 of supplies available. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $2,700 of unexpired insurance benefits remain at December 31. The company has earned (but not recorded) $650 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. The company has a bank loan and has incurred (but not recorded) interest expense of $3,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.
Required:
For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended (date of) December 31.
Answer:
a Wages expense 8, 000
Wages payable 8,000
b Dr Depreciation expense 10,840
Cr Accumulated depreciation-equipment 10,840
c Dr Supplies expense 4,397
Cr Supplies 4,367
d Dr Insurance expense 2,700
Cr Prepaid insurance 2,700
e. Dr Interest receivable 650
Cr Interest revenue 650
f. Dr Interest expense 3,000
Cr nterest payable 3,000
Explanation:
Preparation of Adjusting entry
a. Based on the information given we were told that Wages of the amount of $8,000 are earned by workers but was not paid which means that the Journal entry will be :
Dr Wages expense 8000
Cr Wages payable 8000
(To record wages payable)
b. Based on the information given we were told that Depreciation of the company’s equipment for the year was the amount of $10,480 which means that the Journal entry will be:.
Dr Depreciation expense 10,840
Cr Accumulated depreciation-equipment 10, 840
(To record Depreciation )
c. Based on the information given we were told that Office Supplies had the amount of $310 as debit balance in which During the year the amount of $4,597 of office supplies was purchased and a physical count of supplies shows the amount of $510 of supplies available which means that the Journal entry will be :
Dr Supplies expense 4,397
(310+4,597-510)
Cr Supplies 4,367
(To record supplies expense)
d. Based on the information given we were told that the insurance policies shows that the amount of $2,700 of unexpired insurance remain at December which means that the Journal entry will be :
Dr Insurance expense 2,700
Cr Prepaid insurance 2,700
(To record insurance expense)
e. Based on the information given we were told that the company has earned but did not record the amount of $650 of interest revenue which means that the Journal entry will be :
Dr Interest receivable 650
Cr Interest revenue 650
(To record interest)
f. Based on the information given we were told that the company has interest expense of the amount of $3,000 which means that the Journal entry will be :
Dr Interest expense 3,000
Cr Interest payable 3,000
(To record interest expense)
Transaction Journal Entry Debit Credit Ex. Service revenue earned and cash collected in full. 5 14 A. Collected cash from a customer for services to be provided in the future. B. Provided service to a customer on credit. C. Paid current operating expenses. D. Recorded income tax expense for the period; all of it will be paid next year. E. Paid insurance premiums for next year. F. Used supplies previously purchased. G. Provided services to customers pertaining to transaction A. H. Paid cash for income tax owed from last year. I. Received payment for transaction B above. J. Declared and paid dividends to stockholders.
Answer:
Journal Entries:
A. Debit Cash Account $
Credit Unearned Revenue $
To record cash collected from a customer for services to be provided in the future.
B. Debit Accounts Receivable $
Credit Service Revenue $
To record services provided to a customer on credit.
C. Debit Operating Expense $
Credit Cash Account $
To record the payment of current operating expenses.
D. Debit Income Tax Expense $
Credit Income Tax Payable $
To record income tax expense for the period, payable next year.
E. Debit Prepaid Insurance $
Credit Cash Account $
To record the payment for insurance premiums for the next year.
F. Debit Supplies Expense $
Credit Supplies $
To record the supplies used.
G. Debit Unearned Service Revenue $
Credit Service Revenue $
To record revenue earned.
H. Debit Income Tax Payable $
Credit Cash Account $
To record the payment of income tax payable.
I. Debit Cash Account $
Credit Accounts Receivable $
To record the receipt of payment from customer.
J. Debit Dividends $
Credit Dividends Payable $
To record the declaration of dividends.
Debit Dividends Payable $
Credit Cash Account $
To record the payment of dividends
Explanation:
The journal entries are recorded on a daily basis as the transactions occur. These entries show the accounts to be debited and credited in the general ledger.
You work in the Ethics Department for ABC Company (ABC). Your department is dedicated to advising its employees about their ethical obligations in the corporate setting. You are an internal consultant who provides advice and most importantly, recommendations for action to employees of the firm. All communications you receive in this capacity are confidential. Luke, an employee of ABC, comes to you with the following scenario and asks for your advice.
He wants to fully consider the situation. Your task is to advise and recommend a course of action based on the specified ethical lenses and facts as given. Below are the facts that Luke provides to you.
Luke has been asked to work on a project that involves developing land recently purchased by ABC to build an adult entertainment retail store. According to the plan, the land is located on the corner of the neighborhood where Owen, Luke’s brother, lives. Luke knows that as soon as the plans for the store are made public, property values for the surrounding neighborhood will decrease significantly. ABC plans to publicly announce the project one month from today. Luke is concerned about his obligations of confidentiality to his company. However, Luke is also very close to Owen, who recently told Luke that he received an offer to sell his house at an "okay" price given the current real estate market. Owen is considering selling but hasn’t made any final decision yet. He wonders if he might get a better offer a few years from now when the real estate market improves.
Required:
What is the ethical issue, why is this an issue, and what should Luke do about it?
Answer:
The ethical issue here is that you work for a company that is about to open a store that will make the price of your brother's house to plummet. Your brother has the option to sell his house right now, but if you tell him to accept the offer, you will be breaching your employment duties.
Is your duty towards your brother more or less important than the duty towards the company.
We can analyze both possible outcomes:
You do not tell your brother and he does not sell his house. After the store is announced, your brother's house will decrease in value. That means that your brother will lose a lot of money, but you complied with the obligation of confidentiality that you have with your company. The downside is that once your brother knows about it, he will hate you for ht rest of his life. And the hatred will probably not be limited to only him, most if not all of your family will be very unpleased and terribly mad at you. On the other hand, you decide that you value your brother and whole family, and you decide to tell him to accept the offer. You will have breached your confidentiality obligation towards the company, but you will have literally saved your brother's financial situation, and you will have saved any type of relationship that you have with your family. Wil the company be hurt by your decision? No, it will not make any difference to them. They are announcing the decision in just a few days, so anything that you tell your brother will not make any difference. Since your brother will try to sell his house, he will keep to information to himself, since telling other people will only ruin any possible sale.Personally, I would first try to convince my brother to sell his house because the offer is good and its the appropriate time to do it. If he gets stubborn and refuses, then I would tell him about the new store. If we have a good relationship, it is possible that I will not need to him about the store at all. Probably if i try hard enough I will be able to convince him to sell without disclosing any confidential information.
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
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.
Mary, a real estate agent, buys for herself a property that her principal, Karen, wanted to buy. If Mary is aware that Karen wanted to buy the property, then the court will
Answer: C. grant Mary the legal rights for the property.
Explanation:
Agents are not to use the knowledge that their principal paid them to acquire or that they acquired for the use of their principal for themselves.
If Mary bought a property knowing that Karen wanted to buy that property, the Court will award the title to Karen because Mary has violated her duty not to use knowledge of information intended for her principal for her own benefit.
US-Mobile manufactures and sells two products, tablet computers and smartphones, in the ratio of 5:3. Fixed costs are $100,860, and the contribution margin per composite unit is $123. What number of each type of product is sold at the break-even point
Answer:
Tablets= 512
Smartphones= 308
Explanation:
Giving the following information:
Fixed costs are $100,860, and the contribution margin per composite unit is $123.
First, we need to calculate the break-even point in units for the whole company:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 100,860 / 123
Break-even point in units= 820
Now, for each product line:
Tablets= 5/8= 0.625
Smartphones= 3/8= 0.375
Units:
Tablets=0.625*820= 512
Smartphones= 0.375*820= 308
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.
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
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
Review Questions
1. What are natural resources?
2. What are renewable energy sources?
3. What are two careers in animal sciences? What does each do?
4. What does an energy efficiency expert do?
5. What does a veterinarian do?
PLEASE HELP #life is a struggle
Answer: Natural resources are resources that exist without any actions of humankind. This includes all valued characteristics such as commercial and scientific interest and cultural value. A renewable resource is a natural resource which will replenish to replace the portion depleted by usage and consumption. the 2 animals careers in science are College/University Professor and a Dentist. Dentists remove tooth decay, fill cavities, and repair fractured teeth. Energy Efficiency Experts can help solve your home performance problems. We improve the comfort of your home by reducing your energy.
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:_________. 2021 2022 2023 Cost incurred during the year $ 2,490,000 $ 3,984,000 $ 2,008,600 Estimated costs to complete as of year-end 5,810,000 1,826,000 0 Billings during the year 2,030,000 4,444,000 3,526,000 Cash collections during the year 1,815,000 3,900,000 4,285,000 Westgate recognizes revenue over time according to percentage of completion. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs incurred).
Answer:
2021: revenue 3,000,000
gross profit 510,000
2022: revenue 4,800,000
gross profit 816,000
2023: revenue 2,200,000
gross profit 374,000
2022 journal entries:
construction in progress 3,984,000 debit
various account 3,984,000 credit
--to record cost incurred--
account receivables 4,444,000 debit
unearned revenue 4,444,000 credit
--to record billed amount
cash 3,900,000 debit
account receivables 3,900,000 credit
--to record cash collection--
unearned revenue 4,800,000 debit
construction revenue 4,800,000 credit
---to record earned revenue according to
percentage of completion method---
Explanation:
2021:
incurred 2,490,000
total cost estimated:
2,490,000 + 5,810,000 = 8,300,000
percentage: 2,490,000 / 8,300,000 = 30%
revenue 10,000,000 x 30% = 3,000,000
cost 2,490,000
gross profit 510,000
2022:
incurred 3,984,000
total cost: 2,490,000 + 3,984,000 + 1,826,000 = 8,300,000
percentage: 3,984,000 / 8,300,000 = 48%
revenue 10,000,000 x 48% = 4,800,000
cost 3,984,000
gross profit 816,000
2023:
completed:
remaining revenue: 100% - 48% - 30% = 22%
10,000,000 x 22% = 2,200,000
cost incurred 1,826,000
gross profit 374,000
Choose the option that best matches the description given.
Many businesses that struggle to find investment support for their enterprise will decide to
( expand, bootstrap, or sell off) or use their own
finances
Answer:
sell off
Explanation:
Answer:
Bootstrap
Explanation:
Got it correct on test
The Aggie Graphics Company was organized on January 1, 2017.The trial balance before adjustment at December 31, 2017 contained the following account balances:Cash $9,500 Accounts Receivable 4,000 Prepaid Insurance 1,800 Equipment 45,000 Accumulated Depreciation 4,500Accounts Payable 3,500Notes Payable 18,000Common Stock 5,000Retained Earnings 12,000Dividend 2,000 Graphic Fees Earned 52,100Consulting Fees Earned 5,000Salaries Expense 30,000 Supplies Expense 2,700 Advertising Expense 1,900 Rent Expense 1,500 Utilities Expense 1,700 $100,100 $100,100Analysis reveals the following additional data: (Assume the books are only closed at year end)(A) The $2,700 balance in Supplies Expense represents supplies purchased in January. At December 31, there was $1,200 of supplies on hand.(B) The note payable was issued on September 1. It is a 3% 6-month note.(C) The balance in Prepaid Insurance is the premium paid on a one-year policy, dated March 1, 2017.(D) Consulting Fees are credited to revenue when received. At December 31, consulting fees of $1,000 contracted for January, 2017 have yet to be performed.(E) The equipment was purchased on January 1, 2017. It has a 10-year useful life and no salvage value.The entry to record (A) above would include a debit to: (Assume the company is only making one adjusting entry to record this information)A. Supplies for $1,500B. Supplies for $1,200C. Supply Expense for $1,200D. Prepaid Supply Expense for $2,700
Answer:
B. Supplies for $1,200
Explanation:
(A) The $2,700 balance in Supplies Expense represents supplies purchased in January. At December 31, there was $1,200 of supplies on hand.
The journal entry was incorrect, supplies account should have been debited, not supplies expense account.
Supplies expense for the year = beginning balance + purchases - ending balance of supplies account = $0 + $2,700 - $1,200 = $1,500
the adjusting journal entry should be:
Dr Supplies 1,200
Cr Supplies expense 1,200
Nishi Corporation prepares financial statements for each month-end. As part of its accounting process, estimated income taxes are accrued each month for 29% of the current month’s net income. The income taxes are paid in the first month of each quarter for the amount accrued for the prior quarter. The following information is available for the fourth quarter of the year just ended. When tax computations are completed on January 20 of the following year, Nishi determines that the quarter’s Income Taxes Payable account balance should be $33,926 on December 31 of the year just ended (its unadjusted balance is $29,826).
October net income $29,000
November met Income 18,850
December met Income 33,800
1. Determine the amount of the accounting adjustment (dated as of December 31) to get the correct ending balance in the Income Taxes Payable account.
2. Prepare journal entries to record (a) the December 31 adjustment to the Income Taxes Payable account and (b) the later January 20 payment of the fourth-quarter taxes.
Answer:
1. $4,100
2a. Dr Income tax Expense $4,100
Cr Income tax payable $4,100
2b. Dr Income tax payable $33,926
Cr Cash $33,926
Explanation:
1. Calculation to Determine the amount of the accounting adjustment
Income tax payable for quarter 4 $33,926
Less: Unadjusted balance in Income tax payable account $29,826
Accounting adjustment to be done as on Dec 31 $4,100
2a. Preparation of journal entries to record December 31
Adjustment to the Income as on Dec 31
Dr Income tax Expense $4,100
Cr Income tax payable $4,100
2b. Preparation of the Journal entry to record later January 20 payment of the fourth-quarter taxes.
January 20 payment of the fourth-quarter taxes.
Dr Income tax payable $33,926
Cr Cash $33,926
Green Wave Company plans to own and operate a storage rental facility. For the first month of operations,the company has the following transactions.
1. Issue 10,000 shares of common stock in exchange for $32,000 in cash.
2. Purchase land for $19,000. A note payable is signed for the full amount.
3. Purchase storage container equipment for $8,000 cash.
4. Hire three employees for $2,000 per month.
5. Receive cash of $12,000 in rental fees for the current month.
6. Purchase office supplies for $2,000 on account.
7. Pay employees $6,000 for the first month's salaries.
Required:
a. Record each transaction. Green Wave uses the following accounts: Cash, Supplies, Land, Equipment,Common Stock, Accounts Payable, Notes Payable, Service Revenue, and Salaries Expense.
b. Post each transaction to T accounts and compute the ending balance of each account.
c. Prapare a trial balance.
A yield curve is a graphical representation of the relationship between the yields and the maturities of securities issued by a given borrower in a given currency on a given date. The mathematical relationship between these two variables, the yield and the maturity, is called the term structure of interest rates, and the graphical relationship (plotted curve) is called the yield curve.
A yield curve can exhibit a variety of shapes, and the general shapes have been given a specific name. Identify the name of the yield curve that matches the pattern described as follows:
Description of the Yield Curve Name Given to Describe the Yield Curve
1. Short-term rates are relatively low, intermediate-term rates are much higher, and long-term rates are much lower.
2. Long-term rates are greater than short-term rates.
3. The yield curve exhibits a downward-sloping curve.
4. Normal yield curve Long-term rates are equal to short-term rates.
Answer:
1. Short-term rates are relatively low, intermediate-term rates are much higher, and long-term rates are much lower. - humped yield curve
2. Long-term rates are greater than short-term rates. - normal yield curve
3. The yield curve exhibits a downward-sloping curve - an inverted yield curve
4. Long-term rates are equal to short-term rates - flat yield curve
Explanation:
If long term interest rates are greater than short-term rates, this is an upward sloping demand curve, it is a normal yield curve
If the yield curve exhibits a downward-sloping curve, the short term rates are higher than the long term rates
If the long-term rates are equal to short-term rates, interest rate remains the same in the short and long term, the yield curve is flat
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:
Louise Mazzone, Production Manager for Stick to Your Knitting Inc., has just signed a contract to supply 1,000 hats and 2,000 scarves to the local Christmas market for $15,000. Each hat requires 50 meters of yarn and each scarf requires 100 meters. She has 50,000 meters of yarn available and an Acme knitting machine which can knit a hat in 8 minutes and a scarf in 10 minutes. 160 machine hours (9,600 minutes) are available. It costs $2 to make a hat and $1.50 to make a scarf. Louise also has the option to subcontract production at a cost of $3 per hat and $2 per scarf.
Here is the formulation of the problem.
Let MH be the number of hats made.
Let MS be the number of scarves made.
Let BH be the number of hats bought.
Let BS be the number of scarves bought.
Minimize Cost: 2MH+1.5MS+3BM+2BS
subject to
50MH+100MS ≤ 50,000 (Available Yarn)
8MH+10MS ≤ 9,600 (Machine Time)
MH+BH ≥1,000 (Hats Needed)
MS+BS ≥ 2,000 (Scarves Needed)
MH,MS,BH, BS ≥ 0 (Non-negativity)
Required:
Use Solver on this LP problem to determine the minimum cost of completing the contract.
Answer:
the optimal solution was to manufacture 1,000 hats and subcontract the production of 2,000 scarves.
total cost = (1,000 x $2) + (2,000 x $2) = $2,000 + $4,000 = $6,000
Explanation:
MH be the number of hats made.
Let MS be the number of scarves made.
Let BH be the number of hats bought.
Let BS be the number of scarves bought.
Minimize Cost: 2MH + 1.5MS + 3BH +2BS
subject to
50MH+100MS ≤ 50,000 (Available Yarn) 8MH+10MS ≤ 9,600 (Machine Time) MH+BH ≥1,000 (Hats Needed) MS+BS ≥ 2,000 (Scarves Needed) MH,MS,BH, BS ≥ 0 (Non-negativity)We are given all the constraints and the cost minimizing equation, therefore, all we need to do is plug the numbers into solver (excel function);
the optimal solution was to manufacture 1,000 hats and subcontract the production of 2,000 scarves.
total cost = (1,000 x $2) + (2,000 x $2) = $2,000 + $4,000 = $6,000
Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is, $73,000 per year. A clever industrial engineer found that by spending $16,000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to $58,000 next year and $52,000 in years 2 through 5. Using an interest rate of 10% per year, determine the present worth of the savings due to the reconfiguration. (Hint: Include the reconfiguration cost.)
Answer:
$58,149
Explanation:
Calculation to determine the present worth of the savings
First step is to calculate for Present worth before
Present worth before= 73,000(P/A,10%,5)
Present worth before= 73,000(3.7908)
Present worth before= $276,728
Second step is to calculate for Present worth after
Present worth after= 16,000 + 58,000(P/F,10%,1) + 52,000(P/A,10%,4)(P/F,10%,1)
Present worth after= 16,000 + 58,000(0.9091) + 52,000(3.1699)(0.9091)
Present worth after=16,000+52,728+149,851
Present worth after= $218,579
Last step is to calculate for Present worth of savings using this formula
Present worth of savings=Present worth before-Present worth after
Let plug in the formula
Present worth of savings = 276,728–218,579
Present worth of savings= $58,149
Therefore the present worth of the savings will be $58,149
Seth repays a 30-year loan with a payment at the end of each year. Each of the first 20 payments is 1200, and each of the last 10 payments is 900. Interest on the loan is at an annual effective rate of ii, i>0i>0. The interest portion of the 11th payment is twice the interest portion of the 21st payment. Calculate the interest portion of the 21st payment.
Answer:
The interest portion of the 21st payment = 300
Explanation:
Interest component of 11th payment = Interest on the remaining loan at the end pf 10thperiod
Int(11) = 900(1 - v^20) + 300 (1 - v^10)
Int(11) = 1200 - 300v^10 - 900v^20
Interest compound of 21st payment = Interest on the remaining loan at the end of 20th period
Int(21) = 900 ( 1 - v^10)
Hence, Int(11) = 2 (Int(21)
1200 - 300v^10 - 900v^20 = 2 [900 ( 1 - v^10)]
1200 - 300v^10 - 900v^20 - 1800 + 1800v^10 = 0
-600 + 1500v^10 - 900v^20 = 0
9v20 - 15v^10 + 6 = 0
By solving above quadratic equation, we get
V^10 = 2/3
Int(21) = 900 ( 1 - V^10)
Int(21) = 900 ( 1 - 2/3)
Int(21) = 900 (1/3)
Int(21) = 300
Company's inventory records for its retail division show the following at 31:
Beginning inventory Jan.1 90 units at $8 per unit
Jan.10 purchase 320 units at $11 per unit
Jan. 22 purchase 130 units at $12 per unit
At January 31, 190 units are still on hand. What is the cost of the ending inventory at January 31 if company uses the FIFO method?
a. $1,820
b. $2,220
c. $1,520
d. $1,440
Answer:
b. $2,220
Explanation:
Calculation for cost of the ending inventory
Ending inventory cost = (130*12) + (190-130)*11
Ending inventory cost =1,560+(60*11)
Ending inventory cost =1,560+660
Ending inventory cost = $2,220
Therefore cost of the ending inventory will be $2,220
Jameson Corporation was organized on May 1. The following events occurred during the first month.
a. Received $70,000 cash from the five investors who organized Jameson Corporation. Each investor received 100 shares of $10 par value common stock.
b. Ordered store fixtures costing $15,000.
c. Borrowed $18,000 cash and signed a note due in two years.
d. Purchased $11,000 of equipment, paying $1,500 in cash and signing a six-month note for the balance.
d. Lent $2,000 to an employee who signed a note to repay the loan in three months.
f. Received and paid for the store fixtures ordered in (b).
Required:
Prepare journal entries for each transaction.
Answer:
Answer:
Date General Journal Debit Credit
a. Cash $70,000
Common stock $5,000
(5*100 shares * $10)
Additional paid - in - capital $65,000
b. No journal entry required - -
c. Cash $18,000
Notes payable (long term) $18,000
d. Equipment $11,000
Cash $1,500
Notes payable (Short term) $9,500
e. Notes receivable $2,000
Cash $2,000
f. Store fixtures $15,000
Cash $15,000
The production planner for Fine Coffees, Inc. produces two coffee blends: American (A) and British (B). Two of his resources are constrained:
Columbia beans, of which he can get at most 300 pounds (4,800 ounces) per week; and Dominican beans, of which he can get at most 200 pounds (3,200 ounces) per week.
Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of bean.
Profits for the American blend are $2.00 per pound, and profits for the British blend are $1.00 per pound.
What is the objective function?
A. $1 A + $2 B = Z
B. $12 A + $8 B = Z
C. $2 A + $1 B = Z
D. $8 A + $12 B = Z
E. $4 A + $8 B = Z
Answer:
C. $2 A + $1 B = Z
Explanation:
Profits for American Blend: 2$ per pound
Profits for British Blend: 1$ per pound
If A is the quantity of American Blend in pounds and B is the quantity of British Blend in pounds, the Total Profit Z = 2A + 1B (This has to be maximized)
You have been asked to review the December 31, 2021, balance sheet for Champion Cleaning. After completing your review, you list the following three items for discussion with your superior: An investment of $48,000 is included in current assets. Management has indicated that it has no intention of liquidating the investment in 2022. A $280,000 note payable is listed as a long-term liability, but you have determined that the note is due in 10, equal annual installments with the first installment due on March 31, 2022. Deferred revenue of $114,000 is included as a current liability even though only two-thirds will be recognized as revenue in 2022, and the other one-third in 2023.
Determine the appropriate classification of each of these items. (If no entry is required for classification, choose "No entry":)
Current Long-term
Items Amount Classification Amount Classification
1. Investment
2. Installment note
3. Deferred revenue
Answer:
1. Investment
Long term investment: $48,000Since this investment will not be liquidated in the current year, then it must be considered long term.
2. Installment note
Current portion of long term debt (under current liabilities): $28,000Long term debt: $252,000The amount that will be paid during 2022 must be included as the current portion of a long term liability.
3. Deferred revenue
Current liabilities: $76,000Long term liabilities: $38,000Any liabilities (including deferred revenue) that are due in more than one year must be reported as long term.
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
Gerald started a business using the savings from his previous job. He planned to run his business on the revenue generated from sales. However, a few months later, he found it difficult to pay his staff, rent, and other expenses. Seasonal sales and inability to secure sufficient credit from local banks made it difficult for Gerald to operate the business normally. Which of the following causes of small-business failure does this scenario best?
a. Debt factoring
b. Debt financing
c. Trade credit
d. Economies of scale
Answer: Undercapitalization
Explanation:
The cause of small-business failure that is described here is undercapitalization.
Undercapitalization is a term that is used to describe a situation whereby an organization or company has insufficient funding which are required for operational activities. Lack of enough capital by a company can hinder the growth of such company.
This can be seen in the question as we are told that this lead to the difficulty for Gerald to operate the business normally.