Answer:
yes true ik it is i got it wrong when i said false
Answer:
A strong economy can impact the goods and services because:
More people will work, and they will buy things for themselves & their families.
This is how a strong economy can impact goods and services.
Hope this helps!
Magnus Co. controls Anand Co. and wants to prepare consolidated financial statements. However, the controller of Magnus Co. did not study ACCY 410 course at the UIUC and does not know whether the retained earnings of Anand Co. should (or should not) be reported in the consolidated retained earnings, in the consolidated financial statements.
Research and cite a specific paragraph in the Accounting Standard Codification that can help the controller to determine whether retained earnings of the subsidiary should be reported in the consolidated retained earnings. Unless specifically requested, your response should not cite implementation guidance and illustrations.
FASB ASC - - -
Answer and Explanation:
Magnus Co should refer to FAS 160/ARB-51-9
Retained earnings are profits of the business after deduction of dividend. It is located in the equity section of the statement of financial position/balance sheet of the reporting entity
Calculated retained earnings +profit/loss for the year - dividends
A
A subsidiary must be consolidated and reported by an entity with an interest in it if it has a majority stake in the company of over 50 percent voting shares
FAS 160 has replaced ARB 51
Managerial accounting differs from financial accounting in several areas. Specify whether each of the following characteristics relates to managerial accounting or financial accounting. a. Reports are usually prepared quarterly and annually. ▼ b. Information is verified by external auditors. ▼ Financial accounting Managerial accounting c. Focus is on the past. ▼ Financial accounting Managerial accounting d. Main characteristic of information is that it must be relevant. ▼ Financial accounting Managerial accounting e. Reports tend to be prepared for the parts of the organization rather than the whole organization. ▼ Financial accounting Managerial accounting f. Primary users are internal (i.e., company managers). ▼ Financial accounting Managerial accounting g. It is governed by Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). ▼ Financial accounting Managerial accounting h. The primary characteristics of information are that it must be reliable and objective. ▼ Financial accounting Managerial accounting i. Reports are prepared as needed. ▼ Financial accounting Managerial accounting j. It is not governed by legal requirements. ▼ Financial accounting Managerial accounting k. Primary users are external (i.e., creditors, investors). ▼ Financial accounting Managerial accounting l. Focus is on the future. ▼ Financial accounting Managerial accounting m. Reporting is based mainly on the company as a whole.
Answer:
Financial accounting encompasses established policies, rules and standards of recording and reporting of financial activities to achieve established plans and verification of results by auditors to obtain true monetary position of the organization for gaining stakeholder's and external users interests.
Managerial accounting can be defined as an internal process which revolves around monetary and non-monetary affairs without outside influence of auditing standards or accounting constraints.
a. Reports are usually prepared quarterly and annually
Account Relation: Financial accounting
b. Information is verified by external auditors.
Account Relation: Financial accounting
c. Focus is on the past.
Account Relation: Financial accounting
d. Main characteristic of information is that it must be relevant.
Account Relation: Managerial accounting
e. Reports tend to be prepared for the parts of the organization rather than the whole organization.
Account Relation: Managerial accounting
f. Primary users are internal (i.e, company managers).
Account Relation: Financial accounting
i. Reports are prepared as needed.
Account Relation: Financial accounting
j. The primary characteristics of information are that it must be reliable and objective
Account Relation: Financial accounting
k. Primary users are external (i.e., creditors, investors)
Account Relation: Financial accounting
l. Focus is on the future.
Account Relation: Managerial accounting
m. Reporting is based mainly on the company as a whole.
Account Relation: Financial accounting
levon files a suit against manufacturing corporation the defendant believes that even if the plaintiff manufactoring corporation should
Answer: d. file a motion to dismiss.
Explanation:
A Motion to Dismiss can be filed by either the Plaintiff or the Defendant but is usually done by the defendant when they believe that there is no validity to the claims of the plaintiff.
In this instance, Manufacturing Corporation does not believe that it is liable for the claims made by the Plaintiff which means they are question the validity of those claims. They can therefore file a motion to dismiss the case.
Using the column headings provided below, show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name, amount, and indicating whether it is an addition (+) or subtraction (−). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders' equity.
1) The firm borrowed $4,000 from the bank; a short-term note was signed.
2) Merchandise inventory costing $1,500 was purchased; cash of $400 was paid and the balance is due in 30 days.
3) Employee wages of $2,000 were accrued at the end of the month.
4) Merchandise that cost $700 was sold for $900 in cash.
5) This month's rent of $1,400 was paid.
6) Revenues from services during month totaled $13,000. Of this amount, $4,000 was received in cash and the balance is expected to be received within 30 days.
7) During the month, supplies were purchased on account at a cost of $1,040, and debited into the Supplies (asset) account. A total of $800 of supplies were used during the month.
8) Interest of $480 has been earned on a note receivable, but has not yet been received.
Transaction/Adjustment Assets Liabilities Stockholders' Eguity Net Income
1
2
3
4
5
6
7
8
Answer:
I used an excel spreadsheet since there is not enough room here
Explanation:
The following transactions occurred during 2021 for the Beehive Honey Corporation:
Feb. 1 Borrowed $24,000 from a bank and signed a note. Principal and interest at 8% will be paid on January 31, 2022.
Apr. 1 Paid $6,000 to an insurance company for a two-year fire insurance policy.
July 17 Purchased supplies costing $4,000 on account. The company records supplies purchased in an asset account. At the year-end on December 31, 2021, supplies costing $1,850 remained on hand.
Nov. 1 A customer borrowed $9,600 and signed a note requiring the customer to pay principal and 6% interest on April 30, 2022.
Required:
1. Record each transaction in general journal form.
2. Prepare any necessary adjusting entries at the year-end on December 31, 2021. No adjusting entries were recorded during the year for any item.
Answer:
Given Below
Explanation:
Beehive Honey Corporation:
General Journal
Journal Entries
Date Particulars Debit Credit
Feb.1. Cash $ 24,000 Dr.
Notes Payable $ 24,000 Cr.
Feb. 1 Borrowed $24,000 from a bank and signed a note. Principal and interest at 8% will be paid on January 31, 2022.
Apr. 1 Prepaid Insurance 6,000 Dr.
Cash $ 6000 Cr
Apr. 1 Paid $6,000 to an insurance company for a two-year fire insurance policy.
July 17 Supplies Account $ 4000 Dr.
Accounts Payable $ 4000 Cr.
July 17 Purchased supplies costing $4,000 on account. The company records supplies purchased in an asset account.
Nov. 1 Notes Receivable $ 9,600 Dr.
Cash $ 9,600 Cr.
Nov. 1 A customer borrowed $9,600 and signed a note requiring the customer to pay principal and 6% interest on April 30, 2022.
Beehive Honey Corporation:
General Journal
Adjusting Entries December 31st
Sr. No Particulars Debit Credit
1. Interest Expense $ 1600 Dr.
Interest Payable $ 1600 Cr.
Interest accrued from Feb to December. ( $ 24000* 8% * 10/12 = $ 1600)
2. Insurance Expense $ 2250 Dr.
Prepaid Insurance 2250 Cr.
Insurance of $ 2250 expired during April to December. ( $ 3000 *9/12* = $ 2250)
3. Supplies Expense $ 2150 Dr.
Supplies Account $ 2150 Cr.
( $ 4000 - $ 1850= $ 2150)
At the year-end on December 31, 2021, supplies costing $1,850 remained on hand.
4. Interest Receivable $ 192 Dr.
Interest Income $ 192 Cr.
$9,600 * 6% * 2/6= $ 192 Accrued Interest not yet received.
Morrison Company uses a job-order costing system to assign manufacturing costs to Jobs. Its balance sheet on January 1 is as follows:Morrison Company Balance Sheet January 1 Assets Cash $42,000Raw materials $13,600 Work in process 7,450 Finished goods 18,000 39,050Prepaid expenses 2,150Property, plant, and equipment (net) 105,000Total assets $188,200Liabilities and Stockholders' Equity Accounts payable $16,900Retained earnings 171,300Total liabilities and stockholders' equity $188,200During January the company completed the following transactions:a. Purchased raw materials on account, $76,200.b. Raw materials used in production, $84,900 ($68,000 was direct materials and $16,900 was indirect materials).c. Paid $189,450 of salaries and wages in cash ($97,200 was direct labor $43,200 was indirect labor, and $49,050 was related to employees responsible for selling and administration).d. Various manufacturing overhead costs incurred (on account) to support production $46,650.e. Depreciation recorded on property, plant, and equipment, $56,000 (70% related to manufacturing equipment and 30% related to assets that support selling and administrative.f. Various selling expenses paid in cash $39,050.g. Prepaid insurance expired during the month, $1,300 (80% related to production, and 20% related to selling and administration).h. Manufacturing overhead applied to production, $140,400.i. Cost of goods manufactured, $303,800.j. Cash sales t customers, $416,840.k. Cost of goods sold (unadjusted), $300,600.l. Cash payments to creditors, $62,000.m. Underapplied or overapplied overhead|$_____Required:1. Calculate the ending balance that would be reported on the company?s balance sheet on January 31.2. What is Marrison Company?s net operating income for the month of January?
Answer:
Morrison Company
1. Ending balance in the balance sheet:
Cash $168,340
Raw materials $4,900
Work in process $9,250
Finished goods $21,200
Prepaid expenses 850
Property, plant, and equipment (net) $49,000
Total assets $253,540
Liabilities and Stockholders' Equity
Accounts payable $77,750
Retained Earnings 175,790
Total Liabilities + Equity $253,540
2. Net Operating income for the month of January is: $4,490
Explanation:
a) Data and Calculations:
Morrison Company
Balance Sheet
January 1 Assets
Cash $42,000
Raw materials $13,600
Work in process 7,450
Finished goods 18,000 39,050
Prepaid expenses 2,150
Property, plant, and equipment (net) 105,000
Total assets $188,200
Liabilities and Stockholders' Equity
Accounts payable $16,900
Retained earnings 171,300
Total liabilities and stockholders' equity $188,200
Transactions:
a. Purchased raw materials on account, $76,200.
b. Raw materials used in production, $84,900 ($68,000 was direct materials and $16,900 was indirect materials).
c. Paid $189,450 of salaries and wages in cash ($97,200 was direct labor $43,200 was indirect labor, and $49,050 was related to employees responsible for selling and administration).
d. Various manufacturing overhead costs incurred (on account) to support production $46,650.
e. Depreciation recorded on property, plant, and equipment, $56,000 (70% related to manufacturing equipment and 30% related to assets that support selling and administrative.
f. Various selling expenses paid in cash $39,050.
g. Prepaid insurance expired during the month, $1,300 (80% related to production, and 20% related to selling and administration).
h. Manufacturing overhead applied to production, $140,400.
i. Cost of goods manufactured, $303,800.
j. Cash sales to customers, $416,840.
k. Cost of goods sold (unadjusted), $300,600.
l. Cash payments to creditors, $62,000.
m. Underapplied or overapplied overhead|$__$6,590___
Cash
Account Title DR. CR.
Balance $42,000
Salaries $189,450
Selling expense 39,050
Sales $416,840
Suppliers $62,000
Bal. $168,340
Raw materials
Account Title DR. CR.
Balance. $13,600
Accounts Payable$76,200
Work in Process $84,900
Bal. $4,900
Work in process
Account Title DR. CR.
Balance 7,450
Raw Materials $68,000
Salaries $97,200
Overhead $140,400
Finished Goods $303,800
Bal. $9,250
Finished goods
Account Title DR. CR.
Balance 18,000
Work in Process $303,800
Cost of Goods Sold $300,600
Bal. $21,200
Cost of goods sold (adjusted)
Account Title DR. CR.
Finished Goods $300,600
Underapplied $6,590
Income Statement $307,190
Prepaid expenses
Account Title DR. CR.
Balance $2,150
Insurance Expense $1,300
Balance 850
Manufacturing overhead
Account Title DR. CR.
Raw materials $16,900
Salaries $43,200
Depreciation $39,200
Miscellaneous $46,650
Insurance $1,040
Work in Process $140,400
Bal. (underapplied) $6,590
Selling Expense
Account Title DR. CR.
Salaries 49,050
Others $39,050
Insurance 260
Depreciation $16,800
Income Summary $105,400
Property, plant, and equipment (net) 105,000
Depreciation for the year - $56,000
Balance = $49,000
Accounts payable
Account Title DR. CR.
Balance $16,900
Raw materials $76,200
Overhead $46,650
Cash $62,000
Balance $77,750
Income Statement and Statement of Retained Earnings:
Sales Revenue $416,840
Cost of goods sold 307,190
Gross profit $109,650
Salaries 49,050
Selling 39,050
Insurance 260
Depreciation 16,800 $105,160
Net Income $4,490
Retained earnings 171,300
Retained earnings $175,790
After visiting several automobile dealerships, Richard selects the used car he wants. He likes its $19,300 price, but financing through the dealer is no bargain. He has $3,000 cash for a down payment, so he needs an $16,300 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $16,300 for a period of four years at an add-on interest rate of 10 percent.1. What is the total interest on Richard's loan? (Do not round intermediate calculations. Round your answer to the nearest whole number.)
2. What is the total cost of the car? (Do not round intermediate calculations. Round your answer to the nearest whole number.)
3. What is the monthly payment? (Do not round intermediate calculations. Round your answer to the nearest whole number.)
4. What is the annual percentage rate (APR)? (Do not round your intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Answer:
Explanation:
Price of car = $19300
Down payment = $3000
Loan. Amount = $16300
Number of years = 4
Rate = 10%
1. What is the total interest on Richard's loan?
Simple interest = PRT/100
where p = principal = 16300
R = rate = 10%
T = Time = 4 years
Simple interest= (16300 × 10 × 4)/100
= $6520
2. What is the total cost of the car?
Total cost = Price + Interest
= 19300 + 6520
= $25820
3. What is the monthly payment?
This will be calculated as:
= (Loan amount + Interest)/Number of months
= (16300 + 6520)/4 years
= (16300 + 6520)/48
= 22820/48
= $475.41667
4. What is the annual percentage rate (APR)?
APR = (2×n×l)/P(N+1)
where,
n = number of payments period in a year.
I = Interest
P= Loan amount
N = Total number of payments
APR = (2×12×6520)/16300(48+1)
= 156480/16300(49)
= 156480/798700
= 0.1959
= 19.59%
What is the most popular method of filing in Nepal?
why?
Answer:
OK this is your ans to the ques
The most popular method of filing in Nepal is the Electronic Filing System. This is because it is faster, more convenient, and more efficient than traditional paper filing.
What is the most popular method of filing in Nepal?
The most popular method of filing in Nepal is paper-based filing.
This is because electronic filing systems are not widely used or accessible in many parts of the country, particularly in rural areas where there may not be reliable internet access or electricity.
Additionally, many people in Nepal may not have access to computers or other electronic devices, so paper-based filing is often seen as the most practical and accessible method.
However, the government of Nepal has been working to promote the use of electronic filing systems in recent years, particularly for businesses and other organizations, as part of its efforts to modernize and streamline administrative processes.
Learn more about filing in Nepal here:
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You have been asked to estimate the beta for a large South Korean company, with large holdings in steel and financial services. A regression of stock returns against the local market index yields a beta of 1.10, but the firm is 15% of the index. You have collected the average betas for global companies in each of the sectors, as well as the average debt equity ratios in each sector:
Setor Average Regression Beta Average D/E ratio
Steel 1.18 30%
Financial
Services 1.14 70%
The average tax rate for these industries is 40%.
In the most recent period, the company you are analyzing earned 70% of its operating income from steel and 30% from financial services. The firm also had a debt/equity ratio of 150%, and a tax rate of 30%. Estimate the levered beta for the company.
Answer:
The levered beta for the company is 1.93.
Explanation:
Levered beta for the company = (Weight of steel business*levered beta of steel business) + (Weight of financial services business*levered beta of financial services business)
Levered beta of steel business = Unlevered beta of steel sector*[1+(1 - firm's tax rate)*(firm's debt/equity ratio)
levered beta of financial services business = Unlevered beta of financial services sector*[1+(1 - firm's tax rate)*(firm's debt/equity ratio)
Unlevered beta of steel sector = Current beta of steel sector/[1+(1 - avg. tax rate of firms in the sector)*(Avg. debt/equity ratio of the sector)
Unlevered beta of steel sector = 1.18/[1+((1-0.4)*0.3)]
Unlevered beta of steel sector = 1.18/[1+(0.6*0.3)]
Unlevered beta of steel sector = 1.18/(1+0.18)
Unlevered beta of steel sector = 1.18/1.18
Unlevered beta of steel sector = 1
Levered beta of steel business = 1*[1+((1-0.3)*1.5)]
Levered beta of steel business = 1*[1+(0.7*1.5)]
Levered beta of steel business = 1*(1+1.05)
Levered beta of steel business = 1*2.05
Levered beta of steel business = 2.05
Unlevered beta of financial services sector = Current beta of financial services sector/[1+(1 - avg. tax rate of firms in the sector)*(Avg. debt/equity ratio of the sector)
Unlevered beta of financial services sector = 1.14/[1+((1-0.4)*0.7)]
Unlevered beta of financial services sector =1.14/[1+(0.6*0.7)]
Unlevered beta of financial services sector = 1.14/(1+0.42)
Unlevered beta of financial services sector = 1.14/1.42
Unlevered beta of financial services sector = 0.80
Levered beta of financial services business = 0.8*[1+((1-0.3)*1.5)] = 0.8*[1+(0.7*1.5)] = 0.8*(1+1.05) = 0.8*2.05 = 1.64
Levered beta for the company = (0.7*2.05) + (0.3*1.64)
Levered beta for the company = 1.44 + 0.49
Levered beta for the company = 1.93
Hence, the levered beta for the company is 1.93.
A selected list of accounts used by Cline Manufacturing Company follows: Code Code A. Cash F Accounts Payable B. Accounts Receivable G Factory Labor C. Raw Materials Inventory H Manufacturing Overhead D. Work In Process Inventory Cost of Goods Sold E. Finished Goods Inventory JSales Revenue Cline Manufacturing Company uses a job order system and maintains perpetual inventory records. Instructions Place the appropriate code letter in the columns indicating the appropriate account(s) to be debited and credited for the transactions listed below.Account(s) Account(s)Transactions Debited Credited1. Raw materials were purchased on account.2. Issued a check to Dixon Machine Shop for repair work on factory equipment.3. Direct materials were requisitioned for Job 280.4. Factory labor was paid as incurred.5. Recognized direct labor and indirect labor used.6. The production department requisitioned indirect materials for use in the factory.7. Overhead was applied to production based on a predetermined overhead rate of $8 per labor hour.8. Goods that were completed were transferred to finished goods.9. Goods costing $80,000 were sold for $105,000 on account.10. Paid for raw materials purchased previously on account
Answer:
1. Raw materials were purchased on account.
Account to be Debited: Raw Materials Inventory
Account to be Credited: Accounts Payable
2. Issued a check to Dixon Machine Shop for repair work on factory equipment.
Account to be Debited: Manufacturing Overhead
Account to be Credited: Cash
3. Direct materials were requisitioned for Job 280.
Account to be Debited: Work In Process Inventory Cost of Goods Sold
Account to be Credited: Raw Materials Inventory
4. Factory labor was paid as incurred.
Account to be Debited: Factory Labor
Account to be Credited: Accounts Payable
5. Recognized direct labor and indirect labor used.
Account to be Debited: Work In Process Inventory Cost of Goods Sold, Manufacturing Overhead
Account to be Credited: Accounts Payable
6. The production department requisitioned indirect materials for use in the factory.
Account to be Debited: Manufacturing Overhead
Account to be Credited: Raw Materials Inventory
7. Overhead was applied to production based on a predetermined overhead rate of $8 per labor hour.
Account to be Debited: Work In Process Inventory Cost of Goods Sold
Account to be Credited: Manufacturing Overhead
8. Goods that were completed were transferred to finished goods.
Account to be Debited: Finished Goods Inventory
Account to be Credited: Work In Process Inventory Cost of Goods Sold
9. Goods costing $80,000 were sold for $105,000 on account.
Account to be Debited: Cost of Goods Sold
Account to be Credited: Finished Goods Inventory
10. Paid for raw materials purchased previously on account
Account to be Debited: Accounts Payable
Account to be Credited: Cash
Emily Lim owns and runs an ice cream parlor in San Diego. Last year, she had sales of $490,000 and an average tax rate of 32%. She spent $49,000 on ingredients, $24,500 on utilities, and $88,200 to rent the premises. Emily has a few employees and paid them $98,000 in wages in total. She also paid herself a salary of $73,500 and spent $49,000 to pay for employee benefits. A few years ago, Emily borrowed money to buy the ice making equipment. Last year, she paid $24,500 in interest on that loan. Depreciation for the equipment was $14,700.
Required:
a. What was operating income (EBIT) for the year?
b. What was net income for the year?
Answer:
1). EBIT = Sales - Expenses - Depreciation
= $490,000 -($49,000 - $24,500 - $73,500 - $98,000 - $73,500 - $49,000) - $14,700
= $490,000 - $367,500 - $14,700
= $107,800
2. Net Income = [EBIT - Interest] x [1 - t]
= ($107,800 - $24,500) *(1 - 32%)
= $83,300 * 0.68
= $56,644
Key figures for the recent two years of both Apple and Google follow. Apple Google $ millions Current Year Prior Year Current Year Prior Year Net income $ 48,351 $ 45,687 $ 12,662 $ 19,478 Net sales 229,234 215,639 110,855 90,272 Current assets 128,645 106,869 124,308 105,408 Current liabilities 100,814 79,006 24,183 16,756 Required: 1. Compute profit margins for (a) Apple and (b) Google for the two years of data reported above. 2. In the current year, which company is more successful on the basis of profit margin? 3. Compute current ratios for (a) Apple and (b) Google for the two years reported above. 4. In the current year, which company has the better ability to pay short-term obligations according to the current ratio?
Answer:
Please see solution below
Explanation:
1. Profit margins :
= Net income / sales
Current year.
• Apple
= (48,351/229,234) × 100
= 21.1%
= (12,662/110,855) ×100
= 11.4%
Prior year
• Apple
= (45,687/215,639) × 100
= 21.2%
= (19,478/90,272) × 100
= 21.6%
2. Apple is more successful . This is because the profit margin of Apple is higher than the profit margin of Google in the current year.
3. Current ratio
=Current asset / Current liabilities
Current year
• Apple
= 128,645/100,814
= 1.28 times
= 124,308/24,183
= 5.14 times
Prior year
• Apple
= 106,869/79,006
= 1.35 times
= 105,408/16,756
= 6.29 times
4. Google, because it has the highest current ratio, compared to Apple, in the current year.
The 2021 balance sheet for Hallbrook Industries, Inc., is shown below.
HALLBROOK INDUSTRIES, INC.
Balance Sheet December 31, 2021 ($ in thousands)
Assets
Cash $ 330
Short-term investments 280
Accounts receivable 330
Inventory 360
Property, plant, and equipment (net) 2,300
Total assets $ 3,600
Liabilities and Shareholders’ Equity
Current liabilities $ 530
Long-term liabilities 480
Paid-in capital 1,400
Retained earnings 1,190
Total liabilities and shareholders’ equity $ 3,600
The company’s 2021 income statement reported the following amounts ($ in thousands):
Net sales $ 5,900
Interest expense 50
Income tax expense 120
Net income 290
Required:
1. Calculate the current ratio. (Round your answer to 2 decimal places.)
2. Calculate the acid-test ratio. (Round your answer to 3 decimal places.)
3. Calculate the debt to equity ratio. (Round your answer to 2 decimal places.)
4. Calculate the times interest earned ratio. (Round your answer to 1 decimal place.)
Answer:
HALLBROOK INDUSTRIES, INC.
1. Current Ratio = Current assets/Current liabilities
= $1,300/530
= 2.45
2. Acid-test ratio = (Current assets - Inventory)/Current liabilities
= $940/530
= 1.77
3. Debt to Equity ratio = Total Liabilities/Equity
= $1,010/$2,590 * 100
= 0.39
4. Times Interest Earned = EBIT/Interest Expense
= $460/$50
= 9.2 times
Explanation:
a) Data and Calculations:
HALLBROOK INDUSTRIES, INC.
Balance Sheet December 31, 2021 ($ in thousands)
Assets
Cash $ 330
Short-term investments 280
Accounts receivable 330
Inventory 360
Total current assets $1,300
Property, plant, & equipment (net) 2,300
Total assets $ 3,600
Liabilities and Shareholders’ Equity
Current liabilities $ 530
Long-term liabilities 480
Total liabilities $1,010
Equity
Paid-in capital 1,400
Retained earnings 1,190
Total Equity $2,590
Total liabilities and
shareholders’ equity $ 3,600
2021 Income Statement reported the following amounts ($ in thousands):
Net sales $ 5,900
Interest expense 50
Income tax expense 120
Net income 290
EBIT = $460
Hart, Attorney at Law, experienced the following transactions in 2016, the first year of operations: 1.Accepted $36,000 on April 1, 2016, as a retainer for services to be performed evenly over the next 12 months. 2. Performed legal services for cash of $54,000. 3. Purchased $2,800 of office supplies on account. 4. Paid $2,400 of the amount due on accounts payable. 5. Paid a cash dividend to the stockholders of $5,000. 6. Paid cash for operating expenses of $31,000. 7. Determined that at the end of the accounting period $200 of office supplies remained on hand. 8. On December 31, 2016, recognized the revenue that had been earned for services performed in accordance with Transaction 1. Required Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event has been recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign.)
Answer:
Find attached the effects of the events on the financial statements using a horizontal statements model.
No. 7 is -$2,600 because only $200 remains from the Material purchase in No. 2.
No. 8. April to December is 9 months so 9 months of the service revenue would have been earned = 9/12 * 36,000 = $27,000.
Presented below is selected data related to Mike Corporation at December 31, 2020. Mike reports financial information monthly.
Service Revenue $36,000 Utilities Expense $4,000
Cash 8,000 Accounts Receivable 9,000
Equipment 10,000 Salaries and Wages Expense 7,000
Rent Expense 11,000 Notes Payable 16,500
Accounts payable 2,000 Dividends 5,000
Required:
a. Determine the total assets of the firm.
b. Determine the net income of the firm.
Answer:
a. Total assets of the firm:
Cash $8,000
Equipments $10,000
Accounts Receivable $9,000
Total Assets $27,000
b. Net income of the firm
Service Revenue $36,000
Less: Rent Expenses $11,000
Less: Utilities Expense $4,000
Less: Salaries and Wages Expense $7,000
Net Income $14,000
Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools:
Activity Cost Pool Estimated Overhead Cost Expected Activity
Labor-related $16,800 2,000 direct labor-hours
Machine-related $16,000 8,000 machine-hours
Machine setups $30,400 800 setups
Production orders $6,600 200 orders
Product testing $12,000 500 tests
Packaging $51,000 3,400 packages
General factory $55,600 2,000 direct labor-hours
1. Compute the activity rate for each activity cost pool.
2. Compute the company's pre-determined overhead rate, assuming that the company uses a single plantwide pre-determined overhead rate based on direct labor-hours.
Answer:
Results are below.
Explanation:
To calculate the activity rate for each activity cost pool, we need to use the following formula on each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Labor-related= 16,800/2,000= $8.4 per direct labor hour
Machine-related= 16,000/8,000= $2 per machine-hour
Machine setups= 30,400/800= $38 per setup
Production orders= 6,600/200= $33 per order
Product testing= 12,000/500= $24 per test
Packaging= 51,000/3,400= $15 per package
General factory= 55,600/2,000= $27.8 per direct labor-hour
Now, the plantwide predetermined factory overhead:
Total overhead= $188,400
Total direct labor hours= 2,000
Predetermined manufacturing overhead rate= 188,400/2,000
Predetermined manufacturing overhead rate= $94.2 per direct labor hour
Last year, XYZ Corporation incurred the following expenditures in the development of a new plant process:
Salaries $250,000
Materials 90,000
Utilities 20,000
Quality control testing costs 40,000
Management study costs 5,000
Depreciation of equipment 18,000
During the current year, benefits from the project began being realized in May. If XYZ Corporation elects a 60 month deferral and amortization period, determine the amount of the deduction for the current year.
Answer:
$50,400
Explanation:
Amount
Salary $250,000
Materials $90,000
Utilities $20,000
Depreciation $18,000
Research and experimental costs $378,000
Current deduction = $378,000/60 * 8(May-December)
Current deduction = $50,400
Equity Method Investment with Basis Differences Several Years LaterSaxton Corporation purchased 25 percent of Taylor Company's voting stock on January 1, 2013, for $3 million in cash. At the date of acquisition, Taylor reported its total assets at $60 million and its total liabilities at $56 million. Investigation revealed that Taylor's plant and equipment (15-year life) was overvalued by $1.8 million and it had an unreported customer database (2-year life) valued at $500,000. Taylor declares and pays $100,000 in dividends and reports net income of $250,000 in 2016.RequiredPrepare the necessary journal entries on Saxton's books to report the above information for 2016 assuming Saxton uses the equity method to report its investment.Enter answers in thousands. For example, $1 million is $1,000 and $100,000 is $100.Calculation of 2016 Equity in Taylor's Net Income:Saxton's share of Taylor's reported income $Answer+/- Revaluation adjustments AnswerEquity in net income of Taylor $Answer General JournalDate Description Debit Credit1/1/16 AnswerCashInvestment in TaylorEquity in net income of Taylor Answer Answer AnswerCashInvestment in TaylorEquity in net income of Taylor Answer Answer12/31/16 AnswerCashInvestment in TaylorEquity in net income of Taylor Answer Answer AnswerCashInvestment in TaylorEquity in net income of Taylor Answer Answer
Answer:
Calculation of Saxton's equity in Taylor's net Income
Saxton's share of Taylor reported Income $62,500
($250,000 * 25%)
Less: Revaluation adjustment $30,000
($1,800,000/15)*25%
Equity in net income of Taylor $32,500
Saxton's equity in Taylor's net income is $32,500
Preparation of the required Journal entries
Account Titles and Explanation Debit Credit
Cash ($100,000*25%) $25,000
Investment in Taylor $25,000
(To record receipt of dividends)
Investment in Taylor $32,500
Equity in Net Income of Taylor $32,500
(To record earnings of the investee)
Which of the following corectly illustrates how prices serve as signals to consumers
Answer:
Most word-processing programs allow the user to select a command from the menu to insert a graphic. Clicks in the document where you want your file, choose insert and picture click from file select the image the press open and you picture will become inserted in to the document.
Hope this helps!!! Brainlist???
An individual has total assets of 120,000 and total liabilities of 80,000. what is his net worth?
Answer:
40,000
Explanation:
Net worth is the value of a person or a firm's assets minus the liabilities. It is the net value of all the assets owned by an individual or organization. Calculation of net worth is by deducting liabilities from assets,
i.e., Asset - liabilities.
For this individual, net worth will be
=120,000 - 80,000
=40,000
A(n) _____ is the maximum price for a good allowed by law.
Please choose the correct answer from the following choices, and then select the submit answer button.
Answer choices
equilibrium price
price floor
price ceiling
fair price
Answer:
an price ceiling
atau equilibrium price
I'm sorry ya kalo jawaban nya salah
Junker’s Stash started the Year 2 accounting period with the balances given in the following horizontal financial statements model. During Year 2, Junker’s Stash experienced the following business events:_______. 1. Paid cash to purchase $70,000 of merchandise inventory. 2. The goods that were purchased in Event 1 were delivered FOB destination. Transportation costs of $1,400 were paid in cash by the responsible party. 3a. Sold merchandise for $72,000 under terms 1/10, n/30. 3b. Recognized $41,900 of cost of goods sold. 4a. Junker’s Stash customers returned merchandise that was sold for $2,100. 4b. The merchandise returned in Event 4a had cost Junker’s Stash $1,250. 5. The merchandise in Event 3a was sold to customers FOB destination. Transportation costs of $1,650 were paid in cash by the responsible party. 6a. The customers paid for the merchandise sold in Event 3a within the discount period. Recognized the sales discount. 6b. Collected the balance in the accounts receivable account. 7. Paid cash of $6,850 for selling and administrative expenses. 8. Sold the land for $9,100 cash.Required:
Record the above transactions in a financial statements model like the one shown below:
Event Number Cash + Accounts Receivable + Inventory + Land = Common Stock + Retained Earnings Rev./ Gain - Expense = Net income Cash Flow
Balance 80,000.00 0 15,000.00 11,000.00 70,000.00 36,000.00 N/A N/A N/A N/A
Determine the amount of net sales.
Prepare a multistep income statement. Include common size percentages on the income statement.
Junker’s Stash return on sales ratio in 2015 was 12 percent. Based on the common size data in the income statement, did Junker’s Stash expenses increase or decrease in 2016?
Explain why the term loss is used to describe the results due to the sale of land.
Answer:
I used an excel spreadsheet for the financial statements model since there is not enough room here.
Junker's Stash
Income Statement
For the year ended December 31, year 2
Sales $72,000 100%
Sales returns ($2,100) 2.92%
Sales discounts ($699) 0.97%
Net sales $69,201 96.11%
Cost of goods sold ($40,650) 56.46%
Gross profit $28,551 39.65%
Operating expenses:
Delivery Costs ($1,650) 2.29%Other S&A expenses ($6,850) 9.51%Operating income $20,051 27.85%
Other revenue and expenses:
Loss from sale of land ($1,900) 2.64%
Net income before taxes $18,151 25.21%
Current return on sales ratio = operating income / net revenue = $20,051 / $69,201 = 28.98%
The land's basis was $11,000 and the selling price was $9,100:
gain/loss form sale = selling price - basis = $9,100 - $11,000 = ($1,900)
you sold the land for less than its book value
Sportly, Inc. completed Job No. B14 during 2012. The job cost sheet listed the following:Direct materials $55,000Direct labor $30,000Manufacturing overhead applied $20,000Units produced 3,000 unitsUnits sold 1,800 unitsHow much is the cost of the finished goods on hand from this job? a.$51,000 b.$105,000 c.$42,000 d.$63,000
Answer:
Ending inventory= $42,000
Explanation:
Giving the following information:
Direct materials $55,000
Direct labor $30,000
Manufacturing overhead applied $20,000
Units produced 3,000 units
Units sold 1,800 units
First, we need to calculate the total cost:
Total cost= 55,000 + 30,000 + 20,000= $105,000
Now, the unitary cost:
Unitary cost= 105,000/3,000= $35
Finally, the ending inventory:
Ending inventory= 1,200*35= $42,000
Safety training in the workplace should be focused on _______.
Answer:
prevention of accidents
On December 1, Bruney Company introduces a new product that includes a one-year warranty on parts. In December, 1,000 units are sold. Management believes that 5% of the units will be defective and that the average warranty costs will be $90 per unit.
Required:
Prepare the adjusting entry at December 31 to accrue the estimated warranty cost, assuming no warranty claims have been honored to date.
Answer:
Dr Warranty Expense 4,500
Cr Warranty liability 4,500
Explanation:
Preparation of the journal entry at December 31
Based on the information given we were told that the company new product 1,000 units were sold in December in which the Management of the company think that 5% of the units sold will be damaged and that the warranty costs will be the amount of $90 per unit which means that the adjusting journal entry at December 31 in order to accrue the estimated warranty cost will be recorded as:
Dr Warranty Expense 4,500
(1,000x 90x 5%)
Cr Warranty liability 4,500
[The following information applies to the questions displayed below.]Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.30 26,000 units Posts 0.50 70,000 units Additional information about the company follows: Rims require $15 in direct materials per unit, and Posts require $11. The direct labor wage rate is $15 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool Activity Measure Estimated Overhead Cost Rims Posts Total Machine setups Number of setups $ 32,900 60 140 200 Special processing Machine-hours $ 114,800 4,000 0 4,000 General factory Direct labor-hours $ 1,404,000 6,000 72,000 78,000Required:1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
Answer:
1) activity rate per:
machine setup = $164.50 per setupspecial processing = $28.70 per machine hourgeneral factory = $18 per direct labor hour2) unit cost per product
total cost per rim = $28.45total cost per post = $37.34Explanation:
Direct Labor-Hours per unit Annual Production Total
Rims 0.30 26,000 units 7,800
Posts 0.50 70,000 units 35,000
Rims require $15 in direct materials per unit, and Posts require $11.
The direct labor wage rate is $15 per hour.
The ABC system has the following activity cost pools:
Estimated Activity
Activity Activity Estimated Rims Posts Total
cost pool measure OH cost
Machine setups # of setups $32,900 60 140 200
Special processing machine H $114,800 4,000 0 4,000
General factory direct LH $1,404,000 6,000 72,000 78,000
activity rate per:
machine setup = $32,900 / 200 = $164.50 per setup
special processing = $114,800 / 4,000 = $28.70 per machine hour
general factory = $1,404,000 / 78,000 = $18 per direct labor hour
total machine setup costs assigned to rims = $9,870 / 26,000 units = $0.38 per unit
total special processing costs assigned to rims = $114,800 / 26,000 units = $4.42 per unit
total general factory costs assigned to rims = $108,000 / 26,000 units = $4.15 per unit
direct labor cost per unit = 0.3 x $15 = $4.50
direct materials = $15
total cost per rim = $28.45
total machine setup costs assigned to posts = $23,030 / 70,000 units = $0.33 per unit
total special processing costs assigned to posts = $0 / 70,000 units = $0 per unit
total general factory costs assigned to posts = $1,296,000 / 70,000 units = $18.51 per unit
direct labor cost per unit = 0.5 x $15 = $7.50
direct materials = $11
total cost per post = $37.34
We are evaluating a project that costs $864,000, has an eight-year life, and has no salvage value. Assume that de-preciation is straight-line to zero over the life of the project. Sales are projected at 71,000 units per year. Price per unit is $49, variable cost per unit is $33, and fixed costs are $765,000 per year. The tax rate is 35 percent, and we require a return of 10 percent on this project.
Required:
a. Calculate the accounting break-even point. What is the degree of operating leverage at the accounting break-even point?
b. Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure? Explain what your answer tells you about a 500-unit decrease in projected sales.
c. What is the sensitivity of OCF to changes in the variable cost figure? Explain what your answer tells you about a $1 decrease in estimated variable costs.
Answer:
Depreciation = $864,000/8 = $108,000 per year
a. Accounting breakeven =
= ($765,000 + 108,000)/($49 - $33)
= 54,563 units
b&c. OCF base= [(P – v)Q – FC](1 – tc) + tc D
OCF base= [($49 – 33)(71,000) – $765,000](0.65) + 0.35($108,000)
OCF base=[$1,136,000-$765,000]0.65 +$37,800
OCF base= [$371,000] 0.65 +$37,800
OCF base=$241,150+$37,800
OCF base=$278,950
Calculating the NPV using our base-case projections. Also, no salvage value, hence the NPV=
NPV(base) = –$864,000+ $278,950 (PVIFA10%,8)
NPV(base) = -864,000+$278,950 x 5.335
NPV(base) = -864,000+ 1,488,178
NPV(base) = $624,178
We will use sales of 72,000 units in calculating the sensitivity of the NPV
OCF new = [($37 - 21)(72,000) - $765,000](0.65) + 0.35(108,000)
OCF new = [ $1,152,000-$765,000]0.65+0.35 (108,000)
OCF new = [387,000] 0.65 + $37,800
OCF new = $251,550+37,800
OCF new = $289,350
NPVnew= –$864,000 + $289,350(PVIFA15%,8)
NPVnew=-$864,000+$289,350 x 5.335
NPVnew=- $679,661
So, the change in NPV for every unit change in sales is:
DNPV/DS = ($624,178 – 679,661)/(71,000 – 72,000)
NPV/DS = +$55.48
If sales were to drop by 500 units, then NPV would drop by:
NPV drop = $55.48(500)
NPV drop = $27,742.
Larned Corporation recorded the following transactions for the just completed month.
a. $80,000 in raw materials were purchased on account.
b. $71,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials.
c. Total labor wages of $112,000 were paid in cash. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor.
d. Depreciation of $175,000 was incurred on factory equipment.
Required:
Record the above transactions in journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. $80,000 in raw materials were purchased on account.
2. $71,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $112,000 were paid in cash. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor.
4. Depreciation of $175,000 was incurred on factory equipment $80,000 in raw materials were purchaased on account.
Answer:
1. Dr Raw materials $80,000
Cr Account payable $80,000
2. Dr Work-in-Process $62,000
Dr Manufacturing overhead $9,000
Cr Raw materials $71,000
3. Dr Work-in-Process $101,000
Dr Manufacturing overhead $11,000
Cr Cash $112,000
4. Dr Manufacturing overhead $175,000
Cr Accumulated depreciation $175,000
Explanation:
Preparation of Journal entries
1. Based on the information given we were told that the amount of$80,000 in raw materials were been purchased on account which means that the Journal entry will be :
Dr Raw materials $80,000
Cr Account payable $80,000
(Raw materials purchased on account)
2. Based on the information given we were told that the amount of $71,000 in raw materials were been used in production in which the amount of $62,000 was for used for direct materials while the remaining was for indirect materials which means that the Journal entry will be:
Dr Work-in-Process $62,000
Dr Manufacturing overhead $9,000
(71,000-62,000)
Cr Raw materials $71,000
(raw material charged to production)
3. Based on the information given we were told that the Total labor wages amount of $112,000 were been paid in cash in which the amount of $101,000 was for direct labor while the remaining was for indirect labor which means that the Journal entry will be :
Dr Work-in-Process $101,000
Dr Manufacturing overhead $11,000
(112,000-101,000)
Cr Cash $112,000
(Wages charged to production)
4. Based on the information given we were told that the Depreciation of the amount of $175,000 was incurred on factory equipment which means that the Journal entry will be :
Dr Manufacturing overhead $175,000
Cr Accumulated depreciation $175,000
(Depreciation charged)
Greater indirect costs are associated with:
a. Specialized engineering drawings
b. Quality specifications and testing
c. Inventoried materials and material control systems
d. All of these answers are correct.
Answer:
d. All of these answers are correct.
Explanation:
Indirect cost are cost that are not directly associated to the cost of a particular project. It could be overhead cost or subsidiary cost.example of indirect cost are; personel cost, rent, utilities cost and so on.
It should be noted that Greater indirect costs are associated with Quality specifications and testing,Inventoried materials and material control systems as well as Specialized engineering drawings.
How much would a worker have to be paid per hour in 2016 to keep her real wage the same as in 1980 if she earned $10 per hour in 1980
Answer:
In order to calculate this question we need the CPI for both 1980 and 2016. I looked for them on the internet and found that the CPI for 1980 was 82.4 and the CPI for 2016 is 240.
This means that in real dollars (dollars adjusted to inflation), $10 back in 1980 were $10/0.824 = $12.1359
In order to convert 1980 real dollars to nominal dollars in 2016, we have to multiply $12.1359 x 2.4 = $29.1262 ≈ $29.13.
This means that $10 back in 1980 could purchase the same amount of goods or services that $29.13 dollars purchased in 2016.