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
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.
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
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
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)
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
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.
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
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
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
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.
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.
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)
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
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.
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