Answer:
e. Expense $23,000 for 2018.
Explanation:
In this given case, Iris owns and operate TV rentals outlets, the investigation expenses which are deductible for 2018 are:
= $14,000 + $9,000
= $23,000
$23,000 should be charged off as expense for 2018.
Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for $12 million. The machinery can be sold to the Romulans today for $10.8 million. Klingon's current balance sheet shows net fixed assets of $10 million, current liabilities of $830,000, long-term debt of $5 million and net working capital of $248,000. If all the current accounts were liquidated today, the company would receive $1.15 million cash. What is the book value of Klingon's equity?
a. $5,248,000.00.
b. $11,078,000.00.
c. $5,000,000.00.
d. $22,800,000.00.
e. $12,000,000.00.
Answer:
a. $5,248,000.00.
Explanation:
Calculation for the book value of Klingon's equity
Book value = $248,000 + $5,000,000
Book value = $5,248,0000
Therefore the book value of Klingon's equity will be $5,248,0000
The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during July:
Jul. 3 Charged 175 hours of professional (lawyer) time to the Obsidian Co. breech of contract suit to prepare for the trial, at a rate of $150 per hour.
10 Reimbursed travel costs to employees for depositions related to the Obsidian case, $12,500.
14 Charged 260 hours of professional time for the Obsidian trial at a rate of $185 per hour.
18 Received invoice from consultants Wadsley and Harden for $30,000 for expert testimony related to the Obsidian trial.
27 Applied office overhead at a rate of $62 per professional hour charged to the Obsidian case.
31 Paid administrative and support salaries of $28,500 for the month.
31 Used office supplies for the month, $4,000.
31 Paid professional salaries of $74,350 for the month.
31 Billed Obsidian $172,500 for successful defense of the case.
Required:
A. Provide the journal entries for each of these transactions.
B. How much office overhead is over- or underapplied?
C. Determine the gross profit on the Obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services.
Answer:
3-July
Dr Work in process 25,500
Cr Salaries payable 25,500
10-Jul
Dr Work in process 12,500
Cr Cash 12,500
14-Jul
Dr Work in process 48,100
Cr Salaries payable 48,100
18-Jul
Dr Work in process 30,000
Cr Consultant fees payable 30,000
27-Jul
Dr Work in process 26,660
Cr Office overhead 26,660
31-Jul
Dr Office overhead 28,500
Cr Cash 28,500
31-Jul
Dr office overhead 4,000
Cr Supplies 4,000
31-Jul
Dr Salaries payable 74,350
Cr Cash 74,350
31-Jul
Dr Accounts receivable 172,500
Cr Fees earned 172,500
31-Jul
Dr Cost of services 142,760
Cr Work in process 142,760
b. $5,840 Over applied
c. $35,580
Explanation:
Preparation of the journal entries for each of these transactions.
3-Jul
Dr Work in process 25,500
Cr Salaries payable 25,500
(170 hours ×150 per hour)
10-Jul
Dr Work in process 12,500
Cr Cash 12,500
14-Jul
Dr Work in process 48,100
Cr Salaries payable 48,100
(260 hours ×185 per hour)
18-Jul
Dr Work in process 30,000
Cr Consultant fees payable 30,000
27-Jul
Dr Work in process 26,660
Cr Office overhead 26,660
(170 hours +260 hours)*62
31-Jul
Dr Office overhead 28,500
Cr Cash 28,500
31-Jul
Dr office overhead 4,000
Cr Supplies 4,000
31-Jul
Dr Salaries payable 74,350
Cr Cash 74,350
31-Jul
Dr Accounts receivable 172,500
Cr Fees earned 172,500
31-Jul
Dr Cost of services 142,760
(25,500+12,500+48,100+30,000+26,660)
Cr Work in process 142,760
b. Calculation for the office overhead
Office overhead =(28,500+4,000)-26,660
Office overhead=32,500-26,660
Office overhead=$5,840 Over applied
Therefore the office overhead is $5,840 over applied w
C. Calculation to Determine the gross profit
Fees earned 172,500
Less Cost of services (136,920)
(142,760-5,840)
Gross profit $35,580
Therefore the gross profit will be $35,580
Earnings per share: Group of answer choices will increase if net income increases and the number of shares outstanding decreases. will increase if net income decreases and the number of shares outstanding increases. is defined as the addition to retained earnings divided by the number of shares outstanding. is the total amount of dividends paid per year on a per share basis. must increase at the same rate as the net income.
Answer:
will increase if net income increases and the number of shares outstanding decreases
Explanation:
Earning per share is the part of the profit of an organization that would be distributed for every share of the common stock
It would be increase when the net income would rise and the number of outstanding shares would reduced
Therefore the first option is correct
) It can be supposed that an increase in the importance of fitness and wellness in people's lives prompted Apple to include features like the built-in compass and always-on workout apps. That increased importance in fitness is part of the __________________ societal force. a not selected option a economic b not selected option b natural c selected option c cultural d not selected option d demographic e not selected option e political
Answer:
C. Cultural.
Explanation:
Culture can be defined as the general way of life of a group of people living together in a particular location or society.
Basically, culture comprises of beliefs, values, behaviors, language, dressing, cuisine, music, symbols, arts, social habits, knowledge, customs, laws pertaining to a particular group of people living together in a society.
This ultimately implies that, culture are acquired and passed from one generation to another.
A cultural trait can be defined as the smallest characteristics of human activity (actions) that is mainly acquired socially and transmitted from one generation to another through various modes of communication. Thus, these unique behavioral informations or characteristics and beliefs acquired by people socially are transmitted from one individual or group of people to another.
Basically, cultural traits play a significant role in the way of life of a group of people in that it is a unique collection of various cultural elements that are closely related such as behaviors and beliefs.
Hence, it can be supposed that an increase in the importance of fitness and wellness in people's lives prompted Apple to include features like the built-in compass and always-on workout apps. Thus, that increased importance in fitness is part of the cultural societal force because it is a unique assortment of behaviors that distinguish the people.
Lantz Company has provided the following information:
Cash sales totaled $280,000.
Credit sales totaled $488,000.
Cash collections from customers for services yet to be provided totaled $88,000.
A $24,000 loss from the sale of property and equipment occurred.
Interest income was $8,600.
Interest expense was $18,800.
Supplies expense was $350,000.
Rent expense for the store was $38,000.
Wages expense was $48,000.
Other operating expenses totaled $78,000.
Unearned revenue was $3,300.
Required:
How much was Lantz's income before income taxes?
Answer:
The answer is "$272,000"
Explanation:
[tex]\text{Operating revenues}[/tex] [tex]= \$ 280,000 + \$ 488,000 = \$ 786,000[/tex]
[tex]\text{Operating expenses}[/tex] [tex]= \$ 350,000 + \$ 38,000 + \$ 48,000 + \$ 78,000 = \$ 514,000[/tex]
[tex]\text{Operating income = Operating revenues- Operating expenses}[/tex]
[tex]= \$ 786,000 - \$ 514,000\\\\ = \$ 272,000[/tex]
Question 6 of 10
A distribution manager at a company that has customers in all 50 states
considers that storing goods in every state will make them quickly available
to all customers. What other major factor should affect the decision on the
number of warehouses?
A. Operating 50 or more warehouses will be expensive.
B. Some transportation modes serve limited locations.
C. Operating 50 or more warehouses will increase safety risks.
D. The number of warehouses will affect the length of the
distribution channel.
Answer:
a.) was right for me
Explanation:
The other major factor should affect the decision on the number of warehouses that Operating 50 or more warehouses will be expensive.
Option A is an appropriate response.
What is a warehouse?While a warehouse is technically any building that stores physical products for any reason, a distribution center is a type of warehouse that is specifically designed for fulfilling orders for the purpose of distribution to other businesses or consumers.
A warehouse is a structure used to store goods. Manufacturers, importers, exporters, wholesalers, transportation companies, customs, and others use warehouses. They are typically large plain buildings located on the outskirts of cities, towns, or villages.
Some of the Factors to considers on deciding the number of warehouses are-
Customer baseSupplier network Foreign Trade Zones (FTZs)Proximity to transportationBuilding Availability and ExpandabilityLease RatesHence, Option A is an appropriate response.
To learn more about warehouses
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School Days Centers specialize in helping students with difficulties. With locations around the country, each center consists of a manager and several tutors and counselors. The counselors and tutors have a great deal of flexibility to design programs specifically for individual students. In fact, these first-line employees are considered to be the key people in the organization, and the manager's main function is to assist these employees in matters such as scheduling and securing necessary materials. This type of arrangement suggests that School Days is an inverted organization.
a. True
b. False
Answer:
This type of arrangement suggests that School Days is an inverted organization.
a. True
Explanation:
An inverted organization gives the customer-facing employees more flexibility and power to lead the organization, with the center line managers playing a supporting role. This type of organization inverts or reverses the traditional and classical pyramid of hierarchical organizations where leadership is from the top. This implies that the counselors and tutors play more leadership roles, especially in designing suitable programs for their students instead of the organization handling the design of programs and making the front-line employees to comply.
Selected balance sheet and income statement information from Abbott Laboratories for 2018 follows ($ millions).
Net income $2,368
Net income attributable to Company shareholders 2,368
Net operating profit after tax (NOPAT) 2,940
Net nonoperating expense (NNE) 572
Average net operating assets (NOA) 48,222
Average net nonoperating obligations (NNO) 17,312
Average total equity 30,910
Average equity attributable to Company shareholders 30,711
Compute the following measures a through h.
a. Return on equity = (Net income attributable to Company shareholders/Average equity attributable to Company shareholders)
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer
%
b. RNOA = NOPAT/Average NOA
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer%
c. Nonoperating return = ROE − RNOA
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer%
d. NNEP = NNE/Average NNO
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer%
e. Spread = RNOA − NNEP
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer%
f. FLEV = Average NNO/Average total equity
Note: Round amount to two decimal places (for example, enter 6.78 for 6.77555).
Answer
g. NCI ratio = (Net income attributable to Company shareholders/Net income)/(Average equity attributable to Company shareholders/Average total equity)
Note: Round amount to two decimal places (for example, enter 6.78 for 6.77555).
Answer
h. ROE = (RNOA + (Spread × FLEV)) × NCI ratio
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer%
Answer:
a. Return on equity = 7.7%
b. RNOA = 6.1%
c. Nonoperating return = 1.6%
d. NNEP = 3.3%
e. Spread = 2.8%
f. FLEV = 56.01%
g. NCI ratio = 1.01
h. ROE = 7.7%
Explanation:
a. Return on equity = (Net income attributable to Company shareholders/Average equity attributable to Company shareholders)
Return on equity = $2,368 / $30,711 = 0.0771059229592003
To convert to percentage, we multiply by 100 as follows:
Return on equity = 0.0771059229592003 * 100 = 7.71059229592003%
Rounding percentage to one decimal place, we have:
Return on equity = 7.7%
b. RNOA = NOPAT/Average NOA
RNOA = Return on net operating assets = $2,940 / $48,222 = 0.0609680228941147
To convert to percentage, we multiply by 100 as follows:
RNOA = 0.0609680228941147 * 100 = 6.09680228941147%
Rounding percentage to one decimal place, we have:
RNOA = 6.1%
c. Nonoperating return = ROE − RNOA
Nonoperating return = Return on equity (ROE) - RNOA = 7.7% - 6.1% = 1.6%
d. NNEP = NNE/Average NNO
NNEP = Net non-operating expense percent = $572 / $17,312 = 0.0330406654343808
To convert to percentage, we multiply by 100 as follows:
NNEP = 0.0330406654343808 * 100 = 3.30406654343808%
Rounding percentage to one decimal place, we have:
NNEP = 3.3%
e. Spread = RNOA − NNEP
Spread = 6.1% - 3.3% = 2.8%
f. FLEV = Average NNO/Average total equity
FLEV = Financial leverage = $17,312 / $30,910 = 0.560077644775154
To convert to percentage, we multiply by 100 as follows:
FLEV = 0.560077644775154 * 100 = 56.0077644775154%
Rounding percentage to two decimal place, we have:
FLEV = 56.01%
g. NCI ratio = (Net income attributable to Company shareholders/Net income)/(Average equity attributable to Company shareholders/Average total equity)
NCI ratio = ($2,368 / $2,368) / ($30,711 / $30,910) = 1 / 0.993561954060175 = 1.00647976295139
Rounding the amount to two decimal places, we have:
NCI ratio = 1.01
h. ROE = (RNOA + (Spread × FLEV)) × NCI ratio
ROE = (6.1% + (2.8% * 56.01%)) * 1.01 = 0.077449628
To convert to percentage, we multiply by 100 as follows:
ROE = 0.077449628 * 100 = 7.7449628%
Rounding percentage to one decimal place, we have:
ROE = 7.7%
Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $165,591 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines:
Activity Cost Cost Driver Cost Assigned Quantity/ Quantity
Pools to Pool Amount /Amount
Consumed Consumed
by Basic by Luxury
Materials
handling Number of moves $3,666 18 moves 60 moves
Quality Number of
inspections $37,125 200 100
inspections inspections
Machine
maintenance Number of
machine hours $124,800 6,000 3,600
machine hours machine hours
Required:
1. Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line.
2. Calculate the activity rates for each cost pool in Hazelnut’s ABC system.
3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system.
4. Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system.
Answer:
Hazelnut Corp.
1. The amount of overhead assigned to each product line:
Basic = $103,500 (6,000 * $17,25)
Luxury = $62,100 (3,600 * $17.25)
2. Activity Rate based on ABC System:
Overhead Rates :
Materials handling $3,666/78 moves = $47 per move
Quality $37,125/300 inspections = $123.75 per inspection
Machine maintenance $124,800/9,600 m.hours = $13 per machine hour
3. The amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system is:
= $103,596
4. The amount of overhead that Hazelnut will assign to the luxury line if it uses an ABC system is:
= $61,995
Explanation:
a) Data and Calculations:
Total overhead = $165,591
Activity Cost Cost Driver Cost Assigned Quantity/ Quantity
Pools to Pool Amount /Amount
Consumed Consumed
by Basic by Luxury
Materials
handling Number of moves $3,666 18 moves 60 moves
Quality Number of
inspections $37,125 200 100 inspections
Machine
maintenance No. of machine
hours $124,800 6,000 3,600 m.hours
Total overhead costs $165,591
Traditional costing system with machine hours as the cost driver:
Overhead assigned to each product line:
Basic Luxury Total
Machine hours 6,000 3,600 9,600
Overhead rate = $165,591/9,600 = $17.25
Overhead assigned $103,500 $62,100
Overate rate:
Materials handling $3,666 78 moves = $47 per move
Quality $37,125 300 inspections = $123.75 per inspection
Machine maintenance $124,800 9,600 m.hours = $13 per machine hour
Assignment of costs:
Basic Luxury
Materials handling $47 * 18 = $846 $47 * 60 = $2,820
Quality $123.75 * 200 = 24,750 $123.75 * 100 = 12,375
Machine maintenance $13 * 6,000 = 78,000 $13 * 3,600 = 46,800
Total overhead assigned $103,596 $61,995
The distance between defects in an automated weaving process at Craft Mills, Inc. is exponentially distributed. On average there are 0.025 defects per foot. Use the random number 0.749 to simulate the distance between two defects. Give your answer to 3 decimal places. (Note: For this problem, the average (represented by tau) would be the average distance (in feet) between defects.)
Answer:
55.292 feets
Explanation:
Given that :
Average defect per foot, λ = 0.025
Random number generated = 0.791
Distance between two defects :
b(x) = 1 - e^-λx = random number
1 - e^-λx = 0.749
e^-λx = 0.749 - 1
λ = 0.025
e^-0.025x = - 0.251
Take the In of both sides ;
-0.025x = - ln(0.251)
0.025x = In(0.251)
x = In(0.251) / 0.025
x = 1.382302 / 0.025
x = 55.29209
x = 55.292 feets
Hence, distance between two defects is 55.292 feets
Merv Grazinski, driving his Winnebago, put it on cruise control to go make coffee. The Winnebago went off the road, turned over several times, and left Grazinski paralyzed from the waist down. He brings a product liability lawsuit against Winnebago. Which of the following is the best possible defense for Winnebago to use at trial?
a. Res ipsa loquitur
b. Contributory negligence
c. Assumption of risk
d. Proximate cause
Answer:
B). Contributory negligence
Explanation:
From the question we are informed about Merv Grazinski, who is driving his Winnebago, put it on cruise control to go make coffee. The Winnebago went off the road, turned over several times, and left Grazinski paralyzed from the waist down. He brings a product liability lawsuit against Winnebago. In this case, the best possible defense for Winnebago to use at trial Contributory negligence. Contributory negligence can be regarded as failure of plaintiff to have a tangible care for their own safety. Plantiff compensation could be reduced by Contributory negligence if confirmed that the occurrence of incident is likely as a result of their actions
Below are Company Y's financial statements:
Income Statement
Balance Sheet
Sales $7,900
Current assets $3,900
Current liabilities $2,100
Costs 5,500
Fixed assets 8,600
Long-term debt 3,700
Taxable income $2,400
Equity 6,700
Taxes (25%) 600
Total $12,500
Total $12,500
Net income $1,800
We assume that Company Y's current liabilities, assets, and costs are proportional to its sales. However, long-term debt and equity are not proportional to sales. We assume that the company's dividend payout ratio is 40 percentage and remains constant. The company's sales are projected to increase by exactly 15% in the next year. What is the external financing needed?
Answer:
Company Y
The external financial needed is:
= $1,290.
Explanation:
a) Data and Calculations:
Company Y's financial statements:
Income Statement
Sales $7,900
Costs 5,500
Taxable income $2,400
Taxes (25%) 600
Net income $1,800
Balance Sheet
Current assets $3,900
Fixed assets 8,600
Total assets $12,500
Current liabilities $2,100
Long-term debt 3,700
Equity 6,700
Total liab. & equity $12,500
Projected Income Statement:
Sales $9,085 ($7,900 * 1.15)
Costs 6,325 ($5,500 * 1.15)
Taxable income $2,760
Taxes (25%) 690
Net income $2,070
Dividends = 40% $828
Retained earnings $1,242
Projected Balance Sheet
Current assets $4,485 ($3,900 * 1.15)
Fixed assets 9,890 ($8,600 * 1.15)
Total assets $14,375
Current liabilities $2,415 ($2,100 * 1.15)
Long-term debt 4,018 ($14,375 - 2,415 - 7,942)
Equity 7,942 ($6,700 + $1,242)
Total liab. & equity $14,375
Working capital = $2,070 ($4,485 - $2,415)
Capital expenditure = $1,290 ($9,890 - 8,600)
External financing needed = Net income minus (working capital plus capital expenditure)
= $2,070 - ($2,070 + 1,290)
= $1,290
Tamar Co. manufactures a single product in two departments. All direct materials are added at the beginning of the Forming process. Conversion costs are added evenly throughout the process. During May, the Forming department started 21,600 units, and transferred 22,200 units of product to the Assembly department. Its 3,000 units of beginning work in process consisted of $19,800 of direct materials and $221,940 of conversion costs. It has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $496,800 of direct material costs and $2,165,940 of conversion costs were charged to production.
Required:
Prepare the company's process cost summary for May using the weighted-average method.
Answer:
Tamar Co.
Process Cost Summary for May, using the weighted-average method:
Process Cost Summary for May:
Materials Conversion Total
Units transferred $466,200 $2,197,800 $2,664,000
Ending WIP 50,400 190,080 240,480
Total cost $516,600 $2,387,880 $2,904,480
Explanation:
a) Data and Calculations:
Units started = 21,600
Units transferred = 22,200
Beginning work in process = 3,000 units
Cost of beginning work in process:
Direct materials $19,800
Conversion costs = $221,940
Ending work in process = 2,400 units
Degree of completion:
Materials = 100%
Conversion = 80%
Actual costs incurred:
Direct materials = $496,800
Conversion = $2,165,940
Calculation of Equivalent Units:
Materials Conversion
Units transferred out 22,200 (100%) 22,200 (100%)
Ending WIP 2,400 (100%) 1,920 (80%)
Total equivalent unit 24,600 24,120
Cost of production:
Materials Conversion Total
Beginning WIP $19,800 $221,940 $241,740
Current period 496,800 2,165,940 2,662,740
Total production cost $516,600 $2,387,880 $2,904,480
Cost per equivalent unit:
Materials Conversion Total
Total production cost $516,600 $2,387,880 $2,904,480
Total equivalent unit 24,600 24,120
Cost per equivalent unit $21 $99
Process Cost Summary for May:
Materials Conversion Total
Units transferred $466,200 $2,197,800 $2,664,000
($21 *22,200) ($99 * 22,200)
Ending WIP 50,400 190,080 240,480
($21 *2,400) ($99 * 1,920)
Total cost $516,600 $2,387,880 $2,904,480
You have researched your dream around-the-world vacation and determined that the total cost of the vacation will be $33,000. You feel you can earn an APR of 10.8 percent compounded monthly and plan to save $395 per month until you reach your goal. How many years will it be until you reach your goal and enjoy your well-deserved vacation
Answer:
Explanation:
What 22
The specification for the pull strength of a wire that connects an integrated circuit to its frame is 10 g or more. Units made with aluminum wire have a defect rate of 10%. A redesigned manufacturing process involving the use of gold wire is being investigated. The goal is to reduce the rate of defects to 5% or less. Out of the first 100 units manufactured with gold wire, only 4 are defective. True or false: Since only 4% of the 100 units were defective, we can conclude that the goal has been reached.
Answer: False
Explanation:
For the goal to be concluded as reached, the research must follow rules that will enable the proper testing of the data.
One of those is that the sample chosen must be random and the other is that the sample size must be sufficient.
The sample here is not random as it is the first 100 units and it also has an insufficient size because a sample of more than 100 will be needed to adequately test this method.
We are therefore unable to conclude that the goal has been reached, yet.
Owl Sporting Goods reported the following data at July 31, 2018, with amounts in thousands:
Pigeon Sporting Goods Company
Balance Sheet July 31, 2018
Thousands
Assets
Current assets
Cash $26,200
Accounts receivable 28,000
Inventories 40,000
Other current assets 4,700
Total current assets 98,900
Property and equipment, net 19,000
Other assets 24,100
Total assets $142,000
Liabilities Total current liabilities $52,600
Long-term liabilities 6,800
Total liabilities 59,400
Stockholders' Equity Common
stock 23,500
Retained earnings 59,100
Total stockholders' equity 82,600
Total liabilities and stockholders'
equity $142,000
1. Calculate Owl's net working capital. Net working capital.
2. Calculate Owl's current ratio.
3. Calculate Owl's debt ratio.
Answer:
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Fairhaven Composite Poles manufactures fishing poles that have a price of $125.00. It has costs of $90. A competitor is introducing a new fishing pole that will sell for $115.00. Management believes it must lower the price to $115.00 to compete in the highly cost-conscious fishing pole market. Marketing department believes that the new price will allow Fairhaven to maintain the current sales level of 200,000 poles per year.
Required:
A. What is the target cost for the new price if target operating income is 25% of sales?
B. What is the change in operating income for the year if only the selling price is changed and costs remain the same?
C. What is the target cost per unit if the selling price is reduced to $110.00 and the company wants to maintain its same income level?
Solution :
a). Statements showing computations
Particulars Amount
Target selling price 115
Target operating income at rate 25% 28.75
Target cost = 115 - 28.75 86.25
b). Statement showing computations
Particulars Existing Proposed Difference
Sales at rate 125 and 115 25000000 22000000 3000000
Cost at 90 18000000 18000000
Target operating income 7000000 4000000 3000000
c).
The current income level 7000000
No. of units 2000000
Income per unit 35
Cost per unit (115-35) 80
heres a freebe to get more points. whats ur fav disney movie and whos ur fav disney princess. why?
Answer:
fav Disney movie: coco fav Disney princess: Tiana
Explanation:
i dont know why I just like them and they dont have a lot of black princesses so yeah
Answer:
belle and beauty and the beast
Explanation:
because shes not judgmental and can be her own person
a. Performed $29,400 of services on account.
b. Collected $17,500 cash on accounts receivable.
c. Paid $4,400 cash in advance for an insurance policy.
d. Paid $570 on accounts payable.
e. Recorded the adjusting entry to recognize $3,700 of insurance expense.
f. Recorded the adjusting entry to recognize $300 accrued interest revenue.
g. Received $9,500 cash for services to be performed at a later date.
h. Purchased land for $1,560 cash.
i. Purchased supplies for $1,800 cash.
Required:
Record each of the above transactions in general journal form and then show the effect of the transaction in a horizontal statements model. The first transaction is shown as an example. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Transaction Account Titles Debit Credit
a Accounts receivable 29,400
Service revenue 29,400
Show the effect of the transaction in a horizontal statements model. The first transaction is shown as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign.)
Answer:
S/n Account Titles Debit$ Credit$
a. Accounts receivable 29400
Service revenue 29400
b. Cash 17500
Accounts receivable 17500
c. Prepaid insurance 4400
Cash 4400
d. Accounts payable 570
Cash 570
e. Insurance expense 3700
Prepaid insurance 3700
f. Interest receivable 300
Interest revenue 300
g. Cash 9500
Unearned service revenue 9500
h. Land 1560
Cash 1560
i. Supplies 1800
Cash 1800
Asset Liabilities Equity Revenue Expense Net income S.Cash Flow
a. 29400 29400 29400 29400 NA
b. 17500 OA
-17500
c. 4400 OA
-4400
d. -570 -570 OA
e. -3700 -3700 3700 -3700 NA
f. 300 300 300 300 NA
g. 9500 9500 OA
h. 1560 IA
-1560
i. 1800 OA
-1800
The following information is available for the adjusting entries. Accrued interest on the notes payable at year-end amounted to $4,000 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $3,000 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $3,800. Problem 3-9B Part 9 9. Record closing entries.
Question Completion:
Assume that Supplies were purchased during the year worth $13,000.
Record the adjusting entries.
Answer:
Adjusting Journal Entries on December 31, 2021:
Debit Interest Expense $4,000
Credit Interest payable $4,000
To record the accrued interest on the notes payable.
Debit Salaries Expense $3,000
Credit Salaries payable $3,000
To record the accrued salaries at year end.
Debit Supplies Expense $9,200
Credit Supplies $9,200
To record supplies expense for the year.
Explanation:
a) Data and Calculations:
Supplies purchased = $13,000
Supplies at year-end = 3,800
Supplies consumed = $9,200 ($13,000 - $3,800)
b) Adjusting entries are journal entries done at the end of a financial period to ensure that expenses and revenues are matched to the period they occur instead of when cash is exchanged. This accords with the accrual concept and the matching principle of accounting.
Beyond-the-Sea Corporation and Homeport Company make a deal for Homeport's products, via e-records. Under the UETA, an e-record is considered sent when it:a.is signed and encrypted, and will be sent without changes.b.is stored in the sender's back-up system.c.is composed on the sender's computer.d.leaves the sender's control.
Answer: d. leaves the sender's control.
Explanation:
Under the Uniform Electronic Transaction Act(UETA), there are three conditions that must be met for an e-record to be considered sent and the relevant one here is that the e-record leaves the control of the sender.
It does this by entering into an information processing system that the sender does not control of.
The other requirements demand that the e-record be properly addressed to a system specified by the recipient and this system must be able to process said e-record.
Brown Fashions Inc.'s December 31, 2018 balance sheet showed total common equity of $4,050,000 and 165,000 shares of stock outstanding. During 2019, the firm had $450,000 of net income, and it paid out $100,000 as dividends. What was the book value per share at 12/31/19, assuming no common stock was either issued or retired during 2019
Answer:
$26.67
Explanation:
Total Common Equity New = Total Common Equity Old + Net Income -Dividends Paid
Total Common Equity New = $4,050,000 + $450,000 - $100,000
Total Common Equity New = $4,400,000
Book value per share = Total Common Equity / Shares Outstanding
Book value per share = $4,400,000 / 165,000 shares
Book value per share = 26.66666666666667
Book value per share = $26.67
The Answer is: $26.67
When the Total Common Equity New = Total Common Equity Old + Net Income -Dividends Paid
Then Total Common Equity New is = $4,050,000 + $450,000 - $100,000Also that Total Common Equity New is = $4,400,000When the Book value per share is = Total Common Equity / Shares OutstandingAlso that Book value per share is = $4,400,000 / 165,000 sharesAfter that Book value per share is = 26.66666666666667So that Book value per share is = $26.67Learn more about:
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A consumer purchases a lawn mower from a retail store. It contains a tag that says the purchaser should read the instruction book that is included. He reads the book, which contains a warning not to use the mower over gravel or stones or grassy areas mixed with rock or stone. The consumer remembers the warning but when he sees how smoothly the mower operates and how effortlessly it goes over a few small stones mixed in the grass, he decides to continue using the mower in areas filled with loose stones and rocks. One day a rock flies up and shatters the consumers face, causing him to lose an eye and suffer a broken nose and jawbone. He sues the manufacturer for putting out a defective product unreasonably dangerous to the consumer. What defense may give the manufacturer the best chance of having the case dis-missed?
A. Lack of privity.
B. Contributory negligence.
C. Assumption of the risk.
D. Waiver of warranty.
Answer:
B. Contributory negligence
Explanation:
Contributory negligence may be defined as a defense to the tort claim that is based on the negligence of the plaintiff in some law jurisdiction. And if contributory negligence is available defense completely bars the person who files the suit from any recovery if the plaintiff contributes to their own injury and harm from any negligence.
In the context, a person buys a lawn mover form a store. The lawn mover contains a instruction book where it was written that the lawn mover should not be moved over any stones or gravels or areas mixed with grass and stones.
The consumer though remembers the warning but he moves the lawn mover over land filled with loose stones and rocks. Unfortunately, a rock flies and hits him on his face resulting in serious damage of his face. And so the consumer sues the manufacturer for selling a defective lawn mover.
But the court will dis-miss the case as it was a case of contributory negligence of the consumer as the manufacturer warned the consumer with a written instruction not to use the product over areas covered with stones and rocks. Thus the defense that will give the manufacturer the best chance of having dismissing the case by the court is the Contributory negligence of the consumer.
Worthy Ships initially issued 320,000 shares of $1 par stock for $1,600,000 in 2021. In 2023, the company repurchased 32,000 shares for $320,000. In 2024, 16,000 of the repurchased shares were resold for $256,000. In its balance sheet dated December 31, 2024, C. Worthy's treasury stock account shows a balance of: Multiple Choice $0 $320,000 $64,000 $160,000
Answer:
$160,000
Explanation:
The calculation of the treasury stock is seen below
Treasury stock account balance on December 31, 2024 balance sheet
= Number of shares in treasury stock × Cost per share
= (32,000 - 16,000) × ($320,000 ÷ 32,000)
= 16,000 × $10
= $160,000
Therefore, for computing the treasury account stock balance, we simply make use of the above.
Suppose the cost of flying a 200-seat plane for an airline is $100,000 and there are 10 empty seats on a flight. If the marginal cost of flying a passenger is $200 and a standby passenger is willing to pay $300, the airline should a. sell the ticket because the marginal benefit exceeds the average cost. b. not sell the ticket because the marginal benefit is less than the average cost. c. not sell the ticket because the marginal benefit is less than the marginal cost. d. sell the ticket because the marginal benefit exceeds the marginal cost.
Answer: d. sell the ticket because the marginal benefit exceeds the marginal cost.
Explanation:
The marginal benefits exceed the marginal costs in this scenario as the marginal benefit if $300 and the marginal cost is $200.
The company should therefore sell the ticket as they would be making a net marginal benefit of $100. Were it the other way around and the marginal cost was larger, the company should not sell because they would be making a marginal loss.
Direct materials $ 37 per unit Fixed manufacturing overhead costs $ 225,000 Sales price $ 195 per unit Variable manufacturing overhead $ 22 per unit Direct labor $ 26 per unit Fixed marketing and administrative costs $ 190,000 Units produced and sold $ 5,500 Variable marketing and administrative costs $ 8 per unit Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement.
Answer:
A.Gross Margin $385,550
B. Contribution margin $566,500
Explanation:
a. Preparation of a gross margin income statement
Gross margin income statement
Sales 1,072,500
(5500*$ 195 per unit)
Less Variable expenses:
Direct Material 198,000
(5500*36)
Direct Labour 143,000
(5500*26)
Variable manufacturing overhead 121,000
(5500*22)
Fixed Manufacturing overhead 224,950
(5500*40.90)
(225,000/5500=40.90)
Gross Margin $385,550
Therefore Gross Margin will be $385,550
b. Preparation of a contribution margin income statement.
Contribution margin income statement
Sales 1,072,500
(5500*$ 195 per unit)
Less cost of goods sold:
Direct Material 198,000
(5500*36)
Direct Labour 143,000
(5500*26)
Variable manufacturing overhead 121,000
(5500*22)
Variable Marketing and administrative cost 44,000
(5500*8)
Contribution margin $566,500
Therefore Contribution margin will be $566,500
Mutual funds that invest in mortgage-backed pass-through securities are exposed to which of the following risks and costs?
a. Credit risk
b. Liquidity risk
c. Interest rate risk
d. Capital adequacy requirements
e. Prepayment risk
Answer:
e. Prepayment risk
Explanation:
Prepayment risk is the likelihood of the firm where Special Purpose Vehicle that manages the mortgage-backed pass-through securities to repay the principal sum invested or part of it earlier than expected which then denies the investor of interest payments throughout the investment period.
When principals are repaid much earlier, the interest that could be earned on the principal is lost since the principal upon which the interest is to be computed has been repaid, hence, no more basis for the interest thereafter
Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year:
Direct materials...................................$6,000
Direct labor.........................................$20,000
Rent on factory building......................$15,000
Sales salaries.....................................$25,000
Depreciation on factory equipment......$8,000
Indirect labor.......................................$12,000
Production supervisor's salary.............$15,000
Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be:
A) $2.50 per direct labor-hour
B) $2.79 per direct labor-hour
C) $3.00 per direct labor-hour
D) $4.00 per direct labor-hour
Answer:
Predetermined manufacturing overhead rate= $2.5 per direct labor hour
Explanation:
Giving the following information:
Jameson estimates that 20,000 direct labor-hours will be worked during the year.
Rent on factory building......................$15,000
Depreciation on factory equipment......$8,000
Indirect labor.......................................$12,000
Production supervisor's salary.............$15,000
First, we need to calculate the estimated overhead costs:
estimated overhead costs= Rent on factory building + Depreciation on factory equipment + Indirect labor + Production supervisor's salary
estimated overhead costs= 15,000 + 8,000 + 12,000 + 15,000
estimated overhead costs= $50,000
Now, we can determine the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 50,000 / 20,000
Predetermined manufacturing overhead rate= $2.5 per direct labor hour
When developing baseline standards, it is vital to use industry best practices. Industry best practices standards enable one to justify choices being made to regulators. Furthermore, there is increased efficiency to be gained by modifying an existing standard as opposed to creating one from the ground up.
A. True
B. False
Answer:
A. True
Explanation:
A baseline may be defined as the minimum amount of security that a network, a device or a system must adhere to. They are generally mapped to the industry standards. It is applied to the several layers of the IT infrastructure of an organization.
When developing them, it is very important to make use of the industry best practices. It enables to justify the choices that are being made to the regulators.
Hence the answer is true.
Jaworskiâs Ski Store is completing the accounting process for its first year ended December 31, 2018. The transactions during 2018 have been journalized and posted. The following data are available to determine adjusting journal entries:
a. The unadjusted balance in Supplies was $840 at December 31, 2018. The unadjusted balance in Supplies Expense was $0 at December 31, 2018. A year-end count showed $110 of supplies on hand.
b. Wages earned by employees during December 2010, unpaid and unrecorded at December 31, 2010, amounted to $3,700. The last paychecks were issued December 28; the next payments will be made on January 6, 2011. The unadjusted balance in Wages Expense was $40,000 at December 31, 2010.
c. A portion of the store's basement is now being rented for $1100 per month to K. Frey. On November 1, 2010, the store collected six months' rent in advance from Frey in the amount of $6,600. It was credited in full to Unearned Rent Revenue
when collected. The unadjusted balance in Rent Revenue was $0 at December 31, 2010.
d. The store purchased delivery equipment at the beginning of the year. The estimated depreciation for 2010 is $3,000, although none has been recorded yet.
e. On December 31, 2010, the unadjusted balance in Prepaid Insurance was $4,800. This was the amount paid in the middle of the year for a two-year insurance policy with coverage beginning on July 1, 2010. The unadjusted balance in Insurance Expense was S800, which was the cost of insurance from January 1 to June 30, 2010.
f. Jaworski's store did some ski repair work for Frey. At the end of December 31, 2010, Frey had not paid for work completed amounting to S750. This amount has not yet been recorded as Repair Shop Revenue. Collection is expected
during January 2011.
Required:
Earlier in 2010, Jaworski's store had already provided, recorded, and collected cash for $5,000 of repair services for other customers.
a. For each of the items listed above, indicate the account names and adjusted balances that should be reported on
b. For each situation, prepare the adjusting journal entry that should be recorded for Jaworski's at December 31, 2010.
Answer:
Jaworski's Ski Store
1. Indication of the account names and the adjusted balances that should be reported on:
a. Supplies Expense $730 and Supplies $110
b. Wages Expenses $43,700 and Wages Payable $3,700
c. Unearned Rent Revenue $4,400 and Rent Revenue $2,200
d. Depreciation expense $3,000 and Accumulated Depreciation - Equipment $3,000
e. Prepaid Insurance $3,600 and Insurance Expense $2,000
f. Accounts Receivable $750 and Repair Shop Revenue $5, 750
2. Adjusting Journal Entries at December 31, 2010:
a. Debit Supplies Expense $730
Credit Supplies $730
To record supplies expense for the year.
b. Debit Wages Expenses $3,700
Credit Wages Payable $3,700
To record accrued wages expense.
c. Debit Unearned Rent Revenue $2,200
Credit Rent Revenue $2,200
To record rent revenue earned.
d. Debit Depreciation expense $3,000
Credit Accumulated Depreciation - Equipment $3,000
To record depreciation expense for the year.
e. Debit Insurance Expense $1,200
Credit Prepaid Insurance $1,200
To record insurance expense from July 1 to December 31, 2010.
f. Debit Accounts Receivable $750
Credit Repair Shop Revenue $750
To record shope repairs on account.
Explanation:
Journal entries are also used to adjust accounts to reflect the accrual concept and matching principle of accounting. They ensure that transactions are recorded in the period in which they occur instead of when cash is exchanged. Transactions recorded with adjusting journal entries include prepaid expenses, accrued expenses, unearned revenue, accrued revenue, and adjustments for depreciation expenses.