Answer:
Mijka Company
a. Journal Entries
Debit Cash $30,400
Credit Service Revenue $30,400
To record the proceeds for services provided.
Debit Expenses $13,800
Credit Cash $13,800
To record the payment of cash for services.
Debit Dividend $2,100
Credit Cash $2,100
To record the payment of cash dividend.
b. Income Statement for the year ended December 31, 2018:
Service Revenue $30,400
Expenses 13,800
Net Income $16,600
Dividends (2,100)
Retained earnings $14,500
Statement of Changes in Stockholders' Equity as of December 31, 2018:
Retained Earnings $14,500
Balance Sheet as of December 31, 2018:
Assets:
Cash $14,500
Equity:
Retained Earnings $14,500
Explanation:
a) Data and Calculations:
Cash revenue $30,400
Cash expense (13,800)
Cash dividend (2,100)
Cash balance $14,500
Peeples, Inc., has a book value of equity of $13,500. Long-term debt is $7,700. Net working capital, other than cash, is $1,990. Fixed assets are $18,450 and current liabilities are $1,670.
A) How much cash does the company have? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
B)What is the value of the current assets? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Answer:
hope you like my answer
Explanation:
The following summarized Cash T-account reflects the total debits and total credits to the Cash account of Thomas Corporation for calendar year 2015.
Cash
Balance, Dec. 31, 2014 $212,900
Receipts from customers 9,367,600 Payments for inventory $2,482,414
Receipts from dividends 3,278,660 Payments for wages 861,819
Receipts from land sale 3,466,012 Payments for rent 496,483
Receipts from machinery sale 1,105,377 Payments for interest 337,234
Receipts from issuing stock 2,407,473 Payments for taxes 702,570
Receipts from borrowing 4,056,171 Payments for machinery 3,494,115
Payments for long-term investments3,531,585
Payments for note payable 599,526
Payments for dividends 777,511
Payments for treasury stock 337,234
Balance, Dec. 31, 2015 $
Required:
Use this information to prepare a complete statement of cash flows for year 2015. The cash provided or used by operating activities should be reported using the direct method.
Answer:
Thomas Corporation
Statement of Cash Flows for the year ended December 31, 2015:
Operating Activities:
Receipts from customers $9,367,600
Receipts from dividends 3,278,660
Payments for inventory (2,482,414)
Payments for wages (861,819)
Payments for rent (496,483)
Payments for interest (337,234)
Payments for taxes (702,570)
Net cash from operations $7,765,740
Investing Activities:
Receipts from land sale $3,466,012
Receipts from machinery sale 1,105,377
Payments for machinery (3,494,115)
Payments for long-term investments (3,531,585)
Net cash from investments ($2,454,311)
Financing Activities:
Receipts from issuing stock $2,407,473
Receipts from borrowing 4,056,171
Payments for note payable (599,526)
Payments for dividends (777,511)
Payments for treasury stock (337,234)
Net cash from financing $4,749,373
Net cash flows $10,060,802
Explanation:
a) Data and Calculations:
Cash
Balance, Dec. 31, 2014 $212,900
Receipts from customers $9,367,600
Receipts from dividends 3,278,660
Receipts from land sale 3,466,012
Receipts from machinery sale 1,105,377
Receipts from issuing stock 2,407,473
Receipts from borrowing 4,056,171
Total receipts $23,681,293
Payments for inventory $2,482,414
Payments for wages 861,819
Payments for rent 496,483
Payments for interest 337,234
Payments for taxes 702,570
Payments for machinery 3,494,115
Payments for long-term investments 3,531,585
Payments for note payable 599,526
Payments for dividends 777,511
Payments for treasury stock 337,234
Total payment $13,620,491
Balance, Dec. 31, 2015 $10,273,702 ($212,900 + 23,681,293 - 13,620,491)
Classification of receipts and payments:
Operating Activities
Receipts from customers $9,367,600
Receipts from dividends 3,278,660
Payments for inventory (2,482,414)
Payments for wages (861,819)
Payments for rent (496,483)
Payments for interest (337,234)
Payments for taxes (702,570)
Net cash from operations $7,765,740
Investing Activities
Receipts from land sale $3,466,012
Receipts from machinery sale 1,105,377
Payments for machinery (3,494,115)
Payments for long-term investments (3,531,585)
Net cash from investments ($2,454,311)
Financing Activities
Receipts from issuing stock $2,407,473
Receipts from borrowing 4,056,171
Payments for note payable (599,526)
Payments for dividends (777,511)
Payments for treasury stock (337,234)
Net cash from financing $4,749,373
Net cash flows $10,060,802
Cash Reconciliation:
Beginning Cash Balance $212,900
Net cash flows 10,060,802
Ending Cash balance $10,273,702
Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $6,000 for direct materials, $9,900 for direct labor, and $7,128 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $3,000 for direct materials and $4,900 for direct labor.
Required:
Calculate the overhead cost be added to Job W at year-end
Answer:
$6,811
Explanation:
Job V had $9,900 of direct labor and $7,128 of overhead was applied to the job
= $9,900 ÷ $7,128
= $1.39 overhead rate.
This means that the application was based on taking $9,900 of Direct labor × $1.39 rate = $7,128 overhead
For Job W, take $4,900 DL × same $1.39 rate = $6,811
Therefore, the overhead cost to be applied to job w at year end is $6,811
Assume that Amazon.com has a stock-option plan for top management. Each stock option represents the right to purchase a share of Amazon $1 par value common stock in the future at a price equal to the fair value of the stock at the date of the grant. Amazon has 5,000 stock options outstanding, which were granted at the beginning of 2014.
The following data relate to the option grant.
Exercise price for options = $40
Market price at grant date (January 1, 2014) = $40
Fair value of options at grant date (January 1, 2014) = $6
Service period = 5 years.
Instructions:
(a) Prepare the journal entry(ies) for the first year of the stock-option plan.
(b) Prepare the journal entry(ies) for the first year of the plan assuming that, rather than options, 700 shares of restricted stock were granted at the beginning of 2014.
(c) Now assume that the market price of Amazon stock on the grant date was $45 per share. Repeat the requirements for (a) and (b).
(d) Amazon would like to implement an employee stock-purchase plan for rank-and-file employees, but it would like to avoid recording expense related to this plan. Which of the following provisions must be in place for the plan to avoid recording compensation expense?
(1) Substantially all employees may participate.
(2) The discount from market is small (less than 5%).
(3) The plan offers no substantive option feature.
(4) There is no preferred stock outstanding.
Answer:
a.
1/1/2014 No entry
12/31/2014
Dr Compensation Expense $6,000
Cr Paid-in Capital—Stock Options $6,000
b. 1/1/2014
Dr Unearned Compensation $28,000
Cr Common Stock $700
Cr Paid-in Capital in Excess of Par $27,300
12/31/2014
Dr Compensation Expense $5,600
Cr Unearned Compensation $5,600
c. No change for Part A
Part B
1/1/2014
Dr Unearned Compensation $31,500
Cr Common Stock $700
Cr Paid-in Capital in Excess of Par $30,800
12/31/2014
Dr Compensation Expense $6,300
Cr Unearned Compensation $6,300
d. 0ptions 1,2&3
1.Substantially all the employees may participate
2. Discount from the market is small (less than 5%)
3. The plan tend to offers no substantive option feature.
Explanation:
a.Preparation of the journal entry(ies) for the first year of the stock-option plan.
1/1/2014 No entry
12/31/2014
Dr Compensation Expense $6,000
($6 * 5,000 ÷ 5)
Cr Paid-in Capital—Stock Options $6,000
b. Preparation of the journal entry(ies) for the first year of the plan
1/1/2014
Dr Unearned Compensation $28,000
($40 * $700)
Cr Common Stock $700
($1 * 700)
Cr Paid-in Capital in Excess of Par $27,300
($28,000-$700)
12/31/2014
Dr Compensation Expense $5,600
($28,000 ÷ 5)
Cr Unearned Compensation $5,600
c.
a. In a situation where we assume that the market price of the stock on the grant date was $45 per share their would be NO change for PART A except in a situation where the fair value of options changes.
Part B
1/1/2014
Dr Unearned Compensation $31,500
($45 * $700)
Cr Common Stock $700
($1 *$700)
Cr Paid-in Capital in Excess of Par $30,800
($31,500-$700)
12/31/2014
Dr Compensation Expense $6,300
($31,500 ÷ 5)
Cr Unearned Compensation $6,300
d. Based on the information given the provisions that must be in place for the plan in order to avoid recording compensation expense will be option 1,2&3
1.Substantially all the employees may participate
2. Discount from the market is small (less than 5%)
3. The plan tend to offers no substantive option feature.
These financial statement items are for Martinez Company at year-end, July 31, 2022. Salaries and wages payable $ 2,400 Notes payable (long-term) $ 1,600 Salaries and wages expense 51,000 Cash 13,200 Utilities expense 22,900 Accounts receivable 9,800 Equipment 29,300 Accumulated depreciation-equipment 6,300 Accounts payable 4,500 Dividends 2,700 Service revenue 61,000 Depreciation expense 4,200 Rent revenue 9,000 Retained earnings (beginning of the year) 20,900 Common stock 27,400 Prepare a retained earnings statement for the year.\
Answer:
See below
Explanation:
Statement of Retained earnings for the year is computed as;
Retained earning at the beginning
$20,900
Add service revenue
$61,000
Less dividend
($2,700)
Retained earnings for the year
$79,200
Please note that other information given are not relevant for the preparation or computation of statement of retained earnings for the year.
Below is the common equity section (in millions) of Timeless Technology's last two year-end balance sheets:
2013 2012
Common stock $2,000 $1,000
Retained earnings 2,000 2,340
Total common equity $4,000 $3,340
The firm has never paid a dividend to its common stockholders. Which of the following statements is CORRECT?
a. The company's net income in 2013 was higher than in 2012.
b. The market price of the firm's stock doubled in 2013.
c. The firm issued common stock in 2013.
d. The firm had positive net income in both 2012 and 2013, but its net income in 2013 was lower than it was in 2012.
e. The company has more equity than debt on its balance sheet.
Answer: The firm issued common stock in 2013.
Explanation:
Since the firm has never paid a dividend to its common stockholders, we can see that the firm issued common stock in 2013.
Looking clearly at the common equity section, we can see that there was an increase in the common stock from $1000 to $2000.
The reduction in the retained earnings from $2340 to $2000 also shows that there was a loss.
Based on the above scenarios, we can say that the firm issued common stock in 2013.
Jane The Virgin Trivia
Jane's son's name is...?
Who is Jane's first husband?
How many seasons of the show are there?
Answer all correctly and you get 10 points and brainliest
Answer:
Mateo.
Michael.
5.
Explanation:
Answer: Mateo Gloriano Rogelio Solano Villanueva
Michael Cordero Jr
5 Seasons
Explanation: as you can see, I LOOOOOVEEEEEE Jane the Virgin! Season 6 rn idc
General Manufacturing wants to borrow $1 million for three months. It uses its inventory as collateral for an 11% (APR) loan under a warehouse arrangement where the warehouse fee is $12,000 paid at the start of the three months. What is the EAR of this loan for General Manufacturing?
A) 2.8%.
B) 4.0%.
C) 17.1%.
D) 24.4%.
Answer:
C) 17.1%
Explanation:
Calculation for What is the EAR of this loan for General Manufacturing
First step is to compute FV using a financial calculator
PV =$1,000,000
I =11/12 =0.9167
N =3 years
Hence ,
FV =$1,027,752.85
Second step is to calculate the amount received
Amount received =$1,000,000 -$12,000
Amount received=$988,000
Now let calculate the actual rate
Actual rate =1,027,753 / 988,000
Actual rate =1.0402
Hence,
EAR =17.1%
Therefore the EAR of this loan for General Manufacturing will be 17.1%
Indicate whether the item in each column is reported in the financial statements of the fund types listed below by clicking the corresponding boxes.
Statement Capital assets Long-term liabilities Encumbrances
1. General fund
2. Special revenue funds
3. Capital projects funds
4. Debt service funds
5. Permanent funds
6. Enterprise funds
7. Internal service funds
8. Pension (and other employee
benefit) trust funds
9. Investment trust funds
10. Private-purpose trust funds
11. Custodial funds
Answer:
dont know thanks for the points tho
Explanation:
The following statement is listed as follows:
Capital fund - General Fund, Permanent Fund, Enterprise funds, Investment trust funds, Capital projects funds.Long-term liabilities - Debt Service funds, Pension Trust funds, Private-purpose trust funds, Custodial funds.Encumbrances - Special Revenue funds.Homes, automobiles, investment properties, stocks, bonds, and even collections or art are examples of capital assets.
Long-term liabilities in accounting are a company's financial commitments that are due longer than a year in the future.
A third party's claim, stake, or legal obligation over real estate is referred to as an encumbrance if it does not prevent the owner from transferring the title.
Therefore, the following statement is listed:
Capital fund - 1, 3, 5, 6, 9.Long-term liabilities - 4, 8, 10,11Encumbrances - 2To know more about the capital assets, visit:
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Scenario #3: Isaiah
Isaiah is in his 50s and currently does not have a retirement fund. However, he recently read a few articles about the insufficient savings of people in retirement and, as a result, he decides he wants to start now. He saves $500 per month for 15 years and earns 7% by investing in the stock market* through an index fund.
9. What is the total balance in the account after 15 years?
10. How much of the total did Isaiah contribute himself?
11. How much money did Isaiah make through compounded returns in this investment account?
12. Explain why Isaiah’s total balance is less than Pamela’s even though his money earned the same rate of return and his monthly contribution was higher than hers.
______________________________________________________
Question 4: If someone you know wanted to start investing, what best practices would you recommend they follow so they can harness the power of compounding? Explain your reasoning.
please hurry
Answer:
did anyone ever get the answer to this?
Explanation:
9. The total balance in Isaiah's retirement savings account at the end of 15 years is $159,405.62.
10. The total amount that Isaiah contributed to the savings account is $90,000.
11. Through compounded returns in the investment account, Isaiah earned interest income of $69,405.62.
12. The reason Isaiah's account balance is less than Pamela's is because Isaiah started contributing in his 50s, while Pamela started in her 30s.
13. The best strategy to harness the power of compounding is to start saving early. If it were possible, start saving in your 20s. When you start savings early, the investor reaps greatly from the power of multiplication inherent in compounding interest.
Data and Calculations:
Monthly savings into retirement account = $500
Period of savings = 15 years or 180 months
Interest rate = 7%
N (# of periods) = 180 months (15 years x 12)
I/Y (Interest per year) = 7%
PV (Present Value) = 0
PMT (Periodic Payment) = $500
Results
FV (Future Value) = $159,405.62
Sum of all periodic payments = $90,000.00 ($500 x 180)
Total Interest = $69,405.62
Thus, if Isaiah had started saving in his 30s like Pamela, he could be having $905,780.38 in his retirement savings account by the time he is 65 years old.
Learn more: https://brainly.com/question/24674971 and https://brainly.com/question/15878003
Swifty Corporation had the following selected transactions.
1. Kim Leppard invested $7,274 cash in the business in exchange for common stock.
2. Paid office rent of $1,382.
3. Performed consulting services and billed a client $6,838.
4. Declared and paid a $873 cash dividend.
Answer:
Missing word "Indicate the effect each transaction has on the accounting equation, (Assets = Liabilities + Stockholders' Equity), using plus and minus signs."
Assets = Liabilities + Stockholders' Equity
1. Increase(+) No Effect Increase(+)
2. Decrease(-) No Effect Decrease(+)
3. Increase(+) No Effect Increase(+)
4. Decrease(-) No Effect Decrease(+)
Grey Company is evaluating two manufacturing process layout options, each of which has the following characteristics for producing a batch of output:
Process Activity Minutes per Batch
Alternative 1 Alternative 2
Setup time 50 20
Movement time (from start to finish) 20 28
Waiting time 6 32
Inspection time 10 14
Processing time 80 60
Total time (in minutes) 166 154
Required:
a. Determine the production (manufacturing) lead time per batch for each decision alternative.
b. Determine the process cycle efficiency (PCE) for each system.
Answer:
Production (manufacturing) Lead Time per batch
Production Lead Time = Total Time required to manufacture which includes Setup time, Movement time, Inspection Time, Processing Time and Wait Time.
Decision Alternative 1: 166 Minutes
Decision Alternative 2: 154 Minutes
Process Cycle Efficiency
PCE = Value Added Time / Cycle Time
Except Processing Time all are Non Value Added
Decision Alternative 1 = 80/166 = 0.48
Decision Alternative 2 = 60/154 = 0.39
Marc and Michelle are married and earned salaries this year of $69,200 and $13,950 respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,150 from corporate bonds. Marc contributed $3,150 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,150. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $7,300 of expenditures that qualify as itemized deductions and they had a total of $6,330 in federal income taxes withheld from their paychecks during the course of the year. (Use the 2018 tax rate schedules.)
a. What is the total amount of Marc and Michelle's deductions from AGI?
b. What is Marc and Michele's adjusted gross income?
Answer:
The answer is below
Explanation:
a)
Gross income = Marc salary + Michelle salary + corporate bond interest = $69200 + $13950 + $1150 = $84300
AGI deductions = contribution + alimony = $3150 + $2150 = $5300
Adjusted gross income = Gross income - AGI deductions = $84300 - $5300 =$79000
Let us assume married filing jointly = $24000
Itemized deductions = $7300
Greater of married filing jointly and Itemized deductions = married filing jointly = $24000
personal and dependency exemptions = $4050 per person
Therefore personal and dependency exemptions for Marc, Michelle and their child = 3 * $4050 = $12150
total amount of Marc and Michelle's deductions from AGI = Greater of married filing jointly and Itemized deductions + personal and dependency exemptions = $24000 + $12150 = $36150
b) Adjusted gross income = Gross income - AGI deductions = $84300 - $5300 =$79000
The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances:
Account Title Debits Credits
Cash 30,000
Accounts receivable 15,000
Equipment 20,000
Accumulated depreciation 6,000
Salaries payable 9,000
Common stock 40,500
Retained earnings 9,500
Total 65,000 65,000
The following is a summary of the transactions for the year:
Sales of services, $100,000, of which $30,000 was on credit.
Collected on accounts receivable, $27,300.
Issued shares of common stock in exchange for $10,000 in cash.
Paid salaries, $50,000 (of which $9,000 was for salaries payable).
Paid miscellaneous expenses, $24,000.
Purchased equipment for $15,000 in cash.
Paid $2,500 in cash dividends to shareholders.
Accrued salaries at year-end amounted to $1,000.
Depreciation for the year on the equipment is $2,000.
Required:
2., 5, & 8. Prepare the summary, adjusting and closing entries for each of the transactions listed.
3. Post the transactions, adjusting and closing entries into the appropriate t-accounts.
4. Prepare an unadjusted trial balance.
6. Prepare an adjusted trial balance.
7-a. Prepare an income statement for 2018.
7-b. Prepare a balance sheet as of December 31, 2018.
9. Prepare a post-closing trial balance.
Answer:
Karlin Company
T-Accounts
Cash
Account Title Debits Credits
Beginning balance 30,000
Service Revenue 70,000
Accounts receivable 27,300
Common Stock 10,000
Salaries payable 9,000
Salaries expense 41,000
Miscellaneous expenses 24,000
Equipment 15,000
Dividends 2,500
Balance 45,800
Totals 137,300 137,300
Accounts receivable
Account Title Debits Credits
Beginning balance 15,000
Service Revenue 30,000
Cash 27,300
Balance 17,700
Totals 45,000 45,000
Equipment
Account Title Debits Credits
Beginning balance 20,000
Cash 15,000
Balance 35,000
Totals 35,000 35,000
Accumulated depreciation
Account Title Debits Credits
Beginning balance 6,000
Depreciation expense 2,000
Balance 8,000
Totals 8,000 8,000
Salaries payable
Account Title Debits Credits
Beginning balance 9,000
Cash 9,000
Salaries Expense 1,000
Balance 1,000
Totals 10,000 10,000
Common stock
Account Title Debits Credits
Beginning balance 40,500
Cash 10,000
Balance 50,500
Totals 50,500 50,500
Retained earnings
Account Title Debits Credits
Beginning balance 9,500
Dividend
Account Title Debits Credits
Cash 2,500
Service Revenue
Account Title Debits Credits
Cash 70,000
Accounts Receivable 30,000
Balance 100,000
Totals 100,000 100,000
Salaries Expense
Account Title Debits Credits
Cash 41,000
Salaries payable 1,000
Balance 42,000
Totals 42,000 42,000
Miscellaneous Expense
Account Title Debits Credits
Cash 24,000
Depreciation Expense
Account Title Debits Credits
Accumulated depr 2,000
Unadjusted Trial Balance as of December 31, 2018:Account Title Debits Credits
Cash $45,800
Accounts receivable 17,700
Equipment 35,000
Accumulated depreciation $6,000
Common stock 50,500
Retained earnings 9,500
Dividends 2,500
Service Revenue 100,000
Salaries expense 41,000
Miscellaneous exp. 24,000
Totals $166,000 $166,000
Adjusted Trial Balance as of December 31, 2018:Account Title Debits Credits
Cash $45,800
Accounts receivable 17,700
Equipment 35,000
Accumulated depreciation $8,000
Salaries payable 1,000
Common stock 50,500
Retained earnings 9,500
Dividends 2,500
Service Revenue 100,000
Salaries expense 42,000
Miscellaneous exp. 24,000
Depreciation exp. 2,000
Totals $169,000 $169,000
Income Statement for the year ended December 31, 2018:Service Revenue 100,000
Salaries expense 42,000
Miscellaneous exp. 24,000
Depreciation exp. 2,000 68,000
Net Income 32,000
Retained earnings 1/1/2018 9,500
Dividends 2,500
Retained earnings 12/31/2018 39,000
Balance Sheet as of December 31, 2018:Assets
Cash $45,800
Accounts receivable 17,700
Equipment 35,000
Acc. depreciation 8,000 27,000
Total assets $90,500
Liabilities + Equity:
Salaries payable 1,000
Common stock 50,500
Retained earnings 39,000
Total liabilities + equity $90,500
Post Closing Trial BalanceAccount Title Debits Credits
Cash $45,800
Accounts receivable 17,700
Equipment 35,000
Acc. depreciation $8,000
Salaries payable 1,000
Common stock 50,500
Retained earnings 39,000
Totals $98,500 $98,500
Explanation:
a) Data and Calculations:
Trial Balance as of January 1, 2018:
Account Title Debits Credits
Cash 30,000
Accounts receivable 15,000
Equipment 20,000
Accumulated depreciation $6,000
Salaries payable 9,000
Common stock 40,500
Retained earnings 9,500
Total 65,000 65,000
Large businesses in developed economies generally find it more efficient to enlist the services of a financial institution to raise capital. A set of highly efficient financial intermediaries has evolved. In recent years, regulations against diversification of institutions have been largely removed; and today the differences between institutions have become blurred. Still, there remains a degree of institutional identity among them.
Give the correct response to each of the following questions.
a. Large conglomerates that combine many different financial institutions within a single corporation are known as_________
b. Organizations that underwrite and distribute new investment securities and help businesses obtain financing are known as_________
c. The traditional department stores of finance serving a variety of savers and borrowers are known as _________
d. Cooperative associations whose members are supposed to have a common bond are known as ___________
e. Retirement plans funded by corporations or government agencies for their workers and administered primarily by the trust departments Of commercial banks are known are:________
Answer:
a. Large conglomerates that combine many different financial institutions within a single corporation are known as_________
Financial services corporations.
b. Organizations that underwrite and distribute new investment securities and help businesses obtain financing are known as_________
Investment banks.
c. The traditional department stores of finance serving a variety of savers and borrowers are known as _________
Commercial Banks.
d. Cooperative associations whose members are supposed to have a common bond are known as ___________
Credit Unions.
e. Retirement plans funded by corporations or government agencies for their workers and administered primarily by the trust departments Of commercial banks are known are:________
Pension Funds.
Explanation:
During the last financial crisis, it was discovered that the financial sector was not sufficiently supervised. They tended to run their institutions without regard to the financial disasters that their activities might generate in the economy. To forecast financial recklessness, Congress passed the Dodd-Frank Act in 2010. The Act created a new agency for consumer protection in the financial sector. It promoted financial stability by improving accountability and transparency, especially with regard to derivative transactions. It took steps to curtail excessive risk-taking by financial institutions.
On 1/1/22 Big Co acquired 60% of Little Co voting stock for $300,000. The fair value of the NC Interest was $200,000 on that date. Little's book value was $500,000, and all assets and liabilities had fair values equal to book value.
During 2022, Little reported earnings of $70,000 and paid dividends of $20,000.
1. What was Big's "investment income" ("Income from Little") for 2022? (xx,xxx)
2. What was the "income to the NC Interest" ("NCI in Net Income") for 2022? (xx,xxx)
3. After recording the equity method entries for the year, what was the end of year balance in the "Investment in Little" reported on Big's ledger? (xxx,xxx)
4. What was value of the NC Interest ("NCI in NA of Little") reported on the 12/31/22 Consolidated Balance Sheet? (xx,xxx)
Answer:
1. Particulars Amount
Reported net income of Little $70,000
Multiply: Ownership share of Big Co 60%
Investment income (from Little) $42,000
2. Particulars Amount
Reported net income of Little $70,000
Multiply: non-controlling share (100%-60%) 40%
Income to the NC Interest $28,000
3. Particulars Amount
Investment in Little at beginning $300,000
Investment income (from Little) $42,000
Less: Dividends received (20000*60%) $(12,000)
Investment in Little at end of year balance $330,000
4. Particulars Amount
NC Interest at beginning $200,000
Income to the NC Interest $28,000
Less: Dividends paid to NC Interest (20000*40%) $(8,000)
NC Interest reported on the 12/31/22 $220,000
Consolidated Balance Sheet
You have recently won the super jackpot in the Washington State Lottery. On reading the fine print, you discover that you have the following two options:
a. You will receive 31 annual payments of $250,000, with the first payment being delivered today. The income will be taxed at a rate of 28 percent. Taxes will be withheld when the checks are issued.
b. You will receive $530,000 now, and you will not have to pay taxes on this amount. In addition, beginning one year from today, you will receive $200,000 each year for 30 years. The cash flows from this annuity will be taxed at 28 percent. Using a discount rate of 6.25 percent, which option should you select?
Answer:
should choose option a
Explanation:
option a)
annuity due, 31 payments of $180,000 per year, 6.25% discount rate
Present value = $180,000 x 14.40432 (PV annuity due factor, 6.25%, 31 periods) = $2,592,726
option b)
$500,000 today + ordinary annuity, 30 periods, 6.25%, $144,000
present value = $500,000 + ($144,000 x 13.40432 [PV annuity factor, 6.25%, 30 periods)] = $2,430,222
what makes a home a "dream home"?
Answer:
A dream home is a home that you wish you had.
Explanation:
Answer: A dream home is unique to each person. For example: ones dream home might be living in the country with cows and farmland, while someone else might prefer living in a busy city. Its unique to you.
Explanation:
Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $11.10 each, and the variable cost to manufacture them was $6.10 per unit. The company needed to sell 22,400 shirts to break-even. The after tax net income last year was $5,760. Donnelly's expectations for the coming year include the following: (CMA adapted) The sales price of the T-shirts will be $14. Variable cost to manufacture will increase by one-third. Fixed costs will increase by 10%. The income tax rate of 40% will be unchanged. Sales for the coming year are expected to exceed last year's by 1,120 units. If this occurs, Dorcan's sales volume in the coming year will be:_____.
Answer:
b 18,602 units.
Explanation:
TB MC Qu. 03-111 A manufacturer of cedar shingles...
A manufacturer of cedar shingles has supplied the following data:
Bundles of cedar shakes produced and sold 262,000
Sales revenue $ 2,122,200
Variable manufacturing expense $ 975,200
Fixed manufacturing expense $ 487,000
Variable selling and administrative expense $ 260,400
Fixed selling and administrative expense $ 276,000
Net operating income $ 123,600"
The company's contribution margin ratio is closest to:__________ (Do not round Intermediate calculations. Round your answer to whole percentage)
a) 42%
b) 34%
c) 66%
d) 58%
Answer:
A. 42%
Explanation:
Given the above information,
Contribution margin ratio = (Selling price - Unitary variable cost) / Selling price
Selling price = $2,122,200 / 262,000 = $8.1
Total variable cost = Variable manufacturing expense $975,200 + Variable selling and administrative expense $260,400 = $1,235,600
Unitary variable cost = $1,235,600 / 262,000 = $4.72
Contribution margin ratio = (8.1 - 4.72)/8.1 = 41.73% = 42%
By convention, a swap buyer on an interest rate swap agrees to act as the dealer in the swap agreement. hold both principal and interest to contract maturity. periodically pay a fixed rate of interest and receive a floating rate of interest. back both sides of the swap agreement. periodically pay a floating rate of interest and receive a fixed rate of interest.
Answer:
periodically pay a fixed rate of interest and receive a floating rate of interest.
Explanation:
The interest rate (rate of return) can be defined as the percentage of interest or dividends earned on money that is invested.
In Financial accounting, a return refers to the amount of profit generated by an investor on an investment over a specific period of time.
Basically, the interest rate which is typically expressed as a percentage of the initial costs of an investment can either be a gain or a loss on an investment. Therefore, a positive rate of return on an investment over a specific period of time, simply means that an investor is making a profit (gains) while a negative rate of return on an investment over a specific period of time, indicates that the investor is running at a loss.
By convention, a swap buyer on an interest rate swap agrees to periodically pay a fixed rate of interest and receive a floating rate of interest.
Grove Co. acquired a production machine on January 1, 2019, at a cost of $575,000. The machine is expected to have a four-year useful life, with a salvage value of $118,000. The machine is capable of producing 88,000 units of product in its lifetime. Actual production was as follows: 19,360 units in 2019; 28,160 units in 2020; 24,640 units in 2021; 15,840 units in 2022. Following is the comparative balance sheet presentation of the net book value of the production machine at December 31 for each year of the asset’s life, using three alternative depreciation methods (items a–c):
Productiom Machine Net of Accumulated Depreciation
At December 31
Depreciation Method 2019 2018 2017 2016
a. 80000 152000 264000 392000
b. 80000 80000 120000 240000
c. 80000 180000 280000 380000
Required:
Identify the depreciation method used for each of the preceding comparative balance sheet presentations.If a declinining balance method is used be sure to indicate the percentage.
Answer:
a. Production Units method
b. Straight Line depreciation
c. Double declining method
Explanation:
Straight Line Depreciation: [575,000 - 118,000] / 4 = 114,250 per year
Declining Balance Method :
Year 2019 : 19,360 / 88,000 * [ 575,000 - 118,000 ] = 100,540
Year 2020 : 28,160 / 88,000 * [ 575,000 - 118,000 ] = 146,240
Year 2021 : 24,640 / 88,000 * [ 575,000 - 118,000 ] = 127,960
Year 2022 : 15,840 / 88,000 * [ 575,000 - 118,000 ] = 82,260
Oslo Food Company distributes to consumers coupons which may be presented (on or before a stated expiration date) to grocers for discounts on certain products of Flavor. The grocers are reimbursed when they send the coupons to Oslo. In Oslo's experience, 55% of such coupons are redeemed, and generally one month elapses between the date a grocer receives a coupon from a consumer and the date Oslo receives it. During 2021 Oslo issued two separate series of coupons as follows:
Consumer Amount Disbursed
Issued On Total Value Expiration Date as of 12/31/18
1/1/18 $500,000 6/30/18 $236,000
7/1/18 840,000 12/31/18 350,000
The only journal entry recorded to date is: debit to coupon expense and credit to cash of $815,000. The December 31, 2018 balance sheet should include a liability for unredeemed coupons of:_____.
a) $0.
b) $70,000.
c) $184,000.
d) $420,000.
Answer: $112,000
Explanation:
$840,000 worth of coupons had been issued. The company expects that 55% of these coupons will be redeemed.
= 840,000 * 55%
= $462,000
Out of this, by year end only $350,000 have been disbursed, the amount left as a liability will be:
= 462,000 - 350,000
= $112,000
Options are probably for another variant of the question.
Defining the research problem and research objectives is often regarded as the most difficult step in the marketing research project. Although this step is challenging, it is critically important because it is impossible to solve problems that have not been clearly defined. With the research problem defined, researchers must decide on the type of research they will pursue to generate the data they need. The three types of research (also called objectives) are exploratory, descriptive, and causal.
Match the problem description into the type of research that would most likely be used to generate the appropriate data.
1. Exploratory
2. Descriptive
3. Causal
a. Thirsty athletes: Greg needs to understand how the consumption of sports drinks varies by geographical region.
b. Hypotheses help: Joe's research problem is still not clearly defined, and he needs to generate some hypotheses for his research.
c. High heels: Sophia wants to know if she can increase the sales of shoes in her boutique by moving the display from the back of the store to next to the registers.
d. Yoga love: Gema wants to open a yoga studio in her hometown, but first she wants to understand how her hometown's residents feel about practicing yoga.
Answer:
Problem Description and Type of Research
a. Thirsty athletes: Greg needs to understand how the consumption of sports drinks varies by geographical region.
2. Descriptive
b. Hypotheses help: Joe's research problem is still not clearly defined, and he needs to generate some hypotheses for his research.
1. Exploratory
c. High heels: Sophia wants to know if she can increase the sales of shoes in her boutique by moving the display from the back of the store to next to the registers.
3. Causal
d. Yoga love: Gema wants to open a yoga studio in her hometown, but first she wants to understand how her hometown's residents feel about practicing yoga.
1. Exploratory
Explanation:
1. Exploratory research clarifies the nature of the problem to be addressed. It is a preliminary research undertaken before additional research is conducted.
2. Descriptive research describes the situation of a problem by asking how, what, where, and where questions instead of focusing on “why” a particular phenomenon occurs.
3. Causal research (or experimental studies) determines whether a variable or more variables cause or affect the values of other research variables. It traces the cause and effect of a phenomenon.
Washburn Company produces earbuds. During the tear, manufacturing overhead costs are estimated to be $200,000. Estimated machine usage is 2,500 hours. The company assigns overhead based on machine hours. Job No. 551 used 90 machine hours . Compute the predetermined overhead rate, determine the amount of overhead to apply to Job No. 551, and prepare the entry to apply overhead to Job No. 551 on January 15.
Answer:
Results are below.
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 200,000 / 2,500
Predetermined manufacturing overhead rate= $80 per machine hour
Now, we can allocate overhead to Job 551:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 80*90
Allocated MOH= $7,200
Finally, the entry to record the allocation:
Work in process inventory 7,200
Manufacturing overhead (apply Job 551) 7,200
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.
April 30 May 31
Inventories
Raw materials $44,000 $49,000
Work in process 9,300 19,800
Finished goods 67,000 34,600
Activities and information for May
Raw materials purchases (paid with cash) 185,000
Factory payroll (paid with cash) 250,000
Factory overhead
Indirect materials 10,000
Indirect labor 57,500
Other overhead costs 106,000
Sales (received in cash) 2,000,000
Pre-determined overhead rate based
on direct labor cost 55%
Compute the following amounts for the month of May using T-accounts.
Cost of direct materials used.
Cost of direct labor used.
Cost of goods manufactured.
Cost of goods sold.
Gross profit.
Overapplied or underapplied overhead.
Answer:
Cost of Direct Material Used $134,900.
Under applied Overhead $36,000
Explanation:
Cost of Direct Material Used
Opening Material $44,000
Add: Opening Work in Process $9,300
Add: Purchases $185,000
Less: Closing Material $49,000
Less: Closing Work in process $19,800
Less: Closing finished goods $34,600
= $134,900
Overhead Rate Application:
Budgeted Overhead 55% of direct labor cost [55% * 250,000] = $137,500
Actual Overhead is $173,500
Under applied Overhead is $36,000
If annual overhead costs are expected to be $958000 and direct labor costs are expected to be $1000000, then if the activity base is direct labor costs:
A. $1.04 is the predetermined overhead rate.
B. a predetermined overhead rate cannot be determined.
C. for every dollar of manufacturing overhead, 1.04 cents of direct labor will be assigned.
D. for every dollar of direct labor, 95.8 cents of manufacturing overhead will be assigned.
Answer:
Predetermined manufacturing overhead rate= $0.958 per direct labor dollar
The correct answer is D.
Explanation:
Giving the following information:
Estimated overhead costs= $958,000
Estimated direct labor costs= $1,000,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 958,000 / 1,000,000
Predetermined manufacturing overhead rate= $0.958 per direct labor dollar
The service-profit chain is designed to help managers better understand the key linkages in a service delivery system that drive customer loyalty, revenue growth, and higher profits.
a. True
b. False
The following information is available for Pyle Garage for March, Year 2:
BANK STATEMENT
HAZARD STATE BANK
215 MAIN STREET
HAZARD, GA 30321
Pyle Garage Account number
629 Main Street 62-00062
HAZARD, GA 30321 March 31, Year 2
Beginning balance 3/1/Year 2 $9,093
Total deposits and other credits 30,215
Total checks and other debits 25,201
Ending balance 3/31/Year 2 14,107
Checks and Debits Deposits and Credits
Check No. Amount Date Amount
1462 $3,816 March 1 $1,160
1463 1,701 March 2 6,558
1464 8,059 March 6 5,001
1465 2,956 March 12 6,224
1466 1,464 March 17 6,022
1467 6,242 March 22 2,140
DM 73 CM 3,110
1468 890
The following is a list of checks and deposits recorded on the books of Pyle Garage for March, Year 2:
Check Amount of Amount of
Date No. Check Date Deposit
March 1 1463 $1,701 March 1 $6,558
March 5 1464 8,059 March 5 5,001
March 6 1465 2,956
March 9 1466 1,464
March 10 6,224
March 10 1467 6,242
March 14 1468 165 March 16 6,022
March 19 1469 1,557 March 19 2,140
March 28 1470 803 March 29 3,601
Other Information
Check no. 1462 was outstanding from February.
A credit memo for collection of accounts receivable was included in the bank statement.
All checks were paid at the correct amount.
The bank statement included a debit memo for service charges.
The February 28 bank reconciliation showed a deposit in transit of $1,160.
Check no. 1468 was for the purchase of equipment.
The unadjusted Cash account balance at March 31 was $13,036.
1. Prepare the bank reconciliation for Pyle Garage at the end of March.
2. How the adjustments described above affect the cash account.
Answer:
See below
Explanation:
Pyle Garage
Bank Reconciliation statement
March 31,
Unadjusted Bank balance
$14,107
March 31,
Add: Deposit in transit
$3,601
Less: Outstanding checks #1,469
($1,557)
Outstanding checks #1,470
($803)
True cash balance March 31, 2018
$15,348
Unadjusted Book balance, March 31
$13,036
Add: Credit memo for collection of
$3,110
Accounts receivables
Less: Error in recording check #1,468
[$890 - $165]
($725)
Debit memo for service charges
($73)
True cash balance March 31,
$15,348
B. Account titles
Cash Dr $3,110
Accounts receivables Cr. $3,110
Equipment Dr $725
Cash. Cr. $725
Bank service charge expense Dr $73
Cash. Cr. $73
Suppose we want to highlight the year number for each year during which sales were at least 5% higher than the previous year. We would begin by selecting the cell range D6:D12 and choose Conditional Formatting from the Ribbon. Then you would select new rules followed by the Use a Formula option. Finally you would enter the following formula.
Year Actual Sales Cumulative Sales
1 77 77
2 58 135
3 78 213
4 40 253
5 42 295
6 44 339
7 74 413
8 83 496
A. (E5/E4)>1.05.
B. ($E$6/E5)>1.05.
C. (E6/E5)>1.05.
D. (E6/E5)>.05.
Answer:
c) E6/E5 > 1.05
Option C is the correct option.
Explanation:
Data Given:
Year Actual Sales Cumulative Sales
1 77 77
2 58 135
3 78 213
4 40 253
5 42 295
6 44 339
7 74 413
8 83 496
The formula, we have to use in this question is:
c) E6/E5 > 1.05
Option C is the correct option.
Actual Sales/Previous Sales > (1+r)
r = 5%
r = 0.05
Actual Sales/Previous Sales > (1 + 0.05)
Actual Sales/ Previous Sales > (1.05)
Here, the sales were at least 5% higher than the previous year sales. Therefore, the correct formula here we need to enter in Excel Spread Sheet is "E6/E5 > 1.05"
Where, E is the name of the cell in the Excel Spreadsheet.