Answer and Explanation:
The Preparation of the income statement is shown below:-
Prestigious Pugs
Income Statement
For the most recent year
Particulars Amount
Sales $1,105,000
Less: Cost of goods sold ($657,750)
Gross profit $447,250
Less : Operating expenses
website maintenance expenses ($55,000)
Marketing expenses ($30,500)
wrapping, boxing, and shipping Exp ($29,500) ($115,000)
Net income $332,250
Working note:
Beginning inventory $16,250
Add: Inventory purchase $657,500
($638,000 + 19,500)
Total goods available for sale $673,750
Less: Ending inventory ($16,000)
Cost of goods sold $657,750
On September 1, Pat Hopkins established Ona Cloud Corporation (OCC) as a provider of cloud computing services. Pat contributed $14,000 for 1,400 shares of OCC. On September 8, OCC borrowed $36,500 from a bank, promising to repay the bank in two years. On September 10, OCC wrote a check for $22,500 to acquire computer equipment. On September 15, OCC received $1,450 of supplies purchased on account and, on September 16, paid $2,500 for September rent. Through September 22, OCC provided its customers $11,550 of services, of which OCC collected $6,900 in cash. On September 28, OCC paid $695 for Internet and phone service this month. On September 29, OCC paid wages of $5,450 for the month. Finally, on September 30, OCC submitted its electricity meter reading online and determined that the total charges for the month will be $645. This amount will be paid on October 14 through a preauthorized online payment.
Required:
a. Indicate the accounting equation effects of the September events.
b. Prepare journal entries to record the September events described above.
c. Using your answer to requirement 1 or 2, calculate OCC's preliminary net income for September. Is OCC profitable, based on its preliminary net income?
d. Identify at least two adjustments that OCC will be required to make before it can prepare a final income statement for September.
Answer:
a) I used an excel spreadsheet since there is not enough room
b)
On September 1, Pat Hopkins established Ona Cloud Corporation (OCC) as a provider of cloud computing services. Pat contributed $14,000 for 1,400 shares of OCC.
Dr Cash 14,000
Cr Common stock 14,000
On September 8, OCC borrowed $36,500 from a bank, promising to repay the bank in two years.
Dr Cash 36,500
Cr Notes payable 36,500
On September 10, OCC wrote a check for $22,500 to acquire computer equipment.
Dr Equipment 22,500
Cr Cash 22,500
On September 15, OCC received $1,450 of supplies purchased on account and,
Dr Supplies 1,450
Cr Accounts payable 1,450
on September 16, paid $2,500 for September rent.
Dr Rent expense 2,500
Cr Cash 2,500
Through September 22, OCC provided its customers $11,550 of services, of which OCC collected $6,900 in cash.
Dr Cash 6,900
Dr Accounts receivable 4,650
Cr Service revenue 11,550
On September 28, OCC paid $695 for Internet and phone service this month.
Dr Internet and phone expenses 695
Cr Cash 695
On September 29, OCC paid wages of $5,450 for the month.
Dr Wages expense 5,450
Cr Cash 5,450
Finally, on September 30, OCC submitted its electricity meter reading online and determined that the total charges for the month will be $645. This amount will be paid on October 14 through a preauthorized online payment.
Dr Utilities expense 645
Cr Accounts payable 645
c) preliminary net income = $2,260, so the company seems to be profitable
d) OCC must adjust depreciation expense (equipment), interest expense on the bank loan and supplies expense.
Maggie’s Skunk Removal Corp.’s 2018 income statement listed net sales of $13.8 million, gross profit of $8.70 million, EBIT of $6.9 million, net income available to common stockholders of $4.5 million, and common stock dividends of $2.5 million. The 2018 year-end balance sheet listed total assets of $53.8 million and common stockholders' equity of $22.3 million with 2.0 million shares outstanding.
1. Calculate the profit margin.
2. Calculate the basic earnings power.
3. Calculate the return on assets.
4. Calculate the return on equity.
5. Calculate the dividend payout.
Answer: See explanation
Explanation:
1. Calculate the profit margin
Profit Margin = (Net Income/Net Sales) × 100
Profit Margin = (4,500,000/13,800,000) × 100
Profit Margin = 3.26 × 100
Profit margin = 32.6%
2. Calculate the basic earnings power.
Gross Profit Margin:
= Gross Profit/Net Sales × 100
= (8,700,000/13,800,000) × 100
= 6.304 × 100
= 63.04%
3. Calculate the return on assets.
Return on assets= Net income/Total asset
= 4,500,000/53,800,000
= 0.0836
= 8.36%
4. Calculate the return on equity.
Return on equity = Net income/Equity
= 4,500,000/22,300,000
= 0.2017
= 20.17%
5. Calculate the dividend payout.
Dividend payout = Dividend/Net income
= 2,500,000/4,500,000
= 0.556
= 55.6%
Acklin Company has two products: A and B. Annual production and sales are 600 units of Product A and 900 units of Product B.The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products.Product A requires 0.5 direct labor hours per unit and Product B requires 0.3 direct labor hours per unit.The total estimated overhead cost for the next period is $63,322.The company is now considering switching to an activity-based costing system. The new activity-based costing system would have three overhead activity cost pools- Activity 1, Activity 2, and General Factory-with estimated overhead costs and expected activity as follows:Estimated Overhead Expected Activity (Allocation Base)Activity Pool Cost Product A Product B TotalActivity 1 $18,900 700 200 900Activity 2 15,631 1,000 100 1,100General factory 28,791 300 270 570Total $63,322 (Note: The General Factory activity pool's costs are allocated on the basis of direct labor hours.)1. The overhead cost per unit of Product A under the traditional costing system is closest to:A) $10.50B) $55.55C) $25.26D) $7.112. The overhead cost per unit of Product A under the activity-based costing system is closest to:A) $25.26B) $73.44C) $42.21D) $55.55
Answer:
1. B $55.55
2.
Explanation:
1. The overhead cost per unit of product A under the traditional costing system
Overhead cost per unit = Estimated manufacturing overhead / Direct labor hours
= $63,332 / (570 × 0.5)
= $55.55 per unit
2. Activity rate
Record adjusting journal entries for each of the following for year ended December 31. Assume no other adjusting entries are made during the year.
Salaries Payable. At year-end, salaries expense of $18,000 has been incurred by the company, but is not yet paid to employees.
Interest Payable. At its December 31 year-end, the company owes $375 of interest on a line-of-credit loan. That interest will not be paid until sometime in January of the next year.
Interest Payable. At its December 31 year-end, the company holds a mortgage payable that has incurred $1,000 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year.
Answer and Explanation:
The Journal entries are shown below:-
1. Salaries expense Dr, $18,000
To salaries payable $18,000
(Being salaries incurred but not paid is recorded)
2. Interest expenses Dr, $375
To Interest payable $375
(Being interest accrued but not paid is recorded)
3. Interest expenses Dr, $1,000
To Interest payable $1,000
(Being interest accrued but not paid is recorded)
Suppose you own a small company that is contemplating construction of a suburban office block. The cost of buying the land and constructing the building is $700,000. Your company has cash in the bank to finance construction. Your real estate adviser suggests that you rent out the building for two years at $30,000 a year and predicts that at the end of that time you will be able to sell the building for $840,000.
Thus there are now two future cash flows--a cash flow of C1 = $30,000 at the end of year 1 and a further cash flow of C2 = ($30,000 + 840,000) = $870,000 at the end of the second year.
Required:
a. Calculate the NPV of the office building venture at interest rates of 5, 10, and 15%.
b. At what discount rate (approximately) would the project have a zero NPV?
Answer:
NPV when discount rate is 5% = $117,687.08
NPV when discount rate is 10% = $46,281
NPV when discount rate is 15% = $-16,068.05
B. 13.65%
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated with a financial calculator
Cash flow in year 0 = $-700,000.
Cash flow in year 1 = $30,000
Cash flow in year 2 = ($30,000 + 840,000) = $870,000
NPV when discount rate is 5% = $117,687.08
NPV when discount rate is 10% = $46,281
NPV when discount rate is 15% = $-16,068.05
To determine which discount rate that would give the project a zero NPV, we are supposed to calculate the Internal rate of return
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated using a financial calculator
Cash flow in year 0 = $-700,000.
Cash flow in year 1 = $30,000
Cash flow in year 2 = ($30,000 + 840,000) = $870,000
IRR = 13.65%
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Boston’s Dairy has just opened its main yogurt factory in upstate Massachusetts. This main factory can produce 3,500 boxes of yogurt monthly (each box contains twelve 6-oz cups). Due to overwhelming demand for the company’s product, Boston’s Dairy has signed a contract to rent a new factory, which can produce up to 8,000 boxes per month. The monthly total fixed costs are $40,000 in the main factory and $16,000 in the new factory. The variable production cost of yogurt is $4.50 per box in the main factory. The variable production cost in the new factory is $6.0 per box as materials have to be redistributed from the main factory. The average selling price is $15, and the variable selling expense is $1 per box, which is the same for all factories. In addition, Boston’s Dairy plans to pay its sales force $0.80 per box as added bonus for every box sold above the break-even point. How many boxes does the company have to produce and sell in order to earn a net operating income of $10,000 per month (round all decimal up to one box)
Answer:
7,733 units
Explanation:
Breakeven point is one where revenue equals the cost.
In the main Factory:
Fixed cost = $40,000
Variable cost = $19,250 [($4.5 + $1.0) * 3,500 boxes]
Total cost = $59,250 [$40,000 + $19,250]
Revenue = $52,500 [3,500 * $15]
Net profit or loss : $52,500 - $59,250 = - 6,750 Loss
In the new Factory:
The break even point will be achieved when the loss of $6,750 in the main factory is covered by the new factory.
Fixed cost : $16,000
Variable cost : $6.0 + $1.0 = $7
Selling price = $15
16,000 + 6,750 + 7x = 15x
solving for x we get:
x = 2,844.
In the new factory 2,844 units needs to be produced in excess to achieve the breakeven point.
Total units required to produce 3,500 + 2,844 = 6,344.
If the company adds bonus of $0.80 for its sales force on each box sold above the breakeven then the cost will be increased.
Contribution Margin : 15 - [ 6 + 1 + 0.80 ] = $7.20
Box required to sell to produce net operating income of $10,000
10,000 / 7.20 = 1,389 units
Total units 7,733 [6,344 + 1,389]
For each scenario, decide whether it creates a producer or a consumer surplus. Then, calculate the ensuing surplus.
Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off which she found online. She selects and purchases a pair of jeans which cost $35 pre-discount.
Alice's____________ surplus:
Jeff finds some steaks for $16 for which he would have been willing to pay $20 . The butcher notices the meat is near the expiration date and gives him an extra 75 % off.
Jeff's________ surplus
Nicole has a hockey puck from the 2018 Winter Olympic Games and puts it up for sale on eBay. She will only sell the puck if the winning bid is greater than or equal to $500 . After bidding closes, the last bid stands at $501.
Nicole's____________ surplus
Answer:
Alice's consumer surplus = $5
Jeff's consumer surplus = $16
Nicole's producer surplus = $1
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of a good.
Consumer surplus = willingness to pay - price of the good
Producer surplus is the difference between the price of a good and the least price the producer is willing to accept
Producer surplus = price of the good - least price the producer is willing to accept
Alice's consumer surplus = $30 - ($35 - $10) = $5
Jeff's consumer surplus = $20 - [$16 - (0.75 x $16)] = $16
Nicole's producer surplus = $501 - $500 = $1
Presented below are a number of balance sheet items for Tamarisk, Inc. for the current year, 2020.
Goodwill $27,340 Accumulated Depreciation-Equipment $292,490
Payroll Taxes Payable 179,931 Inventory 242,140
Bonds payable 302,340 Rent payable (short-term) 47,340
Discount on bonds
payable 15,490 Income taxes payable 100,702
Cash 362,340 Rent payable (long-term) 482,340
Land 482,340 Common stock, $1 par value 202,340
Notes receivable 448,040 Preferred stock, $10 par value 152,340
Notes payable (to
banks) 267,340 Prepaid expenses 90,260
Accounts payable 492,340 Equipment 1,472,340
Retained earnings ? Equity investments (trading) 123,330
Income taxes receivable 99,960 Accumulated Depreciation-Buildings 270,446
Notes payable
(long-term) 1,602,330 Buildings 1,642,330
Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of equity investments (trading) are the same.
Answer:
Tamarisk, Inc.
Classified Balance Sheet
As of December 31, 2020:
ASSETS:
Current Assets:
Cash $362,340
Equity investments (trading) 123,330
Notes receivable 448,040
Income taxes receivable 99,960
Inventory 242,140
Prepaid expenses 90,260
Total current assets $1,366,070
Equipment 1,472,340
Accumulated
Depreciation (292,490) 1,179,850
Buildings 1,642,330
Accumulated
Depreciation (270,446 ) 1,371,884
Land 482,340
Goodwill 27,340
Total long-term assets $3,061,414
Total assets $4,427,484
LIABILITIES
Current Liabilities
Accounts payable 492,340
Payroll Taxes Payable 179,931
Income taxes payable 100,702
Rent payable (short-term) 47,340
Discount on bonds payable 15,490
Notes payable (to banks) 267,340
Total current liabilities $1,103,143
Bonds payable 302,340
Rent payable (long-term) 482,340
Notes payable (long-term) 1,602,330
Total long-term liabilities $2,387,010
Total Liabilities $3,490,153
EQUITY
Common stock, 400,000 shares authorized
Issued, 202,340 shares at
$1 par value 202,340
Preferred stock, 200,000 shares authorized
Issued, 15,234 shares at
$10 par value 152,340
Retained earnings 582,651
Total Equity $937,331
Total liabilities & Stockholders' equity $4,427,484
Explanation:
a) Data:
Account Title Debit Credit
Cash $362,340
Equity investments (trading) 123,330
Notes receivable 448,040
Income taxes receivable 99,960
Inventory 242,140
Prepaid expenses 90,260
Equipment 1,472,340
Accumulated Depreciation-Equipment $292,490
Buildings 1,642,330
Accumulated Depreciation-Buildings 270,446
Land 482,340
Goodwill 27,340
Accounts payable 492,340
Payroll Taxes Payable 179,931
Income taxes payable 100,702
Rent payable (short-term) 47,340
Discount on bonds payable 15,490
Notes payable (to banks) 267,340
Bonds payable 302,340
Rent payable (long-term) 482,340
Notes payable (long-term) 1,602,330
Common stock, $1 par value 202,340
Preferred stock, $10 par value 152,340
Retained earnings 582,651
Total $4,990,420 $4,990,420
Consider the following case of Happy Turtle Transportation Company:
Suppose Happy Turtle Transportation Company is considering a project that will require $300,000 in assets.
The project is expected to produce earnings before interest and taxes (EBIT) of $55,000.
Common equity outstanding will be $30,000 shares.
The company incurs a tax rate of 40%.
1. If the project is financed using 100% equity capital, then Happy Turtle Transportation Company’s return on equity (ROE) on the project will be 11.55% / 10.45% / 13.20% / 11.00%. In addition, Happy Turtle’s earnings per share (EPS) will be$ 0.99 / $ 1.10 / $ 1.21 / $0.94 / $ 1.05.
2. Alternatively, Happy Turtle Transportation Company’s CFO is also considering financing the project with 50% debt and 50% equity capital. The interest rate on the company’s debt will be 13%. Because the company will finance only 50% of the project with equity, it will have only 15,000 shares outstanding. Happy Turtle Transportation Company’s ROE and the company’s EPS will be ???? if the management decides to finance the project with 50% debt and 50% equity.
14.20% and $ 1.42, respectively
14.91% and $ 1.35, respectively
17.04% and $ 1.63, respectively
16.33% and $ 1.56, respectively
3. When a firm uses debt financing, the business risk exposure for the firm’s common shareholders will increase / decrease.
Answer: Check attachment
Explanation:
1. Based on the calculations on the attachment, the return on equity is 11% and the earning per share is $1.1.
2. Return on equity is 14.20% and the earning per share is $1.42.
3. The business risk exposure for the common area shareholders of the firm will increase when debt financing is used by the firm.
Check the attachment for further details
which group will test out new technology but are not usually seen as leaders within an organization
Answer:
Innovators
Explanation:
The reason is that their idea might not be successful in the beginning and also that they are not supported by the company executive directors. This lessens their value as a leader. There are other issues that are also associated with innovators which makes them difficult to get aknowledged as a leader, these as listed below:
They don't have any busines field background so they can't appraise the proposal.They don't have decision making powers.The technology project takes time to reach maturity phase and creates demand. Blockchains were invented in 2008 but today they are valued. So great things take time.Many decision makers don't value them because they feel that the innovators will take away their appreciation.Sometimes their idea actually doesn't work which means they overestimate the favourable facts.Suppose that this year's money supply is $400 billion, nominal GDP is $12 trillion, and real GDP is $4 trillion.
The price level is______ , and the velocity of money is______ .
Suppose that velocity is constant and the economy's output of goods and services rises by 3 percent each year. Use this information to answer the questions that follow.
If the Fed keeps the money supply constant, the price level will_______ , and nominal GDP will_______ .
True
False
If the Fed wants to keep the price level stable instead, it should_________ keep the money supply_______ unchanged next year. True False If the Fed wants an inflation rate of 11 percent instead, it should the money supply by % . (Hint: The quantity equation can be rewritten as the following percentage change formula:
Answer:
1. Price Level
= Nominal GDP/Real GDP
= 12 trillion/4 trillion
= $3
b. Velocity
= Price level * Real GDP/ Money supply
= 3 * 4/0.4
= 30
2. If the Fed keeps the money supply constant, the price level will Decrease , and nominal GDP will Remain the same .
The economy rose however money supply was kept constant. This means that prices could not rise and so had to decrease to cater for the increase in output. With lower prices but higher output, the Nominal GDP remained the same.
3. If the Fed wants to keep the price level stable instead, it should keep the money supply unchanged next year. TRUE
4. If the Fed wants an inflation rate of 11 percent instead, it should Increase the money supply by 14%.
(Percentage Change in Money supply) + (Percentage Change in V) = (Percentage Change in Price) + (Percentage Change in GDP).)
V is constant so is 0.
(Percentage Change in M) = (Percentage Change in P) + (Percentage Change in Y).)
= 11% + 3%
= 14%
The price level and velocity are $3 and 30 respectively, if money supply is constant price decreases, if price level is stable the money supply remain unchanged. The money supply rate is 14%
What is GDP?GDP stands for gross domestic product, it is the total value (in monetary terms) of all finished goods and services produced by a country within a specific time period, usually a year.
Given:
Money Supply=$400 billion,
Nominal GDP = $12 trillion
Real GDP = $4 trillion
1.a. Price Level
= Nominal GDP/Real GDP
= 12 trillion/4 trillion
= $3
1.b. Velocity of money supply
= Price level x Real GDP/ Money supply
= 3 x 4/0.4
= 30
The price level is $3, and the velocity of money is 30.
2. On keeping the money supply constant by the Fed, the price level will Decrease, and nominal GDP will remain the same.
3. In order to keep the price level stable instead, the Fed should keep the money supply unchanged next year. TRUE
4. If the Fed wants an inflation rate of 11% instead, it should increase the money supply by 14%.
%ΔM+%ΔV=%ΔP+%ΔY
or
(Percentage Change in Money supply) + (Percentage Change in V) = (Percentage Change in Price) + (Percentage Change in GDP).
V is constant, so is 0.
(Percentage Change in M) = (Percentage Change in P) + (Percentage Change in Y).
= 11% + 3%
= 14%
Therefore, it can be said the above calculation aptly describes the statements.
Learn more about GDP here:
https://brainly.com/question/4131508
Assume you are given a minimization linear program that has an optimal solution. The problem is then modified by changing a greater-than-or-equal-to constraint in the problem to a less-than-or-equal-to constraint. Is it possible that the modified problem is infeasible? Answer yes or no and justify. a. Yes, it is possible that the modified problem is infeasible. Modifying one constraint as described could cause the regions to produce alternate optimal solutions. b. Yes, it is possible that the modified problem is infeasible. Modifying one constraint as described could cause the regions to no longer overlap. c. No, it is not possible that the modified problem is infeasible. Modifying one constraint as described will result in an unbounded solution. d. No, it is not possible that the modified problem is infeasible. Modifying one constraint as described has no effect on the feasible region of the other constraints. e. No, it is not possible that the modified problem is infeasible. Modifying one constraint as described will result in alternate optimal solutions.
Answer:
a. Yes, it is possible that the modified problem is infeasible. Modifying one constraint as described could cause the regions to produce alternate optimal solutions.
Explanation:
Megan Company has fixed costs of $747,040. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow:
Product Selling Price Variable Cost per Unit Contribution Margin per Unit
Yankee $310 $140 $170
Zoro 500 340 160
The sales mix for products Yankee and Zoro is 10% and 90%, respectively. Determine the break-even point in units of Yankee and Zoro.
Answer:
Yankee= 464
Zoro= 4,176
Explanation:
To calculate the break-even point in units, we need to use the following formula:
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)
Weighted average contribution margin= 170*0.1 + 160*0.9
Weighted average contribution margin= $161
Break-even point (units)= 747,040 / 161
Break-even point (units)= 4,640 units
Now, for each product:
Yankee= 4,640*0.1= 464
Zoro= 4,640*0.9= 4,176
Degelman Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2014, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $22,600, direct labor $13,560, and manufacturing overhead $18,080. As of January 1, Job No. 49 had been completed at a cost of $101,700 and was part of finished goods inventory. There was a $16,950 balance in the Raw Materials Inventory account.
During the month of January, Deglman Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $137,860 and $178,540, respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $101,700 on account.
2. Incurred factory labor costs of $79,100. Of this amount $18,080 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $19,210; indirect labor $22,600; depreciation expense on equipment $21,470; and various other manufacturing overhead costs on account $18,080.
4. Assigned direct materials and direct labor to jobs as follows.
Job No. Direct Materials Direct Labor
50 $11,300 $5,650
51 44,070 28,250
52 33,900 22,600
1. Calculate the pre-determined overhead rate for 2014, assuming Degelman Company estimates total manufacturing overhead costs of $1,107,400, direct labor costs of $791,000, and direct labor hours of 22,600 for the year.
2. Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January.
3. Prepare the journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a).
4. Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month.
5. Prepare the journal entry (or entries) to record the sale of any job(s) during the month. What is the balance in the Finished Goods Inventory account at the end of the month? What is the amount of over- or underapplied overhead?
Answer:
Degelman Company
1. Predetermined overhead rate for 2014 = Total manufacturing overhead/total direct labor costs
= $81,360/$79,100
= $1.03 per direct labor cost
2. Journal Entries to record the purchase of raw materials, factory labor costs incurred, and the manufacturing overhead costs:
Debit Raw materials $101,700
Credit Accounts Payable $101,700
To record the purchase of raw materials in January, 2014.
Debit Factory labor $79,100
Credit Wages & Salaries Expense $79,100
To Wages Expense to factory labor.
Debit Manufacturing overhead $81,360
Credit Raw materials $19,210
Credit Wages & Salaries expense $22,600
Credit Depreciation expense on equipment $21,470
Credit Accounts Payable $18,080
To record manufacturing overhead costs.
To record manufacturing overhead costs
3a. Debit Job 50 $11,300
Debit Job 51 $44,070
Debit Job 52 $33,900
Credit Raw materials $89,270
To assign raw materials to Jobs.
3b. Debit Job 50 $5,650
Debit Job 51 $28,200
Debit Job 52 $22,600
Credit Factory labor $56,450
To assign direct labor to Jobs.
3c. Debit Job 50 $5,820
Debit Job 51 $29,046
Debit Job 52 $23,278
Credit Manufacturing overhead $58,144
To assign manufacturing overheads to Jobs using the predetermined rate.
4. Job 50 Job 51
Beginning balance $54,240
Raw materials $11,300 $44,070
Direct labor $5,650 28,200
Overhead $5,820 29,046
Total costs $77,010 $101,316
Journal Entries:
Debit Finished Goods Inventory $178,326
Credit Job 50 $77,010
Credit Job 51 $101,316
To record the completion of Jobs 50 and 51.
5. Debit Cost of Goods Sold $178,710
Credit Finished Goods Inventory $178,710
To record the cost of goods sold (Jobs 49 and 50)
Debit Cash (Job 49) $137,860
Debit Accounts Receivable (Job 50) $178,540
Credit Sales Revenue $316,400
To record the sale of Jobs 49 and 50.
5b. Balance in the Finished Goods Inventory account is: $181,094
Job 51 Job 52
Raw materials $44,070 $33,900
Direct labor $28,200 22,600
Overhead $29,046 23,278
Total costs $101,316 $79,778
5c. Over- or underapplied overhead:
Actual overhead costs incurred $81,360
Applied overhead costs $58,144
Underapplied overhead costs $23,216
Explanation:
a) Data and Calculations:
Jan. 1, 2014: Job 50 in process
Job 50 costs:
Direct materials $22,600
Direct labor $13,560
Manufacturing overhead $18,080
Balance = $54,240
Job 49 completed at a cost of $101,700
Raw Materials Inventory = $16,950
Started production on Jobs 51 and 52
Completed Jobs 50 and 51
Sales:
Job 49 = $137,860
Job 50 = $178,540 sold on account
Additional events:
1. Purchase of raw materials $101,700 on account
2. Incurred Factory labor = $79,100
Employer payroll taxes 18,080
Net Factory labor = $61,020
3. Incurred manufacturing overhead:
Indirect materials $19,210
Indirect labor $22,600
Depreciation expense on equipment $21,470
Other manufacturing overhead costs $18,080 on account
Total manufacturing overhead costs $81,360
4. Assigned direct materials, direct labor, and overhead to Jobs:
Job No. Direct Materials Direct Labor Manufacturing Overhead Total
50 $11,300 $5,650 $5,820 ($1.03 * $5,650)
51 44,070 28,200 $29,046 ($1.03 * $28,200)
52 33,900 22,600 $23,278 ( ($1.03 * $22,600)
Total $89,270 $56,450 $58,144
On January 1, Skysong, Inc. had 90,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred.
Apr1. Issued 21,000 additional shares of common stock for $19 per share.
June15. Declared a cash dividend of $1 per share to stockholders of record on June 30.
July10. Paid the $1 cash dividend. Dec.1Issued 2,500 additional shares of common stock for $18 per share.
December15. Declared a cash dividend on outstanding shares of $4.30 per share to stockholders of record on December 31.
Prepare the entries, on each of the three dividend dates. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.
Date Account Titles and Explanation Debit Credit
June15
July10
Dec15
Answer:
No. of shares outstanding = A
Par Value (at $5) = B
Additional Paid in capital in excess of Par = C
Dividend = D
A B(A*$5) C D
Jan 1 balance 90,500 $452,500 $0
shares
Add: Issued Apr 1 21,000 $105,000 $294000
shares
June 30 Balance 111,500 $557,500 $294,000 $111,500
shares [111,500 shares x $1]
Add: Dec 1 Issued 2,500 shares $12,500 $32,500
Dec 31 Balance 114,000 $570,000 $326,500 $490,200
[114,000 shares x $4.3]
Journal Entries based on above
Date Accounts Titles Debit Credit
15-Jun Dividends $111,500
Dividends payable $111,500
10-Jun Cash $111,500
Dividends $111,500
15-Dec Dividends $490,200
Dividends payable $490,200
Emily, who is single, has been offered a position as a city landscape consultant. The position pays $153,800 in cash wages. Assume Emily has no dependents. Emily deducts the standard deduction instead of itemized deductions, and she is not eligible for the qualified business income deduction. (Use the tax rate schedules.) (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Required:
a. What is the amount of Emily’s after-tax compensation (ignore payroll taxes) and his income tax liability?
b. Suppose Rick receives a competing job offer of $102,500 in cash compensation and nontaxable (excluded) benefits worth $4,900.
c. What is the amount of Emily’s after-tax compensation (ignore payroll taxes) and his income tax liability?
Answer:
a) using the 2020 tax schedule:
Emily's taxable income = $153,800 - $12,200 = $141,600
Emily's tax liability = $14,605.50 + [($141,600 - $85,525) x 24%] = $28,063.50
Emily's after tax compensation = $153,800 - $28,063.50 = $125,736.50
b and c ) if Emily (or Rick?) get a $102,500 offer that includes benefits worth $4,900 that are not taxable:
taxable income = $102,500 - $12,200 = $90,300
tax liability = $14,605.50 + [($90,300 - $85,525) x 24%] = $15,751.50
after tax compensation = $102,500 - $15,751.50 + $4,900 = $91,648.50
It can be deduced that the amount of Emily’s after-tax compensation will be $135784.50.
How to calculate the after-tax compensationGross income = $153800
AGI deduction = 0
Adjusted gross income = $153800
Standard deduction = $12400
Taxable income = $141400
Income tax liability= $28015.50
After tax compensation = $135784.50
When Rick receives a competing job offer of $102,500 in cash compensation and nontaxable benefits worth $4,900, the amount of Emily’s after-tax compensation will be:
Gross income = $144000
AGI deduction = 0
Adjusted gross income = $144000
Standard deduction = $12400
Taxable income = $131600
Income tax liability= $25663.50
After tax compensation = $128136.50
Learn more about tax on:
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10 characteristics of using ideal chemical sanitizer
Answer:
Characteristics Steam Chlorine Iodophor QUATS* AAS**
Gram-positive bacteria Best Good Good Good Good
Gram-negative bacteria Best Good Good Poor Fair
Spores Good Good Poor Fair Fair
Yeasts and molds Best Good Good Fair Poor
Bacteriophage Best Good Fair Poor Poor
Optimum pH N/A 4-5 3 10 2-2.5
Penetration Poor Good Poor Good Excellent
Corrosive No Yes Slight No Slight
Irritation N/A Yes No No Yes
Hard water affects No No Slight Yes/No Slight
Shelf-life N/A Short Long Long Long
Organic matter affects No Yes Slight Low Slight
Stable in 140°F H2O N/A No No Yes Yes
Leaves residue No No Yes Yes Yes
Flavor/odor No Yes Yes No No
Ease of use Poor Excellent Excellent Foam Foam
Use with detergent No No/yes Yes No/yes No
Maximum use by FDA/USDA None 200 ppm*** 25 ppm**** 200 ppm***** 200-400 ppm
Cost High Low Moderate Moderate Moderate
Where to use Equipment Equipment, floors, walls Rubber, plastic crates Aluminum, walls, floors Stainless steel, CIP
Monty Inc. produces organic cranberry juice from cranberries it farmed. Unfortunately, it has been a bad year for cranberries because of severe cold weather. Monty has only 10,000 litres of juice. It usually sells 15,000 litres at $3.10 per litre. The variable costs of farming the cranberries are $0.90 per litre. Monty has loyal customers, but its managers are worried that the company will lose customers if it does not have juice available for sale when people stop by the farm. A neighbour is willing to sell 5,000 litres of extra cranberry juice at $3.00 per litre.
Required:
Using the general decision rule, what is the most per litre that Riverbed's managers would be willing to pay for additional juice?
Answer:
$3.10 per litre
Explanation:
Riverbed will agree to buy the additional cranberries for at most $3.10 per litre since this is their normal selling price. They can buy at this price and accept to not make profit since they are out to satisfy customers now and are not necessarily looking to make profit.
Therefore cost of purchase of extra cranberries would equal selling price at maximum
Bill and Bob are both 25 years old today. Each wants to begin saving for his retirement. Both plan on contributing a fixed amount each year into brokerage accounts that have annual returns of 12 percent. Both plan on retiring at age 65, 40 years from today, and both want to have $3 million saved by age 65. The only difference is that Bill wants to begin saving today, whereas Bob wants to begin saving one year from today. In other words, Bill plans to make 41 total contributions (t = 1, 2,.. 40).
How much more than Bill will Bob need to save each year in order to accumulate the same amount as Bill does by age 65?
Please find attached full question
Answer and Explanation:
Answer and explanation attached
The payroll of YellowCard Company for September 2013 is as follows.
Total payroll was $464,000, of which $118,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment tax) was $418,000. Income taxes in the amount of $86,000 were withheld, as was $8,500 in union dues. The state unemployment tax is 3.5%, but Sandhill Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee’s wages to $128,400 and 1.45% in excess of $128,400. No employee for Sandhill makes more than $135,000. The federal unemployment tax rate is 0.8% after state credit.
Required:
Prepare the necessary journal entries if:
a. The wages and salaries paid.
b. The employer payroll taxes are recorded separately.
Answer:
a. FICA tax is 7.65% on an employee’s wages to $128,400 and 1.45% in excess of $128,400.
FICA Tax payable = [(464,000 - 118,000) * 7.65%] + (118,000 * 1.45%)
= $28,180
DR Wages and Expenses $464,000
CR Withholding Taxes Payable $86,000
FICA Tax $28,180
Union Dues $8,500
Cash $341,320
b. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment tax) was $418,000.
Federal Unemployment Tax = (464,000 - 418,000) * 0.8% = $368
State Unemployment tax = (464,000 - 418,000) * (3.5% - 2.3%) = $552
DR Payroll Tax expense $29,100
CR FICA Tax Payable $28,180
Federal Unemployment Tax $368
State Unemployment Tax $552
Griffin Service Company, Inc., was organized by Bennett Griffin and five other investors. The following activities occurred during the year:
a. Received $77,000 cash from the six investors; each investor was issued 9,100 shares of common stock with a par value of $0.10 per share.
b. Purchased equipment for use in the business at a cost of $25,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months).
c. Signed an agreement with a cleaning service to pay $190 per week for cleaning the corporate offices next year.
d. Received an additional contribution from investors who provided $3,700 in cash and land valued at $22,000 in exchange for 1,700 shares of stock in the company.
e. Lent $3,200 to one of the investors, who signed a note due in six months.
f. Bennett Griffin borrowed $7,700 for personal use from a local bank, signing a one-year note.
Required:
For each transactions, record the effects of the transaction in the appropriate T-accounts.
Answer:
Griffin Service Company, Inc.
T-accounts:
Cash Account
Account Title Debit Credit
Common Stock $5,460
Paid-in Capital In Excess $71,540
Equipment $6,250
Paid-in Capital In Excess $3,700
Notes Receivable $3,200
Common Stock
Account Title Debit Credit
Cash $5,460
Land 170
Paid-in Capital In Excess
Account Title Debit Credit
Cash $71,540
Cash $3,700
Land $21,830
Equipment
Account Title Debit Credit
Cash $6,250
Notes Payable $18,750
Notes Payable
Account Title Debit Credit
Equipment $18,750
Notes Receivable
Account Title Debit Credit
Cash $3,200
Explanation:
Journal Entries:
a. Debit Cash Account $77,000
Credit Common Stock $5,460
Credit Paid-in Capital In Excess $71,540
To record the issue of 9,100 shares with a par value of $0.10 to each investor.
b. Debit Equipment $25,000
Credit Cash $6,250
Credit Notes Payable $18,750
To record the purchase of equipment with cash and note payable.
c. No journal entry required
d. Debit Cash $3,700
Debit Land $22,000
Credit Common Stock $170
Credit Paid-in Capital In Excess $25,530
To record the receipt of cash and land for 1,700 shares.
e. Debit Notes Receivable $3,200
Credit Cash Account $3,200
To record the lending of money to one of the investors.
f. No journal entry required.
Transactions c and f do not require journal entries. Services for c will be received next year. The transaction in f does not affect the company as a legal entity.
Golden Eagle Company prepares monthly financial statements for its bank. The November 30 adjusted trial balance includes the following account information:
November 30
Debit Credit
Supplies $1,000
Prepaid Insurance 4,000
Salaries Payable $9,000
Deferred Revenue 1,000
The following information is known for the month of December:
1. Purchases of supplies during December total $2,500.
2. Supplies on hand at the end of December equal $2,500.
3. No insurance payments are made in December.
4. Insurance cost is $1,000 per month.
5. November salaries payable of $9,000 were paid to employees in December.
6. Additional salaries for December owed at the end of the year are $14,000.
On November 1, a tenant paid Golden Eagle $1,500 in advance rent for the period November through January, and Deferred Revenue was credited for the entire amount.
Required:
Complete 4 adjusting entries on December 31st. There should be an adjusting entry for each of the following accounts; supplies, prepaid insurance, salaries payable, and unearned revenue.
Answer:
Given Below
Explanation:
Golden Eagle Company
General Journal
Adjusting Entries December 31st
Sr. No Particulars Debit Credit
1. Supplies Expense $ 1000 Dr.
Supplies Account $ 1000 Cr.
The supplies that were at the end of Nov have been used and new supplies purchased are still on hand.
2. Insurance Expense $ 1000 Dr.
Prepaid Insurance 1,000 Cr.
Insurance cost is $1,000 per month. Insurance of $1000 expired during the month of December.
3. Salaries Expense $ 14000 Dr.
Salaries Payable $ 14000 Cr.
Salaries for December owed for December are $14,000.
4. Unearned Revenue $ 500 Dr.
Revenue Earned $ 500 Cr.
Defered Revenue earned at the end of December.
Savant Homes, Inc., is a custom home designer and builder. Using what it called the Anders Plan, Savant built a model house in Windsor, Colorado. This was a ranch house with two bedrooms on one side and a master suite on the other, separated by a combined family room, dining room, and kitchen. Ron and Tammie Wagner toured the Savant house. The same month, the Wagners hired builder Douglas Collins and his firm, Douglas Consulting, to build a house for them. After it was built, Savant filed a lawsuit in a federal district court against Collins for copyright infringement, alleging that the builder had copied the Anders Plan in the design and construction of the Wagner house. Collins showed that the Anders Plan consisted of standard elements and standard arrangements of elements. In these circumstances, has infringement occurred? Explain.
Answer and Explanation:
There is no copyright infringement here. Savant homes had not taken a copyright protection for the design prior to this time. Also in the case it was found that the design is not in fact a unique design by Savant homes as it is used widely and was common before savant homes used it. And so it was a dummy model for everyone to copy from. Therefore the infringement was considered invalid as there was no ground for savant homes to claim it as am intellectual property
Once a week, Smith purchases a six-pack of cola and puts it in his refrigerator for his two children. He invariably discovers that all six cans are gone on the first day. Jones also purchases a six-pack of cola once a week for his two children, but unlike Smith, he tells them that each may drink no more than three cans. If the children use cost-benefit analysis each time they decide whether to drink a can of cola, explain why the cola lasts much longer at Jones's house than at Smith's.
Answer:
Jones purchases a six-pack of cola once a week for his two children, but unlike Smith, he tells them that each may drink no more than three cans.
Explanation:
Cost-benefit analysis is defined as a method to estimate all the costs involved and possible profits that can be achieved in a business opportunity.
Jones purchases a six-pack of cola once a week for his two children, but unlike Smith, he tells them that each may drink no more than three cans.
So, at Smith's house, there's always a chance that one of the siblings will drink the cola before the other.
Therefore,
cola can lasts much longer at Jones's house than at Smith's.
A professor decides to run an experiment to measure the effect of time pressure on final exam scores. He gives each of the 400 students in her course the same final exam, but some students have 90 minutes to complete the exam, while others have 120 minutes. Each student is randomly assigned one of the examination times, based on the flip of a coin. Let Y; denote the number of points scored on the exam by the ith student (0
(a) Explain what the term ui represents. Why will different students have different values of ui?
(b) Explain why E(ui|X;) = 0 for this regression model.
(c) Are the other assumptions among SLR.1-SLR.4 satisfied? Explain why.
(d) The estimated model is Y; = 49+0.24X;.
i. Based on the estimated model, predict the average score of students given 90 minutes. Repeat for 120 minutes and 150 minutes.
ii. Compute the average predicted gain in score for a student who is given an additional 10 minutes on the exam.
Answer:
Kindly check explanation
Explanation:
The regression model :
Y; = Bo + BiX; + ui
ui in the regression model represents other underlying factors aside the model variables which may affect the final exam score of student. These factor will almost likely vary from student to student and may include factors such as ; rate of assimilation, natural brilliance, psychological factors and so on.
E(ui|X) = 0 ; because ui and Xi are independent.
The estimated model is Y; = 49+0.24X;.
i. Based on the estimated model, predict the average score of students given 90 minutes.
X = 90 minutes
Y; = 49+0.24(90)
Y = 70.6
Repeat for 120 minutes and 150 minutes.
X = 120 minutes
Y; = 49+0.24(120)
Y = 77.8
X = 150 minutes
Y; = 49+0.24(150)
Y = 85
ii. Compute the average predicted gain in score for a student who is given an additional 10 minutes on the exam.
Gain in score for student Given additional 10 minutes :
Gain in score for X = 10
0.24X
= 0.24(10)
= 2.4
Beaverton Lumber purchased milling equipment for $51,000. In addition to the purchase price, Beaverton made the following expenditures: freight, $3,100; installation, $4,600; testing, $3,600; personal property tax on the equipment for the first year, $1,300. What is the initial cost of the equipment
Answer:
$62,300
Explanation:
Calculation for the initial cost of the equipment
Initial cost of the equipment:
Purchase price$51,000
Freight $3,100
Installation $4,600
Testing $3,600
Total cost $62,300
Therefore the initial cost of the equipment will be $62,300
Rhianna makes edgy women's custom t-shirts. Rhianna started her business this year, and she uses a normal costing system.The company has two direct cost pools, materials and labor, and one indirect cost pool, overhead. Overhead is charged to jobs on the basis of direct labor cost. The following information is available for the most recent year: Budgeted direct labor costs $ Budgeted overhead costs $ Costs of material actually used $ Actual direct labor costs $ Actual overhead costs $ Rhianna had two jobs in process on December 31 of this year Jobs 75 and 76. There is no finished goods inventory because jobs are sent to customers as soon as they are completed. Direct costs associated with each job are below:________. Job 75 Job 76 Direct materials $ $ Direct labor $ $ Based on this data, the predetermined overhead rate is $ of manufacturing overhead for each dollar of direct labor costs. Required: Round your answer to the nearest dollar. Do not include %, $, etc.in your response. Using this overhead allocation rate and the data above, calculate:______ 1. The total manufacturing cost for Job 75. _____2. The total manufacturing cost for Job 76. ______
Find full question attached
Answer and Explanation:
1. Total manufacturing cost for job 75 and job 76= manufacturing cost for job 75 + manufacturing cost for job 76( being work in progress at end of the year)
= $(35725+49656)
=$85381
2. There is no cost of goods sold since there was no finished products and therefore no sales
Cash register on January 1 for $5,400. This register has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the second-year of its useful life using the double-declining-balance method
Answer:
$800
Explanation:
Double-declining-balance method is also known as reducing balance method.
Depreciation Expense = 2 × SLDP × BVSLDP
Where,
SLDP = 100 ÷ Number of Useful Life
= 100 ÷ 10
= 10 %
Year 1
Depreciation Expense = 2×10%×($5,400 - $400)
= $,1000
Year 2
Depreciation Expense = 2×10%×($5,400 - $400- $,1000)
= $800
1. Consumer markets consist of
individuals that buy goods and services to resell.
companies that produce products to sell to consumers.
households that buy goods for personal consumption.
government agencies that buy goods to produce public services.
(50 points) (GradPoint)
Given the following owner’s income and expense estimates for an apartment property, formulate a reconstructed operat-ing statement. The building consists of 10 units that could rent for $550 per month each. Owner’s Income Statement Rental income (last year) Less: Operating & Capital Expenses Power Heat Janitor Water Maintenance Capital Expenditures Management Depreciation (tax) Mortgage payments $ 2,200 1,700 4,600 3,700 4,800 2,800 3,000 5,000 6,300
Estimating vacancy and collection losses at 5 percent of potential gross income, reconstruct the operating state-ment to obtain an estimate of NOI. Assume an above-line treatment of CAPX. Remember, there may be items in the owner’s statement that should not be included in the recon-structed operating statement. Using the NOI and an Ro of 11.0 percent, calculate the property’s indicate market value. Round your answer to the nearest $500.
Answer:
$363,000
Explanation:
Calculation for the property’s indicate market value.
First step
Operating Statement
PGI: $66,000
(10 units x $550 x 12 month )
Less: Vacancy Loss(3,300)
(5%*66,000)
EGI:62,700
Less: Operating Expenses
Power$2,200
Heat1,700
Janitor4,600
Water3,700
Maintenance4,800
Management3,000
Reserve for CAPX2,800
Total Operating Expenses$22,800
Net Operating Income$39,900
(62,700-22,800)
Second step is to find the property’s indicate market value.
Using this formula
Market Value=NOI/ Ro
Let plug in the formula
Market Value=$39,900/11.0%
Market Value=$363,000
Therefore the property’s indicate market value is
$363,000