On December 1, Bruney Company introduces a new product that includes a one-year warranty on parts. In December, 1,000 units are sold. Management believes that 5% of the units will be defective and that the average warranty costs will be $90 per unit.

Required:
Prepare the adjusting entry at December 31 to accrue the estimated warranty cost, assuming no warranty claims have been honored to date.

Answer:

Dr Warranty Expense 4,500

Cr Warranty liability 4,500

Explanation:

Preparation of the journal entry at December 31

Based on the information given we were told that the company new product 1,000 units were sold in December in which the Management of the company think that 5% of the units sold will be damaged and that the warranty costs will be the amount of $90 per unit which means that the adjusting journal entry at December 31 in order to accrue the estimated warranty cost will be recorded as:

Dr Warranty Expense 4,500

(1,000x 90x 5%)

Cr Warranty liability 4,500

Tim, a cash-basis taxpayer, incorporates his sole proprietorship. He transfers the following items to newly created Wren Corporation:


Adjusted Basis Fair Market Value
Cash $10,000 $10,000
Building 100,000 160,000
Mortgage payable (secured by the building and held for 5 years) 120,000 120,000

With respect to this transaction, Select one:

a. Wren Corporation's basis in the building is $100,000.
b. Tim has no recognized gain.
c. Tim has a recognized gain of $20,000.
d. Tim has a recognized gain of $10,000.

Simon is a sales representative with McKesson who works with independent and chain drug stores to provide branded and private label over-the-counter medications, as well as a host of other supplies. Simon can match his customers' requirements to his broad product mix, and he also provides insights about what's selling in the marketplace so that store managers can make decisions about the allocation of shelf space. The approach is working, and Simon has been able to achieve his sales goals while also earning high customer satisfaction scores from his customer accounts. Which marketing management philosophy best applies to McKesson?

Suppose that France and Austria both produce jeans and stained glass. France's opportunity cost of producing a pane of stained glass is 3 pairs of jeans while Austria's opportunity cost of producing a pane of stained glass is 11 pairs of jeans. By comparing the opportunity cost of producing stained glass in the two countries, you can tell that has a comparative advantage in the production of stained glass and has a comparative advantage in the production of jeans. Suppose that France and Austria consider trading stained glass and jeans with each other. France can gain from specialization and trade as long as it receives more than of jeans for each pane of stained glass it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than of stained glass for each pair of jeans it exports to France.Based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of jeans) would allow both Austria and France to gain from trade?
a. 4 pairs of jeans per pane of stained glass
b. 1 pair of jeans per pane of stained glass
c. 11 pairs of jeans per pane of stained glass
d. 7 pairs of jeans per pane of stained glass

On April 1, Sangvikar Company had the following balances in its inventory accounts:

Materials Inventory $12,720
Work-in-Process Inventory 21,320
Finished Goods Inventory 8,700

Work-in-process inventory is made up of three jobs with the following costs:

Job 114 Job 115 Job 116
Direct materials $2,774 $2,640 $3,650
Direct labor 1,800 1,560 4,300
Applied overhead 1,080 936 2,580

During April, Sangvikar experienced the transactions listed below.

a. Materials purchased on account, $30,000.
b. Materials requisitioned: Job 114, $16,500; Job 115, $12,400; and Job 116, $5,000.
c. Job tickets were collected and summarized: Job 114, 150 hours at $15 per hour; Job 115, 220 hours at $17 per hour; and Job 116, 80 hours at $18 per hour.
d. Overhead is applied on the basis of direct labor cost.
e. Actual overhead was $4,765.
f. Job 115 was completed and transferred to the finished goods warehouse.
g. (1) Job 115 was shipped, and (2) the customer was billed for 140 percent of the cost.

Required:
Prepare journal entries for the April transactions.

Select the examples that best demonstrate likely tasks for Professional Support Services workers. Check all than
apply.

O Leon gives psychological tests to students and assesses their results.

O Helen sets goals, and creates rules and policies for a school.

O Alexander helps high-school students decide which classes to take.

O Ebony helps children find books and magazines in a school library.

O Kyle teaches a kindergarten class that prepares students for first grade.

O Francisca is a parent who donates money to a school program.

Makers Corp. had additions to retained earnings for the year just ended of $174,000. The firm paid out $190,000 in cash dividends, and it has ending total equity of $4.95 million. The company currently has 140,000 shares of common stock outstanding.

a. What are earnings per share?

b. What are dividends per share ?

c. What is the book value per share?

d. If the stock currently sells for $86 per share, what is the market-to-book ratio?

e. What is the price-earnings ratio?

f. If the company had sales of $4.69 million, what is the price-sales ratio?

In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 300 towels were in process and were 60 percent complete. The costs incurred were $576.

During the month, costs of $10,800 were incurred, 2,700 towels were started, and 150 towels were still in process at the end of the month. At the end of the month, the towels were 20 percent complete.

Required:
a. Prepare a production cost report; the company uses FIFO process costing.
b. Show the flow of costs through T-accounts.

Governments most often influence market conditions by:
A. setting up natural monopolies for essential services.
B. increasing barriers to entry in pure competition markets.
C. encouraging price fixing by corporations in an oligopoly.
D. paying research and development costs for corporations

In its first month of operations, Vaughn Manufacturing made three purchases of merchandise in the following sequence:
(1) 340 units at $5,
(2) 440 units at $7, and
(3) 540 units at $8.
Assuming there are 240 units on hand at the end of the period, compute the cost of the ending inventory under
(a) the FIFO method and
(b) the LIFO method.
Vaughn Manufacturing uses a periodic inventory system.

AAA Inc. has a current debt-to-equity ratio of 3, and is considering expanding its operations into a new industry. Firms in this new industry face a different set of risks than AAA Inc. However, the executives at AAA Inc. observe that a company in the new industry (BBB Inc.) has a cost of equity of 14%, a cost of debt of 7%, and a debt-to-value ratio of 40%. AAA Inc. plans to finance its expansion into the new industry with 50% debt and 50% equity. The cost of debt for AAA Inc. is also 7%, and the corporate tax rate is 25%. Solve for the discount rate that AAA Inc. should use when evaluating whether to go forward with the expansion.

The Rivera's owned and operated a small pharmacy in New York. They spoke to Hyman a representative of CVS Pharmacy,inc. Hyman told them that for 25,000 CVS would build them a store and stock it for them. The Rivera's gave up their store and bought a lot on which CVS was to build the store. CVS then told them the price went up to 35,000. The Rivera's borrowed the extra money, but then CVS told them the cost would be 50,000. Negotiations broke off and the Rivera's sued.
(1) Is there a contract?
(2) and if there is not is there another way the Rivera's can recover any money?

Cool Car Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2014 are as follows:
The selling price per vehicle is $27000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs.
Requirements:
Prepare April and May 2014 income statements for Cool Car Motors under (a) variable costing and (b) absorption costing.
Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing.
Unit data April May
Beginning Inventory 0 100
Production 500 425
Sales 400 495
Variable Costs
Manufacturing cost/unit produced $11000 $11000
Operating (marketing) cost/unit sold 3200 3200
Fixed costs
Manufacturing costs $2000000 $2000000
Operating (marketing) costs 550000 550000

Which description of the parts of the compound interest expression is correct? P(1 + )nt P = principal; r = number of times interest is compounded per year; n = annual interest rate; t = time in years P = principal; r = annual interest rate; n = number of times interest is compounded per year; t = time in number of compounding periods P = principal; r = monthly interest rate; n = number of times interest is compounded per year; t = time in number of compounding periods P = principal; r = annual interest rate; n = number of times interest is compounded per year; t = time in years

Workman Software has 11.2 percent coupon bonds on the market with 20 years to maturity. The bonds make semiannual payments and currently sell for 108.4 percent of par. a. What is the current yield on the bonds

Tom Zopf owns and manages a computer repair service, which had the following trial balance on December 31, 2016 (the end of its fiscal year).TABLETTE REPAIR SERVICE, INC.Trial BalanceDecember 31, 2016 Debit CreditCash $ 7,900 Accounts Receivable 15,700 Supplies 12,500 Prepaid Rent 3,200 Equipment 20,300 Accounts Payable $19,000Common Stock 30,100Retained Earnings 10,500$59,600 $59,600Summarized transactions for January 2017 were as follows:1. Advertising costs, paid in cash, $1,1702. Additional supplies acquired on account $3,6703. Miscellaneous expenses, paid in cash, $1,7904. Cash collected from customers in payment of accounts receivable $12,1605. Cash paid to creditors for accounts payable due $12,2406. Repair services performed during January: for cash $6,870; on account $8,6707. Wages for January, paid in cash, $2,2308. Dividends during January were $2,690Open T-accounts for each of the accounts listed in the trial balance, and enter the opening balances for 2017.

Income Statement
Net sales 7,600
Cost of goods sold 6,715
Depreciation 200
Earnings before interest and taxes 685
Interest paid 20
Taxable Income 666
Taxes 232
Net income 434
Dividends 195
Balance Sheet
Cash 2,150 Accounts payable 1,550
Accounts rec. 830 Long-term debt 260
Inventory 2,600 Common stock 2,400
Total 5,580 Retained earnings 4,480
Net fixed assets 3,110
Total assets 8,690 Total liabilities and
equity 8,640
If the Nitro Tap Company maintains a constant debt-to-equity ratio, what growth rate can it maintain? Assume no additional external equity financing is available.

A taxpayer purchases real estate rental property for $150,000. She pays $25,000 cash and obtains a mortgage for $125,000. She pays closing costs of $8,000, which includes $4,000 in points on the mortgage and $4,000 for closing fees and title costs. The basis in the property is:

a. $33,000 depreciation , $125,000 amortization
b. $158,000 depreciation only
c. $154,000 depreciation, $4,000 amortization
d. $150,000 depreciation, $8,000 Amortization

Suppose that, in a competitive market without government regulations, the equilibrium price of hamburgers is $7 each. Indicate the followings whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.

a. The government has instituted a legal minimum price of $5 each for hamburgers.
b. The government prohibits fast-food restaurants from selling hamburgers for more than $5 each.
c. Due to new regulations, fast-food restaurants that would like to pay better wages in order to hire more workers are prohibited from doing so.

Suppose the economy is characterized by the following behavioral​ equations:

C​ = c0​ + c1YD
YD​ = Y-T
I​ = b0​ + b1Y

Government spending and taxes are constant. Note that investment increases with output.
c0
is autonomous​ consumption,
c1 is the propensity to​ consume, and b0 is business confidence.
Solve for equilibrium output.

a. Y= ________
b. What is the value of the spending​ multiplier?  

What's your tikto I will follow

The March 29, 2012, edition of the Wall Street Journal Online contains an article by Miguel Bustillo entitled, "Best Buy Forced to Rethink Big Box." The article explains how the 1,100 giant stores, which enabled Best Buy to obtain its position as the largest retailer of electronics, are now reducing the company’s profitability and even threatening its survival. The problem is that many customers go to Best Buy stores to see items but then buy them for less from online retailers. As a result, Best Buy recently announced that it would close 50 stores and switch to smaller stores. However, some analysts think that these changes are not big enough.
Suppose the following data were extracted from the 2017 and 2012 annual reports of Best Buy. (All amounts are in millions).
2017 2016 2012 2011
Total assets at year-end $17,729 $18,390 $11,880 $10,234
Net sales 50,308 30,768
Net income 1,301 1,143
Using the data above.
Compute the profit margin, asset turnover, and return on assets for 2017 and 2012.

Steve’s Lumber Company features a large selection of materials for flooring, decks, moldings, windows, siding and roofing. It is a small, but profitable family business that is looking to expand. The prices of lumber and other building materials are constantly changing. When a customer places an order, typically inquiring about the price on pre-finished wood flooring, sales representatives consult the catalogue, and a manual price sheet and then call the supplier for the most recent price. The supplier in turn uses a manual price sheet, which has been updated each day. Often the supplier must call back Steve’s reps because the company does not have the newest pricing information immediately on hand. Of course, the customer’s order is delayed until a firm price is determined. Steve has hired you to assess the business impact of the situation.
1. What can be done for them to make this process more efficient.
2. Identify 3 metrics that could be put in place to measure the impact of the existing process on operational efficiency.
3. Explain how information systems could support those changes. Discuss what data the systems should capture and what decisions the system could improve.

Complete the Transaction" Worksheet: On the form provided, identify the accounts affected by each transaction and the amount of increase or decrease in each account. Make sure the accounting equation is in balance after each transaction.
1. Jan Swift, owner, deposited $30,000 in the business checking account.
2. The owner transferred to the business a desk and chair valued at $700.
3. WordService issued a check for $4,000 for the purchase of a computer.
4. The business bought office furniture on account for $5,000 from Eastern Furniture.
5. The desk and chair previously transferred to the business by the owner were sold on account for $700.
6. WordService wrote a check for $2,000 in partial payment of the amount owed to Eastern Furniture Company.
Use the Excel spreadsheet form for posting the transactions.
Determine the effects of the transations
Assets Liabilities + Owner's Equity Jan Swift, Capital Trans Cash in Bank + Accounts Receivable + Computer Equipment + Office Furniture Accounts Payable + + 2 3 4 5 6 Bal. +

Developing Business Writing TechniquesYou can improve your message by using mechanical emphasis, parallelism, voice, and well-placed descriptions.One way to achieve emphasis is through mechanical devices.Complete the following sentence. —used sparingly—can be an effective way to emphasize explanatory information.You can also improve your messages through stylistic emphasis in sentnce structure and word choice. Which of the following stylistic devices can be used to achieve emphasis? Check all that apply.Position important ideas first or last in a sentence.Use complex sentence patterns.Use general terms.Label descriptive modifiers.Use vivid words.In some cases it is necessary to de-emphasize an idea, such as bad nes. Does the following selection emphasize or de-emphasize the bad news?While we are unable to renew your contract for the upcoming year, we hope to have the position reposted once the funds are available.EmphasizeDe-emphasizeWhen you compose messages, you may use the active or passive voiceto convey meaning. Most business messages use the active voice. Which of the following are instances when you would use the passive voice in a business message? Check all that apply.To emphasize an action instead of the recipient of an actionTo avoid beginning the sentence with itTo create confusion for your readerTo conceal the doer of an actionDoes the following sentence use the active or passive voice?The Lifetime Achievement Award was presented to Christina Balian.PassiveActiveParallel sentences are balanced and easy for readers to understand. Choose which sentence has the better parallel structure.If you write well, speak well, and use good interpersonal skills, you will do well in this corporation.If you write well, speak well, and are using good interpersonal skills, you will do well in this corporation.Choose the best revision to the following sentence.Teagan saw the recommendations flipping through the report.Flipping through the report, Teagan saw the recommendations.Teagan saw the recommendations, flipping through the report.Effective business writers use various techniques to improve their messages. How could the following selection be improved?Because of the snowstorm, the roads are closed and the trains aren’t running, the office will be closed today.The problem in this ineffective selection is:Passive voiceNot emphasizing important ideasSentence length/comprehension rateWriters should use words carefully and construct sentences skillfully to emphasize main ideas and de-emphasize minor ideas.Choose the best responseWhich of the following emphasizes the main idea?We have now successfully concluded our interview process and you have passed.Congratulations! We would like to offer you the position of senior analyst.

On December 31, 2021, Interlink Communications issued 5% stated rate bonds with a face amount of $113 million. The bonds mature on December 31, 2051. Interest is payable annually on each December 31, beginning in 2022. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $). Determine the price of the bonds on December 31, 2021, assuming that the market rate of interest for similar bonds was 6%.
Table values are based on:
n = 30
i = 6%
Cash Flow Amount Present Value
Interest $111,300,000 $74,454,240
Principal $100,000,000 $13,137,000
Price of bonds $87,591,240

On December 31, 2016, the manager of Jordan Creek Apartments noticed that four tenants had not paid their December rent amounting to $500 each. The manager spoke to each tenant individually and was promised by all 4 that the rent would be paid by January 15, 2017. Assuming the tenants follow through and make their payments by January 15, 2017, Jordan Creek should make the following entry as of December 31, 2016:______.
Cash (dr) $2,000
Rental Receivable (cr) $2,000
A. True
B. False

Oct. 1 Stockholders invest $33,540 in exchange for common stock of the corporation 2 Hires an administrative assistant at an annual salary of $41,520. 3 Buys office furniture for $3,690, on account. 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $11,190 (not paid by Roads at this time) 10 Receives cash of $155 as commission for acting as rental agent renting an apartment. 27 Pays $660 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $3,460 in salary for October.
Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the the problem.)
Date Account Titles and Explanation Debit Credit

Carr Company produces a single product. During the past year, Carr manufactured 29,010 units and sold 23,900 units. Production costs for the year were as follows: Direct materials $214,674 Direct labor $121,842 Variable manufacturing overhead $243,684 Fixed manufacturing overhead $319,110 Sales were $1,159,150 for the year, variable selling and administrative expenses were $126,670, and fixed selling and administrative expenses were $205,971. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be:______.
a. $56,210 lower than under absorption costing.
b. $30,149 lower than under absorption costing.
c. $56,210 higher than under absorption costing.
d. $30,149 higher than under absorption costing.

In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 300 towels were in process and were 60 percent complete. The costs incurred were $576. During the month, costs of $10,800 were incurred, 2,700 towels were started, and 150 towels were still in process at the end of the month. At the end of the month, the towels were 20 percent complete.
Required:
A. Prepare a production cost report; the company uses weighted-average process costing.
RECYCLERS, INC.
Production Cost Report—FIFO
Flow of Production Units Compute Equivalent Units
Physical Units Conversion Costs
Units to be accounted for:
Beginning WIP inventory 300
Units started this period
Total units to be accounted for 300
Units accounted for:
Units completed and transferred out:
From beginning inventory
Started and completed currently
Units in ending WIP inventory
Total units accounted for 0 0
Costs Total Costs Conversion Costs
Costs to be accounted for:
Costs in beginning WIP inventory
Current period costs
Total costs to be accounted for $0 $0
Cost per equivalent unit:
Conversion costs
Costs accounted for:
Costs assigned to units transferred out:
Costs from beginning inventory
Current costs added to complete beginning WIP inventory:
Conversion costs
Total costs from beginning inventory $0
Current costs of units started and completed:
Conversion costs
Total costs of units started and completed $0
Total costs of units transferred out $0
Costs assigned to ending WIP inventory:
Conversion costs
Total ending WIP inventory $0
Total costs accounted for $0 $0
B. Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables.
Work in Process Various Payables
Beginning inventory Beg.bal.
This period's costs: End.bal.
Ending inventory
Finished Goods Inventory
Beg.bal.
End.bal.

You own a small real estate company in Indianapolis. You track the real estate properties you list for clients. You want to analyze sales for selected properties. Yesterday, you prepared a workbook with a worksheet for recent sales data and another worksheet listing several properties you listed. You want to calculate the number of days that the houses were on the market and their sales percentage of the list price. In one situation, the house was involved in a bidding war between two families that really wanted the house. Therefore, the sale price exceeded the list price.
For the purpose of grading the project you are required to perform the following tasks:
Step
Instructions
Points Possible
1. Start Excel. Download and open the file named e01_grader_h3.xlsx.
0.000
2. Delete row 8, which has incomplete sales data. The owners took their house off the market.
3.000
3. Type 2018-001 in cell A5 and use Auto Fill to complete the series to assign a property ID to each property in the range A6:A12.
5.000
4. Enter a formula in cell C5 that calculates the number of days the first house was on the market. Copy the formula to the range C6:C12. Format the range C5:C12 with Number format with zero decimal places.
10.000
5. Format the list prices and sold prices in the range F5:G12 with Accounting Number Format with zero decimal places.
5.000
6. Enter a formula in cell H5 that calculates the sales price percentage of the list price for the first house. The second house was listed for $500,250, but it sold for only $400,125. Therefore, the sale percentage of the list price is .7999. Copy the formula to the range H6:H12.
10.000
7. Format the values in the range H5:H12 with Percent Style with two decimal places.
5.000
8. Wrap the headings in the range A4:H4.
2.000
9. Insert a new column between the Date Sold and List Price columns. Move the Days to Market data to the new blank column F by moving the range C4:C12 to F4:F12. Delete column C.
5.000
10. Edit the list date of the 41 Chestnut Circle house to be 4/22/2018. Edit the list price of the house on Amsterdam Drive to be $355,000.
5.000
11. Select the property rows (rows 5:12) and set a 25 row height and apply Middle Align.
5.000
12. Apply the All Borders border style to the range A4:H12.
3.000
13. Apply Align Right and increase the indent two times on the days on market formula results in the range E5:E12.
5.000
14. Set the Days on Market column width to 9. Set the List Price and Sold Price column widths to 11.86.
5.000
15. Apply 120% scaling.
2.000
16. Delete the Properties sheet and insert a new sheet named Formulas.
5.000
17. Use the Select All feature to select all data on the Houses Sold worksheet and copy it to the Formulas worksheet.
5.000
18. Hide the Date Listed and Date Sold columns in the Formulas worksheet.
5.000
19. Display cell formulas. Set options to print gridlines and row and column headings. Set 6.86 column width for column E and 6 for column H.
3.000
20. Group the two worksheets. Select Landscape orientation. Center the page horizontally and vertically between the margins.
7.000
21. With both worksheets still grouped, insert a footer with the text Exploring Series on the left side, the sheet name code in the center, and the file name code on the right side.
5.000
22. Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed.
0.000
Total Points
100.000
J. Heaton Realty
Sales Report
Prop ID Property Days on Market Date Listed Date Sold List Price Sold Price % of List Price
125 Amsterdam Drive 1/12/18 4/12/18 350000 335000
341 North Oak Drive 11/15/17 3/1/18 500250 400125
100 South 325 West 12/3/17 4/30/18 650725 500750
386 East Elm Street 3/1/18
2304 West 39th Street 3/14/18 3/30/18 315000 325000
41 Chestnut Circle 2/22/18 5/18/18 423500 420750
973 East Mulberry Lane 11/30/17 3/1/18 375000 375000
538 North Oak Drive 10/4/17 1/5/18 475000 400000
64 Chancellor Estates 4/1/18 4/15/18 500999 495000