Answer and Explanation:
The presentation is as follows;
Particulars Amount ($)
Current Liabilities
Notes payable $120,800
Long term debt
Notes payable refinanced in February 2021 $1,090,200
Select the proper term for each definition.
a. A promise to pay issued by a borrower with annual interest payments and a principal payment at maturity.
b. A share of ownership in a company
c. Funds that are kept in a bank that must be relinquished upon the owner's request
d. An agreement between a lender and a borrower
1. Stock
2. Bank Deposit
3. Loan
4. Bond
Answer:
a. loan
b. stock
c. bank deposit
d. bond
Explanation:
A stock is when a person buys ownership rights in a company. The holder of the share is known as a shareholder and receives dividends
A bond is when an entity borrows money. The lender is known as a bondholder. The bondholder is entitled to periodic interest payments. At maturity, the bond holder receives principal
A bank deposit is when an account holder at a bank deposits money in a bank. The account could be a savings or a current account
Tiger Trade has the following cash transactions for the period.
Accounts Amounts
Cash received from sale of products to customers $ 35,000
Cash received from the bank for long-term loan 40,000
Cash paid to purchase factory equipment (45,000)
Cash paid to merchandise suppliers (11,000)
Cash received from the sale of an unused warehouse 12,000
Cash paid to workers (23,000)
Cash paid for advertisement (3,000)
Cash received for sale of services to customers 25,000
Cash paid for dividends to stockholders (5,000)
1. Calculate the ending balance of cash, assuming the balance of cash at the beginning of the period is $4,000.
2. Prepare a statement of cash flows. (Cash outflows should be indicated by a minus sign.)
Answer:
Cash flow from operating activities
Cash inflows
Cash received from sale of products to customer $35,000
Cash received from sale of services to customer $25,000
Cash outflows:
Cash paid to merchandise suppliers ($11,000)
Cash paid to workers ($23,000)
Cash paid for advertisement ($3,000)
Net cash flow from operating activities $23,000
Cash flow from investing activities
Cash paid to purchase factory equipment ($45,000)
Cash received from sale of warehouse $12,000
Net cash flow from investing activities ($33,000)
Cash flow from financing activities
Dividend paid ($5000)
Cash received from bank loan $40,000
Net cashflow from financing activities $35,000
Net cash increase $25,000
Cash at the beginning of the year $4,000
Cash at the end of the year $29,000
Assume that Wilkins issued 13,000 shares of common stock with a $5 par value and a $46 fair value for all of the outstanding shares of Granger. What will be the consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2021 balances) as a result of this acquisition transaction
Answer: $593000; $250000
Explanation:
The consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2021 balances) as a result of this acquisition transaction will be calculated thus:
Additional paid in capital will be:
= $60000 + ([46-5] × $13000)
= $60000 + (41 × $13000)
= $60000 + $533000
=$593000
Retained earnings will the value of the parent's retained earnings only which will be $250000
You make $13.00 Per Hour. You work 40 hrs. a week for 5 weeks this month. Total Hrs. Worked = _____
What is your monthly income? ____
Answer:
assuming that this month was extraordinarily long, and had more days than any other month in history, you worked a total of 5 x 40 = 200 hours
Also, due to length of the month, you will earn 200 hours x $13 = $2,600
Generally months tend to have between 20-23 labor days
Slapshot Company makes ice hockey sticks and sold 1,890 sticks during the month of June at a total cost of $378,000. Each stick sold at a price of $360. Slapshot also incurred two types of selling costs: commissions equal to 10% of the sales price and other selling expense of $64,700. Administrative expense totaled $53,800.
Required:
Prepare an income statement for Slapshot for the month of June
Answer:
Slapshot Company
Income statement for the month of June
Sales ( 1,890 x $360) $680,400
Less Costs of Sales ($378,000)
Gross Profit $302,400
Selling Costs :
Commissions $68,040
Other Selling Expense $64,700
Administrative Expense $53,800 ($186,540)
Net Income $115,860
Explanation:
The Income statement shows the Profit earned during the reporting period. This is determined as Gross Profit (Sales - Cost of Sales) minus the Operating Expenses.
Prepare the issuer's journal entry for each of the following separate transactions.
a. On March 1, Atlantic Co. issues 49,500 shares of $4 par value common stock for $318,500 cash.
b. On April 1, OP Co. issues no-par value common stock for $84,000 cash.
c. On April 6, MPG issues 3,400 shares of $20 par value common stock for $53,000 of inventory, $150,000 of machinery, and acceptance of a $103,000 note payable.
Answer:
a.
March 1
Debit : Cash $318,500
Credit : Common Stock $198,000
Credit : Excess of Par $120,500
Being Issue of Par value Shares for $318,500 cash
b.
April 1
Debit : Cash $84,000
Credit : Common Stock $84,000
Being Issue of no Par value shares for $84,000 cash
c.
April 6
Debit : Inventory $53,000
Debit : Note Receivable $103,000
Credit : Common Stock $68,000
Credit : Excess of Par $88,000
Being Issue of Par value Shares for Inventory and Note Receivable
Explanation:
Note: We are instructed to prepare journals from the issuer`s point of view and this needs to be followed.
When shares are issued, the Common Stock increases :
a. For par value Common Stocks, any price paid in excess of par value is accounted in Excess of Par Reserve.
b. For no par value shares, there is no Excess of Par Reserve, we simply record the increase in Common Stock at the price paid for.
Global Tek is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 16 percent a year for the next four years and then the growth slows down to a rate of 3.5 percent per year indefinitely. The company just paid its annual dividend in the amount of $0.20 per share. What is the current value of one share of this stock if the required rate of return is 15.5%?
Answer:
The value of the stock is $2.558
Explanation:
We need to calculate the present value of future cash flows to calculate the Stock value
First Calculate each year's Dividend
Use the following formula to calculate the expected dividend
Expected Dividend = Current Dividend x ( 1 + Growth rate )^n
Year ______ Working _________ Dividend
1 ______ $0.20 x ( 1 + 16% )^1 ____ $0.232
2______ $0.20 x ( 1 + 16% )^2 ____ $0.269
3______ $0.20 x ( 1 + 16% )^3 ____ $0.312
4______ $0.20 x ( 1 + 16% )^4 ____ $0.362
5______$0.362 x ( 1 + 3.5% ) _____$0.375
Now calculate the present value of each year's dividend using following formula
PV = Dividend / ( 1 + required rate of return )^numbers of years
Year _____ Working ______________________ PRESENT VALUES
1 ______ $0.232 / ( 1 + 15.5% )^1 _____________ $0.201
2______ $0.269 / ( 1 + 15.5% )^2 _____________$0.202
3______ $0.312 / ( 1 + 15.5% )^3 _____________ $0.203
4______ $0.362 / ( 1 + 15.5% )^4 _____________$0.203
5______$0.375 / (15.5% - 3.5% ) ) / ( 1 + 15.5% ) __$1.749
Now calculate the sum of present value of all the dividends
Value of stock = $0.201 + $0.202 + $0.203 + $0.203 + $1.755
Value of stock = $2.558
Xavier and Yolanda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net income of $40,000 is allocated to Xavier?
A) $22,000
B) $32,000
C) $0
D) $20,000
Answer:
A) $22,000
Explanation:
The computation of the net income allocated to Xavier is shown below:
Particulars Xavier Yolanda Total
Capital $50,000 $100,000
Interest at 10% $5,000 $10,000 $15,000
Allowances $27,000 $18,000 $45,000
Now the net income allocated to xavier is
= $5,000 + $27,000 + ($40,000 - $15,000 - $45,000) × 50%
= $32,000 - $10,000
= $22,000
On January 1, 2015, VITO Corporation had 110,000 shares of its $5 par value common stock outstanding. On June 1, the corporation acquired 10,000 shares of stock to be held in the treasury. On December 1, when the market price of the stock was $10, the corporation declared a 20% stock dividend to be issued to stockholders of record on December 20, 2015. What was the impact of the 20% stock dividend on the balance of the retained earnings account
Answer:
the impact is $200,000 decrease
Explanation:
The computation of the impact is as follows
= (Total shares - treasury stock) × market price of the stock × dividend percentage
= (110,000 shares - 10,000 shares) × $10 × 20%
= $200,000 decrease
hence, the impact is $200,000 decrease
Define the term agency
Answer:
a business or organization providing a particular service on behalf of another business, person, or group.
Explanation:
Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations.
Standard Custom
Direct labor costs $50,000 $100,000
Machine hours 1,000 1,000
Setup hours 100 400
Total estimated overhead costs are $240,000. Overhead cost allocated to the machining activity cost pool is $140,000, and $100,000 is allocated to the machine setup activity cost pool.
Answer:
The answer is "160, 70, and 200"
Explanation:
Formula:
[tex]\text{Overhead rate predetermination}=\frac{\text{overhead costs} \times 100}{\text{direct cost of labor}}[/tex]
[tex]=\frac{240000 \times 100}{150000}\\\\=\frac{24 \times 100}{15}\\\\=\frac{2400}{15}\\\\= 160[/tex]
calculating the overhead rate under the ABC:
[tex]Machining = \frac{140000}{2000} = \frac{140}{2}=70 \ / machine\ hour \\\\\text{set up} =\frac{100000}{500} = \frac{1000}{5}= 200 \ / set \ up[/tex]
The following information is available for two different types of businesses for the 2016 accounting year. Hopkins CPAs is a service business that provides accounting services to small businesses. Sports Clothing is a merchandising business that sells sports clothing to college students.
Data for Hopkins CPAs
1. Borrowed $90,000 from the bank to start the business.
2. Provided $50,000 of services to clients and collected $50,000 cash.
3. Paid salary expense of $32,000.
Data for Sports Clothing
1. Borrowed $90,000 from the bank to start the business.
2. Purchased $50,000 inventory for cash.
3. Inventory costing $26,000 was sold for $50,000 cash.
4. Paid $8,000 cash for operating expenses.
Prepare an income statement, balance sheet, and statement of cash flows for each of the companies.
Answer:
Hopkins CPAs and Sports Clothing
Hopkins CPAs:
Income Statement
Service Revenue $50,000
Salaries expense 32,000
Net Income $18,000
Balance Sheet
Cash $108,000
Total assets $108,000
Bank Loan $90,000
Net Income 18,000
Total liabilities +
equity $108,000
Statement of Cash Flow
Cash from operations:
Net income $18,000
Change in working
capital $90,000
Net operating cash $108,000
Reconciliation with cash:
Cash balance $108,000
Sports Clothing:
Income Statement
Sales Revenue $50,000
Cost of goods sold 26,000
Operating expense 8,000 34,000
Net income $16,000
Balance Sheet
Cash $82,000
Inventory 24,000
Total assets $106,000
Bank Loan $90,000
Net Income 16,000
Total liabilities +
equity $106,000
Statement of Cash Flow
Cash from operations:
Net income $16,000
Change in working
capital:
Bank $90,000
Inventory (24,000)
Net operating cash $82,000
Reconciliation with cash:
Cash balance $82,000
Explanation:
a) Data and Calculations:
Hopkins CPAs
Cash account:
Bank loan $90,000
Service revenue 50,000
Salaries expense (32,000)
Balance = $108,000
Trial balance
Cash $108,000
Bank Loan $90,000
Service Revenue 50,000
Salaries expense 32,000
Totals $140,000 $140,000
Sports Clothing:
Cash account:
Bank loan $90,000
Inventory (50,000)
Sales revenue 50,000
Operating expense (8,000)
Balance = $82,000
Trial balance
Cash $82,000
Bank Loan $90,000
Inventory 24,000
Cost of goods sold 26,000
Sales Revenue 50,000
Operating expense 8,000
Totals $140,000 $140,000
g Studies have found that firms with large investments in tangible assets tend to have: Group of answer choices the highest financial distress costs of any firm per dollar of debt. higher target debt-equity ratios than firms that primarily invest in intangible assets. the same capital structure as firms that specialize in intangible asset investments.
Answer: Higher target debt-equity ratios than firms that primarily invest in intangible assets.
Explanation:
Tangible assets can be expensive and when a company has large investments in them that usually means that they spent a considerable amount to acquire them. This is why they turn to debt because it will allow them to afford these tangible assets.
This is why companies in the airplane and electricity distributing companies have a lot of debt, they had to invest in the large amount of tangible assets needed to make planes or distribute electricity.
A company has been determined the they plan to invest $9,800,000 in a new solar field in November 2020. The investment will start paying off providing $200,000 per month starting in May 2021. For planning purposes, the project life would be to November 2030. What is the present value of this project at a required rate of return of 6% per year (Hint - use XNPV)?
Answer:
The Net Present Value of this project is:
$7,358,638.89
Explanation:
a) Data and Calculations:
Estimated cost of investment = $9,800,000 in November 2020
Monthly benefits = $200,000 starting from May 2021
Period of benefits = 9.5 years
Required rate of return = 6% p[er year
Using the Excel NPV (XNPV) function, the NPV = $7,358,638.886
b) The Present Value of the project is the discounted value of the cash inflows of $200,000 for 114 months and $9,800,000 on day 1. An excel copy of the calculations is attached.
Voluntary deductions from employee pay can include which of the following:
a. Medicare taxes
b. Pension contributions
c. Life insurance premiums
d. Social Security taxes
e. Union dues
Answer:
B
C
E
Explanation:
Taxes are compulsory sums levied. They have to be paid. They are not voluntary
other deductions are at the discretion of employees
Which of the following individuals is a product manager?
Answer:
The answer is ... Alyssa is in charge of her company's line of waterproof rain boots.
Hope this helps!! ;)
1. Firm L, which operates an internet clothing business, is located in State L. This year, the firm shipped $18 million of merchandise to customers living in State R. State R imposes a six percent sale and use tax on the purchase and consumption of retail goods within the state. a) Do State R residents who purchased Firm L merchandise owe use tax on their purchases? b) If State R could legally require Firm L to collect a 6 percent tax on internet sales made to residents of the State, how much additional revenue would the state collect?
Answer:
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During December, Krause Chemical Company had the following selected data concerning the manufacture of Xyzine, an industrial cleaner:
Production Flow Physical Units
Completed and transferred to the next department 100
Add: Ending work in process inventory 10(40% complete as to conversion)
Total units to account for 110
Less: Beginning work in process Inventory 20(60% complete as to conversion)
Units started during 90
All materials are added at the beginning of processing in this department, and conversion costs are added uniformly during the process. The beginning work in process inventory had $120 of raw materials and $180 of conversion costs incurred. Materials added during December were $540, and conversion costs of $1,484 were incurred. Krause uses the first-in, first-out (FIFO) process cost method. The equivalent units of production used to compute conversion costs for December were:
a. 110 units.
b. 104 units.
c. 100 units.
d. 92 units.
Answer:
d. 92 units.
Explanation:
The computation of the equivalent units of production used to compute conversion costs is shown below:
= 20 units × 40% + (100 units - 20 units) × 100% + 10 units × 40%
= 8 units + 80 units + 4 units
= 92 units
Hence, the equivalent units of production used to compute conversion costs is 92 units
Cost of Production Report
Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31:
ACCOUNT Work in Process—Roasting Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
July 1 Bal., 30,000 units, 10% completed 121,800
31 Direct materials, 155,000 units 620,000 741,800
31 Direct labor 90,000 831,800
31 Factory overhead 33,272 865,072
31 Goods transferred, 149,000 units ?
31 Bal., ? units, 45% completed ?
Required:
1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to the nearest cent.
Hana Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended July 31
Unit Information
Units charged to production:
Inventory in process, July 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
Equivalent Units
Whole Units Direct Materials Conversion
Inventory in process, July 1
Started and completed in July
Transferred to Packing Department in July
Inventory in process, July 31
Total units to be assigned costs
Cost Information
Costs per equivalent unit:
Direct Materials Conversion
Total costs for July in Roasting Department $ $
Total equivalent units
Cost per equivalent unit $ $
Costs charged to production:
Direct Materials Conversion Total
Inventory in process, July 1 $
Costs incurred in July
Total costs accounted for by the Roasting Department $
Cost allocated to completed and partially completed units:
Inventory in process, July 1 balance $
To complete inventory in process, July 1 $ $
Cost of completed July 1 work in process $
Started and completed in July
Transferred to Packing Department in July $
Inventory in process, July 31
Total costs assigned by the Roasting Department $
2. Assuming that the July 1 work in process inventory includes $119,400 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July. If required, round your answers to two decimal places.
Increase or Decrease Amount
Change in direct materials cost per equivalent unit $
Change in conversion cost per equivalent unit $
Answer:
Answer:
Hana Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended July 31
Unit Information
Units charged to production:
Inventory in process, July 1
Received from materials storeroom
Total units accounted for by the Roasting Department 185,000
Units to be assigned costs:
Equivalent Units = 165,200
Whole Units Direct Materials Conversion
Inventory in process, July 1 30,000 30,000 3,000
Started and completed in July 149,000 149,000 149,000
Transferred to Packing in July 155,000 155,000 155,000
Inventory in process, July 31 36,000 36,000 16,200
Total units to be assigned costs 165,200 165,200 165,200
Cost Information
Costs per equivalent unit:
Direct Materials Conversion
Total costs for July in Roasting Dept 865,072 $740,000 $125,072
Total equivalent units 185,000 165,200 165,200
Cost per equivalent unit $4.48 $0.76
Costs charged to production:
Direct Materials Conversion Total
Inventory in process, July 1 $ $120,000 $1,800 $121,800
Costs incurred in July 620,000 123,272 743,272
Total costs accounted for
by the Roasting Department $740,000 $125,072 $865,072
Cost allocated to completed and partially completed units:
Inventory in process, July 1 balance $121,800
To complete inventory in process, July 1 $743,272
Cost of completed July 1 work in process $865,072
Started and completed in July
Transferred to Packing Department in July $780,760
Inventory in process, July 31 84,312
Total costs assigned by the Roasting Department $865,072
2. Assuming that the July 1 work in process inventory includes $119,400 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July. If required, round your answers to two decimal places.
Increase or Decrease Amount
Change in direct materials cost per equivalent unit = $0 ($4 - $4)
Change in conversion cost per equivalent unit = $0 ($0.76 - $0.76)
Explanation:
a) Data and Calculations:
Work in Process—Roasting Department ACCOUNT NO.
Date Item Debit Credit Balance
July 1 Bal., 30,000 units,
10% completed $121,800
31 Direct materials,
155,000 units 620,000 741,800
31 Direct labor 90,000 831,800
31 Factory overhead 33,272 865,072
31 Goods transferred, 149,000 units, 780,760
31 Bal., 36,000 units, 45% completed 84,312
Total units under production:
Beginning balance 30,000
Added units 155,000
Total units 185,000
Units transferred out 149,000
Ending units 36,000
Equivalent unit of production:
Units transferred out 149,000 (100%)
Ending units 16,200 (45%)
Total equivalent unit = 165,200
Direct Materials Conversion
Total cost of units under production = $740,000 $125,072
Total equivalent units = 165,200 165,200
Cost per equivalent unit = $4.48 $0.76
If Direct materials cost = $119,400
Conversion cost will be 2,400 ($121,800 - 119,400)
Direct Materials Conversion Total
Inventory in process, July 1 $ $119,800 $2,400 $121,800
Costs incurred in July 620,000 123,272
Total costs accounted for
by the Roasting Department $739,800 $125,672 $865,072
Equivalent units 165,200 165,200
Cost per equivalent unit $4.48 $0.76
During peak times, customers arrive at the Showcase SuperLux Theater at a rate of 180 per hour. All customers who enter the theater purchase tickets, but only 85% of customers purchase refreshments. Recall that the processing time for a ticket purchase is 0.75 minutes per customer and that the processing time for a refreshment purchase is 3 minutes per customer. Assume that 2 employees work the ticket booths and 8 employees work the concession stand.
Required:
a. Compute the implied utilization of the resources at the ticket booths and concession stand.
b. What is the flow rate of customers through this process (in customer per hour)?
c. Assume 1 resource is added to the ticket booths. What is the new flow rate of customers through the process (in customers per hour)?
Answer and Explanation:
The computation is shown below:
a) utilization is
= customer per hour ÷ number of booths × service rate
For ticket counter
= 180 ÷ 2 × (1 ÷ .75)
= 180 ÷ 2 × 1.33
= 67.67
= 68 %
For refreshment counter
= 180 × 0.85 ÷ 8 × (1 ÷ 3)
= 153 ÷ 2.64
= 57.95
= 58%
b)capacity is
= no. of resources ÷ processing time
= 2+8 ÷ 45+180
= 10 ÷ 225
= 0.044
= 0.04 customer per second
= 144 customer per hour
The flow rate of customer per hour is 144 customer
c) 1 resource added to ticket booth is
= 11 ÷ 225
= 0.048
= 176 customer per hour
Consider the following financial statement information for the Sourstone Corporation:
Item Beginning Ending
Inventory $9,682 $10,480
Accounts receivable $4,951 $ 5,481
Accounts payable $5,252 $ 5,593
Net sales $138,603
Cost of goods sold 86,413
Assume all sales are on credit. Calculate the operating and cash cycles. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
A) Operating Cycle is ____ days
B) Cash Cycle is ____ days
Answer:
A. 56.32 days
B. 40.38 days
Explanation:
The Operating cycle is the Inventory period + AR period
Inventory period= 365/(Cost of goods sold/Average inventory)
Average inventory= (Beginning Inventory + Ending Inventory)/2
Accounts Receivable period= 365/(Credit Sales/Average Accounts Receivable )
Average Accounts Receivable= (Beginning Accounts Receivable + Ending Inventory Accounts Receivable)/2
Calculated Inventory period= 42.58 days
Calculated Accounts Receivable period= 13.74 days
The Cash cycle is also called the Net Operating cycle which is the Inventory period + Accounts Receivable period- Accounts Payable period
Accounts Payable period= 365/(Cost of goods sold/Average Accounts Payable)
Average Accounts Payable = (Beginning Accounts Payables + Ending Inventory Accounts Payable)/2
Calculated Accounts Payable period= 15.94 days
The Marchetti Soup Company entered into the following transactions during the month of June:
(a) purchased inventory on account for $245,000 (assume Marchetti uses a perpetual inventory system);
(b) paid $60,000 in salaries to employees for work performed during the month;
(c) sold merchandise that cost $160,000 to credit customers for $300,000;
(d) collected $280,000 in cash from credit customers; and
(e) paid suppliers of inventory $225,000.
Prepare journal entries for each of the above transactions.
Answer:
The Marchetti Soup Company
Journal Entries:
a) Debit Inventory $245,000
Credit Accounts Payable $245,000
To record the purchase of inventory on account.
b) Debit Salaries Expense $60,000
Credit Cash $60,000
To record the payment of salaries for the month.
c) Debit Accounts Receivable $300,000
Credit Sales Revenue $300,000
To record the sale of inventory on account
Debit Cost of Goods Sold $160,000
Credit Inventory $160,000
To record the cost of goods sold.
d) Debit Cash $280,000
Credit Accounts Receivable $280,000
To record the receipt of cash from customers.
e) Debit Accounts Payable $225,000
Credit Cash $225,000
To record the payment to suppliers on account.
Explanation:
Journal entries enable the identification of accounts involved in each transaction. They are used to make the initial record into the accounting books before they are posted to the general ledger. They show the accounts to be debited and the ones to be credited.
Employability skills are "general skills that are necessary for success in the labor market at all employment levels and in all sectors."
True
False
Answer:
true
Explanation:
Smith Company reported pretax book income of $406,000. Included in the computation were favorable temorary differences of $51,200, unfavorable temporary differences of $40,600. Smith's deferred income tax expense or benefit would be:
Answer:
$3,604
Explanation:
Calculation for what Smith's deferred income tax expense or benefit would be:
Using this formula
Deferred income tax expense =(favorable temporary difference-unfavorable temporary difference)*Tax rate
Let plug in the formula
Deferred income tax expense =($51,200-$40,600)*21%
Deferred income tax expense =$10,600*34%
Deferred income tax expense =$3,604
Therefore Smith's deferred income tax expense or benefit would be:$3,604
The laser printer in your home office needs to be replaced. You have been using it to print the normal number of pages that result from notes from your classes and assigned homework, receipts from online orders, and some letters you have written. What type of printer would make an adequate replacement if your major concern is keeping the initial cost low
Answer:
ink-jet printer.
Explanation:
The ink-jet printer is the printer that is cheaper also smaller at the same time it also used for printing the text documents and highly quality colored images so for printing the receipts from the online orders and for some letters the above printer should be used as the cost of the printer is low
So the same should be selected
Oslund Company manufactures only one product and uses a standard cost system. During the past month, the following variances were observed: Direct labor rate variance $30,000 favorable Direct labor efficiency variance 50,000 unfavorable Variable overhead efficiency variance 20,000 unfavorable Standard direct labor hours (DLH) per unit 5 Oslund applies variable overhead using a standard rate of $20 per standard DLH allowed. During the month, Oslund used 20% more DLHs than the total standard hours for the units manufactured. What were the total actual direct labor hours worked by Oslund Company during the past month
Answer:
6,000 Hours
Explanation:
Variable overhead efficiency variance = 20,000 U
(SH - AH) * SVR = - 20,000
Actual hours = Standard hours + 20% = 1.20*SH
(SH - (1.20SH) * 20 = - 20,000
-0.20 SH = -20,000/20
-0.20 SH = -1,000
SH = 5,000 Hours
Actual hours = 1.20 * 5,000 Hours
Actual hours = 6,000 Hours
Which of the following courts renders decisions binding only on the parties involved in the dispute?
Answer:
The answer would be C:
the U.S. District Court
Explanation:
Only appellate courts make precedent. Each of the choices is an appellate court except the U.S. District Court.
Hope this helps!! ;)
Jasper Carts manufactures custom carts for a variety of uses. The following data have been recorded for Job 651, which was recently completed. Direct materials used cost $7700. There were 178 direct labor hours worked on this job at a direct labor wage rate of $22 per hour. There were 90 machine hours used on this job. The predetermined overhead rate is $32 per machine hour used.
Required:
What is the total manufacturing cost of Job 651?
Answer:
The right answer is "$14,496".
Explanation:
The given values are:
Direct material cost,
= $7700
Labor hours,
= 178
Wage rate,
= $22 per hour
Machine hours,
= 90
Predetermined overhead rate per machine,
= $32
Now,
The direct labors cost will be:
= [tex]Labor \ hours\times wage \ rate[/tex]
= [tex]178\times 22[/tex]
= [tex]3,916[/tex] ($)
Mfg. overhead costs will be:
= [tex]Machine \ hours\times Predetermined \ overhead \ rate[/tex]
= [tex]90\times 32[/tex]
= [tex]2,880[/tex] ($)
So,
The total manufacturing cost will be:
= [tex]7700+3916+2880[/tex]
= [tex]14,496[/tex] ($)
On January 1, a company issues bonds dated January 1 with a par value of $460,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $441,361. The journal entry to record the first interest payment using the effective interest method of amortization is:
Answer:
January 1, 202x, bonds issued at a discount
Dr Cash 441,361
Dr Discount on bonds payable 18,639
Cr Bonds payable 460,000
amortization of bond discount = ($441,361 x 4%) - ($460,000 x 3.5%) = $17,654.44 - $16,100 = $1,554.44
June 20, 202x, first coupon payment
Dr Interest expense 17,654.44
Cr Cash 16,100
Cr Discount on bonds payable 1,554.44
Testing for possible impairment of a long-lived asset (asset group) that an entity expects to hold and use is required
a. At each interim and annual balance sheet date.
b. At annual balance sheet dates only.
c. Periodically.
d. Whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.
Answer:
d. Whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.
Explanation:
It is advisable that an entity conducts impairment testing on an annual basis especially when the business is using International Financing Reporting Standards for preparing its financial statements.
However, under the US GAAP, impairment testing is only should only be undertaken when circumstances or events pointing to the fact the asset carrying value is not likely to be recovered, which is applicable in this case since we are dealing with US scenario where US GAAP applies