Answer and Explanation:
According to the situation, the journal entries are as follows
a. Cash Dr $450,000
To bond payable $450,000
(Being the issuance of the bond is recorded)
Here we debited the cash as it increased the assets and credited the bond payable as it also increased the liabilities
b. Interest expense Dr $13,500
To cash $13,500
(Being the first interest payment is recorded)
Here we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets
c. Bond payable Dr $450,000
To cash $450,000
(Being the payment of the principal on the maturity date is recorded)
Here we debited the bond payable as it decreased the liabilities and credited the cash as it decreased the assets
Tristan refuses to let Marla list his property on the MLS, even though Marla told him that more exposure to the property will generate more potential buyers. Which two fiduciary duties are at odds in this situation
Answer: a. Reasonable skill and care and obedience
Explanation:
The Fiduciary responsibility of Reasonable Skill and Care charges that professionals in a contract should give the same level of skill and care that another competent member of the profession will be able to give. Essentially, Professionals should do their best in a contract to execute it. Marla needs to exercise this fiduciary responsibility by listing Tristan's property on the MLS so that it is sold faster.
However, this will go against her other Fiduciary Responsibility to Tristan, that of Obedience. Tristan's wishes as the client are supposed to be listened and adhered to. Marla is supposed to follow Tristan's directives and remain faithful to them. His directive in this scenario is that Marla does not register the property on the MLS and Marla needs to follow this.
The two fiduciary duties are at odds in this situation are therefore those of Reasonable skill and care and Obedience.
Power Manufacturing recorded operating data for its shoe division for the year. Sales $1,500,000 Contribution margin 300,000 Controllable fixed costs 180,000 Average total operating assets 600,000 How much is controllable margin for the year
Answer:
Controllable margin for the year is $120,000.
Explanation:
Controllable margin refers to contribution margin minus controllable fixed costs. Controllable margin is usually employed to assess the performance of managers because all the costs that the profit center manager can control are included in the calculation of controllable margin.
Based on the explanation above, controllable margin for this question can therefore be calculated as follows:
Controllable margin = Contribution margin - Controllable fixed costs = $300,000 - $180,000 = $120,000
Therefore, controllable margin for the year is $120,000.
The Grondas, who owned a party store along with land, fixtures, equipment, and a liquor license, entered into a contract to sell their liquor license and fixtures to Harbor Park Market in an agreement that was expressly conditioned on approval by the Grondas' attorney. The Grondas submitted the contract to their attorney but before the attorney had approved it, they received a second, better offer and submitted that contract to the attorney as well. The attorney reviewed both agreements and approved the second one. Harbor Park Market sued the Grondas for breach of contract. Will their suit succeed?
Answer:
No the suit will not succeed as their is no agreement
Explanation:
The contract was conditional contract. As the condition explicitly said that, the right to agree on terms and conditions is explicitly attorney's right. When the attorney has not agreed on the terms and conditions of Harbor Park, the company hasn't formed any contract. Furthermore, there is no limitation on Grondas to consider other available options and attorney is also not obliged to agree to Harbor's offer.
Thus the suit that says Grondas has breached the contract is meaningless and will not succeed in the court.
What is the payback period for the above set of cash flows? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Answer: 2.74 years
Explanation:
Payback Period is a method of capital budgeting that works by checking how long the project will take to repay the investment outlay.
The formula is;
Payback Period = Year before Payback Period occurs + [tex]\frac{Cash remaining}{Cashflow in year payback happens}[/tex]
Initial Outlay = $4,650
First Year = $1,350
Second Year = $2,450
Third Year = $1,150
First year + second year = 1,350 + 2,450 = $3,800
Remaining till repayment = 4,650 - 3,800 = $850
Third year amount of $1,150 is higher than $850 so amount will be repaid in 3rd year.
Payback Period = Year before Payback Period occurs + [tex]\frac{Cash remaining}{Cashflow in year payback happens}[/tex]
Payback Period = 2 + [tex]\frac{850}{1,150}[/tex]
Payback Period = 2.74 years
Mountain High Ice Cream Company transferred $65,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,500). Mountain High anticipates a $3,500 recourse obligation. The bank charges a 3% fee (3% of $65,000), and requires that amount to be paid at the start of the factoring arrangement.
Required:
Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met.
Answer:
Dr Cash 56,550
Dr Receivable from factor 5,500
Dr Loss on sale of receivables 6,450
Cr Accounts receivables 65,000
Cr Recourse liability 3,500
Explanation:
cash = ($65,000 x 90%) - factoring fees = $58,500 - $1,950 = $56,550
factoring fees = $65,000 x 3% = $1,950
loss on sale of receivables (includes factoring fees) = (accounts receivables + recourse liability) - (cash + receivable from factor) = ($65,000 + $3,500) - ($56,550 + $5,500) = $68,500 - $62,050 = $6,450
Describe how communication strengthens relationship at work and as a result increases your productivity
A pension plan is obligated to make disbursements of $1.8 million, $2.8 million, and $1.8 million at the end of each of the next three years, respectively. Find the duration of the plan's obligations if the interest rate is 9% annually.
Answer:
1.9516 years.
Explanation:
So, the best and fastest way to solve this question is to use excel. So the first step is to calculate the Present Value of Cash Flow for the three cash flows and sum them up.
(A).
(1). For cash flow = $1,800,000, time = 1.
Present Value of Cash Flow:
$1,800,000 / (1 + 9%)^1
= 1651376.14678899082.
(2). For cash flow = $2,800,000, time = 2.
= $2,800,00/ (1 + 9%)^2.
= 2356703.98114636815.
(3). For cash flow = $2,800,000, time = 3.
= $1,800,000 / (1 + 9%)^3.
= 1389930.26410991568.
Thus, 1651376.14678899082 + 2356703.98114636815 + 1389930.26410991568.
= 5398010.39204527465.
(B). Also, 1651376.14678899082 ×( time = 1) = 1651376.14678899082.
2356703.98114636815 × (time= 2 ) = 4,713,407.9622927363.
1389930.26410991568 × (time = 3) = 4169790.79232974704.
Thus, 4169790.79232974704 + 1651376.14678899082 + 4,713,407.9622927363.
= 10534574.90141147416.
Hence, duration = 10534574.90141147416/ 5398010.39204527465.
= 1.95156625058292731
Approximately 1.9516 years.
Sheridan Company has the following information available for September 2020. Unit selling price of video game consoles $400 Unit variable costs $320 Total fixed costs $25,600 Units sold 600 Compute the unit contribution margin.
Answer:
Contribution margin per unit= $80
Explanation:
Giving the following information:
Unitary selling price of video game consoles $400
Unit variable costs $320
To calculate the unitary contribution margin, we need to use the following formula:
Contribution margin= selling price - unitary variable cost
Contribution margin= 400 - 320
Contribution margin= $80
On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $120,000, and its estimated useful life was four years or 1,150,000 cuttings, after which it could be sold for $5,000.
Required
a. Calculate each year’s depreciation expense for the machine's useful life under each of the following depreciation methods (round all answers to the nearest dollar):
1. Straight-line.
2. Double-declining balance.
3. Units-of-production. (Assume annual production in cuttings of 280,000; 430,000; 360,000; and 80,000.)
1. Straight-Line
Year Depreciation
Expense
2015 $Answer
2016 Answer
2017 Answer
2018 Answer
2. Double-declining balance
Year Depreciation
Expense
2015 $Answer
2016 Answer
2017 Answer
2018 Answer
2019 Answer
3. Units of Production
Year Depreciation
Expense
2015 $Answer
2016 Answer
2017 Answer
2018 Answer
b. Assume that the machine was purchased on July 1, 2015. Calculate each year’s depreciation expense for the machine's useful life under each of the following depreciation methods:
1. Straight-line.
2. Double-declining balance.
1. Straight-Line
Year Depreciation
Expense
2015 $Answer
2016 Answer
2017 Answer
2018 Answer
2019 Answer
2. Double-declining balance (Round answers to the nearest whole number, when appropriate.)
Year Depreciation
Expense
2015 $Answer
2016 Answer
2017 Answer
2018 Answer
2019 Answer
Answer:
Explanation:
Depreciation is the systematic allocation of the cost of a machine over its useful lifetime.
There are different types of depreciation like the straight line , double declining and the units of production method.
Workings
Depreciable amount = 120,000-5000 = 115,000
Useful life = 4 years
Depreciation rate = 115000/4 = 25% = 28,750
2015 2016 2017 2018
Straight line depreciation 28,750 28,750 28,750 28,750
Double declining
Double declining rate = 25%*2 = 50%
2015 = 50% * 115,000= 57,500
2016
Opening book value = 115,000-57,500 = 57500
Depreciation = 57,500*50% = 28,750
2017
Opening book value = 57500-28,750 =28750
Depreciation = 50%*28,750 =14,375
2018
Opening book value 28750-14375 = 14375
Depreciation = 14375*50% = 7188
Units of production
2015 = 280000/1150,000*115,000 = 28,000
2016 =430,000/1150000*115000 = 43,000
2017= 360000/1150000*115000 = 36,000
2018 = 80,000/1150000*115000 = 8000
B
IF the machine was bought on July 1, 2015
Straight line depreciation
2015 = (25%*115000 ) /2 = 14,375
2016 =25%* 115,000 = 28,750
2017 = 25%*115000 = 28750
2018 = 25%*115,000 =28750
2019 =(25%*115000)/2 = 14,375
Double declining method
2015
(115,000*50,000)/2 =28750
2016
Opening book value =115,000-28750 =86250
Depreciation = 50%*86250 = 43,125
2017
Opening book value =86250-43125 =43125
Depreciation = 43,125*50% = 21,563
2018
Opening book value
43125-21563 =21562
Depreciation = 21562*50% =10,781
2019
Opening book value = 21562-10781 =10781
Depreciation = 50%*10781 = 5391
Answer:
um... im actually finna work this out its interesting
Explanation:
Currently Acre is charged $3,693,600 Depreciation on the Income Statement of Andrews. Andrews is planning for an increase in this depreciation. On the financial statements of Andrews will this?
Answer: C)Increase Net Cash from Operations on the Cash Flow Statement
Explanation:
The Cash Flow Statement deals with only cash transactions of a business in an effort to know just how much actual cash the business has. The Operations section of the Cash Flow Statement is derived from the Net Income and to get to the Net Income, Depreciation is removed. Because Depreciation is a non-cash expense, and does not actually reduce cash, it is added back when calculating cash from Operations. A larger depreciation therefore would bring in more cash from Operations in the Cash Flow statement.
Match the transactions below with the journal or ledger in which it would be entered. Monthly adjustment for supplies used Cash receipt posting to an individual customer account Record sale on account to customer Record purchase on account from vendor Record payment received from customer Record payment made to vendor Cash payment posting to an individual vendor account General journal Accounts receivable subsidiary ledger Revenue journal Purchases journal Cash receipts journal Cash payments journal Accounts payable subsidiary ledger Group of answer choices Monthly adjustment for supplies used
Answer:
Matching transactions to journal or ledger:
1. Monthly adjustment for supplies used = General Journal
2. Cash receipt posting to an individual customer account = Accounts Receivable subsidiary ledger
3. Record sale on account to customer = Revenue Journal
4. Record purchase on account from vendor = Purchases journal
5. Record payment received from customer = Cash Receipts Journal
6. Record payment made to vendor = Cash Payments Journal
7. Cash payment posting to an individual vendor account = Accounts Payable subsidiary ledger
Explanation:
a. The general journal is used to record all kinds of transactions that occur on a daily, especially if the entity does not operate specialized journals like the Cash receipts, cash payments, purchases, and revenue journals. It records both adjusting and non-adjusting entries.
b. Accounts receivable and payable subsidiary ledgers are used to record individual customers and suppliers transactions which had been recorded in total to the Accounts Receivable and Accounts Payable accounts (as controls) respectively and then enable individual records to be kept.
c. Revenue journal is a specialized journal for recording revenue on account for customers who buy on credit from the entity. As a specialized journal, it usually have one amount column while the total is periodically posted to a control account in the general ledger with individual transactions posted to the subsidiary accounts receivable ledger.
d. Cash Receipts and Payments Journals are also specialized journals for recording receipts from customers and payments to suppliers of merchandise and services. They are similar in outlook like the Revenue Journal.
e. Accounts Payable subsidiary ledger is a secondary ledger for recording individual suppliers' transactions, with their totals already posted to the general ledger (control account). This ledger ensures the maintenance of individual suppliers' records in order to extract their individual balances.
The matching of the transactions with the journal or ledger is shown below.
Matching is as follows:1. Monthly adjustment for supplies used = General Journal
2. Cash receipt posting to an individual customer account = Accounts Receivable subsidiary ledger
3. Record sale on account to customer = Revenue Journal
4. Record purchase on account from vendor = Purchases journal
5. Record payment received from customer = Cash Receipts Journal
6. Record payment made to vendor = Cash Payments Journal
7. Cash payment posting to an individual vendor account = Accounts Payable subsidiary ledger
Learn more about ledger here: https://brainly.com/question/24516871
Brodrick Company expects to produce 20,000 units for the year ending December 31. A flexible budget for 20,000 units of production reflects sales of $400,000; variable costs of $80,000; and fixed costs of $150,000. The company instead produces and sells 26,000 units for the year. Assume that actual sales are $480,000, actual variable costs for the year are $112,000, and actual fixed costs for the year are $145,000.
Prepare a flexible budget performance report for the year.
Answer:
Flexible budget performance report for the year
Sales ($400,000 / 20,000 × 26,000) $520,000
Less Variable Costs ($80,000 / 20,000 × 26,000) ($104,000)
Less Fixed costs ($150,000)
Budgeted Income / (Loss) $266,000
Explanation:
A flexed Budget is a Master Budget that has been adjusted to the Actual number of units produced and sold instead of Budgeted Units.
Note : Fixed Costs will the the same under the Master Budget and the Flexed Budget.
Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in the raw materials account was $24,000 and the ending balance was $44,000. Raw materials purchases during the month totaled $71,000. Manufacturing overhead cost incurred during the month was $115,000, of which $2,800 consisted of raw materials classified as indirect materials. The direct materials cost for May was:
Answer:
$48,200
Explanation:
The computation of the direct material cost for the month of May is shown below:
Direct materials cost = Beginning raw materials inventory + purchases made - Ending balance of raw materials - Indirect materials
= $24,000 + $71,000 - $44,000 - $2,800
= $48,200
Hence, the direct material cost for the month of May is $48,200
A 7X Corp.just paid a dividend of $2.30 per share. The dividend are expected to grow at 23 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 15 percent, what is the price of the stock today?
Answer:
Price of stock=$ 77.88
Explanation:
The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.
The price of the stock will the sum of the present value of the growing annuity and the growing perpetuity
Present value of dividend from year 1 to 8
The PV of the growing annuity = A/r-g) ( 1- (1+g)/(1+r)^n )
A- dividend payable now , r- required of return, g-growth rate, number of years
PV = (2.30×1.23)/(0.15-0.23)× (1- (1.23/1.15)^8) = 25.199
PV of Dividend from year 9 and beyond:
P = D× g/(r-g)
This will be done in two steps:
Step 1: PV(in year 8)of dividend = 2.30× 1.23^8×1.07/(0.15-0.07) = 161.16
Step 2 : PV in year 0 = 161.16× 1.15^(-8)= 52.684
PV of Dividend from year 9 and beyond = 52.684
Price of stock = 25.19 + 52.68= 77.88
Price of stock=$ 77.88
You can now sell 40 cars per month at $20,000 per car, and demand is increasing at a rate of 3 cars per month each month. What is the fastest you could drop your price before your monthly revenue starts to drop
Answer:
More than $1500 price per car per month has to be dropped.
Explanation:
Given:
price per car = $20,000
car sale per month = 40
rate of increase in demand = 3
Solution:
Revenue R = Price × Quantity = P * Q
From the above given data
P = 20,000
Q = 40
R = P*Q
dQ/dt = 3
We have to find the rate at which the price is to be dropped before monthly revenue starts to drop.
R = P*Q
dR/dt = (dP/dt)Q + P(dQ/dt)
= (dP/dt) 40 + 20,000*3 < 0
= (dP/dt) 40 < 60,000
= dP/dt < 60000/40
= dP/dt < 1,500
Hence the price has to be dropped more than $1,500 before monthly revenue starts to drop.
Answer:
For the monthly revenue starts to drop, the price of the car has to drop more than $1500
Explanation:
Given that:
Price of a car = $20,000
quantity = 40
demand rate = 3
the fastest you could drop your price before your monthly revenue starts to drop can be calculated by using the formula
R = P × Q
i.e themontly revenue function R is the product of the price per unit P times the number of units sold Q
Differentiating with respect to time; we have :
[tex]\dfrac{dR}{dt}=(\dfrac{dP}{dt} )Q+P(\dfrac{dQ}{dt})[/tex]
[tex](\dfrac{dP}{dt} )40+20000 \times 3<0[/tex]
[tex](\dfrac{dP}{dt} )40+60000 <0[/tex]
[tex](\dfrac{dP}{dt} )40 <-60000[/tex]
[tex](\dfrac{dP}{dt} ) <\dfrac{-60000}{40}[/tex]
[tex](\dfrac{dP}{dt} ) <-1500[/tex]
Therefore; For the monthly revenue starts to drop, the price of the car has to drop more than $1500
Two firms examined the same capital budgeting project which had an IRR of 16%. One firm accepted the project but the other rejected it. One of the firms must have made an incorrect decision.
Discuss the validity of this statement.
Answer:
the statement is not valid. A company can reject the 16% IRR project if it is less than its discount rate. the discount rate is the minimum acceptable rate at which a project can be accepted. so, if 16% is less than than the discount rate, the project would be rejected.
on the other hand, if the discount rate is less than 16%, the project should be accepted because the return of the project would be greater than the discount rate.
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
Epic Company earned net income of $784,000 this year. The number of common shares outstanding during the entire year was 420,000, and preferred shareholders received a $28,000 cash dividend. Compute Epic company's basic earning per share.
Answer:
The answer is $1.8/share
Explanation:
Basic Earnings Per Share (EPS)= (Net income - preferred shars) ÷ weighted number of outstanding shares
Net income - $784,000
Preferred shares - $28,000
Weighted number of outstanding shares - 420,000 shares
($784,000 - $28,000) ÷ 420,000 shares
= $756,000 ÷ 420,000 shares
= $1.8 per share.
This means that each shareholder has $1.8 per share from the net income of $784,000
Which of the following statements about partnership financial statements is true? The owners’ equity statement is called the partners’ capital statement. Only the total of all partner capital balances is shown in the balance sheet. Details of the distribution of net income are shown in the partners’ capital statement. The distribution of net income is shown on the balance sheet.
Answer: The owners’ equity statement is called the partners’ capital statement.
Explanation:
Partnership is a form of business whereby two or more individuals join their skills and money together in conducting a business.
It should be noted that the owners’ equity statement is called the partners’ capital statement.
The Keynesian link between the money market and the goods and services market is __________. Changes in the money market must affect the __________ market before the goods and services market is affected.
Answer:
Indirect; investment.
Explanation:
John Maynard Keynes was a British economist born on the 5th of June, 1883 in Cambridge, England. He was famous for his brilliant ideas on government economic policy and macroeconomics which is known as the Keynesian theory. He later died on the 23rd of April, 1946 in Sussex, England.
The Keynesian link between the money market and the goods and services market is indirect. Changes in the money market must affect the investment market before the goods and services market is affected.
According to the Keynesian Transmission Mechanism, the link between the money market and the goods and services market is indirect; because at first, short-term interest rates are lowered by an increase in the supply of reserves and then with time both the bond and bank loan rates falls. Consequently, this would make investments and aggregate demand (AD curve shifts rightward) to rise or increase as a result of the low cost of capital for investors and by extension it boost the level of production or quantity of output (real gross domestic product or Real GDP).
This ultimately implies that, the interest rates affects the real and costs of capital (monetary changes).
On May 1, Soriano Co. reported the following account balances along with their estimated fair values:
Carrying Amount Fair Value
Receivables $ 143,600 $ 143,600
Inventory 76,400 76,400
Copyrights 136,000 577,000
Patented technology 913,000 753,000
Total assets $ 1,269,000 $ 1,550,000
Current liabilities $ 197,000 $ 197,000
Long-term liabilities 676,000 658,300
Common stock 100,000
Retained earnings 296,000
Total liabilities and equities $ 1,269,000
On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. To facilitate the merger, Zambrano also paid $141,000 to an investment banking firm.
The following information was also available:
• Zambrano further agreed to pay an extra $85,000 to the former owners of Soriano only if they meet certain revenue goals during the next two years. Zambrano estimated the present value of its probability adjusted expected payment for this contingency at $42,500.
• Soriano has a research and development project in process with an appraised value of $244,000. However, the project has not yet reached technological feasibility and the project’s assets have no alternative future use.
Prepare Zambrano’s journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Receivables (Dr.) $143,600
Inventory (Dr.) $76,400
Copyrights (Dr.) $577,000
Patented Technology (Dr.) $913,000
Goodwill (Dr.) $32,800
Current Liability (Cr.) $197,000
Long term liability (Cr.) $658,300
Cash (Cr.) $845,000
Contingent Consideration (Cr.) $42,500
Professional Fee Expense (Dr.) $141,000
Cash (Cr.) $141,000
Paid of Investment banking firm
Explanation:
Total of Assets 1,710,000
Total of Liabilities 855,300
Net Assets 854,700
Total Fair value of identifiable Assets 854,700
Fair value of contingent Liability 42,500
Consideration Paid as Cash 845,000
Good will $32,800
Mathew bought a home for $245,000 using a 20% down payment. He obtained a 30-year fixed-rate mortgage at six percent (6%)for the remainder of the funds. His monthly principal and interest payment is $1175.12. What will the principal balance on the mortgage be after the second payment is made?
Answer:
Principal Balance at the end of the second payment or year:
$198,350.24
Explanation:
Schedule
start principal start balance interest end balance end principal
1 $196,000.00 $196,000.00 $11,760.00 $208,935.12 $197,175.12
2 $197,175.12 $208,935.12 $12,536.11 $222,646.35 $198,350.24
Cost of Home = $245,000
less down payment = 49,000 (20% of $245,000)
Starting principal = $196,000
Suppose that Best National Bank currently has $150,000 in demand deposits and $97,500 in outstanding loans. The Federal Reserve has set the reserve requirement at 10%.
Reserves=
Required Reserves=
Excess Reserves=
Answer:
Reserves = $52,500
Required Reserves = $15,000
Excess Reserves = $37,500
Explanation:
Reserves of a bank refers to deposits held by the bank that have not be given out as loan. It is deposits minus loan. Reserves of the Best National Bank can therefore be calculated as follows:
Reserves = Demand deposits - Outstanding loans = $150,000 - $97,500 = $52,500
Required Reserves refers to the portion of the deposits of a bank that is legally required by the regulatory to be kept as reserves that cannot be loaned out by the bank. Required Reserves of Best National Bank can be calculated as follows:
Required Reserves = Demand deposits * Reserve requirement = $150,000 * 10% = $15,000
Excess Reserves refers to the reserves held by a bank in excess of its required required reserves. Therefore, excess reserves can be given out as loan by the bank. It is can be calculated as reserve minus required reserve for Best National Bank as follows:
Excess Reserves = Reserves - Required Reserves = $52,500 - $15,000 = $37,500
Based on the above, we have the following for Best National Bank:
Reserves = $52,500
Required Reserves = $15,000
Excess Reserves = $37,500
If actual sales totaled $450,000 for the current year (30,000 units at $15 each) and planned sales were $540,000 (45,000 units at $12 each), the difference between actual and planned sales due to the unit price factor is a.$180,000. b.$45,000. c.$90,000. d.$225,000.
Answer:
Option B, $45,000, is the right answer.
Explanation:
Given actual sales = $450000
Actual units that is sold = 30000 units
Actual selling price = $15 per unit
Planned sales = $540000
Planned units = 45000
Planned selling price = $12 per units.
The difference between actual and planned sales due to unit price factor = change in units × change in price
= (45000 – 30000) × (15 – 12)
= $45000
Thus option B is correct.
Department Y started 675 units during the accounting period. They had a beginning balance in goods in process inventory of 225 units and an ending balance of 150 units. _____ units were completed and transferred out.
a. 750
b. 620
c. 650
d. None of above
Answer:
a. 750
Explanation:
units completed and transferred out = beginning work in process + units started - ending work in progress = 225 units + 675 units - 150 units = 750 units
The number of units completed and transferred out refer to the total number of finished units during a certain period and their cost is referred to as cost of goods manufactured.
A corporation issued 2,500 shares of its no par common stock at a cash price of $11 per share. The entry to record this transaction would be: A. Debit Treasury Stock $27,500; credit Cash $27,500. B. Debit Cash $27,500; credit Common Stock $27,500. C. Debit Common Stock $27,500; credit Cash $27,500. D. Debit Cash $27,500; credit Paid-in Capital in Excess of Par Value, Common Stock $2,500; credit Common Stock $25,000. E. Debit Treasury Stock $2,500; debit Paid-in Capital in Excess of Par Value, Treasury Stock $25,000; credit Common Stock $27,500.
Answer:
B. Debit cash $27,500 ; Credit common stock $27,500
Explanation:
The journal entry to record the transaction is;
Cash account Dr $27,500
(2,500 shares × $11)
To Common stock account Cr $27,500
Cash is an asset hence debited because it decreases as it was used to pay for bills while common stock is credited because it increases shareholder's equity.
Which term is defined as the most appealing trade-off or item given up as the result of an
economic decision?
Increasing cost
Opportunity cost
Recycled trade off
Economic trade off
Answer:
it could be the increase in cost due to economical well-being either the increase in debt or credit
Suppose the demand for macaroni is inelastic, the supply of macaroni is elastic, the demand for cigarettes is inelastic, and the supply of cigarettes is elastic. If a tax were levied on the sellers of both of these commodities, we would expect that the burden of Group of answer choices
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Both taxes would fall more heavily on the buyers than on the sellers.
b) The macaroni tax would fall more heavily on the sellers than on the buyers and the burden of the cigarette tax would fall more heavily on the buyers than on the sellers.
c) The macaroni tax would fall more heavily on the buyers than on the sellers and the burden of the cigarette tax would fall more heavily on the sellers than on the buyers.
d) Both taxes would fall more heavily on the sellers than on the buyers.
And the correct answer is the option A: Both taxes would fall more heavily on the buyers than on the sellers
Explanation:
To begin with, in this situation due to the fact that the demand for both products are inelastic and the supply of both as well are elastic then the change in the price that would happen because of the tax would have an impact that the buyers will feel more than the sellers because they are the one that no matter how much the price changes then the they will keep to consuming the same amount in both cases and that is because their demand are inelastic and therefore that the variation in the price does not change dramastically the variation in the quantity demanded.
Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes.
GOLDEN CORPORATION Comparative Balance Sheets December 31
Current Year Prior Year
Assets
Cash $167,000 $110,300
Accounts receivable 87,500 74,000
Inventory 605,500 529,000
Total current assets 860,000 713,300
Equipment 343,000 302,000
Accum. depreciation—Equipment (159,500) (105,500)
Total assets $1,043,500 $909,800
Liabilities and Equity:
Accounts payable $93,000 $74,000
Income taxes payable 31,000 26,600
Total current liabilities 124,000 100,600
Equity:
Common stock, $2 par value 595,600 571,000
Paid-in capital in excess of par value, common stock 201,400 164,500
Retained earnings 122,500 73,700
Total liabilities and equity $1,043,500 $909,800
GOLDEN CORPORATION Income Statement For Current Year Ended December 31
Sales $1,807,000
Cost of goods sold 1,089,000
Gross profit 718,000
Operating expenses
Depreciation expense $54,000
Other expenses 497,000 551,000
Income before taxes 167,000
Income taxes expense 26,200
Net income $140,800
Additional Information on Current Year Transactions:
Purchased equipment for $41,000 cash.
Issued 12,300 shares of common stock for $5 cash per share.
Declared and paid $92,000 in cash dividends.
Required:
Prepare a complete statement of cash flows: report its cash inflows and cash outflows from operating activities according to the indirect method.
Answer:
Golden Corp.
Statement of Cash Flows for the year ended December 31, using the indirect method:
Net Income before taxes $167,000
Add non-cash expenses:
Depreciation 54,000
Adjustment of current assets:
Accounts receivable (13,500)
Inventory (76,500)
Adjustment of current liabilities:
Accounts payable 19,000
Income taxes payable (4,400)
Net Cash Flow from operations $145,600
Financing Activities:
Common Stock $61,500
Dividend paid 92,000
Net Cash Flow from financing activities $153,500
Investing Activities:
Equipment purchase $41,000
Net Cash Flow from investing activities $41,000
Net Cash Flow $340,100
Explanation:
The Golden Corp.'s statement of cash flows depicts the flow of cash under three main activity headings: operating, financing, and investing. There are two methods under which Golden Corp. can prepare the statement. They include the indirect method, which starts from the net income, adjusts the non-cash expenses and the changes in working capital, and the direct method, which shows the cash inflows and outflows for each cash flow item.
The cash flow for the company is analyzed below:
Net Income before taxes $167,000
Add: non-cash expenses:
Depreciation $54,000
Adjustment of current assets:
Accounts receivable (13,500)
Inventory (76,500)
Adjustment of current liabilities:
Accounts payable 19,000
Income taxes payable (4,400)
Net Cash Flow from operations $145,600
Financing Activities:
Common Stock $61,500
Add: Dividend paid 92,000
Net Cash Flow from financing activities $153,500
Investing Activities:
Equipment purchase $41,000
Net Cash Flow from investing activities $41,000
Net Cash Flow $340,100
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Suppose that you just short sold 100 shares of XYZ stock for $79.00 per share. a. If the initial margin requirement is 60%, how much equity must you invest?
Answer:
$4,740
Explanation:
Equity to invest = Initial margin × shares short sold × Value of stock sold per share
= 60% × 100 × $79
= $4,740
Horton, Reiser, and Associates, a law firm, employs ABC. The following budgeted data for each of the activity cost pools is provided for the year 2016.
Activity Cost Pools Estimated Overhead Expected Use of Cost Drivers per Activity
Researching legal Issues $31,500 900 research hours
Meeting with clients 1,760,000 8,800 professional hours
Preparing legal documents 480,000 30,000 pages
During 2016 the firm worked 660 research hours, prepared 25,000 document pages, and 10,000 professional hours.
Compute the total overhead applied during 2016.
Total overhead applied $_____
Answer:
Total overhead= $2,423,100
Explanation:
Giving the following information:
During 2016 the firm worked 660 research hours, prepared 25,000 document pages, and 10,000 professional hours.
First, we need to calculate the predetermined overhead rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Researching= 31,500/900= $35 per research hour
Meeting with clients= 1,760,000/8,800= $200 per professional hour
Preparing legal documents= 480,000/30,000= $16 per page
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Researching= 35*660= $23,100
Meeting with clients= 200*10,000=$2,000,000
Preparing legal documents= 16*25,000= $400,000
Total overhead= $2,423,100