Answer:
$73,400
Explanation:
The computation of Raw Materials account for the month of November total is shown below:-
Raw Materials account for the month of November = Work in progress inventory - Manufacturing overheads
= ($82,000 - $4,300) - $4,300
= $77,700 - $4,300
= $73,400
Therefore for computing the raw materials we simply applied the above formula.
Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below.
Account Title Debits Credits
Cash 34,900
Accounts receivable 42,600
Supplies 2,800
Inventory 62,600
Notes receivable 22,600
Interest receivable 0
Prepaid rent 2,300
Prepaid insurance 8,600
Office equipment 90,400
Accumulated depreciation 33,900
Accounts payable 33,600
Salaries payable 0
Notes payable 52,600
Interest payable 0
Deferred sales revenue 3,300
Common stock 78,200
Retained earnings 35,000
Dividends 6,600
Sales revenue 159,000
Interest revenue 0
Cost of goods sold 83,000
Salaries expense 20,200
Rent expense 12,300
Depreciation expense 0
Interest expense 0
Supplies expense 2,400
Insurance expense 0
Advertising expense 4,300
Totals 395,600 395,600
Information necessary to prepare the year-end adjusting entries appears below.
Depreciation on the office equipment for the year is $11,300.
Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $1,400.
On October 1, 2021, Pastina borrowed $52,600 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years.
On March 1, 2021, the company lent a supplier $22,600 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022.
On April 1, 2021, the company paid an insurance company $8,600 for a one-year fire insurance policy. The entire $8,600 was debited to prepaid insurance.
$860 of supplies remained on hand at December 31, 2021.
A customer paid Pastina $3,300 in December for 1,400 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
On December 1, 2021, $2,300 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,150 per month. The entire amount was debited to prepaid rent.
Required:
Prepare an adjusted trial balance.
Answer:
Account Title Debits Credits
Cash 34,900
Accounts receivable 42,600
Supplies 860
Inventory 62,600
Notes receivable 22,600
Interest receivable 1,507
Prepaid rent 1,150
Prepaid insurance 2,150
Office equipment 90,400
Accumulated depreciation 45,200
Accounts payable 33,600
Salaries payable 1,400
Notes payable 52,600
Interest payable 1,578
Deferred sales revenue 3,300
Common stock 78,200
Retained earnings 35,000
Dividends 6,600
Sales revenue 159,000
Interest revenue 1,507
Cost of goods sold 83,000
Salaries expense 21,600
Rent expense 13,450
Depreciation expense 11,300
Interest expense 1,578
Supplies expense 4,340
Insurance expense 6,450
Advertising expense 4,300
Totals 411,385 411,385
Insurance expense
= 8,600 * 9/12 months = $6,450
Prepaid Insurance = 8.600 - 6,450 = $2,150
Supplies expense = 2,400 + (2,800 - 860) = $4,340
Interest expense and Interest payable = 12% * 3/12 * 52,600 = $1,578
Rent = 12,300 + 1,150 = $13,450
Interest revenue = 22,600 + 8% * 10/12 months = $ 1,507
Accumulated depreciation = 33,900 + 11,300 = $45,200
On January 1, Merry Walker and other stockholders established a catering service. Listed below are accounts to use for transactions (a) through (f), each identified by a number. Following are the transactions that occurred in Walker's first month of operations. You need to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box (if more than one account is applicable, enter the numbers separated by a comma and without any space e.g. "1,3").
1. Cash
2. Accounts Receivable
3. Supplies
4. Prepaid Insurance
5. Equipment
6. Truck
7. Notes Payable
8. Accounts Payable
9. Common Stock
10. Dividends
11. Fees Earned
12. Wages Expense
13. Rent Expense
14. Utilities Expense
15. Truck Expense
16. Miscellaneous Expense
17. Insurance Expense
a. TransactionsAccount(s) DebitedAccount(s) Crediteda. Recorded jobs completed on account and sent invoices to customers.
b. Received an invoice for truck expenses to be paid in February.
c. Paid utilities expense
d. Received cash from customers on account.
e. Paid employee wages.
f. Paid dividends to stockholders.
What will be an ideal response?
Answer:
Transactions Account Debited Account Credited
a. Recorded jobs completed on 2 11
account and sent Invoices to
customers
b. Received an invoice for truck 15 8
expense to be paid in February
c. Paid utilities expense. 14 1
d. Received cash from customers on 1 2
account.
e. Paid employee wages. 12 1
S/n Transaction no Journal entry
a. Accounts receivable a/c Dr
To fees earned a/c Cr
b. Truck expense a/c Dr
To accounts payable a/c Cr
c. Utilities a/c Dr
To cash a/c Cr
d. Cash a/c Dr
To accounts receivable a/c Cr
e. Wages Expenses Dr
To Account Payable a/c Cr
what is marginal utility
Dixon Shuttleworth has been offered the choice of three retirement-planning investments. The first investment offers a 5 percent return for the first 5 years, a 10 percent return for the next 5 years, and a 20 percent return thereafter. The second investment offers 10 percent for the first 10 years and 15 percent thereafter. The third investment offers a constant 12 percent rate of return. Determine, for each of the given number of years, which of these investments is the best for Dixon if he plans to make one payment today into one of these funds and plans to retire in the following number of years.
a. 15 years
b. 20 years
c. 30 years
Answer:
a. If you plan to retire in 15 years, you should accept the third investment plan.
b. If you plan to retire in 20 years, you should accept the first investment plan.
c. If you plan to retire in 30 years, you should accept the first investment plan.
Explanation:
Assuming that Dixon invests $100 today:
1) value of first investment offer:
15 years
$100 x 1.05⁵ = $127.63
$127.63 x 1.1⁵ = $205.55
$205.55 x 1.2⁵ = $511.47
20 years
$100 x 1.05⁵ = $127.63
$127.63 x 1.1⁵ = $205.55
$205.55 x 1.2¹⁰ = $1,272.69
30 years
$100 x 1.05⁵ = $127.63
$127.63 x 1.1⁵ = $205.55
$205.55 x 1.2²⁰ = $7,880.16
2) value of second investment offer:
15 years
$100 x 1.1¹⁰ = $259.37
$259.37 x 1.15⁵ = $521.69
20 years
$100 x 1.1¹⁰ = $259.37
$259.37 x 1.15¹⁰ = $1,049.31
30 years
$100 x 1.1¹⁰ = $259.37
$259.37 x 1.15²⁰ = $4,245.06
3) value of third investment offer:
15 years
$100 x 1.12¹⁵ = $547.36
20 years
$100 x 1.12²⁰ = $964.63
30 years
$100 x 1.12³⁰ = $2,995.99
For each scenario, decide whether it creates a producer or a consumer surplus. Then, calculate the ensuing surplus.
Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off which she found online. She selects and purchases a pair of jeans which cost $35 pre-discount.
Alice's____________ surplus:
Jeff finds some steaks for $16 for which he would have been willing to pay $20 . The butcher notices the meat is near the expiration date and gives him an extra 75 % off.
Jeff's________ surplus
Nicole has a hockey puck from the 2018 Winter Olympic Games and puts it up for sale on eBay. She will only sell the puck if the winning bid is greater than or equal to $500 . After bidding closes, the last bid stands at $501.
Nicole's____________ surplus
Answer:
Alice's consumer surplus = $5
Jeff's consumer surplus = $16
Nicole's producer surplus = $1
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of a good.
Consumer surplus = willingness to pay - price of the good
Producer surplus is the difference between the price of a good and the least price the producer is willing to accept
Producer surplus = price of the good - least price the producer is willing to accept
Alice's consumer surplus = $30 - ($35 - $10) = $5
Jeff's consumer surplus = $20 - [$16 - (0.75 x $16)] = $16
Nicole's producer surplus = $501 - $500 = $1
Darnell and Eleanor are building their portfolios. Darnell purchases shares in a mutual fund and pays fees to a manager who actively manages the mutual fund's portfolio. He does so because he believes that the manager can identify inexpensive stocks that will rise in value. Eleanor is not convinced. She buys shares in an index fund—a type of mutual fund that simply buys all of the stocks in a given stock index rather than actively managing a portfolio. Eleanor builds her portfolio based on the notion that:
a. All stocks are overvalued.
b. The stock market exhibits informational efficiency.
c. Stock analysts can use fundamental analysis to identify undervalued stocks.
Answer:
b. The stock market exhibits informational efficiency.
Explanation:
According to the efficient market hypothesis, it is believed that share prices reflect all information and consistent alpha generation is impossible. So, if Eleanor buys shares from an index fund, she believes shares are efficiently priced.
On the other hand, Darnell is buying under valued stocks with the hopes of earning a positive alpha
Sales Budget Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $475, and the S12L5 sells for $300. Projected sales (number of speakers) for the coming five quarters are as follows:
$12L7 $12L5
First quarter, 20Y1 800 1,300
Second quarter, 20Y1 2,200 1,400
Third quarter, 20Y1 5,600 5,300
Fourth quarter, 20Y1 4,600 3,900
First quarter, 20Y2 900 1,200
The vice president of sales believes that the projected sales are realistic and can be achieved by the company.
Required:
1. Prepare a sales budget for each quarter of 20Y1 and for the year in total. Show sales by product and in total for each time period. Do not include a multiplication symbol as part of your answer.
Stillwater Designs
Sales Budget
For the Year Ended December 31, 20Y1
1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Total
$12L7:
Units
Price
Sales
$12L5:
Units
Price
Sales
Total sales
How will Stillwater Designs use this sales budget?
1. Stillwater Designs will use the sales budget in planning as the basis for the production budget.
2. The company can also compare actual sales against the budget to see if expectations were achieved.
3. Both 1 and 2.
4. None of the above.
Answer:
1) Stillwater Designs
Sales Budget
For the year ended December 31, 20y1
Q1Y1 Q2Y1 Q3Y1 Q4Y1 Total
S12L7:
Units sold 800 2,200 5,600 4,600 13,200
Unit price $475 $475 $475 $475 $475
Revenue $380,000 $1,045,000 $2,660,000 $2,185,000 $6,270,000
S12L5:
Units sold 1,300 1,400 5,300 3,900 11,900
Unit price $300 $300 $300 $300 $300
Revenue $390,000 $420,000 $1,590,000 $1,170,000 $3,570,000
Total $770,000 $1,465,000 $4,250,000 $3,355,000 $9,840,000
sales
2) How will Stillwater Designs use this sales budget?
3. Both 1 and 2.
1. Stillwater Designs will use the sales budget in planning as the basis for the production budget. 2. The company can also compare actual sales against the budget to see if expectations were achieved.A sales budget serves two basic purposes:
It serves as a planning tool in order to prepare a production budget and a cash collections budget. It also serves as a control tool since management can use them to control the performance of different diversions, e.g. obviously it sets the goals for marketing and sales division, but it is also useful when controlling perceived product quality.Consider the following case of Happy Turtle Transportation Company:
Suppose Happy Turtle Transportation Company is considering a project that will require $300,000 in assets.
The project is expected to produce earnings before interest and taxes (EBIT) of $55,000.
Common equity outstanding will be $30,000 shares.
The company incurs a tax rate of 40%.
1. If the project is financed using 100% equity capital, then Happy Turtle Transportation Company’s return on equity (ROE) on the project will be 11.55% / 10.45% / 13.20% / 11.00%. In addition, Happy Turtle’s earnings per share (EPS) will be$ 0.99 / $ 1.10 / $ 1.21 / $0.94 / $ 1.05.
2. Alternatively, Happy Turtle Transportation Company’s CFO is also considering financing the project with 50% debt and 50% equity capital. The interest rate on the company’s debt will be 13%. Because the company will finance only 50% of the project with equity, it will have only 15,000 shares outstanding. Happy Turtle Transportation Company’s ROE and the company’s EPS will be ???? if the management decides to finance the project with 50% debt and 50% equity.
14.20% and $ 1.42, respectively
14.91% and $ 1.35, respectively
17.04% and $ 1.63, respectively
16.33% and $ 1.56, respectively
3. When a firm uses debt financing, the business risk exposure for the firm’s common shareholders will increase / decrease.
Answer: Check attachment
Explanation:
1. Based on the calculations on the attachment, the return on equity is 11% and the earning per share is $1.1.
2. Return on equity is 14.20% and the earning per share is $1.42.
3. The business risk exposure for the common area shareholders of the firm will increase when debt financing is used by the firm.
Check the attachment for further details
Emily, who is single, has been offered a position as a city landscape consultant. The position pays $153,800 in cash wages. Assume Emily has no dependents. Emily deducts the standard deduction instead of itemized deductions, and she is not eligible for the qualified business income deduction. (Use the tax rate schedules.) (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Required:
a. What is the amount of Emily’s after-tax compensation (ignore payroll taxes) and his income tax liability?
b. Suppose Rick receives a competing job offer of $102,500 in cash compensation and nontaxable (excluded) benefits worth $4,900.
c. What is the amount of Emily’s after-tax compensation (ignore payroll taxes) and his income tax liability?
Answer:
a) using the 2020 tax schedule:
Emily's taxable income = $153,800 - $12,200 = $141,600
Emily's tax liability = $14,605.50 + [($141,600 - $85,525) x 24%] = $28,063.50
Emily's after tax compensation = $153,800 - $28,063.50 = $125,736.50
b and c ) if Emily (or Rick?) get a $102,500 offer that includes benefits worth $4,900 that are not taxable:
taxable income = $102,500 - $12,200 = $90,300
tax liability = $14,605.50 + [($90,300 - $85,525) x 24%] = $15,751.50
after tax compensation = $102,500 - $15,751.50 + $4,900 = $91,648.50
It can be deduced that the amount of Emily’s after-tax compensation will be $135784.50.
How to calculate the after-tax compensationGross income = $153800
AGI deduction = 0
Adjusted gross income = $153800
Standard deduction = $12400
Taxable income = $141400
Income tax liability= $28015.50
After tax compensation = $135784.50
When Rick receives a competing job offer of $102,500 in cash compensation and nontaxable benefits worth $4,900, the amount of Emily’s after-tax compensation will be:
Gross income = $144000
AGI deduction = 0
Adjusted gross income = $144000
Standard deduction = $12400
Taxable income = $131600
Income tax liability= $25663.50
After tax compensation = $128136.50
Learn more about tax on:
https://brainly.com/question/25783927
While many others dreamed about owning their own business, Holly Gabrel decided to do something about it. Holly knew that being self-employed required long hours and hard work, but with the help of her husband, Trent, Holly was positive that the hours and the work would be rewarded. First, she and Trent developed a new concept in sunglasses that could be used by athletes better than the sunglasses now on the market. Holly and Trent obtained a patent on their invention, and began production and marketing. With the entrepreneurial personality, Holly can be expected to have all of the following traits except:
a. mission or vision of the company.
b. information about the suppliers.
c. policy for extending credit to customers.
d. analysis of critical risks that threaten success.
e. all of these should be included.
Answer:
e. all of these should be included.
Explanation:
These listed items are not entrepreneurial personality traits. Holly is not expected to have any of them as traits because they are not. Personality traits are human characteristics, which propel Holly as an entrepreneur to take entrepreneurial risks. They include Creativity, Risk-taking, Passion, Planning, Social Skills, Open-mindedness, Decisiveness, Positivity, etc. Holly abundantly possesses them.
Once a week, Smith purchases a six-pack of cola and puts it in his refrigerator for his two children. He invariably discovers that all six cans are gone on the first day. Jones also purchases a six-pack of cola once a week for his two children, but unlike Smith, he tells them that each may drink no more than three cans. If the children use cost-benefit analysis each time they decide whether to drink a can of cola, explain why the cola lasts much longer at Jones's house than at Smith's.
Answer:
Jones purchases a six-pack of cola once a week for his two children, but unlike Smith, he tells them that each may drink no more than three cans.
Explanation:
Cost-benefit analysis is defined as a method to estimate all the costs involved and possible profits that can be achieved in a business opportunity.
Jones purchases a six-pack of cola once a week for his two children, but unlike Smith, he tells them that each may drink no more than three cans.
So, at Smith's house, there's always a chance that one of the siblings will drink the cola before the other.
Therefore,
cola can lasts much longer at Jones's house than at Smith's.
You recently graduated from Empire State University with a degree in Marketing. You loved your time at Empire State, and have made numerous friendships with faculty members, current students, and community members. Because of this, you want to remain in your college town and achieve your dream of opening your own coffee shop, The Daily Grind. Before you can open your business, you know that you need to divide the market into segments, to develop customer profiles in order for you to determine which segment of the market you want to target. You have decided to focus on a handful of variables that represent all four market segmentation bases (demographic, geographic, psychographic, behavioral). In one or more fully formed paragraphs, identify and explain at least one variable within each base of market segmentation that should be used to segment the market to create a customer profile of patrons appropriate for The Daily Grind.
Answer and Explanation:
Demographic: the demographic aspect in looking at market segmentation variables in his coffee business would consider such things as age brackets, gender and different groups of population that would be interested in what his business aims to offer. Individuals who are in the older age brackets such as from 30-70 would be interested in coffee. Also these individuals are usually educated
Geographic:
This variable would consider where consumers are located geographically. Therefore are customers able to access the coffee shop easily I'm terms of proximity. How convenient is it to move to to the coffee shop from the customers location?
Psychographic:
what is customers attitudebor lifestyle ? Are customers thorough about the kind of coffee they want. Will customers accept to pay higher for higher quality coffee.
Behavioral: customers may consider the coffee shop a relaxation spot or a place to hangout with friends and family while enjoying a nice cup of coffee. What does this group do most and associate coffee with?
Which CRM method measures the frequency of a customer’s purchase and records the customer’s last visit?
decision tree
B.
web analytics
C.
RFM analysis
D.
loyalty programs
Answer:
RFM analysis
Explanation:
An RFM analysis evaluates clients and customers by scoring them in three categories: how recently they've made a purchase, how often they buy, and the size of their purchases.
Answer:
Its C
Explanation: I got it right so you should too
Savant Homes, Inc., is a custom home designer and builder. Using what it called the Anders Plan, Savant built a model house in Windsor, Colorado. This was a ranch house with two bedrooms on one side and a master suite on the other, separated by a combined family room, dining room, and kitchen. Ron and Tammie Wagner toured the Savant house. The same month, the Wagners hired builder Douglas Collins and his firm, Douglas Consulting, to build a house for them. After it was built, Savant filed a lawsuit in a federal district court against Collins for copyright infringement, alleging that the builder had copied the Anders Plan in the design and construction of the Wagner house. Collins showed that the Anders Plan consisted of standard elements and standard arrangements of elements. In these circumstances, has infringement occurred? Explain.
Answer and Explanation:
There is no copyright infringement here. Savant homes had not taken a copyright protection for the design prior to this time. Also in the case it was found that the design is not in fact a unique design by Savant homes as it is used widely and was common before savant homes used it. And so it was a dummy model for everyone to copy from. Therefore the infringement was considered invalid as there was no ground for savant homes to claim it as am intellectual property
Suppose you are the information technology (IT) manager for an IT company. You receive a report that contains a list of computer equipment stored in the company warehouse. You notice that the list also includes items that you know are not stored in the warehouse. Would you consider this list as good information? Why, or why not? Give some examples of at least three items on this list that you consider to be good information and at least three items on this list that would not be good information. Explain your reasoning, and include a discussion about why good information is important in management information systems (MIS).
Answer:
The summary including its query given is mentioned beneath.
Explanation:
The collection includes products which are housed throughout the warehouse, and even some products which have not been housed in the warehouse. Given that perhaps the document appears expected to contain a collection of stock in the warehouse, I would assume that even this documentation isn't really pleasant. That's because each list would rank very poorly whenever it comes to data accuracy.
Most of the other things which could be regarded strong data mostly on list seem to be:
Collection of products that would be in the warehouse throughout fact. The list becomes more certainly exhaustive as well as coincides with the intent of preparation. The number of objects would surpass the confidence interval which, in comparative purposes, have a buffer.The list still has pitfalls, and many of the things that would be deemed poor knowledge have become:
Name and sometimes acknowledgement of products that weren't in the warehouse through fact. Wrong estimate including its variety of products. Details should never be used for this same real-time estimation of storage facility-related data.In MIS, accurate knowledge is crucial because MIS offers an interlinked mechanism amongst servers and applications that lets organizations making informed decisions, support processes, and the organization structure of support. If the evidence is not strong, so inaccurate decisions based through mistaken conclusions will interfere throughout the decision-making process. As a consequence, performance, effect and potential loss of sales may be lost.
Hults Corporation has provided data concerning the company's Manufacturing Overhead account for the month of November. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $75,150 and the total of the credits to the account was $66,900. Which of the following statements is true?
A. Manufacturing overhead applied to Work in Process for the month was $68,800.B. Manufacturing overhead for the month was underapplied by $8,000.C. Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $68,800.D. Actual manufacturing overhead incurred during the month was $60,800.
Answer:
Manufacturing overhead for the month was underapplied by $8,250.
Explanation:
Since in the question it is mentioned that the total debits of manufacturing overhead is $75,150 and the total credits of manufacturing overhead is $66,900
So the difference is of
= $75,150 - $66,900
= $8,250
This amount would be reflected as an underapplied overhead
This is the answer and the same is to considered
The all options that are given are wrong.
Trial Balance September 30, 2022
Debit Credit
Cash $23,640
Accounts Receivable 7,040
Supplies 4,270
Equipment 10,170
Accounts Payable $9,240
Unearned Service Revenue 3,270
Common Stock 19,440
Retained Earnings 13,170
$45,120 $45,120
The October transactions were as follows.
Oct. 5 Received $1,310 in cash from customers for accounts receivable due.
10 Billed customers for services performed $5,410.
15 Paid employee salaries $1,110.
17 Performed $580 of services in exchange for cash.
20 Paid $1,830 to creditors for accounts payable due.
29 Paid a $250 cash dividend. 31 Paid utilities $420.
Required:
Prepare a general ledger using T-accounts.
Answer:
T- accounts:
Cash
Date Account Title Debit Credit
Oct. 1 Balance $23,640
Oct. 5 Accounts receivable 1,310
Oct. 15 Salaries $1,110
Oct. 17 Service Revenue 580
Oct. 20 Accounts Payable 1,830
Oct. 29 Dividend 250
Oct. 31 Utilities 420
Accounts Receivable
Date Account Title Debit Credit
Oct. 1 Balance $7,040
Oct. 5 Cash $1,310
Oct. 10 Service Revenue 5,410
Supplies
Date Account Title Debit Credit
Oct. 1 Balance $4,270
Equipment
Date Account Title Debit Credit
Oct. 1 Balance $10,170
Accounts Payable
Date Account Title Debit Credit
Oct. 1 Balance $9,240
Oct. 20 Cash 1,830
Unearned Service Revenue
Date Account Title Debit Credit
Oct. 1 Balance $3,270
Common Stock
Date Account Title Debit Credit
Oct. 1 Balance $19,440
Retained Earnings
Date Account Title Debit Credit
Oct. 1 Balance $13,170
Service Revenue
Date Account Title Debit Credit
Oct. 10 Accounts receivable $5,410
Oct. 17 Cash 580
Salaries Expense
Date Account Title Debit Credit
Oct. 15 Cash $1,110
Dividend
Date Account Title Debit Credit
Oct. 30 Cash $250
Utilities Expense
Date Account Title Debit Credit
Oct. 30 Cash $420
Explanation:
a) Data and Calculations:
Trial Balance September 30, 2022
Account Title Debit Credit
Cash $23,640
Accounts Receivable 7,040
Supplies 4,270
Equipment 10,170
Accounts Payable $9,240
Unearned Service Revenue 3,270
Common Stock 19,440
Retained Earnings 13,170
$45,120 $45,120
b) Journal Entries:
Oct. 5:
Debit Cash $1,310
Credit Accounts Receivable $1,310
To record cash receipts from customers.
Oct. 10:
Debit Accounts Receivable $5,410
Credit Service Revenue $5,410
To record service revenue.
Oct. 15:
Debit Salaries Expense $1,110
Credit Cash Account $1,110
To record payment of salaries.
Oct. 17:
Debit Cash Account $580
Credit Service Revenue $580
To record performance of services for cash.
Oct. 20:
Debit Accounts Payable $1,830
Credit Cash Account $1,830
To record the payment of cash on account
Oct. 29:
Debit Dividend $250
Credit Cash Account $250
To record the payment of cash dividend.
Oct. 31:
Debit Utilities $420
Credit Cash Account $420
To record the payment for Utilities.
Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows:
Activity Activity Rate
Fabrication $28 per machine hour
Assembly $20 per direct labor hour
Setup $75 per setup
Inspecting $30 per inspection
Production scheduling $12 per production order
Purchasing $8 per purchase order
The activity-base usage quantities and units produced for each product were as follows:
Elliptical
Activity Base Machines Treadmills
Machine hours 700 600
Direct labor hours 182 64
Setups 20 15
Inspections 10 16
Production orders 30 20
Purchase orders 56 75
Units produced 400 250
Required:
Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for each product. Complete the Activity Tables for elliptical machines and treadmills. If required, round per-unit answers to the nearest cent.
Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for elliptical machines product. Complete the Activity Table for elliptical machines. If required, round per-unit answers to the nearest cent.
Elliptical Machines
Activity Activity- Base Usage X Activity Rate = ActivityCost
Fabrication
Assembly
Setup
Inspecting
Production scheduling
Purchasing
Total activity cost
Number of units /
Activity cost per unit
Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for treadmill product. Complete the Activity Table for treadmills. If required, round per-unit answers to the nearest cent.
Treadmills
Activity Activity- Base Usage X Activity Rate = ActivityCost
Fabrication
Assembly
Setup
Inspecting
Production scheduling
Purchasing
Total activity cost
Number of units /
Activity cost per unit
Answer:
Elliptical machines
Activity Activity
Activity Usage Rate Cost
Fabrication 700 28 19600
Assembly 182 20 3640
Setup 20 75 1500
Inspecting 10 30 300
Product Scheduling 30 12 360
Purchasing 56 8 448
Total 25848
Activity cost per unit = Total Activity cost / Number of Units = $25,848 / 400
Activity cost per unit = $64.62
Treadmills
Activity Activity
Activity Usage Rate Cost
Fabrication 600 28 16800
Assembly 64 20 1280
Setup 15 75 1125
Inspecting 16 30 480
Product Schedulling 20 12 240
Purchasing 75 8 600
Total 20525
Activity cost per unit = Total Activity cost / Number of Units = $20525 / 250
Activity cost per unit = $82.1
Instructions
1. On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following transactions during the month Oct Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $40,000.
2. Paid rent on office and equipment for the month, $4,800.
3. Purchased supplies on account, $2,150.
4. Paid creditor on account, $1,100
5. Earned sales commissions, receiving cash, $18,750.
6. Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800
7. Paid office salaries, $3,500
8. Determined that the cost of supplies used was $1,300 9 Paid dividends, $1,500
1. Journalize entries for transactions Oct. 1 through 9. Refer to the Chart of Accounts for exact wording of account tities.
2. Post the journal entries to the Taccounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance
3. Prepare an unadjusted trial balance as of October 31, 2018.
4. Determine the following:
a. Amount of total revenue recorded in the ledger
b. Amount of total expenses recorded in the ledger.
c. Amount of net income for October.
5. Determine the increase or decrease in retained earnings for October.
Answer:
Attached below is the required tables for questions 1 to 3
4) a)Amount of total revenue recorded in ledger = $18750
b)Amount of expenses recorded in ledger = $13480
c)Amount of net income for October = Total revenue - expenses
= $18750 - $13480 = $5270
5) The increase in retained earnings for October = $5270
Explanation:
4) a)Amount of total revenue recorded in ledger = $18750
b)Amount of expenses recorded in ledger = $13480
c)Amount of net income for October = Total revenue - expenses
= $18750 - $13480 = $5270
5) The increase in retained earnings for October = $5270
attached below is the required tables for questions 1 to 3
ZigZag Cola produces a lemon-lime soda. The production process starts with workers mixing the lemon syrup and lime flavors in a secret recipe. The company enhances the combined syrup with caffeine. Finally, the company dilutes the mixture with carbonated water. ZigZag Cola incurs the following costs (in thousands):
Plant janitors' wages $ 900
Delivery truck drivers' wages $ 275
Payment for new recipe $ 1,300
Depreciation on delivery trucks $ 175
Plant utilities $ 650
Lime flavoring $ 1,180
Rearranging plant layout $ 1,600
Bottles $ 1,040
Salt 50
Sales commissions $ 325
Production costs of "cents-off' store coupons for customers $ 770
Lemon syrup $ 16,000
Replace products with expired dates upon customer complaint $ 70
Depreciation on plant and equipment $ 2,700
Wages of workers who mix syrup $ 7,800
Customer hotline $ 180
Freight-in on materials $ 2,000
Requirements 1, 2 and 3. Classify each of these costs according to its category in the value chain and further break down production costs into three subcategories: Direct Materials (DM), Direct Labor (DL), or Manufacturing Overhead (MOH). Compute the total costs for each value chain category.
Answer:
Zig Zag Cola
1. Classification of costs according to their category in the value chain:
a. Inbound logistics (relationship with suppliers):
New recipe $ 1,300
Lime flavoring $ 1,180
Bottles $ 1,040
Salt $ 50
Lemon syrup $ 16,000
Freight-in on materials $ 2,000
Total cost of Inbound logistics = $21,500
b. Operations:
Wages of workers who mix syrup $ 7,800
Plant janitors' wages $ 900
Plant utilities $ 650
Rearranging plant layout $ 1,600
Depreciation on plant & equipment $ 2,700
Total cost of Operations = $13,650
c. Outbound logistics:
Delivery truck drivers' wages $ 275
Depreciation on delivery trucks $ 175
Total outbound logistics cost $450
d. Marketing and sales:
Customer hotline $ 180
Sales commissions $ 325
Sales coupons for customers $ 770
Total marketing and sales cost $1,275
e. Service:
Customer hotline $ 180
Sales coupons for customers $ 770
Product Replacement $ 70
Total costs of Services $1,020
2. Subcategories of Production Costs:
Direct Materials:
New recipe $ 1,300
Lime flavoring $ 1,180
Bottles $ 1,040
Salt $ 50
Lemon syrup $ 16,000
Freight-in
on materials $ 2,000
Cost of materials $21,500
Direct Labor:
Wages of workers who mix syrup $ 7,800
Total cost of direct labor $ 7,800
Manufacturing Overheads:
Plant janitors' wages $ 900
Plant utilities $ 650
Rearranging plant layout $ 1,600
Depreciation on plant & equipment $ 2,700
Total Overheads $ 5,85
Explanation:
a) Data and Calculations:
Costs incurred (in thousands)
Direct Materials:
New recipe $ 1,300
Lime flavoring $ 1,180
Bottles $ 1,040
Salt $ 50
Lemon syrup $ 16,000
Freight-in
on materials $ 2,000
Cost of materials $21,500
Direct Labor:
Wages of workers who mix syrup $ 7,800
Total cost of direct labor $ 7,800
Manufacturing Overheads:
Plant janitors' wages $ 900
Plant utilities $ 650
Rearranging plant layout $ 1,600
Depreciation on plant & equipment $ 2,700
Overheads $ 5,850
Selling and Distribution Expenses:
Depreciation on delivery trucks $ 175
Delivery truck drivers' wages $ 275
Sales commissions $ 325
Customer hotline $ 180
Sales coupons for customers $ 770
Product Replacement $ 70
Selling and Distribution costs $1,795
b) ZigZag's value chain activities, according to Michael Porter, include inbound logistics, operations, outbound logistics, marketing and sales, and service. These activities create value that exceeds their cost for the purpose of generating a higher profit. In a similar way, ZigZag's production costs can be categorized into direct materials, direct labor, and manufacturing overhead.
Degelman Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2014, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $22,600, direct labor $13,560, and manufacturing overhead $18,080. As of January 1, Job No. 49 had been completed at a cost of $101,700 and was part of finished goods inventory. There was a $16,950 balance in the Raw Materials Inventory account.
During the month of January, Deglman Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $137,860 and $178,540, respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $101,700 on account.
2. Incurred factory labor costs of $79,100. Of this amount $18,080 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $19,210; indirect labor $22,600; depreciation expense on equipment $21,470; and various other manufacturing overhead costs on account $18,080.
4. Assigned direct materials and direct labor to jobs as follows.
Job No. Direct Materials Direct Labor
50 $11,300 $5,650
51 44,070 28,250
52 33,900 22,600
1. Calculate the pre-determined overhead rate for 2014, assuming Degelman Company estimates total manufacturing overhead costs of $1,107,400, direct labor costs of $791,000, and direct labor hours of 22,600 for the year.
2. Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January.
3. Prepare the journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a).
4. Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month.
5. Prepare the journal entry (or entries) to record the sale of any job(s) during the month. What is the balance in the Finished Goods Inventory account at the end of the month? What is the amount of over- or underapplied overhead?
Answer:
Degelman Company
1. Predetermined overhead rate for 2014 = Total manufacturing overhead/total direct labor costs
= $81,360/$79,100
= $1.03 per direct labor cost
2. Journal Entries to record the purchase of raw materials, factory labor costs incurred, and the manufacturing overhead costs:
Debit Raw materials $101,700
Credit Accounts Payable $101,700
To record the purchase of raw materials in January, 2014.
Debit Factory labor $79,100
Credit Wages & Salaries Expense $79,100
To Wages Expense to factory labor.
Debit Manufacturing overhead $81,360
Credit Raw materials $19,210
Credit Wages & Salaries expense $22,600
Credit Depreciation expense on equipment $21,470
Credit Accounts Payable $18,080
To record manufacturing overhead costs.
To record manufacturing overhead costs
3a. Debit Job 50 $11,300
Debit Job 51 $44,070
Debit Job 52 $33,900
Credit Raw materials $89,270
To assign raw materials to Jobs.
3b. Debit Job 50 $5,650
Debit Job 51 $28,200
Debit Job 52 $22,600
Credit Factory labor $56,450
To assign direct labor to Jobs.
3c. Debit Job 50 $5,820
Debit Job 51 $29,046
Debit Job 52 $23,278
Credit Manufacturing overhead $58,144
To assign manufacturing overheads to Jobs using the predetermined rate.
4. Job 50 Job 51
Beginning balance $54,240
Raw materials $11,300 $44,070
Direct labor $5,650 28,200
Overhead $5,820 29,046
Total costs $77,010 $101,316
Journal Entries:
Debit Finished Goods Inventory $178,326
Credit Job 50 $77,010
Credit Job 51 $101,316
To record the completion of Jobs 50 and 51.
5. Debit Cost of Goods Sold $178,710
Credit Finished Goods Inventory $178,710
To record the cost of goods sold (Jobs 49 and 50)
Debit Cash (Job 49) $137,860
Debit Accounts Receivable (Job 50) $178,540
Credit Sales Revenue $316,400
To record the sale of Jobs 49 and 50.
5b. Balance in the Finished Goods Inventory account is: $181,094
Job 51 Job 52
Raw materials $44,070 $33,900
Direct labor $28,200 22,600
Overhead $29,046 23,278
Total costs $101,316 $79,778
5c. Over- or underapplied overhead:
Actual overhead costs incurred $81,360
Applied overhead costs $58,144
Underapplied overhead costs $23,216
Explanation:
a) Data and Calculations:
Jan. 1, 2014: Job 50 in process
Job 50 costs:
Direct materials $22,600
Direct labor $13,560
Manufacturing overhead $18,080
Balance = $54,240
Job 49 completed at a cost of $101,700
Raw Materials Inventory = $16,950
Started production on Jobs 51 and 52
Completed Jobs 50 and 51
Sales:
Job 49 = $137,860
Job 50 = $178,540 sold on account
Additional events:
1. Purchase of raw materials $101,700 on account
2. Incurred Factory labor = $79,100
Employer payroll taxes 18,080
Net Factory labor = $61,020
3. Incurred manufacturing overhead:
Indirect materials $19,210
Indirect labor $22,600
Depreciation expense on equipment $21,470
Other manufacturing overhead costs $18,080 on account
Total manufacturing overhead costs $81,360
4. Assigned direct materials, direct labor, and overhead to Jobs:
Job No. Direct Materials Direct Labor Manufacturing Overhead Total
50 $11,300 $5,650 $5,820 ($1.03 * $5,650)
51 44,070 28,200 $29,046 ($1.03 * $28,200)
52 33,900 22,600 $23,278 ( ($1.03 * $22,600)
Total $89,270 $56,450 $58,144
Larned Corporation recorded the following transactions for the just completed month. $78,000 in raw materials were purchased on account. $76,000 in raw materials were used in production. Of this amount, $64,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $121,000 were paid in cash. Of this amount, $103,400 was for direct labor and the remainder was for indirect labor. Depreciation of $197,000 was incurred on factory equipment.
Required:
Record the above transactions in journal entries.
Answer and Explanation:
The journal entries are shown below:
1. Raw material inventory A/c Dr.$78,000
To accounts payable $78,000
(To record raw material purchased)
2. Work in process inventory A/c Dr. $64,000
Manufacturing overhead A/c Dr. $12,000
To Raw material inventory Cr. $76,000
(To record the raw material requisitioned is recorded)
3. Work in Process $103,400
Manufacturing overhead $17,600
To Cash $121,000)
(Being the cash paid is recorded)
4. Manufacturing overhead $197,000
To Accumulated Depreciation - equipment $197,000
(Being the depreciation incurred on factory equipment is recorded)
The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. a. Costs except depreciation The forecasted costs except depreciation will be
Answer and Explanation:
Stockholders' equity next year = current stockholders equity + forecasted dividend
Given that sales is forecasted to grow by 8% next year and 50% is paid out
Given that current stockholders' equity =$22.2(millions)
Forecasted sales next year= $185.8(sale this year) * 1.08= $200.944 million
Forecasted net income = $200.644*0.009688= $1.9438
Given 50% of net income = $1.9438*0.5= $0.9719
Forecasted stockholders equity= $22.2+$0.9719= $23.171
Windsor, Inc. was started on May 1. A summary of May transactions is presented below.
1. Stockholders invested $23,500 cash in the business in exchange for common
stock.
2. Purchased equipment for $4,000 cash.
3. Paid $200 cash for May office rent.
4. Paid $600 cash for supplies.
5. Incurred $150 of advertising costs in the Beacon News on account.
6. Received $4,900 in cash from customers for repair service.
7. Declared and paid a $1,400 cash dividend.
8. Paid part-time employee salaries $1,200.
9. Paid utility bills $140.
10. Performed repair services worth $1,020 on account.
11. Collected cash of $110 for services billed in transaction (10).
Required:
Prepare a tabular analysis of the transactions. Revenue is called service revenue.
Answer: See explanation
Explanation:
The tabular analysis of the transactions had been prepared and attached. The tabular analysis consist of heading such as cash, account receivable, supplies, equipment, account payable, common stock, revenue, expense and dividends.
Check the attachment for the solution.
Use EMBG's adjusted trial balance to prepare entries to close EMBG's temporary accounts (using Retained Earnings), in journal entry form.
EMBG CORPORATION
Adjusted Trial Balance
For the Year Ending December 31, 2016
Debit Credit
Cash $44,000
Accounts receivable 28,000
Equipment 376,000
Accumulated depreciation $72,000
Notes payable 60,000
Common stock 130,000
Retained earnings 62,000
Service fees earned 326,000
Rent expense 44,000
Salaries expense 116,000
Depreciation expense 42,000
Totals $650,000 $650,000
Answer and Explanation:
The Preparation of entries to close EMBG's temporary accounts (using Retained Earnings), in the journal entry form is shown below:-
Service fees earned Dr, $326,000
To Income summary $326,000
(Being closing of service revenue is recorded)
Income summary Dr, $202,000
To Rent expense $44,000
To Salaries expense $116,000
To Depreciation expense $42,000
(Being closing of expenses is recorded)
Income summary Dr, $124,000 ($326,000 - $202,000)
To Retained earnings $124,000
(Being income is recorded)
Complete the steps in the measurement of external transactions.
The following information applies to the questions displayed below.
Buckeye Incorporated had the following balances at the beginning of November.
BUCKEYE INCORPORATED
Trial Balance
November 1
Accounts Debits Credits
Cash $1,200
Accounts Receivable 400
Supplies 500
Equipment 7,400
Accounts Payable $1,000
Notes Payable 2,000
Common Stock 5,000
Retained Earnings 1,500
Totals $9,500 $9,500
The following transactions occur in November.
November 1 Issue common stock in exchange for $11,000 cash.
November 2 Purchase equipment with a long-term note for $1,500 from Spartan Corporation.
November 4 Purchase supplies for $1,100 on account.
November 10 Provide services to customers on account for $7,000.
November 15 Pay creditors on account, $1,200.
November 20 Pay employees $1,000 for the first half of the month.
November 22 Provide services to customers for $9,000 cash.
November 24 Pay $600 on the note from Spartan Corporation.
November 26 Collect $5,000 on account from customers.
November 28 Pay $1,200 to the local utility company for November gas and electricity.
November 30 Pay $3,000 rent for November.
Post each transaction to the appropriate T-accounts and calculate the balance of each account at November 30.
Cash Accounts Receivable
Beg, Bal. Beg. Bal.
November 1 12,800
November 22 10,800
November 26 5,000
End. Bal.
End. Bal.
Supplies Equipment
Beg. Bal. Beg Bal
End. Bal. End. Bal.
Answer:
November 1 Issue common stock in exchange for $11,000 cash.
Dr Cash 11,000
Cr Common stock 11,000
November 2 Purchase equipment with a long-term note for $1,500 from Spartan Corporation.
Dr Equipment 1,500
Cr Notes payable 1,500
November 4 Purchase supplies for $1,100 on account.
Dr Supplies 1,100
Cr Accounts payable 1,100
November 10 Provide services to customers on account for $7,000.
Dr Accounts receivable 7,000
Cr Service revenue 7,000
November 15 Pay creditors on account, $1,200.
Dr Accounts payable 1,200
Cr cash 1,200
November 20 Pay employees $1,000 for the first half of the month.
Dr Wages expense 1,000
Cr cash 1,000
November 22 Provide services to customers for $9,000 cash.
Dr Cash 9,000
Cr Service revenue 9,000
November 24 Pay $600 on the note from Spartan Corporation.
Dr Notes payable 600
Cr Cash 600
November 26 Collect $5,000 on account from customers.
Dr Cash 5,000
Cr Accounts receivable 5,000
November 28 Pay $1,200 to the local utility company for November gas and electricity.
Dr Utilities expense 1,200
Cr Cash 1,200
November 30 Pay $3,000 rent for November.
Dr Rent expense 3,000
Cr Cash 3,000
Cash Common stock
debit credit debit credit
1,200 5,000
11,000 11,000
1,200 16,000
1,000
9,000
600
5,000
1,200
3,000
19,200
Accounts receivable Supplies
debit credit debit credit
400 500
7,000 1,100
5,000 1,600
2,400
Equipment Accounts Payable
debit credit debit credit
7,400 1,000
1,500 1,100
8,900 1,200
900
Notes Payable Service revenue
debit credit debit credit
2,000 7,000
1,500 9,000
600 16,000
2,900 6,000 closed
Retained Earnings Wages expense
debit credit debit credit
1,500 1,000
10,800 closed 1,000
12,300
Utilities expense Rent expense
debit credit debit credit
1,200 3,000
closed 1,200 closed 3,000
net income for the month = $16,000 - $5,200 = $10,800, so retained earnings should increase by $10,800
StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Beginning Inventory Ending Inventory Raw materials $ 29,700 $ 25,600 Work in process 22,400 46,100 Finished goods 78,300 69,800 Additional information for the month of March follows: Raw materials purchases $ 41,600 Indirect materials used 1,200 Direct labor 62,900 Manufacturing overhead applied 36,700 Selling, general, and administrative expenses 24,300 Sales revenue 237,000 Required: 1. Based on the above information, prepare a cost of goods manufactured report. 2. Based on the above information, prepare an income statement for the month of March.
Answer:
1. Cost of goods Manufactured Report
Beginning raw materials inventory $29,700
Add: Raw materials purchases $41,600
Less: Indirect materials ($1,200)
Less: Ending raw materials inventory ( $25,600)
Direct materials used in production $44,500
Direct labor $62,900
Manufacturing overhead $36,700
Total current manufacturing costs $144,100
Add: Beginning work in process inventory $22,400
Less: Ending work in process inventory ($46,100)
Cost of goods manufactured $120,400
2. Income Statement for March
Sales revenue $237,000
Less: Cost of goods sold
Cost of goods manufactured $120,400
Add: Beginning finished goods inventory $78,300
Less: Ending finished goods inventory $69,800
Cost of goods sold ($128,900)
Gross profit $108,100
Less:
Operating expenses (selling & administrative expenses) ( $24,300 )
Net operating income $83,800
Journalize the following transactions that occurred in for , assuming the perpetual inventory system is being used. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. estimates sales returns at the end of each month.
Sep. 3: Purchased merchandise inventory on account from Silton Wholesalers, S7,500.
4 Paid freight bill of $50 on September 3 purchase.
4 Purchase merchandise inventory for cash of $2,000
6 Retuned $1,100 of inventory from Soptember 3 purchase.
8 Sold merchandise inventory to Houston Company, S6,100, on account.
13 After negotiations, received a S100 allowance from Tristan Wholesalers.
15 Sold merchandise inventory to Jex Company, $2,900, on account.
22 Made payment, less allowance, to Tarin wholesalers for good purchased on
September 9.
23 Jex Company returned $500 of the merchandise sold on September 15.
Cost of goods, $230.
29 Received payment from Smede, less discount.
30 Received payment from Jex Company, less return.
Answer:
Journal Entries:
Sep. 3:
Debit Inventory $7,500
Credit Accounts Payable (Silton Wholesalers) $7,500
To record the purchase of merchandise on account.
Sep. 4:
Debit Freight on Inventory $50
Credit Cash Account $50
To record freight on purchase.
Sep. 4:
Debit Inventory $2,000
Credit Cash Account $2,000
To record the purchase of merchandise for cash.
Sep. 6:
Debit Accounts Payable (Silton Wholesalers) $1,100
Credit Inventory $1,100
To record the return of inventory.
Sep. 8:
Debit Accounts Receivable (Houston Company) $6,100
Credit Sales Revenue $6,100
To record the sale of merchandise on account.
Sep. 13:
Debit Accounts Payable (Tristan Wholesalers) $100
Credit Inventory $100
To record the allowance received.
Sep. 15:
Debit Accounts Receivable (Jex Company) $2,900
Credit Sales Revenue $2,900
To record the sale of merchandise on account.
Sep. 22:
Debit Accounts Payable (Tarin Wholesalers) $
Credit Cash $
For alleged goods purchased on September 9 (not in the records).
Sep. 23:
Debit Inventory $230
Debit Sales Revenue $270
Credit Accounts Receivable (Jex Company) $500
To record inventory returned and the corresponding profit on sales.
Sep. 29:
Debit Cash Account $
Credit Accounts Receivable (Smede) $
To record receipt from Smede (not in the records).
Sep. 30:
Debit Cash Account $2,400
Accounts Receivable (Jex Company) $2,400
To record receipt from Jex Company in full settlement.
Explanation:
Company B uses the journal entries to initially record business transactions as they occur on a daily basis. They show the accounts to be debited and the ones to be credited.
Randy is the manager of a motel. As a condition of his employment, Randy is required to live in a room on the premises so that he would be there in case of emergencies. Randy considered this a fringe benefit since he would otherwise be required to pay $800 per month rent. The room that Randy occupied normally rented for $70 per night, or $2,100 per month. On the average, 90% of the motel rooms were occupied. As a result of this rent-free use of a room, Randy is required to include how much gross income?
Answer:
a. $0
Explanation:
a. $0
b. $800 per month.
c. $2,100 per month.
d. $1,890 ($2,100 x .90)
A (0)
It should be noted that gross income is the addition of all earnings, this could be the wages,profits, and so on that is available before the removal of taxes.
Therefore, From the question above, Randy, who is the manager that enjoy rent-free use of a room, will be required to include $0 as the gross income, because no deduction or taxes has been removed from the free rent he was enjoying, nothing was paid.
Eileen transfers property worth $200,000, basis of $60,000, to Goldfinch Corporation. In return, she receives 82% of the stock in Goldfinch Corporation worth $180,000, and a ten year note, executed by Goldfinch and made payable to Eileen, worth $20,000. Eileen will recognize no gain on the transfer of:_______.
a. $190,000.
b. 50.
c. $20,000.
d. $10,000.
e. none of these cholces are correct.
Answer:
C. $20,000
Explanation:
Given the data below,
Property transfered = $200,000
Basis = $60,000
Return = 82℅
Fair market value = $180,000
Long term fair market value = $20,000
In the above scenario, we can safely say that Eileen realized gain of $140,000 on the transfer of property, which is due to;
Property worth $200,000 - basis $60,000 = $140,000.
However, because recognized gain cannot exceed the lesser of realized gain ($140,000) or the boot received ($20,000), the recognized gain is therefore $20,000