Ricky’s Piano Rebuilding Company has been operating for one year. On January 1, at the start of its second year, its income statement accounts had zero balances and its balance sheet account balances were as follows:______
Cash $6,000
Accounts Payable $8,000
Accounts Receivable 25,000
Deferred Revenue (deposits) 3,200
Supplies 1,200
Notes Payable (long-term) 40,000
Equipment 8,000
Common Stock 8,000
Land 6,000
Retained Earnings 9,000
Buildings 22,000
Following are the January transactions:______
A. Received a $500 deposit from a customer who wanted her piano rebuilt in February.
B. Rented a part of the building to a bicycle repair shop; $300 rent received for January.
C. Delivered five rebuilt pianos to customers who paid $14,500 in cash.
D. Delivered two rebuilt pianos to customers for $7,000 charged on account.
E. Received $6,000 from customers as payment on their accounts.
F. Received an electric and gas utility bill for $350 for January services to be paid in February.
G. Ordered $800 in supplies.
H. Paid $1,700 on account in January.
I. Paid $10,000 in wages to employees in January for work done this month.
J. Received and paid cash for the supplies in (g).
1. Prepare an income statement for the month ended and at January 31.
2. Prepare a statement of retained earnings for the month ended and at January 31.
3. Prepare a classified balance sheet for the month ended and at January 31.
4. Prepare a statement of retained earnings for the month ended and at January 31.

Answers

Answer 1

Answer and Explanation:

1. The Preparation of income statement is presented below:-

Ricky's Piano Rebuilding Company

Income Statement

For the Month Ended January 31

Particulars                                Amount

Rent Revenue        $300  

Service Revenue   $21,500     $21,800

Less: Expenses

Utility Expense       $350  

Wages Expense     $10,000  

Total expenses                       $10,350

Net income                              $11,450

2. The preparation of retained earnings is prepared below:-Ricky's Piano Rebuilding Company

Retained Earning Statement

For the Month Ended January 31

Particulars                                Amount

Retained Earnings                    $9,000

Add:

Net income                $11,450  

Less:

Dividends                  $0  

Retained earnings, January 31   $20,450

3. The Preparation of balance sheet is presented below:-

Ricky's Piano Rebuilding Company

Budgeted Balance Sheet

As at January 31

Assets                                                  Amount

Current Assets:

Cash                             $14,800

Accounts Receivable   $26,000  

Supplies                        $2,000

Total Current Assets                            $42,800

Equipment                    $8,000  

Building                         $22,000       $30,000

Land                                                      $6,000

Total Assets                                           $78,800

Liabilities and stockholders equity

Liabilities

Current Liabilities

Accounts Payable           $6,300  

Deferred Revenue           $3,700  

Utility Payable                  $350

Total Current Liabilities                           $10,350

Notes Payable                                         $40,000

Total Stockholders' Equity

Common Stock               $8,000  

Retained Earnings           $20,450  

Total Stockholders' Equity                        $28,450

Total Liabilities and stockholders’

equity                                                           $78,800

Answer 2
The preparation of the financial statement is presented as follows:

1. The Preparation of income statement is presented below:-

Ricky's Piano Rebuilding Company

Income Statement

For the Month Ended January 31

Particulars                                Amount

Rent Revenue        $300  

Service Revenue   $21,500     $21,800

Less: Expenses

Utility Expense       $350  

Wages Expense     $10,000  

Total expenses                       $10,350

Net income                              $11,450

2. The preparation of retained earnings is prepared below:-

Ricky's Piano Rebuilding Company

Retained Earning Statement

For the Month Ended January 31

Particulars                                Amount

Retained Earnings                    $9,000

Add:

Net income                $11,450  

Less:

Dividends                  $0  

Retained earnings, January 31   $20,450

3. The Preparation of balance sheet is presented below:-

Ricky's Piano Rebuilding Company

Budgeted Balance Sheet

As at January 31

Assets                                                  Amount

Current Assets:

Cash                             $14,800

Accounts Receivable   $26,000  

Supplies                        $2,000

Total Current Assets                            $42,800

Equipment                    $8,000  

Building                         $22,000       $30,000

Land                                                      $6,000

Total Assets                                           $78,800

Liabilities and stockholders equity

Liabilities

Current Liabilities

Accounts Payable           $6,300  

Deferred Revenue           $3,700  

Utility Payable                  $350

Total Current Liabilities                           $10,350

Notes Payable                                         $40,000

Total Stockholders' Equity

Common Stock               $8,000  

Retained Earnings           $20,450  

Total Stockholders' Equity                        $28,450

Total Liabilities and stockholders’

equity                                                           $78,800

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Related Questions

Presented below is information related to Windsor Company.

Oct. 1 Diane Lexington begins business as a real estate agent with a cash investment of $16,800 in exchange for common stock.
2 Hires an administrative assistant.
3 Purchases office furniture for $2,500, on account.
6 Sells a house and lot for N. Fennig; bills N. Fennig $3,400 for realty services performed.
27 Pays $1,100 on the balance related to the transaction of October 3.
30 Pays the administrative assistant $2,650 in salary for October.

Required:
Journalize the transactions.

Answers

Answer:

Date    Account Titles            Debit         Credit

Oct 1    Cash                          $16,800

                 Common Stock                      $16,800

Oct 2    No journal entry             -                  -

Oct 3    Office Furniture         $2,500

                  Accounts Payable                  $2,500

Oct 6.   Accounts Receivable  $3, 400

                   Service Revenue                   $3,400

Oct 27   Accounts Payable       $1,100

                    Cash                                      $1,100

Oct 30   Salaries Expense       $2,650

                    Cash                                      $2,650

Hudson Corporation is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing (referred to as outsourcing), or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) depends on demand as follows:
Demand
Staffing Options High Medium Low
Own staff 650 650 600
Outside vendor 900 600 300
Combination 800 650 500
a) If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the expected cost of the data processing operation?
Own staff, Outside vendor, Combination
What is the expected annual cost associated with that recommendation?
Expected annual cost = $
(b) Construct a risk profile for the optimal decision in part (a).
What is the probability of the cost exceeding $700,000?
Probability =

Answers

Answer:

Kindly check explanation

Explanation:

Given the data :

______________DEMAND______________

Staffing option __High ___Medium______Low

Own staff ______650_____ 650 _______600

Outside vendor _900_____ 600 _______ 300

Combination ___ 800 _____650_______ 500

a) If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the expected cost of the data processing operation?

Expected cost :Σp(x) *x

Expected value for OWN STAFF:

(650*0.2) + (650*0.5) + (600*0.3) = 635

Expected value for OUTSIDE VENDOR:

(900*0.2) + (600*0.5) + (300*0.3) = 570

Expected value for COMBINATION:

(800*0.2) + (650*0.5) + (500*0.3) = 635

The decision alternative which will minimize expected cost is OUTSIDE VENDOR as it has the lowest expected value.

Expected annual cost associated with outside vendor is 570

(b) Construct a risk profile for the optimal decision in part (a).

Risk portfolio for outside vendor:

Demand ____cost ____probability

Low _______900 ______ 0.2

Medium ____600 ______ 0.5

High ______ 500 _______0.3

What is the probability of the cost exceeding $700,000?

Probability : This is the probability associated with the low demand of the optimal risk portfolio = 0.2 (0.2 * 100) = 20%

D’Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets, liabilities, and common stock of the business on July 1, 2016, are as follows: Cash, $45,000; Accounts Receivable, $93,000; Supplies, $7,000; Land, $75,000; Accounts Payable, $40,000; Common Stock, $60,000. Business transactionsduring July are summarized as follows:
A. Joel Palk invested additional cash in exchange for common stock with a deposit of $35,000 in the business bank account.
B. Paid $50,000 for the purchase of land adjacent to land currently owned by D’Lite Dry Cleaners as a future building site.
C. Received cash from cash customers for dry cleaning revenue, $32,125.
D. Paid rent for the month, $6,000.
E. Purchased supplies on account, $2,500.
F. Paid creditors on account, $22,800.
G. Charged customers for dry cleaning revenue on account, $84,750.
H. Received monthly invoice for dry cleaning expense for July (to be paid on August 10), $29,500.
I. Paid the following: wages expense, $7,500; truck expense, $2,500; utilities expense, $1,300; miscellaneous expense, $2,700.
J. Received cash from customers on account, $88,000.
K. Determined that the cost of supplies on hand was $5,900; therefore, the cost of supplies used during the month was $3,600.
L. Paid dividends, $12,000.
Required:
1. Determine the amount of retained earnings as of July 1 of the current year.
2. The assets, liabilities, and stockholders’ equity as of July 1 are stated in equation form similar to that shown in this chapter. In tabular form below the equation, indicate increases and decreases resulting from each transaction and the new balances after each transaction. In each transaction row (rows indicated by a letter), you must indicate the math sign (+ or -) in columns effected by the transaction. You will not need to enter math signs in the balance rows (rows indicated by Bal.). Entries of 0 (zero) are not required and will be cleared if entered.
3.a. Prepare an income statement for the month ended July 31, 2016. Refer to the Accounts in the accounting equation grid and to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss has been incurred, enter that amount as a negative number using a minus sign. You will not need to enter colons (:) on the income statement.
3.b. Prepare a retained earnings statement for the month ended July 31, 2016. Refer to the lists of Accounts in the accounting equation grid and to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Enter all amounts as positive numbers. The word "Less" or "Add" is not needed in the Retained Earnings Statement.
3.c. Prepare a balance sheet as of July 31, 2016. Refer to the Accounts in the accounting equation grid and to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.
4. Prepare a statement of cash flows for July. Enter amounts that represent cash outflows as negative numbers using a minus sign. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. You will not need to enter colons (:) or the word Deduct on the statement.
Labels Cash flows from financing activities, Cash flows from investing activities, Cash flows from operating activities, ExpensesFor the Month Ended July 31, 2016, July 31, 2016
Amount Descriptions Additional investment during July, Cash balance, July 1, 2016, Cash balance, July 31, 2016, Cash payments for expenses and payments to creditors, Cash received from customers, Cash received from issuing common stock, Decrease in retained earnings, Dividends, Increase in retained earnings, Net cash flows from financing activities, Net cash flows from investing activities, Net cash flows from operating activities, Net cash flows used for financing activities, Net cash flows used for investing activities, Net cash flows used for operating activities, Net decrease in cash during July, Net income, Net increase in cash during July. Net loss, Purchase of land, Retained earnings, July 1, 2016, Retained earnings, July 31, 2016, Total assets, Total expenses, Total liabilities and stockholders’ equity, Total stockholders’ equity

Answers

Answer:

1) equity = assets - liabilities

equity = $45,000 + $93,000 + $7,000 + $75,000 - $40,000 = $180,000

retained earnings = total equity - common stock = $180,000 - $60,000 = $120,000

2) Since there is not enough room here, I used an excel spreadsheet to prepare the accounting equation.

 

3a) D’Lite Dry Cleaners

Income Statement

For the month ended July 31, 202x

Revenues                                                       $116,875

Expenses:

Dry cleaning expense $29,500 Rent expense $6,000 Wages expense $7,500 Truck expense $2,500 Supplies expense $3,600 Utilities expense $1,300 Miscellaneous expense $2,700           ($53,100)

Net income                                                      $63,775

3b) D’Lite Dry Cleaners

Balance Sheet

For the month ended July 31, 202x

Assets:

Cash $95,325

Accounts receivable $89,750

Supplies $5,900

Land $125,000

Total assets $315,975

Liabilities:

Accounts payable $49,200

Equity:

Common stock $95,000

Retained earnings $171,775

Total equity = $266,775

   

Total liabilities and equity $315,975

3c) D’Lite Dry Cleaners

Statement of Owner’s Equity

For the month ended July 31, 202x

Palk, Joel, common stock, beginning balance     $60,000

Retained earnings                                                  $120,000

Additional common stock issued                           $35,000

net income                                                                $63,775

subtotal                                                                   $278,775

dividends                                                                 ($12,000)

Palk, Joel, common stock, ending balance           $95,000

Retained earnings                                                  $$171,775

Faughn Corporation has provided the following data concerning manufacturing overhead for July:
Actual manufacturing overhead incurred $69,000
Manufacturing overhead applied to Work in Process $79,000
The company's Cost of Goods Sold was $243,000 prior to closing out its Manufacturing Overhead account. The company closes out its Manufacturing Overhead account to Cost of Goods Sold. Which of the following statements is true?
A) Manufacturing Overhead account is $233,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000.
B) Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000
C) Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000
D) Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000
Faughn Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:
Raw materials purchased on account $475,000
Raw materials (all direct) requisitioned for use in production $476,000
Direct labor cost $640,000
Manufacturing overhead:
Indirect labor cost $174,000
Other manufacturing overhead costs incurred $498,000
Cost of goods manufactured $1,672,500
Cost of goods sold (unadjusted) $1,469,000
The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:_____.
A. Finished Goods 1,672,500
Work in Process 1,672,500
B. Work in Process 1,469,000
Finished Goods 1,469,000
C. Finished Goods 1,469,000
Work in Process 1,469,000
D. Work in Process 1,672,500
Finished Goods 1,672,500

Answers

Answer: B. Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000

A. Finished Goods 1,672,500

Work in Process 1,672,500

Explanation:

• Based on the scenario in the question, it should be realized that the applied manufacturing overhead is more than the actual manufacturing overhead by:

= $79,000 − $69,000

= $10,000

This implies that $10,000 would be overapplied. The $10000 will then be subtracted from the cost of the goods that were sold and we'll then get adjusted cost of goods sold of:

= $243,000 − $10,000

= $233,000

• The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:

Finished Goods 1,672,500

Work in Process 1,672,500

On December 31, 2021, the end of the fiscal year, Revolutionary Industries completed the sale of its robotics business for $13.0 million. The robotics business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $9.0 million. The income from operations of the segment during 2021 was $6.0 million. Pretax income from continuing operations for the year totaled $14.0 million. The income tax rate is 25%.
Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4.)

Answers

Are these the answer choices above?

WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Product X Product Y Product Z Units produced 1,800 2,300 3,300 Per unit sales value at split-off $ 16.00 $ 19.00 $ 18.00 Added processing costs per unit $ 3.00 $ 5.00 $ 5.00 Per unit sales value if processed further $ 20.00 $ 20.00 $ 25.00 The cost of the joint raw material input is $71,000. Which of the products should be processed beyond the split-off point

Answers

Answer:

Product X and Product Z should be processed beyond the split-off point because their Profits beyond split-off point are greater than Profits at split-off point.

Explanation:

Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.

The explanation to the answer is now given as follows:

Also note: See the attached excel file for the calculation of the Profit at split-off point and profit Profit beyond split-off point.

In the attached excel file, the share cost of joint raw material input is calculated as follows:

Units produced of Product X = 1,800

Units produced of Product Y = 2,300

Units produced of Product Z = 3,300

Total units = Units produced of Product X + Units produced of Product Y + Units produced of Product Z = 1,800 + 2,300 + 3,300 = 7,400

Share of cos joint raw material input = (Units of a Product / Total unit) * Cost of the joint raw material input …. (1)

Using equation (1), we have:

Product X share of cost of joint raw material input = (1,800 / 7,400) * $71,000 = $17,270

Product Y share of cost of joint raw material input = (2,300 / 7,400) * $71,000 = $22,068

Product Z share of cost of joint raw material input = (3,300 / 7,400) * $71,000 = $31,662  

Decision Rule:

A product should be processed beyond the split-off point if its Profit beyond split-off point is greater than Profit at split-off point.

From the attached excel file, only Product X and Product Z meet this requirement as determined as follows:

For Product X

Profit at split-off point = $11,530

Profit beyond the split-off point = $13,330

Since Profit beyond split-off point is greater than Profit at split-off point, Product X should be processed beyond the split-off point.

For Product Y

Profit at split-off point = $21,632

Profit beyond the split-off point = $12,432

Since Profit beyond split-off point is less than Profit at split-off point, Product X should NOT be processed beyond the split-off point.

For Product Z

Profit at split-off point = $27,738

Profit beyond the split-off point = $34,338

Since Profit beyond split-off point is greater than Profit at split-off point, Product Z should be processed beyond the split-off point.

Based on the analysis above, only Product X and Product Z should be processed beyond the split-off point since their Profits beyond split-off point are greater than Profits at split-off point.

Use the following data to determine the total amount of working capital.

Windsor, Inc. Balance Sheet December 31, 2022

Cash $129200 Accounts payable $153500
Accounts receivable 122600 Salaries and wages payable 28400
Inventory 209300 Note payable (due 2025) 268000
Short-term investments 86400 Total liabilities $449900
Land (held for future use) 255000 Land 289000
Buildings $338500 Common stock $355500

Less: Accumulated depreciation (60200) 278300 Retained earnings 771000
Franchise 206600 Total stockholders' equity $1126500
Total assets $1576400 Total liabilities and stockholders' equity $1576400

Answers

Answer:

$279,200

Explanation:

The computation of working capital is shown below:-

As we know that

Working capital = Current assets - Current liabilities

where,

Current assets = cash balance + account receivable + Inventory

= $129,200 + $122,600 + $209,300

= $461,100

And,

Current liabilities = Account payable + Salaries  & wages payable

= $153,500 + $28,400

= $181,900

now we will put the values of the above working capital formula

= $461,100 - $181,900

= $279,200

You would like to be a millionaire when you retire in 40 years, and how much you must invest today to reach that goal clearly depends on what rate of return you can earn. First, suppose you can earn 10.4% per year, and calculate how much you would have to invest today. Second, suppose you can only earn half that percentage rate, and calculate how much you would have to invest today. Divide the second by the first, to see how many times more you must invest today at half that annual rate grow it to $1 million over 40 years.

Answers

Answer:

1.

PV = $19108.96057 rounded off to $19108.96

So, $19108.96057 have to be invested today at 10.4% p.a. rate for 40 years for it to turn into a million dollars.

2.

PV = $131634.7058 rounded off to $131634.71

So, $131634.7058 have to be invested today at 5.2% p.a. rate for 40 years for it to turn into a million dollars.

3.

Times more investment = 6.888637682 times rounded off to 6.89 times

Explanation:

1.

To calculate how much we need to invest today for it to turn into $1 million in 40 years at 10.4% per annum rate, we will use the Present value of a sum formula as we need to determine the present value of $1 million earned after 40 years from today. The formula for present value of a sum is,

PV = FV / (1+r)^t

Where,

PV is present valueFV is future valuer is the rate of interest or returnt is the time period in years

PV = 1,000,000 / (1+0.104)^40

PV = $19108.96057 rounded off to $19108.96

So, $19108.96057 have to be invested today at 10.4% p.a. rate for 40 years for it to turn into a million dollars.

2.

Half the percentage rate of 10.4% p.a. = 10.4% / 2  =  5.2%

PV = 1,000,000  /  (1+0.052)^40

PV = $131634.7058 rounded off to $131634.71

So, $131634.7058 have to be invested today at 5.2% p.a. rate for 40 years for it to turn into a million dollars.

3.

Times more investment = 131634.7058  /  19108.96057

Times more investment = 6.888637682 times rounded off to 6.89 times

On January 1, 2020, Pearl Company sold 11% bonds having a maturity value of $400,000 for $415,163, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Pearl Company allocates interest and unamortized discount or premium on the effective-interest basis.
A. Prepare a schedule of interest expense and bond amortization for 2020-2022.
Date Account Titles and Explanation Debit Credit
January 1, 2020 Cash 518,953
Bonds Payable 500,000
Premium on Bonds Payable 18953
B. Prepare the journal entry to record the interest payment and the amortization for 2020.
Schedule of Interest Expense and Bond Premium Amortization
Effective-Interest Method
Date Cash Interest Premium Carrying Amount
Paid Expense Amortized of Bonds
1/1/20
12/31/20 55000
12/31/21 55000
12/31/22 55000
C. Prepare the journal entry to record the interest payment and the amortization for 2022.
Date Account Titles and Explanation Debit Credit
December, 31 51895
Premium on Bonds Payable
Cash

Answers

Answer:

I will start with B and C)

The journal entry to record bond issuance:

January 1, 2020, bonds issued at a premium

Dr Cash 415,163

    Cr Bonds payable 400,000

    Cr premium on bonds payable 15,163

December 31, 2020, first coupon payment

Dr Interest expense 41,616.30

Dr Premium on bonds payable 2,383.70

    Cr Cash 44,000

amortization of bond premium = (415,163 x 10%) - 44,000 = 2,383.70

December 31, 2021, second coupon payment

Dr Interest expense 41,277.93

Dr Premium on bonds payable 2,722.07

    Cr Cash 44,000

amortization of bond premium = (412,779.30 x 10%) - 44,000 = 2,722.07

December 31, 2023, third coupon payment

Dr Interest expense 41,005.72

Dr Premium on bonds payable 2,994.28

    Cr Cash 44,000

amortization of bond premium = (410,057.23 x 10%) - 44,000 = 2,994.28

A) I used an excel spreadsheet to prepare the amortization schedule

Pro forma balance sheet Peabody & Peabody has 2019 sales of $10 million. It wishes to analyze expected performance and financing needs for 2021, which is 2 years ahead. Given the following information, respond to parts a and b.

1. The percent of sales for items that vary directly with sales are as follows: Accounts receivable, 12% Inventory, 18% Accounts payable, 14% Net profit margin, 3%
2. Marketable securities and other current liabilities are expected to remain unchanged.
3. A minimum cash balance of $480,000 is desired.
4. A new machine costing $650,000 will be acquired in 2020, and equipment costing $850,000 will be purchased in 2017. Total depreciation in 2017 is forecast as $290,000, and in 2017 $390,000 of depreciation will be taken.
5. Accruals are expected to rise to $500,000 by the end of 2017.
6. No sale or retirement of long-term debt is expected.
7. No sale or repurchase of common stock is expected.
8. The dividend payout of 50% of net profits is expected to continue.
9. Sales are expected to be $11 million in 2017 and $12 million in 2017.
10. The December 31, 2017, balance sheet follows

Peabody & Peabody Balance Sheet December 31, 2017 ($000)

Assets:

Cash 400
Marketable securities 200
Accounts receivable 1200
Inventories 1800
Total current assets 3600
Net fixed assets 4000
Total assets 7600

Liabilities and Stockholders equity:

Accounts payable 1400
Accruals 400
Other current liabilities 80
Total current liabilities 1880
Long-term debt 2000
Total liabilities 3880
Common equity 3720
Total liabilities and stockholders’ equity $7,600


Required:
a. Prepare a pro forma balance sheet dated December 31, 2017.
b. Discuss the financing changes suggested by the statement prepared in part a.

Answers

Answer:

Peabody & Peabody

a. Peabody & Peabody

Pro Forma Balance Sheet

December 31, 2021 ($000)

Cash                             480

Marketable securities 200

Accounts receivable 1,440

Inventories                2,160

Total current assets 4,280

Net fixed assets       4,820

Total assets              9,100

Liabilities and Stockholders equity:

Accounts payable          1,680

Accruals                           500

Other current liabilities     80

Total current liabilities 2,260

Long-term debt           2,000

Total liabilities             4,260

Common equity         3,900            

Total liabilities and stockholders’ equity $8,160

Required Finance         940

b. From the statement prepared in part a, it is clear that Peabody & Peabody requires new financing of $940,000 for 2020 to meet the projected assets base.

Explanation:

a) Data and Calculations:

2019 Sales = $10 million

Pro Forma Balance Sheet

December 31, 2017 ($000)

Assets:

Cash                             400

Marketable securities 200

Accounts receivable 1,200

Inventories                1,800

Total current assets 3,600

Net fixed assets       4,000

Total assets              7,600

Liabilities and Stockholders equity:

Accounts payable          1,400

Accruals                           400

Other current liabilities     80

Total current liabilities  1,880

Long-term debt           2,000

Total liabilities              3,880

Common equity           3,720

Total liabilities and stockholders’ equity $7,600

Purpose: To analyze expected performance and financing needs for 2021.

1. Percent of Sales ($12 million)

Accounts receivable, 12%  $1,440

Inventory, 18%                    $2,160

Accounts payable, 14%      $1,680

Net profit margin, 3%          $360

2. Market securities            $200

3. Cash balance (desired minimum) $480

4. Net fixed assets           4,000

New equipment in 2020    650

Depreciation, 2020           (290)

New equipment in 2021    850

Depreciation, 2021            (390)

Net fixed assets            $4,820

5. Accruals                       $500

8. Dividend payout = 50% of $360 = $180

Retained Earnings (current) = $180

Common Equity:

2019    3,720

Income   180 (Retained Earnings)

2020  3,900

Allison and Leslie, who are twins, just received $10,000 each for their 25th birthdays. They both have aspirations to become millionaires. Each plans to make a $5000 annual contribution to her "early retirement fund" on her birthday, beginning a year from today. Allison opened an account with the Safety First Bond Fund, a mutual fund that invests in high quality bonds whose investors have earned 8% per year in the past. Leslie invested in the New-Issue Bio Tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have earned an average of 13% per year in the fund’s relatively short history.
a. If the two women’s funds earn the same returns in the future as in the past, how old will each be when she becomes a millionaire?
b. How large would Allison’s annual contributions have to be for her to become a millionaire at the same age as Leslie, assuming that their expected returns are realized?

Answers

Answer:

a. If the two women’s funds earn the same returns in the future as in the past, how old will each be when she becomes a millionaire?

Allison:

1,000,000 = 5,000 x  [(1 + i)ⁿ  - 1 ] / i

200 = [(1 + 8%)ⁿ  - 1 ] / 8%

16 = 1.08ⁿ  - 1

17 = 1.08ⁿ

n = log 17 / log 1.08 = 1.230448921 / 0.033423755 = 36.81 years

Leslie:

1,000,000 = 5,000 x  [(1 + i)ⁿ  - 1 ] / i

200 = [(1 + 13%)ⁿ  - 1 ] / 13%

26 = 1.13ⁿ  - 1

27 = 1.13ⁿ

n = log 27 / log 1.13 = 1.43133764 / 0.053078443 = 26.97 years

b. How large would Allison’s annual contributions have to be for her to become a millionaire at the same age as Leslie, assuming that their expected returns are realized?

1,000,000 = payment x  [(1 + i)ⁿ  - 1 ] / i

1,000,000 = payment x  [(1 + 8%)²⁶°⁹⁷  - 1 ] / 8%

80,000 = payment x [1.08²⁶°⁹⁷  - 1 ]

80,000 = payment x 6.969639658

payment = 80,000 / 6.969639658 = $11,478.36

Duc has been employed by Longbow Corporation for 25 years. During that time, he bought an annuity at a cost of $50 per month ($15,000 total cost). The annuity will pay him $200 per month after he reaches age 65. When Duc dies, his wife, Annika, will continue to receive the annuity until her death. Duc turns 65 in April 2019 and receives 8 payments on the contract. Annika is age 60 when the annuity payments begin.

Required:
a. How much gross income does Duc have from the contract in the current year?
b. Assume that Duc dies on April 2, 2025. How does Annika account for the contract in 2025?
c. Assume the same facts as in part b and that Annika dies on August 4, 2032. How does the executor of Annika's estate account for the contract in the year of her death?

Answers

Answer:

a. How much gross income does Duc have from the contract in the current year?

According to the IRS, Duc's life expectancy is 90 years and 8 months, or 310 more months. This means that Duc can discount from his monthly income $15,000 / 310 = $48.39 (which we must round down to $48).

Duc received 8 x $200 = $1,600

deductions = 8 x $48 = $384

taxable income = $1,216

b. Assume that Duc dies on April 2, 2025. How does Annika account for the contract in 2025?

Annika should account for the contract in the same way as Duc did, and will also be able to discount $48 per month form her gross income. Since Annika will still file her taxes as married during 2025, she will report net income from this contract = ($200 - $48) x 12 months = $1,824

c. Assume the same facts as in part b and that Annika dies on August 4, 2032. How does the executor of Annika's estate account for the contract in the year of her death?

Both Duc and Annika received [(2032 - 2019) x 12] + 4 = 160 payments in total, so her estate is entitled to a tax deduction = (310 - 160) x $48 = $7,200

Since she died on August, her estate must also report income = ($200 - $48) x 8 = $1,216

On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022. Development costs were incurred as follows:

September 30 through December 31, 2021 $3,600,000
January 1 through February 28, 2022 1,500,000
March 1 through April 30, 2022 594,000

Athens expects a useful life of four years for the software and total revenues of $7,800,000 during that time. During 2022, revenue of $1,560,000 was recognized.

Required:
a. Prepare a journal entry to record the development costs in each year of 2021 and 2022.
b. Calculate the required amortization for 2022.

Answers

Answer:

2021

Dr Research and development expense $3,600,000

Cr Cash $3,600,000

2022

Dr Research and development expense 1,500,000

Dr Software and development costs 594, 000

Cr Cash 2,094,000

B. $148,500

Explanation:

1. Preparation of the journals entry

2021

Dr Research and development expense $3,600,000

Cr Cash $3,600,000

(To record the expenses incurred on research and development)

2022

Dr Research and development expense 1,500,000

Dr Software and development costs 594, 000

Cr Cash 2,094,000

(1,500,000+594,000)

(To record the software development costs incurred)

2.Calculatation for the amortization for 2022

Using percentage of revenues method

Amortization= Current revenue/Total revenue* Software development costs

Amortization=$1,560,000/$7, 800,000*$594,000

Amortization=0.2*$594,000

Amortization=$118,800

Using straight line method

Amortization =1/Useful life* Software devel opment costs

Amortization=1/4*$594,000

Amortization=$148,500

Based on the above calculation Tmte expense amounts under straight-line method is higher . Which means that , the amortization is $148,500.

What microeconomic factors point to the fact that your business should be successful? No

Answers

Answer:

your cute

Explanation:

because u cute

On June 30, 2012, Oriole Company issued 12% bonds with a par value of $770,000 due in 20 years. They were issued at 98 and were callable at 103 at any date after June 30, 2020. Because of lower interest rates and a significant change in the company’s credit rating, it was decided to call the entire issue on June 30, 2021, and to issue new bonds. New 10% bonds were sold in the amount of $1,000,000 at 102; they mature in 20 years. Oriole Company uses straight-line amortization. Interest payment dates are December 31 and June 30.Instructions:
a. Prepare journal entries to record the redemption of the old issue and the sale of the new issue on June 30, 2021.
b. Prepare the entry required on December 31, 2021, to record the payment of the first 6 months' interest and the amortization of premium on the bonds.

Answers

Answer:

A. OLD BOND REDEMPTION :

June 30, 2021

Dr 12% Bonds payable 770,000

Dr Loss on retirement of bonds 31,570

Cr Cash 793,100

Cr Discount on bonds 8,470

NEW BOND ISSUE:

June 30, 2021

Dr Cash 1,020,000

Cr 10% Bonds payable 1,000,000

Cr Premium on bonds 20,000

B. Dec 31, 2021

Dr Interest expense 49,500

Dr Premium on bonds payable 500

Cr Cash 50,000

Explanation:

a. Preparation of the journal entries to record the redemption of the old issue and the sale of the new issue on June 30, 2021.

OLD BOND REDEMPTION :

June 30, 2021

Dr 12% Bonds payable 770,000

Dr Loss on retirement of bonds 31,570

Cr Cash 793,100

(103*770,000)

Cr Discount on bonds 8,470

(To record redemption of old bonds)

NEW BOND ISSUE:

June 30, 2021

Dr Cash 1,020,000

(1,000,000 * 102/100)

Cr 10% Bonds payable 1,000,000

(1,000,000 * 100/100)

Cr Premium on bonds 20,000

(1,000,000 * 2/100)

(To record issue of new bonds at premium)

CALCULATION for unamortized discount :

Discount at the time of issue 15,400

(2%*770,000)

Less: Discount amortised till june 30, 2021 (15,400 / 40 * 18) (6,930)

Unamortized discount 8,470

We made use of 18 because the interest was been given twice in a year which is December 31 and June 30

CALCULATION for loss on redemption :

Redemption of bonds 793,100

(103*770,000)

Less: Carrying value (761,530)

(770,000 - 8,470)

Loss on redemption 31,570

b. Preparation of the entry required on December 31, 2021, to record the payment of the first 6 months' interest and the amortization of premium on the bonds.

Dec 31, 2021

Dr Interest expense 49,500

(50,000-500)

Dr Premium on bonds payable 500

(20,000 / 40)

Cr Cash 50,000

(1,000,000 * 10% * 6/12)

(To record the interest expense for 6 months)

answer:

Credit Card Interest Charges January-June 2012

The bank that issues Card X

✔ exceeded

the legal interest rate for five of the six months.

Because of this, the bank that issues Card X is likely to be investigated by the

✔ CFPB

.

South Texas Luxury Apartments reports pretax financial income of $68,400 for 2019. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $17,000. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $21,000. 3. Fines for pollution appear as an expense of $10,300 on the income statement. South Texas Luxury Apartments tax rate is 40% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2019.

Required:
Prepare a reconciliation between Financial Income and Taxable Income and then prepare the journal entry to record income taxes.

Answers

Answer:

Pretax financial income for 2017   $68,400

Excess Depreciation tax               -$17,000

Excess rent collected                     $21,000

Nondeductible fines                       $10,300

Taxable income                              $82,700

Enacted tax rate 40%                         0.4    

Income tax payable                       $33,080

Date   Account Title                    Debit      Credit

          Income Tax expense     $31,480

          Deferred tax asset         $8,400

          (21,000*40/100)

                  Income tax payable                  $33,080

                  Deferred tax liability                 $6,800

                  (17,000*40/100)

without copying and pasting answer!
what are the duties of a plumber, and why is it difficult?

Answers

Answer:

Explanation:

The work of a plumber is to repair pipes.

Answer:

A plumber's duty is to install, repair, and maintain pipes, and fixtures in commercial and residential structures.

It is difficult because it is sometimes very dangerous and you have to work in extreme and critical conditions. And most of the time you inhale dangerous chemicals. Plumbers are dealing with anxious situations such as water pouring through ceilings, gas leaks, and pipes bursting in subzero temperatures.

Explanation:

hope this helps :))

Home Inspirations Mary works for her father in a family-owned business called Home Inspirations, a bedding company that has been in operation since the 1800s. When her father retires, Mary plans on taking over the business. Mary is aware of many things about the company that she likes, and a few things that she does not. She has particularly noted that when the economy has low unemployment and high total income, sales are great. However, any other time, sales are not so good. Currently, all of the bedding items are created in one place and everyone works on various tasks every day. Mary is thinking about streamlining the production process so that individuals would be responsible for only one task. She believes that if production would increase, she could sell her products at a lower price and increase revenue. She knows that most bedding products available in the market are very similar in nature and satisfy the same need. However, if she were able to lower prices, this might give her company the competitive advantage that it needs. She would then be able to invest money in differentiating her products by providing unique features, building the brand name, and offering services such as free delivery. She is also considering selling her products on the Internet. Mary knows that her father does not like change very much, but she feels these changes are important for the future of the company.
Refer to Home Inspirations.Mary noticed that when sales were up,the economy was in a
A) depression.
B) peak period.
C) grace period.
D) recession.
E) stagnant mode.

Answers

Answer:

Option B (peak period) is the correct choice.

Explanation:

The time throughout the day as well as a period where this production is at its peak for items and/or services. A peak seems to be the tallest structure of such a global economy between some of the completion of economic growth as well as the beginning of a recession. Hailey found that perhaps the economy must have been at a peak time although profits were up.

The remaining four options are not aligned with the situation in question. So, the solution above is the right one.

Consider the following independent situations at December 31:
a. On October 1, a business collected $3,000 rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying one year's rent in advance. On December 31, the business must account for the amount of rent it has earned.
b. Salaries expense is $1,800 per day-Monday through Friday-and the business pays employees each Friday. This year, December 31 falls on a Thursday.
c. The unadjusted balance of the Office Supplies account is $3,000. Office supplies on hand total $1,900.
d. Equipment depreciation was $500.
e. On April 1, when the business prepaid $4,320 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash.
Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the journal entries.

Answers

Answer:

All the entries are made on December 31.

a.

Unearned Rent Revenue           750 Dr

          Rent Revenue                      750 Cr

b.

Salaries expense             7200 Dr

    Salaries Payable              7200 Cr

c.

Supplies expense                1100 Dr

    Supplies                               1100 Cr

d.

Depreciation expense-Equipment                    500 Dr

        Accumulated depreciation-Equipment          500 Cr

e.

Insurance expense              1620 Dr

     Prepaid Insurance                1620 Cr

Explanation:

a.

The rent received in advance is for one year. On December 31 the 3 months of rent becomes earned. So, we debit the unearned rent revenue account and credit the rent revenue.

b.

The salaries expense per day is $1800 and as the 31 December is a thursday, the salary for 4 days becomes an expense which is still not paid as salaries are paid on friday. So we debit the salaries expense by 1800 * 4 = 7200 and credit the salaries payable by the same amount.

c.

The supplies of 1100 (3000 - 1900) have been consumed and the supplies expense will be recorded for 1100 and the supplies account will be reduced by 1100.

d.

The depreciation on equipment is recorded.

e.

The insurance paid in advance in April of the current year is for 2 years or 24 months. The per month insurance expense is 4320 / 24 = 180

Till 31 December, the 9 months of insurance policy has been consumed and should be recorded as an expense and a reduction in the prepaid asset.

The amount is = 180 * 9 = 1620

Answer: the unadjusted balance of the office supplies account is $3,000 office supplies on hand total

Explanation:

If steak and potatoes are complements, when the price of steak goes down, the demand curve for potatoes:

Answers

Answer:

Shift to the left

Explanation:

Demand curve is essential in economics, because it allows to know the relationship between the price of a particular goods/service and quantity demanded all in that price graphically

Since complementary goods are used along with each other, they also shift demands curve to the left because any fall at the price of one of the complement goods, the demands of first one increases, then the other one.

Therefore, If steak and potatoes are complements, when the price of steak goes down, the demand curve for potatoes Shift to the left

The following information is provided for the Moon Antenna, Corp., which manufactures two products: Lo-Gain antennas and Hi-Gain antennas for use in remote areas EEB (Click the icon to view the information.) Activity Cost Allocation Base 58,000 Number of setups 30,000 Number of machine hours 88,000 Set up Machine maintenance Total indirect manufacturing costs Direct labor hours Number of setups Number of machine hours Lo-Gain 1,600 25 3,900 Hi-Gain 400 25 2,100 Total 2,000 50 6,000 Moon plans to produce 225 Lo-Gain antennas and 275 units of Hi-Gain antennas Requirements 1. Compute the ABC indirect manufacturing cost per unit for each product. 2. Compute the indirect manufacturing cost per unit using direct labor hours for the traditional single plantwide allocation rate system
Requirement 1. Compute the ABC indirect manufacturing cost per unit for each product. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rateor each activity. Round your answers to the nearest cent.) Predetermined OH allocation rate Setup Machine maintenance Next, select the formula to allocate overhead (OH) costs Allocated mfg. overhead costs Compute the total activity-based costs allocated to Lo-Gain antennas, and then compute the cost per unit for Lo-Gain antennas. Finally, compute the total activity-based costs allocated to Hi-Gain antennas then compute the cost per unit for Hi-Gain antennas. (Round the cost per unit to the nearest cent.) Lo-Gain Hi-Gain Setup Machine maintenance Total activity-based costs Number of units Activity-based cost per unit
Requirement 2. Compute the indirect manufacturing cost per unit using direct labor hours from the single-allocation-base system. First, compute the predetermined overhead (OH) allocation rate. (Round your answer to the nearest cent.) The predetermined overhead (OH) allocation rate is S Compute the manufacturing cost allocated to Lo-Gain antennas, and then compute the indirect manufacturing cost per unit for Lo-Gain antennas. Then, compute the manufacturing cost allocated to Hi-Gain antennas and the indirect manufacturing cost per unit for Lo-Gain Lo-Gain Hi-Gain
Total indirect costs allocated Number of units Indirect cost per unit

Answers

Full question attached

Answer and Explanation:

Full answer and explanation attached

1. Purchased raw materials on account $49,400.
2. Raw Materials of $41,300 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,000 was classified as indirect materials.
3. Factory labor costs incurred were $65,200.
4. Time tickets indicated that $54,600 was direct labor and $10,600 was indirect labor.
5. Manufacturing overhead costs incurred on account were $84,900.
6. Manufacturing overhead was applied at the rate of 150% of direct labor cost.
7. Goods costing $96,300 were completed and transferred to finished goods.
8. Finished goods costing $80,700 to manufacture were sold.

Required:
Record the transactions.

Answers

Answer and Explanation:

The journal entries are shown below:

1. Raw material inventory A/c Dr.$49,400

           To accounts payable  $49,400

(To record raw material purchased)

2. Work in process inventory A/c Dr. $33,300

  Manufacturing overhead A/c Dr. $8,000

                   To Raw material inventory Cr. $41,300

(To record the raw material requisitioned is recorded)

3. Factory payroll A/c Dr.$65,200

                To cash $65,200          

(To record factory labor cost incurred)    

4. . Work in process inventory A/c Dr. $54,600

     Manufacturing overhead A/c Dr. $10,600

                    To factory payroll Cr. $65,200

(To record the direct labor and indirect labor is recorded)

5. Manufacturing overhead A/c Dr. $84,900

                To accounts payable Cr. $84,900

(To record the manufacturing overhead is recorded)

7. Work in process inventory A/c Dr. $81,900   ($54,600×150%)

                To Manufacturing overhead Cr. $81,900

(To record the applied manufacturing overhead is recorded)

8. Finished goods inventory A/c Dr. $96,300

             To Work in process inventory Cr. $96,300

(To record the transferred goods are recorded)

9. Cost of goods sold A/c Dr. $80,700

        To finished goods inventory Cr. $80,700

(To record the cost of goods sold is recorded)

The following information pertains to Blue Flower Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets:

Cash and short-term investments $45,000
Accounts receivable (net) 30,000
Inventory 25,000
Property, plant and equipment 210,000
Total Assets $310,000
Liabilities and Stockholders' Equity Current liabilities $60,000
Long-term liabilities 95,000
Stockholders' equity—common 155,000
Total Liabilities and Stockholders' Equity $310,000

Income Statement
Sales revenue $121,000
Cost of goods sold 66,000
Gross margin 55,000
Operating expenses 30,000
Net income $25,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share on common stock 0.50
Cash provided by operations $40,000

What is the current ratio for this company?

a. 1.25
b. 1.50
c. 0.67
d. 1.00

Answers

Answer:

Blue Flower Company

Current Ratio = Current Assets/Current Liabilities

= $100,000/$60,000

= 1.67 : 1

This ratio implies that Blue Flower Company can pay its current or short-term liabilities 1.67 times, using its current assets, made up of cash, receivables, and inventory, including short-term investments.

Explanation:

a) Data and Calculation:

Cash and short-term investments $45,000

Accounts receivable (net)                 30,000

Inventory                                           25,000

Total current assets                      $100,000

Current liabilities = $60,000

b) Blue Flower's Current Ratio is a financial measure of the company's ability to settle maturing current liabilities (obligations) with its current assets without resorting to sale of long-term assets.

Based on what we have learned about shortages and surpluses in a market, which one do you think is more harmful to the overall economy: a shortage or a surplus of a good? Provide a detailed explanation to demonstrate your thinking.

Answers

Answer:

A surplus of a good

Explanation:

Although we think that having a lot of something sounds like a good idea that is not always the case. Sometimes its better to have less of an item but therefore sell it for. For example when there was a shortage of hand sanitzer, masks and toilet paper people bought more of it for a higher price because they were afraid not to have enough. A surplus can take up a lot of storage and use up a lot of money. For example if a car manafacturer has a surplus of cars they are just sittinng there taking up space in a lot that needs to be payed for and mantained. I find it is especially bad if there are lot of that item and people are not interested in purchasing it. The company would be losing money because they would be most likely selling it at a lower price. Therefore the economy would be losing money while during a shortage they would be gaining money.

Splish Corporation had income from continuing operations of $10,703,000 in 2020. During 2020, it disposed of its restaurant division at an after-tax loss of $205,000. Prior to disposal, the division operated at a loss of $322,000 (net of tax) in 2020 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation). Splish had 10,000,000 shares of common stock outstanding during 2020. Prepare a partial income statement for Splish beginning with income from continuing operations. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Answers

Answer and Explanation:

The Preparation of partial income statement for Splish is shown below:-

Splish Corporation

Partial income statement

For the year 2020

Particulars                                     Amount

Income from operations                $10,703,000

Less:

Discontinued operations:

Loss from operations      $322,000

Loss from disposal          $205,000   $527,000

Net income                                           $10,176,000

Earnings per share:

Income from continuing

operations                                          1.07

($10,703,000 ÷ 10,000,000)

Less:

Discontinued operations, net of tax  0.05

($527,000 ÷ 10,000,000)

Net income                                        1.02

($10,176,000 ÷ 10,000,000)

You are the owner of a restaurant in a competitive market. You want to improve your restaurant's profile by increasing your quality of service to patrons while also growing profits. In addition to hiring better chefs and changing the menu, you are considering whether to offer a coat check. As one option, you could install hooks for customers to use, which may or may not help your business. Alternatively, you could offer a coat check for a fee, which would increase labor costs but give you a source of revenue in the process. Evaluate the various issues from a business and legal perspective, as well as steps to minimize any liability.

Answers

Answer:

Follows are the solution to this question:

Explanation:

Its coat test is a viable and cost-effective alternative also for the cafe. Restaurant visitors have a big issue about managing their clothing in winter. Straps would not even ensure security so its risks will be burglary.  

A sitting room with such a guide ensures safety and would be used in the customers.  Its restaurateur will be charged with additional costs because an employee has to be recruited. The business prospects would be improved when customers  get a guaranteed spot to preserve their jackets.  An operator must be careful enough to not exchange or mislocate any clothes.  It would be a source of revenue for the business because the service available was being used by other people.  

Answer:

all of the above

Explanation:

Journal Entries, T-Accounts
Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred: Materials were purchased on account for $45,760. Materials totaling $40,880 were requisitioned for use in producing various jobs. Direct labor payroll for the month was $19,200 with an average wage of $12 per hour. Actual overhead of $8,860 was incurred and paid in cash. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour. Completed jobs costing $59,000 were transferred to Finished Goods. Jobs costing $58,000 were sold on account for $ 73,750. Make the entry to record the revenue from the sale first, followed by the entry to record the cost of the jobs. Beginning balances as of July 1 were:
Materials Inventory $1,200
Work-in-Process Inventory 3,400
Finished Goods Inventory 2,640
Required:
1. Prepare the journal entries for the preceding events.
a.
b.
c.
d.
e.
f.
g (1).
g (2).
2. Calculate the ending balances of:
a. Materials Inventory $
b. Work-in-Process Inventory $
c. Overhead Control $
d. Finished Goods Inventory $

Answers

Answer:

1.                       Journal Entries

S/n   Account Title                    Debit       Credit

a       Raw materials inventory  $45,760  

             Accounts payable                      $45,760

b      Work in process inventory $40,880  

            Raw materials inventory                $40,980

c      Work in process inventory   $19,200

            Wages payable                               $19,200

d     Manufacturing overhead       $8,860

              Cash                                              $8,860

e    Work in process inventory       $7,406

      (19,200 /14*5.40)

           Manufacturing overhead                  $7,406

f     Finished goods inventory         $59,000  

          Work in process inventory                  $59,000

g1)   Accounts receivable                 $73,750  

          Sales                                                     $73,750

g2) Cost of goods sold             $58,000  

           Finished goods inventory                    $58,000

2. Ending balances

a. Materials Inventory = $ 1,200 + 45,760 - $40,880 = $6,080

b. Work-in-Process Inventory = $ 3,400 + $40,880 + $19,200 + $7,406 - $59,000 = $11,886

c. Overhead Control = $ 8,860 - $7,406 = $1,454

d. Finished Goods Inventory =  $2,640 + $59,000 - $58,000 = $3,640

Barth Interior provides decorating advice to its clients. Three recent transactions of the company include:
a. Providing decorating services of $500 on account to one of its clients.
b. Paying $1,200 for an employee's salary in the current period.
c. Purchasing office equipment for $2,700 by paying cash.
Required: Write a memo to your instructor describing each step of the six-step measurement process presented in Illustration 2-1 in the book specifically for each of the three transactions. To emphasize, your memo should be specific to the three transactions indicated above..

Answers

Answer:

Memo Describing Each Step of the Six-Step Measurement Process

To: Ms. Teagantigan, PhD, Financial Accounting

From: Okwukwe Faith, Financial Accounting Student

Subject: The Six-Step Measurement Process

Date: October 11, 2020

Find below the description you requested on the above subject.

1st Step: Identifying the accounts involved using the source documents:

For the provision of decorating services of $500 to a client, the invoice for the service will be reviewed for the accounts involved in the transaction.  It will show that Accounts receivable and Service Revenue are involved.  A review of the payroll check will also show the payment of salary to an employee, in which Cash Account and Salaries Expense account are involved.  Similarly, a review of the purchasing invoice will show that Office Equipment and Cash Account are involved for the purchase of equipment.

2nd Step: Analysis of the impact on the accounting equation: For a) Accounts Receivable and Service Revenue will increase by $500 respectively.  Cash Account will decrease while Salaries Expense account will increase by $1,200 for b).  For c) Office Equipment will increase and Cash will decrease by $2,700.

3rd Step: Assessing the accounts to be debited or credited:  For a) Accounts Receivable will be debited and Service Revenue credited.  For b) Salaries Expense will be debited and Cash credited.  For c) Office Equipment will be debited and Cash credited.

4th Step: With the above identification, the journal will be recorded for transactions a - c as detailed above.

5th Step: The above transactions will then be posted to the general ledger in their respective accounts.

6th Step: At the end of the period, the accounts will be balance and a list of balances extracted in the Trial Balance.

I hope I have understood the steps enough.

Regards,

Okwukwe Faith

Explanation:

We have detailed above the six-step measurement process for evaluating business transactions and events.  These steps help to identify the accounts involved in each business event and determine how the events are recorded in the accounting books.

Liquidity risk would be greatest for an investor whose portfolio was primarily composed of A) ADRs listed on the NYSE B) municipal bond UITs C) Nasdaq stocks D) municipal bonds

Answers

Answer: D) municipal bonds

Explanation:

Liquidity risk is the risk that an instrument or security can not be easily sold such that actual hard currency can be recuperated.

ADRs on the NYSE can be easily sold and so can NASDAQ stocks. Municipal bond Unit Investment Trust (UITs) can be redeemed in a non-complicated manner so are liquid as well.

Municipal bonds will prove to be the least liquid as the market for municipal bonds is not a heavily traded one.

Jingfei, an employee of Chinese origin, works as a sales representative at Global Recyclers International. Her supervisor, Ralph, persistently refers to her as "Julie" instead of "Jingfei." Although she objects and asks to be called by her rightful name, Ralph continues to call her "Julie" for over a year and justifies his actions by saying that an American-sounding name would increase her chances of success and would be more acceptable to Global's clientele. Jingfei brings a complaint under Title VII of the Civil Rights Act of 1964. Which of the following holds true in this case? a) Global Recyclers International will not be liable to Jingfei because the use of "Julie" is neither a racial epithet nor a description of her physical ethnic traits. b) Global Recyclers International will not be liable to Jingfei because Ralph did not intend his use of "Julie" to be derogatory of her national origin. c) Global Recyclers International will be liable to Jingfei because Title VII provides protection against discrimination based on a victim's country of citizenship. d) Global Recyclers International will be liable to Jingfei because ethnic characteristics go beyond skin color and other physical traits and can include names.

Answers

Answer:

idkdidkidkd

Explanation:

bc idkidkdidkidkd

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