Answer:
a. True
Explanation:
It is correct to say that Stephen is exhibiting a high level of hope because he had the idea of organizing a small introductory meeting in order to introduce himself to local companies and thus break the initial nervousness that could occur if he did not previously know his potential client. With this introductory meeting for greater integration between him, who is the new insurance agent and the companies that are his potential clients, there may be greater interaction, greater possibility of closing deals and greater customer satisfaction, lessening insecurity, etc.
Assume for a moment that Sue, the owner of Camp Bow Wow in Colorado, said that she was looking to provide constantly evolving and improving pet care services that no other organization offered. This would be an example of a-----------------------------strategy.
a. specialization by building customer intimacy
b. cost leadership by being operationally excellent
c. differentiation through product innovation
d. expansion and growth to enhance earnings per share by building out new operations
Answer:
c. differentiation through product innovation
Explanation:
This would be an example of a differentiation through product innovation strategy because She is constantly looking for an evolving project and at the same time no other organisation has provided this product, which is an example of differentiations with leadership . so correct option is c. differentiation through product innovationAs per the question the owners of the camp wow is looking to provide a continuously evolving and improving pet care service that has no organization.
This is an example of the product innovation and is a subsequent creation of the product or a good or service. Hence the option C is correct. That is differentiation by the innovationLearn more about the owner of Camp Bow Wow.
brainly.com/question/15593483.
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Beekeeping has become a focus of Jacinta’s life. She understands that bees are fast disappearing and works hard to keep her hives healthy and productive. The Agriculture, Food, and Natural Resource pathway Jacinta works in is _____.
a). Agribusiness Systems
b). Food Products & Processing Systems
c). Animal Systems
d). Natural Resources Systems
Answer:
Explanation: B Food Products & Processing Systems
Answer:
I think it is Food products and Processing systems
Abbey Park was organized on April 1, 2016, by Trudy Crawford. Trudy is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Trudy prepared the following income statement for the quarter that ended March 31, 2017.
Abbay Park
Income statement
For the quarter ended March 31,2017
Revenues 83000
Rent Revenue
Operating expenses
Advertising expense 4200
Salaries and wages expense 27600
Utilities expense 1500
Depreciation expense 800
Maintenance expense 2800
Total operating expense 36900
Net income 46100
Trudy knew that something was wrong with the statement because net income had never exceeded $20,000 in any one quarter. Knowing that you are an experienced accountant, she asks you to review the income statement and other data. You first look at the trial balance. In addition to the account balances reported in the income statement, the ledger contains these selected balances at March 31, 2017.
Supplies 4500
Prepaid insurance 7200
Notes payable 20000
You then make inquiries and discover the following.
1. Rent revenue includes advanced rentals for summer-month occupancy, $21,000.
2. There were $600 of supplies on hand at March 31.
3. Prepaid insurance resulted from the payment of a 1-year policy on January 1, 2017.
4. The mail on April 1, 2017, brought the following bills: advertising for week of March 24, $110; repairs made March 10, $1,040; and utilities $240.
5. Wage expense totals $290 per day. At March 31, 3 days’ wages have been incurred but not paid.
6. The note payable is a 3-month, 7% note dated January 1, 2017. Instructions With the class divided into groups, answer the following.
(a) Prepare a correct income statement for the quarter ended March 31, 2017.
(b) Explain to Trudy the generally accepted accounting principles that she did not follow in preparing her income statement and their effect on her results.
Answer:
Abbey Park
a) Correct Income Statement for the quarter ended March 31, 2017:
Abbey Park
Income statement
For the quarter ended March 31,2017
Revenue
Rent Revenue $62,000
Operating expenses
Advertising expense 4,310
Salaries and wages expense 28,470
Utilities expense 1,740
Depreciation expense 800
Maintenance expense 3,840
Supplies Expense 3,900
Insurance expense 1,800
Interest expense 350
Total operating expense 45,210
Net income $16,790
b) The generally accepted accounting principles that Trudy did not follow in the preparation of her income statement are the accrual concept and the matching principle. Failure to follow these principles means that the net income will be misstated. The accounts were based on the cash basis instead of the accrual basis of generally accepted accounting principles. This means that records for non-cash transactions were not recognized while some others were recognized based on their cash effects.
Explanation:
a) Income Statement for the quarter ended March 31, 2017:
Abbey Park
Income statement
For the quarter ended March 31,2017
Revenue
Rent Revenue $83,000
Operating expenses
Advertising expense 4,200
Salaries and wages expense 27,600
Utilities expense 1,500
Depreciation expense 800
Maintenance expense 2,800
Total operating expense 36,900
Net income $46,100
Adjustments:
1. Rent Revenue = $62,000 ($83,000 - 21,000)
2. Supplies Expenses $3,900 ($4,500 - 600)
Supplies balance = 600
3. Prepaid Insurance = $5,400 ($7,200 - 1,800)
Insurance expense = $1,800 ($7,200/4)
4. Advertising Expense = $4,310 ($4,200 + 110)
Maintenance Expense = $3,840 ($2,800 + 1,040)
Utilities Expense = $1,740 ($1,500 + 240)
Expenses Payable = $1,390
5. Wages Expenses = $28,470 (27,600 + ($290 * 3))
Wages payable $870
6. Interest Expense = $350 ($20,000 * 7% * 3/12)
Below, you are provided with the value of the income elasticity of demand for a good. You will use this information to identify the percentage change in the quantity demanded for that good that arises from a particular percentage change in the average income of consumers. You will also identify whether the good is a normal good or an inferior good.
The income elasticity of demand captures the percent change in the__________ (quantity demanded, price) of a good or service that results from a percent change in the average income of consumers.
Answer:
quantity demanded
Explanation:
2/2
John's employer offered him health insurance coverage for $125 per month that would
cover him as an individual. However, he was also offered the option to cover himself, bis
wife, and his child for $295 a month. How much extra would it cost John annually to add
his family to his health insurance?
A young graduate looks to save money to buy a house 5.00 years from today. He is somewhat conservative and will invest his money in a bond fund that pays 6.00% APR with quarterly compounding. The graduate invests $12,370.00 today. How much will his account be worth in 5.00 years
Answer:
FV= $16,660.60
Explanation:
Giving the following information:
Number of periods= 5*4= 20 quarters
Interest rate= 0.06/4= 0.015
Initital investment= $12,370
To calculate the future value after 5 years, we need to use the following formula:
FV= PV*(1+i)^n
FV= 12,370*(1.015^20)
FV= $16,660.60
Tammy, a resident of Virginia, is considering purchasing a $100,000 North Carolina bond that yields 4.6% before tax. She is in the 35% Federal marginal tax bracket and the 5% state marginal tax bracket. She is aware that State of Virginia bonds of comparable risk are yielding 4.5%. However, the Virginia bonds are exempt from Virginia tax, but the North Carolina bond interest is taxable in Virginia. Tammy can deduct any state taxes paid on her Federal income tax return. In your analysis, assume that the bond amount is $100,000.
The question is incomplete. The complete question is :
Tammy, a resident of Virginia, is considering whether to purchase a $100, 000 North Carolina bond that yields 4.6% before tax. She is in the 35% Federal marginal tax bracket and the 5% state marginal tax bracket. Tammy is aware that State of Virginia bonds of comparable risk are yielding 4.5%. Virginia bonds are exempt from Virginia tax, but the North Carolina bond interest is taxable in Virginia. Tammy can deduct all state taxes paid on her Federal income tax return. In your analysis, assume that the bond amount is $100,000.If required, round your computations and answers to the nearest dollar. Determine the after tax income from each bond. Virginia Bond: $ 4, 600 North Carolina Bond: $ 4, 451 Which of the two options will provide the greater after-tax return to Tammy? Virginia bond
Solution :
Assuming that the bond amount is $100,000.
After the tax income from the Virginia bond is given by:
= 100,000 x 4.5%
= $ 4500
After the income tax from the North Carolina bond :
= (100,000 x 4.6%) x (1-5%) + (100,000 x 4.6% x 5% x 0.35)
= $ 4451
Therefore the Virginia bond will give an after tax higher return.
Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs:
Quantity Variable Cost Average Fixed Cost Average Variable Cost Average Total Cost
(Houses Painted per Month) (Dollars) (Dollars) (Dollars) (Dollars)
1 10
2 20
3 40
4 80
5 160
6 320
7 640
The efficient scale is houses.
Answer:
AVERAGE FIXED COST
1 200
2 100
3 66.7
4 50
5 40
6 33.3
7 28.6
AVERAGE VARIABLE COST
1 10
2 10
3 13.3
4 20
5 32
6 53.3
7 91.4
AVERAGE TOTAL COST
1 210
2 110
3 80
4 70
5 72
6 86.7
7 120
The efficient scale is 4 houses per month
Explanation:
Calculation for the average fixed cost, average variable cost, and average total cost for each quantity
First step is to calculate the Variable Cost,Fixed Cost and Total cost
Quantity Variable Cost Fixed Cost Total cost
$0 $200 $200 $200
1 10 +200=210
2 20 +200=220
3 40 +200=240
4 80 + 200=280
5 160 +200=360
6 320 +200=520
7 640+ 200=840
Now let calculate the average fixed cost, average variable cost, and average total cost for each quantity
Calculate AVERAGE FIXED COST
Quantity Fixed Cost AVERAGE FIXED COST
$0 $200 ---
1 200=200 (200/1)
2 200=100 (200/2)
3 200=66.7 (200/3)
4 200=50 (200/4)
5 200=40 (200/5)
6 200=33.3 (200/6)
7 200=28.6 (200/7)
Calculate for AVERAGE VARIABLE COST
Quantity Variable Cost AVERAGE VARIABLE COST
$0 $200 ---
1 10 =10 (10/1)
2 20=10 (20/2)
3 40 =13.3 (40/3)
4 80=20 (80/4)
5 160 =32 (160/5)
6 320=53.3 (320/6)
7 640=91.4 (640/7)
Calculation for AVERAGE TOTAL COST
Quantity Total cost AVERAGE TOTAL COST
$0 $200 -----
1 210 =210 (210/1)
2 220 =110 (220/2)
3 240=80 (240/3)
4 280=70 (280/4)
5 360=72 (360/5)
6 520=86.7 (520/6)
7 840=120 (840/7)
Based on the above Calculation The efficient scale is 4 houses per month reason been that it has the lowest Average total cost of 70 therefore minimizing the Average total cost.
A machine cost $239,800, has annual depreciation expense of $47,960, and has accumulated depreciation of $119,900 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $96,320, it is exchanged for a similar machine with a fair value of $281,800 and the proper amount of cash is paid. The exchange lacked commercial substance.
Required:
Prepare all entries that are necessary at April 1, 2021.
Answer:
April 1, 2021
Dr Depreciation expense 11,990
Cr Accumulated depreciation 11,990
April 1, 2021
Dr Machinery, New $281,800
Dr Accumulated depreciation- Machinery 123,890
Dr Loss on disposal of machinery 19,590
Cr Cash 185,480
Cr Machinery, Old $239,800
Explanation:
Preparation of all entries that are necessary at April 1, 2021.
April 1, 2021
Dr Depreciation expense 11,990
Cr Accumulated depreciation 11,990
(47,960 * 3/12)
(Being To record depreciation)
April 1, 2021
Dr Machinery, New $281,800
Dr Accumulated depreciation- Machinery (111,900+11,990) 123,890
Dr Loss on disposal of machinery 19,590
[185,480+$239,800-($281,800+123,890)]
Cr Cash 185,480
($281,800-$96,320)
Cr Machinery, Old $239,800
(Being To record the exchange of machinery)
Washtenaw Corporation uses a job-order costing system. The following data are for last year: Estimated Direct Labor Hours 14,000 Estimated Machine Hours 12,000 Estimated Manufacturing Overhead Cost $42,600 Actual Direct Labor Hours 11,000 Actual Machine Hours 13,000 Actual Manufacturing Overhead Cost $39,000 Washtenaw applies overhead using a predetermined rate based on direct labor-hours. What predetermined overhead rate was used last year
Answer:
$3.25 per direct labor-hour
Explanation:
Calculation for predetermined overhead rate was used last year
Predetermined overhead rate = $39,000 ÷ 12,000 direct labor-hours
Predetermined overhead rate= $3.25 per direct labor-hour
Therefore the predetermined overhead rate was used last year was $3.25 per direct labor-hour
Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go-karts: Deluxe and Basic. Activity Expected Costs Expected Activity Handling materials $ 625,000 100,000 parts Inspecting product 900,000 1,500 batches Processing purchase orders 105,000 700 orders Paying suppliers 175,000 500 invoices Insuring the factory 300,000 40,000 square feet Designing packaging 75,000 2 models Required: Compute the activity rate for each activity, assuming the company uses activity-based costing. (Round activity rate answers to 2 decimal places.)
Answer:
Handling materials = $6.25 per part
Inspecting product = $600 per batch
Processing purchase = $150 per order
Handling materials = $350 per invoice
Insuring the factory = $7.50 per square feet
Designing packaging = $37,500 per model
Explanation:
Activity rate = Estimated Cost ÷ Estimated Activity
therefore,
Handling materials = $ 625,000 ÷ 100,000 parts = $6.25
Inspecting product = $ 900,000 ÷ 1,500 batches = $600
Processing purchase = $ 105,000 ÷ 700 orders = $150
Handling materials = $ 175,000 ÷ 500 invoices = $350
Insuring the factory = $ 300,000 ÷ 40,000 square feet = $7.50
Designing packaging = $ 75,000 ÷ 2 models = $37,500
Find the EAR in each of the following cases: Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) 7% Quarterly 17 Monthly 13 Daily 10 infinite
Answer:
7.19
18.39
13,88
10.51%
Explanation:
EAR = (1 + periodic interest rate)^m - 1
m = number of compounding
a. ( 1 + 0.07/4)^4 - 1 = 7.19%
b. (1 + 0.17/12)^12 - 1 = 18.39%
c. (1 + 0.13/365)^365 - 1 = 13.88%
d. EAR =
Assume you are the CEO of Black Diamond, a global organization. You realize that some of the people in your organization are more comfortable working in a strong hierarchy while others prefer to work more like colleagues with their managers than as leaders. You have a project that requires highly structured reporting relationships with a clear hierarchy because it is a joint venture project. You believe people from some cultures may not feel comfortable with such a strong hierarchical relationship. In this case, you might seek to put people on the project who are from a country: ________
A. High uncertainty avoidance
B. High collectivism
C. High assertiveness
D. High power distance
Answer:
The correct answer is the option D: High power distance.
Explanation:
To begin with, the anthropological concept known as "High Power Distance" is specifically refered to the relationship that exists between the members of a community in where there are established ranks and places that everybody has to follow and obey, knowing that there are high powers and low powers. Therefore that this concept was used in communities to see how the cultures were important to affect the tasks of the groups and how they collaborate with each other. That is why, that in the case presented it would be better to find people who came from a culture with high power distance due to the fact that they will be more comfortable working with a highly structured and strong hierarchy.
Suppose the government imposes a tax on cheese. The deadweight loss from this tax will likely be greater in the a. eighth year after it is imposed than in the first year after it is imposed because demand and supply will be less elastic in the first year than in the eighth year. b. first year after it is imposed than in the eighth year after it is imposed because demand and supply will be less elastic in the first year than in the eighth year. c. first year after it is imposed than in the eighth year after it is imposed because demand and supply will be more elastic in the first year than in the eighth year.
Answer:
A
Explanation:
Deadweight loss of tax measures the decrease in demand as a result of an increase in tax
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.
Demand is less elastic in the short run because there is no enough time for consumers to find suitable and cheaper substitutes. As time goes on, demand becomes more elastic because consumers would have had enough time to find cheaper substitutes
Supply is also less elastic in the short time and more elastic in the long run
You and your friends hike a total of 8 miles to the nearest campsite (Activity A). Upon arriving you break off into teams. One team will set up tents and hammocks for everyone to sleep in (Activity B). At the same time, another team will get wood for a fire (Activity C). Once they have the wood, that same team then proceeds to start the fire (Activity D). The third team will walk to find water (Activity E) and once they find it they will to collect water and bring it back to camp (Activity F). Once the fire is ready and the water is brought back to camp the two groups- the one collecting firewood and the one collecting water- will then purify the water (Activity G). Once the camp is set up and the water is purified everyone will come together and cook dinner around the campfire (Activity H). Once dinner is prepared and eaten half of the group stays behind to put out the fire (Activity I) and half of the group walks away from the campsite to dispose of the food waste (Activity J). After disposing of the food waste the second half of the group returns to the camp (Activity K). Once everyone is at the campsite the day of camping ends
Activity Optimistic time Most Likely Time Pessimistic Time
to complete to Complete to Complete
A Hike to the campsite 3 5 8
B Set up campsite 2 4 5
C Collect wood for fire 1 3 5
D Start a fire 1 2 3
E Find water 0.5 1 3
F Collect water and bring it 1 2 4
back to canm
G Purify the water 1 2 4
H Cook and eat dinner 1 3 4
I Put out fire 1 2 4
J Dispose of food waste 0.5 2 3
K Return from food waste disposal 0.25 1 2
a. Determine the critical path of the PERT chart in a.
b. Assuming a deterministic system how long will it take to complete the entire process.
Answer:
a. The critical path is 16 minutes.
b. The length of time to complete the entire process = 23 minutes.
Explanation:
a) Data and Calculations:
Activity Optimistic time Most Likely Time Pessimistic Time
to complete to Complete to Complete
A Hike to the campsite 3 5 8
B Set up campsite 2 4 5
C Collect wood for fire 1 3 5
D Start a fire 1 2 3
E Find water 0.5 1 3
F Collect water & bring it
back to camp 1 2 4
G Purify the water 1 2 4
H Cook and eat dinner 1 3 4
I Put out fire 1 2 4
J Dispose of food waste 0.5 2 3
K Return from food
waste disposal 0.25 1 2
Total time 12.25 27 45
Critical path: Activity A - Activity B
Activity A - Activity C 3 - Activity D 2 - Activity E 1 - Activity F 2
Activity G 2 - Activity H 3 - Activity I and J 2 - Activity K 1
= 3 + 2 + 1 + 2+ 2 + 3 + 2 + 1 = 16 minutes
Length of time to complete the entire process = 27 - 4 = 23
The critical path identifies the longest stretch of dependent activities and measuring the time required to complete them from start to finish.
Based on the following information, determine the location quotient for Amusement City and whether this city has a competitive advantage in the amusement industry: employment in amusements and recreation in Amusement City: 54,446; total employment in Amusement City: 578,477; employment in amusements and recreation (nationally): 1,381,377; total employment (nationally): 106,201,232.
a. 0.23; No, the city does not have a competitive advantage in this industry.
b. 4.43; No, the city does not have a competitive advantage in the industry
c. 0.23; Yes, the city has a competitive advantage in this industry
d. 4.43; Yes, the city has a competitive advantage in this industry
Answer:
a. 0.23; No, the city does not have a competitive advantage in this industry
Explanation:
Calculation to determine the location quotient for Music City and whether this city has a competitive advantage in the entertainment industry
Location quotient for Music City= (3020/ 656,785)/ (2,160,970/ 106,201,232)
Location quotient for Music City=0.004598/0.020347881
Location quotient for Music City= 0.225
Location quotient for Music City= 0.23 (Approximately)
Based on the above calculation the city does NOT have a competitive advantage in this industry.
The LFH Corporation makes and sells a single product, Product T. Each unit of Product T requires 1.5 direct labor-hours at a rate of $10.50 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. LFH Corporation needs to prepare a Direct Labor Budget for the second quarter of next year. The company has budgeted to produce 28,000 units of Product T in June. The finished goods inventories on June 1 and June 30 were budgeted at 800 and 600 units, respectively. Budgeted direct labor costs for June would be:
Answer:
$441,000
Explanation:
Budgeted direct labor cost = Budgeted production * Hours per unit * Rate per hour
Budgeted direct labor cost = 28,000 units * 1.5 DLH * $10.50
Budgeted direct labor cost = $441,000
So, budgeted direct labor cost for June would be $441,000
You are considering changing jobs. Your goal is to work for three years and then return to school full-time in pursuit of an advanced degree. A potential employer just offered you an annual salary of $41,000, $43,000, and $46,000 a year for the next three years, respectively. All salary payments are made as lump sum payments at the end of each year. The offer also includes a starting bonus of $3,000 payable immediately. What is this offer worth to you today at a discount rate of 6.75%?
A. $11,406.
B. $114,545.
C. S116,956.
D. $120,212.
E. S133,697.
Answer:
C. S116,956.
Explanation:
The computation of the offer worth today is shown below:
Particulars 0 1 2 3 Total
Salary 3000 41000 43000 46000
PVIF at 6.75% 1.0000 0.9368 0.8775 0.8220
Present value 3000 38407.49 37733.99 37814.14 116956
Bergamo Bay's computer system generated the following trial balance on December 31, 2017. The company's manager knows something is wrong with the trial balance because it does not show any balance for Work in Process Inventory but does show a balance for the Factory Overhead account. In addition, the accrued factory payroll (Factory Wages Payable) has not been recorded.
After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date.
Materials requisition 21-3010: ............................$10,200 direct materials to Job 402
Materials requisition 21-3011: ............................$18,600 direct materials to Job 404
Materials requisition 21-3012: ........................................$5,600 indirect materials
Labor time ticket 6052: ........................................$36,000 direct labor to Job 402
Labor time ticket 6053: ........................................$23,800 direct labor to Job 404
Labor time ticket 6054: ....................................................$8,200 indirect labor
Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 200% of direct labor cost.
Required
1. Use information on the six source documents to prepare journal entries to assign the following costs.
a. Direct materials costs to Work in Process Inventory.
b. Direct labor costs to Work in Process Inventory.
c. Overhead costs to Work in Process Inventory.
d. Indirect materials costs to the Factory Overhead account.
e. Indirect labor costs to the Factory Overhead account.
2. Determine the revised balance of the Factory Overhead account after making the entries in part 1. Determine whether there is any under- or overapplied overhead for the year. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold, assuming the amount is not material.
3. Prepare a revised trial balance.
4. Prepare an income statement for 2017 and a balance sheet as of December 31, 2017.
Analysis Component
5. Assume that the $5,600 on materials requisition 21-3012 should have been direct materials charged to Job 404. Without providing specific calculations, describe the impact of this error on the income statement for 2017 and the balance sheet at December 31, 2017.
Question Completion:
Trial Balance as at December 31, 2017:
Debit Credit
Cash $170,000
Accounts receivable 75,000
Raw materials inventory 80,000
Work in process inventory 0
Finished goods inventory 15,000
Prepaid rent 3,000
Accounts payable 17,000
Notes payable 25,000
Common stock 50,000
Retained earnings 271,000
Sales 373,000
Cost of goods sold 218,000
Factory overhead 115,000
Operating expenses 60,000
Totals $736,000 $736,000
Answer:
Bergamo Bay
1. Journal Entries to assign the following costs:
a. Direct materials costs to Work in Process Inventory.
Debit Work in Process $10,200
Credit Raw materials $10,200
To record direct materials for Job 402.
Debit Work in Process $18,600
Credit Raw materials $18,600
To record direct materials for Job 404.
b. Direct labor costs to Work in Process Inventory.
Debit Work in Process $36,000
Credit Factory Payroll Payable $36,000
To record ticket 6052 direct labor to Job 402.
Debit Work in Process $23,800
Credit Factory Payroll Payable $23,800
To record ticket 6053 direct labor to Job 404.
c. Overhead costs to Work in Process Inventory.
Debit Work in Process $119,600
Credit Factory Overhead $119,600
To apply overhead costs, 200% of direct labor cost to WIP.
d. Indirect materials costs to the Factory Overhead account.
Debit Factory Overhead $5,600
Credit Raw materials $5,600
To record indirect materials to factory overhead.
e. Indirect labor costs to the Factory Overhead account.
Debit Factory Overhead $8,200
Credit Factory Payroll Payable $8,200
To record indirect labor costs to factory overhead.
2. Revised balance of the Factory Overhead account after above entries:
= $9,200
Underapplied overhead = $9,200
Adjusting Journal Entry to Cost of Goods Sold:
Debit Cost of Goods Sold $9,200
Credit Factory Overhead $9,200
To record underapplied overhead to cost of goods sold.
3. Revised Balance as at December 31, 2017:
Debit Credit
Cash $170,000
Accounts receivable 75,000
Raw materials inventory 45,600
Work in process inventory 0
Finished goods inventory 223,200
Prepaid rent 3,000
Accounts payable $17,000
Factory payroll payable 65,400
Notes payable 25,000
Common stock 50,000
Retained earnings 271,000
Sales 373,000
Cost of goods sold 227,200
Factory overhead 0
Operating expenses 60,000
Totals $804,000 $801,400
4. Income Statement for the year ended December 31, 2017
Sales 373,000
Cost of goods sold 227,200
Operating expenses 60,000 287,200
Net Income 85,800
Retained Earnings 271,000
Net income 85,800
Retained earnings 356,800
Balance Sheet as of December 31, 2017:
Cash $170,000
Accounts receivable 75,000
Raw materials inventory 45,600
Work in process inventory 0
Finished goods inventory 223,200
Prepaid rent 3,000 $516,800
Accounts payable $17,000
Factory payroll payable 65,400
Notes payable 25,000
Total liabilities 107,400
Common stock 50,000
Retained earnings 356,800 406,800
Total Liabilities and equity 514,200
5. Assume that the $5,600 on materials requisition 21-3012 should have been direct materials charged to Job 404. Without providing specific calculations, describe the impact of this error on the income statement for 2017 and the balance sheet at December 31, 2017
If the $5,600 were direct materials instead of indirect materials, it would not be expensed in the income statement, through Cost of Goods Sold. Instead, it would be carried forward as Finished Goods Inventory in the Balance Sheet.
Explanation:
a) Data and Calculations:
Trial Balance as at December 31, 2017:
Debit Credit
Cash $170,000
Accounts receivable 75,000
Raw materials inventory 80,000
Work in process inventory 0
Finished goods inventory 15,000
Prepaid rent 3,000
Accounts payable $17,000
Notes payable 25,000
Common stock 50,000
Retained earnings 271,000
Sales 373,000
Cost of goods sold 218,000
Factory overhead 115,000
Operating expenses 60,000
Totals $736,000 $736,000
Raw materials inventory
Account Titles Debit Credit
Balance 80,000
Work in Process (Job 402) 10,200
Work in Process (Job 404) 18,600
Factory overhead 5,600
Balance 45,600
Work in process inventory
Account Titles Debit Credit
Balance 0
Raw materials 10,200
Raw materials 18,600
Factory payroll 36,000
Factory payroll 23,800
Overhead 119,600
Finished Goods 208,200
Finished goods inventory
Account Titles Debit Credit
Balance 15,000
WIP 208,200
Balance 223,200
Factory Payroll Payable
Account Titles Debit Credit
WIP ticket 6052 36,000
WIP ticket 6053 23,800
Factory overhead 5,600
Balance 65,400
Cost of goods sold
Account Titles Debit Credit
Balance 218,000
Factory overhead 9,200
Balance 227,200
Factory overhead
Account Titles Debit Credit
Balance 115,000
Raw materials 5,600
Payroll Payable 8,200
Work in Process 119,600
Underapplied:Cost of goods 9,200
M. K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a national exchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted that the company’s earnings would grow by 20% this year. Unfortunately, sales have been less than expected for the year, and Gallant concluded within two weeks of the end of the fiscal year that it would be impossible to report an increase in earnings as large as predicted unless some drastic action was taken. Accordingly, Gallant has ordered that wherever possible, expenditures should be postponed to the new year—including canceling or postponing orders with suppliers, delaying planned maintenance and training, and cutting back on end-of-year advertising and travel. Additionally, Gallant ordered the company’s controller to carefully scrutinize all costs that are currently classified as period costs and reclassify as many as possible as product costs. The company is expected to have substantial inventories at the end of the year.
1. Why would reclassifying period costs as product costs increase this period’s reported earnings?
2. Do you believe Gallant’s actions are ethical? Why or why not?
Sue would like to save up for a down payment on a home she hopes to purchase in 5 years. If she wishes to have $20,000 saved up at the end of five years and can earn 3.5% annually in her savings account. If she would like to make equal annual deposits, what amount will her deposits need to be in order to reach her goal
Answer:
Annual deposit= $3,729.63
Explanation:
Giving the following information:
Future value (FV)= $20,000
Number of periods (n)= 5 years
Interest rate (i)= 3.5% = 0.035
To calculate the annual deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (20,000*0.035) / [(1.035^5) - 1]
A= $3,729.63
Jan Gentry is the owner of a small company that produces electric scissors used to cut fabric. The annual demand is 8,000 scissors, and Jan produces the scissors in batches. On average, Jan can produce 150 scissors per day, and during the production pro-cess, demand for scissors has been about 40 scissors per day. The cost to set up the production process is $100, and it costs Jan 30 cents to carry one pair of scissors for one year. How many scissors should Jan produce in each batch
Answer:
2,697 scissors per batch
Explanation:
Q = √[2KD / h(1 - x)]
K = setup cost = $100D = annual demand = 8,000h = annual holding cost = $0.30x = annual demand / annual production rate = 8,000 / (150 x 200) = 0.267Q = √{(2 x $100 x $8,000) / [$0.30 x (1 - 0.267)]} = √($1,600,000 / 0.22) = 2,696.8 ≈ 2,697 scissors per batch
Journalize the December 31 adjusting entry required if the amount of unearned fees at the end of the year is $12,530. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Prepaid Insurance
15 Land
16 Equipment
17 Accumulated Depreciation-Equipment
LIABILITIES
21 Accounts Payable
22 Unearned Fees
23 Salaries Payable
24 Taxes Payable
EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
REVENUE
41 Fees Earned
EXPENSES
51 Advertising Expense
52 Insurance Expense
53 Rent Expense
54 Salary Expense
55 Supplies Expense
56 Utilities Expense
57 Depreciation Expense
59 Miscellaneous Expense
Answer:
Dr Unearned fees $24,510
Cr Fees earned $24,510
Explanation:
Preparation of the December 31 adjusting entry required
Based on the information given if the balance shown in the unearned fees account was the amount of $37,040 before adjustment at the end of the year which means that if the amount of unearned fees at the end of the year is the amount of $12,530 the December 31 adjusting entry required will be :
Dr Unearned fees $24,510
Cr Fees earned $24,510
($37,040-$12,530)
A company issued 6-year, 8% bonds with a par value of $750,000. The market rate when the bonds were issued was 7.5%. The company received $757,500 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:
Answer:
$28,406.25
Explanation:
Calculation for how much is the amount of interest expense for the first semiannual interest period Using the effective interest method
Interest expense=$757,500 x .075 x ½ year
Interest expense= $28,406.25
Therefore the amount of interest expense for the first semiannual interest period is $28,406.25
Prepare the adjusting journal entries for the following transactions.
1. Supplies for office use were purchased during the year for $620, of which $160 remained on hand (unused) at year-end.
2. Interest of $310 on a note receivable was earned at year-end, although collection of the interest is not due until the following year.
3. At year-end, salaries and wages payable of $4,200 had not been recorded or paid.
4. At year-end, one-half of a $2,600 advertising project had been completed for a client, but nothing had been billed or collected.
5. Re-deemed a gift card for $660 of services.
Answer and Explanation:
The adjusting entries are shown below:
1. Supplies expense $460 ($620 - $160)
To supplies $460
(being supplies expense is recorded)
2. Interest receivable $310
To Interest revenue $310
(Being interest revenue is recorded)
3. wages expense $4,200
To wages payable $4,200
(Being wages expense is recorded)
4. Account receivable $1,300 (50% of $2,600)
To Service revenue $1,300
(Being service revenue is recorded)
5. Unearned revenue $660
To Service revenue $660
(Being service revenue is recorded)
The smallest amount you must pay each month on a loan is called the A. annual percentage rate B. annual fee C. minimum finance charge D. minimum monthly payment SUBMIT
Answer: D. minimum monthly payment
Explanation:
The minimum monthly payment is the lowest that a person should pay per month on a loan, particularly that of a credit card, if they do not want to be ruled as being in default.
The advantage of this is that the person will still be in good standing with the creditor meaning that they have not defaulted (really bad for credit score). Disadvantage is that the loan interest will be higher as it is based on a larger balance than had the person paid more.
Compute the 2019 Federal income tax liability and the marginal and effective tax rates in each of the following independent cases. Click here to access the 2019 tax rate schedule. If required, round the tax liability the nearest dollar. When required, round the average rates to four decimal places before converting to a percentage (i.e. .67073 would be rounded to .6707 and entered as 67.07%). a. Chandler is single and reports taxable income of $125,200.
Answer:
Tax liability = $24,222.50Marginal rate = 24%Average rate = 19.35%Explanation:
Question requires that we find the Tax liability, Marginal rate and Average rate.
Tax liability:
Chandler is in the $84,200 to $160,725 bracket.
= 14,382.50 + 24% * (125,200 - 84,200)
= 14,382.50 + 9,840
= $24,222.50
Marginal rate = 24%
Chandler's bracket is the 24% bracket.
Average rate:
= Tax/ Taxable income
= 24,222.50 / 125,200
= 19.35%
Dr. Ruth is going to borrow $8,700 to help write a book. The loan is for one year and the money can be borrowed at either the prime rate or the LIBOR rate. Assume the prime rate is 9 percent and LIBOR 0.5 percent less. Also assume there will be a $75 transaction fee with LIBOR (this amount must be added to the interest cost with LIBOR). a. What is the effective interest rate on the LIBOR loan
Answer: 9.37%
Explanation:
The effective interest rate on the LIBOR loan is calculated as follows based on the information given in the question:
Principal = $8700
Prime rate = 9%
LIBOR net interest rate = 9% - 0.5% = 8.5%
Interest Cost will be:
= 8700 × 8.50 × 1/100
= 739.50
We the add the transaction Fee of $75 and thus will be:
= $739.50 + $75.00
= $814.50.
Then, the effective interest rate will be:
= $814.50 × 100/$8700
= $814.50 × $0.0115
= 9.37%
On September 30, 2012, Wildhorse Company issued 9% bonds with a par value of $580,000 due in 20 years. They were issued at 97 and were callable at 103 at any date after September 30, 2017. Because Wildhorse Company was able to obtain financing at lower rates, it decided to call the entire issue on September 30, 2018, and to issue new bonds. New 7% bonds were sold in the amount of $700,000 at 104; they mature in 20 years. Wildhorse Company uses straight-line amortization. Interest payment dates are March 31 and September 30.
Required:
Prepare journal entries to record the redemption of the old issue and the sale of the new issue on September 30, 2018.
Answer:
Wildhorse Company
Journal Entries:
September 30, 2018:
Debit 9% Bonds Payable $580,000
Debit Bond Redemption Expenses $17,400
Credit Cash $597,400
To record the redemption of the 9% Bonds Payable at 103.
September 30, 2018:
Debit Cash $728,000
Credit 7% Bonds Payable $700,000
Credit Bonds Premium $28,000
To record the sale of 7% Bonds Payable at 104.
Explanation:
a) Dat and Calculations:
9% bonds payable at par value = $580,000
Issued at a discount of $17,400 ($580,000 * 97/100) - $580,000
Redeemed at a premium of $17,400 ($580,000 * 103/100) - $580,000
7% bonds payable at par value = $700,000
Issued at a premium of $28,000 ($700,000 * 104/100) - $700,000
On January 1, 2021, Red Flash Photography had the following balances: Cash, $20,000; Supplies, $8,800; Land, $68,000; Deferred Revenue, $5,800; Common Stock $58,000; and Retained Earnings, $33,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $28,000. 2. May 20 Provide services to customers for cash, $43,000, and on account, $38,000. 3. August 31 Pay salaries to employees for work in 2021, $31,000. 4. October 1 Paid for one year's rent in advance, $20,000. 5. November 17 Purchase supplies on account, $30,000. 6. December 30 Pay dividends, $2,800.
The following information is available on December 31, 2021:
1. Employees are owed an additional $4,800 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $5,800 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.
Answer:
A. 15-Feb
Dr Cash $ 28,000.00
Cr Common Stock $ 28,000.00
20-May
Dr Cash $ 43,000.00
CrAccounts Receivable $ 38,000.00
Cr To Service Revenue $ 81,000.00
31-Aug
Dr Salaries Expense $ 31,000.00
Cr To Cash $ 31,000.00
1-Oct
Dr Prepaid Rent $ 20,000.00
Cr To Cash $ 20,000.00
17-Nov Dr Supplies $ 30,000.00
Cr Accounts Payable $ 30,000.00
30-Dec
Dr Dividends $ 2,800.00
Cr Cash $ 2,800.00
31-Dec
Dr Salaries Expense $ 4,800.00
Cr Salaries Payable $ 4,800.00
31-Dec
Dr Rent Expense $ 5,000.00
Cr Prepaid Rent $ 5,000.00
31-Dec
Dr Supplies Expense $ 33,000.00
Cr Supplies $ 33,000.00
31-Dec
Dr Deferred Revenue $ 5,800.00
Cr Service Revenue $ 5,800.00
B. $ 13,000.00
C. $ 43,200.00
D.TOTAL ASSETS $ 164,000.00
TOTAL LIABILITIES and EQUITY $ 164,000.00
Explanation:
Preparation of General Journal, Income Statement, Statement of SE, Balance Sheet
15-Feb
Dr Cash $ 28,000.00
Cr Common Stock $ 28,000.00
20-May
Dr Cash $ 43,000.00
CrAccounts Receivable $ 38,000.00
Cr To Service Revenue $ 81,000.00
31-Aug
Dr Salaries Expense $ 31,000.00
Cr To Cash $ 31,000.00
1-Oct
Dr Prepaid Rent $ 20,000.00
Cr To Cash $ 20,000.00
17-Nov Dr Supplies $ 30,000.00
Cr Accounts Payable $ 30,000.00
30-Dec
Dr Dividends $ 2,800.00
Cr Cash $ 2,800.00
31-Dec
Dr Salaries Expense $ 4,800.00
Cr Salaries Payable $ 4,800.00
31-Dec
Dr Rent Expense $ 5,000.00
Cr Prepaid Rent $ 5,000.00
($ 20000 x 3/12)
31-Dec
Dr Supplies Expense $ 33,000.00
Cr Supplies $ 33,000.00
($ 8800 + $ 30000 - $ 5800)
31-Dec
Dr Deferred Revenue $ 5,800.00
Cr Service Revenue $ 5,800.00
B. Preparation of INCOME STATEMENT
Service REVENUE $ 86,800.00
Less: EXPENSES
Salaries Expense $ 35,800.00
Rent Expense $ 5,000.00
Supplies Expense $ 33,000.00
Net Income $ 13,000.00
($ 86,800.00-$ 73,800.00)
Therefore the income statement will be $ 13,000.00
Calculation for the STATEMENT OF RETAINED EARNINGS
Beginning Balance $ 33,000.00
Add: Net Income $ 13,000.00
Less: Dividends $ (2,800.00)
Ending Balance $ 43,200.00
Therefore retained earnings will be $ 43,200.00
D. Preparation of BALANCE SHEET
ASSETS
Cash $ 37,200.00
Accounts Receivable $ 38,000.00
Prepaid Rent $ 15,000.00
Supplies $ 5,800.00
Land $ 68,000.00
TOTAL ASSETS $ 164,000.00
LIABILITIES and EQUITY
Liabilities
Accounts Payable $ 30,000.00
Salaries Payable $ 4,800.00
Total Liabilities $ 34,800.00
Equity
Common stock $ 86,000.00
Retained Earnings $ 43,200.00
Total Equity $ 129,200.00
TOTAL LIABILITIES and EQUITY $ 164,000.00
Therefore the balance sheet will be
ASSETS $ 164,000.00
TOTAL LIABILITIES and EQUITY $ 164,000.00