Answer:
1.-4,000 Favorable
2.6,000 Unfavorable
3.$2,000 Unfavorable
Explanation:
1.Preparation to determine variable factory overhead Controllable variance
Using this formula
Variable factory overhead Controllable variance=Standard hours * rate- Fixed factory overhead rate
Let plug in the formula
Variable factory overhead Controllable variance=14,000 * 25.00- 6.00= 266,000
Variable factory overhead Controllable variance = 262,000- 266,000
Variable factory overhead Controllable variance= -4,000 Favorable
2. Preparation to determine fixed factory overhead volume variance .
First step is to deduct Productive capacity hours from total factory overhead cost standard hours
15,000 hours -14,000 hours =1,000 hrs
Second step is to find the fixed factory overhead volume variance
Using this formula
Fixed factory overhead volume variance=Un-used Numbers of hrs*Fixed factory overhead rate
Let plug in the formula
Fixed factory overhead volume variance=1,000 hrs*$6.00
Fixed factory overhead volume variance= 6,000 Unfavorable
3. Preparation to Determine total factory overhead cost variance
Variable Factory Overhead Controllable Variance $4,000 Favorable
Fixed Factory Overhead Volume Variance $6,000 Unfavorable
Factory Overhead Cost Variance$2,000 Unfavorable
Prepare an income statement under absorption costing. Round all final answers to whole dollars. Sullivan Equipment Company Absorption Costing Income Statement For the Month Ended March 31 Sales $ 653,200 Cost of goods sold: Cost of goods manufactured $ 352,000 Inventory, March 31 38,880 Total cost of goods sold 313,120 Gross profit $ 340,080 Selling and administrative expenses 234,400 Income from operations $ 574,480
Answer:
Income Statement For the Month Ended March 31
Sales $ 653,200
Cost of goods sold:
Cost of goods manufactured $ 352,000
Less Inventory, March 31 ($ 38,880)
Total cost of goods sold ($ 313,120)
Gross profit $ 340,080
Less Expenses :
Selling and administrative expenses ($ 234,400)
Income from operations $ 105,680
Explanation:
The Product cost in absorption costing includes All Manufacturing Costs. All Non-Manufacturing Costs are treated as Period Costs that are Expensed during the period of Operation.
A 20-year-old student wants to save $5 a day for her retirement. Every day, she places $5 in a drawer. At the end of EACH year, she invests the accumulated savings in an automated account with an expected annual return of 9%, paid annually.
Required:
a. If she begins saving today; How much money will she have when she is 65?
b. If she did not start saving until she was 45 years old, how much would she have at 65?
c. How much must the 45-year-old deposit monthly to catch the 20-year old?
Answer:
a. If she begins saving today; How much money will she have when she is 65?
Assuming that the student started saving the day of her birthday, she will have $1,825 at the end of each year. So we must find the future value of an ordinary annuity with 45 payments worth $1,825 and 9% interest rate:
FV = $1,825 x 525.85873 (FV annuity factor, 9%, 45 periods) = $959,692.18
b. If she did not start saving until she was 45 years old, how much would she have at 65?
FV = $1,825 x 51.16012 (FV annuity factor, 9%, 20 periods) = $93,367.22
c. How much must the 45-year-old deposit monthly to catch the 20-year old?
$959,692.18 = annuity payment x 51.16012
annuity payment = $959,692.18 / 51.16012 = $18,758.60
What is the shortcut for the Find/Replace command screen?
O F5
O Ctrl + ?
O Ctrl + F
O F4
Answer it i Crtl+F
Explanation:
Answer:
is
3. Ctrl + F
Chevron signs $73b gas deal Gorgon, Chevron's huge liquefied natural gas project, is finally going forward. The company, along with Exxon Mobil and Shell will produce natural gas off the northwest coast of Australia. Gorgon and surrounding fields hold an estimated 40 trillion cubic feet of natural gas, the equivalent of 6.7 billion barrels of oil. Gorgon is located for easy shipment to Asia and will employ 10,000 workers. Source: Radio Australia, September 10, 2009 Explain how this huge project will influence Australia's potential GDP and U.S. potential GDP.
Answer:
Australia - Shift Australia's production function upward, create a movement up along the production function as the full-employment quantity of labor increases, and increase potential GDP
United States - Will not change potential GDP as production happens in Australia
Explanation:
Australia's production potential will rise which will be depicted by a shift upwards in the Production Possibilities Frontier (PPF) thereby leading to an increase in the full employment quality of labor and potential GDP for Australia.
As the production is happening in Australia, it will not affect potential GDP in the US.
Coronado, Inc. had net sales in 2017 of $1,493,700. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $329,800 debit, and Allowance for Doubtful Accounts $4,060 credit. If Coronado estimates that 9% of its receivables will prove to be uncollectible. Prepare the December 31, 2017, journal entry to record bad debt expense.
Answer:
December 31,
DR Bad Debt Expense $25,622
CR Allowance for Doubtful Accounts $25,622
Explanation:
The Allowance for Doubtful Accounts helps provide a sort of cushion for the business by accounting for potential bad debts for the business so that if bad debts occur, they are taken from this account and not the Receivables account.
Coronado estimates that 9% of receivables will be uncollectible so;
= 9% * 329,800
= $29,682
However, $4,060 is already in the account so the new balance that should be brought into the account to ensure that it totals $29,682 is;
= 29,682 - 4,060
= $25,622
Florida Keys Construction installs swimming pools. It calculates that warranty obligations are 3% of sales. For the year just ending, Florida Keys’ sales were $1,450,000. Previous quarterly entries debiting Warranty Expense totaled $28,700. Determine the estimated warranty expense for the year and make the journal entry necessary to bring the account to the needed balance.
Answer:
Dec. 31
Debit Warranty Expense 14,800
Credit Warranty Payable 14,800
Explanation:
Calculation to Determine the estimated warranty expense for the year
Based on the information given we were told that Florida Keys sales has the amount of $1,450,000 with 3% sales warranty obligation, and Florida keys as well had debit Warranty Expense of the amount of $28,700 this means that the Estimated warranty expense will be calculated as;
$1,450,000 * 3% =$43,500
$43,500-$28,700=$14,800
Therefore the Journal entry will be:
Dec. 31
Debit Warranty Expense 14,800
Credit Warranty Payable 14,800
A borrower has applied for a refinance on her property valued at $235,000. She currently has a HELOC with a $47,000 limit and currently owes $25,850. The borrower has applied for a first mortgage of $164,500. Which of the following LTV, CLTV, and HLTV are accurate based on this information?
a. 70% / 80%/ 95%
b. 70% / 83% / 100%
c. 70% / 81% / 90%
d. 75% / 80% / 91%
Answer:
c. 70% / 81% / 90%
Explanation:
Loan to Value ratio LTV is the ratio of borrowers principal loan balance to the appraisal value of the property. Combined Loan to Value Ratio CLTV is the ratio which considers the sum of all the loan taken on the property. High loan to Value ratio is the one which loan is exceeding by the value of borrowers home.
The desired reserve ratio is 3 percent. Robert deposits $3,000 in Bank America. Bank America keeps its minimum desired reserves and lends the excess to Fredrica. How much does Bank America lend to Fredrica?
Answer: $2,910
Explanation:
Bank America is required by law to keep 3% of all deposits as reserves and they can lend the rest which they did to Fredrica.
The amount they lent to Fredrica therefore is;
= 3,000 (1 - 3%)
= 3,000 * 97%
= $2,910
A municipal revenue bond trust indenture includes an "additional bonds test" covenant. This prohibits the issuer from doing all the following EXCEPT:_________.
A. issuing parity bonds unless the facility's revenues are sufficient to pay for existing and proposed debt
B. issuing senior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt
C. issuing junior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt
D. issuing bonds with the same lien on pledged revenues unless the facility's revenues are sufficient to pay for existing and proposed debt
Answer:
C. issuing junior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt
Explanation:
A municipal revenue bond trust indenture includes an "additional bonds test" covenant. This prohibits the issuer from doing all the following;
1. issuing parity bonds unless the facility's revenues are sufficient to pay for existing and proposed debt.
2. issuing senior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt.
3. issuing bonds with the same lien on pledged revenues unless the facility's revenues are sufficient to pay for existing and proposed debt
On the other hand, it allows issuing junior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt.
An additional bonds test ultimately implies that the issuer is prohibited or restricted from the issuance of new bonds against the revenues of any other firm having same parity lien against pledged revenues, except it has sufficient funds (revenues) to do so.
Generally, in bond transactions, prohibition are made for selling debt having a senior claim when compared to that of the old (existing) bondholders such as creditors or investors.
A sporting goods store purchased $10,150 worth of ski boots in October. The store had $4,350 of ski boots in inventory at the beginning of October and expects to have $3,800 of ski boots in inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October
Answer:
The budgeted cost of goods sold for October is $9,600.
Explanation:
Prepare a Budgeted Costs of Goods Sold for October as follows :
Budget Purchases $10,150
Add Budgeted Closing Stock $3,800
Needed $13,950
Less Budgeted Opening Stock ($4,350)
Budgeted Cost of Goods Sold $9,600
Conclusion :
The budgeted cost of goods sold for October is $9,600.
Kingsbury Manufacturing has net sales revenue of $850,000, cost of goods sold of $344,600, and all other expenses of $328,300. The gross profit percentage is closest to:
Answer:
56.46%
Explanation:
The computation of the gross profit percentage is shown below
Gross profit percentage is
= (Sales - cost of goods sold) ÷ (Sales) × 100
where,
Sales is $850,000
And, the cost of goods sold is $344,600
Now placing these values to the above formula
So, the gross profit percentage is
= ($850,000 - $344,600) ÷ ($850,000) × 100
= $505,400 ÷ $850,000 × 100
= 56.46%
Explain in your own words assertiveness and power distance as it relates to management. Provide your own examples. g
Explanation:
Manage an organization is a complex task, which must be performed by a leader with well-developed skills. Currently, in the globalized era, where there is an intense flow of information and an extremely competitive market, there are leadership characteristics that cannot be overlooked.
In centralized organizations, there is less flexibility in the organizational structure, and power is concentrated in the hands of the highest hierarchical level of the organization, it is what can be called distance of power, which is a type of autocratic leadership where there is no greater participation decision-making.
However, this characteristic is less and less recurrent in a market marked by cultural and technological interactions.
Business management by an autocratic leader is being replaced by assertiveness, which is the characteristic of a democratic leader, whose focus is on the inclusion of people, assistance and leadership aimed at creating an organizational culture based on ethical concepts, respect and reliability .
Therefore, in the current scenario, where companies have a highly valued social responsibility, leadership must be focused on the inclusion and appreciation of employees, creating a sense of unity and appreciation so that there is a positive work environment and increase their position in the market
Lynda Jones College Plan On her 10th birthday Linda Jone's parents decide to deposit $4,000 in a 529 account for their daughter to go to college. They intend to put an additional $4,000 in the account each year on her 11th, 12th, ..., 17yh birthdays. Assume all account balances will earn 8% per year. On Lynda's 18th, 19th, 20th, and 21st birthdays, her parents will withdraw $20,000 to pay for Linda's college education. Questions: Is the $4,000 savings per year sufficient to cover the anticipated college expenses? Is Linda's 529 account underfunded? What should be the annual deposit in Lynda's 529 account to cover entirely her tuition and fees? What will be the PV of Lynda's college tuition on her 18th birthday? Summarize the results of your analysis and provide your recommendation in this quizz. Create a spreadsheet and submit it in you Drop Box.
Answer:
Is the $4,000 savings per year sufficient to cover the anticipated college expenses?
No, since the maximum withdrawal per year (for 4 years) earning an 8% interest rate is $12,846.23. Her parents will be $7,153.77 short every year.Is Linda's 529 account underfunded?
Yes, her account will have $42,548 when she turns 18 and that isn't enough to cover her college expenses.What should be the annual deposit in Lynda's 529 account to cover entirely her tuition and fees?
$6,227.51What will be the PV of Lynda's college tuition on her 18th birthday?
If Lynda's parents want to cover her college expenses, they need to have $66,242 on her 529 account.Explanation:
Lynda's 529 account will have the following balance when she is 18:
future value = annual payment x annuity factor (FV annuity factor, 8%, 8 periods) = $4,000 x 10.637 = $42,548
her parents will make 4 withdrawals:
present value = annual withdrawal x annuity factor (PV annuity factor, 8%, 4 periods)
maximum annual withdrawal = $42,548 / 3.3121 = $12,846.23
required balance = $20,000 x 3.3121 = $66,242
annual payment = $66,242 / 10.637 = $6,227.51
International franchising is
International franchising is a business model that expands the franchising concept into the international marketplace. For example, you can use the rental car concept as a prime example. You can expand the concept of renting a car from a domestic market to an international market.
One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $500 per month. You will charge 1.2 percent per month interest on the overdue balance.
If the current balance is $11,000, how long will it take for the account to be paid off? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
It will take approximately 25.70 months for the the account to be paid off.
Explanation:
Assuming the customer pays at the end of every month, the relevant formula to use is therefore the formula for calculating the present value of an ordinary annuity as follows:
PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)
Where;
PV = Present value or current balance = $11,000
P = Monthly repayment = $500
r = interest rate = 1.2%, or 0.012
n = number of months = ?
Substitute the values into equation (1) and solve for n, we have:
11,000 = 500 * [{1 - [1 / (1 + 0.012)]^n} / 0.012]
11,000 / 500 = {1 - [1 / (1 + 0.012)]^n} / 0.012
22 * 0.012 = 1 - 0.988142292490119^n
0.264 = 1 - 0.988142292490119^n
0.988142292490119^n = 1 - 0.264
0.988142292490119^n = 0.736
Loglinearizing both sides, we have:
n * log (0.988142292490119) = log (0.736)
n = log (0.736) / log (0.988142292490119)
n = -0.133122185662501 / -0.00518051250378013
n = 25.70
Therefore, it will take approximately 25.70 months for the the account to be paid off.
Tobin inherited 100 acres of land on the death of his father in 2019. A Federal estate tax return was filed and the land was valued at $300,000 (its fair market value at the date of the death). The father had originally acquired the land in 1976 for $19,000 and prior to his death had made permanent improvements of $6,000. What is Tobin's basis in the land? a.$300,000 b.$19,000 c.$25,000 d.$325,000
Answer:
$300,000
Explanation:
Based on the information given we were told that the land was valued at the amount of $300,000 which is the fair market value price as at when Tobis father died this means that the amount of $300,000 will be Tobin's basis in the land eventhough his father bought the land at the amount of $19,000 in the year 1970 but since we were told that the Federal estate tax return was been filed and the land was valued at the amount of $300,000 this means that $300,000 will be Tobis basis in the land.
Anthem Inc. issues 200,000 shares of stock with a par value of $0.01 for $150 per share. Three years later, it repurchases these shares for $80 per share. Anthem records the repurchase in which of the following ways?
A. Debit Common Stock for $2.000, debit Additional Paid-in Capital for $29.998,000 and credit Cash for $30 million.
B. Debit Treasury Stock for $16 million and credit Cash for $16 million.
C. Debit Common Stock for $2,000, debit Additional Paid-in Capital for $15.998.000 and credit Cash for $16 million.
D. Debit stockholders' Equity for $30 million, credit Additional Paid-in Capital for $16 million and credit Cash for $16 million.
Answer:
B. Debit treasury stock for $16 million and Credit cash for $16 million
Explanation:
The journal entry below shows how Anthem records the repurchase
Treasury stock account Dr. $16 million
(200,000 shares × $80 per share)
To Cash account Cr. $16 million
Treasury stock is debited so as to decrease total shareholder's equity while cash is credited in order to record the expenditure of the company.
Orion Flour Mills purchased a new machine and made the following expenditures:
Purchase price $ 59,000
Sales tax 5,200
Shipment of machine 840
Insurance on the machine for the first year 540
Installation of machine 1,680
The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash.
Required:
Record the above expenditures for the new machine. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Orion Flour Mills
Debit Milling Machine $64,200
Credit Accounts Payable $64,200
To record the purchase of a new machine on account, terms n/30.
Debit Freight-in $840
Debit Insurance $540
Debit Machine Installation $1,680
Credit Cash Account $3,060
To record additional expenditure on the purchase.
Debit Milling Machine $2,520
Credit Freight-in $840
Credit Machine Installation $1,680
To record the cost of additional expenditure to the Milling Machine.
Explanation:
Using the journal to account for the acquisition of a new machine by Orion Flour Mills initially records the transactions after identifying the accounts involved, and the accounts to be debited and credited respectively.
The cost of the new machine includes the additional expenditure incurred for bringing it into use. The expenditure will include the shipment, sales tax, and installation costs. Insurance will be excluded as it is not incurred in order to bring the machine into use.
Question 2 (1 point)
An effective trade policy is important to Canada because....
O 1) we are close to the largest market in the world, the US.
(2) we have a small population and can't produce everything we need on our
own.
O 3) all of the other answers is correct.
4) we have a well educated population with the skills to compete
internationally.
5) we have a significant capital stock and high end technology to work with.
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ENG
Answer:
sdssds
Explanation:
ssss
Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years or 30,000 hours. Using straight-line depreciation, calculate depreciation expense for the second year.
Answer:
$30,000
Explanation:
The computation of the depreciation expense for the second year using the straight line method is shown below:
As we know that
= (Original cost - residual value) ÷ (useful life)
= ($90,000) ÷ (3 years)
= $30,000
In this method, the depreciation is the same for all the remaining useful life
Hence, the second year depreciation expense is $30,000
1. Job Searching in the Digital Age When preparing for employment, you must know yourself, know the job market, and know the employment process. When identifying your interests, what question should you ask yourself?
Answer:
By asking self reflective questions like–
Would I like to work for someone else, or be my own boss?
Explanation:
By so doing, it allows you to know your strengths and can you make right job choices peculiar to you.
For example, a recent college graduate student John who is very skilled at art may examine himself to know if he prefers to open his own art collection or instead would want to work for an art collection company.
Primus Corp. is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45 percent. The cost of this project will be $7,125,000. It will result in additional cash flows of $1,875,000 for the next eight years. The discount rate is 12 percent.
a) What is the payback period?
b) What is the NPV for this project?
c) What is the IRR?
Answer:
3.8 years
$2,189,324.56
20.33%
Explanation:
Payback period calculates how long it takes to recover the amount invested in a project from its cumulative cash flows.
Payback period = amount invested / cash flows = $7,125,000 / $1,875,000 = 3.8 years
Net present value is the present value of after tax cash flows from an investment less the amount invested.
Net present value can be calculated using a financial calculator
cash flow in year 0 = $-7,125,000.
cash flow each year from year 1 to 8 = $1,875,000
I = 12%
NPV = $2,189,324.56
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated using a financial calculator
cash flow in year 0 = $-7,125,000.
cash flow each year from year 1 to 8 = $1,875,000
I = 12%
IRR = 20.33%
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
In 1200 BCE on this timeline, seashells are used to trade for a yard of linen. In this case, the seashells are used as a _______. Choose one: A. medium of exchange B. unit of account C. store of value D. all of the above
Answer:
D
Explanation:
I took the test
JK Corporation issued a $700,000 of 3%, 10-year bonds on January 1, 20X2. Interest payable simiannually on June 30 and December 31. The bonds were issued for $642,730 to yeild an effective rate of 4%. What is the amount of discount should
Answer:
JK Corporation
Amount of Discount should be:
$57,270
Explanation:
a) Calculation:
Face Value = $700,000
Issue value = $642,730
Discount = $57,270
b) JK Corporation's bond is issued at a discount when the face value of this bond is more than the issue value. JK Corporation's bond can only be issued at a discount if the effective or market interest rate is more than the face or stated interest rate. It is the higher market interest rate of the JK Corporation's bond that attracts investors to neglect the low stated interest rate.
Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of $118,000) is worth $141,600 and Johnathan's land has a fair market value of $112,100, Johnathan also gives Logan cash of $29,500. a. Logan's recognized gain is $ . b. Assume that Johnathan's land is worth $127,440 and he gives Logan $14,160 cash. Logan's recognized gain is $ .
Answer:
A. 23,600
B. 14,160
Explanation:
land adjusted basis = $118,000
land worth = $141,600
fair market value of land = $112,100
Requirement A
Amount realized = Fair value + cash received
Amount realized = 112,100 + 29,500
Amount realized = 141,600
Less: adjusted basis = 118,000
Realized gain = 23,600
Note: Recognized gain is lower of cash received and realized gain
In this case, realized gain is lower so,
Logan's Recognized gain = 23,600
Requirement B
Amount realized = Fair value + cash received
Amount realized = 127,440 + 14,160
Amount realized = 141,600
less adjusted basis = 118,000
Realized gain = 23,600
Note: Recognized gain is lower of cash received and realized gain
In this case, cash received is lower So,
Logan's Recognized gain = 14,160
Your goal as a speaker is to help your audience understand, remember, and act upon your ideas. To improve comprehension and enhance retention, use visual aids.
1.Well-planned visual aids can _________________ and make the presenter appear more professional.
a) increased audience interest
b) decrease interruptions
2.What is an advantage of using multimedia slides?
a) They enhance recall because the audience keeps the reference material.
b) They are always compatible with other equipment and programs.
c) They are inexpensive to update and easy to use and transport.
3.What visual aid conveys a professional appearance by allowing the presenter to choose from many color, art, and font options?
a) Handouts
b) Speaker notes
c) Multimedia slides
Read the scenario, and answer the question.
You are giving a presentation on designing multimedia presentations. You will have access to compatible A/V equipment, and you know that each of your listeners will probably want a copy of the key tips in your presentation.
4.What visual aid option should you choose? Check all that apply.
a) Flip charts
b) Props
c) Transparencies
d) Handouts
e) Multimedia slides
Answer:
1. A
2. A
3. C
4. D and E.
Explanation:
1. Well-planned visual aids can increased audience interest and make the presenter appear more professional.
2. An advantage of using multimedia slides is that they enhance recall because the audience keeps the reference material.
3. Multimedia slides is a visual aid conveys a professional appearance by allowing the presenter to choose from many color, art, and font options.
4. Multimedia slides and handouts is a visual aid option that allows access to compatible A/V equipment, and each of the listeners can have a copy of the key tips in the presentation.
Generally, in order to have good communication and for the sake of impacting knowledge, speakers should help their audience understand, remember, and act upon ideas. Also, to improve comprehension and enhance retention, speakers are advised to use visual aids such as a multimedia slide, handouts etc. A multimedia slide can be designed or created through the use of a computer software such as Microsoft PowerPoint.
Additionally, the handouts should be shared to the audience at the end of the presentation.
Answer:
everything besides B
Explanation:
When a company constructs a building, the cost of the building includes materials and labor but not design fees, building permits, or insurance during construction.
a. True
b. False
Answer:
False.
Explanation:
Construction costs can be defined as the overall costs associated with the development of a built asset, project or property. The construction costs is classified into two (2) main categories and these are;
1. Operational costs: these include the costs on daily basis during the construction process such as rent, wages, sales, utility bills, maintenance and repair fees etc.
2. Capital costs: these include the costs incurred in the acquisition of the property such as commissions, insurance, property acquisition, materials, inflation, fittings, equipment, labor etc.
Hence, when a company constructs a building, the cost of the building includes materials and labor as well as the design fees, building permits, or insurance during construction.
Accounts payable are: Multiple Choice Amounts received in advance from customers for future services. Always payable within 30 days. Estimated liabilities. Amounts owed to suppliers for products and/or services purchased on credit. Not usually due on specific dates.
Answer:
Amounts owed to suppliers for products and/or services purchased on credit
Explanation:
Amounts owed to suppliers for products and/or services purchased on credit
Accounts Payable are due to a particular creditor when it order goods or services without paying immediately which means that you bought goods on credit.
On January 1, 2017, Eagle borrows $16,000 cash by signing a four-year, 5% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year from 2017 through 2020.
Prepare the journal entries for Eagle to record the loan on January 1, 2017, and the four payments from December 31, 2017, through December 31, 2020.
1. Eagle borrows $16,000 cash by signing a four-year, 5% installment note. Record the issuance of the note on January 1, 2017.
2. Record the payment of the first installment payment of interest and principal on December 31, 2017.
3. Record the payment of the second installment payment of interest and principal on December 31, 2018.
4. Record the payment of the third installment payment of interest and principal on December 31, 2019.
5. Record the payment of the fourth installment payment of interest and principal on December 31, 2020
Answer:
Issuance - January 1, 2017
Cash $16,000 (debit)
Note Payable $16,000 (credit)
December 31, 2017
Interest Expense $800 (debit)
Note Payable $3,712.19 (debit)
Cash $4,512.19 (credit)
December 31, 2018
Interest Expense $614.39 (debit)
Note Payable $3,897.80 (debit)
Cash $4,512.19 (credit)
December 31, 2019
Interest Expense $419.50 (debit)
Note Payable $4,092.69 (debit)
Cash $4,512.19 (credit)
December 31, 2020
Interest Expense $214.87 (debit)
Note Payable $4,297.32 (debit)
Cash $4,512.19 (credit)
Explanation:
The Loan Amortization Schedule is most appropriate way to solve all parts of this problem.
The first step to construction of the Amortization Schedule is to determine the payments made annually, PMT (interest and principal).
Using a Financial calculator, this can be determined as ;
Pv = $16,000
r = 5%
n = 4
Fv = $0
p/yr = 1
Pmt = ?
Thus PMT is $4,512.19.
Amortisation Schedule (Extracted from Financial Calculator)
2017
Principle Payment = $3,712.19
Interest Payment = $800
Balance = $12,287.81
Accounting Entries :
Interest Expense $800 (debit)
Note Payable $3,712.19 (debit)
Cash $4,512.19 (credit)
2018
Principle Payment = $3,897.80
Interest Payment = $614.39
Balance = $8,390
Accounting Entries :
Interest Expense $614.39 (debit)
Note Payable $3,897.80 (debit)
Cash $4,512.19 (credit)
2019
Principle Payment = $4,092.69
Interest Payment = $419.50
Balance = $4,297.32
Accounting Entries :
Interest Expense $419.50 (debit)
Note Payable $4,092.69 (debit)
Cash $4,512.19 (credit)
2020
Principle Payment = $4,297.32
Interest Payment = $214.87
Balance = $0
Accounting Entries :
Interest Expense $214.87 (debit)
Note Payable $4,297.32 (debit)
Cash $4,512.19 (credit)
3. As the crisis in Venezuela deepened in late 2002 and early 2003, on January of 2003 the VEF was trading VEF1400/$. By February 1, it was trading at VEF1950/$ and was projected to be trade at 40% lower to the dollar by June 2003. a) What was the percentage change in January
Answer: 39.29%
Explanation:
For us to calculate the percentage change, we have to deduct the trading for VEF in January from the trading for VEF in February and then divide by VEF trading in January. This will be:
= (1950 - 1400)/1950
= 550/1400
= 0.3929
= 39.29%
The percentage change in January is 39.29%.