Answer:
A. Date Account Title Debit Credit
Insurance expense $30,700
($3000+$32500-$4800)
Prepaid insurance $30,700
B. Date Account Title Debit Credit
Insurance expense $30,700
Prepaid insurance $30,700
The U.S. Department of Transportation provides estimated number of miles that residents of large metropolitan areas travel per day in a car. In a random sample of 50 City A residents the mean was 22 miles with a standard deviation of 4 miles, and in a random sample of 50 City B residents the mean was 28 miles with a standard deviation of 8 miles. You want to know if the mean difference in number of miles travelled per day between City A and City B is different from zero in the population.
a. One sample t test
b. Paired samples t test
c. Independent samples t test
d. One-way analysis of variance (ANOVA)
Answer:
c. Independent samples t test
Explanation:
An independent samples t test is used in the above case. Independent samples t test are employed when comparison is between two independently groups. Independent samples t test compares the mean of two independent groups as in above to determine if there is a statistically significant difference between them for the purpose of making a decision. For example in the above scenario if there is a difference in the means, we can conclude that City A and city B residents do not travel same distance in miles
Marc and Michelle are married and earned salaries this year of $71,600 and $14,850, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,450 from corporate bonds. Marc contributed $3,450 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,450. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $7,900 of expenditures that qualify as itemized deductions and they had a total of $6,710 in federal income taxes withheld from their paychecks during the course of the year. (Use the tax rate schedules.)a. What is Marc and Michelle's gross income?Description AmountCorporate bond interest Marc's salary Michelle's salary Gross income b. What is Marc and Michele's adjusted gross income?
Answer and Explanation:
Adjusted gross income abbreviated AGI is the tax payers gross income minus deductions used in arriving at taxable income(AGI less allowable deductions)
Please find attached calculations for gross income and AGI for the couple
The accounts in the ledger of Hickory Furniture Company as of December 31, 2019, are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted. Accounts Payable $34,000 Accounts Receivable 68,000 Cash ? Elaine Wells, Capital 158,650 Elaine Wells, Drawing 37,000 Fees Earned 566,600 Insurance Expense 10,750 Land 155,250 Miscellaneous Expense 15,850 Notes Payable 74,000 Prepaid Insurance 5,100 Rent Expense 107,700 Supplies 3,400 Supplies Expense 14,150 Unearned Rent 16,400 Utilities Expense 75,900 Wages Expense 317,300 Miscellaneous Expense 9,500
The accounts in the ledger of Hickory Furniture Company as of December 31, 2016, are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted.
Accounts Payable $ 42,770 Notes Payable $ 50,000
Accounts Receivable 116,900 Prepaid Insurance 21,600
Cash ? Rent Expense 48,000
Elaine Wells, Capital 75,000 Supplies 4,275
Elaine Wells, Drawing 24,000 Supplies Expense 6,255
Fees Earned 745,230 Unearned Rent 12,000
Insurance Expense 3,600 Utilities Expense 26,850
Land 50,000 Wages Expense 580,700
Miscellaneous Expense 9,500
Prepare an unadjusted trial balance, listing the accounts in their normal order and inserting the missing figure for cash.
X
Unadjusted Trial Balance
Prepare an unadjusted trial balance, listing the accounts in their normal order and inserting the missing figure for cash.
Hickory Furniture Company
UNADJUSTED TRIAL BALANCE
December 31, 2016
ACCOUNT TITLE DEBIT CREDIT
1 Cash
2 Accounts Receivable
3 Supplies
4 Prepaid insurance
5 Land
6 Accounts Payable
7 Unearned Rent
8 Notes Payable
9 Elaine Wells, Capital
10 Elaine Wells, Drawing
11 Fees Earned
12 Wages Expense
13 Rent Expense
14 Utilities Expense
15 Supplies Expense
16 Insurance Expense
17 Miscellaneous Expense
18 Totals
Answer:
fr3
Explanation:
654
This is the trial balance of Blossom Company on September 30.
BLOSSOM COMPANY
Trial Balance
September 30, 2022
Debit Credit
Cash $ 23,240
Accounts Receivable 6,640
Supplies 5,020
Equipment 10,920
Accounts Payable $ 8,840
Unearned Service Revenue 4,020
Common Stock 19,040
Retained Earnings 13,920 $45,820 $45,820
The October transactions were as follows.
Oct.
5 Received $1,470 in cash from customers for accounts receivable due.
10 Billed customers for services performed $5,020.
15 Paid employee salaries $1,380.
17 Performed $560 of services in exchange for cash.
20 Paid $1,800 to creditors for accounts payable due.
29 Paid a $340 cash dividend.
31 Paid utilities $440.
Answer:
1. Cash (Dr.) $1,470
Accounts receivable (Cr.) $1,470
2. Account Receivable (Dr.) $5,020
Revenue (Cr.) $5,020
3. Salaries Expense (Dr.) $1,380
Cash (Cr.) $1,380
4. Cash (Dr.) $560
Revenue (Cr.) $560
5. Accounts Payable (Dr.) $1,800
Cash (Cr.) $1,800
6. Dividend Paid (Dr.) $340
Cash (Cr.) $340
7. Utilities Expense (Dr.) $440
Cash (Cr.) $440
Explanation:
The Blossom company has incurred expenses and various transactions which are recorded in the journal ledger to form the trial balance of the company. These transaction are recorded according to the company's expense and then these expense are charged to their respective accounts.
Suppose that Portugal and Austria both produce oil and shoes. Portugal's opportunity cost of producing a pair of shoes is 4 barrels of oil while Austria's opportunity cost of producing a pair of shoes is 10 barrels of oil. By comparing the opportunity cost of producing shoes in the two countries, you can tell that has a comparative advantage in the production of shoes and has a comparative advantage in the production of oil. Suppose that Portugal and Austria consider trading shoes and oil with each other. Portugal can gain from specialization and trade as long as it receives more than of oil for each pair of shoes it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than of shoes for each barrel of oil it exports to Portugal.
Based on your answer to the last question, which of the following prices of trade (that is, price of shoes in terms of oil) would allow both Sweden and Portugal to gain from trade?
a. 1 barrel of oil per pair of shoes
b. 9 barrels of oil per pair of shoes
c. 3 barrels of oil per pair of shoes
d. 8 barrels of oil per pair of shoes
Answer:
1. By comparing the opportunity cost of producing shoes in the two countries, you can tell that Portugal has a comparative advantage in the production of shoes and Austria has a comparative advantage in the production of oil.
Portugal has a lower opportunity cost of 4 barrels of oil when producing a pair of shoes so it has a Comparative Advantage there.
Austria on the other hand produces more oil per shoe than Portugal so it has comparative advantage in Oil production.
2. Portugal can gain from specialization and trade as long as it receives more than 4 barrels of oil for each pair of shoes it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than 0.1 pairs of shoes for each barrel of oil it exports to Portugal.
If Portugal was not engaging in trade, it would be able to make 4 barrels of oil if it was not making a shoe. A gain for them therefore would be more than 4 barrels of oil for one shoe because it would be higher than the opportunity cost of 4 barrels per shoe.
The same logic applies to Austria, they need to get more shoes than they would have made if they gave up oil. They would have made 1/10 = 0.1 pairs of shoes if they gave up 1 barrel of oil so if they receive more than 0.1 pairs of shoes for the same 1 barrels then they would have made a gain.
3. b. 9 barrels of oil per pair of shoes
d. 8 barrels of oil per pair of shoes
Both of these would be favorable as they would benefit both parties.
Portugal would get more barrels than they can produce per shoe and Austria would get more shoes than they can produce per barrel of oil.
Part A Smith Company experienced the following accounting events during 2018:
1. Smith Company was started on January 1 when it issued common stock for $2,000 cash.
2. During the year, the company recognized $1,500 of consulting revenue on account.
3. The company collected $1,200 cash from accounts receivable.
4. Smith accrued salary expense during the year of $900.
5. Paid $700 of the salaries payable liability
6. Paid dividends of $100 to the stockholders.
7. Paid $360 cash for an insurance policy that covered the company for one year beginning March 1, 2018.
8. On November 1, 2018, Smith collected $2,880 cash in advance for consulting services to be provided under a one-year contract.
9. Recognized insurance expense (Policy in event 7) for ten months.
10. Recognized income earned under the one-year contract at December 31, 2018.
Part B Smith Company experienced the following accounting events during 2019
1. Smith Company issued additional common stock for $3,000 cash.
2. During the period, Smith recognized $2,700 of consulting revenue eamed on account.
3. Smith collected $2,800 cash from accounts receivable.
4. Smith accrued salary expense of $1,500.
5. The company paid $1,350 of the salaries payable liability.
6. Smith paid dividends of $300 to the stockholders.
7. Paid $420 cash to renew the insurance policy for another one-year term.
8. Smith adjusted the books to reflect the insurance expense that had been incurred in 2019 (described in event 7 of 2018).
9. Smith adjusted the books to reflect the revenue earned in 2019 under the one-year consulting contract that began in 2018 (event 8 in 2018).
Required I. 2. Record the events using the horizontal financial statements model. For 2018 and 2019, prepare an income statement, a statement of retained earnings, a balance sheet, and a statement of cash flows. Assets Liabilities Equity Event Cash Accts PrepaidSalaries UnearnedCom Retained Revenue Expese Cash Flow Activity Type Recciv Insurance Stock Earnings 2014
Beg. Bal S- 0 S- S- 0 S- S- 0 S- 0 S- 0 10 End. Bal. 2015 Beg. Bal 5 S- 0 S- 0 S. S- 0 s- 0 S- 0 End. Bal.
Answer:
1. Cash (Dr.) $2,000
Common Stock (Cr.) $2,000
2. Accounts Receivable (Dr.) $1,500
Revenue (Cr.) $1,500
3. Cash (Dr.) $1,200
Accounts Receivable (Cr.) $1,200
4. Salaries expense accrued (Dr.) $900
Salaries payable (Cr.) $900
5. Salary Payable (Dr.) $700
Cash (Cr.) $700
6. Dividends paid (Dr.) $100
Cash (Cr.) $100
7.Prepaid Insurance (Dr.) $360
Cash (Cr.) $360
8. Cash (Dr.) $2,880
Unearned revenue (Cr.) $2,880
9. Insurance Expense (Dr.) $290
Prepaid Insurance (Cr.) $290
10. Unearned revenue (Dr.) $2,880
Revenue (Cr.) $2,880.
Explanation:
Smith company has started its business and incurred the transactions. These transactions need to be recorded to charge each and every expense in their respective accounts. The expenses are recorded in the journal entries and then ledger accounts will be formed to summaries all the expenses in their respective account heads.
In a certain economy, when income is $500, consumer spending is $350. The value of the multiplier for this economy is 3.33. It follows that, when income is $1000, consumer spending is
Answer: $700
Explanation:
The multiplier can used to calculate the Marginal propensity to consume.
Multiplier = 1 / Marginal propensity to save
3.33 = 1 / MPS
MPS = 1/3.33
= 30%
Marginal propensity to save + Marginal propensity to consume = 1
30% + MPC = 1
MPC = 70%
This means that for every $1 increase in income, 70% is spent on consumption.
If income is $1,000, consumption is;
= 70% * 1,000
= $700
The income statement of Cullumber Company for the month of July shows net income of $2,490 based on Service Revenue $7,100, Salaries and Wages Expense $2,930, Supplies Expense $920, and Utilities Expense $760. In reviewing the statement, you discover the following:
1. Insurance expired during July of $490 was omitted.
2. Supplies expense includes $340 of supplies that are still on hand at July 31.
3. Depreciation on equipment of $240 was omitted.
4. Accrued but unpaid wages at July 31 of $400 were not included.
5. Service performed but unrecorded totaled $730.
Prepare a correct income statement for July 2017.
Answer and Explanation:
The correct income statement for July 2017 is shown below:-
Cullumber Company
Income Statement
For the month of July
Particulars Amount
Service Revenue $7,830
($7,100 + $730)
Expenses
Salaries and Wages Expense $6,930
($2,930 + $400)
Supplies Expense $580
($920 - $340)
Utilities Expense $760
Insurance Expense $490
Depreciation Expense $240
Total expense $9,000
Net loss $1,170
The Morgan Corporation has two different bonds currently outstanding. Bond M has a face value of $20,000 and matures in exactly 20 years. Looking forward, this bond makes no interest payments for the next six years. Beginning in the middle of year seven, the bond makes payments of $800 every six months through the end of year 14. Finally, beginning in the middle of year 15, the bond makes semiannual payments of $1000 up to and including its maturity date.
Required:
What are the current prices of bond M and bond N?
Answer:
Market price of bond M = $16,527.07
Market price of bond N = $5,673.38
Explanation:
Some information was missing, so I looked it up:
Bond N also has a face value of $20,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 6.5 percent compounded semiannually,
we must first calculate the effective interest rate:
the effective interest rate = 1.065 = (1 + r)²
√1.065 = √(1 + r)²
1.03199 = 1 + r
r = 3.2%
I used an excel spreadsheet to calculate the present value of bond M's coupon payments.
Bond M's price:
PV of face value = $20,000 / (1.032)⁴⁰ = $5,673.38
PV of coupon payments = $10,853.69
market price = $16,527.07
to determine the market value of bond N (zero coupon bond) we can use the following formula:
market value = future value / (1 + r)ⁿ
market value = $20,000 / (1.032)⁴⁰ = $5,673.38
List four job advertisements can be found
Answer:
tropical smoothie cafe
mcdonalds
dunkin doughnuts
starbucks
Explanation:
theres a whole lot more!!!!
Life, Inc. experienced the following events in Year 1, its first year of operation:
1. Performed counseling services for $21,200 cash.
2. On February 1, Year 1, paid $14,400 cash to rent office space for the coming year.
3. Adjusted the accounts to reflect the amount of rent used during the year.
Required:
Based on this information alone:
A. Record the events in accounts under an accounting equation.
LIFE, INC.
Effect of Events on the Accounting Equation
Assets = Stockholders Equity
Event Cash Prepaid Rent = Retained Earnings
1 Performed services 28,400 28.400
2 Prepaid rent (19,800) 19.800
3 Used rent
Totals 8,600 19.800 = 28.400
B. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period.
C. Ignoring all other future events, what is the amount of rent expense that would be recognized in Year 2?
Answer and Explanation:
Life Inc.
Statement of Cash Flows
For Year Ended December 31, 2018
A. Effect of events on Accounting Equation
S. no. Event Assets = Liabilities +
Stockholders' Equity
Cash Prepaid Rent = Retained Earnings
1. Performed
Counseling
services $21,200 $21,200
2. Prepaid Rent -$14,400 $14,400
3. Used Rent -$13,200 -$13,200
($14,400 × 11 ÷ 12)
Total $6,800 $1,200 $8,000
B. The preparation of Income statement is prepared below:-
Life Inc.
Income statement
For the year 1
Particulars Amount
Service Revenue $21,200
Rent Expense -$13,200
Net Income $8,000
Life Inc.
Balance Sheet
For the year 1
Particulars Amount
Assets:
Cash $6,800
Prepaid Rent $1,200
Total Assets $8,000
Liabilities & Stockholder's Equity:
Retained Earnings $8,000
Total liabilities and
Stockholder's Equity $8,000
Life Inc.
Statement of Cash Flows
For Year 1
Particulars Amount
Cash Flows from operating activities:
Cash received from
customers $21,200
Cash paid for rent -$14,400
Net Cash provided by operating
activities $ 6,800
Cash flow from investing
activities $0.00
Cash flow from financing
activities $0.00
Net Increase (Decrease) in
Cash $6,800
Cash balance at the beginning
of year $0.00
Cash balance at end of year $6,800
c. The computation of the amount of rent expense that would be recognized in Year 2 is shown below:-
Amount of rent expense that will be recognized in Year 2 = Ending balance in prepaid rent = $1,200
Concord Windows manufactures and sells custom storm windows for three-season porches. Concord also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Concord enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,360 and chooses Concord to do the installation. Concord charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $620. The customer pays Concord $1,920 (which equals the standalone selling price of the windows, which have a cost of $1,100) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Concord completes installation on October 15, 2020, and the customer pays the balance due.
Prepare the journal entries for Geraths in 2020. (Round amounts to nearest dollar.)
Answer:
Concord enters into the following contract on July 1, 2020, with a local homeowner for a price of $2,360.
There will be no Journal entry
On September 1, 2020
Windows = $1,920
Installation = $620
Total = $2,540
Particulars Amount
Installation $576
($620/ $2,540) * $2,360
Windows $1,784
($1,920 / $2,540) * $2,360
Revenue recognized $2,360
Date Account details Debit$ Credit$
Sep 1,2020 Cash 1,920
Account receivable 440
Unearned service revenue 576
Sales revenue 1,784
Cost of goods sold 1100
Inventory 1100
15 Oct,2020 Cash 440
Unearned service revenue 576
Service revenue (installation) 576
Account receivable 440
(Revenue recognized after service provided)
Which qualities would be best for someone working in Support Services?
patience for performing repetitive tasks, accuracy in performing lab work, and critical-thinking skills
social awareness, integrity for knowledge of patient confidentiality, and hand steadiness
knowledge of nutrition, social awareness, and patience for performing repetitive tasks
integrity, stress-management skills, and specialized knowledge of medical care
Answer:
patience for performing repetitive tasks, accuracy in performing lab work, and critical-thinking skills
Explanation:
Support Services are those service providers that exist within a corporation that render services to the other businesses.
Examples of support services include:
Maintenance, Repair, etc.
Therefore, the qualities that would be best for someone working in Support Services would be option A.
Answer:
A, the correct answer is A
Explanation:
Owners of a local restaurant are concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest times of the week. During these time periods about 126 customers arrive per hour for service. Given number of tables and chairs, and the typical time it takes to serve a customer, the owners estimate they can serve on average about 121 customers per hour.
During these nights, are they in the zone of service, the critical zone , or the zone of non service?
A. zone of service
B. zone of non service
C. critical zone
Answer:
Option B Zone of non service
Explanation:
We can decide whether it will be one of each zone mentioned above by identifying whether the service rate is greater than the arrival rate or vice versa.
Zone of service = Service rate is greater than the mean arrival rate
Critical zone = Service rate equals to mean arrival rate
Zone of non service = Mean arrival rate is greater than the service rate
Calculation
Capacity utilization rate = Arrival rate / Number of customers they can serve
Capacity utilization rate = 126 / 121
Capacity utilization rate = 104%
Since the mean arrival rate is greater than the service rate Its would be a Zone of non service
Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the process. During November, the company transferred 700,000 units of product to finished goods. At the end of November, the work in process inventory consists of 180,000 units that are 30% complete with respect to conversion. Beginning inventory had $420,000 of direct materials and $139,000 of conversion cost. The direct material cost added in November is $2,220,000, and the conversion cost added is $3,254,000. Beginning work in process consisted of 60,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 60,000 were from beginning work in process and 640,000 units were started and completed during the period.
Required:
a. Determine the equivalent units of production with respect to (a) direct labor and (b) direct materials.
b. Compute both the direct labor cost and the direct materials cost per equivalent unit.
c. Compute both direct labor cost and direct materials cost assigned to (a) units completed and transferred out and (b) ending goods in process inventory.
Answer:
a) equivalent units:
EUP for materials = 880,000 units
EUP for conversion costs = 754,000 units
b) cost per equivalent unit:
materials cost per EUP = $3 per EUP
conversion costs per EUP = $4.50 per EUP
c) costs assigned to units transferred out and ending WIP:
units transferred out = $5,250,000
ending WIP = $783,000
Explanation:
units transferred out 700,000
ending WIP 180,000
100% completed for materials
30% completed for conversion costs
beginning WIP:
materials $420,000
conversion costs $139,000
materials added during September $2,220,000
conversion costs added during September $3,254,000
total materials costs = beginning WIP + added costs = $420,000 + $2,220,000 = $2,640,000
total conversion costs = beginning WIP + added costs = $139,000 + $3,254,000 = $3,393,000
a) equivalent units:
EUP for materials = 700,000 + 180,000 = 880,000
EUP for conversion costs = 700,000 + (180,000 x 30%) = 754,000
b) cost per equivalent unit:
materials cost per EUP = $2,640,000 / 880,000 = $3
conversion costs per EUP = $3,393,000 / 754,000 = $4.50
c) costs assigned to units transferred out and ending WIP:
units transferred out = 700,000 x $7.50 = $5,250,000
ending WIP = (180,000 x $3) + (54,000 x $4.50) = $783,000
On the last day of December 2021, Coaster Trucks entered into a transaction that resulted in a receipt of $300,000 cash in advance related to services that will be provided during January 2022. During December of 2021, the company also performed $165,000 of services which were neither billed nor paid. Prior to December adjustments and before these two transactions were recorded, the company’s trial balance showed service revenue of $1,425,790 at December 31, 2021. There are no other prepaid services yet to be delivered, and during the month all outstanding accounts receivable from prior months were collected.1. If Camrey's trucks makes the appropirate adjusting entry, how much will service revenue will be reflected on the december 31, 2021 income statement?
2. If Camrey's Trucks makes the appropriate adjusting entry, how much will be reported on the December 31, 2021 Balance sheet as unearned revenue?
3. If Camrey's turcks make the appropriate adjusting entry, how much will be reported on the December 31, 2022 Balance sheet as accounts receivable?
Answer:
$1,590,790 $300,000 $165,000Explanation:
1. The company performed services but did not record them. Those services were for 2021 and so should be counted in 2021's income statement.
= 1,425,790 + 165,000
= $1,590,790
2. Coaster Trucks received $300,000 even though they have not yet provided the services for it.
The Unearned revenue = $300,000
3. Coaster Company had performed services worth $165,000 that were neither billed nor paid for. When they record t, it will be owed to them so it will be an Account Receivable.
Accounts Receivable = $165,000
Harry loves both hot dogs and hamburgers. He receives about the same satisfaction from eating one hamburger as he does from eating one hot dog, and the two goods fill the same need in Harry's life. The price of hot dogs has been extremely volatile for the past several years, and this year is no exception. Hot dog prices tremendously this month. Assuming hot dogs and hamburgers are substitutes for Harry, what will happen to Harry's demand for hamburgers?
Required:
Using the line drawing tool, depict the effect on Harry's demand for hamburgers due to the in the price of hot dogs. Properly label this line. Carefully follow the instructions above and only draw the required object.
Answer: Harry's demand for hamburgers will increase.
Explanation:
Substitutes are goods that can be used to replace one another because they both serve thesame purpose. In this case, hot dogs and hamburgers are substitutes.
Since the price of hotdogs has risen, Harry will reduce its demand for hotdogs and shift its demand to buying more hamburger. This means Harry's demand for hamburgers will increase.
Which statement best describes a business creating an incentive?
Answer:
C
Explanation:
what are the objectives of business
Answer:
Defination-
A business objective is a result that a company aims to achieve.
10 Most Important Business Objectives
1. Getting and Staying Profitable
2. Productivity of People and Resources
3. Excellent Customer Service
4. Employee Attraction and Retention
5. Mission-driven Core Values
6. Sustainable Growth
7. Maintaining a Healthy Cash Flow
8. Dealing with Change
9. Reaching the Right Customers
10. Staying Ahead of the Competition
The following book and fair values were available for Westmont Company as of March 1.
Book Value Fair Value
Inventory $ 231,000 $ 191,750
Land 822,000 1,119,750
Buildings 2,130,000 2,447,250
Customer relationships 0 867,750
Accounts payable (104,000) (104,000)
Common stock (2,000,000)
Additional paid-in capital (500,000)
Retained earnings, 1/1 (417,500)
Revenues (464,500)
Expenses 303,000
Arturo pays cash of $4,365,500 to acquire Westmont. No stock is issued and Arturo pays $47,500 for legal fees to complete the transaction.
Prepare Arturo % u 2019s journal entry to record its acquisition of Westmont.
Answer And Explanation:
Please see answer and explanation attached
Mike, Matt, Brooke, and Kellie decide to go into business together. The form a limited partnership where Mike, Matt, and Brooke are the limited partners. They contribute the following amounts: Mike - 25,000 Matt - 10,000 Brooke - 10,000 Kellie - 5,000
Additionally, the partnership agreement states that all profits are to be distributed equally. Mike will perform services for the company and will be paid $100,000 a year for those services. The company will be able to deduct this amount from net income. In the first year of operations, the company had the following items of income:
Services - 160,000
Expenses - 24,000
Depreciation - 28,000
Finally, no one withdraw any money from the partnership, save Matt who withdraws $15,000.
What is the maximum Kellie can withdraw without having a gain in excess of basis?
Answer:
$7,000
Explanation:
the partnership's net income = $160,000 - $100,000 - $24,000 - $28,000 = $8,000
since net income is divided equally among the 4 partners, then each partner is allocated $2,000
Kellie's capital account = $5,000 + $2,000 (her share of profits) = $7,000
if she withdraws more than $7,000, then she should report a gain in excess of basis
At the end of the fiscal year, the following adjusting entries were omitted:
a. No adjusting entry was made to transfer the $3,000 of prepaid insurance from the asset account to the expense account.
b. No adjusting entry was made to record accrued fees of $500 for services provided to customers.
Assuming that financial statements are prepared before the errors are discovered, indicate the effect of each error, considered individually, by inserting the dollar amount in the appropriate spaces.
Answer:
Error AAssets will be Overstated by $3,000
Asset was never subtracted from assets so assets are overstated
Liabilities - No effect
Net Income - Overstated by $3,000
As insurance expense was not deducted from Net Income
Retained Earnings - Overstated by $3,000
As insurance expense was not deducted from Net Income
Error BAssets - Understated by $500
Accrued revenue is an asset and so not recording it understates assets
Liabilities - No effect
Net Income - Understated by $500
This is revenue so not recording it would reduce net income.
Retained Earnings - Understated by $500
Firms require capital to invest in productive opportunities. The best firms with the most profitable opportunities can attract capital away from inefficient firms with less profitable opportunities. Investors supply firms with capital at a cost called the __________. The interest rate that investors require is determined by several factors, including the availability of production opportunities, the time preference for current consumption, risk, and inflation.
Answer:
Interest rate
Explanation:
Firms require capital to invest in productive opportunities. The best firms with the most profitable opportunities can attract capital away from inefficient firms with less profitable opportunities. Investors supply firms with capital at a cost called the Interest rate. The interest rate that investors require is determined by several factors, including the availability of production opportunities, the time preference for current consumption, risk, and inflation.
Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company’s five activity cost pools:
Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity
Labor-related Direct labor-hours $16,380 1,260 DLHs
Purchase orders Number of orders $1,920 640 orders
Product testing Number of tests $4,275 285 tests
Template etching Number of templates $805 35 templates
General factory Machine-hours $42,600 7,100 MHs
Required:
Compute the activity rate for each of the activity cost pools.
Answer:
a. Labor Cost Rate= 13 $ per DLH
b. Purchase orders Rate= $ 3 per order
c. Product testing Rate = $ 15 per test
d. Template etching Rate = $ 23 per template
e. General factory Rate= $ 6 per MHs
Explanation:
Data
Activity Activity Expected Overhead Expected
Cost Pool Measure Cost Activity
Labor-related Direct labor-hours $16,380 1,260 DLHs
Purchase orders Number of orders $1,920 640 orders
Product testing Number of tests $4,275 285 tests
Template etching Number of templates $805 35 templates
General factory Machine-hours $42,600 7,100 MHs
The activity rate can be obtained by dividing the total cost of each activity with the total cost of the driver allocated to it.
Calculations
Activity Rate = Expected Overhead Cost/ Expected Activity
a. Labor Cost Rate= $16,380 / 1,260 DLHs= 13 $ per DLH
b. Purchase orders Rate= $1,920/ 640 orders= $ 3 per order
c. Product testing Rate = $4,275 /285 tests= $ 15 per test
d. Template etching Rate = $805 /35 templates= $ 23 per template
e. General factory Rate= $42,600/ 7,100 MHs= $ 6 per MHs
Consider the following scenario:
Cold Goose Metal Works Inc.’s income statement reports data for its first year of operation. The firm’s CEO would like sales to increase by 25% next year.
1. Cold Goose is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT).
2. The company’s operating costs (excluding depreciation and amortization) remain at 70.00% of net sales, and its depreciation and amortization expenses remain constant from year to year.
3. The company’s tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT).
4. In Year 2, Cold Goose expects to pay $300,000 and $2,306,475 of preferred and common stock dividends, respectively.
Complete the Year 2 income statement data for Cold Goose, then answer the questions that follow. Round each dollar value to the nearest whole dollar.
Cold Goose Metal Works Inc. Income Statement for Year Ending December 31
Year 1 Year 2 (Forecasted)
Net sales $30,000,000 $
Less: Operating costs, except depreciation and amortization 21,000,000
Less: Depreciation and amortization expenses 1,200,000 1,200,000
Operating income (or EBIT) $7,800,000 $
Less: Interest expense 780,000
Pre-tax income (or EBT) 7,020,000
Less: Taxes (40%) 2,808,000
Earnings after taxes $4,212,000 $
Less: Preferred stock dividends 200,000
Earnings available to common shareholders 4,012,000
Less: Common stock dividends 1,263,600
Contribution to retained earnings $2,748,400 $3,387,850
Answer:
Explanation:
See attached file .
The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine-hours in Department 100 and 8,000 direct manufacturing labor-hours in Department 200. The budgeted manufacturing overheads for the month were $57,500 and $62,500, respectively. For Job A, the actual costs incurred in the two departments were as follows:
Department 100 Department 200
Direct materials purchased on account $110,000 $177,500
Direct materials used 32,500 13,500
Direct manufacturing labor 52,500 53,500
Indirect manufacturing labor 11,000 9,000
Indirect materials used 7,500 4,750
Lease on equipment 16,250 3,750
Utilities 1,000 1,250
Job A incurred 800 machine-hours in Department 100 and 300 manufacturing labor-hours in Department 200. The company uses a budgeted overhead rate for applying overhead to production.
Required:
a. Determine the budgeted manufacturing overhead rate for each department.
b. Prepare the necessary journal entries to summarize the March transactions for Department 100.
c. What is the total cost of Job A?
Answer:
a. Manufacturing overhead rate - Department 100 = $57,500 / 4,000 hours = $14.375 per machine hours
Manufacturing overhead rate - Department 200 = $62,500/8,000 hours = $7.8125 per machine hours
b. Journal Entries
S/N Account Titles Debit Credit
1 Inventory - Raw material $110,000
Account Payable $110,000
2 Work in process $32,500
Manufacturing overhead $7,500
Inventory - Raw materials $40,000
3 Work in process $52,500
Manufacturing overhead $11,000
Materials control $63,500
4 Manufacturing overhead $17,250
Leasehold payable $16,250
Utilities payable $1,000
5. WIP Control (14,375*800) $11,500
Manufacturing overhead allocation $11,500
c. Particulars Dep 100 Dep 200 Total
Direct materials $32,500 $13,500 $46,000
Direct labour $52,500 $13,500 $106,000
Manufacturing overhead $35,750 $18,750 $54,500
(11,000+7,500+16,250+1,000
+9,000+4,750+3,750+1,250)
Total Cost of Job A $120,750 $85,750 $206,500
The following errors occurred in posting from a two-column journal:
A credit of $8,770 to Accounts Payable was not posted.
A debit of $1,200 to Cash was posted to Miscellaneous Expense.
A credit of $270 to Cash was posted as $720.
A debit of $8,510 to Wages Expense was posted as $8,150.
An entry debiting Accounts Receivable and crediting Fees Earned for $8,000 was not posted.
A debit of $830 to Accounts Payable was posted as a credit.
A debit of $2,200 to Supplies was posted twice.
Required:
a. Indicate by "yes" or "no" whether the trial balance would be out of balance.
b. If the answer to (a) is "yes", indicate the amount by which the trial balance totals would differ.
Answer:
Please find attached solution to the above question
Explanation:
Please find attached solution to the above - a and b
Regarding the error 6,
• The $830 gained increased to accounts payable, hence must be deducted from accounts payable.
• Again, debit $830 for recording the payment.
Question 2 Week 8 (7 marks)
The P Ltd acquires all issued capital of the S Ltd for a consideration of $1,000,000 cash and 800,000 shares each
valued at $1.50. The summary statement of the financial position of the subsidiary company immediately
following the acquisition is:
Fair value of assets acquired $2,640,000
Fair value of liabilities acquired $720,000
Total shareholders’ equity of the subsidiary company $800,000
Retained earnings of the subsidiary company $1,120,000
Required:
(a) Pass the necessary journal entry to record the acquisition (2 marks)
(b) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition (2 marks)
(c) Pass the necessary consolidation entry to eliminate the subsidiary by the parent company (2 marks)
(d) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition if the purchase
consideration paid was $1,000,000 cash and 400,000 shares each valued at $1.50 (1 marks)
Answer: See explanation
Explanation:
a. Pass the necessary journal entry to record the acquisition.
Check the attachment. Note that common shares was calculated as:
= $800,000 × 1.5
= $1,200,000
b. Determine the amount of goodwill (or bargain purchase) arising out of the acquisition.
Fair value of assets acquired = $2,640,000
Less: fair value of liabilities = (720,000)
Net asset of S. LTD = 1,920,000
Purchase consideration = 1,000,000 + 1,200,000 = 2,200,000
Goodwill on acquisition will be:
= $2,200,000 - $1,920,000
= $280,000
c. Pass the necessary consolidation entry to eliminate the subsidiary by the parent company
Check the attachment
d. Determine the amount of goodwill (or bargain purchase) arising out of the acquisition if the purchase
consideration paid was $1,000,000 cash and 400,000 shares each valued at $1.50.
Fair value of assets acquired = $2,640,000
Less: fair value of liabilities = (720,000)
Net asset of S. Ltd = 1,920,000
Purchase consideration = (1,000,000 + 400,000) × 1.5 = 1,600,000
Bargain purchase on the acquisition will be:
= 1,920,000 - 1,600,000
= $320,000
Which of the following is NOT an example of a professional degree?
O Master of Science
O Doctor of Medicine
O Master of Divinity
O Juris Doctor
Answer:
Juris Doctor
Explanation:
Please mark as brainlist answers
Juris Doctor is NOT an example of a professional degree. Hence, option D is correct.
What is a professional degree?A professional degree, usually referred to as a first-professional degree, is a degree that helps you get ready for a specific career. Law degrees (J.D.s) and medical degrees are the two most typical instances of professional degrees (M.D.s). There are plenty others, though.
A professional degree is a higher education program created to get you ready to work in a particular industry, like law or medicine. Professional degrees are regarded as terminal degrees, or the greatest degree you may obtain in a field, similar to advanced academic degrees like doctorates and certain master's.
The completion of professional degrees typically requires more time than academic degrees. Additional eligibility requirements for professional degrees may include trainee programs, licensure exams, and bar exams. The two terms "professional bachelor's degree" and "bachelor's degree" are not synonymous.
Thus, option D is correct.
For more information about a professional degree, click here
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With the snow season fast approaching us, Jack Frost, age 15, is considering his income-generating alternatives. Jack runs a snow removal business. He employs his friends at $10.00 per hour to clear sidewalks and driveways for neighbors, family friends, and fellow townsfolk. Last year, he had ten regular customers whose walks were shoveled 14 times each over the course of the winter. All told, Jack paid his friends $2,100 for their work for him this winter. Jack is considering the purchase of a used snowblower, which he believes will reduce the amount of time it takes his crew to complete a job to only 45 minutes. The snowblower will cost $1,176 (and will probably be worthless after one year of use), and will consume about $0.50 worth of gasoline and oil per use (per snow removal job). Given that Jack had no fixed costs, what was Jack's total cost function for last year?a. TC = 15Q b. TC = 100 c. TC = 11760 d. TC=0.5Q
Answer:
a. TC = 15Q
Explanation:
The cost function must include all the costs incurred by a business. Generally it includes a variable part and a fixed part. In this case, since Jack had no fixed costs, his costs are only variable: labor = $10 per hour
in total, Jack's business shoveled 10 x 14 = 140 walks, since he paid his friends $2,100 in total, the variable cost of shoveling one walk = $2,100 / 140 = $15
that means that last years cost function = $15 x number of walks shoveled, or
TC = 15Q (where Q is the number of walks shoveled)