Answer:
1. Pronghorn shipped goods costing $54,380 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
These goods were correctly excluded from the inventory account because the purchase was FOB shipping point, which means that title passes to the buyer once the goods leave the sellers shipyard or warehouse.2. The physical count of the inventory did not include goods costing $96,250 that were shipped to Pronghorn FOB destination on December 27 and were still in transit at year-end.
These goods were correctly excluded from the inventory account because the purchase was FOB destination, which means that title passes to the buyer only after the goods are delivered.3. Pronghorn received goods costing $27,180 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count.
They should have been included in the inventory account because the purchase was FOB shipping point, which means that title passes to the buyer once the goods leave the sellers shipyard or warehouse.4. Pronghorn shipped goods costing $46,830 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Pronghorn physical inventory.
They should have been included in the inventory account because the sale was FOB destination which means that title passes to the buyer only after the goods are delivered.5. Pronghorn received goods costing $45,270 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $277,880.
These goods should have been excluded from the inventory account because the purchase was FOB destination, which means that title passes to the buyer only after the goods are delivered.Which description of the parts of the compound interest expression is correct? P(1 + )nt P = principal; r = number of times interest is compounded per year; n = annual interest rate; t = time in years P = principal; r = annual interest rate; n = number of times interest is compounded per year; t = time in number of compounding periods P = principal; r = monthly interest rate; n = number of times interest is compounded per year; t = time in number of compounding periods P = principal; r = annual interest rate; n = number of times interest is compounded per year; t = time in years
Answer:
P = principal; r = annual interest rate; n = number of times interest is compounded per year; t = time in years
Explanation:
Given the formula P(1 + r)^nt,
P = principal; r = annual interest rate; n = number of times interest is compounded per year; t = time in years
Compound interest is defined as interest on a loan, deposit or investment that is calculated on the basis of the principal invested, deposited or borrowed and the accumulated interest from previous periods.
Answer:
P = principal; r = annual interest rate; n = number of times interest is compounded per year; t = time in years
Explanation:
A list of concepts are provided below. Select the appropriate description for the concept.
1. Cash-basis accounting. select the appropriate description for the concept
2. Fiscal year. select the appropriate description for the concept
3. Revenue recognition principle. select the appropriate description for the concept
4. Expense recognition principle. select the appropriate description for the concept
Answer:
1. Cash-basis accounting - Companies record revenues when they receive cash and record expenses when they pay out cash.
Unlike in Accrual basis accounting, here revenue is recognized when the money is paid regardless of if the payment for services comes after a year. The same goes for expenses. Tax authorities use the Cash basis.
2. Fiscal year - An Accounting time period that is one year in length.
This is the Accounting period for a firm. It runs for 12 months and depends on when they started business or when they want to report financials.
3. Revenue recognition principle - Recognize revenue in the accounting period in which a performance obligation is satisfied
This falls under the Accrual basis of accounting. It is recommended by GAAP. Revenue should be recognized only when the service has been accomplished regardless of when actual payment is made.
4. Expense recognition principle - Efforts (expenses) should be matched with accomplishments (revenues).
Follows the same premise as the Revenue recognition principle. Recognize expenses when incurred and should be matched to revenues.
Steve’s Lumber Company features a large selection of materials for flooring, decks, moldings, windows, siding and roofing. It is a small, but profitable family business that is looking to expand. The prices of lumber and other building materials are constantly changing. When a customer places an order, typically inquiring about the price on pre-finished wood flooring, sales representatives consult the catalogue, and a manual price sheet and then call the supplier for the most recent price. The supplier in turn uses a manual price sheet, which has been updated each day. Often the supplier must call back Steve’s reps because the company does not have the newest pricing information immediately on hand. Of course, the customer’s order is delayed until a firm price is determined. Steve has hired you to assess the business impact of the situation.
1. What can be done for them to make this process more efficient.
2. Identify 3 metrics that could be put in place to measure the impact of the existing process on operational efficiency.
3. Explain how information systems could support those changes. Discuss what data the systems should capture and what decisions the system could improve.
Answer:
1. The major issue in the process is the lack of communication between different parties. The process being manually driven, might affect the customer satisfaction and lead to lost sales. The changes which need to be made is to make available the price information of different items at once, when the customer comes in to place an order. This can be made possible by asking the suppliers to send the updated sheet every morning before the day's business begins. It will be better if the entire uncatalogued as well as the price sheet is in electronic form, which can be updated immediately, as soon as the information is received from supplier in the morning. One better alternative is to connect the suppliers through an ERP so that their price might reflect at the company's end as soon as it is updated, It will reduce much hassle and mistakes that might creep in due to manual process.
2. a. The number of customers leaving per day / week to competitors due to inefficiency.
b. Total average delay in customer's order.
c. Customer satisfaction rating of the process as this will give the overall picture of customer's opinion about the company.
3. The information system might enable the suppliers to update their information each day which can then be used by the company reps to find out the right price of an item and enable him /her to provide the estimate immediately, leading to greater customer satisfaction, reducing the lost sales and eliminating the chances of a wrong quote being given.
Marilyn County operates on a calendar-year basis. It uses a Capital Projects Fund to account for major capital projects and a Debt Service Fund to accumulate resources to pay principal and interest on general obligation debt. It does not use encumbrance accounting in the Capital Projects Fund. The following transactions occur:
1. On January 1, 2019, Marilyn County issues general obligation bonds in the amount of $1,000,000 to build a community center. The debt will be paid off in 20 equal semiannual installments of $50,000 over a 10-year period commencing October 1, 2019, with interest of 4 percent per annum paid on the outstanding debt.
2. The county realizes that the community center will cost more than it originally anticipated. On May 1, the county transfers $20,000 from its General Fund to its Capital Projects Fund to help meet project costs.
3. Construction is completed on July 1, 2019, and the community center is ready for occupancy. The county pays the contractor a total of $1,020,000 on July 1. The county anticipates that the community center will have a useful life of 20 years.
4. On September 30, 2019, the General Fund transfers an amount to the Debt Service Fund that is sufficient to pay the first debt service installment, which is due October 1.
5. The county pays the debt service due on October 1.
Required:
Prepare the journal entries to record these transactions in the Capital Projects Funds, the General Funds and the Debit Service Fund.
Answer:
The Capital Fund Entries include;Jan 1, 2019
DR Cash $1,000,000
CR Other Financing Source - long term debt $1,000,000
May 1
DR Cash $20,000
CR Transfer in from General Fund $20,000
July 1
DR Expenditures - Capital Outlay $1,020,000
CR Construction contracts payable $1,020,000
DR Construction contracts payable $1,020,000
CR Cash $1,020,000
The General Fund Entries are;May 1,
DR Transfer to Capital Projects Fund $20,000
CR Cash $20,000
September 30
DR Transfer to Debt Service Fund $80,000
CR Cash $80,000
Entries to the Debt Service FundSeptember 30
DR Cash $80,000
CR Transfer in from General Fund $80,000
October 1,
DR Expenditure - Bond Principal $50,000
Expenditure - Interest $30,000
CR Matured Bond Principal Payable $50,000
Matured Bond Interest Payable $30,000
October 1
DR Matured Bond Principal Payable $50,000
Matured Bond Interest Payable $30,000
CR Cash $80,000
Interest on debt = 4% * 1,000,000 = $40,000 semi annual
= 40,000 * 2 = $80,000
Principal = $50,000 so Interest = $30,000
Asonia Co. will pay a dividend of $4.50, $8.60, $11.45, and $13.20 per share for each of the next four years, respectively. The company will then close its doors. If investors require a return of 10.5 percent on the company's stock, what is the stock price?
Answer:
$28.50
Explanation:
Stock price = Future dividends*Present value of discounting factor(10.5%,time period)
Stock price = $4.50/1.105 + $8.60/1.105^2 + $11.45/1.105^3 + $13.20/1.105^4
Stock price = $4.50/1.105 + $8.60 / 1.2210 + $11.45/1.3492 + $13.20/1.4909
Stock price = $4.0724 + $7.0434 + $8.4865 + $8.8537
Stock price = $28.456
Stock price = $28.50
Carr Company produces a single product. During the past year, Carr manufactured 29,010 units and sold 23,900 units. Production costs for the year were as follows: Direct materials $214,674 Direct labor $121,842 Variable manufacturing overhead $243,684 Fixed manufacturing overhead $319,110 Sales were $1,159,150 for the year, variable selling and administrative expenses were $126,670, and fixed selling and administrative expenses were $205,971. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be:______.
a. $56,210 lower than under absorption costing.
b. $30,149 lower than under absorption costing.
c. $56,210 higher than under absorption costing.
d. $30,149 higher than under absorption costing.
Answer:
Net income under variable costing is $56,210 lower than absorption costing.
Explanation:
The difference between absorption costing and variable costing methods is that the first one includes fixed manufacturing overhead as a product cost.
When there isn't beginning inventory, and there are units in ending inventory, the net income will be higher in absorption costing.
The difference is fixed manufacturing overhead allocated in ending inventory units.
Fixed overhead in ending inventory= 5,110units*(319,110/29,010)
Fixed overhead in ending inventory=$56,210
Net income under variable costing is $56,210 lower than absorption costing.
Brine, a concentrated aqueous salt solution, is frequently applied to the roads to pre-treat when snow is forecasted. It is known to be more effective when compared with solid ice melting products. Based on your understanding of the concept of freezing point depression, select all the reasons that explain why it is better to use the anti-icing agent brine than using solid ice melting products. It will be helpful to think about storage and dispersion when taking costs into account for the brine and solid ice melting products.
a. Applying brine on roadways accelerates the melting process because salt needs to be moist to be effective.
b. Solids may lead to land pollution while brine does not.
c. Snow storms sometimes start as rain which may wash away the solid ice melting products.
d. The salt in brine sticks to the roadway after the water part evaporates preventing the salt from being blown off by vehicles driving on the road.
e. The cost per ton is higher for solid ice melting products than it is for brine
Answer:
Applying brine on roadways accelerates the melting process because salt needs to be moist to be effective.
The cost per ton is higher for solid ice melting products than it is for brine
The salt in brine sticks to the roadway after the water part evaporates preventing the salt from being blown off by vehicles driving on the road.
Snow storms sometimes start as rain which may wash away the solid ice melting products
Explanation:
Brine is a concentrated salt solution used to remove ice from roads during winter. It functions by lowering the melting point of ice. Since brine is a solution, it works faster and accelerates the melting process because brine needs to be moist to be effective.
Similarly, it does not easily wash off roads as solid melting products does. It tends to stick better on roads even after the water evaporates.
Brine is a concentrated salt solution that is used to melt ice on roads in the winter. It works by reducing the ice's melting point. Because brine must be damp to be effective. it works faster and accelerates the melting process because it is a solution.
So, Option A is correct as it is the correct reason to use brine.
The other options are incorrect as:
Option B is incorrect as solid does not lead to land pollution and brine accelerates the melting process.Option C is incorrect as snowstorms do not wash away the solid ice melting products.Option D is incorrect as salts do not stick to the roadways it just needs to be moist and effective.Option E is incorrect as the cost is not higher.Thus Option A is the correct reason to use brine.
For more information about anti-icing agent brine refer to the link:
https://brainly.com/question/10380197
Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead.
Overhead Total Direct Labor Hours DLH per Product
A B
Painting Dept. $250,000 10,000 16 4
Finishing Dept. 75,000 12,000 4 16
Totals $325,000 22,000 20 20
Required:
Calculate the plantwide factory overhead rate for Adirondack Marketing Inc.
a. $6.25 per dlh
b. $14.77 per dlh
c. $0.07 per dlh
d. $25.00 per dlh
Answer:
Predetermined manufacturing overhead rate= $14.77 per direct labor hour
Explanation:
Giving the following information:
Estimated overhead cost for the period= $325,000
Estimated total direct labor hours for the period= 22,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 325,000 / 22,000
Predetermined manufacturing overhead rate= $14.77 per direct labor hour
Suppose that France and Austria both produce jeans and stained glass. France's opportunity cost of producing a pane of stained glass is 3 pairs of jeans while Austria's opportunity cost of producing a pane of stained glass is 11 pairs of jeans. By comparing the opportunity cost of producing stained glass in the two countries, you can tell that has a comparative advantage in the production of stained glass and has a comparative advantage in the production of jeans. Suppose that France and Austria consider trading stained glass and jeans with each other. France can gain from specialization and trade as long as it receives more than of jeans for each pane of stained glass it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than of stained glass for each pair of jeans it exports to France.Based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of jeans) would allow both Austria and France to gain from trade?
a. 4 pairs of jeans per pane of stained glass
b. 1 pair of jeans per pane of stained glass
c. 11 pairs of jeans per pane of stained glass
d. 7 pairs of jeans per pane of stained glass
Answer:
By comparing the opportunity cost of producing stained glass in the two countries, you can tell that FRANCE has a comparative advantage in the production of stained glass and AUSTRIA has a comparative advantage in the production of jeans.
France can gain from specialization and trade as long as it receives more than 3 of jeans for each pane of stained glass it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than 1/11 of stained glass for each pair of jeans it exports to France.
Based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of jeans) would allow both Austria and France to gain from trade?
a. 4 pairs of jeans per pane of stained glass d. 7 pairs of jeans per pane of stained glassThe price range that allows both countries to gain from trade is more than 3 but less than 11 pairs of jeans per pane of stained glass.
In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 300 towels were in process and were 60 percent complete. The costs incurred were $576.
During the month, costs of $10,800 were incurred, 2,700 towels were started, and 150 towels were still in process at the end of the month. At the end of the month, the towels were 20 percent complete.
Required:
a. Prepare a production cost report; the company uses FIFO process costing.
b. Show the flow of costs through T-accounts.
Answer:
Units to be accounted for:
beginning 300 units
started 2700 units
total 3,000 units
Equivalent units
physical materials conversion
beginning 300 300 (60%) 240
start-comp 2,550 2,550 2,550
ending 150 150 (20%) 30
total 3,000 2,700 2,640
Cost to be accounted for:
materials conversion
beginning 0 576
incurred 0 10,800
Total zero 11,376
Equivalent unis cost
materials zero
conversion: $10,800 / 2,640 = 4.09
Cost assigned for:
beginning inventory
576 + 60 x 4.09 =
576 + 245.40 = 821,4
transferred units
2,550 units x 4.09 = 10,429.5
ending units
30 units x 4.09 = 122,70
total cost assigned for 11.373,6
(the difference between this amount and the total cost to be accounted for is due to rounding)
Explanation:
We count the physical units
then, we solve for the equivalent untis
(started and completed + completed ending + missing beginning
then, we solve for equivalent unit cost:
cost incurred during the period divided among equivalent units
last, we made the cost assignment.
The Cavy Company estimates that the factory overhead for the following year will be $644,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 16,100 hours. The machine hours for the month of April for all of the jobs were 1,620. If the actual factory overhead for April totaled $65,837,
a. determine the over- or underapplied amount for the month.
b. determine the total factory overhead amount applied.
c. prepare the journal entry to close factory overhead into Cost of Goods Sold.
Answer:
A. $1,037 underapplied
B. Total factory overhead 64,800
C.Dr Factory overhead $1,037
Cr Cost of Goods Sold $1,037
Explanation:
a. Calculation to determine the over- or underapplied amount for the month.
First step to find the Predetermined Overhead rate using this formula
Predetermined Overhead rate = Predetermined Overhead / Machine Hours
Predetermined Overhead rate=$644,000/16,100
Predetermined Overhead rate= $ 40 per hour
Second step is to find the Overhead Applied using this formula
Overhead Applied = Predetermined Overhead rate * machine hours for April
Overhead Applied=1,620 hours ×$ 40 per hour
Overhead Applied=64,800
Last step is to calculate for Over- or underapplied amount
Over- or underapplied amount =$65,837-64,800
Over- or underapplied amount=$1,037 underapplied
b. Calculation to determine the total factory overhead amount applied.
First step to find the Predetermined Overhead rate using this formula
Predetermined Overhead rate = Predetermined Overhead / Machine Hours
Predetermined Overhead rate=$644,000/16,100
Predetermined Overhead rate= $ 40 per hour
Now let calculate for the total factory overhead
Total factory overhead=1,620 hours ×$ 40 per hour
Total factory overhead=64,800
c. preparation of the journal entry to close factory overhead into Cost of Goods Sold.
Dr Factory overhead $1,037
Cr Cost of Goods Sold $1,037
Suppose the economy is characterized by the following behavioral equations:
C = c0 + c1YD
YD = Y-T
I = b0 + b1Y
Government spending and taxes are constant. Note that investment increases with output.
c0
is autonomous consumption,
c1 is the propensity to consume, and b0 is business confidence.
Solve for equilibrium output.
a. Y= ________
b. What is the value of the spending multiplier?
Explanation:
we have consumption function as:
c = c₀ +c₁yd
disposable income yd = y - t
consumption = c₀ + c₁(y - t)
investment i = b₀+ b₁Y
we have G as government spending and t as tax
total spending
Y = C + I +G
such that,
Y = c₀ + c₁(y - t) + B₀ + B₁Y + G
we take all values with y to the left hand side of the equation
y(1 - C₁ - B₁) = C₀+B₀+B₁Y+G
We divide through to get y
[tex]Y = \frac{C0 + B0 + B1Y}{1-C1-B1}[/tex]
b.
the spending multiplier would be 1/1−c1−b1
If C₀, b₀ and tax are held constant, and G goes up by 1 unit then we will have equilibrium output increase by
[tex]\frac{1}{1-c1-b1}[/tex]
Tim, a cash-basis taxpayer, incorporates his sole proprietorship. He transfers the following items to newly created Wren Corporation:
Adjusted Basis Fair Market Value
Cash $10,000 $10,000
Building 100,000 160,000
Mortgage payable (secured by the building and held for 5 years) 120,000 120,000
With respect to this transaction, Select one:
a. Wren Corporation's basis in the building is $100,000.
b. Tim has no recognized gain.
c. Tim has a recognized gain of $20,000.
d. Tim has a recognized gain of $10,000.
Answer:
a because it tis tbr modnfhtisnfbhrirfgh
On April 1, Sangvikar Company had the following balances in its inventory accounts:
Materials Inventory $12,720
Work-in-Process Inventory 21,320
Finished Goods Inventory 8,700
Work-in-process inventory is made up of three jobs with the following costs:
Job 114 Job 115 Job 116
Direct materials $2,774 $2,640 $3,650
Direct labor 1,800 1,560 4,300
Applied overhead 1,080 936 2,580
During April, Sangvikar experienced the transactions listed below.
a. Materials purchased on account, $30,000.
b. Materials requisitioned: Job 114, $16,500; Job 115, $12,400; and Job 116, $5,000.
c. Job tickets were collected and summarized: Job 114, 150 hours at $15 per hour; Job 115, 220 hours at $17 per hour; and Job 116, 80 hours at $18 per hour.
d. Overhead is applied on the basis of direct labor cost.
e. Actual overhead was $4,765.
f. Job 115 was completed and transferred to the finished goods warehouse.
g. (1) Job 115 was shipped, and (2) the customer was billed for 140 percent of the cost.
Required:
Prepare journal entries for the April transactions.
Answer:
a.
DR Raw Material Inventory $30,000
CR Accounts Payable $30,000
b.
DR Work in Process Inventory $33,900
CR Raw Material Inventory $33,900
Working
= Job 114 + Job 115 + Job 116
= 16,500 + 12,400 + 5,000 = $33,900
c.
DR Work in Process $7,430
CR Wages Payable $7,430
Working
= (150 * 15) + (220 * 17) + (80 * 18)
= $7,430
d.
DR Work in Process $4,458
CR Manufacturing Overhead $4,458
Working
Overhead as % of Direct labor cost using Job 115 = Applied Overhead / Direct labor = 936/1,560 = 60%
Manufacturing Overhead = Overhead rate * Direct labor
= 60% * 7,430 = $4,458
e.
DR Manufacturing Overhead $4,765
CR Accounts Payable $4,765
f.
DR Finished Goods $23,520
CR Work in Process $23,520
Job 115 costs = Beginning + Material + Labor + Overhead
= (2,640 + 1,560 + 936) + 12,400 + (220 * 17) + (220 * 17 * 60%)
= $23,520
g.
DR Cost of Goods sold $23,520
CR Finished Goods $23,520
DR Accounts Receivable $32,928
CR Cost of Goods sold $32,928
Working
= 23,520 * 140%
= $32,928
Lexington Garden Supply pays $ 280,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of $ 93,000 , the building's current market value is $ 186,000 , and the equipment's current market value is $ 31,000. Prepare a schedule allocating the purchase price of $ 280,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The business signs a note payable for the purchase price.
Required:
Prepare a schedule allocating the purchase price of $ 280,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets.
Answer:
total purchase cost $280,000
land with FMV of $93,000
building with FMV of $186,000
equipment with FMV of $31,000
total FMV = $310,000
we will allocate purchase cost using the weighted average method:
land = ($280,000 / $310,000) x $93,000 = $84,000
building = ($280,000 / $310,000) x $186,000 = $168,000
equipment = ($280,000 / $310,000) x $31,000 = $28,000
total = $280,000
Dr Equipment 28,000
Dr Building 168,000
Dr Land 84,000
Cr Cash 280,000
Select the examples that best demonstrate likely tasks for Professional Support Services workers. Check all than
apply.
O Leon gives psychological tests to students and assesses their results.
O Helen sets goals, and creates rules and policies for a school.
O Alexander helps high-school students decide which classes to take.
O Ebony helps children find books and magazines in a school library.
O Kyle teaches a kindergarten class that prepares students for first grade.
O Francisca is a parent who donates money to a school program.
Answer: the answer is A, C, D
Explanation:
Answer:
Answer is A, C, D doing the instruction vidio right now just wanted to help some people. ;D
Explanation:
Novak Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method.
Year Straight-Line Sum-of-the-Years'-Digits Double-Declining-Balance
1 $15,750 $26,250 $35,000
2 15,750 21,000 21,000
3 15,750 15,750 12,600
4 15,750 10,500 7,560
5 15,750 5,250 2,590
Total $78,750 $78,750 $78,750
Required:
a. What is the cost of the asset being depreciated?
b. What amount, if any, was used in the depreciation calculations for the salvage value for this asset?
c. Which method will produce the highest charge to income in Year 1?
d. Which method will produce the highest charge to income in Year 4?
e. Which method will produce the highest book value for the asset at the end of Year 3?
f. If the asset is sold at the end of Year 3, which method would yield the highest gain (or lowest loss) on disposal of the asset?
Answer:
a. What is the cost of the asset being depreciated?
the cost of the asset = $35,000 / 0.4 = $87,500
b. What amount, if any, was used in the depreciation calculations for the salvage value for this asset?
salvage value = $87,500 - (5 x $15,750) = $8,750
c. Which method will produce the highest charge to income in Year 1?
double declining results in the highest depreciation expense
d. Which method will produce the highest charge to income in Year 4?
straight line results in the highest depreciation expense
e. Which method will produce the highest book value for the asset at the end of Year 3?
straight line, book value = $87,500 - (3 x $15,750) = $40,250
f. If the asset is sold at the end of Year 3, which method would yield the highest gain (or lowest loss) on disposal of the asset?
double declining balance, since the carrying value is lowest = $87,500 - $35,000 - $21,000 - $12,600 = $18,900
e.g. if the assets is sold at $30,000, the gain = $11,100
under straight line method a $30,000 resale price would result in a loss(= $30,000 - $40,250 = -$10,250), while sum of years' digit would result in a gain = $30,000 - ($87,500 - $26,250 - $21,000 - $15,750) = $5,500
Simon is a sales representative with McKesson who works with independent and chain drug stores to provide branded and private label over-the-counter medications, as well as a host of other supplies. Simon can match his customers' requirements to his broad product mix, and he also provides insights about what's selling in the marketplace so that store managers can make decisions about the allocation of shelf space. The approach is working, and Simon has been able to achieve his sales goals while also earning high customer satisfaction scores from his customer accounts. Which marketing management philosophy best applies to McKesson?
Answer:
Societal marketing orientation
Explanation:
Options include "a. Societal marketing orientation , b. Production orientation , C. Sales orientation , d. Market orientation
Societal marketing orientation is an idea to engage the customers in marketing movement of the company. If the customers evangelize the product on the company’s behalf the company finds success very easily and efficiently. Societal marketing orientation not only focuses on the needs of the customers but also on the fulfillment of the social responsibility
You own a small real estate company in Indianapolis. You track the real estate properties you list for clients. You want to analyze sales for selected properties. Yesterday, you prepared a workbook with a worksheet for recent sales data and another worksheet listing several properties you listed. You want to calculate the number of days that the houses were on the market and their sales percentage of the list price. In one situation, the house was involved in a bidding war between two families that really wanted the house. Therefore, the sale price exceeded the list price.
For the purpose of grading the project you are required to perform the following tasks:
Step
Instructions
Points Possible
1. Start Excel. Download and open the file named e01_grader_h3.xlsx.
0.000
2. Delete row 8, which has incomplete sales data. The owners took their house off the market.
3.000
3. Type 2018-001 in cell A5 and use Auto Fill to complete the series to assign a property ID to each property in the range A6:A12.
5.000
4. Enter a formula in cell C5 that calculates the number of days the first house was on the market. Copy the formula to the range C6:C12. Format the range C5:C12 with Number format with zero decimal places.
10.000
5. Format the list prices and sold prices in the range F5:G12 with Accounting Number Format with zero decimal places.
5.000
6. Enter a formula in cell H5 that calculates the sales price percentage of the list price for the first house. The second house was listed for $500,250, but it sold for only $400,125. Therefore, the sale percentage of the list price is .7999. Copy the formula to the range H6:H12.
10.000
7. Format the values in the range H5:H12 with Percent Style with two decimal places.
5.000
8. Wrap the headings in the range A4:H4.
2.000
9. Insert a new column between the Date Sold and List Price columns. Move the Days to Market data to the new blank column F by moving the range C4:C12 to F4:F12. Delete column C.
5.000
10. Edit the list date of the 41 Chestnut Circle house to be 4/22/2018. Edit the list price of the house on Amsterdam Drive to be $355,000.
5.000
11. Select the property rows (rows 5:12) and set a 25 row height and apply Middle Align.
5.000
12. Apply the All Borders border style to the range A4:H12.
3.000
13. Apply Align Right and increase the indent two times on the days on market formula results in the range E5:E12.
5.000
14. Set the Days on Market column width to 9. Set the List Price and Sold Price column widths to 11.86.
5.000
15. Apply 120% scaling.
2.000
16. Delete the Properties sheet and insert a new sheet named Formulas.
5.000
17. Use the Select All feature to select all data on the Houses Sold worksheet and copy it to the Formulas worksheet.
5.000
18. Hide the Date Listed and Date Sold columns in the Formulas worksheet.
5.000
19. Display cell formulas. Set options to print gridlines and row and column headings. Set 6.86 column width for column E and 6 for column H.
3.000
20. Group the two worksheets. Select Landscape orientation. Center the page horizontally and vertically between the margins.
7.000
21. With both worksheets still grouped, insert a footer with the text Exploring Series on the left side, the sheet name code in the center, and the file name code on the right side.
5.000
22. Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed.
0.000
Total Points
100.000
J. Heaton Realty
Sales Report
Prop ID Property Days on Market Date Listed Date Sold List Price Sold Price % of List Price
125 Amsterdam Drive 1/12/18 4/12/18 350000 335000
341 North Oak Drive 11/15/17 3/1/18 500250 400125
100 South 325 West 12/3/17 4/30/18 650725 500750
386 East Elm Street 3/1/18
2304 West 39th Street 3/14/18 3/30/18 315000 325000
41 Chestnut Circle 2/22/18 5/18/18 423500 420750
973 East Mulberry Lane 11/30/17 3/1/18 375000 375000
538 North Oak Drive 10/4/17 1/5/18 475000 400000
64 Chancellor Estates 4/1/18 4/15/18 500999 495000
Answer:
Open excel program and then select a worksheet. Double click on the worksheet tab and rename it according to the file name. Click import data and the excel will start downloading the data to the worksheet. When the data is download save as the worksheet so that any editing does not harms the original file.
Explanation:
Excel is a spreadsheet program which is developed by the Microsoft. This enables the users to handle complex numerical calculations with ease. It provides a wide range of complex formula in which multiple worksheets can be linked together for various tasks.
In its first month of operations, Vaughn Manufacturing made three purchases of merchandise in the following sequence:
(1) 340 units at $5,
(2) 440 units at $7, and
(3) 540 units at $8.
Assuming there are 240 units on hand at the end of the period, compute the cost of the ending inventory under
(a) the FIFO method and
(b) the LIFO method.
Vaughn Manufacturing uses a periodic inventory system.
Answer:
[tex]Ending\ Inventory = \$1920[/tex] --- FIFO
[tex]Ending\ Inventory = \$1200[/tex] -- LIFO
Explanation:
Solving (a):
FIFO method
This means that the first items to be listed were sold out and only 240 of the last item is left
This implies that the following units were sold
340 units at $5; 440 units at $7 and (540 - 240) units at $8
So: We're left with
[tex]Ending\ Inventory = 240 * \$8[/tex]
[tex]Ending\ Inventory = \$1920[/tex]
Solving (b):
LIFO method
This means that the last items to be listed were sold out and only 240 of the fist item is left
This implies that the following units were sold
540 units at $8; 440 units at $7 and (340 - 240) units at $5
So: We're left with
[tex]Ending\ Inventory = 240 * \$5[/tex]
[tex]Ending\ Inventory = \$1200[/tex]
Income Statement
Net sales 7,600
Cost of goods sold 6,715
Depreciation 200
Earnings before interest and taxes 685
Interest paid 20
Taxable Income 666
Taxes 232
Net income 434
Dividends 195
Balance Sheet
Cash 2,150 Accounts payable 1,550
Accounts rec. 830 Long-term debt 260
Inventory 2,600 Common stock 2,400
Total 5,580 Retained earnings 4,480
Net fixed assets 3,110
Total assets 8,690 Total liabilities and
equity 8,640
If the Nitro Tap Company maintains a constant debt-to-equity ratio, what growth rate can it maintain? Assume no additional external equity financing is available.
Answer:
3.47%
Explanation:
sustainable growth rate = retention rate x ROE
ROE = net income / shareholders' equity = 434 / 6,880 = 6.308%
retention rate = 1 - dividends/net income = 1 - 195/434 = 1 - 0.4493 = 0.5507
sustainable growth rate = 6.308% x 0.5507 = 3.4738% ≈ 3.47%
A company's sustainable growth rate is the growth rate that the company may experience on a long term basis. In order for a company to be able to grow, it must be able to either reinvest their earnings, obtain external financing or raise additional equity. In this case, we were told that no additional equity would be raised and that the debt/equity ratio would remain constant.
Complete the Transaction" Worksheet: On the form provided, identify the accounts affected by each transaction and the amount of increase or decrease in each account. Make sure the accounting equation is in balance after each transaction.
1. Jan Swift, owner, deposited $30,000 in the business checking account.
2. The owner transferred to the business a desk and chair valued at $700.
3. WordService issued a check for $4,000 for the purchase of a computer.
4. The business bought office furniture on account for $5,000 from Eastern Furniture.
5. The desk and chair previously transferred to the business by the owner were sold on account for $700.
6. WordService wrote a check for $2,000 in partial payment of the amount owed to Eastern Furniture Company.
Use the Excel spreadsheet form for posting the transactions.
Determine the effects of the transations
Assets Liabilities + Owner's Equity Jan Swift, Capital Trans Cash in Bank + Accounts Receivable + Computer Equipment + Office Furniture Accounts Payable + + 2 3 4 5 6 Bal. +
Answer:
I used an excel spreadsheet since there is not enough room here
Explanation:
On December 31, 2016, the manager of Jordan Creek Apartments noticed that four tenants had not paid their December rent amounting to $500 each. The manager spoke to each tenant individually and was promised by all 4 that the rent would be paid by January 15, 2017. Assuming the tenants follow through and make their payments by January 15, 2017, Jordan Creek should make the following entry as of December 31, 2016:______.
Cash (dr) $2,000
Rental Receivable (cr) $2,000
A. True
B. False
Answer:
B. False
The business should not make this entry on 31 December.
Explanation:
The accounting principle of prudence states that profits should not be overstated and losses should not be understated. This means that any profit should not be recorded until it is realized while any losses should be recorded as soon as they are anticipated. As the business has not received cash from tenants on 31 December 2016, it should not make any entry debiting cash and crediting the rent receivable.
The business should let the rent receivable balance intact until the rent is received on 15 January and till then record no entry to such as the above.
A taxpayer purchases real estate rental property for $150,000. She pays $25,000 cash and obtains a mortgage for $125,000. She pays closing costs of $8,000, which includes $4,000 in points on the mortgage and $4,000 for closing fees and title costs. The basis in the property is:
a. $33,000 depreciation , $125,000 amortization
b. $158,000 depreciation only
c. $154,000 depreciation, $4,000 amortization
d. $150,000 depreciation, $8,000 Amortization
Answer:
c. $154,000 depreciation, $4,000 amortization
Explanation:
The basis of the rental real estate property = purchase price + closing costs (excluding the cost of mortgage points) = $150,000 + $4,000 = $154,000
You can amortize the cost of the closing points for a period equal to the length of the mortgage loan (or up to 30 years if the length of the loan is longer).
In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 300 towels were in process and were 60 percent complete. The costs incurred were $576. During the month, costs of $10,800 were incurred, 2,700 towels were started, and 150 towels were still in process at the end of the month. At the end of the month, the towels were 20 percent complete.
Required:
A. Prepare a production cost report; the company uses weighted-average process costing.
RECYCLERS, INC.
Production Cost Report—FIFO
Flow of Production Units Compute Equivalent Units
Physical Units Conversion Costs
Units to be accounted for:
Beginning WIP inventory 300
Units started this period
Total units to be accounted for 300
Units accounted for:
Units completed and transferred out:
From beginning inventory
Started and completed currently
Units in ending WIP inventory
Total units accounted for 0 0
Costs Total Costs Conversion Costs
Costs to be accounted for:
Costs in beginning WIP inventory
Current period costs
Total costs to be accounted for $0 $0
Cost per equivalent unit:
Conversion costs
Costs accounted for:
Costs assigned to units transferred out:
Costs from beginning inventory
Current costs added to complete beginning WIP inventory:
Conversion costs
Total costs from beginning inventory $0
Current costs of units started and completed:
Conversion costs
Total costs of units started and completed $0
Total costs of units transferred out $0
Costs assigned to ending WIP inventory:
Conversion costs
Total ending WIP inventory $0
Total costs accounted for $0 $0
B. Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables.
Work in Process Various Payables
Beginning inventory Beg.bal.
This period's costs: End.bal.
Ending inventory
Finished Goods Inventory
Beg.bal.
End.bal.
Answer:
Units to be accounted for:
Beg WIP 300 units
started 2700 units
Total 3,000 units
Equivalent units
physical materials conversion
tranferred 2,850 2,850 2,850
ending 150 150 (20%) 30
total 3,000 2,700 2,880
Cost to be accounted for:
materials conversion
beg WIP 0 576
incurred 0 10,800
Total 0 11,376
Equivalent unis cost
materials zero
conversion: $11,376 / 2,880 = $3.95
Cost assigned for:
Transferred units
2,850 units x 3.95 = 11,257.5
ending work in process units
30 units x 3.95 = 118.5
Total cost to be assigned for 11,376
Notice: Total cost to be asisgned for and assigned cost are the same.
Explanation:
1) We count the physical units
2) Then, we solve for the equivalent units which, under weighted average are:
transferred units + completion on ending work in process.
3) Now, we solve for equivalent unit cost:
for materials, this is zero are there is no cost associaed with.
4) Finally, we made the cost assignment which, should match the beginning WP cost and the incurred cost during the period.
Provide one example of what the citizens of South Africa can do to uplift themselves
Answer:
Citizens of South Africa should endeavor to acquire skills that would make them financially independent.
Explanation:
Poverty and unemployment still remain major problems bedeviling African countries, South Africa inclusive. To uplift themselves, South African people should endeavor to acquire skills that would make them independent. Since the government cannot cater to the needs of everyone, learning a trade or two will help the teeming youths to be productively engaged.
This will go a long way to curb unemployment and its negative consequences such as crime perpetrated by young people. They could learn hard skills like fashion designing, Catering, Mechanized farming, etc. Soft skills would also help them to grow professionally.
An example of what the citizens of South Africa can do to uplift themselves is to develop their community and get the necessary skills and education.
In South Africa today, there are issues of inequality and poverty affecting the people. In order to tackle these issues, it's vital to focus on projects that can help the poor in society. This can be through the creation of jobs.Furthermore, it's vital for people to develop their skills. Skill courses and mentorship programs should be engaged in order for the people to improve their standard of living.Lastly, companies should be socially responsible and find ways through which they can help the poor.Read related link on:
https://brainly.com/question/14142334
Prepare the financial statements for Smart Touch Learning for the month of December. Remember that the business started operations this month so all beginning balances were zero. For the Statement of Retained Earnings and the Balance Sheet, enter any decreases with a minus sign or parentheses.
SMART TOUCH LEARNING
Adjusted Trial Balance
December 31, 2016
Balance
Account Title Debit Credit
Cash 42,310
Accounts Receivable 2,400
Office Supplies 420
Prepaid Insurance 900
Furniture 13,300
Accumulated Depreciation
- Furniture 400
Salaries Payable 1,100
Unearned Revenue 4,200
Common Stock 41,500
Dividends 2,200
Service Revenue 20,400
Salaries Expense 3,300
Depreciation Expense
- Furniture 400
Insurance Expense 300
Utilities Expense 390
Rent Expense 1,600
Supplies Expense 80
Total 67,600 67,600
Answer:
SMART TOUCH LEARNING
Income Statement
December 31, 2016
Service Revenue 20,400
Salaries Expense 3,300
Depreciation Expense
- Furniture 400
Insurance Expense 300
Utilities Expense 390
Rent Expense 1,600
Supplies Expense 80 6,070
Net Income 14,330
Statement of Retained Earnings
December 31, 2016
Net Income 14,330
Dividends (2,200)
Balance, December 31, 2016 12,130
Balance Sheet
December 31, 2016
Assets:
Cash 42,310
Accounts Receivable 2,400
Office Supplies 420
Prepaid Insurance 900
Total current assets $46,030
Furniture 13,300
Accumulated
Depreciation (400) 12,900
Total assets $58,930
Liabilities + Equity:
Salaries Payable 1,100
Unearned Revenue 4,200
Common Stock 41,500
Retained Earnings 12,130
Total Liabilities + Equity $58,930
Explanation:
a) Data:
SMART TOUCH LEARNING
Adjusted Trial Balance
December 31, 2016
Balance
Account Title Debit Credit
Cash 42,310
Accounts Receivable 2,400
Office Supplies 420
Prepaid Insurance 900
Furniture 13,300
Accumulated Depreciation
- Furniture 400
Salaries Payable 1,100
Unearned Revenue 4,200
Common Stock 41,500
Dividends 2,200
Service Revenue 20,400
Salaries Expense 3,300
Depreciation Expense
- Furniture 400
Insurance Expense 300
Utilities Expense 390
Rent Expense 1,600
Supplies Expense 80
Total 67,600 67,600
Developing Business Writing TechniquesYou can improve your message by using mechanical emphasis, parallelism, voice, and well-placed descriptions.One way to achieve emphasis is through mechanical devices.Complete the following sentence. —used sparingly—can be an effective way to emphasize explanatory information.You can also improve your messages through stylistic emphasis in sentnce structure and word choice. Which of the following stylistic devices can be used to achieve emphasis? Check all that apply.Position important ideas first or last in a sentence.Use complex sentence patterns.Use general terms.Label descriptive modifiers.Use vivid words.In some cases it is necessary to de-emphasize an idea, such as bad nes. Does the following selection emphasize or de-emphasize the bad news?While we are unable to renew your contract for the upcoming year, we hope to have the position reposted once the funds are available.EmphasizeDe-emphasizeWhen you compose messages, you may use the active or passive voiceto convey meaning. Most business messages use the active voice. Which of the following are instances when you would use the passive voice in a business message? Check all that apply.To emphasize an action instead of the recipient of an actionTo avoid beginning the sentence with itTo create confusion for your readerTo conceal the doer of an actionDoes the following sentence use the active or passive voice?The Lifetime Achievement Award was presented to Christina Balian.PassiveActiveParallel sentences are balanced and easy for readers to understand. Choose which sentence has the better parallel structure.If you write well, speak well, and use good interpersonal skills, you will do well in this corporation.If you write well, speak well, and are using good interpersonal skills, you will do well in this corporation.Choose the best revision to the following sentence.Teagan saw the recommendations flipping through the report.Flipping through the report, Teagan saw the recommendations.Teagan saw the recommendations, flipping through the report.Effective business writers use various techniques to improve their messages. How could the following selection be improved?Because of the snowstorm, the roads are closed and the trains aren’t running, the office will be closed today.The problem in this ineffective selection is:Passive voiceNot emphasizing important ideasSentence length/comprehension rateWriters should use words carefully and construct sentences skillfully to emphasize main ideas and de-emphasize minor ideas.Choose the best responseWhich of the following emphasizes the main idea?We have now successfully concluded our interview process and you have passed.Congratulations! We would like to offer you the position of senior analyst.
Answer:
Developing Business Writing Techniques
Improving messages by using mechanical emphasis, parallelism, voice, and well-placed descriptions:
1. Devices:
Stylistic devices—used sparingly—can be an effective way to emphasize explanatory information.
2. Stylistic devices used to achieve emphasis:
a. Position important ideas first or last in a sentence.
b. Use vivid words.
3. De-emphasize bad news
4. When to use the Passive Voice:
To emphasize an action instead of the recipient of an action
To conceal the doer of an action
5. Passive
6. Sentence with better parallel structure:
If you write well, speak well, and use good interpersonal skills, you will do well in this corporation.
7. Best Revision:
Flipping through the report, Teagan saw the recommendations.
8. Not emphasizing important ideas
9. Congratulations! We would like to offer you the position of senior analyst.
Explanation:
Stylistic devices help writers to achieve emphasis and readers to achieve understanding of the message being communicated. While they should be used economically, their presence in any writing acts as an effective way to improve messages.
Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS At the beginning of March, Mendez Company had two jobs in process, Job 86 and Job 87, with the following accumulated cost information:
Job 86 Job 87
Direct materials $4,800 $1,600
Direct labor 1,200 3,000
Applied overhead 888 2,220
Balance, March 1 6,888 $6,820
During March, two more jobs (88 and 89) were started. The following direct materials and direct labor costs were added to the four jobs during the month of March:
Job 86 Job 87 Job 88 Job 89
Direct materials $3,000 $7,000 $2,100 $1,500
Direct labor 800 6,000 900 500
At the end of March, Jobs 86, 87, and 89 were completed. Only Job 87 was sold. On March 1, the balance in Finished Goods was zero.
Required:
a. Calculate the overhead rate based on direct labor cost.
b. Prepare a brief job-order cost sheet for the four jobs. Show the balance as of March 1 as well as direct materials and direct labor added in March.
Answer:
1. Overhead rate based on direct labor cost = Overhead applied * 100/Direct labor cost
Overhead rate = 888 * 100/1200
Overhead rate = 74% of direct labor cost
2. Preparation of the brief job-order cost sheet for the four jobs.
Job 86 Job 87 Job 88 Job 89
Beginning balance, March 1 6,888 6,820
Direct materials 3,000 7,000 2,100 1,500
Direct labor 800 6,000 900 500
Applied overhead 592 4440 666 370
Total Balance March 31 11,280 24,260 3,666 2,370
The Rivera's owned and operated a small pharmacy in New York. They spoke to Hyman a representative of CVS Pharmacy,inc. Hyman told them that for 25,000 CVS would build them a store and stock it for them. The Rivera's gave up their store and bought a lot on which CVS was to build the store. CVS then told them the price went up to 35,000. The Rivera's borrowed the extra money, but then CVS told them the cost would be 50,000. Negotiations broke off and the Rivera's sued.
(1) Is there a contract?
(2) and if there is not is there another way the Rivera's can recover any money?
Answer:
1. There is no contract between the two parties as the negotiation broke in the middle and no offer and acceptance were there during the entire process.
2. The principle of restitution of unjust enrichment can be used by the plaintiff in order to recover the amount that was invested by the plaintiff. As per this principle, the arrangement made for the proposed contract that broke during the negotiation, the other party has to pay the amount spent in the development of the infrastructure required in the contract.