Answer:
e. all of these should be included.
Explanation:
These listed items are not entrepreneurial personality traits. Holly is not expected to have any of them as traits because they are not. Personality traits are human characteristics, which propel Holly as an entrepreneur to take entrepreneurial risks. They include Creativity, Risk-taking, Passion, Planning, Social Skills, Open-mindedness, Decisiveness, Positivity, etc. Holly abundantly possesses them.
The following transactions occurred during the month of August 2019 for the Washington Apple Company:
1 Issued 10,000 shares of stock in exchange for $100,000 in cash.
2 Purchased equipment at a cost of $70,000 and paid cash.
3 Purchased supplies on account for $5000.
4 Made cash sales of $45,000 in the month of August.
5 Paid rent on a warehouse in amount of $7000 for August.
Required: Analyze each transaction and show the effect of each using for increases and for decreases:
Answer:
1. Increase in equity
2. increase in asset
3. increase in liability
4. Increase in revenue
5. Increase in expense
Explanation:
Assets is anything that provides future benefit to a company. Assets are reported in the balance sheet of the company and the company's reliability is measured on the basis of strength of its assets. Liability is the obligation that the company has to pay in future. These asset to liability ratio should be atleast 1 for the organizations.
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,192,500 in manufacturing overhead cost at an activity level of 559,000 machine-hours. The company spent the entire month of January working on a large order for 12,300 custom-made machined parts. The company had no work in process at the beginning of January. Cost data relating to January follow:
a. Raw materials purchased on account, $322,000.
b. Raw materials used in production, $258,000 (80% direct materials and 20% indirect materials).
c. Labor cost accrued in the factory, $159,000 (one-third direct labor and two-thirds indirect labor).
d. Depreciation recorded on factory equipment, $63,100.
e. Other manufacturing overhead costs incurred on account, $85,000.
f. Manufacturing overhead cost was applied to production on the basis of 40,720 machine-hours actually worked during the month.
g. The completed job for 12,300 custom-made machined parts was moved into the finished goods warehouse on January 31 to await delivery to the customer. (In computing the dollar amount for this entry, remember that the cost of a completed job consists of direct materials, direct labor, and applied overhead.)
Required:
1. Prepare journal entries to record items (a) through (f) above (ignore item (g) for the moment).
2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your journal entries to these T-accounts.
3. Prepare a journal entry for item (g) above.
4. Compute the unit product cost that will appear on the job cost sheet.
Answer:
Explanation:
Answer:
1.Dr. Raw Material $322,000
Cr. Account Payable $322,000
Dr. Work in process (80/100× 258,000)=$206400
Dr. Manufacturing overheads (20/100× 258,000)= $51600
Cr. Account Payable 258,000
Dr. Work in process 60000(1/3×159,000)=$53000
Dr. Manufacturing overheads
(2/3×159,000)=106,000
Cr. Account Payable 159,000
Dr. Raw Material 63,100
Cr. Account Payable 63,100
Dr. Manufacturing overheads 85,000
Cr. Account Payable 85,000
Dr. Work in process 814400
Cr. Manufacturing overheads 814400
7.5*40,720=$305400
Predetermined Overhead rate can be calculated as = Total Budgeted Overhead cost/ Total budgeted machine hours
$4,192,500/559,000
= $7.5/Machine Hours
2. Dr. -----.------------------------------------ Cr.
Manufacturing overhead
account payable (material)$51600
account payable (labor)106,000
account payable (other)85,000
C/f balance= $305400
$305400
Dr. ----------------------------------------------Cr.
Work in process
account payable (material)$206400
account payable (labor)$53000
account payable (other)$30540
C/f balance= 289940
3.Dr. Finished Goods 289940
Dr. Work in process 289940
4.Unit product Cost = 289940/12,300
= $23.5
Sandals Company is preparing the annual financial statements dated December 31. Ending inventory information about the four major items stocked for regular sale follows:Product Line Quantity on Hand Unit Cost When Acquire(FIFO) Market Value at Year-EndAir Flow 35 $ 15 $ 17 Blister Buster 75 38 36 Coolonite 34 65 60 Dudesly 35 30 35 Required:1. Compute the amount that should be reported for the ending inventory using the LCM rule applied to each item.Ending Inventory 2. How will the write-down of inventory to lower of cost or market affect the company’s expenses reported for the year ended December 31?Cost of goods sold will be by
Answer:
1) $6,315
2) since the ending inventory decreased in value (by $320), cost of goods sold will increase by that same amount. Since COGS increases, income will decrease. The adjusting journal entry should be:
December 31, 202x, LCM inventory adjustment
Dr Cost of goods sold 320
Cr Inventory 320
Explanation:
Product Line Quantity Unit Cost Market Value Total
Air Flow 35 $15 $17 $525
Blister Buster 75 $38 $36 $2,700
Coolonite 34 $65 $60 $2,040
Dudesly 35 $30 $35 $1,050
total $6,315
When you use the lower of cost or market value, you must report your inventory using the lowest cost between purchase price and current market value (or replacement cost). Air Flow and Dudesly should be reported at purchase cost, while Coolnite and Blister Buster should be reported at market value.
______has an absolute advantage in the production of alfalfa, and_______ has an absolute advantage in the production of barley. Charles's opportunity cost of producing 1 bushel of barley is ________bushels of alfalfa, whereas Dina's opportunity cost of producing 1 bushel of barley is bushels of alfalfa. Because Charles has a opportunity cost of producing barley than Dina, ________has a comparative advantage in the production of barley, and has a comparative advantage in the production of alfalfa
Answer:
The person with Absolute advantage is the one that produces more of a good than the other.
Dina has an absolute advantage in the production of alfalfa, and Charles has an absolute advantage in the production of barley.
The person with Comparative Advantage is the person who produces something at a lower opportunity cost.
Charles Opportunity Costs
Producing Alfalfa gives 12 bushels per acre instead of 6 bushels for Barley.
Producing 1 Alfalfa means 6/12 = 0.5 bushels Barley is given up
Producing 1 bushel of Barley means 12/6 = 2 bushels Alfalfa is given up.
Dina Opportunity Costs
Producing Alfalfa gives 15 bushels per acre instead of 5 bushels for Barley.
Producing 1 Alfalfa means 5/15 = 0.33 bushels of Barley is given up
Producing 1 bushel of Barley means 15/5 = 3 bushels of Alfalfa is given up.
Charles's opportunity cost of producing 1 bushel of barley is 2 bushels of alfalfa, whereas Dina's opportunity cost of producing 1 bushel of barley is 3 bushels of alfalfa. Because Charles has lower a opportunity cost of producing barley than Dina, Charlie has a comparative advantage in the production of barley, and Dina has a comparative advantage in the production of alfalfa.
The person with Absolute advantage is the one that produces more of a good than the other. Dina has an absolute advantage in the production of alfalfa, and Charles has an absolute advantage in the production of barley. The person with Comparative Advantage is the person who produces something at a lower opportunity cost.
Consider the following income statement for the Heir Jordan Corporation:_____.
HEIR JORDAN CORPORATION
Income Statement
Sales $ 48,200
Costs 34,000
Taxable income $ 14,200
Taxes (23%) 3,266
Net income $ 10,934
Dividends $ 3,600
Addition to retained earnings 7,334
The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not. (Leave no cells blank - be certain to enter "0" whenever the item is not a constant percentage of sales. Enter each answer as a percent rounded 2 decimal places, e.g., 32.16.)
Answer:
The rest of the question and the answer are attached.
To get the percentages, the following formula was used;
= (Account/ Sales) * 100
For instance, for the Fixed Assets it was;
= (37,200/48,200) * 100
= 77.18%
1. To gain profit and earn a living.
List four job advertisements can be found
Answer:
tropical smoothie cafe
mcdonalds
dunkin doughnuts
starbucks
Explanation:
theres a whole lot more!!!!
Halliburton and Schlumberger compete in the oil field services sector. Refer to the following 2018 financial data for the two companies to answer the requirements.
$ millions HAL SLB
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $23,995 $32,815
Cost of sales and services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,009 28,478
Average accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,135 7,983
Average inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,712 4,028
Average accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,786 10,130
Marginal tax rate 22% 19%
Return on equity 18.56% 5.86%
a. Compute return on net operating assets (RNOA) for each company.
b. Disaggregate RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for each company.
Do not round until your final answer. Round answers to two decimal places (percentage example: 0.12345 = 12.35%).
HAL SLB
RNOA
NOPM
NOAT
Answer:
a. Return of Net Operating Asset for each company
Amount$
Particulars HAL SLB
Net Operating Profits after tax
Net Income (after tax) 1,657 2,177
Marginal Tax Rate 22% 19%
Net Income (before tax) 2,124 2,688
(Net Income (after tax)*100/(100-Tax Rate)
Add : Pre tax net non operating Expense 653 426
Net Operating Income before tax 2,777 3,114
Marginal Tax Rate 22% 19%
Less Tax Expense (Net Operating Income) -611 -592
(before tax*Marginal Tax Rate)
Net Operating Income after tax $2,166 $2,522
Average Net Operating Assets HAL SLB
Average Operating Assets 23,361 67,836
Average Operating Liability 5,888 16,499
Average Net Operating Assets 17,473 51,337
RNOA = Net Operating Income after tax / Average Net Operating Assets (A/B)
HAL = 2,166 / 17,472 = 12.40%
SLB = 2,522 / 51,337 = 4.91%
b. Net Operating Profit Margin = (Net Operating Profits after tax/ Total Revenue *100)
Particulars HAL SLB
Net Operating Income after tax (Refer A) 2,166 2,522
Total Revenue 23,995 32,815
Net Operating Profit Margin 9.03% 7.69%
(Net Operating Profits after tax/ Total Revenue *100)
Net Operating Asset Turnover = (Total Revenue/ Average Net Operating Assets)
Particulars HAL SLB
Total Revenue 23,995 32,815
Average Net Operating Assets (Refer B) 17,473 51,337
Net Operting Asset Turnover 1.37times 0.64times
(Total Revenue/ Average Net Operating Assets)
What type of business organization offers many benefits and is specific to
the United States?
A. Corporations
B. Limited liability companies
C. Sole proprietors
D. Partnerships
The kind of business organization offers many benefits and is specific to the United States is Sole proprietors. Thus, option C is correct.
What is Sole Proprietors?A Sole proprietor is an individual who owns an unincorporated business on his or her own. If you are the lone member of a domestic limited liability company (LLC), you are not considered a sole owner if you choose to handle the LLC as a corporation.
The key advantages of a sole proprietorship are the pass-through tax benefit, simplicity of formation, and inexpensive formation and maintenance expenses. You also don't have to fill out a lot of paperwork with a sole proprietorship, such as licensing with your state.
Sole Proprietors are a type of company structure that has several advantages and is unique to the United States. As a result, option C is correct.
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What taxes in a paycheck will be exempted for a minor?
Answer:
0$
Explanation:
Answer:
Generally, if a minor's income does not exceed the standard deduction he or she will not be required to file a tax return. If the above scenario is true, then the minor can check the box on Form W-4 that classifies he or she as exempt from withholding.
Explanation:
Michael’s Bookshelf specializes in used, rare, and out-of-print books. The store has a large base of repeat customers who purchase books on 30-day accounts. At 15 days overdue, each customer gets a phone call from Michael requesting payment. Michael has experienced a high success rate with this collection effort. Michael’s CPA is preparing year-end financial statements and has asked him for his estimate of uncollectible accounts. Michael has a balance of $65,000 in the Accounts Receivable account at the end of the year. He has analyzed his uncollectible accounts using an aging of the accounts receivable. He estimates that only 2.5 percent of his accounts receivable balance will not be collected. The Allowance for Doubtful Accounts has a credit balance of $210 in the trial balance.
Required:
a. Prepare the journal entry to record the bad debt expense at year end.
b. Show the balance sheet presentation of the receivable account.
c. What is the amount of bad debt expense that appears on the income statement? How is this amount classified?
d. What would be the justification, if any, for Michael to use the direct write-off method for accounting for uncollectible accounts?
Answer:
A. Dr Bad Debt Expense 1,415
CrAllowance for Doubtful Accounts 1,415
B. $63,375
C. $1,415
The bad debt amount of 1,415 will be written in
income statement below selling expenses because the amount is an operating expense amount.
D. The justification is that In a situation where the amount is said to be immaterial to total sales amount he may decide not to record the bad debt amount using the allowance method.
Explanation:
A. Preparation of the journal entry to record the bad debt expense
Dr Bad Debt Expense 1,415
CrAllowance for Doubtful Accounts 1,415
[(2.5%*65,000)-210]
=1,625-210
=1,415
(To record estimated uncollectible accounts)
B. The balance sheet presentation of the receivable account will be :
CURRENT ASSSETS
Accounts Receivable $65,000
Less: Allowance for Uncollectible Accounts 1,625 (2.5%*65,000)
Receivable account $63,375
C.The amount of bad debt expense that will appears on the income statement is 1,415
Calculated as :
Bad debt=[(2.5%*65,000)-210]
Bad debt =1,625-210
Bad debt =1,415
B.The amount of bad debt expense that will appears on the income statement is 1,415
Calculated as :
Bad debt=[(2.5%*65,000)-210]
Bad debt =1,625-210
Bad debt =1,415
The bad debt amount of 1,415 will be written in
income statement below selling expenses because the amount is an operating expense amount.
D. Based on the information given Michael’s bad debts percentage is 2.5 percent of his accounts receivable balance which means that in a situation where the amount is said to be immaterial to total sales amount he may decide not to record the bad debt amount using the allowance method.
Your boss suggests that a Cobb-Douglas production function could be a good representation of that country's income. Is your boss right?
a. Yes, you can tell by the way the income shares for each factor move in opposite directions over time.
b. No, if it were a Cobb-Douglas production function, the income shares would be constant over time.
c. The production function cannot be determined without knowing how real GDP changed over time.
d. No, if it were a Cobb-Douglas production function, the income shares would change in the same direction over time.
Answer: b. No, if it were a Cobb-Douglas production function, the income shares would be constant over time.
Explanation:
Cobb–Douglas production function is used to show the technological relationship that takes place between the inputs and output that the inputs on the production process can produce.
In this scenario, we are informed that the boss suggests that a Cobb-Douglas production function could be a good representation of that country's income. In this case, the answer is No. The Boss is wrong because if it was to be a Cobb-Douglas production function , then the income share would be constant over time.
In this case, we can see that there is fluctuation of the factor shares as they're not constant but rather changes with time.
Indicate how you think each of the following would shift demand in the indicated market:
a. The income of buyers in the market for Adirondack vacations increase.
b. Buyers in the market for pizza read a study linking pepperoni consumption to heart disease.
c. Buyers in the market for gas-powered cars learn of an increase in the price of electric cars (a substitute for gas-powered cars).
d. Buyers in the market for electric cars learn of an increase in the price of electric cars.
Answer:
An increase in the income of buyers in the market for Adirondack vacations would increase the demand for vacations. As a result there would be a rightward shift of the demand curve for Adirondack vacations.
b. As a result of the study, less people would be willing to eat pizza. As a result, there would be a leftward shift of the demand curve for pizza
c. If the price of electric cars increase, there would be an increase in the demand of gas powered cars. As a result, the demand curve for gas-powered cars would shift to the right
d. An increase in price of electric cars would lead to a reduction in the demand for electric cars. As a result, there would be a leftward shift of the demand curve for electric cars
Explanation:
Substitute goods are goods that can be used in place of another good. If the price of a good increases, the demand for the substitute good increases.
Drag the tiles to the correct boxes to complete the pairs. Match the transactions to their relevant posting in the ledger.
Matching the transactions to their relevant posting in the ledger are;
Business purchases furniture: furniture account debited
Business sells furniture: furniture account credited
Business takes a loan from the bank: loan account debited
Business pays off the loan: loan account credited
The three primary categories of ledgers are;
1) General ledger: This is where accounts are kept that match the income statement and balance sheet they are intended for.
2) Sales ledger or debtor's ledger: This displays the current balance of money owed by clients to you and your business.
3) The purchase ledger, often known as the creditor's ledger, is a list of the goods and services a business has purchased, together with the amounts that have been paid and still need to be paid.
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List and describe five potential strategies for conflict resolution in teams. Which methods have been found to be most effective in teams? Which method is likely to be most successful if your manager likes to be involved in every decision?
Explanation:
Some efficient strategies for resolving conflicts in teams can be: assessing the situation, improving communication, providing feedback, redesigning work, collaboration, including employees in the decision.
The most effective methods are usually those that integrate several factors that act directly on the central motivator that is generating the conflicts, so it is necessary to analyze the situation, improve an effective communication about the team's objectives, provide feedback so that team members feel motivated to develop their skills in the best way, redesigning the work so that each employee is exercising the function that best suits their skills and the inclusion of employees in the team's decision-making processes, which creates a sense greater appreciation of work.
In the case of managers who are involved in all decisions, it is more appropriate to use the collaborative method, actively participating in the team's challenges, providing help and assisting subordinates in their demands in favor of the team's success.
Cost of Normal Spoilage
Frieling Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab, and then Frieling measures the countertop area at the customer's home, cuts the granite to that shape, and installs it. The Tramel job calls for direct materials of $2,300 and direct labor of $500. Overhead is applied at the rate of 130 percent of direct labor cost. Unfortunately, one small countertop breaks during installation and Frieling must cut another piece and install it to properly complete the job. The additional rework required direct materials costing $800 and direct labor costing $500. Assume that the spoilage was due to carelessness by a Frieling worker and it is considered to be normal spoilage.
Required:1. Calculate the cost of the Tramel job.2. Make any needed journal entry to the overhead control account.
3. What if the additional rework required $200 of direct labor? What would be the effect on the cost of the Tramel job?
Answer:
1. Calculation of the Cost of the Tramel Job
Particulars Amount
Direct material cost $2,300
Direct labor cost $500
Overhead applied $650 (500*130)
Total cost of job $3,450
2. Particulars Debit Credit
Overhead Cost $1,300
To materials $800
To Labour $500
3. The Cost of the Tramel Job will not be affected
Record the journal entry for each transaction below. Reference each transaction by date:
a. On September 1, Pat Hopkins established Ona Cloud Corporation (OCC) as a provider of cloud computing services.
b. Pat contributed $15,000 for 1,500 shares of OCC.
c. On September 8, OCC borrowed $23,000 from a bank, promising to repay the bank in two years.
d. On September 10, OCC wrote a check for $20,500 to acquire computer equipment.
e. On September 15, OCC received $1,650 of supplies purchased on account and, on September 16, paid $2,250 for September rent. Through September 22, OCC provided its customers $10,250 of services, of which OCC collected $7,500 in cash.
f. On September 28, OCC paid $325 for Internet and phone service this month.
g. On September 29, OCC paid wages of $5,650 for the month.
Finally, on September 30, OCC submitted its electricity meter reading online and determined that the total charges for the month will be $730. This amount will be paid on October 14 through a preauthorized online payment.
Answer:
Ona Cloud Corporation (OCC)
Journal Entries:
a. September 1:
Establishment of Ona Cloud Corporation.
b. September 1:
Debit Cash Account $15,000
Credit Common Stock $15,000
To record the common stock contributed by Pat Hopkins.
c. September 8:
Debit Cash Account $23,000
Credit Notes Payable $23,000
To record the bank loan payable in two years' time.
d. September 10:
Debit Equipment $20,500
Credit Cash Account $20,500
To record the purchase of computer equipment.
e. September 15:
Debit Supplies $1,650
Credit Accounts Payable $1,650
To record the purchase of supplies on account.
e. September 16:
Debit Rent Expense $2,250
Credit Cash Account $2,250
To record the payment for September rent.
e. September 22;
Debit Cash $7,500
Debit Accounts Receivable $2,750
Credit Service Revenue $10,250
To record the provision of services through September 22.
f. September 28:
Debit Utilities Expense $325
Credit Cash Account $325
To record payment for internet and phone service for the month.
g. September 29:
Debit Wages Expense $5,650
Credit Cash Account $5,650
To record the payment of wages for the month.
i. September 30:
Debit Utilities Expense $730
Credit Utilities Payable $730
To accrue unpaid electric utilities bill for the month.
Explanation:
Ona uses the general journal to record its business transactions initially as they occur from one day to another. Journal entries identify the accounts involved in each transaction. It records the account to be debited and the account to be credited in the general ledger.
Hankins, Inc., is considering a project that will result in initial after tax cash savings of $4.3 million at the end of the first year, and these savings will grow at a rate of 1.9 percent per year indefinitely. The firm has a target debt-equity ratio of .40, a cost of equity of 10.8 percent, and an aftertax cost of debt of 3.2 percent. The cost-saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of +2 percent to the cost of capital for such risky projects.
Required:
a. Calculate the discount rate for the project.
b. What is the maximum cost the company would be willing to pay for this project?
Answer:
9.76%
$54,707,379.13
Explanation:
Given the following :
Debt - Equity ratio = 0.4
Weight of debt(Wd) = 0.4
Weight of equity (We) = 1 - 0.4 = 0.6
Cost of Equity (Ke) =10.8%
Initial cashflow = $4.3 million
After tax cost of debt (Rd) = 3.2%
Adjustment factor (A) = +2%
Growth rate = 1.9%
Weighted average cost of capital:
(Weight of equity * cost of equity) + (after tax cost of debt * weight of debt)
(0.6 * 10.8%) + (3.2% * 0.4) = 0.0776
=0.0776 * 100% = 7.76%
Add the adjustment factor :
WACC + A = 7.76% + 2% = 9.76%
Hence, discount rate = 9.76%
Maximum amount to pay:
Using the relation:
Present value (PV) = Initial cashflow /(discount rate - growth rate)
PV = 4,300,000/ (9.76% - 1.9%)
PV = 4,300,000 / 7.86%
PV = 4,300,000 / 0.0786
PV = $54,707,379.13
PV = maximum company will be willing to pay
Suppose a union successfully negotiates an increase in the wages of workers producing computer chips. This would lead to (a decrease, an increase) in the supply of computers, causing the price of computers to (rise, fall) . Because computers and computer software are (substitutes, complements) , this change in price would cause the demand for computer software to (increase, decrease) . However, computers and typewriters are (substitutes, complements) , so the change in the price of computers would (decrease, increase) the demand for typewriters.
Answer:
Decrease
rise
complements
decrease
substitutes
increase
Explanation:
As a result of the increase in wages would lead to an increase in the cost of production and as a result a fall in supply. As a result of the fall in supply, the price of computers would rise.
Complement goods are goods that can be used together. computers and computer software are used together. As a result of the rise in price of the computers, which would lead to fall in demand for computers, there would be less demand for the software. So, the demand for software would fall.
Substitute goods are goods that can be used in place of another good. A rise in price of computers would lead to a rise in demand for typewriters.
The following trial balance of Sheffield Co. does not balance.
SHEFFIELD CO. TRIAL BALANCE JUNE 30, 2020
Debit Credit
Cash $3,227
Accounts Receivable $2,874
Supplies 1,157
Equipment 4,157
Accounts Payable 3,023
Unearned Service Revenue 1,557
Common Stock 6,357
Retained Earnings 3,357
Service Revenue 2,737
Salaries and Wages Expense 3,757
Office Expense 1,297
Totals $14,799 $18,701
Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
1. Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
2. The purchase of a computer printer on account for $857 was recorded as a debit to Supplies for $857 and a credit to Accounts Payable for $857.
3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.
4. A payment of $422 for telephone charges was recorded as a debit to Office Expense for $422 and a debit to Cash for $422
5. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $682 was performed prior to June 30 (related to Unearned Service Revenue)
6. A debit posting to Salaries and Wages Expense of $1,027 was omitted.
7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260
8. A dividend of $932 was debited to Salaries and Wages Expense for $932 and credited to Cash for $932.
Required:
Prepare a correct trial balance.
Answer:
SHEFFIELD CO.
Corrected TRIAL BALANCE JUNE 30, 2020
Debit Credit
Cash $2,563
Accounts Receivable 2,694
Supplies 300
Equipment 5,014
Accounts Payable $2,557
Unearned Service Revenue 875
Common Stock 6,357
Retained Earnings 3,357
Service Revenue 4,220
Dividend 932
Salaries and Wages Expense 3,852
Office Expense 1,297
Explanation:
a) Data and Calculations:
SHEFFIELD CO. TRIAL BALANCE JUNE 30, 2020
Debit Credit
Cash $3,227 + 180 - $844
Accounts Receivable 2,874 - 180
Supplies 1,157 - 857
Equipment 4,157 + 857
Accounts Payable $3,023 - 466
Unearned Service Revenue 1,557 - 682
Common Stock 6,357
Retained Earnings 3,357
Service Revenue 2,737 + 801 + 682
Dividend 932
Salaries and Wages Expense 3,757 + 1,027 - 932
Office Expense 1,297
Totals $14,799 $18,701
Journal Entries to correct errors:
1. Debit Cash Account $180
Credit Accounts Receivable $180
To correct error of transposition.
2. Debit Office Equipment $857
Credit Supplies $857
To correct error of commission (posting to the wrong account).
3. Debit Suspense $801
Credit Service Revenue $801
To correct error of understatement on one side of the ledger.
4. Debit Suspense $844
Credit Cash Account $844
To reverse an error of commission.
5. Debit Unearned Service Revenue $682
Credit Service Revenue $682
To recognize revenue for services performed.
6. Debit Salaries & Wages Expense $1,027
Credit Suspense Account $1,027
To correct error of omission.
7. Debit Accounts Payable $466
Credit Suspense $466
To correct error of commission
8. Debit Dividend $932
Credit Salaries and Wages Expense $982
To correct error of commission
Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $118,660. The seller agreed to allow a 4.25 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,640. Southwest Milling had to hire a specialist to calibrate the loader. The specialists fee was $1,160. The loader operator is paid an annual salary of $18,160. The cost of the companys theft insurance policy increased by $2,040 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $14,000.RequiredDetermine the amount to be capitalized in the asset account for the purchase of the front-end loader. Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign.Cost that are to be capitilized AnswerList Price _______Either ADD or Less: Discount _______Either ADD or Less: Discount _______Either ADD or Less: Discount _______Total Costs $0
Answer:
$117,417
Explanation:
Calculation to Determine the amount to be capitalized in the asset account
Costs that are to be capitalized:
List price $118,660
Less: Discount ($5,043)
($118,660*4.25%)
Freight cost $2,640
Specialist fee $1,160
Total costs $117,417
Therefore the amount to be capitalized in the asset account will be $117,417
On November 1, 2021, Jamison Inc. adopted a plan to discontinue its barge division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by April 30, 2022. On December 31, 2021, the company's year-end, the following information relative to the discontinued division was accumulated:
Operating loss Jan. 1–Dec. 31, 2021 $67 million
Estimated operating losses, Jan. 1 to April 30, 2022 99 million
Excess of fair value, less costs to sell, over book value at Dec. 31, 2021 16 million
In its income statement for the year ended December 31, 2021, Jamison would report a before-tax loss on discontinued operations of:
a. $150 million.
b. $166 million.
c. $51 million.
d. $67 million.
Answer:
d. $67 million.
Explanation:
The asset is not impaired because the fair value is higher than the book value. Therefore, the only operating loss of $67,000,000 can be reported.
Particulars Amount
Operating Loss(Jan 1 to 31 Dec 2021 $67,000,000
Before Tax loss on discontinued operation $67,000,000
Hence, Jamison would report a before-tax loss on discontinued operations of $67,000,000.
The accounts in the ledger of Ivanhoe Delivery Service contain the following balances on July 31, 2022.
Accounts Receivable $15,000
Prepaid Insurance $ 3,400
Accounts Payable 10,000
Service Revenue 17,300
Cash ?
Dividends 880
Equipment 59,550
Common Stock 40,190
Maintenance and Repairs Expense 3,758
Salaries and Wages Expense 8,628
Insurance Expense 720
Salaries and Wages Payable 990
Notes Payable (due 2025) 29,650
Retained Earnings (July 1, 2022) 6,400
Prepare trial balance
Answer:
Ivanhoe Delivery Service
Trial Balance
For the month ended July 31, 2022
debit credit
Cash $12,594
Accounts Receivable $15,000
Prepaid Insurance $3,400
Equipment $59,550
Accounts Payable $10,000
Salaries and Wages Payable $990
Notes Payable (due 2025) $29,650
Common Stock $40,190
Retained Earnings (July 1, 2022) $6,400
Service Revenue $17,300
Maintenance and Repairs Expense $3,758
Salaries and Wages Expense $8,628
Insurance Expense $720
Dividends $880
Totals $104,530 $104,530
Explanation:
cash = ($40,190 + $6,400 + $29,650 + $990 + $17,300 + $10,000) - ($15,000 + $3,400 + $880 + $59,550 + $3,758 + $8,628 + $720) = $104,530 - $91,936 = $12,594
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
A work group of 10 workers in a certain month produced 7200 units of output working 8 hr/day for 22 days in the month. Determine the labor productivity ratio using:
Units of output per worker-hour and per worker-month.
For each of these, determine the productivity index for the next month using the prior month as a base. Then, suppose that in the next month, the same work group produced 6800 units but, there were only 20 workdays in the month.
Answer:
The answer is below
Explanation:
Given that unit of output is 7200,
Working hours/day = 8hrs
Working days/month = 22 days
Hence,
a. units of output per worker-hour
=> LPR = 7200 ÷ (10 * 8 * 22)
=> 7200 ÷ 1760 = 4.091 units/wo-hr
b. units of output per worker-month
=> LPR = 7200 ÷ (10 * 1) = 720 units/wo-month
c. determine the productivity index for the next month using the prior month as a base.
Supposing that unit of output is 6800,
Working hours/day = 8hrs
Working days/month = 20 days
LPR = 6800 ÷ ( 10*8*20) =
=> 6800 ÷ 1600 = 4.25 units/wo-hr
Hence, LPI for (a) = 4.25 ÷ 4.091 = 1.039 = 103.9%
LPR = 6800 / (10*1) = 680 units/wo-month
Hence, LPI for (b) = 680 / 720 = 0.944 = 94.4%
Bryant leased equipment that had a retail cash selling price of $690,000 and a useful life of six years with no residual value. The lessor spent $575,000 to manufacture the equipment and used an implicit rate of 8% when calculating annual lease payments of $138,201 beginning January 1, the beginning of the lease. Lease payments will be made January 1 each year of the lease. Incremental costs of consummating the lease transaction incurred by the lessor were $19,500.
Required:
What is the effect of the lease on the lessor's earnings during the first year (ignore taxes)?
Answer:
$139,644
Explanation:
Calculation for the effect of the lease on the lessor's earnings during the first year
Effect on lessor's pretax earnings
Sales revenue 690,000
Less Cost of goods sold(575,000)
Less Selling expense(19,500)
Interest revenue 44,144
Income effect $139,644
Calculation for Interest revenue
Interest revenue=(8%*690,000)-(8%*$138,201)
Interest revenue =55,200-11,056
Interest revenue=44,144
Therefore the effect of the lease on the lessor's earnings during the first year will be $139,644
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
explain PPP in 300 words
ABC systems:_____.
a. highlight the different levels of activities.
b. will limit cost drivers to units of output.
c. will allocate costs based on the overall level of activity.
d. generally will undercost complicated or complex products.
Answer: highlight the different levels of activities.
Explanation:
The activity-based costing (ABC) system is an accounting method that is used by a company to calculate the total cost of activities that'll be utilized when making a product.
In the activity based costing system, costs are being assigned to every that is used during production. Also, the direct cost and the overhead costs are being considered. In ABC system, the different levels of activities are highlighted.
Universal Mines Inc. operates three mines in West Virginia. The ore from each mine is separated into two grades before it is shipped. The daily production capacities of the three mines, as well as their daily operating costs, are as follows: c/day Mine High-grade Ore, Low-grade Ore, Operating Cost Tons/day Tons/day in $/day 20,000 22,000 18,000 Mine 11 Mine III Universal has committed itself to deliver 54 tons of high-grade order and 65 tons of low-grade ore by the end of the week. Universal can run its mines seven days a week if required. Determine the number of days each mine should be operated during the upcoming week if Universal Mines is to fulfill its commitment at the minimum total cost. Round the answers to two decimal places.
a. The number of days Mine I should operate = _________days
b. The number of days Mine Il should operate = _________days
c. The number of days Mine III should operate = _________days
d. The total cost of the operation for next week = $ ________
Answer:
this is a cost minimization problem, but it is missing some numbers, so I looked for similar questions (see attached PDF):
minimization equation = 20x₁ + 22x₂ + 18x₃ (costs per ton)
where:
x₁ = mine I
x₂ = mine II
x₃ = mine III
the constraints are:
4x₁ + 6x₂ + x₃ ≥ 54 (high grade ore)
4x₁ + 4x₂ + 6x₃ ≥ 65 (low grade ore)
x₁, x₂, x₃ ≤ 7 (only 7 days per week)
using solver, the optimal solution is
2x₁, 7x₂, and 5x₃
a. The number of days Mine I should operate = 2 days
b. The number of days Mine Il should operate = 7 days
c. The number of days Mine III should operate = 5 days
d. The total cost of the operation for next week = $284,000