Answer:
You do not need an excel spreadsheet to calculate this, you need to use the the future value formula:
future value = present value x (1 + r)ⁿ
present value = $4,000
future value = $7,500
so, (1 + r)ⁿ = $7,500 / $4,000 = 1.875
now we replace r:
for 2%)
1.02ⁿ = 1.875
n = log 1.875 / log 1.02 = 31.74 years
for 4%)
1.04ⁿ = 1.875
n = log 1.875 / log 1.04 = 16.03 years
for 6%)
1.06ⁿ = 1.875
n = log 1.875 / log 1.06 = 10.79 years
for 8%)
1.08ⁿ = 1.875
n = log 1.875 / log 1.08 = 8.17 years
for 10%)
1.1ⁿ = 1.875
n = log 1.875 / log 1.1 = 6.6 years
The higher the interest rate, the shorter it will take for you account to increase in value and the shorter you will have to wait in order to buy your motorcycle.
Renata and Danuta would like to form a business providing take-out meals to homebound destitute residents of Las Vegas. The meals would be ordered from a menu provided by their company and prepared and delivered by Renata and Danuta. They hope to eventually have their business become international in scope. They will need to raise $100,000 to get their business running and will eventually have much greater capital needs. From the following choices, select the best form of business Renata and Danuta could adopt?
A. Nonprofit corporationB. Limited-liability companyC. SyndicateD. Joint venture
Answer: Non profit Corporation
Explanation:
The best form of business Renata and Danuta could adopt is a nonprofit corporation. It should be noted that a nonprofit corporation is a corporation that is being formed for educational, charitable, religious, or scientific purpose.
Since Renata and Danuta would like to form a business providing take-out meals to homebound destitute, this is a charitable purpose. A non-profit corporation can be a charity, research institute, organization, a church, school, volunteer services organization, etc.
Answer:
answer is A
a non profit corporation
Explanation:
a nonprofit organization that do not earn profits. the revenue that is earned is usually used for the buisness or for donations.
these types of businesses are tax exempt , that are for churches, charities, schools, religious events. Renata and Danuta are running non profit organizations
hope this helps!
Each of the following statements is justified by a fundamental quality or an enhancing of quality accounting. Match the letter next to each statement corresponding to the quality involved.
A. Comparability D. Consistency
B. Understandability E. Relevance
C. Verifiable F. Faithful representation
1. A company uses the same accounting principles from year to year.
2. Information that is free from error.
3. Information presented in a clear and concise fashion.
4. Information that makes a difference in a decision.
5. Information accurately depicts what really happened.
Answer:
Explanation:
1. A company uses the same accounting principles from year to year.(CONSISTENCY)
2. Information that is free from error.(VERIFIABLE)
3. Information presented in a clear and concise fashion.(UNDERSTANDABILITY)
4. Information that makes a difference in a decision.(RELEVANCE)
5. Information accurately depicts what really happened.(FAITHFUL REPRESENTATION)
To have a standard financial statement in accounting , there's are some qualities that are needed to put into consideration such as fundamental qualities as well as Enhancing quality of accounting. fundamental qualities are needed to obtain relevancy and reliability in preparing accounting statement.Enhancing quality of accounting are also to have
Comparability,Consistency, Understandability, Relevance, Verifiable
as well as Faithful representation
Cortina Company accumulates the following adjustment data at December 31. Indicate (1) the type of adjustment (prepaid expense, accrued revenue, and so on) and (2) the status of the accounts before adjustment (overstated or understated). (Enter your answers in alphabetical order.) Item (1) Type of Adjustment (2) Accounts Before Adjustment a. Supplies of $400 are on hand. Supplies account shows $1,600 balance. select the type of adjustment select the status of the accounts before adjustment select the status of the accounts before adjustment b. Services performed but unbilled total $700. select the type of adjustment select the status of the accounts before adjustment select the status of the accounts before adjustment c. Interest of $300 has accumulated on a note payable. select the type of adjustment select the status of the accounts before adjustment select the status of the accounts before adjustment d. Rent collected in advance totaling $1,100 has been earned.
Answer:
Cortina Company
Indication of the type of adjustment and the status of the accounts before the adjustment:
Type of adjustment (prepaid Status of the accounts before the
expense, accrued revenue, etc.) adjustment:
a. Usage adjustment Supplies Overstated by $1,200
b. Accrued Revenue Service Revenue understated by $700
c. Accrued Expense Interest Expense understated by $300
d. Earned Revenue Rent Revenue understated by $1,100
and Deferred Revenue overstated by
the same amount.
Explanation:
Cortina Company must recognize all revenue and expenses, whether cash has exchanged hands or not, provided they have been earned or incurred within the stated accounting period. This is in accordance with the accrual concept and the matching principle of generally accepted accounting principles.
3 sentences on why you would want to be a plumber
Answer:
I want to be a plumber because plumbing the toilets sound ____. The job is simple and ____ which means ill get it done. It also pays very well so I believe I can be a ______ plumber.
Explanation:
yes
The following questions practice these skills:
Draw a linear production possibilities frontier.
Draw a bowed production possibilities frontier.
Compute opportunity costs from a production possibilities frontier.
Identify feasible and infeasible and efficient and inefficient points from a production possibilities frontier.
Identify comparative and absolute advantage from a production possibilities frontier.
Describe trade based on comparative advantage.
Identify positive and normative statements.
Two important industries on the island of Bermuda are fishing and tourism. According to data from the World Resources Institute and the Bermuda Department of Statistics, in the year 2000 the 307 registered fishermen in Bermuda caught 286 metric tons of marine fish. And the 3,409 people employed by hotels produced 538,000 hotel stays (measured by the number of visitor arrivals). Suppose that this production point is efficient in production. Assume also that the opportunity cost of one additional metric ton of fish is 2,000 hotel stays and that this opportunity cost is constant (the opportunity cost does not change).
a. If all 307 registered fishermen were to be employed by hotels (in addition to the 3,409 people already working in hotels), how many hotel stays could Bermuda produce?
b. If all 3,409 hotel employees were to become fishermen (in addition to the 307 fishermen already working in the fishing industry), how many metric tons of fish could Bermuda produce?
c. Draw a production possibility frontier for Bermuda, with fish on the horizontal axis and hotel stays on the vcrtical axis, and label Bermuda’s actual production point for the year 2000.
Answer:
a. If all 307 registered fishermen were to be employed by hotels (in addition to the 3,409 people already working in hotels), how many hotel stays could Bermuda produce?
since the opportunity cost is constant, then if all 307 fishermen decided to become hotel workers, then the total number of hotel stays would be (286 tons of fish x 2,000 stays per ton) + 538,000 stays = 1,110,000 stays
b. If all 3,409 hotel employees were to become fishermen (in addition to the 307 fishermen already working in the fishing industry), how many metric tons of fish could Bermuda produce?
total number of fish caught = (538,000 stays / 2,000 tons per stay) + 286 tons of fish = 555 tons of fish caught
c. attached graph
For journal entries, indicate the letter of the explanation that most closely describes it in the space beside each entry. You can use letters more than once.
To record receipt of unearned revenue.
To record this period's earning of prior unearned revenue.
To record payment of an accrued expense.
To record receipt of an accrued revenue.
To record an accrued expense.
To record an accrued revenue.
To record this period's use of a prepaid expense.
To record payment of a prepaid expense.
To record this period's depreciation expense.
Explanation Journal entries Debit Credit
Insurance expense 1900
Prepaid Insurance 1900
Salaries payable 3900
Cash 3900
Prepaid Rent 3200
Cash 3200
Salaries expense 4900
Salaries payable 4900
Interest Receivable 1900
Interest Revenue 1900
Cash 3900
Accounts Receivable 3900
Cash 5900
Unearned Professional Fees 5900
Answer:
Explanation Journal entries Debit Credit
Insurance expense 1900
Prepaid Insurance 1900
To record this period's use of a prepaid expense.
Salaries payable 3900
Cash 3900
To record payment of an accrued expense.
Prepaid Rent 3200
Cash 3200
To record payment of a prepaid expense.
Salaries expense 4900
Salaries payable 4900
To record an accrued expense.
Interest Receivable 1900
Interest Revenue 1900
To record receipt of an accrued revenue.
Cash 3900
Accounts Receivable 3900
To record receipt of an accrued revenue.
Cash 5900
Unearned Professional Fees 5900
To record receipt of unearned revenue.
A risk analyst gives Oracle Corporation, the enterprise software and database management firm, a CAPM equity beta of 1.2. As of May 2011, the risk free rate is 4.0 percent, the market risk premium is 6%, the analyst is forecasting for Oracle to have EPS of $2.17 per share and P/E ratio to be 20, for the fiscal year ending May 31, 2012. The company is expected to pay $0.24 in dividends per share for the fiscal year.
The equity cost of capital for Oracle is:__________The value per share of equity for Oracle in May 2011 is:________
Answer:
Cost of equity = 11.20%, Value of Equity = $39.25
Explanation:
a. Cost of equity = Rf + B(Rm-Rf)
Cost of equity = 4% + 1.2(6%)
Cost of equity = 4% + 7.20%
Cost of equity = 11.20%
b. P/E ratio = 20
Market Price / EPS = 20
Market Price = EPS * 20
-->P1 = $2.17 * 20 = $43.40
DPS1= $0.24
Value of Equity = P1/Cost of Equity + DPS1/Cost of equity
Value of Equity = $43.40/1.1120 + $0.24/1.1120
Value of Equity = $39.03 + $0.22
Value of Equity = $39.25
An economy that has government collecting taxes and making regulations is called a
Answer:
If I recall it may be called Revenue.
Explanation:
If this is not the answer you were looking for, please don't hesitate to comment below so I can get back to you as soon as I can. Have a nice Day/Night! :)
Also, it will be greatly appreciated if you can take out your time and bless me with the brainliest button! :)
For each separate case below, follow the 3-step process for adjusting the accured expense account: Step 1: Determine what the current account balance equal. Step 2: Determine what the current account balance should equal. Step 3: Record adjusting journal entries for each of the following for year ended December 31. Assume no other adjusting entries are made during the year.
A. Salaries Payable. At year-end, salaries expense of $15,500 has been incurred by the company, but is not yet paid to employees.
B. Interest Payable. At its December 31 year-end, the company owes $250 of interest on a line-of-credit loan. That interest will not be paid until sometime in January of the next year.
C. Interest Payable. At its December 31 year-end, the company holds a mortgage payable that has incurred $875 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year.
Answer:
A. 1. Salaries Payable = $0
2. Salaries Payable should equal $15,500
3. Debit Salaries Expense $15,500
Credit Salaries Payable $15,500
To accrue unpaid salaries expense for the year.
B. 1. Interest Payable = $0
2. Interest Payable should equal $250
3. Debit Interest Expense $250
Credit Interest Payable $250
To accrue unpaid interest expense for the year.
C. 1. Interest Payable = $0
2. Interest Payable should equal $875
3. Debit Interest Expense $875
Credit Interest Payable $875
To accrue unpaid mortgage interest expense for the year.
Explanation:
Adjusting journal entries are used to recognize transactions and events that do not have any cash basis because they are required under the accrual basis of accounting. The accrual basis requires that transactions are recorded in the period they occur without reference to cash payment or receipt.
Sales and Cash Receipts Transactions
Sourk Distributors is a retail business. The following sales, returns, and cash receipts occurred during March 20--. There is an 8% sales tax.
1. Sale on account No. 33C to Donachie & Co., $1,700 plus sales tax.
3. Sale on account No. 33D to R. J. Kibubu, Inc., $2,190 plus sales tax.
5 Donachie & Co. returned merchandise from Sale No. 33C for a credit (Credit Memo No. 66), $40 plus sales tax.
7 Cash sales for the week were $3,140 plus sales tax.
10 Received payment from Donachie & Co. for Sale No. 33C less Credit Memo No. 66.
11 Sale on account No. 33E to Eck Bakery, $1,230 plus sales tax.
13 Received payment from R. J. Kibubu for Sale No. 33D.
14 Cash sales for the week were $4,100 plus sales tax.
16 Eck Bakery returned merchandise from Sale No. 33E for a credit (Credit Memo No. 67), $34 plus sales tax.
18 Sale on account No. 33F to R. J. Kibubu, Inc., $2,580 plus sales tax.
20 Received payment from Eck Bakery for Sale No. 33E less Credit Memo No. 67.
21 Cash sales for the week were $2,510 plus sales tax.
25 Sale on account No. 33G to Eck Bakery, $2,010 plus sales tax.
27 Sale on account No. 33H to Whitaker Group, $2,070 plus sales tax.
28 Cash sales for the week were $3,420 plus sales tax.
Required:
Record the transactions in the general journal.
Answer and Explanation:
Answer and explanation attached
A retail store manager instructed two new sales associates to greet customers quickly when they enter the store.On the first day the sales associates are working on the selling floor,one sales associate greets customers immediately after they enter the store,while the other associate greets customers after they have looked around for a minute or two.Which of the following risks incurred by describing services in words alone has led to the sales associates greeting customers at different time intervals?
A) Overcautious
B) Ostentation
C) Objectivity
D) Biased interpretation
E) Transformation
Answer:
D) Biased interpretation
Explanation:
The risk that is most likely the cause of this would be Biased Interpretation. This is basically when an individual takes a very random or common and takes it as being either negative or positive. This is most likely causing the sales associates to greet the customers at different intervals as they see opportunities differently. Some sales associates may see an opportunity of greeting a customer as negative while another may see it as positive. Therefore, only the one that sees it as positive will greet the customer, while the other will wait for another opportunity.
Prepare the Unadjusted Trial Balance Prepare the Unadjusted Trial Balance for Smart Touch Learning for December 31st. Check your spelling carefully and do not abbreviate. Enter the account names exactly as provided in the Chart of Accounts. Enter the accounts in the order of Assets, Liabilities, Equity, Revenues, and Expenses. ACCOUNT Accounts Receivable 800 Cash 41,140 Common Stock 36,400 Dividends 4,700 Furniture 13,900 Office Supplies 580 Prepaid Insurance 1,800 Rent Expense 2,300 Salaries Expense 2,900 Service Revenue 27,800 Unearned Revenue 4,200 Utilities Expense 280
Answer and Explanation:
The preparation of the unadjusted trial balance is shown below;
Particulars Debit Credit
Cash $41,140
Account receivable $800
Office supplies $580
Prepaid insurance $1,800
Furniture $13,900
Unearned revenue $4,200
Common Stock $36,400
Dividend $4,700
Service revenue $27,800
Rent expense $2,300
Salaries expense $2,900
Utilities expense $280
Total $68,400 $68,400
Assume the market for wine is functioning at its equilibrium. For each of the following situations, say whether the new market outcome will be efficient or inefficient.
a. A new report shows that wine is good for heart health. Efficient
b. The government sets a minimum price for wine, which increases the current price. Inefficient
c. An unexpected late frost ruins large crops of grapes. Inefficient
d. Grape pickers demand higher wages, increasing the price of wine.
Answer:
Efficient
Inefficient
Efficient
Efficient
Explanation:
a. As a result as the report, the demand for wine would increase. As a result, a new equilibrium would be established
b. When the government sets a minimum price for a good or service, it is known as a price floor. Setting a minimum price would lead to the market moving away from equilibrium. The supply of wine would exceed the demand for wine
c, The damage of grapes would lead to a fall in supply. A new equilibrium would be established
d. An increase in the price of wine would lead to a reduction in the demand for wine. A new equilibrium would be established
Morgan (age 45) is single and provides more than 50% of the support of Tammy (a family friend), Jen (a niece, age 18), and Jerold (a nephew, age 18). Both Tammy and Jen live with Morgan, but Jerold (a French citizen) lives in Canada. Morgan earns a salary of $95,000, contributes $5,000 to a traditional IRA, and receives sales proceeds of $15,000 for an RV that cost $60,000 and was used for vacations. She has $8,200 in itemized deductions.
A. Morgan's taxable income is $____.
B. Using the Tax Rate Schedules (click here), tax liability for Morgan is $____for 2019.
C. Compute Morgan's dependent tax credit.
Answer:
RV is a personal asset, no loss on sale of personal asset is deductible and Morgan is eligible for filling as Head of Household
a. Morgan's Taxable Income
Salary $95,000
IRA Deduction $5,000
AGI $90,000
Greater of standard and itemized deduction $18,350
Taxable Income $71,650
b. Tax Liability for Morgan
= $6,065 + ($71,650 - $52,850)*22%
= $6,065 + ($18,800)*22%
= $6,065 + $4,136
= $10,201
Tax Liability for Morgan is $10,201 for 2019
c. Only 2 out of 3 dependent quality for Dependent Credit, therefore, Morgan's dependent tax credit = $500 * 2 = $1,000
Recording sales, returns, and discounts taken LO P2
Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method.
Apr. 1 Sold merchandise for $3,800, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $2,280.
Apr. 4 The customer in the April 1 sale returned $460 of merchandise for full credit. The merchandise, which had cost $276, is returned to inventory.
Apr. 8 Sold merchandise for $1,400, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $980.
Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4.
Answer:
Entries are given
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
DEBIT CREDIT
April 01
Account Receivable $3,800
Sales $3,800
Apr - 01
Cost of Goods Sold $2,280
Merchandise $2,280
Apr - 04
Sales Return $460
Account Receivable $460
Apr - 04
Merchandise $276
Cost of Goods Sold $276
Apr - 08
Account Receivable $1,400
Sales $1,400
Apr - 08
Cost of Goods Sold $980
Merchandise $980
Apr - 11
Cash $3,340
Account Receivable $3,340
become aware of the various institutions depa and center present within the school environment or the immediate community
Answer:
This represents the involvement of parents in their children's education
Explanation:
When parents worry about getting to know the institutions related to the school environment that their children attend, they show an involvement in education, which is very beneficial both for the development of children and communities, as it allows the recognition of factors favorable to academic construction children, being able to supervise and provide important advice about these institutions, but also to work for the benefit of education.
Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes:
• Purchased $605,700 of materials.
• Used $520,900 of direct materials in production.
• Incurred $448,000 of direct labor wages.
• Applied factory overhead at a rate of 80% of direct labor cost.
• Transferred $1,274,200 of work in process to finished goods.
• Sold goods with a cost of $1,211,400.
• Revenues earned by selling bikes, $2,168,400.
• Incurred $520,900 of selling expenses.
• Incurred $193,800 of administrative expenses.
a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inventory method.
Rushmore Biking Inc.
Income Statement
For the Month Ended February 28
Selling and administrative expenses:
Total selling and administrative expenses
b. Determine the inventory balances on February 28, the end of the first month of operations,
Materials inventory, February 28
Work in process inventory, February 28
Finished goods inventory, February 28
Get more help from Chegg
Answer:
a.Net Income $ 242,300
Materials inventory, February 28= $ 84,800
Work in process inventory, February 28= $ 53,100
Finished goods inventory, February 28= $ 62800
Explanation:
Rushmore Biking Inc.
Income Statement
For the Month of February
Debit Credit
Sales Revenue $ 2,168,400
Direct Materials $520,900
Direct Labor $448,000
Applied factory overhead $ 358,400
Total Manufacturing Costs $ 1327,300
Less Closing Work In Process $ 53,100
Cost Of Goods Manufactured $1,274,200
Less Finished Goods Ending Inventory $ 62800
Cost Of Goods Sold ($1,211,400)
Gross Profit $ 957,000
Less
Selling Expenses $520,900
Administrative Expenses $193,800 ( $ 714,700)
Net Income $ 242,300
b.
Materials inventory, February 28= Purchased Less Used
= $605,700- $520,900 = $ 84,800
Work in process inventory, February 28= Total Manufacturing Costs Less Cost Of Goods Manufactured
$ 1327,300-$1,274,200= $ 53,100
Finished goods inventory, February 28 = Cost Of Goods Manufactured Less Cost Of Goods Sold
$1,274,200 - $1,211,400= $ 62800
Suppose someone offered to sell you a note calling for the payment of $1,000 15 months from today. They offer to sell it to you for $850. You have $850 in a bank time deposit which pays a 7% effective annual interest rate (compounding), and you plan to leave the money in the bank unless you buy the note. The note is not risky--you are sure it will be paid on schedule. Should you buy the note?
Check the decision in three ways:
a. By comparing your future value if you buy the note versus leaving your money in the bank.
b. By comparing the PV of the note with your current bank account.
c. By comparing the EFF% on the note with that of the bank account.
Answer:
1. The future value = 1000
Now we are to calculate the future value of bank savings
= 850x(1+0.07)^15/12
= 850x1.07^1.25
=$925.0147
So it is better to buy note.
2. Present value = 1000/(1.07^15/12)
= 1000/1.08825252622
= $918.9
For one to get same amount of money then savings would have to be increased. So we choose note
3. EAR = EFF%
= 1000/(850^12/15)-1
= 13.88%
We have EAR on bank as 7% and that of note as 13.88%. note is higher so we choose note
Bank's Balance Sheet
Assets Liabilities and Owners' Equity
Reserves $175 Deposits $1,400
Loans $700 Debt $225
Securities $875 Capital (owners' equity) $125
Suppose the owners of the bank contribute an additional $200 from their own funds and use it to buy securities in the name of the bank. This would increase the securities account andincrease thedebt account. This would also bring the leverage ratio from its initial value of14.00 to a new value of . Which of the following do bankers take into account when determining how to allocate their assets?
A. The return on each asset
B. The total value of liabilities
C. The size of the monetary base
Answer:
1. increase securities , increase owners equity
2. Leverage ratio is 5.2
3. A. The return on each asset
Explanation:
1. If the bank owner decide to imcrease assets by buying new securities through additional funds from them, then securities assets increases by $200 and owners equity increases by $ 200 to balance the balance sheet
2. Leverage ratio= total assets divided by owners equity
= 1950/375= 5.2 ( owners equity increases by $200 to make $375)
3. Banks consider return on assets to allocate asset resources because they weigh risk and return and allocate to resources on the basis of greatest optimal risk return combination
1. The investment of an additional $200 by the owners of the bank and the purchase of securities in the name of the bank would increase the securities account and increase the Capital account by $200, respectively.
2. This additional investment would also bring the leverage ratio from its initial value of 14.00 ($1,750/$125) to a new value of 6.00 ($1,950/$325).
What is the bank's leverage ratio?The leverage ratio is computed as the ratio of the total assets to the equity capital.
Thus, the old leverage ratio is 14 ($1,750/$125) just as the new leverage ratio is 6 ($1,950/$325).
3. The factor that bankers take into account when determining how to allocate their assets is A. The return on each asset.
What is the return on assets?The return on assets is a financial measure indicating the profitability of an asset relative to other assets.
Data and Calculations:Bank's Balance Sheet
Assets Liabilities and Owners' Equity
Reserves $175 Deposits $1,400
Loans $700 Debt $225
Securities $875 Capital (owners' equity) $125
Total $1,750 Total $1,750
Bank's New Balance Sheet
Assets Liabilities and Owners' Equity
Reserves $175 Deposits $1,400
Loans $700 Debt $225
Securities $1,075 Capital (owners' equity) $325
Total $1,950 Total $1,950
Thus, the factor that bankers consider in determining the allocation of assets is Option A.
Learn more about the bank's leverage ratio at https://brainly.com/question/14002613
Rockeagle Corporation began fiscal Year 2 with the following balances in its inventory accounts.
Raw Materials $30,000
Work in Process 45,000
Finished Goods 14,000
During the accounting period, Rockeagle purchased $125,000 of raw materials and issued $124,000 of materials to the production department. Direct labor costs for the period amounted to $162,000, and manufacturing overhead of $24,000 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $306,000 to produce were completed and transferred to Finished Goods Inventory. Goods costing $301,000 were sold for $400,000 during the period. Selling and administrative expenses amounted to $36,000. Required:
1. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet.
2. Prepare a schedule of cost of goods manufactured and sold and an income statement.
ROCKEAGLE CORPORATION
Schedule of cost of goods manufactured and sold
For the year ended 2018
Beginning raw materials inventory
Purchases
Raw materials available 0
Ending raw materials inventory
Raw materials used 0
Labor
Manufacturing overhead
Total manufacturing costs 0
Beginning work in process inventory
Total work in process inventory 0
Ending work in process inventory
Cost of goods manufactured 0
Beginning finished goods inventory
Goods available for sale 0
Ending finished goods inventory
Cost of goods sold $0
Answer:
I solved this manually. please try to follow up with the calculations.
ending inventory balance of
a. Raw material = $31000
b. work in progress = $49000
c. finished goods = $19000
Explanation:
for raw material:-
balance at beginning 30,000 + purchase of 125000 - issue of 124000
= 30000+125000-124000
= 31,000
the ending balance is 31000
for work in progress inventory:-
beginning inventory 45000 + 124000 current cost of issued material + 162000 direct wages + overhead 24000
= 45000+124000+162000+24000
= $355000
we subtract 306000 costs of goods manufactured from this value
= $355000-306000
= 49000 wip ending balance
for finished goods inventory:-
begining inventory 14000 + 306000 costs of goods manufactured - 301000 costs of goods sold
= 14000+306000-301000
= $19000
2. schedule for costs of goods manufactured:-
beginning inventory 30000 + purchase 125000 - ending inventory
= 30000+125000-31000
= 124000
124,000+162000 labour cost+24000
total cost of manufacturing = 310000
310000+begining wip of 45,000 - ending inventory of 49000
= 310000+45000-49000
= 306,000 costs of goods manufactured
we add this value to beginning inventory of finished goods-ending inventory
= 306000+14000-19000
= $301000 costs of goods sold
3. income statement:-
revenue of 400000 - 301000 costs of good sold = 99000
99000-36000 selling expenses
= $63000
Flint Hills, Inc. has prepared a year-end 2021 trial balance. Certain accounts in the trial balance do not reflect all activities that have occurred. The Supplies account shows a balance of $820, but a count of supplies reveals only $350 on hand. Flint Hills initially records the payments of all insurance premiums as expenses. The trial balance shows a balance of $560 in Insurance expense. A review of insurance policies reveals that $195 of insurance is unexpired. Flint Hills employees work Monday through Friday, and salaries of $3,800 per week are paid each Friday. Flint Hills' year-end falls on Tuesday. On December 31, 2021, Flint Hills received a utility bill for December electricity usage of $330 that will be paid in early January of 2022.
Required: Prepare adjusting journal entries, as needed, for the above items. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. The Supplies account shows a balance of $680, but a count of supplies reveals only $280 on hand.
2. Flint Hills initially records the payments of all insurance premiums as expenses. The trial balance shows a balance of $490 in Insurance expense. A review of insurance policies reveals that $160 of insurance is unexpired.
3. Flint Hills employees work Monday through Friday, and salaries of $3,100 per week are paid each Friday. Flint Hills' year-end falls on Tuesday.
4. On December 31, 2018, Flint Hills received a utility bill for December electricity usage of $260 that will be paid in early January of 2019.
Event General Journal Debit Credit
1
2
3
4
Answer to Question 1
1. Dr Supplies expense 470
Cr Supplies 470
2. Dr Prepaid insurance 195
Cr Insurance expense 195
3. Dr Salaries expense 1,520
Cr Salaries payable 1,520
4. Dr Utilities expense 330
Cr Utilities payable 330
Answer to Question 2
1. Dr Supplies expense 400
Cr Supplies 400
2.Dr Prepaid insurance 160
Cr Insurance expense 160
3. Dr Salaries expense 1,240
Cr Salaries payable 1,240
4. Dr Utilities expense 260
Cr Utilities payable 260
Explanation:
QUESTION 1
Preparation of Journal entries
1. Based on the information given we were told that the company Supplies account shows a balance amount of $820 while the count of supplies shows only the amount of $350 on hand which means that the Journal entry will be:
Dr Supplies expense 470
Cr Supplies 470
(820-350)
2. Based on the information given we were told that the company trial balance reveal a balance of the amount of $560 in Insurance expense in which a review of the insurance policies shows that the amount $195 of insurance is unexpired which means that the Journal entry will be:
Dr Prepaid insurance 195
Cr Insurance expense 195
3. Based on the information given we were told that the company employees work from Monday through Friday in which salaries of the amount of $3,800 per week are paid each Friday while the company year-end falls on Tuesday which means that the Journal entry will be:
Dr Salaries expense 1,520
Cr Salaries payable 1,520
[(3,800÷5days)*2]
4. Based on the information given we were told that the company received a utility bill of the amount of $330 in December that will be paid in early January of 2022 which means that the Journal entry will be:
Dr Utilities expense 330
Cr Utilities payable 330
QUESTION 2
1. Based on the information given we were told that the company Supplies account shows a balance amount of $680 while the count of supplies shows only the amount of $280 on hand which means that the Journal entry will be:
Dr Supplies expense 400
Cr Supplies 400
(680-280)
2. Based on the information given we were told that the company trial balance reveal a balance of the amount of $490 in Insurance expense in which a review of the insurance policies shows that the amount $160 of insurance is unexpired which means that the Journal entry will be:
Dr Prepaid insurance 160
Cr Insurance expense 160
3. Based on the information given we were told that the company employees work from Monday through Friday in which salaries of the amount of $3,100 per week are paid each Friday while the company year-end falls on Tuesday which means that the Journal entry will be:
Dr Salaries expense 1,240
Cr Salaries payable 1,240
[(3,100÷5days)*2]
4. Based on the information given we were told that the company received a utility bill of the amount of $260 in December that will be paid in early January of 2022 which means that the Journal entry will be:
Dr Utilities expense 260
Cr Utilities payable 260
Presented below is information for Pharoah Company for the month of January 2017.
Cost of goods sold $204,700 Rent expense $34,200
Freight-out 9,600 Sales discounts 8,200
Insurance expense 13,400 Sales returns and allowances 19,300
Salaries and wages expense 63,300 Sales revenue 396,000
Income tax expense 5,400 Other comprehensive income (net of $400 tax) 2,000
Required:
Prepare an income statement using the multi-step format.
Answer:
Pharaoh Company
Income Statement
For the month ended January 31, 2017
Sales $390,000
Sales discounts ($8,200)Sales returns and allowances ($19,300) ($27,500)Net sales $362,500
Cost of goods sold ($204,700)
Gross profit $157,800
Operating expenses:
Selling expense
Salaries and wages expense ($63,300)Rent expense ($34,200 )Insurance expense ($13,400)Freight-out ($9,600) ($120,500)Operating income $37,300
Income tax expense (5,400)
Net operating income $31,900
Other comprehensive income (net of $400 tax) $2,000
Net income $33,900
An assisted-living facility provides services in the form of residential space, meals, and other occupant assistance (OOA) to its occupants. The facility currently uses a traditional cost accounting system that charges each occupant a daily rate equal to the facility’s annual cost of providing residential space, meals, and OOA divided by total occupant days. However, an activity-based costing (ABC) analysis has revealed that occupants’ use of OOA varies substantially. This analysis determined that occupants could be grouped into three categories (low, moderate, and high usage of OOA) and that the activity driver of OOA should be nursing hours. The driver of the residential space and meals is occupant days. The following quantitative information was also provided: Annual Annual Occupant Category Occupant Days Nursing Hours Low usage 36,000 90,000 Medium usage 18,000 90,000 High usage 6,000 120,000 60,000 300,000 The total annual cost of OOA was $7.5 million, and the total annual cost of providing residential space and meals was $7.2 million. Accordingly, the ABC analysis indicates that the daily costing rate for providing residential space, meals, and OOA should be:__________
Answer:
total cost for:
low usage category = $6,570,000medium usage category = $4,410,000high usage category = $3,720,000Explanation:
occupant category annual occupant days annual nursing hours
Low usage 36,000 90,000
Medium usage 18,000 90,000
High usage 6,000 120,000
Total 60,000 300,000
using ABC costing, the rate per occupant day = $7,200,000 / 60,000 = $120 per day
using ABC costing, the rate per nursing hour = $7,500,000 / 300,000 = $25 per nursing hour
total cost for:
low usage category = (36,000 x $120) + (90,000 x $25) = $6,570,000
medium usage category = (18,000 x $120) + (90,000 x $25) = $4,410,000
high usage category = (6,000 x $120) + (120,000 x $25) = $3,720,000
Plastic Company purchased 100 percent of Spoon Company's voting common stock for $666,000 on January 1, 20X4. At that date, Spoon reported assets of $697,000 and liabilities of $241,000. The book values and fair values of Spoon's assets were equal except for land, which had a fair value $116,000 more than book value, and equipment, which had a fair value $94,000 more than book value. The remaining economic life of all depreciable assets at January 1, 20X4, was ten years. Spoon reported net income of $78,000 and paid dividends of $53,000 in 20X4.
Required:
Compute the amount of investment income to be reported by Plastic using the equity method for 20X4.
Answer: $68,600
Explanation:
Investment Income using Equity method = Plastic company Share in income of Spoon company - Depreciation on Assets
Plastic Company share in Income of Spoon Company = 100% * 78,000 = $78,000
Land cannot be depreciated so only Equipment will be depreciated.
= 94,000/10 years
= $9,400
Investment Income using Equity method = 78,000 - 9,400 = $68,600
One approach to understanding corruption perceptions is to compare information across a variety of countries. Your company has had operations in South America for some time. However, there has not been an internal evaluation of perceived regional corruption to date. Therefore, you have been asked to provide insight on this topic for each country in South America. Based on an annual corruption perceptions index, develop a brief report and recommendations for the entire company.
Explanation:
A major problem in investing in the countries of South America are the problems arising from corruption, political instability and bureaucratization.
There are also many positive points that make large companies operate in such countries, such as Brazil, for example, which is a large country with enormous potential for consumption and also local and government incentives for setting international companies in the country.
However, it is essential that companies operate in these countries having knowledge of the real local situation in terms of the main problems occurring in the country, such as corruption, which can lead to significant problems for the company's business.
It is important, therefore, that there is an accurate internal control over the businesses and the corruption-related indexes and an active and regular monitoring of data essential to the business.
It is also important to have policies and an internal culture aimed at maintaining ethical values, so that the company is supported by positive and ethical values that will lead to a good positioning in the market.
The most recent financial statements for Summer Tyme, Inc., are shown here:______.
Income Statement Balance Sheet
Sales $3,700 Current assets $4,200 Current liabilities $970
Costs 1,800 Fixed assets 5,700 Long-term debt 3,500
Taxable
income $1,900 Equity 5,430
Taxes (34%) 646 Total $9,900 Total $9,900
Net income $1,254
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 50 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 25 percent.
Required:
What is the external financing needed? (Do not round your intermediate calculations.)
EFN = needed new long-term debt and/or external equity
Answer: $1,448.75
Explanation:
Sales are to increase by 25% along with Assets, costs and current liabilities.
Sales (3,700 * 1.25) $4,625
Less: Costs ( 1,800 * 1.25) $2,250
Taxable Income $2,375
Tax (2,375 * 34%) $807.50
Net Income $1,567.50
Addition to retained earnings = Net Income - Dividends
= 1,567.50 - ( 1,567.50 * 50%)
= $783.75
Equity = 5,430 + 783.75 = $6,213.75
Assets = 9,900 * 1.25 = $12,375
Total Liability = Long term debt + Current liability
= 3,500 + (970 * 1.25)
= $4,712.50
Assets = Liability + Equity
12,375 ≠ 4,712.50 + 6,213.75
External financing needed = 12,375 - 4,712.50 - 6,213.75
= $1,448.75
Ajax Beverages holds 40% of the stock of Bubbly Bottler, acquired at a cost equal to 40% of Bubbly's book value at the time of purchase. This is a significant influence investment. At the start of 2021, Ajax reports the investment at a balance of $100,000. In 2021, Bubbly reports net income of $1,000 and $50 in other comprehensive income. Bubbly pays no dividends in 2021. The market value of Ajax's investment in Bubbly stock increases by $500 during 2021.
At what amount does Ajax report the investment at the end of 2021?
a. $100,500
b. $100,420
c. $100,400
d. $100,450
Answer:
b. $100,420
Explanation:
Amount paid for investment $100,000
Add: Share of net income $400
($1000*40%)
Add: Share of other comprehensive income $20
($50*40%)
Investment at the end of 2021 $100,420
Cook Co. reports the following information for the current year:
Saper Sandpaper $ 17,000
Direct labor 680,000
Small tools 100,000
Materials inventory, Jan 1 120,000
Materials inventory, Dec 31 86,000
Materials purchased 980,000
Machine helpers’ salaries 86,000
Finished Goods, Jan 1 210,000
Finished Goods, Dec 31 400,000
Sales 4,000,000
Leasing costs, plant 120,000
Work-in-process, Jan 1 30,000
Work-in-process, Dec 31 20,000
Depreciation, plant 70,000
Sales Commissions 200,000
Property taxes, plant 10,000
Insurance, factory equipment 5,000
Sales salaries 180,000
Advertising costs 150,000
Office administration costs 250,000
Units completed 82,000
Compute the Net Income (loss) assuming that Cook Co. is in the 30% tax bracket?
a) $1,454,600
b) $1,431,000
c) $1,298,000
d) $908,600
Answer:
Cook Co.
Net Income
d) $908,600
Explanation:
a) Data and Calculations:
Cook Co. Information for the current year:
Materials inventory, Jan 1 120,000
Materials purchased 980,000
Materials inventory, Dec 31 86,000
Materials used 1,014,000
Work-in-process, Jan 1 30,000
Materials used 1,014,000
Direct labor 680,000
Total overhead costs 408,000
Work-in-process, Dec 31 (20,000 )
Cost of production $2,112,000
Finished Goods, Jan 1 210,000
Cost of production 2,112,000
Finished Goods, Dec 31 (400,000 )
Cost of Goods Sold $1,922,000
Manufacturing overhead costs:
Saper Sandpaper $ 17,000
Machine helpers’ salaries 86,000
Small tools 100,000
Leasing costs, plant 120,000
Depreciation, plant 70,000
Property taxes, plant 10,000
Insurance, factory equipment 5,000
Total overhead costs $408,000
Sales Commissions 200,000
Sales salaries 180,000
Advertising costs 150,000
Office administration costs 250,000
Total expenses $780,000
Sales 4,000,000
Cost of Goods Sold $1,922,000
Gross profit $2,078,000
Less expenses 780,000
Profit before tax 1,298,000
Income Tax (30%) 389,400
Net Income $908,000
Suppose the government imposes a tax of 10 percent on the first $20,000 of income, 20 percent on the next 40,000 of income and 30 percent on income above $60,000. For a person whose income is $90,000, the tax liability is _________ and the marginal tax rate is __________.
Answer:
For a person whose income is $90,000, the tax liability is $9,000 and the marginal tax rate is 30%.
Explanation:
total tax liability for someone earning $90,000:
$20,000 x 10% = $2,000
$40,000 x 20% = $8,000
$30,000 x 30% = $9,000
total tax liability = $19,000
A taxpayer's marginal tax rate, refers to the rate at which every additional dollar of income will be taxed.
Broomhilda manufactures broomsticks for her fellow witch (and wizard) friends. Broomhilda uses a job order cost system and applies overhead to production on the basis of direct labor cost. On September 1, Job 50 (a super deluxe broom complete with a separate sleep space and shower area as well as an espresso machine) was the only job in process. The costs incurred prior to September on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of September 1, Job 49 (a broom shaped like a cat with some extra cargo space for all the cats) had been completed at a cost of $90,000 and was part of finished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account. During the month of September, Broomhilda began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $122,000 and $158,000, respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $90,000 on account.
2. Incurred manufacturing overhead costs as follows: indirect materials $17,000 (including broom polish and specially crafted scissors to trim stray twigs), indirect labor $20,000 (Hansel and Gretel clean the shop and run errands for the elves), depreciation expense on equipment $12,000 (Broomhilda has multiple molding stations for each broom she creates), and various other manufacturing overhead costs on account $16,000.
3. Assigned direct materials and direct labor to jobs as follows:
Job no. Direct Materials Direct Labor
50 10,000 5,000
51 39,000 25,000
52 30,000 20,000
Required:
a. Calculate the predetermined overhead rate for September, assuming Broomhilda estimates total manufacturing overhead costs of $840,000 and direct labor costs of $700,000 for September.
b. Open job cost sheets for Jobs 50, 51, and 52. Enter the September 1 balances on the job cost sheet for Job 50.
c. Prepare the journal entries to record the purchase of raw materials, and the manufacturing overhead costs incurred during the month of March.
d. Prepare the summary journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning overhead costs, use the overhead rate calculated in (1). Post all costs to the job cost sheets as necessary.
e. Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month.
f. Prepare the journal entry (or entries) to record the sale of any job(s) during the month.
g. What is the balance in the Finished Goods Inventory account at the end of the month? What job(s) does this balance consist of? 8. What is the amount of over- or underapplied overhead? Prepare the journal entry to close this to Cost of Goods Sold
Answer:
Broomhilda
a. Predetermined overhead rate = overhead costs/direct labor costs
= $840,000/$700,000
= $1.20 per direct labor cost
b. Job Cost Sheets for Job 50 Job 51 Job 52
Beginning balances:
Direct materials $20,000
Direct labor $12,000
Manufacturing overhead $16,000
c. Journal Entries for the purchase of raw materials and manufacturing overhead costs:
Debit Raw materials $90,000
Credit Accounts Payable $90,000
To record the purchase of raw materials on account.
Debit Manufacturing overhead $65,000
Credit Raw materials $17,000
Credit Wages $20,000
Credit Depreciation expense $12,000
To record the manufacturing overhead incurred.
d. Debit Job 50 $21,000
Credit Raw materials $10,000
Credit Direct labor $5,000
Credit Manufacturing overhead $6,000
To record the assignment of direct materials, direct labor, and manufacturing overhead costs to Job 50.
Debit Job 51 $94,000
Credit Raw materials $39,000
Credit Direct labor $25,000
Credit Manufacturing overhead $30,000
To record the assignment of direct materials, direct labor, and manufacturing overhead costs to Job 51
Debit Job 52 $74,000
Credit Raw materials $30,000
Credit Direct labor $20,000
Credit Manufacturing overhead $24,000
To record the assignment of direct materials, direct labor, and manufacturing overhead costs to Job 52
e. Job Cost Sheets for Job 50 Job 51 Job 52
Beginning balances:
Direct materials $20,000
Direct labor $12,000
Manufacturing overhead $16,000
Direct materials $10,000 $39,000 $30,000
Direct labor $5,000 $25,000 $20,000
Manufacturing overhead $6,000 $30,000 $24,000
Total $69,000 $94,000
f. Debit Accounts Receivable $280,000
Credit Sales Revenue $280,000
To record the sale of goods (Jobs 49 and 50 for $122,000 and $158,000, respectively).
Debit Cost of Goods Sold $159,000
Credit Job 49 $90,000
Credit Job 50 $69,000
To record the cost of goods sold for Jobs 49 and 50.
g. Finished Goods Inventory balance = $94,000
This balance consists of Raw materials $39,000, Direct labor $25,000, and Manufacturing overhead $30,000 for Job 51.
h. The amount of over-or underapplied overhead:
Overhead incurred = $65,000
Overhead applied = $60,000
Underapplied = $5,000
Debit Cost of Goods Sold $5,000
Credit Manufacturing overhead $5,000
To close the underapplied overhead to the cost of goods sold.
Explanation:
Jobs 50 costs prior to September:
direct materials $20,000,
direct labor $12,000, and
manufacturing overhead $16,000
Total costs so far = $$48,000
Job 49 completed at a cost of $90,000
Beginning balance of Raw Materials Inventory = $15,000
Started Jobs 51 and 52, completed Jobs 50 and 51
Sold Jobs 49 and 50 on account for $122,000 and $158,000, respectively.
Additional events:
Raw materials purchased on account = $90,000
Manufacturing overhead incurred:
indirect materials $17,000
indirect labor $20,000
depreciation expense on equipment $12,000
Various manufacturing overhead = $16,000
Total = $65,000
Assignment of direct materials and direct labor to jobs:
Job no. Direct Materials Direct Labor Manufacturing overhead
50 10,000 5,000 $6,000
51 39,000 25,000 $30,000
52 30,000 20,000 $24,000
Estimated total manufacturing overhead costs = $840,000
Estimated direct labor costs = $700,000
Predetermined overhead rate = overhead costs/direct labor costs
= $840,000/$700,000
= $1.20 per direct labor cost