Answer:
Joint Tenancy
Explanation:
Each tenant was given an equal share.
The conveyance deed was completed on a specific date passing all the land fairly to all tenants.
The Hera, Aphrodite, Athena and Ares also bear the title of Mutual Tenancy as Zeus transmitted Mount Olympus to them.
Therefore the correct option is Joint Tenancy and the same is to be considered
Summary: With 250,000 employees in 19 countries, Aramark wanted to motivate its employees who clean airplanes for Delta and Southwest Airlines. Turnover of the low-paid, largely immigrant staff was high while morale was low. Wallets and other valuables left on planes disappeared. After 5 years of efforts to increase motivation, revenue rose from $5 million to $14 million. 1. What motivation theories apply to the workers at Aramark? 2. If you were the manager of these employees, what would you do to motivate them? Be honest regarding your personal management style and beliefs rather than trying to be like Roy Pelaez. 3. What are some possible barriers to the effectiveness of your motivation ideas? What could you do to overcome them?
Answer:
Explanation:
(A)
What motivation theory applies to the workers at Aramark?
The workers should be motivated with payments for the return of valuables forgotten in the aircraft.
(B)
To motivate them, offer them a salary increase
(C)
Some possible barriers to the effectiveness of these motivation ideas are gluttony (depending on individual worker), a period of stiff or falling profit (which will hinder the smooth running of the new benefit policies), change of management.
(D)
What could you do, to overcome them?
To ensure that workers do not still steal forgotten valuables, place a check or supervision on them.
To ensure the profit level is maintained or increased, make sure the workers do not relent in their duties. Sometimes, more benefits make workers relax more.
An elderly investor has a short-term investment time horizon, is very concerned about loss of liquidity and is very risk averse. Your main concern when making a recommendation to this client is:
Answer:
Preservation of Capital
Explanation:
In a scenario such as the one described in the question, the main recommendation to the client should be Preservation of Capital. Meaning that the primary goal that the client should look towards is preventing any loss in a portfolio, this is usually done by investing in the safest short-term instruments, such as Treasury bills and certificates of deposit, and staying away from assets that have more risk and have the possibility of becoming a loss.
the average rate of the 36 children in the group was 55 kgs children of average weight 53 cages left the group was the what new average weight of group in kg
Complete Question:
The average weight of the 36 children in the group was 55 kgs. 5 children of average weight 53 kgs left the group. What was the new average weight of the group in kg?
Answer:
The new average weight of the group = 1,715/31 = 55.32 kgs
Explanation:
Average weight of 36 children = 55 kgs
Total weight of 36 children = 1,980 (36 * 55) kgs
Average weight of 5 children = 53 kgs
Total weight of 5 children = 265 (53 * 5) kgs
When 5 children of 53 kgs average weight left the group,
the remaining 31 children (36 - 5) had total weight = 1,715 (1,980 - 265)
Therefore, the new average weight for 31 children at a total of 1,715, will be
= 1,715/31
= 55.32 kgs
Average rate is considered as a single rate that applies to property in multiple locations and is based on a weighted average of the dweller rates for each site.
Given Information:
Average weight=55 kgsNumber of children=36Average weight of 36 children = 55 kgs
Total weight of 36 children = 1,980 (36 * 55) kgs
Average weight of 5 children = 53 kgs
Total weight of 5 children = 265 (53 * 5) kgs
When 5 children of 53 kgs average weight left the group, the remaining 31 children (36 - 5) had total weight = 1,715 (1,980 - 265)
Therefore, the new average weight for 31 children at a total of 1,715, will be
= 1,715/31
= 55.32 kgs
To know more about average weight, refer to the link:
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"Jaymes Corporation produces high-performance rotors. It expects to produce 78,000 rotors in the coming year. It has invested $12,566,667 to produce rotors. The company has a required return on investment of 18%. What is its ROI per unit
Answer:
$29
Explanation:
The computation of return on investment per unit is shown below:-
Return on investment = Total Investment × Required Rate on Investment
= $12,566,667 × 18%
= $2,262,000.06
Return in investment per unit = Required ROI ÷ Total Rotors
= $2,262,000.06 ÷ 78,000
= $29
Therefore for computing the return on investment we simply applied the above formula.
A project management office requiring compliance with standards and procedures that have been adopted is best described as a ________ form of PMO. Authoritative Directive Supportive Controlling
Answer: Controlling
Explanation:
A project management office (short form - PMO) is a management organisation that standardizes the project-related controlling processes and facilitates the sharing of resources, techniques, tools, and methodologies. They are the minders of best practices, project status and direction in a PMO.Hence, A project management office requiring compliance with standards and procedures that have been adopted is best described as a controlling form of PMO.
Sheffield Company has $145,000 of inventory at the beginning of the year and $131,000 at the end of the year. Sales revenue is $1,972,800, cost of goods sold is $1,145,400, and net income is $248,400 for the year. The inventory turnover ratio is:
Answer:
Sheffield Company
Inventory Turnover Ratio = Cost of goods sold/Average Inventory
= $1,145,400/$138,000
= 8.3 times
Explanation:
a) Data and Calculations:
Beginning inventory = $145,000
Ending inventory = $131,000
Average inventory = (Beginning inventory + Ending inventory)/2
= ($145,000 + 131,000)/2
= $138,000
Sales revenue = $1,972,800
Cost of goods sold = $1,145,400
Net income = $248,400
b) The inventory turnover ratio for Sheffield Company is an efficiency ratio that shows how inventory is managed and the number of times Sheffield sells or consumes the inventory during an accounting period. This is why Sheffield Company takes the average of the inventories in order to smoothen seasonal fluctuations in the inventory level during the year. When this ratio divides the number of days in the accounting period, Sheffield will get the days it takes for inventory to be purchased or produced, and then sold or consumed.
Planet Corporation acquired 90 percent of Saturn Company’s voting shares of stock in 20X1. During 20X4, Planet purchased 52,000 Playday doghouses for $28 each and sold 37,000 of them to Saturn for $34 each. Saturn sold all of the doghouses to retail establishments prior to December 31, 20X4, for $49 each. Both companies use perpetual inventory systems.
Required:
Prepare all journal entries Planet recorded for the purchase of inventory and resale to Saturn Company in 20X4.
Answer:
Purchase of Inventory by Planet (Parent)
Inventory $1,456,000 (debit)
Cash $1,456,000 (credit)
Sale of Inventory by Planet (Parent) to Subsidiary (Saturn)
Revenue $1,258,000 (debit)
Cost of Sales $1,258,000 (credit)
Sale to third Parties by Saturn
Cash $1,813,000 (debit)
Cost of Sales $1,036,000
Sales Revenue $1,813,000 (credit)
Inventory $1,036,000
Explanation:
Purchase of Inventory by Planet (Parent)
Inventory $1,456,000 (debit)
Cash $1,456,000 (credit)
Inventory : 52,000 × $28 = $1,456,000
Sale of Inventory by Planet (Parent)
Note : This is an Intragroup transaction and need to be eliminated
Revenue $1,258,000 (debit)
Cost of Sales $1,258,000 (credit)
Revenue : 37,000 × $34 = $1,258,000
Sale to third Parties by Saturn
Cash $1,813,000 (debit)
Cost of Sales $1,036,000
Sales Revenue $1,813,000 (credit)
Inventory $1,036,000
Sales Revenue = 37,000 × $49 = $1,813,000
Cost of Sales = 37,000 × $28 = $1,036,000
It costs a firm that sells t-shirts $5 to sell a single t-shirt. This firm makes $15 in revenue from each t-shirt it sells. If this firm sells 20 t-shirts, what is its total profit? g
Answer:
$200
Explanation:
total profit = total revenue - total cost
average cost = $5
average revenue = $15
total revenue = average revenue x quantity = $15 x 20 = $300
total cost = average cost x quantity = $5 x 20 = $100
total profit = $300 - $100 = $200
The following data concerns a proposed equipment purchase: Cost$144,000 Salvage value$4,000 Estimated useful life 4years Annual net cash flows$46,100 Depreciation methodStraight-line Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is:
Answer: $74,000
Explanation:
The Average Investment refers to the average cash invested into a particular project and is useful in calculating the rate of return. The simple formula is to add the beginning value of the asset to its ending value and divide this by 2.
The ending value in this case would be the salvage value;
Average Investment = [tex]\frac{Beginning Cost of Machine + Salvage Value}{2}[/tex]
= [tex]\frac{144,000 + 4,000}{2}[/tex]
= $74,000
Kiley Corporation had these transactions during 2017.
Kiley Corporation had these transactions during 2017.Analyze the transactions and indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity.
A) Purchased a machine for $30,000, giving a long-term note in exchange.
B) Issued $50,000 par value common stock for cash.
C) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.
D) Declared and paid a cash dividend of $13,000.
E) Sold a long-term investment with a cost of $15,000 for $15,000 cash.
F) Collected $16,000 from sale of goods.
G) Paid $18,000 to suppliers.
Answer:
Operating Activities in the Cashflow statement refer to transactions involving the day to day running of the business in relation to the core business of the company such as revenue.
Investing Activities refer to capital transactions such as the purchase or disposal of fixed assets. It also includes the purchase or sale of securities belonging to other companies.
Financing Activities refer to the raising of money for the business and hence include Equity ( and dividends) and long term debt.
Non-cash investing and financing activity are Investing or Financing activities that were done without using cash but rather are exchanged.
A) Purchased a machine for $30,000, giving a long-term note in exchange. - Non-cash Investing and Financing activity
B) Issued $50,000 par value common stock for cash. - Financing Activities
C) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. - Non-cash Investing and Financing activity
D) Declared and paid a cash dividend of $13,000. - Financing Activities
E) Sold a long-term investment with a cost of $15,000 for $15,000 cash. - Investing Activities
F) Collected $16,000 from sale of goods. - Operating Activities
G) Paid $18,000 to suppliers. - Operating Activities
An investor considers investing $10,000 in the stock market. He believes that the probability is 0.30 that the economy will improve, 0.40 that it will stay the same, and 0.30 that it will deteriorate. Further, if the economy improves, he expects his investment to grow to $15,000, but it can also go down to $8,000 if the economy deteriorates. If the economy stays the same, his investment will stay at $10,000.a. What is the expected value of his investment?b. Should he invest the $10,000 in the stock market if he is risk neutral?c. Is the decision clear-cut if he is risk averse? Explain.
Answer:
a. What is the expected value of his investment?
$10,900b. Should he invest the $10,000 in the stock market if he is risk neutral?
If the investor is risk neutral, then he pays little attention to market risk, therefore, he/she should invest because the expected value is higher than the investment.c. Is the decision clear-cut if he is risk averse?
If the investor is risk averse, it means that he/she is afraid of market risk and likes to make decisions that involve the least possible risk. In this case, the possibility of losing money is not that large (in my opinion) and the expected value is relatively high, but a risk averse investor would probably prefer an investment that yields a lower rate but is more secure, e.g. US securities.Explanation:
total investment $10,000
if economy improves = 0.30 x $15,000 = $4,500if economy remains the same = 0.40 x $10,000 = $4,000if economy deteriorates = 0.30 x $8,000 = $2,400total expected value = $10,900
In your opinion, can exchange rate volatility be managed? Why or why not? Explain your answer.
The correct answer to this open question is the following.
What I think about exchange rate volatility is that investors have to learn to manage this volatility because it is part of the stock market on a daily basis. Indeed, it is the nature of the game. Managing foreign exchange or FX, as it is also known, is of the utmost importance in this globalized world of investments. The price of goods and products that are exported such as iron, steel, or any other commodity has been very volatile in recent years, that is why investors and countries have to hire experts to manage their operations. One of the resources that can help investors regarding this issue is to mitigate the uncertainty with futures or currency forwards.
On January 1, 2017, the first day of its fiscal year, Carter City received notification that a federal grant in the amount of $565,000 was approved. The grant was restricted for the payment of wages to teenagers for summer employment. The terms of the grant permitted reimbursement only after qualified expenditures have been made; the grant could be used over a two-year period. The following data pertain to operations of the SUMMER EMPLOYMENT GRANT FUND, a special revenue fund of Carter City, during the year ended December 31, 2017.
1. The budget was recorded. It provided for Estimated Revenues for the year in the amount of $282,500, and for Appropriations in the amount of $282,500.
2. A temporary loan of $282,500 was received from the General Fund .
3. During the year, teenagers earned and were paid $272,050 under terms of the Summer Employment program. An additional $8,250 is accrued as payable on December 31. Recognize the receivable and revenue (include the $8,250 of wages payable).
4. Each month a properly documented request for reimbursement was sent to the federal government; checks for $276,250 were received.
5. $251,550 was repaid to the General Fund
6. Necessary closing entries were made.
Answer:
1. Dr. Estimated revenue control 282,500
Cr. Appropriations control 282,500
2. Dr. cash 282,500
Cr. Due to general fund 282,500
3. a. Dr. expenditures control 280,300
Cr. Cash 272,050
Cr. Accrued wages payable 8,250
3b. Dr. grants receivable - Federal government 280,300
Cr. Revenues control 280,300
4. Dr. cash 276,250
Cr. Grants receivable -federal gonv 276,250
5. Dr. Due to general fund 251,550
Cr. Cash 251,550
6. Dr. Appropriations control 282,500
Cr. Estimated revenues control 282,500
Dr. Revenues control 380,300
Dr. fund balance 0
Cr. Expenditure control 380,300
Explanation:
Preparation of the Journal entries for Carter City
1. Based on the information given we were told that Estimated Revenues for the year was the amount of $282,500 while the Appropriations was in the amount of $282,500 this means that the transaction will be recorded as:
Dr. Estimated revenue control 282,500
Cr. Appropriations control 282,500
2. Since temporary loan of the amount of $282,500 was received from the General Fund, the Journal entry will be:
Dr. cash 282,500
Cr. Due to general fund 282,500
3.Since the teenagers earned and were paid the amount of $272,050 and An additional of $8,250 was accrued as payable while the Recognize the receivable and revenue include the amount of $8,250 of wages payable, this means that the transaction will be recorded as:
a. Dr. expenditures control 280,300
(272,050+8,250)
Cr. Cash 272,050
Cr. Accrued wages payable 8,250
3b. Dr. grants receivable - federal government 280,300
Cr. Revenues control 280,300
(272,050+8,250)
4. Since checks for the amount of $276,250 were received by the Federal government, this means that the Transaction will be recorded as:
Dr. cash 276,250
Cr. Grants receivable -federal gonv 276,250
5.Since the amount of $251,550 was repaid to the General Fund, the Journal entry will be:
Dr. Due to general fund 251,550
Cr. Cash 251,550
6. Since the Necessary closing entries were made, the transaction will be recorded as:
Dr. Appropriations control 282,500
Cr. Estimated revenues control 282,500
Dr. Revenues control 380,300
Dr. fund balance 0
Cr. Expenditure control 380,300
(272,050+8,250)
Imprudential, inc., has an unfunded pension liability of $582 million that mustb be paid in 20 years. To assess the value of the firms stock, financialal analysts to discount the liability back to the present
If the relevant discount rate is 7.5 percent, what is the present value of this liability? (Enter your answer in dollars not in millions, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Present value $137,010,452.17
Explanation:
Calculation for the present value of Imprudential, inc. liability
Using this formula
Present Value = FV / (1 + r)^t
Where,
FV =$582,000,000
=(1 + r)=(1+0.075=1.075)
t=20 Years
Let plug in the formula
Present Value = $582,000,000 / (1.075)^20
Present Value=$582,000,000/4.2478511
Present value= $137,010,452.17
Therefore the present value of Imprudential, inc. liability will be $137,010,452.17
Your Competitive Intelligence team is predicting that the Chester Company will invest in adding capacity to their Cute product this year. Assume Chester's product Cute invests in increasing its capacity by 10% this year. Because of this new information, your company anticipates all other products in the Core segment will increase their capacity by the same amount. How much can the industry produce in the Core segment the next year? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000).
Answer:
HELLO SOME PARTS OF THE QUESTION IS MISSING ATTACHED BELOW IS THE MISSING PARTS
answer : 13156
Explanation:
Considering only products primarily in the core segment last year.
they are : Ant, cone, cute,Drat and Daze
From the question it is assumed that Chester's product Cute and other products in its Core segment will be increased by 10% this year hence we will calculate the 10% increase of each core product and add it to its initial value
For ANT (1550)
will become = 1550 + ( 10% * 1550 ) = 1705
For CONE ( 1050 )
will become = 1050 + ( 10% * 1050 ) = 1155
For Cute ( 1300 )
will become = 1300 + (10% * 1300 ) = 1430
For Drat ( 1040 )
will become = 1040 + ( 10% * 1040 ) = 1144
For DAZE ( 1040 )
will become = 1040 + ( 10% * 1040 ) = 1144
The total capacity of the current year = 1705 + 1155 + 1430 + 1144 + 1144 = 6578
Hence the Total capacity the Industry will produce in the core next year still applying the 10% increment will be = 2 * 6578 = 13156
In the context of a firm's statement of cash flows, ________ include the purchase, sale, or investment in fixed assets, such as real estate, equipment, and buildings.
Answer: investing activities
Explanation:
Investing activities is one of the categories of the net cash activities that is shown on a cash flow statement. It should be noted that investing activities is the buying and selling of long-term assets and every other business investments.
Investing activities include the purchase, sale, or investment in fixed assets, such as real estate, equipment, and buildings.
Suppose the current term structure of interest rates, assuming annual compounding, is as follows: s_1s 1 s_2s 2 s_3s 3 s_4s 4 s_5s 5 s_6s 6 7.0% 7.3% 7.7% 8.1% 8.4% 8.8% What is the discount rate d(0,4)d(0,4)? (Recall that interest rates are always quoted on an annual basis unless stated otherwise.)
Answer: The answer is 7.53%
Explanation:
To calculate for the discount rate of d(0,4)d(0,4)
The discount factor is : d=1/1+i
Provided the interest rates are compounded annually the discount factor will give the present value of the bond when provided with the interest rate and maturity value.
Going with the above, the present value of a bond with a maturity value of 1 will be;
Present value=1 /(1+i1) (1+i) (1+i3) (1+i4)
Present value=1 / (1.07) (1.073) (1.077) (1.081)
Present value=0.748
The present value of a bond with a maturity value of 1 will hence be 0.748.
Therefore, to calculate the discounting factor for the 4 years:
1 (1+d (0,4))‐⁴ =0.748
(1+d(0,4))=0.748‐¹/⁴
1+d (0,4) =1.0753
d (0,4)=0.0753
Finally, the discount rate will be 7.53%
Can a broker arbitrarily penalize an independent contractor based on varying factors, such as the sales agent's difficulty in closing a deal or failure to produce paperwork in a timely fashion?
Answer:
No
Explanation:
An independent contractor is a business person or entity who works for an employer based on an agreed-upon contract which affords him the flexibility of choosing how and when he accomplishes a task. The employer has the right to control the results of his work but has little or no say on how and when the job is done.
An independent contractor is not bound to work specific hours dictated by an employer. When the sale's agent finds it difficult to close a deal or is unable to produce paperwork in a timely fashion, he cannot just be arbitrarily penalized by the broker. The broker could terminate the contract if the agent does not meet up to his requirements.
"The following per unit cost information is available: direct materials $10, direct labor $4, variable manufacturing overhead $3, fixed manufacturing overhead $10, variable selling and administrative expenses $1, and fixed selling and administrative expenses $8. Using a 25% markup percentage on total per unit cost, compute the target selling price."
Answer:
The target selling price =$45
Explanation:
The target selling price is the sum of the total unit cost plus 25% of the the unit cost
The target selling price = Total per unit cost + (25% × total unit cost)
The total unit cost is the sum of all the costs involved making the product available to the consumer.
The sum of direct material cost , labour cost variable manufacturing, fixed manufacturing overhead, variable selling and administrative expenses and fixed selling and administrative expenses.
The target selling price would be determined using te steps below:
Step 1: Calculate the unit cost
Total unit cost = 10 + 4 + 3 + 10 + 1 + 8 = 36
Total unit cost = $36
Step 2: Calculate the target selling price
Target selling price = Unit cost + (25%× unit cost)
The target selling price = 36 + (25% × 36) = $45
The target selling price =$45
Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason's first year of operations and they have hired you as their CPA to prepare the income statement and balance sheet for their company. As such, January 1st , 2019 was the first day that Mason was in business.
Required:
For the month of January, record all the necessary journal entries for transactions that occurred during the month. In addition, please prepare all necessary adjusting journal entries as of the end of the month.
Answer:
Mason Automotive sells 10,000,000 shares at $5 par for $15 on January 1st, 2019.
Dr Cash 150,000,000
Cr Common stock 50,000,000
Cr Additional paid in capital 100,000,000
Ed Mason, the CEO, hires 4,000 employees, whom will receive a combined salary of $6.5 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 5th. Employee's withholdings are as follows: 10% for federal income taxes 5% for state income taxes and 7% for FICA. Record the necessary entry as of January 1st, 2019.
No journal entry required
Adjusting entry:
January 31, 2019, wages expense
Dr Wages expense 6,500,000
Dr FICA taxes expense 455,000
Cr Federal income taxes withheld payable 650,000
Cr State income taxes withheld payable 325,000
Cr FICA taxes withheld payable 455,000
Cr FICA taxes payable 455,000
Cr Wages payable 5,070,000
On January 1st, Mason Automotive receives $70 Million advance payment from a customer, Highland Inc., to manufacture 7,000 cars.
Dr Cash 70,000,000
Cr Deferred revenue 70,000,000
Adjusting entry:
January 31, 2019, 5,000 cars were finished and delivered
Dr Deferred revenue 35,000,000
Cr Sales revenue 35,000,000
Mason Automotive issues a bond payable on January 1st, 2019 with a face value of $500 Million at 98. The bond will have a useful life of 10 years with an interest payment of 8% (Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of January 1st, 2019.
Dr Cash 490,000,000
Dr Discount on bonds payable 10,000,000
Cr Bonds payable 10,000,000
(Note: When considering the amortization of the discount or premium, assume the straight line method is used).
Adjusting entry
January 31, 2019, interest expense
Dr interest expense 3,416,666
Cr Discount on bonds payable 83,333
Cr Interest payable 3,333,333
Mason Automotive purchased $6 Million dollars worth of supplies on account on January 2nd, 2019.
Dr Supplies 6,000,000
Cr Accounts payable 6,000,000
Adjusting entry
January 31, 2019, supplies expense
Dr Supplies expense 3,500,000
Cr Supplies 3,500,000
On January 2nd, Mason Automotive shipped an order to Panther Paws Corporation. The shipping terms were FOB shipping point and the value of the order was $95 Million and the inventory cost was $55 Million. Assume that this sale was made on account. Dr Accounts receivable 95,000,000
Cr Sales revenue 95,000,000
Dr Cost of goods sold 55,000,000
Cr Inventory 55,000,000
Adjusting entry:
January 31, 2019, allowance for doubtful accounts (3%)
Dr Bad debt expense 2,850,000
Cr Allowance for doubtful accounts 2,850,000
Mason Automotive purchased $150 Million dollars worth of inventory on January 2nd, 2019. $80 Million was paid with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory.
Dr Inventory 150,000,000
Cr Cash 80,000,000
Cr Accounts payable 70,000,000
Mason Automotive buys a patent from Apple for $20 Million on January 3rd, 2019. The patent has a legal life of 20 years and the useful life was the same. Record the necessary entry as of January 3rd, 2019. Assume the patent was purchased using cash. Dr Patent 20,000,000
Cr Cash 20,000,000
Adjusting entry:
January 31, 2019, patent amortization expense
Dr Patent amortization expense 83,333
Cr Patent 83,333
Mason Automotive pre-pays for Rent Expense for the next year of $12 Million and Insurance Expense of $3.7 Million on January 3rd, 2019.
Dr Prepaid rent 12,000,000
Dr Prepaid insurance 3,700,000
Cr Cash 15,700,000
Adjusting entries:
January 31, 2019, rent expense
Dr Rent expense 1,000,000
Cr Prepaid rent 1,000,000
January 31, 2019, insurance expense
Dr Insurance expense 308,333
Cr Prepaid insurance 308,333
Mason Automotive purchases fixed assets of $100 Million that will have a useful life of 10 years and a salvage value of $20 million on January 4th, 2019. $20 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method.
Dr Fixed assets 100,000,000
Cr Cash 20,000,000
Cr Accounts payable 80,000,000
Adjusting entry:
January 31, 2019, depreciation expense
Dr Depreciation expense 666,667
Cr Accumulated depreciation - fixed assets 666,667
On January 20th, Mason Automotive decides to purchase 500,000 shares of Treasury stock at $35 per share.
Dr Treasury stock 17,500,000
Cr Cash 17,500,000
Patricia is a business owner who is trying to determine the cost of goods sold for 2019. She bought 20 units of inventory at $11, then 26 units at $9, and finally 18 units at $14. She sold 30 units in 2019 and uses FIFO for her inventory valuation. What was her cost of goods sold in 2019, assuming that there was no inventory at the beginning of the year?
Answer:
COGS= $310
Explanation:
Giving the following information:
She bought 20 units of inventory at $11, then 26 units at $9, and finally 18 units at $14.
She sold 30 units in 2019.
Under the FIFO (first-in, first-out) valuation method, the cost of goods sold is calculated using the cost of the firsts units incorporated into inventory.
COGS= 20*11 + 10*9
COGS= $310
Adjusting entries affect at least one balance sheet account and at least one income statement account. For the entrie below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the incom statement account and which is the balance sheet account. Assume the company records prepayments of expenses asset accounts, and cash receipts of unearned revenues in liability accounts.
a. Entry to record consulting services performed but not yet billed (nor recorded).
b. Entry to record Interest revenue earned but not yet collected (nor recorded).
c. Entry to record service revenues performed but not yet billed (nor recorded).
d. To record janitorial expense incurred but not yet paid.
e. To record rent expense incurred but not yet paid
Accounts Account Title Financial Statement
a. Account to be debited Accounts receivable Balance sheet
Account to be credited Consulting services revenue Income statement
b. Account to be debited Interest receivable Balance sheet
Account to be credited interest revenue earned Income statement
c. Account to be debited Accounts receivable Balance sheet
Account to be credited Services revenue earned Income statement
d. Account to be debited Janitorial expense Balance sheet
Account to be credited Accrued expenses payable Income statement
e. Account to be debited Rent expense Balance sheet
Account to be credited Accrued expenses payable Income statement
Answer and Explanation:
According to the given situation, the income statement and balance sheet as per parts is shown below:-
Accounts Account Title Financial statements
For Part A
Debit Accounts receivable Liability account Balance sheet
Credit Consulting service Income statement
revenue
For Part B
Debit Interest receivable Liability account Balance sheet
Credit Interest revenue Income statement
For Part C
Debit Accounts receivable Assets account Balance sheet
Credit Service Revenue Income statement
For Part D
Debit Janitorial expense Income statement
Credit Janitorial expense Liability account Balance sheet
Payable
For Part E
Debit Rent expenses Income statement
Credit Rent expenses Liability account Balance sheet
payable
Coal mining is a dangerous and dirty job. Suppose someone developed new machinery that made coal mining safer and cleaner; at the same time, suppose it made coal miners more productive. We would expect that the wages of coal miners would
Answer:
D. Rise, fall, or stay the same
Explanation:
In the case of a new invention, there are several scenarios that could play out. An invention which makes a job such as coal mining which was previously dangerous and dirty to become safer could result in;
1. A rise in the wages of the miners, perhaps, because their productivity is now increased.
2. A fall in the wages of the miners perhaps because they do not have to do much stressful work as there is now new machinery to make work easier.
3. Stay the same if the employer reasons that their wages are sufficient or commensurate to the work they now do.
The matching principle prescribes: Multiple Choice The use of the direct write-off method for bad debts. That expenses be ignored if their effect on the financial statements is unimportant to users' business decisions.
Answer: C. The use of the allowance method of accounting for bad debts
Explanation:
Here is the complete question:
The matching principle requires:
A. That expenses be ignored if their effect on the financial statements are less important than revenues to the financial statement user.
B. The use of the direct write-off method for bad debts.
C. The use of the allowance method of accounting for bad debts.
D. That bad debts be disclosed in the financial statements.
E. That bad debts not be written off.
The matching principle is also referred to as the revenue recognition principle and it simply states that recording of revenues should be done during the period when they are earned, without taking into consideration when transfer of cash takes place.
The matching principle, requires using allowance method of accounting for bad debts as this will ensure that the bad debt expenses are matched to revenue.
Use the following information for Shafer Company to compute inventory turnover for year 2.
Year 2 Year 1
Net sales $647,500 $582,000
Cost of goods sold 389,500 360,840
Ending inventory 76,700 79,380
a. 9.98
b. 9.98
c. 5.08
d. 4.99
e. 8.30
f. 8.44
Answer:
Inventory Turnover 2017 = 4.99 times
So option d is the correct answer.
Explanation:
Inventory turnover ratio is an accounting ratio which is used to determine the number of times the average level of inventory is sold off and replaced in a particular period. The formula to calculate the inventory turnover times is,
Inventory Turnover = Cost of Goods Sold / Average Inventory
Where,
Average Inventory = (Opening Inventory + Closing Inventory) / 2
Average Inventory 2017 = (79380 + 76700) / 2
Average Inventory 2017 = $78040
Inventory Turnover 2017 = 389500 / 78040
Inventory Turnover 2017 = 4.99 times
"A stock is quoted at $18 - $19. If a customer sells 100 shares to the dealer, under the FINRA 5% Policy, a fair and reasonable mark-down is based upon which price?"
Answer:
$18
Explanation:
Based on the information given above under the FINRA 5% Policy a fair and reasonable mark-down is based upon the price of $18 reason been that we were been ask about how much price will the mark-down price be based in a situation where the customer SELLS 100 shares to the dealer which means that mark-down will be computed from the inside bid price of the amount of $18.
Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pool Activity Rate Setting up batches $ 59.56 per batch Processing customer orders $ 72.96 per customer order Assembling products $ 4.25 per assembly hour Data concerning two products appear below: Product K91B Product F65O Number of batches 89 60 Number of customer orders 39 53 Number of assembly hours 493 900 How much overhead cost would be assigned to Product K91B using the activity-based costing system?
Answer:
$10,241.53
Explanation:
Using the activity-based costing system, Overhead cost for Product K91B would be?
Setting up batches 89 batches x $59.56= $5300.84
Processing customer orders 39 orders x $72.96= $2,845.44
Assembling products 493 hours x $4.25= $2,095.25
Total Overhead cost $10,241.53
Exercise F The luggage department of Sampson Company has revenues of $1,000,000; variable expenses of $250,000; direct fixed costs of $500,000; and allocated, indirect fixed costs of $300,000 in an average year. If the company eliminates this department, what would be the effect on net income
Answer:
Decrease by $250,000
Explanation:
Calculation for what would be the effect on net income.
We would be using Differential Analysis method to find the effect on the net income
Differential Analysis
Continue with Luggage Department; Eliminate Luggage Department; Effect on Income
Sales
1,000,000 0 -1,000,000
Variable cost
-250,000 0 250,000
Direct fixed costs
-500,000 0 500,000
Indirect fixed costs
-300,000 -300,000 0
Net Income
-$50,000 -$300,000 -$250,000
Therefore in a situation where the luggage department is eliminated, the income would decrease by $250,000
Danaher Woodworking Corporation produces fine furniture. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated lathe. Additional information is provided below for the most recent month: Estimates at the beginning of the month: Estimated total fixed manufacturing overhead $ 36,400 Capacity of the lathe 400 hours Actual results: Actual total fixed manufacturing overhead $ 36,400 Actual hours of lathe use 380 hours Required: a. Calculate the predetermined overhead rate based on capacity. b. Calculate the manufacturing overhead applied. c. Calculate the cost of unused capacity.
Answer:
a. Calculate the predetermined overhead rate based on capacity.
$91 per lathe hourb. Calculate the manufacturing overhead applied.
$34,580c. Calculate the cost of unused capacity.
$1,820Explanation:
Estimated total fixed manufacturing overhead $36,400
Capacity of the lathe 400 hours
predetermined overhead rate per lathe hour = $36,400 / 400 = $91
actual results:
Actual total fixed manufacturing overhead $36,400
Actual hours of lathe use 380 hours
applied overhead = $91 x 380 lathe hours = $34,580
cost of unused capacity = $36,400 - $34,580 = $1,820
Exercise 10-6 Direct Materials and Direct Labor Variances [LO10-1, LO10-2] Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 7.40 pounds $ 2.60 per pound $ 19.24 Direct labor 0.45 hours $ 8.00 per hour $ 3.60 During the most recent month, the following activity was recorded: 12,100.00 pounds of material were purchased at a cost of $2.50 per pound. All of the material purchased was used to produce 1,500 units of Zoom. 575 hours of direct labor time were recorded at a total labor cost of $5,750. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Direct material:
Standard= 7.40 pounds $ 2.60 per pound
Actual= 12,100 pounds of material were purchased for $2.50 per pound.
Direct labor:
Standard= 0.45 hours $ 8.00 per hour
Actual= 575 hours of direct labor time were recorded at a total labor cost of $5,750
Units produced= 1,500
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2.6 - 2.5)*12,100
Direct material price variance= $1,210 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
standard quantity= 1,500*7.4= 11,100
Direct material quantity variance= (11,100 - 12,100)*2.6
Direct material quantity variance= $2,600 unfavorable
To calculate the direct labor efficiency and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Standard quantity= 1,500*0.45= 675
Direct labor time (efficiency) variance= (675 - 575)*8
Direct labor time (efficiency) variance= $800 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 5,750/575= $10
Direct labor rate variance= (8 - 10)*575
Direct labor rate variance= $1,150 unfavorable