Answer:
$2,108
Explanation:
Max purchases a used car for $3400.
The sales tax paid was 62%
The tax amount would be 62% of $3,400
=62/100 x $3,400
=0.62 x $3,400
=$2,108
Tax amount = $2,108
Select the correct answer.
This image shows a web designer's grids for different pages on a website. The uppermost box on each page is the website's identity. Which
important feature of a good website has the designer violated?
A
simplicity
B.
consistency
C.
clarity
D
harmony
Answer:
consistency
Explanation:
plato
the uppermost box is a different size and in a different place on each page, that is not consistent. consistency is one of the important features of a good website.
What is the minimum requirement to enroll in an open college?
A. 17 on the ACT
B. 1000 on the SAT
C. There is no requirement.
D. 2.0 GPA
Answer is C.
Answer:
c. there is no requirement
M. Bramble Corporation has 14,000 shares of 8%, $100 par value, cumulative preferred stock outstanding at December 31, 2020. No dividends were declared in 2018 or 2019. If M. Bramble wants to pay $360,000 of dividends in 2020, what amount of dividends will common stockholders receive
Answer:
Dividend - Common stock = $24000
Explanation:
The cumulative preferred stock refers to the kind of preferred stock that accrues the dividends in case the dividend on these stocks is not paid in a certain year. Such dividend is to be paid first whenever the business declares dividends in the future.
The total dividend per year on the cumulative preferred stock for M. Bramble Corporation is,
Dividend - Preferred stock = 14000 * 100 * 0.08 = $112000
The dividends in arrears at the start of 2020 = 112000 * 2 = $224000
The total dividend payable on preferred stock at the end of 2020 = 224000 + 112000 = $336000
As the dividends on preferred stock is payable before dividends on common stock, the dividends on common stocks will be,
Dividend - Common stock = 360000 - 336000 = $24000
If a basket selling price is $13per unit with the variable expense is $10 per unit and the company's monthly fixed expense if $7,800, what is the break even point in sales
Answer:
26,000 units
Explanation:
The break-even point is calculated by dividing fixed costs by the contribution margin per unit.
Fixed costs are $78,000
Contribution margin per unit = selling costs - variable costs
=$13-$10
Contribution margin per unit=$3
Break-even point = $7800/$3
=26,000 units
Johnson Inc. is a job-order manufacturing company that uses a predetermined overhead rate, based on direct labor hours, to apply overhead to individual jobs.
For the current year, estimated direct labor hours are 95,000 and estimated factory overhead is $617,500.
The following information is for September of the current year:
September 1, inventories:
Materials inventory $ 7,500
Work-in-process inventory (All Job A) 31,200
Finished goods inventory 67,000
Material purchases 104,000
Direct materials requisitioned:
Job A 65,000
Job B 33,500
Direct labor hours:
Job A 4,200
Job B 3,500
Labor costs incurred;
Direct labor ($8.50/hour) 65,450
Indirect labor 13,500
Supervisory salaries 6,000
Rental costs:
Factory 7,000
Administrative offices 1,800
Total equipment depreciation costs:
Factory 7,500
Administrative offices 1,600
Indirect materials used 12,000
Job A was completed during September and Job B was started but not finished.
Required:
1. What is the total cost of Job A?
2. What is the total factory overhead applied during September?
3. What is the over-applied or under-applied overhead for September?
Answer:
1. $159,200
2. $50,050
3. $4,050 overapplied
Explanation:
1. Calculation for The total cost of Job A?
TOTAL COST OF JOB A
Direct materials requisitioned $ 65,000
Add Direct labor costs $ 35,700
(4,200 hours * $ 8.50 per hour)
Add Applied overheads $ 27,300
(4,200 hours * $ 6.50 per hour)
($617,500/95,000=$ 6.50 per hour)
Add Work in process $ 31,200
Total Cost of Job A $ 159,200
Therefore Total Cost of Job A will be $ 159,200
2. Calculation for What is the total factory overhead applied during September
First step is to calculate Predetermined Overhead Rate
Predetermined Overhead Rate=$617,500/95,000
Predetermined Overhead Rate=$ 6.50 per hour
Now let calculate the total factory overhead applied
Total factory overhead applied =(Job A 4,200+Job B 3,500) × ($6.50)
Total factory overhead applied =7,700×$6.50
Total factory overhead applied =$50,050
Therefore the total factory overhead applied will be $50,050
3. Calculation for What is the over-applied or under-applied overhead for September
First step is to calculate Actual factory overhead
Actual factory overhead :
Indirect labor 13,500
Supervisory salaries 6,000
Rental costs:Factory 7,000
Factory 7,500
Indirect materials used 12,000
Actual factory overhead =$46,000
Second step is to calculate Predetermined Overhead Rate
Predetermined Overhead Rate=$617,500/95,000
Predetermined Overhead Rate=$ 6.50 per hour
Now let calculate the over-applied or under-applied overhead for September
Over-applied or under-applied overhead =(Job A 4,200+Job B 3,500*$ 6.50 per )-$46,000
Over-applied or under-applied overhead =(7,700*$6.50)-$46,000
Over-applied or under-applied overhead =$50,050-$46,000
Over-applied or under-applied overhead =$4,050 overapplied
Therefore the over-applied for September is $4,050
In the decision-making process, you must take into account several cultural variables. Describe one of the variables associated with risk tolerance and one of the variables associated with internal/external locus of control. Why are these important factors to consider?
Answer:
Answer is explained below in the explanation section.
Explanation:
There is always a need to have an important control upon the decisions that we have in the business setup. Informed decision making is very necessary for business. People use different decision setups designed to help in the manufacturing process and most often come up with very fruitful decisions.
One of the cultural factors associated with risk tolerance may be the threshold for when we can make decisions that are not detrimental to the cultural view of groups. We need to carefully consider our employees and make sure that our decisions are not too objective. Cultural-emotional bias can lead to decisions that can damage brand ownership throughout the business. This is very dangerous and detrimental for any company, so it is necessary to limit decisions and their consequences in terms of cultural sense to avoid any losses.
The internal locust of control is the kind of person who is the best fit for all the jobs. So it is obvious that this person has some control over others. But there are some do's and don'ts for such kind of person as well. Such as, he has to communicate with almost everyone in the workplace. So, he must ensure neutrality in all aspects of other people with whom he is working. Such aspects are religion, race, caste. society etc. and his humor must not harm the emotions of anyone in the workplace.
In order to run business smoothly with maximum profits and best workforce and the best workplace. Effective decision making is the key to go. Hence, these variables are very important to achieve the effective business decision making in the long term.
Adam’s Apple Farm is a thriving orchard which grows apples that are then made into apple juice. Despite appearing to be a profitable business, Adam struggles to find the cash to pay the apple pickers each harvest, and sometimes cannot pay the monthly rent on the farm. He sells most of his apples to two big fruit juice manufacturers who have a habit of delaying payment to small suppliers.
Analyse how Adam might improve his cash-flow
Answer:
Adam needs to start a side business :D
Explanation:
Carlin Company, which uses net present value to analyze Investments, requires a 10% minimum rate of return. A staff assistant recently calculated a $500,000 machine's net present value to be $86,400, excluding the impact of straight-line depreciation
6.105 FV of 1 (i = 100,-5): 1.611
TV of a series of $i cash flows ( - 108, n. 5):
PV of $1 (1 - 108; n = 5) 0.621
PV of a series of $1 cash flown (1 101, n = 5) 3.791 #
If Carlin Ignores income taxes and the machine is expected to have a five-year service life, the correct net present value of the machine would be:
a) $292,700
b) $186,400
c) $86,400
Answer: c) $86,400
Explanation:
Depreciation on an asset reduces the amount of taxes that need to be paid and this is the main reason assets are depreciated.
If Carlin is going to ignore income taxes then there is no need to account for the impact of depreciation on the asset when calculating its present value.
The present value will therefore be the same as the amount calculated by the assistant at $86,400.
Aces, Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4, 900. At year-end, the company reported the following income statement using absorption costing.
Production costs per tennis racket total $38, which consists of $25 in variable production costs and $13 in fixed production costs (based on the 6,000 units produced). Ten percent of total selling and administrative expenses are variable. Compute net income under variable costing.
a) $165, 500
b) $233,000
c) $311,000
d) $194, 100
e) $240, 500
Answer:
a) $165, 500
Explanation:
Hi, I have attached the full question as image below
We can calculate the net income under variable costing by reconciliating the net income under absorption costing to net income under variable costing. Alternatively we can prepare a whole new variable costing income statement.
Here I will show you the by reconciliating the net income under absorption costing to net income under variable costing.
Frist, calculate the units in opening and closing stock :
units in opening inventory = 0
units in closing inventory = 6,000 - 4,900 = 1,100 rackets
Next, determine the unit fixed manufacturing cost :
unit fixed manufacturing cost = $13
Then, reconcile the incomes as shown :
Reconciliating the net income under absorption costing to net income under variable costing
net income under absorption costing $179,800
add fixed cost in opening stock $0
less fixed cost in closing stock (1,100 x $13) ($14,300)
net income under variable costing $165,500
Describe how audit procedures involving tests of controls can provide indirect evidence about whether financial statement account balances are free of material misstatement.
Answer:
Internal Controls are tested by audit team through entering dummy entries and identifying the system restrictions. Observing the management behavior towards controls and investigating any flaw in the internal control.
Explanation:
Audit is a technical process as it involves detailed analysis of the controls that are in place in the organization. The management behavior towards those controls are very important as it is the management responsibility to ensure that all employees follow the internal controls and there is no breach in the control. The financial statements should be prepared in the finance department with only the relevant staff and there should not be access given to employees of other department so that there can be less risk for material misstatement.
The decision-making tool that leverages a map of alternatives with a quantifiable utility, or relative value, assigned to each is called a:_
Answer:
Decision tree
Explanation:
The decision tree provides the alternatives and allocated the value and weight for each and every alternative in order to become easier to take the decision that depend on the amount and weight allocated to each alternative
It helps in decision making
So as per the given situation the decision tree is the answer
Hence, the second option is correct
The Federal Reserve buys $14.00 million in Treasury securities. If the required reserve ratio is 5.00%, and all currency is deposited into the banking system, and banks hold excess reserves of 10%, then the maximum amount the money supply can increase is $ ______ million. (Insert your answer in millions; if you think the answer is $30 million, just enter 30. Round your answer to two decimal places.)
Answer:
$93.33
Explanation:
The computation of the increase the maximum account in supply is shown below:
As we know that
Money multiplier = 1 ÷ (excess reserve ratio + required reserve ratio)
= 1 ÷ (0.05 + 0.10)
= 6.67
Now increase in money supply is
= $14 million ×6.67
= $93.33
The maximum amount the money supply can increase is $93.33
First step is to find the multiplier
Reserve= (Excess reserve ratio + Required reserve ratio)
Reserve = (0.05 + 0.10)
Reserve=0.15
Second step
Increase in money supply = $14 million/0.15
Increase in money supply= $93.33
Inconclusion the maximum amount the money supply can increase is $93.33
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The production possibility frontier is used to illustrate the concept of A) the laissez-faire economy. B) opportunity costs. C) equilibrium. D) aggregate demand.
Answer:
B) opportunity costs.
Explanation:
The production possibility frontier is used to illustrate the concept of opportunity costs. The production possibility frontier shows the combination of goods which can be produced by making use of all the available resources in an economy. In order to produce an extra unit of one good, some amount of other good has to be sacrificed. This is known as opportunity cost.
The production possibility frontier is applied for illustrating the concept of option b. opportunity costs.
What are opportunity costs?
The production possibility frontier represent the combination of the goods that need to be generated via using the resources that are available that time. For generating the additional unit of one good, the some value of the other goods need to be sacrificed. So for that we know as the opportunity cost.
Therefore, we can conclude that the option b is correct.
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Lucas is working in ABC organization. He looks after the logical components of Active Directory which are mapped to the organizational and business requirements of an organization. Which of the following are those logical components?
a. Active Directory domains
b. OUs
c. Groups
Answer:
The logical components of Active Directory are:
a. Active Directory domains
Explanation:
Three main components are identified in the Active Directory. They are the domains, trees, and forests, with several objects like users and devices. The logical components, as administrative entities in Active Directory, assign logical systems, allowing Lucas to organize resources so that their layout in the directory reflects the logical structure of ABC organization.
You purchase 150 shares for $70 a share ($10,500), and after a year the price rises to $80. Calculate the percentage return on your investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense):
Answer:
57.14%
Explanation:
Missing word "25 percent."
Gain on the stock = (150*$80) - $10,500
Gain on the stock = $ 12,000 - $10,500
Gain on the stock = $1,500
If Margin requirement is 25%, The Margin = 10,500*25% = $2,625
Return on Investment = $1,500/$2,625 * 100 = 0.571429 * 100 = 57.1429% = 57.14%
Nation Furniture is a furniture manufacturing facility. Its workers just signed a two-year contract. The price level in the economy has increased. Answer the following set of questions based on the short run:
a. if the price level increases, input prices will: ______
1. increase.
2. remain constant.
3. decrease.
b. if the price level increases, output prices will:_________
1. decrease.
2. remain constant.
3. increase.
c. in the short run, the firm will experience a(n): _________
1. increase in economic profits.
2. decrease in economic profits.
3. increase in economic losses.
Answer: See explanation
Explanation:
a. Remain constant
From the question, we are informed that Nation Furniture workers just signed a two-year contract. This then means that even though there is an increase in price level, it doesn't affect the prices of inputs as they still remain constant.
b. Increase
We should note that when there is a rise in the price level, this will also bring about an increase in the prices of the output.
c. Increase in economic profit
The firm will have a rise in the economic profit in the short run. There'll be an increase in revenue which ultimately increase economic profit as well since input prices remain the same.
How is a provision for bad debt recognized in the income statement and balance sheet
Answer: The provision for doubtful debts is an accounts receivable contra account, so it should always have a credit balance, and is listed in the balance sheet directly below the accounts receivable line item. The two line items can be combined for reporting purposes to arrive at a net receivables figure
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Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price for wheat and a price $2 higher per bushel. Do you think that
Answer:
Farmers will not try to reduce the supply.
Explanation:
Price elasticity of demand is the responsiveness of demand against the change in the price of the good.
As per the given data
Elasticity of demand = 0.7
Change in price = $2
It is assumed that the Price was $10
Change in price = $2 / $10 = 0.20
Use the following formula to calculate the change in quatity demand
Elasticity of demand = Change in quantity demand / Change in price
Placing values in the formula
0.7 = Change in quantity demand / 0.2
Change in quantity demand = 0.7 x 0.2 = 0.14 = 14%
As the price of the wheat increased by 20% the demand is decreased by 14%.
In this situation reducing the supply to increase the supply is not feasible because with the increase in price the demand for the wheat will fall which will conflict with their objective. It will reduce the revenue of the farmer's supply, in this case, the farmers try to reduce the supply more than will reduce their revenue more and it will make a loss for the farmers.
A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts:
Karaoke Machines CDs
Price Price
Quantity (Dollars) Quantity (Dollars)
2017 20 30 40 8
2018 25 50 60 10
Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is__________
Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is ____________ Which of the following statements is correct? Check all that apply.
a. The inflation rate in 2018 is not the same using the two methods.
b. The CPI allows the basket of goods and services to change.
c. The GDP deflator holds the basket of goods and services constant.
Answer:
1. 52.17%
2. 50.41%
3. a. The inflation rate in 2018 is not the same using the two methods
Explanation:
1.
We are to calculate the % change in overall price level
Market basket:
Year 2017 = (30x2) + (8x4)
= 60 +32
= $92
Year 2018 = (50x2) + (10x4)
= 100+40
= $140
Cpi in 2017 = market basket in this year/market basket in base year x 100
= 92/92 x 100
= 100
Cpi in 2018
= 140/92 x 100
= 152.17
% change = 152.17 - 100 / 100
= 0.5217 x100
= 52.17%
2.
Nominal gdp in year 2017 = (20x30) +(40x8)
= 920 dollars
Real gdp in same year = 920 dollars
Gdp deflator (2018) = nominal/real x 100
= 920/920 x 100
= 100
Real gdp (2018) = (25*30) + (60x8)
= $1230
Nominal gdp(2018) = 25x50 + 60x10
= $1850
Gdp deflator = 1850/1230 x 100
= 150.41
% change in overall price level = 150.41-100/100
= 0.5041 x 100
= 50.41%
3. Using the 2 methods inflation rate in 2018 is not the same. The cpi's rate of inflation holds basket of goods to be fixed. Gdp deflator allows a fluctuation (it changes)
If a company is pursuing a low-cost strategy, it is important that employees only perform duties specified in their job description. Group of answer choices True False
Answer:
False.
Explanation:
Business strategy sets the overall direction for the business; it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan.
A low-cost strategy can be defined as a strategic pricing plan adopted by a business firm or organisation in order to make the price of their goods and services cheaper to enhance demand and increase their competitiveness i.e market share.
If a company is pursuing a low-cost strategy, it does not mean that it is important that employees only perform duties specified in their job description.
During the phase of the history of U.S. government regulation called industry deregulation, government sought to a. protect competitors by creating new federal agencies to police industry activities. b. prevent chain stores from competing unethically with smaller local operators. c. prevent concentration of industrial power in the hands of a few. d. increase competition in industries such as telecommunications, utilities, and transportation. e. police the Internet and online services.
Answer:
Option d (increase.....................transportation) seems to be the right option.
Explanation:
This same fourth phase throughout the past decades of U.S. regulatory requirements started throughout the late 1970s as well as focuses primarily on industrial protectionism. Throughout that stage of development, the current regime has focused on increasing competitive advantage throughout sectors such as construction, utility services, transshipment as well as wealth management by deactivating an amount of regulation but rather allowing companies to diversify their business processes to developing companies.The interpretation of that same question has been characterized throughout the explanation paragraph below.
Pharoah Corp. had total variable costs of $179,400, total fixed costs of $74,400, and total revenues of $260,000. Compute the required sales in dollars to break even.
Answer:
$165,333.33
Explanation:
The computation of the required sales in dollars to break even is as follow:
Break even point in dollars = Fixed cost ÷ contribution margin ratio
where,
Contribution margin ratio is
= (Sales - variable cost) ÷ (Sales)
= ($260,000 - $179,400) ÷ ($179,400)
= 45%
Now the break even point in dollar is
= $74,400 ÷ 0.45
= $165,333.33
Answer: $240,000
Explanation: Step 1
Let's understand the basics.
Break-even point is a point at which no profit no loss condition arises. In other words, it is a point at which contribution equals to a fixed cost of the company.
Break even point (In amount) = Fixed cost/Contribution margin ratio
Contribution margin ratio = ((Sales - Variable cost)/Sales) * 100
Step 2
So here in this case,
Contribution margin ratio = (($260,000 - $179,400)/$260,000) * 100 = 31%
Break even point (In amounts) = $74,400/31= $240,000
Why do people typically purchase insurance policies?
A. They anticipate that they will never have to pay their deductibles.
B. They believe insurance policies will increase in value over time.
C. They calculate that their insurance premiums will be greater than
their benefits.
D. They would not be able to pay for major expenses without
insurance.
Answer:
D
Explanation:
Insurance is used too help pay for major expenses, so D should be the correct answer.
People purchase insurance policies because they can't be able to reimburse for major charges without insurance.
Option D is the correct answer.
What is an insurance policy?An insurance policy is a contract between the policyholder and the insurance company to provide indemnification from the risk as specified in the policy.
After purchasing insurance policies, an individual can easily pay for huge expenses which are not in their budget. In this, the money is paid by the insurance company and the individual pays premiums for that.
Therefore, the acquisition of insurance policies by the people for making payments for huge expenses.
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Brief Exercise 22-02 Paige Company estimates that unit sales will be 10,100 in quarter 1, 12,100 in quarter 2, 14,800 in quarter 3, and 18,800 in quarter 4. Using a sales price of $82 per unit. Prepare the sales budget by quarters for the year ending December 31, 2020.
Answer:
Paige Company
Sales budget by quarters for the year ending December 31, 2020:
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Sales in units 10,100 12,100 14,800 18,800 55,800
Unit sales price $82 $82 $82 $82 $82
Sales value $828,200 $992,200 $1,213,600 $1,541,600 $4,575,600
Explanation:
a) Data and Calculations:
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Sales in units 10,100 12,100 14,800 18,800 55,800
Unit sales price $82 $82 $82 $82 $82
Sales value $828,200 $992,200 $1,213,600 $1,541,600 $4,575,600
b) Paige's sales budget is a financial plan which computes the expected sales revenue based on an expected selling price and sales unit. Paige uses the sales budget to forecast its future sales revenue. The preparation of the sales budget by Paige Company will ensure the efficient allocation of business resources, thereby saving time, effort, and money.
Mansfield, Inc., has two production departments, Assembly and Packaging. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The predetermined overhead rate in the Assembly Department is based on machine hours (MHs) and it is based on direct labor-hours (DLHs) in the Packaging Department. At the beginning of the year, the company made the following estimates:
Assembly Packaging
Direct labor-hours 5,200 62,000
Machine-hours 68, 400 11,900
Total fixed manufacturing overhead cost $390,000 $419,000
Variable manufacturing overhead per DLH $ 3.75
Variable manufacturing overhead per MH $ 3.00 Knowledge Check 01
Required:
What is the estimated total manufacturing overhead in the Assembly Department?
a) $595,200
b) $651,600
c) $809.000
d) $1,246,700
Answer:
Total manufacturing overhead= $595,200
Explanation:
Giving the following information:
The predetermined overhead rate in the Assembly Department is based on machine hours (MHs).
Assembly
Machine-hours 68, 400
Total fixed manufacturing overhead cost $390,000
Variable manufacturing overhead per MH $ 3.00
To calculate the total estimated overhead cost for the Assembly department, we need to calculate the total variable manufacturing overhead:
Total varaible overhead= 3*68,400= $205,200
Now, the total manufacturing overhead:
Total manufacturing overhead= 390,000 + 205,200
Total manufacturing overhead= $595,200
In 2018 the NFL football team, the Carolina Panthers, have an owner accused of sexual harassment. The fans’ demand for team jerseys has dropped with the scandal this year. At about the same time the cost to manufacture the jerseys in China increased by 20%. Describe what the new equilibrium price and quantity is like compared with the prior year’s Panthers’ jersey market before the scandal and increased manufacturing costs?
Question Completion with Options:
1. The demand curve shifted to the right, the supply curve shifted to the left, the equilibrium price and quantity increased from 2017
2. Supply and demand curves have shifted to the left and the equilibrium quantity has decreased from 2017 but it is impossible to determine the effect on the equilibrium price.
3. The demand curve shifted to the left, the supply curve shifted to the right, the equilibrium price and quantity increased from 2017 Od.
4. Supply and demand curves have shifted to the left and the equilibrium price and quantity for Panthers' jersey market has decreased since 2017.
Answer:
This is how the new equilibrium price and quantity are like compared with the prior year’s Panthers’ jersey market before the scandal and increased manufacturing costs:
2. Supply and demand curves have shifted to the left and the equilibrium quantity has decreased from 2017 but it is impossible to determine the effect on the equilibrium price.
Explanation:
The scenario presents a decrease in supply of the jersey caused by the increase in the cost of production by 20%. This is why supply shifted to the left. Based on this factor, price is supposed to increase but this does not reflect on the data because the scandal also dampened demand. No wonder demand also shifted to the left, resulting in further decrease. These two leftward shifts caused the equilibrium quantity to decrease. However, we cannot establish whether the price decreased as well because it is supposed to increase due to the increased production cost in China.
A company sells 500 shirts at a price of $15 each with a cost of goods sold of $2 per shirt. The company has selling and administrative expenses of $2,500, depreciation expenses of $500, interest expenses of $1,000, and a tax rate of 35%. Calculate the EBT
Answer:
EBT= $5,000
Explanation:
We need to calculate the earnings before taxes:
Sales= 500*15= 7,500
COGS= 500*2= (1,000)
Gross profit= 6,500
Depreciation= (500)
Interest= (1,000)
EBT= 5,000
Now, if we want to continue and calculate the net income:
EBT= 5,000
Tax= (5,000*0.35)= (1,750)
Depreciation= 500
Net income= 3,750
Use the following items to determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows.
Rent for the month $700 Monthly take-home salary $2,735
Spending for food $620 Cash in checking account $560
Savings account balance $2,000 Balance of educational loan $2,820
Current value of automobile $9,750 Telephone bill paid for the month $120
Credit card balance $290 Loan payment $190
Auto insurance $340 Household possessions $4,500
Video equipment $2,625 Payment for electricity $145
Lunches/parking at work $235 Donations $270
Personal computer $1,750 Value of stock investment $1,135
Clothing purchase $165 Restaurant spending $185
a. Total assets $
b. Total liabilities $
c. Net worth $
d. Total cash inflows $
e. Total cash outflows $
Answer: should be b
Explanation:
Your customer purchased 100 shares of Cuesta Verde Homes at $15 per share in a margin account. How much must the customer deposit by settlement day to pay for the trade
Answer:
$1,500
Explanation:
Calculation for How much must the customer deposit by settlement day to pay for the trade
Deposit=100 shares*$15 per share
Deposit=$1,500
Therefore the amount that the customer must deposit by settlement day to pay for the trade is $1,500
Prince Company owns 104,000 of the 130,000 shares outstanding of Serf Corporation. Serf Corporation sold equipment to Prince Company on January 1, 2017 for $740,000. The equipment was originally purchased by Serf Corporation on January 1, 2016 for $1,280,000 and at that time its estimated depreciable life was 8 years. The equipment is estimated to have a remaining useful life of four years on January 1, 2017. Both companies use the straight-line method to depreciate equipment. In 2018 Prince Company reported net income from its independent operations of $3,270,000, and Serf Corporation reported net income of $820,000 and declared dividends of $60,000. Prince Company uses the cost method to record the investment in Serf Company.
Required: A. Prepare, in general journal form, the workpaper entries relating to the intercompany sale of equipment that are necessary in the December 31, 2018 consolidated financial statements workpapers.
Answer:
Journal 1
At the beginning of the year
Debit : Equipment $380,000
Credit : Retained Earnings ($380,000 - $95,000) $285,000
Credit ; Accumulated Depreciation $95,000
Journal 2
During the year :
Debit : Depreciation $95,000
Credit : Accumulated depreciation $95,000
Explanation:
The sale of equipment to Prince Company is an intragroup transaction and must be eliminated from Prince Company Consolidated Financial Statements as follows :
Carrying Amount before sale :
Carrying Amount = Cost - Accumulated Depreciation
= $1,280,000 - ($1,280,000 ÷ 8)
= $1,120,000
Unrealized gain / loss =Selling Price - Carrying Amount
= $740,000 - $1,120,000
= $380,000 loss
Eliminate this loss on sale of equipment
2017
Unrealized depreciation = $380,000 ÷ 4
= $95,000
Eliminate this depreciation charge deferred at the beginning of 2018
2018
Unrealized depreciation = $380,000 ÷ 4
= $95,000
Eliminate this depreciation charge deferred during 2018