Answer:
a. product
Explanation:
Since in the question it is mentioned that the consumer electronics company launched a new music system that contains the various features like alarm, mobile & iPod charger, radio and etc
So here the company wants to influence the product by displaying the features of the company so that the chances of sale of the product could be high
Therefore the option a is correct
McNulty, Inc., produces desks and chairs. A new CFO has just been hired and announces a new policy that if a product cannot earn a margin of at least 30 percent, it will be dropped. The margin is computed as product gross profit divided by reported product cost.Manufacturing overhead for year 1 totaled $799,000. Overhead is allocated to products based on direct labor cost. Data for year 1 show the following:
Chairs DesksSales revenue $1,240,000 $2,286,900Direct materials 587,000 830,000Direct labor 150,000 320,000Required:a-1. Based on the CFO's new policy, calculate the profit margin for both chairs and desks.Profit marginChairs ?%Desks ?%a-2. Which of the two products should be dropped?ChairsDesksb. Regardless of your answer in requirement (a), the CFO decides at the beginning of year 2 to drop the chair product. The company cost analyst estimates that overhead without the chair line will be $680,000. The revenue and costs for desks are expected to be the same as last year. What is the estimated margin for desks in year 2? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 1 decimal place.)Estimated margin for desks- Year 2 ?%
Answer:
McNulty, Inc.
Chairs Desks
1. Margin on cost 25% 35%
2. Chairs should be dropped.
3. Margin for desks in Year 2 = 25%
Explanation:
a) Data and Calculations:
Expected margin = 30% = Gross profit/Product cost
Manufacturing overhead $799,000
Chairs Desks
Sales revenue $1,240,000 $2,286,900
Direct materials 587,000 830,000
Direct labor 150,000 320,000
Overhead 255,000 544,000
Product costs $992,000 $1,694,000
Gross profit $248,000 $592,900
Margin on cost 25% 35%
Expected margin 30% 30%
Expected Margin for desks in Year 2:
Desks
Sales revenue $2,286,900
Direct materials 830,000
Direct labor 320,000
Overhead 680,000
Product costs $1,830,000
Gross profit $456,900
Margin on cost 25%
Expected margin 30%
McNulty's new CFO has made a bad decision. Should the desks be eliminated also? Decisions involving overhead costs should not be made lightly. Detailed and precise information about the overhead costs should be obtained before a decision is taken on product elimination. This case demonstrates the reason for not taking a hasty decision on an issue like this.
The following selected accounts from the Bramble Corp.’s general ledger are presented below for the year ended December 31, 2022:
Advertising expense $54,000 Interest revenue $32,000
Common stock 249,000 Inventory 66,000
Cost of goods sold 1,084,000 Rent revenue 24,000
Depreciation expense 124,000 Retained earnings 534,000
Dividends 149,000 Salaries and wages expense 674,000
Freight-out 24,000 Sales discounts 8,600
Income tax expense 69,000 Sales returns and allowances 43,000
Insurance expense 15,000 Sales revenue 2,399,000
Interest expense 69,000
Required:
Prepare a multiple-step income statement BRAMBLE CORP.
Answer:
Bramble Corp.
Multiple-step Income Statement
$
Sales revenue 2,399,000
Sales returns and allowances (43,000)
Net Sales Revenue 2,356,000
Less Cost of goods sold (1,084,000)
Gross Profit 1,272,000
Less Operating Expenses :
Selling and Distribution Expenses
Advertising expense 54,000
Freight-out 24,000
Sales discounts 8,600 (86,600)
Administrative Expenses
Depreciation expense 124,000
Salaries and wages expense 674,000
Insurance expense 15,000 (813,000)
Net Operating Income 372,400
Less Non- Operating Expenses :
Interest revenue (32,000)
Rent revenue (24,000)
Income tax expense 69,000
Interest expense 69,000 (82,000)
Net Income/(Loss) 290,400
Explanation:
The multiple-step income statement has been prepared above.
Newland Company reported retained earnings at December 31, 2019, of $310,000. Newland had 200,000 shares of common stock outstanding at the beginning of 2020. Determine retained earnings balance. The following transactions occurred during 2020.
1. An error was discovered. In 2015, depreciation expense was recorded at $70,000, but the correct amount was $50,000.
2. A cash dividend of $0.50 per share was declared and paid.
3. A 5% stock dividend was declared and distributed when the market price per share was $15 per share.
4. Net income was $285,000.
Prepare a retained earnings statement for 2020.
Answer:
Retained earnings = $345,000
Explanation:
Particulars Amount
Retained earnings December 31,2019 $310,000
Less: Cash dividend $100,000
(200000 * $0.50)
Less: Stock dividend $150,000
(200,000*5%*$15)
$60,000
Add: Net income $285,000
Retained earnings $345,000
Retained earnings, December 31,2019 $310,000
Less: Cash dividend -$100,000 ($200,000 × 0.50)
Less: Stock dividend -$150,000 ($200,000 × 5% × 15)
Add: Net income $285,000
Retained earnings $345,000
Learn more: brainly.com/question/6201432
High Tech Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data for a relevant range extending to 200,000 units per month are as follows:
Sales price per unit: (current monthly sales volume is 120,000 units) $25
Variable costs per unit:
Direct materials 6.60
Direct labor 7.70
Variable manufacturing overhead 2.40
Variable selling and administrative expenses 1.90
Monthly fixed expenses:
Fixed manufacturing overhead 241,900
Fixed selling and administrative expenses 327,900
Required:
a. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin?
b. What would the company's monthly operating income be if the company sold 160,000 units?
c. What would the company's monthly operating income be if the company had sales of
d. What is the breakeven point in units? In sales dollars?
e. How many units would the company have to sell to earn a target monthly profit of $260,100?
f. Management is currently in contract negotiations with the labor union. If the negotiations fail, direct labor costs will increase by 10% and fixed costs will increase by S22,500 per month. If these costs increase, how many units will the company have to sell each month to break even?
g. Return to the original data for this question and the rest of the questions. What is the company's current operating leverage factor (round to two decimals)?
h. If sales volume increases by 7%, by what percentage will operating income increase?
i. What is the company's current margin of safety in sales dollars? What is its margin of safety as a percentage of sales?
Answer:
High Tech Manufacturing
a. Contribution margin per unit:
Selling price = $25
Variable cost $18.60
Contribution $6.40
Contribution margin percentage:
Contribution/Selling price * 100
= $6.40/$25 * 100
= 25.6%
Total contribution margin:
Sales Revenue ($25 * 120,000) = $3,000,000
Variable cost ($18.60 * 120,000) = 2,232,000
Total Contribution = $768,000
b. Monthly operating income if the company sold 160,000 units:
Sales Revenue ($25 * 160,000) = $4,000,000
Variable cost ($18.60 * 160,000) = 2,976,000
Total Contribution = $1,024,000
Fixed manufacturing overhead $241,900
Fixed selling and administrative
expenses 327,900
Total Expenses $569,800
Operating Income $454,200
c. What would the company's monthly operating income be if the company had sales of $4,500,000?
Sales volume = $4,500,000/$25 = 180,000 units
Sales Revenue ($25 * 180,000) = $4,500,000
Variable cost ($18.60 * 180,000) = 3,348,000
Total Contribution = $1,152,000
Fixed manufacturing overhead $241,900
Fixed selling and administrative
expenses 327,900
Total Expenses $569,800
Operating Income $582,200
d. Break-even point in units = Fixed costs/Contribution per unit
= $569,800/$6.4
= 89,031 units
Break-even point in sales dollars = Fixed costs/Contribution margin ratio
= $569,800/25.6%
$2,225,781.25
e. Sales unit to earn a Target profit of $260,100:
= (Fixed Costs + Target profit)/Contribution per unit
= ($569,800 + $260,100)/$6.40
= 129,672 units
f. If direct labor costs increase by 10% and fixed costs increase by $22,500, units to sell to break even per month:
= $592,300/$5.63
= 105,204 units
g. Current operating leverage factor = Contribution margin / Net operating income
= $768,000/198,200
= 3.87
h. = 27.12%
Sales Revenue ($25 * 128,400) = $3,210,000
Variable cost ($18.60 * 128,400) = 2,388,240
Total Contribution = $821,760
Fixed Costs $569,800
Operating income $251,960
Increase operating income = $53,760 ($251,960 - $198,200)
Percentage increase = $53,760/198,200 * 100
= 27.12%
i. Margin of safety as a percentage of sales:
Margin of safety = (Sales Minus Break-even Sales)/Sales * 100
= ($3,000,000 - $2,225,781)/$3,000,000 * 100
= 3.91%
Explanation:
Price and Cost Data and Calculations:
Relevant range = 200,000 units per month
Sales price per unit: (current monthly sales volume is 120,000 units) $25
Variable costs per unit:
Direct materials 6.60
Direct labor 7.70 + 1.1 = $8.47
Variable manufacturing overhead 2.40
Variable Manufacturing Costs $16.70
Variable selling and administrative expenses 1.90
Total variable costs per unit $18.60 New = $19.37
Total contribution margin:
Sales Revenue ($25 * 120,000) = $3,000,000
Variable cost ($18.60 * 120,000) = 2,232,000
Total Contribution = $768,000
Total fixed costs = $569,800
Operating income = $198,200
New Contribution = $25 - 19.37 = $5.63
Contribution margin ratio = $5.63/$25 * 100 = 22.52%
Monthly fixed expenses:
Fixed manufacturing overhead $241,900
Fixed selling and administrative expenses 327,900
Total fixed costs = $569,800
New fixed costs = $569,800 + $22,500 = $592,300
When your roommate does not consider your external costs in the absence of external costs from playing music, the number of hours played is
Answer:
the number of hours music played is too high
Explanation:
When the roommate does not consider the external cost in absence of external benefit then the hours of music played is too high. The roommate has bought the expensive stereo system so his marginal benefit is lower than the marginal costs. The marginal benefit will equal to the marginal cost when the stereo system is played for many hours.
Fechter Corporation had the following stockholders’ equity accounts on January 1, 2020: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par—Common Stock $200,000, and Retained Earnings $100,000. In 2020, the company had the following treasury stock transactions.
Mar. 1 Purchased 5,000 shares at $8 per share.
June 1 Sold 1,000 shares at $12 per share.
Sept. 1 Sold 2,000 shares at $10 per share.
Dec. 1 Sold 1,000 shares at $7 per share.
Fechter Corporation uses the cost method of accounting for treasury stock. In 2020, the company reported net income of $30,000.
Required:
Journalize the treasury 2020, for net income.
Answer:
Entries and their narrations are posted below
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.
March 1 (Purchased 5,000 shares at $8 per share)
Dr treasury stock $40,000
(5000 x $8)
Cr Cash $40,000
June 1 (Sold 1,000 shares at $12 per share)
Dr Cash $12,000
(1000 x $12)
Cr Treasury stock $8,000
(1000 x $8)
Cr paid-in capital from treasury stock $4,000
Sept. 1 (Sold 2,000 shares at $10 per share)
Dr Cash $20,000
(2000 x $10)
Cr Treasury stock $16,000
(2000 x $8)
Cr paid-in capital from treasury stock $4,000
Dec. 1 Sold 1,000 shares at $7 per share.
Dr Cash $7,000
(1000 x $7)
Dr paid-in capital from treasury stock $1,000
Cr Treasury stock $8,000
(1000 x $8)
g Jefferson & Sons purchase $5,000 of merchandise from the Claremont Company with terms of 3/10, n/30. How much discount is Jefferson & Sons entitled to take if it pays within the allowed discount period of 10 days
Answer:
Discount Received = $150
Explanation:
The terms of the purchase of inventory are 3/10, n/30 which means that Jefferson & Sons can avail a discount of 3% if they pay within the 10 days of purchase of merchandise and the total time allowed for payment for merchandise is 30 days.
If the payment is made within the discount period, Jefferson can avail a discount of,
Discount Received = 5000 * 3%
Discount Received = $150
Emily Lim owns and runs an ice cream parlor in San Diego. Last year, she had sales of $430,000 and an average tax rate of 34%. She spent $43,000 on ingredients, $21,500 on utilities, and $77,400 to rent the premises Emily has a few employees and paid them $86,000 in wages in total. She also paid herself a salary of $64,500 and spent $43,000 to pay for employee benefits A few years ago, Emily borrowed money to buy the ice making equipment. Last year, she paid $21,500 in interest on that loan. Depreciation for the equipment was $12,900 .
1. What was operating income (EBIT) for the year?
2. What was net income for the year?
Answer:
1). Operating Income (EBIT) = Sales - Expenses - Depreciation
Operating Income (EBIT) = $430,000 - ($43,000 - $21,500 - $77,400 - $86,000 - $64,500 - $43,000) - $12,900
Operating Income (EBIT) = $430,000 - $335,400 - $12,900
Operating Income (EBIT) = $81,700
2). Net Income = (EBIT - Interest)*[1 - t]
Net Income = ($81,700-$21,500)*(1-0.34)
Net Income = $60,200*0.66
Net Income = $39,732
Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below.
Production Data
June
Beginning work in process units 0
Units started into production 22,660
Ending work in process units 2,060
Percent complete—ending inventory 40 %
Cost Data
Materials $203,940
Labor 55,208
Overhead 116,184
Total $375,332
Prepare a schedule showing physical units of production.
Answer and Explanation:
The preparation of schedule showing physical units of production is prepared below:-
Rosenthal Company
Physical units of production
For the year June 2020
Units to be accounted for:
Work in process, June 1: -
Started into production 22,660 units
Total units 22,660
Units to be accounted for:
Transferred out 20,600 (22,600 - 2,060)
Work in process, June 30 2,060 units
Total units 22,660 units
The following transactions occur for the Wolfpack Shoe Company during the month of June:
Provide services to customers for $30,000 and receive cash.
Purchase office supplies on account for $20,000.
Pay $7,000 in salaries to employees for work performed during the month.
1. Analyze each transaction.
2. Record the transaction.
3. Post the transaction to T-accounts. Assume the opening balance in each of the accounts is zero.
Answer:
1.
Assets = $30,000 (increase) and Revenue = $30,000 (increase)
Assets = $20,000 (increase) and Liabilities = $20,000 (increase)
Assets = $7,000 (decrease) and Liabilities = $7,000 (decrease)
2.
Cash $30,000 (debit)
Service Revenue $30,000 (credit)
Cash Received for Service Rendered
Office Supplies $20,000 (debit)
Accounts Payable $20,000 (credit)
Office Supplies purchased on credit
Salaries Expense $7,000 (debit)
Cash $7,000 (credit)
Salaries Paid
3.
Cash Account
Debit :
Service Revenue $30,000
Credit :
Salaries Payable $7,000
Balance c/d $23,000
Revenue Account
Debit :
Balance c/d $30,000
Credit :
Cash $30,000
Office Supplies Account
Debit :
Accounts Payable $20,000
Credit :
Balance c/d $20,000
Accounts Payable Account
Debit :
Balance c/d $20,000
Credit :
Office Supplies $20,000
Salaries Expense Account
Debit :
Cash $7,000
Credit :
Balance c/d $7,000
Explanation:
Accounting starts with analyzing transactions and their effects on Assets, Liabilities, Equity, Revenues and Expenses.
The next stage is to record the transactions in Journals. See journals and narrations above.
Then the preparation of Ledger Accounts using the Journal entries.
You want your longtime employees to make sure their retirement plans are best suited for their career stages. You think that most employees make wise investment choices when they join the company. However, you find that few employees make adjustments to their retirement plans as they advance in their careers. You are particularly concerned about employees who have worked at the company for more than ten years and haven't updated their retirement packages. Which of the following statements is most likely to persuade longtime employees to attend the presentation about retirement planning?
a. Choose a retirement package that best matches your career stage. At this presentation,we'll tell you how we can help you manage your longevity risk on your retirement package.
b. Choose a retirement package that best matches your career stage. At this presentation,you'll learn how you can make sure you have enough money for as long as you live.
c. Don't miss this opportunity to maximize your retirement income. At this presentation, we'lltell you how we can help you manage your longevity risk on your retirement package.
Answer:
b. Choose a retirement package that best matches your career stage. At this presentation,you'll learn how you can make sure you have enough money for as long as you live.
Explanation:
In the given scenario we are trying to persuade employees to update their retirement plans to meet the changing situation of their careers.
We want to invite them to a meeting where they can learn the benefits of getting a better retirement plan.
The best approach is to send a message that focuses on them and their role in this process. Not the company's role.
Option B exemplifies this by stating they are learning to how to choose a retirement plan that will provide for them for the rest of their lives.
The other two options uses the statement - we'll tell you how to manage your longevity.
This creates an impression that the company wants to impose their point of view on the employees, and this may not get the expected response from employees.
Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals
a. Cash used for purchase of office supplies, $1,650
b. Cash provided from consulting to customers, $43,100
c. Cash used for purchase of mining equipment, $68,000.
d. Cash provided from long-term borrowing, $55,000
e. Cash used for payment of employee salaries, $23,500.
f. Cash used for payment of office rent, $11,500
g. Cash provided from sale of equipment purchased in c. above, $22,000
h. Cash used to repay a portion of the long-term borrowing in d. above, $37,500
i. Cash used to pay office utilities, $3,800
j. Purchase of company vehicle, paying $9,500 cash and borrowing $14,500
Required:
Calculate cash flows from investing activities. (List cash outflows as negative amounts.)
Answer:
Net cash used in investing activities = ($55,500)
Explanation:
Cash flows from Investing activities
Transaction Amount
Cash used for purchase of mining equipment -$68,000
Cash provided from sale of equipment +$22,000
purchased in c. above
Purchase of company vehicle. -$9,500
Net cash used in investing activities -$55,500
In its first year of operations, Pharoah Company recognized $34,000 in service revenue, $8,100 of which was on account and still outstanding at year-end. The remaining $25,900 was received in cash from customers. The company incurred operating expenses of $17,100. Of these expenses, $12,940 were paid in cash; $4,160 was still owed on account at year-end. In addition, Pharoah prepaid $2,780 for insurance coverage that would not be used until the second year of operations.
Calculate the first year’s net earnings under the cash basis of accounting, and the first year’s net earnings under the accrual basis of accounting.
Cash Basis Accrual Basis
Net Income $enter net income in dollars $enter net income in dollars
Answer:
Cash Basis =$10,180
Accrual Basis=$16,900
Explanation:
Calculation for the net earnings under the cash basis and accrual basis of accounting
CASH BASIS
Cash Basis: $25,900 - $12,940 -$2,780
Cash Basis =$10,180
ACCRUAL BASIS
Accrual Basis: $34,000 - $17,100
Accrual Basis=$16,900
Therefore the net earnings under the cash basis and accrual basis of accounting are:
Cash Basis =$10,180
Accrual Basis=$16,900
what are you being for halloween
Answer:
maybe a fox
Explanation:
Long before a single vote is cast, candidates are hard at work weighing the costs and benefits of running for office. As a part of this calculus, a strong candidate will spend time crafting a winning strategy for each stage of the contemporary campaign process In the following dialogue, a candidate is considering making a run for office in Texas. She is meeting with a political consultant to discuss her chances in the upcoming election. Use the dropdown menus to complete their conversation
CANDIDATE: Thank you for coming to my office today to discuss my viability as a candidate in the upcoming election.
CONSULTANT: You're welcome. I have conducted some research with the help of my staff on your chances, and we feel that if you choose your issues carefully, mobilize groups properly, and advertise persuasively, you could win
CANDIDATE: By "advertise persuasively," are you referring to 1. that I'm ready to sling mud just yet.
a) Character
b) Retail
c) Negative
CONSULTANT: I agree. It's best to get through the primary season without running attack ads Remember, because this is 2. and any registered voter may participate. The best-case scenario is that you'll win a clear majority of support. Options for 2. primary, voters don't have to declare their party identification,
a) A closed
b) An open
c) Non-partisan
CANDIDATE: Absolutely. I want to have a decisive victory and avoid 3. possible. In your opinion, what is the best way to accomplish this?
a) A recall
b) A runoff
c) An initiative
CONSULTANT: Name recognition is essential. Retail politics is still relevant, as is a good field organization. Our main focus, however, needs to be on the fundraising that will make it all possible. Without a lot of money in the bank, you will quickly be written off as unelectable because Texas campaigns are often quite.
a) Lopsided
b) Expensive
c) Inexpensive
Answer:
CANDIDATE: By "advertise persuasively," are you referring to................ that I'm ready to sling mud just yet.
a) Character
CONSULTANT: I agree. It's best to get through the primary season without running attack ads Remember, because this is...................... and any registered voter may participate. The best-case scenario is that you'll win a clear majority of support. Options for...................... primary, voters don't have to declare their party identification,
b) An open
CANDIDATE: Absolutely. I want to have a decisive victory and avoid.............. possible. In your opinion, what is the best way to accomplish this?
b) A runoff
CONSULTANT: Name recognition is essential. Retail politics is still relevant, as is a good field organization. Our main focus, however, needs to be on the fundraising that will make it all possible. Without a lot of money in the bank, you will quickly be written off as unelectable because Texas campaigns are often quite.............................
b) Expensive
Explanation:
Above bolded words are the words that could be used to fill the dialogue inorder to have a complete sentence between the Candidate and the Consultant.
We would like to invest $10,000 into shares of companies XX and YY.
Shares of XX cost $20 per share. The market analysis shows that their expected return is $1 per share with a standard deviation of $0.5.
Shares of YY cost $50 per share, with an expected return of $2.50 and a standard deviation of $1 per share.
Returns from the two companies are independent. In order to maximize the expected return and minimize the risk (standard deviation or variance), is it better to invest
a. All $10,000 into XX
b. All $10,000 into YY
c. $5,000 into each company
Answer:
c. $5,000 into each company
Explanation:
Let X be the actual (random) return from each share of XX, and Y be the actual return from each share of YY. Computing the returns from each option:
A) Investing $10,000 into XX
Given that variance = (standard deviation)²
Since XX cost $20 per share, only 500 shares can be bought.
Expected value = 500 * E(x) = 500 * 1 = 500
Variance = 500² * Var(x) = 500² * 0.5² = 62500
B) Investing $10,000 into YY
Since YY cost $50 per share, only 200 shares can be bought.
Expected value = 200 * E(y) = 200 * 2.5 = 500
Variance = 200² * Var(y) = 200² * 1² = 40000
C) Investing $5,000 into each company
Since XX cost $20 per share and YY cost $50 per share, only 250 shares of XX and 100 shares of YY can be bought.
Expected value = 250 * E(x) + 100 * E(y) = 250 * 1 + 100 * 2.5 = 500
Variance = 250² * Var(x) + 100² * Var(y) = 250² * 0.5² + 100² * 1 = 25625
Since all options have the same expected return, but option C has the lowest variance hence it is the least riskiest. So the best option is C
Tamarisk Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2022.
1. Purchased a 1-year insurance policy on June 1 for $1,980 cash.
2. Paid $6,760 on August 31 for 5 months’ rent in advance.
3. On September 4, received $3,780 cash in advance from a corporation to sponsor a game each month for a total of 9 months for the most improved students at a local school.
4. Signed a contract for cleaning services starting December 1 for $1,040 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.)
5. On December 5, received $1,560 in advance from a gaming club. Determined that on December 31, $495 of these games had not yet been played.
For each of the above transactions, prepare the adjusting journal entry that is required on December 31.
Answer:
Adjusting Journal Entry on December 31, 2021
S/N Accounts&Explanation Debit Credit
1. Insurance Expenses $1,155
($1,980*7/12)
Prepaid Insurance $1,155
2. Rent Expenses $5,408
($6,760*4/5)
Prepaid rent $5,408
3. Unearned service revenue $1,680
($3,780 *4/9)
Service revenue $1,680
4. Maintenance&repair Exp. $1,040
($2,080*1/2)
Prepaid cleaning $1,040
5. Unearned service earned $1,065
($1,560-$495)
Service earned $1,065
The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31.
MOTO HOTEL Trial Balance May 31, 2017
Debit Credit
Cash $2,403
Supplies 2,600
Prepaid Insurance 1,800
Land 14,903
Buildings 70,000
Equipment 16,800
Accounts Payable $4,603
Unearned Rent Revenue 3,300
Mortgage Payable 36,000
Common Stock 59,903
Rent Revenue 9,000
Salaries and Wages Expense 3,000
Utilities Expense 800
Advertising Expense 500
$112,806 $112,806
Other data:
1. Insurance expires at the rate of $450 per month.
2. A count of supplies shows $1,160 of unused supplies on May 31.
3. (a) Annual depreciation is $3,480 on the building. (b) Annual depreciation is $2,880 on equipment.
4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)
5. Unearned rent of $2,580 has been earned.
6. Salaries of $760 are accrued and unpaid at May 31.
Required:
Journalize the adjusting entries on May 31.
Answer:
General Journals
1.
Insurance Expense $450 (debit)
Prepaid Insurance $450 (credit)
Insurance for May expired
2.
Supplies Expenses $1,140 (debit)
Supplies $1,140 (credit)
Supplies used during May
3a.
Deprecation $290 (debit)
Accumulated Depreciation $290 (credit)
Depreciation for building for May
3b.
Deprecation $240 (debit)
Accumulated Depreciation $240 (credit)
Depreciation for equipment for May
4.
Interest Expense $3,000 (debit)
Mortgage Payable $3,000 (credit)
Interest expense on Mortgage for May
5.
Unearned Rent Revenue $2,580 (debit)
Rent Revenue $2,580 (credit)
Rent Revenue earned
6.
Salaries Expense $760 (debit)
Accounts Payable $760 (credit)
Salaries for May owing
Explanation:
Mortgage Interest = 1/12 × $36,000
= $3,000
See the correction/adjusting entries prepared above.
Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Overhead
Measures Cost Product Z9 Product N0 Total
Labor-related DLHs $328,018 6,800 3,400 10,200
Product testing tests 47,747 600 700 1,300
Order size MHs 473,108 4,400 4,700 9,100
$848,873
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:______.
a. $28.88 per DLH.
b. $48.81 per DLH.
c. $53.94 per DLH.
d. $431.44 per DLH.
Answer:
Privott, Inc.
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:______.
$32.16
Explanation:
a) Data and Calculations:
Estimated Expected Activity
Activity Overhead
Measures Cost Product Z9 Product N0 Total
Labor-related DLHs $328,018 6,800 3,400 10,200
Product testing tests 47,747 600 700 1,300
Order size MHs 473,108 4,400 4,700 9,100
$848,873
The activity rate for the Labor-Related activity cost pool:
= Labor Overhead Cost divided by Total Direct Labor Hours
= $328,018/10,200
= $32.16
What do you need to provide in order to get secured credit?
A. An asset
B. A co-signer
C. A credit card
D. A tax refund
Answer:
The answer is A
Explanation:
got it right on Ed.
You need to provide an asset in order to get secured credit. The appropriate response is Option A.
What is an asset?An asset is any resource controlled or owned by a business or economic entity in financial accounting. It is anything that has the potential to generate positive economic value. Assets are ownership values that can be converted into cash.
An asset is defined as anything of value or a valuable resource that can be converted into cash. Individuals, businesses, and governments all own assets. An asset may generate revenue for a company, or the company may benefit in some way from owning or using the asset.
A secured credit is a type of credit that is backed by a asset , which serves as collateral on default of payments.
Hence, the appropriate response is option A.
To learn more about asset
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Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,800 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $662,560 in total. The ending work in process inventory in January consisted of 4,000 units, which were 50% complete with respect to materials and 30% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:
Materials Labor Overhead
Cost per equivalent unit $12.70 $4.00 $6.60
Required:1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.4. Prepare a cost reconciliation for January.
Answer:
1. Units of Ending work in process
4,000 2,000 1,200 1,200
2. Cost of Ending WIP $25,400 $4,800 $7,920
Total for January $38,120
3.Cost of Units transferred
$340,360 $107,200 $176,880
Total in January $624,440
4. Costs to be accounted for $662,560
Total cost accounted for $662,560
Explanation:
1. Compute the equivalent units of materials, labor, and overhead
Equivalent units of production (EUP) in the Ending work in process - Weighted Average method
Units %Material EUP-Material % Labor EUP- Labor % Overhead EUP- Overhead
Units of Ending work in process
4,000 50% 2,000 30% 1,200 30% 1,200
2. Computation for the cost of ending work in process for January
Computation of Ending Work in process inventory
Materials Labor Overhead
Equivalent units 2,000 1,200 1,200
×Cost per equivalent unit $12.70 $4.00 $6.60
=Cost of Ending WIP $25,400 $4,800 $7,920
Total for January $38,120
3. Computation of the cost of the units transferred to the next department
Computation of Cost of the units transferred
Materials Labor Overhead Total for January
Equivalent units (26,800*100%) 26,800 26,800 26,800
×Cost per equivalent unit $12.70 $4.00 $6.60
=Cost of Units transferred
$340,360 $107,200 $176,880 Total in January $624,440
4. Preparation of a cost reconciliation for January.
Cost Reconciliation Report
Costs to be accounted for $662,560
Costs accounted for as follows:
Cost of unit transferred out $624,440
Add Cost of Ending Work in process inventory $38,120
Total cost accounted for $662,560
The value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of the dividends the investor receives each year while holding the stock and the price the investor receives when the stock is sold. The final price includes the original price paid plus an expected capital gain. The actions of the marginal investor determine the equilibrium stock price. Market equilibrium occurs when the stock's price is -Select-less thanequal togreater thanCorrect 1 of Item 1 its intrinsic value. If the stock market is reasonably efficient, differences between the stock price and intrinsic value should not be very large and they should not persist for very long. When investing in common stocks, an investor's goal is to purchase stocks that are undervalued (the price is -Select-abovebelowequivalent toCorrect 2 of Item 1 the stock's intrinsic value) and avoid stocks that are overvalued.
The value of a stock today can be calculated as the present value of -Select-a finitean infiniteCorrect 3 of Item 1 stream of dividends:
This is the generalized stock valuation model. We will now look at 3 different situations where we can adapt this generalized model to each of these situations to determine a stock's intrinsic value:
1. Constant Growth Stocks;
2. Zero Growth Stocks;
3. Nonconstant Growth Stocks.
Constant Growth Stocks:
For many companies it is reasonable to predict that dividends will grow at a constant rate, so we can rewrite the generalized model as follows:
This is known as the constant growth model or Gordon model, named after Myron J. Gordon who developed and popularized it. There are several conditions that must exist before this equation can be used. First, the required rate of return, rs, must be greater than the long-run growth rate, g. Second, the constant growth model is not appropriate unless a company's growth rate is expected to remain constant in the future. This condition almost never holds for -Select-maturestart-upCorrect 4 of Item 1 firms, but it does exist for many -Select-maturestart-upCorrect 5 of Item 1 companies.
Which of the following assumptions would cause the constant growth stock valuation model to be invalid?
The growth rate is zero.
The growth rate is negative.
The required rate of return is greater than the growth rate.
The required rate of return is more than 50%.
None of the above assumptions would invalidate the model.
-Select-Statement aStatement bStatement cStatement dStatement eCorrect 6 of Item 1
Quantitative Problem 1: Hubbard Industries just paid a common dividend, D0, of $1.60. It expects to grow at a constant rate of 2% per year. If investors require a 10% return on equity, what is the current price of Hubbard's common stock? Round your answer to the nearest cent. Do not round intermediate calculations.
$ per share
Zero Growth Stocks:
The constant growth model is sufficiently general to handle the case of a zero growth stock, where the dividend is expected to remain constant over time. In this situation, the equation is:
Note that this is the same equation developed in Chapter 5 to value a perpetuity, and it is the same equation used to value a perpetual preferred stock that entitles its owners to regular, fixed dividend payments in perpetuity. The valuation equation is simply the current dividend divided by the required rate of return.
Quantitative Problem 2: Carlysle Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $2.00 at the end of each year. If investors require an 10% return on the preferred stock, what is the price of the firm's perpetual preferred stock? Round your answer to the nearest cent. Do not round intermediate calculations.
$ per share
Nonconstant Growth Stocks:
For many companies, it is not appropriate to assume that dividends will grow at a constant rate. Most firms go through life cycles where they experience different growth rates during different parts of the cycle. For valuing these firms, the generalized valuation and the constant growth equations are combined to arrive at the nonconstant growth valuation equation:
Basically, this equation calculates the present value of dividends received during the nonconstant growth period and the present value of the stock's horizon value, which is the value at the horizon date of all dividends expected thereafter.
Quantitative Problem 3: Assume today is December 31, 2013. Imagine Works Inc. just paid a dividend of $1.15 per share at the end of 2013. The dividend is expected to grow at 15% per year for 3 years, after which time it is expected to grow at a constant rate of 6% annually. The company's cost of equity (rs) is 9.5%. Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2013)? Round your answer to the nearest cent. Do not round intermediate calculations.
$ per share
Full question attached
Answer and Explanation:
Find attached
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement, which follows:Sales $1,584,000Variable expenses $610,020Contribution margin $973,980Fixed expenses $1.071,000Net operating income (loss) $(97,020)In an effort to isolate the problem, the president has asked for an income statement segmented by division. Accordingly, the Accounting Department has developed the following information:East DivisionSales $434,000Variable expenses as a percentage of sales 53%Traceable fixed expenses $261,000Central DivisionSales $650,000Variable expenses as a percentage of sales 20%Traceable fixed expenses $357,000West DivisionSales $500,000Variable expenses as a percentage of sales 50%Traceable fixed expenses $204,0001. Prepare a contribution format income statement segmented by divisions, as desired by the president.2-a. As a result of a marketing study, the president believes that sales in the West Division could be increased by 14% if monthly advertising in that division were increased by $29,000. Calculate the incremental net operating income.2-b. Would you recommend the increased advertising?
Answer:
Required 1.
Contribution format income statement
East Central West
Division Sales $434,000 $650,000 $500,000
Less Variable Expenses ($230,020) ($130,000) ($250,000)
Controllable Contribution $203,980 $520,000 $250,000
Less Controllable Fixed Costs :
Traceable fixed expenses ($261,000) ($357,000) ($204,000)
Controllable Profit/(Loss) ($57,020) $163,000 $46,000
Required 2.
2a. Calculation of Incremental Net Income - West Division
Incremental Sales ($500,000 × 14%) $70,000
Less Incremental Variable Expenses ($29,000)
Incremental Contribution $41,000
Less Incremental Fixed Expenses $0
Incremental Net Income/ (loss) $41,000
2b. Recommendation
Yes. The Increase in advertising is bringing a positive contribution towards the Company`s loss.
Explanation:
The Company`s loss will reduce by $41,000 to ($56,020) due to increase in advertising.
A financial institution where the users are the owners and generally share a common bond are known as
Answer: Credit unions
Explanation:
Credit union is a nonprofit-making money institution whose members can borrow from deposits at low interest rates and share profits with owners.
Their aim is to serve each member by helping them to get funds at low interest .
Hence, a financial institution where the users are the owners and generally share a common bond are known as Credit union.
A project manager is faced with the following activities and times associated with a building construction for a cancer research facility. Each activity can be crashed at most by 2 weeks. The cost associated with each week time reduction is given below. (note: The 1st crash and 2nd crash costs are associated with the first and second time that a specific activity is crashed. So, if you crash Activity A once, the cost is $9,000, if you have to crash Activity A a second time, the cost is $9,500)
Crash Costs
Activity Immediate Predecessor Normal Time (weeks) 1st crash 2nd crash
A 3 $9,000 $9,500
B A 6 $3,500 $6,000
C А 7 $4,000 $5,000
D B 7 $4,500 $6,000
E C 5 $7,000 $7,500
F D,E 8 $10,000 $12,000
G F 2 $14,000 $16,000
What is the minimum cost to crash this project by 2 weeks?
a. $12,000
b. $9,000
c. $16,000
d. $3,500
Answer:
$12000 ( A )
Explanation:
Calculate The minimum cost to crash this project by 2 weeks
To get the minimum cost to crash this project in 2 weeks we have to first look to crash the activity on the critical path that has the lowest cost of crashing from the first week
critical path: A-B-D-F-G = 25 weeks
After crashing Activity B by 1 week both paths become critical paths hence we need to crash activity C and D by 1 week each so that the paths can crash simultaneously within 2 weeks
therefore the overall crash cost for 2 weeks will be
crash costs of Activities : B + C + D ( 1st crashes)
= 3500 + 4000 + 4500
= $12000
The Excellent Agency specializes in developing advertising campaigns for smaller retail clients. Excellent is hired by Shadowleaf Shoes, a small regional chain of six shoe stores, to develop a slogan and specific ads to be used in a three-month newspaper campaign. Shadowleaf’s marketing director, Manuel Margolis, is adamant while meeting with Excellent's account executive, Kia Chin, that the campaign must be catchy and modern to appeal to a target audience that has an active lifestyle and is between the ages of 18 and 35. More importantly, Margolis wants the slogan to be memorable and unique. Kia Chin, representing Excellent, develops a campaign and presents it to Margolis. The campaign is based on the slogan "Do What You Do in a Shadowleaf Shoe." Visuals depict men’s legs—different sizes, skin colors, etc.—walking, jogging, dancing, and otherwise moving in every type of Shadowleaf’s shoes. Margolis feels that this campaign will target young male consumers, but will also get the attention of others regarding the comfort of the shoes, raising awareness of the Shadowleaf brand. After running the ads, the Excellent Agency wins an advertising effectiveness award. It seems that the surprising and appealing visuals gave the slogan unexpectedly positive social meaning for people of all ages, not just men aged 18 to 35. When Manuel Margolis insists on a measuring stick for the creativity of the campaign, what will the Xcellent Agency tell him, if Kia Chin is smart?
A. "The award alone proves that this ad is loaded with creativity."
B. "If people like the ad, they’ll buy the product."
C. "We met the technical standards for this advertising effort."
D. "Great brands do more than just get attention, they make emotional connections."
Answer:
D. "Great brands do more than just get attention, they make emotional connections."
Explanation:
In the given scenario the aim of Manuel Margolis was to catch attention of clients aged 18 - 35 years. However Kia Chin developed campaign is based on the slogan "Do What You Do in a Shadowleaf Shoe." Visuals depict men’s legs—different sizes, skin colors, etc.—walking, jogging, dancing, and otherwise moving in every type of Shadowleaf’s shoes. After running the ads, the Excellent Agency wins an advertising effectiveness award.
This initiative created an emotional connection with the customer where the visuals attracted them and the comfort of Shadowleaf shoes made them loyal customers.
So the best statement Kia Chin can tell Manuel is "Great brands do more than just get attention, they make emotional connections."
NYJ, Inc. borrowed $800,000 on June 1, 2020, and signed a nine-month note bearing interest at 5%. Principal and interest are payable in full at maturity. In connection with this note, NYJ, Inc. should record interest expense in 2021 in the amount of:
Answer:
Interest expense of $23333.33 should be recorded in 2021 along with a liability of interest payable of $23333.33
Explanation:
The interest expense should be recorded in accordance with the accrual principle of accounting. The accrual or matching principle states that the expenses and revenues should be matched and should be recorded in the period to which they relate to rather then when the cash is paid or received.
Thus, the interest expense relating to 7 months from June 2021 to December 2021 will be recorded as interest expense and interest payable in2021.
Interest expense for 7 months = 800000 * 0.05 * 7/12 = $23333.33
This program consists of three lottery-funded scholarships for Florida high school graduates who demonstrate high academic achievement and enroll in eligible Florida public or private postsecondary institutions.
Financial Aid
Florida Pre-Paid College Plan
College Board
Bright Futures Scholarship
Answer: Bright Future Scholarship
Explanation:
since it’s for only Florida schools this can be the only answer.
Answer:
bright future
Explanation:
Took the test and got it right
Support Department Cost Allocation-Direct Method Charlie's Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on). Production departments include Cutting and Assembly. The Janitorial and Security departments support the Cutting and Assembly departments. The Assembly Department spans about 42,560 square feet and holds assets valued at about $77,520. The Cutting Department spans about 33,440 square feet and holds assets valued at about $126,480. Charlie's Wood Works allocates support department costs using the direct method. If costs from the Janitorial Department are allocated based on square feet and costs from the Security Department are allocated based on asset value.
a. Determine the percentage of Janitorial costs that should be allocated to the Assembly Department.
b. Determine the percentage of Security costs that should be allocated to the Cutting Department.
Answer:
a. 56%
b. 62%
Explanation:
a. Janitorial costs are allocated based on square feet.
Assembly Department Square feet = 42,560
Total area for both departments = 42,560 + 33,440 = $76,000
Percentage of costs
= 42,560/ 76,000
= 56%
b. Security costs are allocated based on asset value.
Cutting Department Asset Value = $126,480
Total asset value for both departments = 77,520 + 126,480 = $204,000
Percentage of costs
= 126,480/ 204,000
= 62%
From a customer's perspective, what are the skills and qualifications that service employees in both large and small organizations must possess
Explanation:
Remember, we are told, "from a customer perspective." Therefore, here are some skills and qualifications needed:
Good human relations: this skill requires that the service employees be friendly, patient, kind, good listeners, etc.Ability to pass information clearly: This means that they should be able to offer assistance to their customers clearly.Time management: Customers want employees who are fast at what they do taking into consideration the customer's time, not sluggish people.Adequate knowledge of service: This means that they should be professionally qualified to deliver quality services.