[accounting] A retailer completed a physical count of ending merchandise inventory. When counting inventory, employees did not include $2,200 of incoming goods shipped by a supplier on December 31 under FOB shipping point. These goods had been recorded in Merchandise Inventory, but they were not included in the physical count because they were in transit. This means shrinkage was incorrectly overstated by $2,200.

Compute the amount of overstatement or understatement for each of the following amounts for this period.

a. ending inventory
b. total assets
c. net income
d. total equity

Answer:

a. Ending inventory  - UNDERSTATED by $2,200

The goods were shipped FOB shipping point which means that they should be included as inventory as soon as they are shipped by the supplier. As they were not, Inventory was understated by $2,200.

b. Total assets  - UNDERSTATED by $2,200

Inventory is part of Assets so if Inventory is understated by $2,200  then so are Total Assets.

c. Net income  - UNDERSTATED by $2,200

Ending Inventory is subtracted from Cost of Goods sold which is then subtracted from Revenue. As ending inventory was understated, that means Cost of Goods sold was Overstated and therefore had the effect of understating Revenue and by extension, Net Income.

d. Total equity - UNDERSTATED by $2,200

Net Income goes to Total equity as Retained earnings so if Net income is understated so also is Total equity.

The amount of understatement for ending inventory, total assets, net income, and total equity is $2200.

From the information given, the amount of overstatement or understatement for each amount for this period will be:

When inventory is understated, the assets will be understated too. Also, when net income is understated, total equity is understated too.

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The following list includes a series of accounts for Sanjeev Corporation, which has been operating for three years. These accounts are listed and numbered for identification. Following the accounts is a series of transactions. For each transaction, indicate the account(s) that should be debited and credited by entering the appropriate account number(s) to the right of each transaction. The first transaction is used as an example.
Account No. Account Title Account No. Account Title
1 Cash 10 Income Taxes Payable
2 Accounts Receivable 11 Common Stock
3 Supplies 12 Additional Paid-in Capital
4 Prepaid Expenses 13 Retained Earnings
5 Equipment 14 Service Revenue
6 Patents 15 Operating Expenses (wages, supplies)
7 Accounts Payable 16 Income Tax Expense
8 Note Payable 17 Interest Expense
9 Wages Payable

Southwest Pediatrics has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $116,000; Allowance for Uncollectible Accounts = $1,900 (debit). On December 31, 2021, Southwest estimates uncollectible accounts to be 15% of accounts receivable.
Required:
1. Record the adjusting entry for uncollectible accounts on December 31, 2021.
2. Determine the amount at which bad debt expense is reported in the income statement and the allowance for uncollectible accounts is reported in the balance sheet.
3. Calculate the net realizable value of accounts receivable.

What should be the initial markup percent in a department that has the following figures: Net sales $320,000 Markdowns 7,800 Expenses 105,000 Employee discounts 1,950 Shortages 2,750 Alterations 1,025 Cash discounts 950 Profit 7.5%

Slaq Computer Company manufactures notebook computers. The economic lifetime of a particular model is only four to six months, which means that Slaq has very little time to make adjustments in production capacity and supplier contracts over the production run. For a soon-to-be-introduced notebook, Slaq must negotiate a contract with a supplier of motherboards. Because supplier capacity is tight, this contract will specify the number of motherboards in advance of the start of the production run. At the time of contract negotiation, Slaq has forecasted that demand for the new notebook is normally distributed with a mean (�) of 10,000 units and a standard deviation (�) of 2,500 units. The net profit from a notebook sale is $500 (note that this includes the cost of the motherboard, as well as all other material; production, and shipping costs). (Hint: �! = $500) Motherboards cost $200 and have no salvage value (i.e., if they are not used for this particular model of notebook, they will have to be written off). (Hint: �" = $200) Use the news vendor model to compute a purchase quantity of motherboards that balances the cost of lost sales and the cost of excess material.

At the end of each month, a company pays its employees. Payroll information below is for January, the first month of the fiscal year. Assume that none of the employees exceeds the Federal unemployment tax maximum salary of $7,000 in January. Salaries $ 1,000,000 Federal and state income taxes withheld 170,000 Federal unemployment tax rate 0.80 % State unemployment tax rate (after FUTA deduction) 5.40 % Social Security (FICA) tax rate 7.65 %

Required:
Record salaries expense and payroll tax expense for the January pay period.

The ultimate goal of operations management is to provide high-quality goods and services instantaneously in response to customer demand. Over the years, low cost often came at the expense of quality and flexibility. Furthermore, suppliers didn't always deliver when they said they would, so manufacturers had to carry large inventories of raw materials and components to keep producing. Such inefficiencies made U.S. companies vulnerable to foreign competitors who were using more advanced production techniques As a result of new global competition, companies have had to make a wide variety of high-quality custom-designed products at a very low cost. Something had to change on the production floor to make that possible. Several major developments have made U.S.companies more competitive:
(1) computer-aided design and manufacturing
(2) flexible manufacturing,
(3) lean manufacturing, and
(4) mass customization,
(5) CAD
(6) CAM
Match the company or role with the most appropriate manufacturing technique.
Dress designer: In addition to helping in the design of products, the use of this system allows designers to work in three dimensions
Shoe designer: The manufacturer programs the computer to make a simple design change, and then that change is readily Incorporated into production
Purse designer: Software programs unite these two computer-aided support systems. While the software is expensive, it cuts as much as 80 percent of the time needed to program machines to make parts.
Motor starters: Orders come in daily and, within 24 hours, the company's machines and robots manufacture, test, and package the starters-which are untouched by human hands. This system is so efficient it can even accommodate a special order (even a single item) in the assembly without slowing down the process.
Toyota corporation: This company utilizes the strategy of using half the human effort, halving the defects in the finished product, using one-third of the normal engineering effort, using half the floor space, and carrying 90 percent less inventory
Dell computers: Dell has set up its manufacturing process so that all its computers can be quickly assembled to individual customer orders.

Marconi Co. has the following information available for the current year: Net Sales $ 765,000 Bad Debt Expense 45,000 Accounts Receivable, Beginning of Year 135,000 Accounts Receivable, End of Year 70,000 Allowance For Doubtful Accounts, Beginning of Year 57,000 Allowance For Doubtful Accounts, End of Year 77,000 What was the amount of write-offs during the year?

Which of the following statements about the operation of a C corporation is correct?

On September 1 of the current year, Scots Company experienced a flood that destroyed the company's entire inventory. Because the company had not completed its month end reporting for August, it must estimate the amount of inventory lost using the gross profit method. At the beginning of August, the company reported beginning inventory of $215,950. Inventory purchased during August was $192,730. Net sales for the month of August were $543,500. Assuming the company's typical gross profit ratio is 40%.

Required:
Estimate the amount of inventory destroyed in the flood.

Pilot plus Pens is deciding when to replace its old machine. The old machine’s current salvage value is $2 million. Its current book value is $1 million. If not sold, the old machine will require maintenance costs of $400,000 at the end of the year, for the next five years. Depreciation on the old machine is $200,000 per year. At the end of five years, the old machine will have salvage value of $200,000 and a book value of $0. A replacement machine costs $3 million now and requires maintenance costs of $500,000 at the end of each year during its economic life of five years. At the end of five years, the new machine will have a salvage value of $500,000. It will be fully depreciated by the straight-line method. In five years, a replacement machine will cost $3,500,000. Pilot will need to purchase this machine regardless of what the choice it makes today. The corporate tax rate is 34% and the appropriate discount rate is 12%. The company is assumed to earn sufficient revenues to generate tax shields from depreciation. Should Pilot Plus replace the old machine now or at the end of five years? no excel and financial calculator, so please show the answer by hand written and how u get to the numbers

Nature's Garden Inc. produces wood chips, wood pulp, and mulch. These products are produced through harvesting trees and sending the logs through a wood chipper machine. One batch of logs produces 20,304 cubic yards of wood chips, 14,100 cubic yards of mulch, and 9,024 cubic yards of wood pulp. The joint production process costs a total of $32,000 per batch. After the split-off point, wood chips are immediately sold for $25 per cubic yard while wood pulp and mulch are processed further. The market value of the wood pulp and mulch at the split-off point is estimated to be $22 and $24 per cubic yard, respectively. The additional production process of the wood pulp costs $5 per cubic yard, after which it is sold for $30 per cubic yard. The additional production process of the mulch costs $4 per cubic yard, after which it is sold for $32 per cubic yard.
Allocate the joint costs of production to each product using the net realizable value method.
Joint Product Allocation
Wood chips $
Wood pulp
Mulch
Totals $

Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography.
1. What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? 2. If you expanded and hired additional people to help you, might that give rise to agency problems?3. Suppose you need additional capital to expand and you sell some stock to outside investors. If you maintain enough stock to control the company, what type of agency conflict might occur?4. List three provisions in the corporate charter that affect takeovers.5. Briefly describe the use of stock options in a compensation plan. What are some potential problems with stock options as a form of compensation?6. What is block ownership? How does it affect corporate governance?7. Briefly explain how regulatory agencies and legal systems affect corporate governance.

Obtain estimates of daily relatives for the number of customers at a restaurant for the evening meal, given the following data.
Day Number Served Day Number Served
1 80 15 84
2 75 16 78
3 78 17 83
4 95 18 96
5 130 19 135
6 136 20 140
7 40 21 44
8 82 22 87
9 77 23 82
10 80 24 88
11 94 25 99
12 131 26 144
13 137 27 144
14 42 28 48
a. Use the centered moving average method. (Hint: Use a seven-day moving average.) (Round your intermediate calculations and final answers to 4 decimal places.) X⎯⎯⎯ 1's 2's 3's 4's 5's 6's 7's
b. Use the SA method. (Round your intermediate calculations to 3 decimals and final answers to 4 decimals.) SA Index 1's 2's 3's 4's 5's 6's 7's

And the circular flow model which part of the economy provides products to households

A man invests his savings in two accounts, one paying 6 percent and the other paying 10 percent simple interest per year. He puts twice as much in the lower-yielding account because it is less risky. His annual interest is 4202 dollars. How much did he invest at each rate?

Slamburger's sells three cheeseburgers for every three regular hamburgers. A cheeseburger sells for $4.75 with a variable cost of $2.00. A regular hamburger sells for $4.25 with a variable cost of $1.75. What is the weighted average contribution margin

Player Corporation purchased 100 percent of Scout Company's common stock on January 1, 20X5, and paid $28,000 above book value. The full amount of the additional payment was attributed to amortizable assets with a life of eight years remaining at January 1, 20X5. During 20X5 and 20X6, Scout reported net income of $33,000 and $6,000 and paid dividends of $15,000 and $12,000, respectively. Player uses the equity method in accounting for its investment in Scout and reported a balance in its investment account of $161,000 on December 31, 20X6.Required:Compute the amount paid by Player to purchase Scout shares.

U-RIDE, Inc. currently produces the electric engines that are used in golf carts made and sold by the Company. Electco has offered to sell the electric engines to U-RIDE at a price of $235 each.

Current production information follows:
Unit-level material and labor $200
Facility-level depreciation of manufacturing equip. $5,500 /month
Product-level engine production supervisor's salary $2,500 /month
Annual facility-level utilities $17,500

U-RIDE is currently operating profitably producing and selling 2,000 engines a year using 90% of its manufacturing capacity. Which of the following is true?

a. U-RIDE should make the engines for cost savings of $25 per unit.
b. Buying the units would increase U-RIDE's cost by $13 per unit.
c. U-RIDE has avoidable costs of greater than $200 per unit and should therefore buy the engines.
d. Buying the units would increase profitability by $38 per unit.

Buying the engines will free up manufacturing capacity that could be used to make a new economy line golf cart that would produce an additional $65,000 profit per year. U-RIDE is currently operating profitably producing and selling 2,500 engines annually. Based on this information, which of the following is true?

a. The $36,000 is not relevant because it is an estimate.
b. Buying the units would increase U-RIDE's cost by $13 per unit.
c. U-RIDE has avoidable costs of less than $200 per unit and should therefore buy engines.
d. The cost of buying the engines is $5 per unit less than the relevant cost of making the units.

Reporting an Income Statement, Reporting a Statement of Retained Earnings, Reporting a Balance Sheet and Recording Closing Journal Entries [LO 4-4, LO 4-5]
[The following information applies to the questions displayed below.]
The Sky Blue Corporation has the following adjusted trial balance at December 31.
Debit Credit
Cash $1,230
Accounts Receivable 2,000
Prepaid Insurance 2,300
Notes Receivable (long-term) 3,000
Equipment 12,000
Accumulated Depreciation $ 2,600
Accounts Payable 5,420
Salaries and Wages Payable 1,000
Income Taxes Payable 2,900
Deferred Revenue 600
Common Stock 2,400
Retained Earnings 1,000
Dividends 300
Sales Revenue 42,030
Rent Revenue 300
Salaries and Wages Expense 21,600
Depreciation Expense 1,300
Utilities Expense 4,220
Insurance Expense 1,400
Rent Expense 6,000
Income Tax Expense 2,900
Total $58,250 $ 58,250
M4-17
Prepare closing journal entries on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Alpha Industries is considering a project with an initial cost of $8.2 million. The project will produce cash inflows of $1.93 million per year for 6 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.67% and a cost of equity of 11.31%. The debt-equity ratio is 0.62 and the tax rate is 21%. What is the net present value of the project

On an average hourly basis, how much does Butcher Enterprises spend on wages and benefits, respectively, in dollars?

If the risk-free rate of return is 6%, and if a risky asset is available with a return of 9% and a standard deviation of 3%, what is the maximum rate of return you can achieve if you are willing to accept a standard deviation of 2%

At the end of fiscal year 2018, Haley Legal Services and Delicious Doughnuts reported these adapted amounts on their balance sheets (all amounts in millions except for par value per share): EEB (Click the icon to view the balance sheet data.) Assume each company issued its stock in a single transaction. Journalize each company's issuance of its stock, using its actual account titles. Explanations are not required. (Enter amounts in millions. Record debits first, then credits. Exclude explanations from any journal entries.) Begin by joumalizing the Haley Legal Services common stock issuance.
Journal EntryData Table Accounts Debit Credit Milions Haley Legal Services Common stock, $0.01 par value, 2,400 shares issued S Additional paid-in capital 24 17,500 Delicious Doughnuts:
Common stock, no par value, 66 shares issued S 294

155 million people were working in the US in 2016. If 42% of all people working were baby boomers, how many were working in 2016? If 15% of the baby boomers retire within 10 years, how many jobs will this represent from 2016 employment?​

"16. An investment promises to pay $6,000 at the end of each year for the next five years and $4,000 at the end of each year for years 6 through 10. a. If you require a 12 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment?"

Washington State Fisheries, Inc., processes salmon for various distributors. Two departments, processing and packaging, are involved. Data relating to tons of salmon sent to the processing department during May follow:
Percent Completed Tons of Salmon Direct Materials Conversion
Work-in-process inventory, May 1 1,960 80 % 70 %
Work-in-Process inventory, May 31 3,340 50 % 30 %
Started processing during May 8,150
Required:
1. Calculate the number of tons completed and transferred out during the month.
2. Calculate the number of equivalent units for both direct materials and conversion for the month of May, assuming that the company uses the weighted-average method.
3. How would your answer in requirement 2 change if the percentage of completion in ending inventory were as follows:
direct materials 30%, conversion 40%

For each item below, indicate whether a debit or credit applies.

a. Decrease in Notes Payable select an option
b. Increase in Dividends select an option
c. Increase in Common Stock select an option
d. Increase in Unearned Rent Revenue select an option
e. Decrease in Interest Payable select an option
f. Increase in Prepaid Insurance select an option
g. Decrease in Salaries and Wages Expense select an option
h. Decrease in Supplies select an option
i. Increase in Revenues select an option
j. Decrease in Accounts Receivable

Higgs Bassoon Corporation is a custom manufacturer of bassoons and other wind instruments. Its current value of operations, which is also its value of debt plus equity, is estimated to be $200 million. Higgs has $110 million face value, zero coupon debt that is due in 3 years. The risk-free rate is 5%, and the standard deviation of returns for similar companies is 60%. The owners of Higgs Bassoon view their equity investment as an option and would like to know the value of their investment.

Required:
Using the Black-Scholes Option Pricing Model, how much is the equity worth?

why is entrepreneurship important to society?​

what is the difference between accrual and realization concept in accounting​