Assume year 1 is 2019 and by the beginning of year 4, the Sanchezes have paid down the principal amount of the loan to $500,000. In year 4, they borrow an additional $100,000 through a loan secured by the home in order to finish their basement. The new loan carries a 7 percent interest rate and is termed a "home equity loan" by the lender. What amount of interest can the Sanchezes deduct on the $100,000 loan?

Answers

Answer 1

Answer: $7,000

Explanation:

Interest deduction is allowed by the IRS if the loan was taken to improve the home. However, for married couples, only loans below the $750,000 limit can have their interest deducted.

The Sanchezes have paid off $500,000 of the principal of their previous loan so we will assume that was enough to get this new loan under the $750,000 limit.

Allowable interest deduction will therefore be:

= 100,000 * 7%

= $7,000


Related Questions

A new machine costing $1,800,000 cash and estimated to have a $60,000 salvage value was purchased on January 1. The machine is expected to produce 600,000 units of product during its 8-year useful life. Calculate the depreciation expense in the first year under the following independent situations: The company uses the units-of-production method and the machine produces 70,000 units of product during its first year. The company uses the double-declining-balance method. The company uses the straight-line method.

Answers

Answer:

Results are below.

Explanation:

Giving the following formula:

Purchase price= $1,800,000

Salvage value= $60,000

Useful life= 8 years or 600,000 units

To calculate the annual depreciation using the units-of-production method, we need to use the following formula:

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= [(1,800,000 - 60,000) / 600,000]*70,000

Annual depreciation= $203,000

To calculate the annual depreciation using the double-declining balance, we need to use the following formula:

Annual depreciation= 2*[(book value)/estimated life (years)]

Annual depreciation= 2*[(1,800,000 - 60,000) / 8]

Annual depreciation= $435,000

Finally, the annual depreciation using the straight-line method:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation=  (1,800,000 - 60,000) / 8

Annual depreciation= $217,500

Looking through pages to find information that you have already identified is know as:
A) scanning
B) skimming
C) integration
D)previewing

Answers

A.

because as you're passing the page you are scanning it and looking for the answer

Answer: scanning

Explanation: i said so

List a minimum of sources of information in Australia that you could access to help you facilitate compliance with relevant international finance regulations.

Answers

Answer:

The answer is below

Explanation:

Some of the sources of information in Australia that you could access to help you facilitate compliance with relevant international finance regulations are:

1. Reserve Bank of Australia - RBA

2. Australian Prudential Regulation Authority - APRA

3. Australian Securities and Investments Commission - ASIC

4. Australian Competition and Consumer Commission - ACCC

5. Australian Communications and Media Authority - ACMA

6. Superannuation and Financial Services Industry - Royal Commission

7. Australian Financial Services Licence - AFSL

8. Australian Market Licence - AML

9. Clearing and Settlement - CS

10. Australian Consumer Law - ACL

Northwest Clothing Supply has the following transactions during the year related to stockholders' equity:

January 1 Issues 3,000 shares of no-par value common stock for $22 per share.
March 15 Issues 900 shares of $20 par value preferred stock for $23 per share.
December 1 Declares a cash dividend of $1 per share to all stockholders of record (both common and preferred) on December 15.
December 15 Northwest Clothing Supply has fixed the Record Date for both common and preferred shares as December 15.
December 31 Pays the cash dividend declared on December 1.

Required:
Record each of these transactions.

Answers

Answer:

January 1

Debit : Cash $66,000

Credit : Common Stock (3,000 x $22) $66,000

March 15

Debit : Cash $20,700

Credit : Preferred Stock ($20 x 900) $18,000

Credit : Preferred Stock Paid in excess of Par  ($3 x 900) $ $2,700

December 1

Debit : Dividends ($3000 + $900) $3,900

Credit : Shareholders for dividends $3,900

December 15

No Journal entry required here !

December 31

Debit : Shareholders for dividends $3,900

Credit : Cash $3,900

Explanation:

It is very important to identify the Par Value and No Par Value Stock issues.

Par Value Stock issues are sometimes issued above their Par so a Reserve - Paid In Excess of Par has to be created.

No Par Value issued are simply recorded at paid up or issue price.

what problems seem to emerge when an organization gets larger

Answers

Answer:

Difficulties with sharing due to the overpopulation

Explanation:

I'm so sorry I need these points, plz forgive me

What is Gnp gap? in economics​

Answers

Answer:

Gross National Product (GNP) is the total value of all finished goods and services produced by a country's citizens in a given financial year, irrespective of their location.

Hope that helps! :)

Explanation:

On January 1, a company issued and sold a $320,000, 5%, 10-year bond payable, and received proceeds of $315,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the first interest payment is:

Answers

Answer:

$315,250

Explanation:

total discount on bonds payable = $320,000 - $315,000 = $5,000

amortization of bond discount per coupon payment = $5,000 / 20 = $250

bonds carrying value after the first coupon payment is made = $315,000 + $250 = $315,250

Dr Interest expense 8,250

    Cr Cash 8,000

    Cr Discount on bonds payable 250

​J&J Materials and Construction Corporation produces mulch and distributes the product by using dump trucks. The company uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the​ company's manufacturing overhead​ data: Budgeted output units 710 truckloads Budgeted fleet hours 568 hours Budgeted variable manufacturing overhead costs for 710 loads $89,460 Actual output units produced and delivered 660 truckloads Actual fleet hours 468 hours Actual variable manufacturing overhead costs $85,460 What is the​ flexible-budget amount for variable manufacturing​ overhead? (Round intermediary calculations two decimal places and your final answer to the nearest whole​ dollar.)

Answers

Answer:

$3,999.04 F

Explanation:

Calculation to determine the​ flexible-budget amount for variable manufacturing​ overhead?

First step is to calculate the Budgeted fleet hours per unit

Budgeted fleet hours per unit = 568 ÷ 710

Budgeted fleet hours per unit = 0.8

Second step is to calculate the Budgeted fleet hours allowed for 660 truckloads

Budgeted fleet hours allowed for 660 truckloads

Budgeted fleet hours allowed for 660 truckloads = 660 × 0.8

Budgeted fleet hours allowed for 660 truckloads = 528

Third step is to calculate the Budgeted variable overhead rate per machine hour

Budgeted variable overhead rate per machine hour = $89,460 ÷ 528

Budgeted variable overhead rate per machine hour = $169.43

Fourth step is to calculate the Flexible-budget amount

Flexible-budget amount = 528× $169.43

Flexible-budget amount= $89,459.04

Now let calculate the Flexible-budget variance

Flexible-budget variance = $85,460 − $89,459.04

Flexible-budget variance= $3,999.04 F

Therefore the Flexible-budget variance is $3,999.04 F

Dunn Sporting Goods sells athletic clothing and footwear to retail customers. Dunn's accountant indicates that the firm's operating cycle averages 6 months. At December 31, 2019, Dunn has the following assets and liabilities:

1. Prepaid rent in the amount of $8,500. Dunn's rent is $500 per month.
2. A $9,700 account payable due in 45 days.
3. Inventory in the amount of $46,230. Dunn expects to sell $38,000 of the inventory within 3 months. The remainder will be placed in storage until September 2020. The items placed in storage should be sold by November 2020.
4. An investment in marketable securities in the amount of $1,900. Dunn expects to sell $700 of the marketable securities in 6 months. The remainder are not expected to be sold until 2022.
5. Cash in the amount of $1,050.
6. An equipment loan in the amount of $60,000 due in March 2024. Interest of $4,500 is due in March 2020 ($3,750 of the interest relates to 2019, with the remainder relating to the first 3 months of 2020).
7. An account receivable from a local university in the amount of $2,850. The university has promised to pay the full amount in 3 months.
8. Store equipment at a cost of $9,200. Accumulated depreciation has been recorded on the store equipment in the amount of $1,250.

Required:
Identify Current Assets and Liabilities.

Answers

Answer:

Dunn Sporting Goods

Identifying Current Assets and Current Liabilities

Current Assets:

1. Prepaid Rent             $6,000

3. Inventory                $46,230

4. Marketable securities $700

5. Cash                         $1,050

7. Account receivable $2,850

Current Liabilities:

2. Accounts payable $9,700

6. Interest  Payable  $4,500

Explanation:

a) Data and Analysis:

1. Prepaid Rent (Current Assets) $6,000 Prepaid Rent (Long-term Assets) $2,500 in the amount of $8,500. Dunn's rent is $500 per month.

2. Account payable $9,700

3. Inventory (Current assets) $46,230.

4. Short-term marketable securities $700 Long-term Investments $1,200  

5. Cash (current assets) $1,050.

6. Loan Payable (long-term) $60,000 due in March 2024. Interest  Payable (current liabilities) $4,500

7. Account receivable (Current assets) $2,850

8. Store equipment $9,200. Accumulated depreciation  $1,250.

b) Current assets are short-term assets expected to be used up within 12 months while current liabilities are short-term assets expected to be settled within 12 months.

what motivates engineer in an organization​

Answers

yes kaiicisiicscodx

critically discuss two emotional / personal benifits that will motivate you to find a job​

Answers

Having a job not only helps people to earn money to live day by day but also have some benefits in the personal and emotional aspect.


Better Health Inc. is evaluating two capital investments, each of which requires an up-front (Year 0) expenditure of $1.5 million. The projects are expected to produce the following net cash inflows: Year Project A Project B 1 $500,000 $2,000,000 2 $1,000,000 $1,000,000 3 $2,000,000 $600,000 The Discount Rate is 10% assuming a normal risk project. You may use Excel on your computer to answer this Question. Respondus has been removed from this Exam so you have access to Excel. Assume Project B is more 30% more risky than Project A and therefore would have a Discount Rate of 13% rather than 10%. What is the new NPV for Project B

Answers

Answer:

$1,468,888.29

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow in year 0 = $-1.5 million

Cash flow in year 1 = $2,000,000  

Cash flow in year 2 = $1,000,000  

Cash flow in year 3 = $600,000

I = 13%

NPV = $1,468,888.29

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

In June 2019, the average price of a cup of coffee in Venezuela was 6,500 bolivars; in June 2018, the average price was just 8 bolivars. This represents an 81,150% increase in the price of a cup of coffee for Venezuelans, who have seen similarly dramatic increases in the prices of nearly everything they buy. How might this experience of inflation impact inflation going forward

Answers

Answer:

d. causes inflation expectations to rise, which in turn causes still higher inflation

Explanation:

Missing word "Higher inflation: a. makes most goods and service unaffordable, causing a decrease in demand that leads to falling prices, b. creates a price bubble that ultimately bursts, causing the prices of most goods and services to fall, c. causes inflation expectations to fall, which in turn causes inflation to fall d. causes inflation expectations to rise, which in turn causes still higher inflation"

This inflation experience will most likely will continue increase using the experience as yardstick and this will be a case of hyper inflation where the inflation rates are so high that is goes out control in economic perspective. In hyper-inflation situation, prices of goods and services may increase and continue to do in hourly basis.

After researching Best Buy common stock, Sally Jackson is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 150 shares of Best Buy. At the time of the sale, a share of common stock had a value of $53. Three months later, Best Buy is selling for $55 a share, and Sally instructs her broker to cover her short transaction. Total commissions to buy and sell the stock were $82. What is her profit for this short transaction

Answers

Answer:

Total profit after commission will be "$218".

Explanation:

The given values are:

Share of common stock,

= $53

Total commissions to sell and buy,

= $82

Now,

The profit from buying and selling will be:

= [tex]55-53[/tex]

= [tex]2[/tex] ($)

Total profit will be:

= [tex]2\times 150[/tex]

= [tex]300[/tex] ($)

hence,

The profit after reducing commission will be:

= [tex]300-82[/tex]

= [tex]218[/tex] ($)

The National Credit Union Administration provides coverage up to $250,000 per individual depositor at each credit union.
T or f

Answers

Answer:

True

Explanation:

It is TRUE that The National Credit Union Administration provides coverage up to $250,000 per individual depositor at each credit union.

This is evident in the fact that the National Credit Union Administration posted on their website that "All deposits at federally insured credit unions are protected by the National Credit Union Share Insurance Fund, with deposits insured up to at least $250,000 per individual depositor."

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $485,060 and direct labor hours would be 48,506. Actual factory overhead costs incurred were $508,253, and actual direct labor hours were 52,943. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year

Answers

Answer:

$21,177 overapplied

Explanation:

Applied Overheads = Predetermined overhead rate x Actual activity

where,

Predetermined overhead rate = Budgeted Overheads ÷ Budgeted Activity

                                                    = $485,060 ÷ 48,506 hours

                                                    = $10 / direct labor hour

therefore,

Applied Overheads = $10 x 52,943 = $529,430

Since, Applied Overheads ($529,430) > Actual Overheads ($508,253), overheads have been over-applied by $21,177

Conclusion :

The amount of overapplied  manufacturing overhead at the end of the year is $21,177

Place the three components of aggregate demand in order of relative size, starting with the one representing the largest component of GDP.

a. net exports
b. consumption
c. investment

Answers

Answer:

The order, in terms of relative size, will be as follows:

(b) Consumption

(c) Investment

(a) Net Exports

Explanation:

The aggregate demand consists of the sum of four components which are government spending, consumption, investment and net exports.

Amongst which the consumption is the largest component of all, as it represents the total income spent by an individual or household on the goods and services in the economy. It's calculation is dependent of several factors such as disposable income, interest rates and future economic conditions.

Investment is the second largest component, after consumption, as shifts in it's value results in improvement/fall on the quality and quantity factors of production in the long run.

In terms of size when compared with the other components, the Net Exports stands as the smallest component. Practically due to the fact that it is calculated after deducting imports from exports.

Two investment centers at Marshman Corporation have the following current-year income and asset data: Investment Center A Investment Center B Investment center income $ 470,000 $ 590,800 Investment center average invested assets $ 2,560,000 $ 2,110,000 The return on investment (ROI) for Investment Center B is:

Answers

Answer:

28 %

Explanation:

The Return On Investment (ROI) is synonymous with the Accounting Rate of Return (ARR). Where the ARR is focused on future estimates (an e ante measure), ROI is focused on historic after the event (ex post) performance measure.

Return On Investment (ROI) = Divisional Profit Contribution / Assets employed in the division x 100

therefore,

Investment Center B

Return On Investment (ROI) = $ 590,800 / $ 2,110,000 x 100

                                                 = 28 %

The return on investment (ROI) for Investment Center B is 28 %

You are risk managers of your own life (student life). Identify your loss exposures (>10), assess them and make a map

Answers

The answer is in the question click this link to find out the answer phs.dcsdk12.org good luck!

Please comment on the specific risks (if any) that are caused by the following combination of tasks. a. A sales manager, who works on commission based on gross sales, approves credit and has the authority to write off uncollectible accounts. b. The warehouse clerk, who has custodial responsibility over inventory in the warehouse, updates the inventory subsidiary ledger and prepares an inventory summary for the general ledger department. c. The billing clerk bills customers and records sales in the sales journal d. The shop foreman approves and submits time cards to timekeeping and distributes paychecks to employees. e. The accounting clerk posts to individual account receivable subsidiary accounts and performs the reconciliation of the subsidiary ledger and the general ledger control account.

Answers

Answer:

bla bla bla

Explanation:

On January 1, 2017, Yeager Company purchased some equipment for $4,700. The estimated life was five years, after which there would be a residual value of $600. On January, 1, 2019, the estimated total economic life from the original purchase date was changed to six years and the estimated residual value was increased by $100. Assuming straight line depreciation method is used by the company, what is the amount of depreciation expense for the year 2019

Answers

Answer:

$575

Explanation:

Straight line method charges a fixed amount of depreciation using the formula :

Depreciation expense = (Cost - Residual Value) ÷ Useful Life

2017

Deprecation expense = $820

2018

Deprecation expense = $820

2019

Calculate depreciable amount :

New depreciable amount = Previous Depreciable Amount - Accumulated depreciation - Increase in Residual amount

                                           = $4,700 - $600 - $1,640 - $100

                                           = $2,300

Determine the New useful life :

Since 2 years have already expired, the new useful life out of the revised 6 years is 4.

Depreciation Expense calculation :

Depreciation Expense = Depreciable Amount ÷ Useful Life

                                      = $2,300 ÷ 4

                                      = $575

Conclusion :

The amount of depreciation expense for the year 2019 is $575

Calculating Lower-of-Cost-or-Net Realizable Value
Anne Traylor Inc. has the following information for its six inventory items on June 30, 2020. Determine the inventory cost to report on the balance sheet on June 30, 2020, assuming that the company applies the lower-of-cost-or-net realizable value rule to each individual inventory item.
Inventory Item Quantity Selling Price Cost to Sell Inventory Cost Lower-of-Cost-or-
Net Realizable Value
#100 70 $24 $5 $16
#101 100 22 4 17
#115 50 35 6 31
#118 120 40 6 29
#120 25 18 4 10
#128 45 30 8 26
Total

Answers

Answer:

Anne Traylor Inc.

Calculating Lower-of-Cost-or-Net Realizable Value

The inventory cost to report on the balance sheet on June 30, 2020, assuming that the company applies the lower-of-cost-or-net realizable value rule to each individual inventory item is:

= $8,990.

Explanation:

a) Data and Calculations:

Inventory  Quantity   Selling  Cost     NRV    Inventory   Lower-of-Cost-or-

Item                            Price    to Sell                  Cost     Net Realizable Value

#100              70          $24      $5       $19         $16         $1,120 ($16 * 70)

#101             100            22         4         18            17           1,700 ($17 * 100)

#115              50            35         6        29            31          1,450 ($29 * 50)

#118             120            40         6        35           29         3,480 ($29 * 120)

#120             25             18         4         14            10            250 ($10 * 25)

#128             45            30         8        22           26            990 ($22 * 45)

Total                                                                                $8,990

Kenny, Inc. is looking at setting up a new manufacturing plan in South Park. The company bought some land six years ago for $5.3 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. The land would net $7.4 million if it were sold today. The company now want to build its new plant on this land. The plant will cost $26.5 mill to build, and the site requires $1.32 mill worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? (answer in millions i.e. 12.63 for $12.63 million)

Answers

Answer:

$35.22 million

Explanation:

Calculation to determine the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project

Value of land today $7.4 million

Add Cost of Building $26.5 million

Add Grading cost $1.32 million

Cash flow $35.22 million

($7.4 million+$26.5 million+$1.32 million)

Therefore the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project is $35.22 million

Exercise 9-5 Writing off receivables LO P2 On January 1, Wei Company begins the accounting period with a $30,000 credit balance in Allowance for Doubtful Accounts. On February 1, the company determined that $6,800 in customer accounts was uncollectible; specifically, $900 for Oakley Co. and $5,900 for Brookes Co. Prepare the journal entry to write off those two accounts. On June 5, the company unexpectedly received a $900 payment on a customer account, Oakley Company, that had previously been written off in part a. Prepare the entries to reinstate the account and record the cash received.

Answers

Answer:

Wei Company

1. Journal Entries:

February 1:

Debit Allowance for Doubtful Accounts $6,800

Credit Accounts Receivable $6,800

To write-off the uncollectibles accounts of Oakley Co., $900 and Brookes Co., $5,900.

June 5:

Debit Accounts Receivable (Oakley Co.) $900

Credit Allowance for Doubtful Accounts $900

To reinstate the accounts of Oakley Co.

Debit Cash $900

Credit Accounts Receivable (Oakley Co.) $900

To record the receipt of cash from Oakley Co.

Explanation:

a) Data and Analysis:

January 1: Beginning balance of Allowance for Doubtful Accounts $30,000 credit

February 1: Allowance for Doubtful Accounts $6,800 Accounts Receivable $6,800 (Oakley Co., $900 and Brookes Co., $5,900)

June 5: Accounts Receivable (Oakley Co.) $900 Allowance for Doubtful Accounts $900

June 5: Cash $900 Accounts Receivable (Oakley Co.) $900

A facility is setting up an assembly line to produce 75 units per day, working 24 hours per day. Calculate the desired cycle time in minutes per unit.

Task Time (Min) Predecessors
A 4 -
B 3 -
C 5 A
D 5 A,B
E 3 C,D

Answers

Solution :

Given :

The production output per day = 75 units

Production time per day = 24 hours

Therefore, the cycle time is

                =    [tex]$\frac{\text{production time per day}}{\text{outpu}t \text{ per day} }$[/tex]

               [tex]$=\frac{24 \times 60}{75}$[/tex]

              = 19.2 mins

              ≈ 20 minutes

The desired cycle time = 15 minutes per unit

Given the task times of A to E from the table.

Sum of the task times (A to E) = 4 + 3 + 5 + 5 + 3

                                                  = 20 minutes

Number of workstations needed = (sun of total task times) / (cycle time)

                                                      [tex]$=\frac{20}{15}$[/tex]

                                                      = 1.33

                                                      ≈ 2 work stations

Aria Perfume, Inc., sold 3,210 boxes of white musk soap during January of 2021 at the price of $90 per box. The company offers a full refund to unsatisfied customers for any product returned within 30 days from the date of purchase. Based on historical experience, Aria expects that 3% of sales will be returned. How many performance obligations are there in each sale of a box of soap

Answers

Answer:

Aria Perfume, Inc.

There are two performance obligations involved in each sale of a box of soap.

Explanation:

a) Data and Calculations:

Number of boxes of white musk soap sold during January 2021 = 3,210

Sales price per box = $90

Performance Obligations:

Sale of box = $87.30 (97%)

Refund for returned boxes = $2.70 (3%)

Total Sales revenue to be accounted for = $280,233

Total refund expense to be accounted for =  $8,667

Cash receipts should total =                       $288,900

b) The performance obligations are for the sale of a box of soap (97%) and refund (3%).  With a sales price of $90 per box, the sales obligation should be $87.30 per box, while the refund obligation has $2.70 per box, which must be provided and accounted for separately.

You were unable to attend all of the training, but your coworker has offered to fill you in on the details that you missed. Identify which of the following statements your coworker is likely to indicate as diversity principles discussed during your absence. Check all that apply. Do not lower hiring standards to promote diversity in the workplace. Surface-level diversity should not be treated as more important than deep-level diversity. Keep trying to accomplish as much as possible, even if implementing the diversity program becomes difficult.

Answers

Answer:

Surface-level diversity should not be treated as more important than deep-level diversity

Do not lower hiring standards to promote diversity in the workplace.

Keep trying to accomplish as much as possible, even if implementing the diversity program becomes difficult.

Explanation:

According to the given situation, in the case when the employee is not able to attend the training program but at the same time the coworker wants to take initiative to train the employee so the co worker should inform that the deep level diversity i.e higher significant as compared with the surface level. In addition to this, the performance & skills represent more significance as compared with the diversity in the workplace. Also, the hiring standard should not be less

So the above are the answers

Companies should try to focus on their areas of expertise. Should they always outsource other business functions to become a more modular organization?

Must be 3-4 sentences pls

Answers

Answer:

Yes. companies should try to focus on their core competencies so that they can have more time and resources to focus on delivering on their primary assignment.

Explanation:

An ICT company with a high volume of customer care related activities should consider outsourcing that service.

If their core offering is to deliver on mobile applications, it will prove counterproductive in the nearest future if they spend most of their time trying to solve problems that arise from servicing existing customers.

Outsourcing must be carefully implemented so that it does not backfire. It is critical to ensure that the total direct and indirect cost to the company far outweigh the benefits of retaining such a service internally.

Cheers

Pasadena Candle Inc. budgeted production of 730,000 candles for the January. Wax is required to produce a candle. Assume 11 ounces of wax is required for each candle. The estimated January 1 wax inventory is 17,400 pounds. The desired January 31 wax inventory is 12,900 pounds. If candle wax costs $1.40 per pound, determine the direct materials purchases budget for January. (One pound

Answers

Answer:

696,325 Pounds

Explanation:

The computation of the direct material purchase budget is given below:

Here we assume that

one pound = 16 ounces

Now total wax needed is

= Production of Finished Goods × Pounds of wax needed for production

= 730,000 candles × 11 ÷ 16

= 501,875 pounds

Now

Total direct material purchased  = (Total Wax needed +  Ending Inventory, Jan.31 - opening inventory) × unit price

= (490,625 Pounds + 12,900 pounds - 17,400 pounds) × $1.40 per pound

= 696,325 Pounds

Balance Sheet Below are items that may appear on the balance sheet. Required: Match each item with its appropriate classification.
Item
1. Buildings
2. Copyright
3. Supplies
4. Unearned service revenue
5. Prepaid insurance
6. Common stock
7. Rent payable
8. Accounts receivable
9. Allowance for doubtful accounts
10. Bonds payable
Classification
A. Current assets
B. Property, plant, and equipment
C. Intangible assets
D. Current liabilities
E. Long-term liabilities
F. Contributed capital
G. Retained earnings

Answers

Answer:

Item                                                           Classification

1. Buildings                                             -  Property, plant, and equipment

 

2. Copyright                                           -  Intangible assets

3. Supplies                                             - Current assets

4. Unearned service revenue              - Current liabilities

5. Prepaid insurance                            - Current assets

6. Common stock                                 - Contributed capital

7. Rent payable                                    - Current liabilities

8. Accounts receivable                        - Current assets

9. Allowance for doubtful accounts    - Retained earnings

10. Bonds payable                                - Long-term liabilities

Explanation:

A. Current assets - Assets that exist for a period not exceeding 12 months such as supplies.

B. Property, plant, and equipment - Assets of a Physical Nature that are expected to be used for more than a year.

C. Intangible assets - Assets that do not have a physical nature and are expected to be used for more than a year.

D. Current liabilities - Short term obligation due within a period of 12 months.

E. Long-term liabilities - Long term obligations due within a period exceeding 12 months.

F. Contributed capital - Capital raised by owners of the company excluding reserves attributed to them.

G. Retained earnings - Amounts set aside out of profits that are distributable to the shareholders of the company. Therefore Incomes and expenses are found here.

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