Answer: Please see explanation column for answers
Explanation:
Journal for December 2021
A)To record advance in rent from customers
Date Account. Debit Credit
Dec 31 Deferred
Revenue. $2,000
Rent Revenue. $2,000
Reason--->The rent is paid for 2 months in advance ie January and December, but since the adjusting entry is for only December, we will divide .$4000 / 2=
$2,000 as Rent revenue earned.
B) To record Insurance expense
Date Account. Debit Credit
Dec 31 Insurance
Expense. $6,600
Prepaid insurance $6,600
Reason-- The company paid in advance but we consider only from July to December which is 6months as we are only preparing entry for December
Insurance Expense =13,200x 6/12=
$6600
C) To record accrued Salary
Date Account. Debit Credit
Dec 31 Salary
Expense. $3000
Salary payable $3,000
But will be paid next year.
D) To record accrued interest on loan borriwed
Date Account. Debit Credit
Dec 31 Interest
Expense. $250
Interest payable $250
Calculation
Interest =PxRxT=15,000 X 10%x 2/12=$250
Accrued interest from date of loan which is November to December the date of journal entry will be considered
E)To record supply expense for the year
Date Account. Debit Credit
Dec 31 Supply
Expense. $3,900
Supply $3,900
Calculation=
Supply expense=Supply at the onset +purchased supply - used supply.
1000 +3400 -500=$3,900
Henry Co. assigned $400,000 of accounts receivable to Easy Finance Co. as security for a loan of $335,000. Easy charged a 2% commission on the amount of the loan; the interest rate on the note was 10%. During the first month, Henry collected $110,000 on assigned accounts after deducting $380 of discounts. Henry accepted returns worth $1,350 and wrote off assigned accounts totaling $2,980. Reference: Ref 7-2 The amount of cash Henry received from Easy at the time of the transfer was
Answer:
$328,300
Explanation:
Amount of cash received by Henry from Easy at the time of the transfer was = Amount of Loan - Commission
= $335,000 - ($335,000*2%)
= $335,000 - $6,700
= $328,300
Thus, the amount of cash received by Henry from Easy at the time of the transfer was $328,300
During 2022, Sheridan Company entered into the following transactions.
1. Purchased equipment for $318,770 cash.
2. Issued common stock to investors for $139,050 cash.
3. Purchased inventory of $70,940 on account.
Using the following tabular analysis, show the effect of each transaction on the accounting equation. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-4 for example.)
Answer with its Explanation:
Transaction 1: The purchase of equipment is increase in the fixed assets and as the amount paid is in cash, the decrease in cash asset will also be with the same amount. This means the net effect on assets will be zero.
Accounting Equation is given as under:
Fixed Assets + Current Asset = Equity + Liability
Equipment 318,770 - Cash $318,770 = Zero Net Effect
Transaction 2: The increase in the equity will increase the current asset as well here, which means:
Fixed Assets + Current Asset = Equity + Liability
Current Assets + $139,050 = Issued common stock + $139,050
Transaction 3: The purchase of inventory on account means that the current asset would be increased and the payables will increase with the same amount. The effect on the accounting equation is given as under:
Fixed Assets + Current Asset = Equity + Liability
Current Asset + $70,94 = Current liabilities + $70,940
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $181,090. Estimated direct labor cost was $481,580 for 19,900 hours.Actual costs for the most recent month are summarized here:Item Description Total CostDirect labor (1,800 hours) $46,361Indirect costs Indirect labor 2,540Indirect materials 3,420Factory rent 3,300Factory supervision 4,730Factory depreciation 5,760Factory janitorial work 1,270Factory insurance 1,890General and administrative salaries 4,240Selling expenses 5,350Required1. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)Predetermined Overhead Rate _____ Per DL Hour2. Calculate the amount of applied manufacturing overhead.Applied Overhead Rate _____3. Calculate actual manufacturing overhead costs.Actual Manufacturing Overhead Costs _____4. Compute over- or underapplied overhead.Overhead _____
Answer:
Instructions are below.
Explanation:
Giving the following information:
Estimated overhead= $181,090
Estimated direct labor houra= 19,900
Actual costs:
Indirect labor= $2,540
Factory rent= $3,300
Factory supervision= $4,730
Factory depreciation= $5,760
Factory janitorial work= $1,270
Factory insurance= $1,890
Actual overhead= $19,490
Actual direct labor hours= 1,800
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 181,090/19,900= $9.1 per direct labor hour
Now, we can allocate overhead based on actual direct labor hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 9.1*1,800= $16,380
Actual manufacturing overhead costs= $19,490
Finally, we can determine the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 19,490 - 16,380
Under/over applied overhead= $3,110 underapplied
Bronn and Jaime make a written contract where Jaime will sell Bronn his armor and sword for $1,200.Which of the following is not a defense to the formation of the contract?A. fraudB. illegalityC. incapacityD. unconscionabilityE. mirror image rule
Answer:
Explanation:
There are six defenses of the contract formation which are given below.
Incapacity Statute of Frauds Illegality Misrepresentation/Fraud Duress UnconscionabilityThis rule suggests a contract law rule that the acknowledgment of a contract should match the idea which causes the contract. It means acknowledgment should not become a cause of rejection or counter offer.
Consider the everyday task of getting to work on time or arriving at your first class on time in the morning. Complete a fish-bone chart detailing reasons why you might arrive late in the morning. Identify each possible source of error.Material ________▼
Methods _______ ▼
Machinery ______▼
Complete the fish-bone chart by matching each number in the chart with the corresponding reason.
Answer:
Part 1.
Material - The road
Reason: due to the road is a part of the material or resource that is used in the driving process)
Method - Driving
Reason: driving itself is the method)
Machinery - The car
Reason: the car is the primary equipment for the driving process)
Manpower - Family or me
reason: the family or the owner is the manpower involved in the driving process)
Part 2. the correct chart is with reason and the possible source is attached.
Part 1. Reason: thanks to the road could be a part of the fabric or resource that's utilized in the driving process)
Fish-bone chartMaterial - The road
Method - Driving
Part-2 -Reason: driving itself is that the method)
Machinery - The car
Part-3 Reason: the car is that the primary equipment for the driving process)
Manpower - Family or me
Part-4 Reason: the family or the owner is that the manpower involved within the driving process)
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South Company sells a single product for $20 per unit. If variable expenses are 60% of sales and fixed expenses total $9,600, the break-even point will be
Answer:
The Break-even point in units= 1,200 units
Explanation:
The break-even point (BEP) is the quantity of each product to be sold such that the business makes no profit or loss.
The beak-even point can be determined as follows:
The Break-even point in units = Total general fixed cost / Contribution per unit margin
Contribution per unit = Selling price - variable cost
= 20 - ( 60% × 20)= 8
The Break-even point in units= 9,600/8 =1,200 units
The Break-even point in units= 1,200 units
[The following information applies to the questions displayed below.]
Widmer Watercraft’s predetermined overhead rate for year 2015 is 200% of direct labor. Information on the company’s production activities during May 2015 follows.
a. Purchased raw materials on credit, $200,000.
b. Materials requisitions record use of the following materials for the month.
Job 136 $48,000
Job 137 32,000
Job 138 19,200
Job 139 22,400
Job 140 6,400
Total direct materials 128,000
Indirect materials 19,500
Total materials used $147,500
c. Paid $15,000 cash to a computer consultant to reprogram factory equipment.
d. Time tickets record use of the following labor for the month. These wages were paid in cash.
Job 136 $12,000
Job 137 10,500
Job 138 37,500
Job 139 39,000
Job 140 3,000
Total direct labor 102,000
Indirect labor 24,000
Total $126,000
e. Applied overhead to Jobs 136, 138, and 139.
f. Transferred Jobs 136, 138, and 139 to Finished Goods.
g. Sold Jobs 136 and 138 on credit at a total price of $525,000.
h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).
Depreciation of factory building $68,000
Depreciation of factory equipment 36,500
Expired factory insurance 10,000
Accrued property taxes payable 35,000
i. Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.
REQUIRED.
Prepare journal entries to record the events and transactions a through i. REQUIRED
Answer:
Widmer Watercraft
Journal Entries
Sr No Particulars Debit Credit
a. Materials $200,000
Accounts Payable $ 200,000
Purchased raw materials on credit, $200,000.
b. Work in Process Job 136 $ 48,000
Work in Process Job 137 32,000
Work in Process Job 138 19,200
Work in Process Job 139 22,400
Work in Process Job 140 6,400
Materials $ 128,000
Total direct materials 128,000 issued.
Factory Overhead Control Account 19,500
Materials $ 19,500
Indirect materials 19,500 issued.
c. Factory Overhead- Equip 15,000
Cash 15000
Paid $15,000 cash to a computer consultant to reprogram factory equipment.
d. Work in Process Job 136 $12,000
Work in Process Job 137 10,500
Work in Process Job 138 37,500
Work in Process Job 139 39,000
Work in Process Job 140 3,000
Factory Overhead Control Account 24,000
Wages Control Account $ 126,000
Total direct labor 102,000 charged to production, Indirect labor 24,000 Charged to Factory Overhead.
e. Work In Process Job 136 $24,000
Work in Process Job 138 75,000
Work in Process Job 139 78,000
Applied Overhead 255,000
Applied overhead to Jobs 136, 138, and 139 at 200% of Direct Labor Cost.
Applied Overhead Control Account $ 255,000
Factory Overhead Control Account $ 255,000
Applied Overhead Closed To Actual Overhead Account.
f. Finished Goods Control Account $ 355,100
Work in Process Job 136 84000
Work in Process Job 138 131,700
Work in Process Job 139 139,400
Transferred Jobs 136, 138, and 139 to Finished Goods.
g. Cost of Goods Sold 215,700
Finished Goods 215,700
Sold Jobs 136 and 138 on credit at a total price of $525,000.
Accounts Receivable $525,000
Sales $525,000
h. Factory Overhead Control Account $ 149,500
Provision For Depreciation Account $68,000
Prepaid Insurance Expense $ 10,000
Accumulated Depreciation Factory Equip. 36,500
Property Taxes Payable Account 35,000
The company incurred the above overhead costs during the month.
i. Work in Process Job 136 21,000
Work in Process Job 140 6,000
Factory Overhead Control Account 27,000
Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% .
The combination of the degree of complexity and the degree of change existing in an organization's external environment is/are called:________
a. strategic fit.
b. strategic issues.
c. scenarios.
d. environmental uncertainty.
e. strategic factors.
Answer:
D. environmental uncertainty.
Explanation:
This could be explained to be a condition or situation when an organisation in form of a firm is said to have little or no information about its external environment and in this condition, making it unpredictable; especially when not expected. In other words, the term environmental uncertainty can be easily explained to be unpredicted, unexpected uncertainties that are said to happen in an external environment.
Global warming can be capitalized to be one of the physical and major environmental uncertainties that occurs in such a place.
Alpha Company has assets of $610,000, liabilities of $255,000, and equity of $355,000. It buys office equipment on credit for $80,000. What would be the effects of this transaction on the accounting equation
Answer:
Both assets and liabilities increase by $80,000
Explanation:
To start with, it is imperative to show the equation before and after the purchase of equipment on credit
Assets =Equity + liabilities
$610,000 =$255,0000 +$355,000
The equipment's purchase would increase the value of assets and liabilities by $80,000
Assets =Equity + liabilities
$610,000+$80,000=$255,000 +($355,000+$80,000)
$690,000 =$255,000 +$435,000
Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the quarter ending September 30, 2016: Cost Retail Beginning inventory $ 460,000 $ 590,000 Net purchases 940,000 1,370,000 Freight-in 52,700 Net markups 64,000 Net markdowns 34,000 Net sales 1,280,000 Estimate ending inventory and cost of goods sold (LIFO)
2.
Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the quarter ending September 30, 2016:
Cost Retail
Beginning inventory $ 310,000 $ 455,000
Net purchases 858,000 1,220,000
Freight-in 25,500
Net markups 49,000
Net markdowns 19,000
Net sales 1,205,000
Estimate ending inventory and cost of goods sold using the conventional method. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.))
3.
On January 1, 2016, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information:
Cost Retail
Beginning inventory $ 56,000 $ 80,000
Net purchases 223,040 330,000
Net markups 6,000
Net markdowns 8,000
Net sales 307,000
Retail price index, end of year 1.02
Calculate the inventory value at the end of the year using the dollar-value LIFO retail method. (Round your intermediate calculations to the nearest whole dollar.)
Answer:
The ending inventory value using LIFO retail method is $710,000
Explanation:
Beginning inventory $590,000
Purchases $1,370,000
Net Markups ($64,000)
Net Markdowns ($34,000)
Goods Available For Sale $1,990,000
Cost to retail percentage = 70.91%
Net sales $1,280,000
Ending Inventory = $710,000
At the beginning of 2016, Stillwater Company had a $250 balance in its Supplies account. During the year the company paid $1,500 cash for additional supplies. The physical count of supplies on hand at the end of 2016 was $1,400. Which of the following statements related to Stillwater Company's 2016 transactions is incorrect?
a. The account Supplies represents a liability on the balance sheet.
b. The statement of cash flows for operating activities decreased by $1,500.
c. Net income decreased by $350.
d. All of the statements are correct.
Answer:
a. The account Supplies represents a liability on the balance sheet.
Explanation:
Operating activities are the activities that organization carry out to ensure the smoothness of such company day to day activities. Examples of operating activities are cash receipts from sales of goods, cash payments to suppliers, employees, and expenses.
Stillwater Company Operating cost is decrease by 1,500 as the cash paid to the supplier in addition is an outflow
Also,
Balance of supplies 250
Supplies at hand 1400
1,650
Cash paid for supply (1,400)
in addition
Net Income 250
Conclusion: The option A cannot is incorrect as supplies account is recognized under the Current Asset as an asset not a liability.
Exercise 8-3 Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $405,405 for real estate with land, land improvements, and a building. Land is appraised at $202,500; land improvements are appraised at $67,500; and a building is appraised at $180,000.Required:1. Allocate the total cost among the three assets.2. Prepare the journal entry to record the purchase.
Answer:
Rodriguez Company
Purchase price = $405,405
Land is appraised at $202,500
Land improvements $67,500
Building appraised at $180,000
Total appraised value $450,000
Land will be apportioned $202,500/$450,000 x $405,405 = $182,432.25
Land improvements will be apportioned $67,500/$450,000 x $405,405 = $60,810.75
Building will be apportioned $180,000/$450,000 x $405,405 = $162,162
Total cost of assets = $405,405.
2. Journal Entries:
Debit Land $182,432.25
Debit Land Improvements $60,810.75
Debit Building $162,162
Credit Cash Account $405,405
To record the purchase of the assets.
Explanation:
The purchase price is proportionately allocated to the items based on their appraisal values.
Sabv Corporation's break-even-point in sales is $910,000, and its variable expenses are 80% of sales. If the company lost $41,000 last year, sales must have amounted to:
Answer:
Sales= $705,000
Explanation:
Giving the following information:
Break-even-point in sales= $910,000
Variable expenses= 80% of sales.
Loss= $41,000
First, we need to calculate the fixed costs:
Fixed costs= 910,000*0.2= $182,000
Now, we need to determine the contribution margin:
Actual CM= 182,000 - 41,000= $141,000
Finally, the sales revenue:
Sales= 141,000/0.2= $705,000
Prospective entrepreneurs turned down by private lenders have little hope of getting financial help from the Small Business Administration, since the SBA's standards are even tougher than those of private lenders.
a) true
b) false
Answer:
b) false
Explanation:
On its website, the SBA states its objective as "We support America's small businesses. The SBA connects entrepreneurs with lenders and funding to help them plan, start and grow their business."
The SBA does not actually lend to small businesses but connects them with lenders. Apart from this, they offer many other services that an entrepreneur requires to start off his or her business. They offer business planning, coaching, advice, and support at every stage of the business as it continues to grow and guarantee lending to small businesses. The SBA does not turn down any entrepreneur.
"According to the law of demand, with everything else being equal, the quantity demanded for a good or service will _____________ as the price increases."
Answer: Decrease
Explanation:
According to the Law of Demand, The quantity demanded for purchase of a commodity inversely varies with the price.
That is to say that "ceteris paribus" ( with everything being equal),When the prices of a particular good go higher, people will buy less of such commodity but will buy more, if the prices of the goods reduces.
We can say demand is elastic if quantity demanded for a commodity decreases with increase in price which will make people choose another lower substitute good eg, detergent, ice cream
Also if quantity demanded does not change much with increase in price , then it is referred to as Inelastic Demand for example necessity commodity such as gasoline.
You are looking to buy a car and you have been offered a loan with an APR of 6.5 %, compounded monthly. a. What is the true monthly rate of interest? b. What is the EAR? g
Answer: The answer is given below
Explanation:
a. What is the true monthly rate of interest?
The monthly rate of interest will be the annual percentage rate of charge given in the question divided by the number of months. This will be:
= APR/12
= 6.5%/12
= 0.065/12
= 0.0054
= 0.54%
b. What is the EAR?
The effective annual rate will be calculated using the formula:
EAR = (1 + (APR / m)^ m) - 1
EAR = (1 + (0.065/ 12)^12) - 1
EAR = [(1 + 0.0054)^12] - 1
EAR = (1.0054)^12 - 1
EAR = 1.06676 - 1
EAR = 0.06676
EAR = 6.68%
Sunshine Blender Company sold 3000 units in October at a sales price of $45 per unit. The variable cost is $25 per unit. Calculate the total contribution margin.
Answer:
Total contribution margin= $60,000
Explanation:
Giving the following information:
Units sold= 3,000
Selling price per unit= $45
Unitary variable cost= $25
First, we will calculate the unitary contribution margin:
Unitary contribution margin= 45 - 25= $20
Now, total contribution margin:
Total contribution margin= 3,000*20= $60,000
Expenditures on a nation's domestic production Group of answer choices are less than its domestic production. are equal to its domestic production. are greater than its domestic production. could be less than, equal to, or greater than its domestic production.
Answer:
are equal to it's domestic production
Explanation:
A country's Gross Domestic Product (GDP) is defined as value of all goods and services produced in a country during a given time. Domestic production refers to those goods and services produced at home for local consumption.
Expenditure refers to the monies expended by all entities namely; household, firms and government on goods and services with a country.
When all the entities involved in generating a country's GDP spend their money towards purchasing goods and services produced in a country, then local producers would have more money to buy materials that will be used for further production. The higher the money spent, the higher the production and vice versa.
The above is a cycle that is repeated each time household, firms and government buys locally produced goods hence expenditure on a nation's domestic production equal to it's domestic production.
Under the general requirements of Code Sections 162 and 212 regarding trade/business and income-producing activities, to be deductible an expense must be
Answer:
Related to carrying on the activity
Explanation:
The general requirement of the code sections 162 and 212 about the expense allowing as a deduction against income of the business is that the expenses are only allowable if it is related to the same business income. This means that the trading expense would be set off against trading income and rental expense would be set off against rental income. Furthermore, the expenses (losses) would be only deductible for the future years if the business has not abandoned its operations which means the expenses are related to carrying activities.
In response to the economic crisis in 2008, President Merkel "highlighted in her speech what the German government has already done: a financial sector rescue package worth up to €500 billion, and a proposed stimulus package of tax breaks [on income] and spending measures aimed at triggering investments of up to €50 billion over the next two years." Which parts of the stimulus plan will increase labor supply?
Answer:
Chancellor Merkel's proposed stimulus consisted of two parts:
a financial rescue package worth €500 billion (which I personally believe only helped bankers but didn't increase labor supply)tax breaks and investment measures worth €50 billionThe only part of the stimulus package that would actually help to increase labor supply is the last part, which also is the smallest part, since it should have increased investments. When investment increases, the interest rates decrease and aggregate demand increases. As aggregator demand increases, the demand for labor also increases. An increase in the demand for labor results in higher wages, which in turn increases labor supply until an equilibrium is reached.
Governments generally rescue financial institutions arguing that they are really important to the economy, but what is really amazing and repeats itself all over the world is that the same governments favor free markets. When small businesses fail, governments do not care, and small businesses represent 99% of America's companies. Governments only start caring when rich people lose money, since free market rules only apply to them when they favor them. If free market rules do not favor the rich, they are bad and governments intervene.
When setting optimal prices, which of the following is a concern when utilizing a regression of observed sales on observed prices to set them?
a. All of these answers apply.
b. Future prices might be outside the range of past prices.
c. There is not enough variation in observed prices.
Answer:
The Future prices might be outside the range of past prices when setting optimal price
Explanation:
Future prices might be outside the range of past prices is a concern when utilizing a regression of observed sales on observed prices to set them because setting An optimal price enables the price at which the seller can make the highest profit possible in order to increase revenue with maximum profitability in which this can only be done when using the optimal pricing strategy for example in a situation where a company is competing in several locations and different market segments, this means clearly understanding and planning a special approach for the environments before the company makes any changes in their pricing strategy is important because Future prices might be outside the range of past prices.
Who would benefit if the exchange rate with yen (in U.S. dollars) increased (i.e. one dollar can buy more yens)?
Answer:
The answer is US consumers
Explanation:
Exchange rate is the rate at which a country can exchange its currency with another country’s currency.
An increase in the exchange rate of dollar with Yen discourages the Japanese from buying american goods.
Since US dollar is appreciating in relative to Japanese Yen, US consumers will benefit since they are buying the goods at a now cheaper rate.
How much would you be willing to pay today for an investment that pays $1,300 per year at the end of the next 10 years
Answer:
The investment is worth $8,732.11 today.
Explanation:
Giving the following information:
Cash flow= $1,300
Number of years= 10
To calculate the present value, we need a discount rate. If not, the value of money through time is irrelevant.
Imagine a discount rate of 8% compounded annually.
First, we will calculate the future value:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {1,300*[(1.08^10) - 1]} / 0.08
FV= $18,832.53
Now, the present value:
PV= FV/(1+i)^n
PV= 18,832.53/1.08^10
PV= $8,732.11
The people in an economy have $10 million in money. There is only one bank that all the people deposit their money in and it holds 5% of the deposits as reserves. What is the money multiplier in this economy?
Answer:
The answer is 20
Explanation:
The money multiplier show us how an initial deposit can lead to a higher final increase in the total money supply or it relates to the maximum amount of bank money that can be created, given a certain amount of money from central bank money.
Money multplier = 1 / reserve requirement
Reserve requirement is 5% of the deposits
Therefore, money multiplier is
1 / 0.05
20
Information related to Harwick Co. is presented below.
1. On April 5, purchased merchandise on account from Botham Company for $23,000, terms 2/10, net/30, FOB shipping point.
2. On April 6, paid freight costs of $900 on merchandise purchased from Botham.
3. On April 7, purchased equipment on account for $26,000.
4. On April 8, returned damaged merchandise to Botham Company and was granted a $3,000 credit for returned merchandise.
5. On April 15, paid the amount due to Botham Company in full.
Required:
Prepare the journal entries to record these transactions on the books of Harwick Co. under a perpetual inventory system.
No. Date Account Titles and Explanation Debit Credit
1.
2.
3.
4.
5.
Answer:
1.
Apr 5
DR Merchandise inventory $23,000
CR Account payable $23,000
(To record Merchandise Purchased)
2.
Apr 6
DR Merchandise inventory $900
CR Cash $900
(To record payment of Freight Costs for Purchases)
3.
Apr 7
DR Equipment $26,000
CR Account payable $26,000
(To record purchase of Equipment)
4.
Apr 8
DR Account payable $3,000
CR Merchandise inventory $3,000
(To record return of damaged Merchandise)
5.
Apr 15
DR Account payable $20,000
CR Cash $19,600
CR Merchandise inventory $200
(To record payment for Merchandise bought on account)
Working
Terms of purchase 2/10 indicate that discount of 2% is warranted if goods paid for in 10 days which they were;
= 20,000 * ( 1 - 2%)
= $19,600
Holdup Bank has an issue of preferred stock with a $6 stated dividend that just sold for $93 per share. What is the bank's cost of preferred stock
Answer:
6.45%
Explanation:
Calculation for bank's cost of preferred stock
Using this formula
Cost of preferred stock = Dividend / Price of Stock * 100
Where,
Dividend $6
Price of Stock 93 per share
Let plug in the formula
Cost of preferred stock =6/93*100
Cost of preferred stock= 0.0645*100
Cost of preferred stock=6.45 %
Therefore the bank's cost of preferred stock will be 6.45%
An accountant has debited an asset account for $5,000 and credited a revenue account for $10,000. What can be done to complete the recording of the transaction?a) Nothing further can be doneb) Credit a shareholders equity account for $5,000c) Debit another asset account for $5,000d) Credit an asset account for $5,000
c) Debit another asset account for $5,000
The calculation is as follows:Since the asset is debited for $5,000 and the revenue account is credited for $10,000
So we have to equal both the amount
Asset Dr $5,000
Asset Dr $5,000
To Revenue $10,000
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A business issues 20-year bonds payable in exchange for preferred stock. This transaction would be reported on the statement of cash flows in a.a separate schedule. b.the cash flows from operating activities section. c.the cash flows from financing activities section. d.the cash flows from investing activities section.
Answer:
A. a separate schedule.
Explanation:
This is explained to be cash flow schedule or also cash flow statement. It is explained to be on out of the three financial statement which used generally to report for cash which been generated and how this money has been totally been spent within a period or interval which could be a week, month, quarter or even probably a year.
In the statement of cash flows, the cash flows are known to be generated from investing activities section while inclusion of receipts from the sale of investments. This is why in the stated 20 year payable bond, it is known to have been recorded in statement of cash flows in a separate schedule.
The journal entry to record the $500 of work in process ending inventory that consists of $300 of direct materials, $50 of manufacturing overhead, and $150 of direct labor is which of the following?
A. Work in Process Inventory 500
Accounts Payable 500
B. Accounts Payable 500
Work in Process Inventory 500
C. Work in Process Inventory 500
Materials Inventory 300
Wages Payable 150
Manufacturing Overhead 50
D. Cost of Goods Sold 500
Work in Process Inventory 500
Answer:
C. Work in Process Inventory 500; Materials Inventory 300; Wages Payable 150; Manufacturing Overhead 50
Explanation:
The journal entry will definitely be as follows
Account Title Debit Credit
Work in Process Inventory $500
Raw materials inventory $300
Wages payable $150
Manufacturing overhead $50
A package of 8 frankfurters costs $5.00 and a package of 12 hot dog buns costs $3.00. If Jeffrey makes a hot dog sandwich using only a frankfurter and a bun, what percent of the cost of his hot dog sandwich comes from the bun?
Answer:
Buns= 28.57%
Explanation:
Giving the following information:
A package of 8 frankfurters costs $5.00 and a package of 12 hot dog buns costs $3.00.
First, we need to calculate the unitary cost of the frankfurters and buns.
Frankfurters= 5/8= $0.625
Buns= 3/12= 0.25
Now, the percentage of buns per hotdog:
Total unitary cost= 0.625 + 0.25= 0.875
Buns= 0.25/0.875= 0.2857= 28.57%