Answer:
Cane Company
a) The incremental net operating income
= -$964,000
b. Profits would decrease by $3,132,000.
c. Profits would decrease by $1,682,000.
d. Profits would decrease by $1,778,000.
e. If Cane buys 98,000 units from the supplier instead of making those units, profits (savings) would increase by $588,000.
f. If Cane buys 73,000 units from the supplier instead of making those units, profits (savings) would increase by $438,000.
Explanation:
Products manufactured Alpha Beta
Selling price per unit $210 $172
Annual production capacity 128,000 $128,000
Units costs:
Direct materials $40 $24
Direct labor $38 $34
Variable manufacturing overhead $25 $23
Traceable fixed manufacturing overhead $33 $36
Variable selling expenses $30 $26
Common fixed expenses $33 $28
Total cost per unit $199 $171
Avoidable (Incremental) Costs:
Products manufactured Alpha Beta
Direct materials $40 $24
Direct labor $38 $34
Variable manufacturing overhead $25 $23
Traceable fixed manufacturing overhead $33 $36
Variable selling expenses $30 $26
Total incremental per unit $166 $143
Selling price per unit $210 $172
Contribution margin per unit $44 $29
Total Revenue for 28,000 at $152 per unit $4,256,000
Total avoidable cost for 28,000 at $166 (4,648,000)
Loss: Revenue due to decrease in regular
customers (13,000 *$210) 2,730,000
Total avoidable cost of 13,000 * $166 2,158,000 (572,000)
Operating loss if the order is accepted -$964,000
Beta:
Selling price per unit = $172
Incremental cost per unit = $143
Contribution per unit = $29
Total contribution margin = $3,132,000 ($29 * 108,000)
Total contribution margin = $1,682,000 ($29 * 58,000)
Total contribution margin = $2,262,000 ($29 * 78,000)
Increase in alpha contribution (484,000) ($44 * 11,000)
Loss of profit = $1,778,000
Cost price for outside supply = $152
Incremental unit cost (internal) $166
Difference in cost per unit $6
Profits increase from outside supplier = $6 * 98,000 = $588,000
Profits increase from outside supplier = $6 * 73,000 = $438,000
In each of the following cases, calculate the price of one share of the foreign stock measured in United States dollars (US$). a. A Belgian stock priced at euros () when the exchange rate is US$/ (i.e., each euro is worth $). b. A Swiss stock priced at Swiss francs (Sf) when the exchange rate is US$/Sf. c. A Japanese stock priced at yen (¥) when the exchange rate is ¥/US$.
Answer:
$114.24
$96.18
$12.23
Explanation:
Here is the complete question :
In each of the following cases, calculate the price of one share of the foreign stock measured in United States dollars(US$).
a. A Belgian stock priced at 103.1 euros (euro) when the exchange rate is 0.9025 euro/US$.
b. A Swiss stock priced at 93.1 Swiss francs (Sf) when the exchange rate is 0.968 Sf/US$.
c. A Japanese stock priced at 1,334 yen (¥) when the exchange rate is 109.1149 ¥/US$.
Exchange rate is the rate at which one currency is exchanged for another currency
In this question, US dollar is the base currency while the other currencies are the price currency
1. (103.1 / 0.9025) x 1usd = $114.24
2. (93.1 / 0.9680) x 1 usd = $96.18
c.( 1334/109.1149) x 1 usd = $12.23
Foxmoor Company applies manufacturing overhead by using a predetermined rate of 50% of direct labor cost. The data that follow pertain to job no. 764:
Direct material cost $55,000
Direct labor cost 80,000
If Foxmoor adds a 40% markup on total cost to generate a profit, which of the following choices depicts a portion of the accounting needed to record the sale of job no. 764?
Account Debited Amount
A. Cost of Goods Sold $175,000
B. Cost of Goods Sold $245,000
C. Finished Goods Inventory $175,000
D. Finished Goods Inventory $245,000
E. Sales Reveune $245,000
a. Choice A
b. Choice B
c. Choice C
d. Choice D
e. Choice E
Answer:
e. Choice E
Explanation:
Total cost of job no. 764 = $55,000 + $80,000 + 80,000 x 50%
= $175,000
Total Revenue for job no. 764 = $175,000 + $175,000 x 40%
= $245,000
E. Sales Revenue $245,000
Climate change is expected to have a major impact on local weather patterns across the United States (and the world). Use a spatial equilibrium model for simple system of two cities to predict the effect of climate change on 1) A place where climate change lowers that amenity value of the local climate (call this place Miami) and 2) A place where climate change does not change the local amenity value (call this place Chicago). Which of the following best describes the prediction of your model?
A. Real estate prices in Miami will rise, real estate prices in Chicago will fall.
B. Real estate prices in Miami will fall, real estate prices in Chicago will fall.
C. Real estate prices in Miami will rise, real estate prices in Chicago will rise.
D. Real estate prices in Miami will fall, real estate prices in Chicago will rise.
E. None of the above.
Answer:
D. Real estate prices in Miami will fall, real estate prices in Chicago will rise.
Explanation:
Real estate prices in Miami will fall because according to the model, climate change will lower the amenity value of the local climate. This means that climate change will make the climate of Miami less desirable for potential residents, causing a drop in the price of the real estate of the city due to less demand.
Chicago on the other hand, will have the amenity level of its climate increased, and this will attract more potential residents who will drive up demand, causing Chicago's real estate prices to rise.
Blending process Units of Product Percent of Conversion
Beginning work in process 150,000 80%
Goods started 310,000 100
Goods completed 340,000 100
Ending work in process 120,000 25
Required:
Compute the total equivalent units of production for conversion using the FIFO method.
Answer:
Number of equivalent units= 370,000
Explanation:
To calculate the cost of equivalent units using the FIFO (first-in, first-out), we need to use the following structure:
COST PER EQUIVALENT UNITS:
Beginning work in process = beginning inventory* %incompleted
Units started and completed = units completed - beginning WIP
Ending work in process completed= Ending WIP* %completed
=Number of equivalent units
Beginning work in process = 150,000*0.2= 30,000
Units started and completed = 340,000 - 30,000= 310,000
Ending work in process completed= 120,000*0.25= 30,000
Number of equivalent units= 370,000
Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in years with an annual coupon rate of percent. Their par value will be $, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is percent. What will be the price of these bonds if they receive either an A or a AA rating?
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At December 31 of the current year, Cullen Corporation had a number of items that were not reflected in its accounting records. Maintenance and repair costs of $770 were incurred but not paid. Utilities costing $240 were used but not paid, and use of a warehouse space worth $1,900 was provided to a tenant who had not been billed as of the end of the month. Record the required adusting entries related to these events.
Answer:
Cullen Corporation
Adjusting Journal Entries:
Debit Maintenance and Repairs Expense $770
Credit Accounts Payable $770
To record costs incurred but not yet paid for.
Debit Utilities Expense $240
Credit Utilities Payable $240
To record utilities expense incurred but not yet paid for.
Debit Rent Receivable $1,900
Credit Rent Revenue $1,900
To record rent revenue due.
Explanation:
a) Data and Analysis:
Maintenance and Repairs Expense $770 Accounts Payable $770
Utilities Expense $240 Utilities Payable $240
Accounts Receivable $1,900 Rent Revenue $1,900
The adjusting entries related to these events are shown in the image below.
What is adjustment entries?Adjusting entries are those journal entries that are normally made at the end of an accounting period.
It is made at the end of the accounting period to assign income and expenditure to the time period in which they actually happened or occurred.
Required information according to the given case:
Maintenance and Repairs Expense is $770, Accounts Payable $770, Utilities Expense is $240 Utilities Payable is $240, Accounts Receivable is $1,900, and Rent Revenue is $1,900.
Therefore, the adjustment entries of the above transactions are given in the image below.
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On January 1, 2021, Jasperse Corporation leased equipment under a finance lease designed to earn the lessor a 10% rate of return for providing long-term financing. The lease agreement specified ten annual payments of $90,000 beginning January 1, and each December 31 thereafter through 2029. A 10-year service agreement was scheduled to provide maintenance of the equipment as required for a fee of $8,000 per year. Insurance premiums of $7,000 annually are related to the equipment. Both amounts were to be paid by the lessor and lease payments reflect both expenditures.
Required:
At what amount will Jasperse record a right-of-use asset?
Answer:
$554,320
Explanation:
Annual payment = $90,000
Rate = 10%
Time period = 10 years
Maintenance of equipment = $8,000
PVAD of $1(n = 10, i=11) = 6.76
Lease payment = $90,000 - $8,000 = $82,000
Amount of Right-of-use asset = Lease payment * PVAD of $1
Amount of Right-of-use asset = $82,000 * 6.76
Amount of Right-of-use asset = $554,320
So, Jasperse will record $554,320 as a right-of-use asset amount.
Which means the same as human resources?
A)
capital resources
B)
service providers
C)
labor resources
D)
unskilled workers
Answer:
A. Capitol Resources
Explanation:
Explanation:
Answer:
Capital resources
Explanation:
"Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view. Likewise, other terms sometimes used include "manpower", "talent", "labour", or simply "people".
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Before preparing financial statements for the current year, the chief accountant for Oriole Company discovered the following errors in the accounts.
1. The declaration and payment of $47,000 cash dividend was recorded as a debit to Interest Expense $47,000 and a credit to Cash $47,000.
2. A 10% stock dividend (1,100 shares) was declared on the $10 par value stock when the market price per share was $19. The only entry made was Stock Dividends (Dr.) $11,000 and Dividend Payable (Cr.) $11,000. The shares have not been issued.
3. A 4-for-1 stock split involving the issue of 354,000 shares of $5 par value common stock for 91,750 shares of $20 par value common stock was recorded as a debit to Retained Earnings $1,835,000 and a credit to Common Stock $1,835,000.
Required:
Prepare the correcting entries at December 31.
Answer:
Oriole Company
Correcting Journal Entries:
1. Debit Dividends $47,000
Credit Interest Expense $47,000
To correct the error.
2. No corrections required
3. Debit Common Stock $1,835,000
Credit Retained Earnings $1,835,000
To correct the error.
Explanation:
a) Data and Analysis:
1. Dividends $47,000 Interest Expense $47,000
2. No corrections required
3. Common Stock $1,835,000 Retained Earnings $1,835,000
b) When a stock split is done, there is no journal entry involving an amount of money. What is recorded is just a memo entry. The memo entry serves to notify that the number of Oriole shares and the par value per share have changed to reflect the reality.
Needham Company uses a job-order costing system. During the month of September, the company worked on three jobs. The job-order cost sheets for the three jobs contained the following information at the end of September: Job A Job B Job C Beginning Balances $ 4,900 $ 3,900 $ 6,900 Direct Materials 1,900 2,500 2,900 Direct Labor 3,300 5,500 2,700 The company applies overhead at 120% of direct labor cost. The total cost of Job A at the end of September was:
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You should make sure to send a
you.
letter to the person who interviewed
A. thank you
B. formal
C. recommendation
D. cover
Answer:
A. thank you
Explanation:
You should make sure to send a
you.
letter to the person who interviewed. you should say thank you to that person who interviewed.
Answer: Truly A. thank-you is the right answer
For me its C.
A debit balance in the Allowance for Doubtful Accounts A. indicates that actual bad debt write-offs have exceeded previous provisions for bad debts. B. is the normal balance for that account. C. cannot occur if the percentage of receivables method of estimating bad debts is used. Click Save and Submit to save and submit. Click Save All Answers to save all answers. D. indicates that actual bad debt write-offs
Answer:
D. indicates that actual bad debt write-offs
Explanation:
A debit balance can be regarded as negative cash balance when checking ones account with a bank. It should be noted that debit balance in the Allowance for Doubtful Accounts
indicates that actual bad debt write-offs
Kraus Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 31,600 tons from the Casting Department in October. During October, the Rolling Department completed 45,900 tons, including 15,900 tons of work in process on October 1. The ending work in process inventory on October 31 was 1,600 tons.How many tons were started and completed during October?
Answer:
30,000 tons
Explanation:
Units Completed = Beginning Work in Process Units Completed + Units started and Completed during October
45,900 = 15,900 + Units started and Completed during October
Units started and Completed during October = 45,900 - 15,900
Units started and Completed during October = 30,000 tons
Analyzing and Computing Accrued Warranty Liability and Expense Waymire Company sells a motor that carries a 60-day unconditional warranty against product failure. From prior years' experience, Waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. During the current period, Waymire sold 69,000 units and repaired 1,000 units. (a) How much warranty expense must Waymire report in its current period income statement
Answer:
the warranty expense reported is $138,000
Explanation:
a. The computation of the warranty expense that should be reported in its current period income statement is shown below:
= Given percentage × units sold × repair average cost
= 2% × 69,000 units × $100 per units
= $138,000
Hence, the warranty expense reported is $138,000
The following information pertains to Wildhorse Company.
1. Cash balance per books, August 31, $7,424.
2. Cash balance per bank, August 31, $7,388.
3. Outstanding checks, August 31, $709.
4. August bank service charge not recorded by the depositor $61.
5. Deposits in transit, August 31, $3,760.
In addition, $3,076 collected for Wildhorse Company in August by the bank through electronic funds transfer. The accounts receivable collection has not been recorded Wildhorse Company.
1. Prepare a bank reconciliation at August 31, 2022. (List items that increase balance as per bank & books first.)
2. Journalize the adjusting entries at August 31 on the books of Wildhorse Company.
Answer:
Part 1
Bank reconciliation at August 31, 2022
Balance as per Bank Statement $10,439
Add Outstanding Lodgments $709
Less Unpresented Checks ($3,760)
Balance as per Cash Book $7,388
Part 2
Item 1
Debit :
Credit :
Item 1
Debit :
Credit :
Item 3
Debit : Bank Statement $709
Credit : Outstanding checks $709
Item 4
Debit : Bank service $61
Credit : Cash $61
Item 5
Debit : Deposits in Transit $3,760
Credit : Bank Statement $3,760
Item 6
Debit : Cash $3,076
Credit : EFT $3,076
Explanation:
The correct Cash Balance can be checked by preparing the Bank Reconciliation Statement as above
Answer:
Cash Balance per bank statement 7,388
Add: Deposits in transit 3,760
11,148
Less: Outstanding Checks (709)
Adjusted cash balance per books 10,439
Cash balance per books 7,424
Add: Collection on electronic funds transfer 3,076
10,500
Less: Bank service charge (61)
Adjusted cash balance per books 10,439
Journalize the adjusting entries
06/31 Cash 3,076
Accounts Receivable 3,076
06/31 Bank CE 61
Cash 61
Explanation:
Penny’s Pool Service & Supply, Inc. (PPSS) is completing the accounting process for the year just ended, December 31, 2015. The transactions during 2015 have been journalized and posted. The following data with respect to adjusting entries are available:
a. PPSS owed $7,500 wages to the office receptionist and three assistants for working the last 10 days in December. The employees will be paid in January 2016.
b. On October 1, 2015, PPSS received $24,000 from customers who prepaid pool cleaning service for one year beginning on November 1, 2015.
c. The company received a $520 utility bill for December utility usage. It will be paid in January 2016.
d. PPSS borrowed $30,000 from a local bank on May 1, 2015, signing a note with a 10 percent interest rate. The note and interest are due on May 1, 2016.
e. On December 31, 2015, PPSS cleaned and winterized a customer’s pool for $800, but the service was not yet recorded on December 31.
f. On August 1, 2015, PPSS purchased a two-year insurance policy for $4,200, with coverage beginning on that date. The amount was recorded as Prepaid Insurance when paid.
g. On December 31, 2015, PPSS had $3,100 of pool cleaning supplies on hand. During 2015, PPSS purchased supplies costing $23,000 from Pool Corporation, Inc., and had $2,400 of supplies on hand on December 31, 2014.
h. PPSS estimated that depreciation on its buildings and equipment was $8,300 for the year.
i. At December 31, 2015, $110 of interest on investments was earned
Required: Prepare adjusting entries for Penny's Pool Service & Supply, Inc., on December 31, 2015.
Answer:
Penny's Pool Service & Supply, Inc.
Adjusting Entries:
a. Debit Wages Expense $7,500
Credit Wages Payable $7,500
To record accrued wages.
b. Debit Deferred Revenue $4,000
Credit Service Revenue $4,000
To record earned revenue.
c. Debit Utility Expense $520
Credit Utility Payable $520
To record accrued utility expense.
d. Debit Interest Expense $2,000
Credit Interest Payable $2,000
To record interest expense due.
e. Debit Accounts Receivable $800
Credit Service Revenue $800
To record service revenue earned.
f. Debit Insurance Expense $875
Credit Prepaid Insurance $875
To record expired insurance for the period.
g. Debit Supplies Expense $23,700
Credit Supplies $23,700
To record supplies expense for the period.
h. Debit Depreciation Expense - building and equipment $8,300
Credit Accumulated Depreciation - building and equipment $8,300
To record depreciation expense for the period.
i. Debit Interest Receivable $110
Credit Interest Revenue $110
To record interest revenue earned.
Explanation:
a) Data and Analysis:
a. Wages Expense $7,500 Wages Payable $7,500
b. Deferred Revenue $4,000 Service Revenue $4,000 ($24,000 * 2/12)
c. Utility Expense $520 Utility Payable $520
d. Interest Expense $2,000 Interest Payable $2,000 ($30,000 * 10% * 8/12)
e. Accounts Receivable $800 Service Revenue $800
f. Insurance Expense $875 Prepaid Insurance $875 ($4,200 * 5/24)
g. Supplies Expense $23,700 Supplies $23,700 ($3,100+23,000- 2,400)
h. Depreciation Expense - building and equipment $8,300 Accumulated Depreciation - building and equipment $8,300
i. Interest Receivable $110 Interest Revenue $110
In accounting terms, the adjusting entries are the entries that are usually made at the end of the accounting or the financial year in order to allocate the income and expenditure to the period of time in which they are actually incurred.
The Journal entries have been attached below.
Working notes:
[tex]\begin{aligned}\text{Service Revenue}= \$4,000\times \$24,000 \times\frac{2}{12}\end{aligned}[/tex]
[tex]\begin{aligned}\text{ Interest Payable}= \$2,000\times\$30,000 \times 10\% \times\frac{8}{12}\end{aligned}[/tex]
[tex]\begin{a;igned}\text{Prepaid Insurance}=\ $875 \times\$4,200 \times\frac{5}{24}\end{aligned}[/tex]
[tex]\text{Supplies}=\ $23,700 \times(\$3,100+23,000- 2,400)[/tex]
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Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2018. LPC's accountant has projected the following amortization schedule from issuance until maturity: Date Cash Interest Effective Interest Decrease in balance Outstanding balance 1/1/2018 $207,020 6/30/2018 $7,000 $6,211 $789 206,230 12/31/2018 $7,000 6,187 813 205,417 6/30/2019 $7,000 6,163 837 204,580 12/31/2019 $7,000 6,137 863 203,717 6/30/2020 $7,000 6,112 888 202,829 12/31/2020 $7,000 6,085 915 201,913 6/30/2021 $7,000 6,057 943 200,971 12/31/2021 $7,000 6,027 971 200,000 What is the annual stated interest rate on the bonds
The Lopez Plastics Co. issued the callable bonds at the annual stated interest rate of 7%.
Data and Calculations:
Date Cash Interest Effective Interest Decrease Outstanding
in balance balance
1/1/2018 $207,020
6/30/2018 $7,000 $6,211 $789 206,230
12/31/2018 $7,000 6,187 813 205,417
6/30/2019 $7,000 6,163 837 204,580
12/31/2019 $7,000 6,137 863 203,717
6/30/2020 $7,000 6,112 888 202,829
12/31/2020 $7,000 6,085 915 201,913
6/30/2021 $7,000 6,057 943 200,971
12/31/2021 $7,000 6,027 971 200,000
Total cash interest per year = $14,000 ($7,000 + $7,000)
Annual stated interest rate = 7% ($14,000/$200,000 x 100)
This annual interest rate can also be worked out as 7% ($7,000/$200,000 x 100 x 2), while the effective interest rate is 6% ($6,027/$200,000 x 100).
Thus, Lopez Plastics Co. issued the callable bonds at the annual stated interest rate of 7%.
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Avery works for Proctor and Gamble as a market researcher in the United States. P&G is interested in launching a new line of shampoo in India and has asked her to look into doing research to support this decision. Since Avery is not familiar with the language or the culture, what should she do?
Explanation:
According to the scenario in question, an effective alternative for market researcher Avery would be to hire an Indian market research company to carry out the research that P&G needs to do before launching a new shampoo line in India, because as Avery does not is familiar with the Indian language and culture, these could be significant barriers to conducting effective research, since India is a country known for having a very strong culture, so an Indian company could achieve the objective of Proctor and Gamble of more effectively, as it would have more specific information about the culture and the need of the Indian people about a particular product.
Which of the following statements about real and nominal interest rates is correct? A. An increase in the real interest rate is necessarily accompanied by either an increase in the nominal interest rate, an increase in the inflation rate, or both. B. When the inflation rate is positive, the nominal interest rate is necessarily greater than the real interest rate. C. When the nominal interest rate is rising, the real interest rate is necessarily rising; when the nominal interest rate is falling, the real interest rate is necessarily falling. D. If the nominal interest rate is 4 percent and the inflation rate is 3 percent, then the real interest rate is 7 percent.
Answer:
B. When the inflation rate is positive, the nominal interest rate is necessarily greater than the real interest rate.
Explanation:
A real interest rate can be regarded as
an interest rate that adjustment has been made on in order to remove the effects of inflation so that the real cost of funds to the borrower as well as real yield to the lender can be reflected. A nominal interest rate on the other hand can be regarded as interest rates calculated before consideration of inflation. It should be noted that When the inflation rate is positive, the nominal interest rate is necessarily greater than the real interest rate.
Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system.1. On February 2, the corporation purchased goods from Martin Company for $70,000 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26.2. On April 1, the corporation bought a truck for $50,000 from General Motors Company, paying $4,000 in cash and signing a one-year, 12% note for the balance of the purchase price.3. On May 1, the corporation borrowed $83,000 from Chicago National Bank by signing a $92,000 zero-interest-bearing note due one year from May 1.4. On August 1, the board of directors declared a $300,000 cash dividend that was payable on September 10 to stockholders of record on August 31.Make all the journal entries necessary to record the transactions above using appropriate dates.Edwardson Corporation
Answer:
Edwardson Corporation
Journal Entries:
February 2:
Debit Purchases $68,600
Credit Accounts Payable $68,600
To record credit purchases, net ($70,000 * 98%) with terms of 2/10, n/30.
February 26: Debit Purchases $1,400
Credit Accounts Payable $1,400
To revise the cash discounts not taken.
February 26: Debit Accounts Payable $70,000
Credit Cash $70,000
To record the full settlement for cash
April 1: Debit Truck $50,000
Credit Cash $4,000
Credit Notes Payable $46,000
To record the purchase of truck with a 12% note.
May 1: Debit Cash $83,000
Debit Interest Expense $9,000
Credit Notes Payable $92,000
To record zero-interest-bearing note due on May 1.
August 1: Debit Dividends $300,000
Credit Dividends Payable $300,000
To record the declaration of dividends.
Explanation:
a) Data and Analysis:
February 2: Purchases $68,600 Accounts Payable $68,600 ($70,000 * 98%)
February 26: Purchases $1,400 Accounts Payable $1,400
Accounts Payable $70,000 Cash $70,000
April 1: Truck $50,000 Cash $4,000 Notes Payable $46,000
May 1: Cash $83,000 Interest Expense $9,000 Notes Payable $92,000
August 1: Dividends $300,000 Dividends Payable $300,000
b) Note that the Interest Expense of $9,000 will be split between the current year and the following year. Specific information for the split is not available.
How do you make alot of moneyyyyy
Answer:
work hard or k*ll a rich man lol
Aircard Corporation tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period as if it uses a perpetual inventory system. The following are the transactions for the month of July.
Units Unit Cost
July 1 Beginning Inventory 2,700 $ 47
July 5 Sold 1,350
July 13 Purchased 6,700 51
July 17 Sold 3,700
July 25 Purchased 8,700 57
July 27 Sold 5,700
Calculate the cost of ending inventory and cost of goods sold assuming a perpetual inventory system is used in combination with
(a) FIFO and (b) LIFO.or (c) weighted average cost. (Round "Cost per Unit" to 2 decimal places.)
FIFO LIFO WEIGHTED AVERAGE COST
Cost of goods available for sale
Ending inventory
Cost of goods sold
Answer:
Units Unit cost Total
July 1 2700 47 126900
July 13 6700 51 341700
July 25 8700 57 495900
Total 18100 964,500
Weighted Average Cost = $964,500/18,100 = $53.28
Ending Inventory units = 18100-1,350-3,700-5,700 = 7350
a. FIFO
Cost of Goods Available for Sale = $964,500
Ending Inventory = 7,350*$52 = $382,200
Cost of Goods Sold = $964,500 - $382,200 = $582,300
b. LIFO
Cost of Goods Available for Sale = $964,500
Ending Inventory = (2,700*$47)+(4,650*$51) = $364,050
Cost of Goods Sold = $964,500 - $364,050 = $600,450
c. Weighted average cost
Cost of Goods Available for Sale = $964,500
Ending Inventory = 7350*$53.28 = $391,608
Cost of Goods Sold = $964,500 - $391,608 = $572,892
On January 1,2016, the Ruffin Corporation issued $40,000 par value, 4%, four-year bonds that mature on December 31, 2019. Ruffin will pay interest quarterly on March 31, June 30, September 30, and December 31. The company's fiscal year ends on December 31. What is the issue price of this bond assuming the market rate of interest is 4%?
Answer:
Face Value of the Bond = 40000
Effective Interest = 4%
Coupon rate = 4%
Years to Maturity = 4
Quarterly Coupon rate = 1%
No. of compounding periods = 16
Present Value of Face (40000*.85282) $34,112.85
Present Value of Interest Payments (800*14.7179) $5,887.15
Total $40,000.00
Face Value of Bond $40,000.00
Initial Amount of Discount/(Premium) $0.00
Note: As the bonds are issued at par, there is premium or discount.
For each hypothetical scenario, indicate whether the tariff described is more likely a protective tariff or a revenue tariff.
a. In response to concerns from business leaders, a legislator has designed a new tariff on raw materials used by many manufacturing firms. The legislator felt the new tariff was necessary based on input from the private sector that new discoveries of natural re
sources abroad would threaten to put domestic producers of raw materials out of business. To meet this goal, this tariff will charge $1,500 on every crate of the imported goods plus an additional 6% of the total value of the imported goods.
b. In an effort to balance next year's budget, a senator has proposed a new tariff. She proposed the new tariff with a goal of raising a total of $100 million, To meet this goal, this tariff will charge $2,000 on every ton that is imported.
Answer:
a. In response to concerns from business leaders, a legislator has designed a new tariff on raw materials used by many manufacturing firms. The legislator felt the new tariff was necessary based on input from the private sector that new discoveries of natural resources abroad would threaten to put domestic producers of raw materials out of business. To meet this goal, this tariff will charge $1,500 on every crate of the imported goods plus an additional 6% of the total value of the imported goods.
protective tariff since it is designed to protect domestic industries from competition of out of state producers. It is designed to increase the price of imported goods.b. In an effort to balance next year's budget, a senator has proposed a new tariff. She proposed the new tariff with a goal of raising a total of $100 million, To meet this goal, this tariff will charge $2,000 on every ton that is imported.
revenue tariff since its main purpose is to increase government revenue, not to protect domestic industries.The first scenario describes protective tariff whereas the second scenario explains revenue tariff.
What is protective and revenue tariff?In international trade, protective tariffs are applied on the imported goods to protect and prevent the domestic industries from competition.
In scenario a, a tariff of $1,500 and additional of 6% was charged on imported goods to protect the domestic producers. Therefore the first scenario describes protective tariff.
The revenue tariff on the other hand refers to a tariff that is designed with an intention to increase revenues.
The scenario b describes a tariff that was applied to reach the target revenue of $100 million. Therefore it is a revenue tariff.
Learn more about protective and revenue tariff here:
brainly.com/question/26525730
Use the following information: Accounts receivable, beginning of year: $16,000 Allowance for Uncollectible Accounts, beginning of year: $1,200 Net credit sales during the year: $105,000 Collections on accounts receivable during the year: $93,000 Delinquent accounts written off during the year: $1,600 Assume all accounts have normal balances. If bad debts are estimated to be 10% of ending accounts receivable, the adjusting entry to recognize bad debts would debit bad debt expense for
Answer:
Bad debts expense is $ 2240
Explanation:
Given that;
Accounts receivable, beginning of year = $16,000
Allowance for Uncollectible Accounts, beginning of year = $1,200
Net credit sales during the year = $105,000
Collections on accounts receivable during the year = $93,000
Delinquent accounts written off during the year: $1,600
If bad debts are estimated to be 10% of ending accounts receivable, the adjusting entry to recognize bad debts would debit bad debt expense for;
Account Receivable, ending = ( Accounts Receivable, beginning + Net credit sales - Collections on account - Accounts written off )
Account Receivable, ending = ( $16,000 + $105,000 - $93,000 - $1,600 )
Account Receivable, ending = $ 26,400
Estimated accounts uncollectible = (26,400 × 10%) = 2640
Allowance for uncollectible accounts debit balance = ( 1600 - 1200) = 400
so
Bad debts expense = Estimated accounts uncollectible - Allowance for uncollectible accounts debit balance
we substitute
Bad debts expense = (26,400 × 10%) - ( 1600 - 1200)
Bad debts expense = 2640 - 400
Bad debts expense = $ 2240
Therefore, Bad debts expense is $ 2240
Suppose Dan’s cost of making pizzas is C(Q) = 4Q + (Q2/40), and his marginal cost is MC = 4 + (Q/20). Dan is a price taker. (a) What is Dan’s supply function? (b) What is Dan’s supply function if he has an avoidable fixed cost of $10? [HINT: Recall that Dan will not supply anything unless P > min AC(Q). So, as a first step, you need to find AC(Q) from C(Q). In part (a), finding min AC(Q) is easy and you should be able to do so just by looking at the formula for AC (Q). For part (b), you can find the minimum of AC by using the fact that AC(Q) = MC(Q) at the minimum point of AC.]
Answer:
(a) Dan’s supply function S(P) can be stated as follows:
S(P)= 0 If P<4.
And S(P) = 20P- 80 If P≥4
(b) Dan’s supply function S(P) can be stated as follows:
S(P)= 0 If P<5.
And S(P) = 20P- 80 If P≥5.
Explanation:
Note that the equations given in the question can be correctly stated as follows:
C(Q) = 4Q + (Q^2/40) .................. (1)
MC = 4 + (Q/20) ............................ (2)
Therefore, we can now proceed as follows:
(a) What is Dan’s supply function?
The upward portion of the MC curve is the supply function of Dan.
Equating equation (2) to P, we have:
P = 4+ (Q/20)
P- 4 = Q/20
Q = 20P -80
The shutdown rule is that P > AVCmin
AVC = C(Q) / Q .................. (3)
Substituting equation (1) into (3), we have:
AVC = ( 4Q + Q^2/40)/ Q
AVC = 4 + (Q/40) ............... (4)
Since MC cuts the AVC at its minimum, equations (2) and (4) are then equated to solve Q which is the output level at which AVC is minimum as follows:
4 + (Q/20) = 4 + (Q/40)
(Q/20) - (Q/40) = 4 - 4
(Q/20) - (Q/40) = 0
Q = 0
Substituting Q = 0 into equation (4), we have:
AVCmin = 4+ (0/40)
AVCmin = 4
This implies that Dan will produce at any price ≥ $4.
Therefore, Dan’s supply function S(P) can be stated as follows:
S(P)= 0 If P<4.
And S(P) = 20P- 80 If P≥ 4.
(b) What is Dan’s supply function if he has an avoidable fixed cost of $10?
Since there is now a fixed cost, equation (1) becomes:
C(Q) = 4Q + (Q^2/40) + 10 ................. (5)
And the average cost (AC) will be as follows:
AC = (4Q + (Q2/40) + 10)/Q
AC = 4 + (Q/40) + (10/Q) .................... (6)
Since AC = MC when AC at its minimum, equations (2) and (6) are therefore equated to solve for Q as follows:
4 + (Q/40) + (10/Q) = 4 + (Q/20)
(Q/40) + (10/Q) = (Q/20)
Q = 20
Divide through by Q, we have:
(1/40) + (10/Q^2) = (1/20)
10/Q^2 = (1/20) - (1/40)
10/Q^2 = 0.05 - 0.025
10/Q^2 = 0.025
Q^2 = 10 / 0.025
Q^2 = 400
Q = [tex]\sqrt{400}[/tex]
Q = 20
Substituting Q = 20 into equation (6), we have:
AC = 4 + (20/40) + (10/20)
AC = $5
This implies that Dan will produce at any price ≥ $5.
Therefore, Dan’s supply function S(P) can be stated as follows:
S(P)= 0 If P<5.
And S(P) = 20P- 80 If P≥ 5
Apple Inc, designs, manufactures, and markets mobile devices, personal computers, and portable digital music players and sells a variety of related software and services. Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 29, 2018):
a. Borrowed $50 from banks due in two years.
b. Purchased additional investments for $210 cash; one-fifth were long term and the rest were short term.
c. Purchased property, plant, and equipment; paid $12,600 in cash and signed a short-term note for 1,490 Issued additional shares of common stock for $835 in cash; total par value was $1 and the rest was in excess of par value.
d. Sold short-term investments costing $10,020 for $10,020 cash.
e. Declared $52 in dividends to be paid at the beginning of the next fiscal year.
Required:
Prepare a journal entry for each transaction.
Answer:
Part a
Debit : Cash $50
Credit : Note Payable $50
Part b
Debit : Long - term Investments $42
Debit : Short - term Investments $168
Credit : Cash $210
Part c
Debit : Property, Plant and Equipment $14,090
Credit : Cash $12,600
Credit : Short term note payable $1,490
Part d
Debit : Cash $10,020
Credit : Short-term investments $10,020
Part e
Debit : Dividends $52
Credit : Shareholders for Dividends $52
Explanation:
The first step is to identify the accounts affected by the transaction (usually 2 or more) then prepare journal entries as above.
The consequences of poor
mangement to the government
and society .
Billy Baroo Company uses a job order cost system. The following information was found in the Work-in-Process account for the month of July.
Date Description Amount [DR. or (CR.)]
July 1 Balance $13,500
July 31 Direct labor 41,000
July 31 Direct materials 58,000
July 31 Factory overhead 32,800
July 31 Transfer to finished goods (86,000 )
Billy Baroo applies overhead to production at a predetermined rate of 80% based on the direct labor cost. Job #23, the lyjob still inprocessattheendofJuly, has been chargedwith direct aboro $12,000 Direct material charged to Job#23 was:_________
Answer:
$37,700
Explanation:
Ending balance in WIP = 13,500 + 41,000 + 58,000 + 32,800 - 86,000
Ending balance in WIP = $59,300
Direct material charged to Job #23 = $59,300 - $12,000 - ($12,000*80%)
Direct material charged to Job #23 = $59,300 - $12,000 - $9,600
Direct material charged to Job #23 = $37,700
Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs. The company had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to make $600 of capital expenditures on operating long-term assets and to invest $300 in net operating working capital. By how much did the firm's net income exceed its free cash flow
Answer:
$796
Explanation:
The computation of the excess amount is shown below:
As we know that
Free cash flows = Net Income + Depreciation + Interest (1-tax) - Capital expenditures +- changes in Working capital
Now the difference could be determined by the following formula
-Depreciation - interest (1-tax) + capital expenditure + changes in Working capital
= -$650 - 0.05 × $3,200 × (1 - 0.35) + $1,250 + $300
= $796