Answer:
5. Recognized direct labor and indirect labor used.
Debit Work in Process Inventory and Manufacturing Overhead.
Credit Factory Labor
Direct Labour is debited to the Work in Process Inventory account to show that they contributed directly. Both are credited to the Factory Labor account.
6. The production department requisitioned indirect materials for use in the factory.
Debit Manufacturing Overhead
Credit Raw Materials Inventory.
As the materials were indirect, they fall under the Manufacturing Overheads.
They were taken from the Raw Materials account so that should be credited.
8. Goods that were completed were transferred to finished goods.
Debit Finished Goods Inventory
Credit Work in Process Inventory
Both accounts are asset accounts so when taking from one you credit it and when giving the other you debit it. Goods were taken from the Work in Process account so it was credited.
10. Paid for raw materials purchased previously on account. (The answer for this transaction written in the question is for the previous transaction).
Debit Accounts Payable
Credit Cash.
The raw materials were.purchased on account making them a payable. As they have been paid the account must be reduced by debiting it. Cash will be credited as it is an asset that is reducing.
A trucking company sold its fleet of trucks for $55,400. The trucks originally cost $1,426,000 and had Accumulated Depreciation of $1,273,000 recorded through the date of disposal. What gain or loss did the trucking company record when it sold the fleet of trucks
Answer:
Loss of $97,600
Explanation:
From the question above a trucking company sold its fleet for $55,400
The truck original cost is $1,426,000
The depreciation is $1,273,000
The first step is to calculate the book value
Book value= cost-accumulated depreciation
= $1,426,000-$1,273,000
= $153,000
The next step is to subtract the book value from the cost to determine if it a gain or loss
= $55,400-$153,000
= -97,600
Since the value is negative then, the trucking company is at a loss of $97,600
The Tinslow Co. has 125,000 shares of stock outstanding at a market price of $93 a share. The company has just announced a 5-for-2 stock split. How many shares of stock will be outstanding after the split
Answer:
312,500
Explanation:
A stock split increases the number of outstanding shares and decreases the value of shares.
A stock split is a form of returns given to shareholders in a corporation.
In a 5-for-2 split, for every 2 shares owned, shares would increase by 5 .
(125,000 × 5 ) / 2 = 312,500
I hope my answer helps you
The fiscal year-end unadjusted trial balance for Collins Company is found on the trial balance tab. Collins Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: depreciation expense—store equipment, sales salaries expense, rent expense—selling space, store supplies expense, advertising expense. It categorizes the remaining expenses as general and administrative.
Descriptions of items that require adjusting entries on January 31 follow.
A) Store supplies still available at fiscal year-end amount to $2,950.
B) Expired insurance, an administrative expense, for the fiscal year is $1,880.
C) Depreciation expense on store equipment, a selling expense, is $6,300 for the fiscal year.
D) To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,560 of inventory is still available at fiscal year-end.
Missing information:
Cash 1,000
Merchandise inventory 12,500
Store supplies 5,800
Prepaid insurance 2,400
Store equipment 42,900
Accumulated depreciation - Store equip. 15,250
Accounts payable 10,000
Common stock 5,000
Dividends 2,200
Retained earnings 27,000
Sales 111,950
Sales discounts 2,000
Sales returns and allowances 2,200
Cost of goods sold 38,400
Salaries expense 35,000
Rent expense 15,000
Advertising expense 9,800
Total 169,200 169,200
Answer:
the closing entries should be:
Dr Sales revenues 107,750
Cr Income summary 107,750
Dr Income summary 110,270
Cr Cost of goods sold 39,340
Cr Salaries expense 35,000
Cr Rent expense 15,000
Cr Advertising expense $9,800
Cr Supplies expense 2,950
Cr Insurance expense 1,880
Cr Depreciation expense 6,300
Dr Retained earnings 2,520
Cr Income summary 2,520
Dr Retained earnings 2,200
Cr Dividends 2,200
Explanation:
A) Store supplies still available at fiscal year-end amount to $2,950.
Dr Supplies expense 2,950
Cr Supplies 2,950
B) Expired insurance, an administrative expense, for the fiscal year is $1,880.
Dr Insurance expense 1,880
Cr Prepaid insurance 1,880
C) Depreciation expense on store equipment, a selling expense, is $6,300 for the fiscal year.
Dr Depreciation expense 6,300
Cr Accumulated depreciation - Store equip. 6,300
D) To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,560 of inventory is still available at fiscal year-end.
Dr Shrinkage expense or COGS (I prefer to use COGS) 940
Cr Merchandise inventory 940
the adjusted income statement:
Revenues:
Sales $111,950 Sales discounts ($2,000) Sales returns and allowances ($2,200) $107,750Cost of goods sold ($39,340)
Gross profit $68,410
Operating expenses:
Salaries expense ($35,000) Rent expense ($15,000) Advertising expense ($9,800) Supplies expense ($2,950)Insurance expense ($1,880)Depreciation expense ($6,300) ($70,930)Net loss ($2,520)
An economy consists of three workers: Kevin, Rajiv, and Yakov. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Kevin can either mow 2 lawns or wash 1 car; Rajiv can either mow 1 lawn or wash 1 car; and Yakov can either mow 1 lawn or wash 2 cars.
For each of the scenarios listed below, determine how many lawns will be mowed and how many cars will be washed per day and enter these values into the corresponding row?
a. All three spend all their time mowing lawns. (A)
b. All three spend all their time washing cars. (B)
c. All three spend half their time on each activity. (C)
d. Kevin spends half his time on each activity, while Rajiv only washes cars and Yakov only mows lawns. (D)
Answer:
1. 40 lawns
2. 40 washed cars
3. 20 lawns, 20 washed cars
4. 25 lawns mowed, 25 washed cars
Explanation:
In the given question,
A) When all three spend all their time mowing lawns that is
Kevin= 2 X 10 hrs = 20
Rajiv = 1 x 10 hrs = 10
Yakov = 1 x10 hrs = 10
Total mowed lawns will be= 20 +10 + 10 = 40 lawns.
B) When all three spend their time washing cars
Kevin = 1 x 10 hrs = 10
Rajiv = 1 x 10 hrs =10
Yakov = 2 x 10 hrs = 20
Total cars washed= 20 +10 + 10
C) when all three people spend their half time on each activity
Kevin = 2 x 5 hours = 10
Rajiv = 1 x 5 hrs = 5
Yakov1 x 5 hrs = 5
Total lawn mowed will be= 10 + 5 + 5 = 20 therefore time spent on car washing will be 20 hrs.
D) Time on the mowing of the lawn will be =
Kevin = 2 x 5 hrs = 10
Rajiv = 0
Yakov = 1 x 10 hours = 10
Time on the washing of the car will be 20 hrs
Kevin = 1 x 5
Rajiv = 1 x 10
Yakov = 0
Total time = 15 hrs
Ginocera Inc. is a designer, manufacturer, and distributor of low-cost, high-quality stainless steel kitchen knives. A new kitchen knife series called the Kitchen Ninja was released for production in early 2016. In January, the company spent $600,000 to develop a late-night advertising infomercial for the new product. During 2016, the company spent $1,400,000 promoting the product through these infomercials, and $800,000 in legal costs. The knives were ready for manufacture on January 1, 2016.
Ginocera uses a job order cost system to accumulate costs associated with the kitchen knife. The unit direct materials cost for the knife is:
Hardened steel blanks
(used for knife shaft and blade) $4.00
Wood (for handle) 1.50
Packaging 0.50
The production process is straightforward. First, the hardened steel blanks, which are purchased directly from a raw material supplier, are stamped into a single piece of metal that includes both the blade and the shaft. The stamping machine requires one hour per 250 knives.
After the knife shafts are stamped, they are brought to an assembly area where an employee attaches the handle to the shaft and packs the knife into a decorative box. The direct labor cost is $0.50 per unit.
The knives are sold to stores. Each store is given promotional materials, such as posters and aisle displays. Promotional materials cost $60 per store. In addition, shipping costs average $0.20 per knife.
Total completed production was 1,200,000 units during the year. Other information is as follows:
Number of customers (stores) 60,000
Number of knives sold 1,120,000
Wholesale price (to store) per knife $16
Factory overhead cost is applied to jobs at the rate of $800 per stamping machine hour after the knife blanks are stamped. There were an additional 25,000 stamped knives, handles, and cases waiting to be assembled on December 31, 2016.
Required:
A. Prepare an annual income statement for the Kitchen Ninja knife series, including supporting calculations, from the information provided. Refer to the list of Amount Descriptions for exact wording of the answer choices for text entries.
Ginocera Inc.
Income Statement
For the Year Ended December 31, 2016
1
2
3
4 Selling expenses:
5
6
7
8
9 Administrative expenses:
10
11
12
B. Determine the balances in the work in process and finished goods inventories for the Kitchen Ninja knife series on December 31, 2016.
Amount Descriptions
Amount Descriptions
Cost of goods sold
Factory overhead
Gross profit
Income from operations
Infomercial campaign
Legal expenses
Loss from operations
Promotional materials
Sales
Shipping expenses
Total selling and administrative expenses
Total selling expenses
Work in process
Answer:
1. $432,000
2. Finished goods $776,000
Work in progress $230,000
Explanation:
GINOCERAINC. IncomeStatement For the Year Ended December31, 2016
Sales$17,920,000
(1,120,000 units × $16 )
Less Cost of goods sold10,864,000
(1,120,000 units × $9.70)
Grossprofit$7,056,000
Sellingexpenses:
Infomercial campaign $2,000,000
Promotional materials3,600,000.
(60,000 stores × $60)
Shipping expenses 224,000
(1,120,000 units × $0.20)
Total selling expenses$5,824,000
Administrativeexpenses:
Legal expenses 800,000
Total operating expenses 6,624,000
($5,824,000+800,000)
Income from operations $432,000
($7,056,000-6,624,000)
Calculation of the Manufacturing cost per unit of Knife is:
Direct materials:
Hardened Steel Blanks $4.00
Wood for handle $1.50
Packaging $0.50
Total direct materials $6.00
Direct labor $0.50
Factory overhead $3.20
($800÷250 knives perhour)
Total manufacturing cost per knife $9.70
2. The Finished Goods balance for year end December 31, 2016 will be:
(1,200,000 units – 1,120,000 units) × $9.70 =
=80,000×$9.70
=$776,000
Work in Process, for the year ended December 31, 2016 will be:
25,000 units × ($6.00 + $3.20)
25,000 units × $9.2
= $230,000.
Note that materials, stamping as well as factory overhead have been applied to the 25,000 units, but direct assembly labor has not been applied for these units.
PortaCom manufactures notebook computers and related equipment. PortaCom's product design group developed a prototype for a new high-quality portable printer. The new printer features an innovative design and has the potential to capture a significant share of the portable printer market. Preliminary marketing and financial analyses provided the following selling price, first-year administrative cost, and first-year advertising cost:
Selling Price $284 per unit
Administrative Cost $500,000
Advertising Cost $700,000
In the simulation model for the PortaCom problem, the preceding values are constants and are referred to as parameters of the model.
(a) An engineer on the product development team believes that first-year sales for the new printer will be 18,500 units. Using estimates of $50 per unit for the direct labor cost and $88 per unit for the parts cost, what is the first-year profit using the engineer's sales estimate?
(b) The financial analyst on the product development team is more conservative, indicating that parts cost may well be $101 per unit. In addition, the analyst suggests that a sales volume of 9,500 units is more realistic. Using the most likely value of $50 per unit for the direct labor cost, what is the first-year profit using the financial analyst's estimates?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Selling Price $284 per unit
Administrative Cost $500,000
Advertising Cost $700,000
(a) Units= 18,500
Direct labor= $50
Direct material= $88
Sales= 18,500*284= 5,254,000
Variable costs= (50 + 88)*18,500= (2,553,000)
Contribution margin= 2,701,000
Administrative Cost= (500,000)
Advertising Cost= (700,000)
Net operating income= 1,501,000
B)Units= 9,500
Direct labor= $51
Direct material= $101
Sales= 9,500*284= 2,698,000
Variable costs= (51 + 101)*9,500= (1,444,000)
Contribution margin= 1,254,000
Administrative Cost= (500,000)
Advertising Cost= (700,000)
Net operating income= 54,000
g On January 1, our company purchased a truck for $95,000. The estimated useful life of the truck is 5 years. The residual value at the end of 5 years is estimated to be $15,000. What is the depreciation expense for the second year of use if we use the double-declining balance method
Answer:
The depreciation expense for the second year is $22800
Explanation:
The double declining balance method is an accelerated form of allocating the depreciation expense to the asset. This method charges a high depreciation expense in the initial years of the estimated useful life of the asset and lower depreciation in the later years.
The formula to calculate the depreciation expense per year under this method is,
Depreciation expense = 2 * [ (Cost - Accumulated depreciation) / estimated useful life of the asset]
Double Declining Balance Method - Depreciation expense:
Year 1 = 2 * [ (95000 - 0) / 5]
Year 1 = $38000
Year 2 = 2 * [ (95000 - 38000) / 5]
Year 2 = $22800
How does risk pooling affect inventory levels when a company uses fewer and centralized warehouses? Please explain.
Answer:
In simple words, Inventory risk pooling is the concept that the variability in demand for raw materials is reduced by aggregating demand across multiple products. When properly employed, a business can use risk pooling to maintain lower inventory levels while still avoiding stock out conditions. Although for preventing stock out situation a company need warehouses where they can keep supply sufficient for emergency conditions.
Vernon is a cash basis taxpayer with a calendar tax year. On October 1, 2019, Vernon entered into a lease to rent a building for use in his business at $3,000 a month. On that day Vernon paid 18 months' rent on the building, a total of $54,000 ($3,000 × 18 months). How much may Vernon deduct for rent expense on his 2019 tax return?
Answer:
$9,000
Explanation:
Calculation of the amount Vernon deduct for rent expense on his 2019 tax return will be :
Rent(lease)×Numbers of months used
Where:
Rent (lease)= 3,000
Numbers of months=3
Hence:
3,000×3=$9,000
Therefore the amount Vernon deduct for rent expense on his 2019 tax return is $9,000 which is 3000×3 month.
The 3 months is from 1st October to 31st December.
1. A contract calls for a total payment of $800,000 with a guarantee. Essentially the contractor is guaranteed to make at least $200,000 above his costs. If the contractor can demonstrate his costs exceed $600,000, the project will pay the difference, with a $50,000 ceiling on the overage. The contractor demonstrates he spent $623,000. How much (gross) must the project remit to the contractor?
Answer:
The gross which the project has to remit to the contractor is $823,000
Explanation:
There are two things that must be fulfilled for the project to remit to the contractor is the amount .
1) First is the guaranteed payment of $800,000.
2) Second, the contractor's expense is more than $600,000, with a payment cap of up to $ 50,000.
The contractor has demonstrated that the cost incurred is $623,000 which is $23,000 above the limit of $600,000.
As this gap is still below $50,000, this will be handed over to the contractor by the client.
The gross which the project has to remit to the contractor = $800,000 + $23,000 = $823,000
A consumer household cleaning products company, the Klean Kompany, has multiple products. Each is labeled with the Klean Kompany name, including Klean Kompany Disinfecting Wipes, Klean Kompany Kitchen Shine, and Klean Kompany Toilet Bowl Scrub.Which branding strategy is Klean Kompany using to build its brand?
Answer:
brand extension
Explanation:
Based on the information provided within the question it can be said that Klean Kompany is using the branding strategy known as brand extension. This is the process of using the same brand name that has already been established and is well known, for a variety of different product lines, including new products entering the market. Which is exactly what Klean Kompany is doing by adding their brand name on every single product they release into the market. This is done in order to let people know that the product is from that brand and convince them to buy it.
At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 901,000 Credit sales 301,000 Its year-end unadjusted trial balance includes the following items. Accounts receivable $ 126,000 debit Allowance for doubtful accounts 5,100 debit Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (a) 4% of credit sales, (b) 2% of total sales and (c) 7% of year-end accounts receivable.
Answer:
Please find the detailed answer in the explanation section.
Explanation:
A. 4% of credit sales
Bad Debts Expense is 4% of $301,000
0.04 x $301,000
=$12,040
Adjusting entry
Dec. 31
Dr Bad debt expense $12,040
Cr Allowance for Doubtful allowance $12,040.
B. 2% of total sales
Total sales = cash sales + credit sales
$ 901,000 + $ 301,000
=$1,202,000
Bad Debts Expense is 2% of 1,202,000
0.02x $1,202,000
=$24,040
Adjusting entry
Dec. 31
Dr Bad debt expense $24,040
Cr Allowance for Doubtful allowance $24,040.
C. 7% of year-end accounts receivable.
Unadjusted balance is $5,100
Estimated balance = $8,820(7% of $126,000)
Adjusted balance is $13,920($5,100 + $8,820)
Adjusting entry
Dec. 31
Dr Bad debt expense $8,820
Cr Allowance for Doubtful allowance $8,820
An accountant has debited an asset account for $700 and credited a liability account for $620. Which of the following would be an incorrect way to complete the recording of the transaction?
A) Credit an asset account for $80
B) Credit another liability account for $80.
C) Credit a stockholders' equity account for $80.
D) Debit a stockholders' equity account for $80
Answer:
Debit a stockholder equity
Explanation:
The error in the entry here is that the either the asset asset is over debited with $80 or the liability account under credited with $80 (700-620)
While the asset account should have debit balances , The liability account and the stockholders equity should have credit balances.
A credit of $80 to the asset account means that the excess has been removed while a credit of $80 to another liability account provides for the shortage in the initial entry.
A credit of $80 to the stockholders account means that the shortage as a result of the error in the initial entries also been addressed.
Therefore the incorrect option is a debit entry of $80 to the stockholders equity account .
Implicit transaction
Answer:
Dear user,
Answer to your query is provided below
Implicit Transaction are like Rent of owned building, Interest of own capital etc.
Explanation:
These transactions deals with the expenditure incurred on the intangible items.
Implicit transaction refers to the opportunity transaction of using firm's own resources.
Sandra Sousa, Registered Dietician Trial Balance July 31, 2018 Balance Account Title Debit Credit Cash 33000 Accounts Receivable 9600 Office Supplies 2200 Prepaid Insurance 2800Equipment 18000Accounts Payable 3100Unearned Revenue 292Notes Payable 34000Sousa, Capital 22000Sousa, Withdrawals 2000 Service Revenue 11258 Salaries Expense 1500Rent Expense 1200 Utilities Expense 350Total $ Net Inoome 70,650 70,650Requirement1. Prepare the income statement for the month ended July 31, 2018,Requirement 2. Prepare the statement of owners equity for the month ended July 31, 2018. Requirement 3. Prepare the balance sheet &s of July 31, 2018. Requirement 4. Calculate the debt ratio as of July 31, 2018 70,650 $ 70,650 Select the debt ratio formula on the first line and then calculate the ratio -Debt ratio
Answer:
Requirement 1. Prepare the income statement for the month ended July 31, 2018.
Sandra Sousa, Registered Dietitian
Income Statement
For the Month Ended July 31, 2018
Service Revenue $11,258
Salaries Expense -$1,500
Rent Expense -$1,200
Utilities Expense -$350
Net income $8,208
Requirement 2. Prepare the statement of owners equity for the month ended July 31, 2018.
Sandra Sousa, Registered Dietitian
Statement of Owner's Equity
For the Month Ended July 31, 2018
Sousa, Capital balance July 1, 2018 $22,000
Investment during month $0
Net income $8,208
subtotal $30,208
Withdrawals during the month -$2,000
Sousa, Capital balance July 31, 2018 $28,208
Requirement 3. Prepare the balance sheet &s of July 31, 2018.
Sandra Sousa, Registered Dietitian
Balance Sheet
For the Month Ended July 31, 2018
Assets:
Cash $33,000
Accounts Receivable $9,600
Office Supplies $2,200
Prepaid Insurance $2,800
Equipment $18,000
Total assets $65,600
Liabilities and equity:
Accounts Payable $3,100
Unearned Revenue $292
Notes Payable $34,000
Sousa, Capital $22,000
Retained earnings $6,208
Total liabilities and equity $65,600
Requirement 4. Calculate the debt ratio as of July 31, 2018.
debt ratio = liabilities / assets = $65,600 / $37,392 = 175.44%
debt to equity ratio = liabilities / equity = $37,392 / $28,208 = 132.56%
Sweet Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company’s bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,088,700 of 14% term corporate bonds on March 1, 2020, due on March 1, 2035, with interest payable each March 1 and September 1, with the first interest payment on September 1st, 2020. At the time of issuance, the market interest rate for similar financial instruments is 12%. As the controller of the company, determine the selling price of the bonds.
Answer:
$4,775,565.49
Explanation:
The computation of the selling price of the bond is shown below:
Particulars Amount PV factor 6% Present value
Semi-annual interest $216,209 19.60044 $4,237,791.53
Principal $3,088,700 0.174110131 $537,773.96
Total $4,775,565.49
Working notes
Semi-annual interest $216,209 = $3,088,700 × 14% × 6 ÷ 12
PV factor 3%:
Semi-annual interest 13.76483115 = {(1 - (1.06)^-30) ÷ 0.06 }
Principal 0.174110131 = {1 ÷ 1.03^30}
Scenario 5.1 Suppose that personal income is $250 billion. Furthermore, assume that retained corporate earnings are $2 billion, social security taxes are $15 billion, social security benefit checks equal $16 billion, the capital consumption allowance is $32 billion, and corporate taxes amount to $40 billion. Refer to Scenario 5.1. Gross national product of this nation will be:
Answer:
Gross national product of this nation will be $323 billion
Explanation:
In order to calculate the Gross national product of this nation we would have to calculate the following formula:
Gross national product of this nation=personal income+retained corporate earnings+social security taxes+corporate taxes+capital consumption allowance-social security benefits
Gross national product of this nation=$250 billion+$2 billion+$15 billion+$40 billion+$32 billion-$16 billion
Gross national product of this nation=$323 billion
Gross national product of this nation will be $323 billion
An engineer has an income that puts him in the 25% federal income tax bracket and at the 10% state incremental tax rate. She has an opportunity to earn extra $500 by doing a small consulting job. What will be his effective tax rate on the additional income
Answer:
The answer is 32.5%
Explanation:
Solution
Recall that:
Engineer income tax =25%
Incremental tax rate =10%
Extra earnings =$500
Now, what ill be his effective tax rate on the additional income
Thus
Federal income tax = 500 * 25 % = $125
The state tax = (500 - 125) * 10 % = $37.50
Effective tax rate = (125 + 37.50) / $500
=162.50 /$ 500
= 0.325 or 32.5% that is (0.325 * 100)
Hence the effective tax rate is 32.5 %
Pizza is a normal good if the demand Group of answer choices
a. for pizza rises when income rises.
b. for pizza rises when the price of pizza falls.
c. curve for pizza slopes upward.
d. curve for pizza shifts to the right when the price of burritos rises, assuming pizza and burritos are substitutes.
Answer:
Option A, For Pizza rise when income rises.
Explanation:
Option A is correct because the income of the consumer and the demand for normal goods are positively related. So when consumer's income increases then the demand for normal goods also increases. If the income falls then the demand for normal goods also falls. Therefore, the movement in the same direction shows that there is a direct relationship between normal goods and the income of the consumer.
Which of the following events would cause the supply curve to decrease from Upper S 1 to Upper S 2? A. Lower expected future prices. B. An increase in the price of inputs. C. Upper A decrease in the price of inputs. D. An increase in the number of firms in the market.
An increase in the price of inputs supply curve to decrease from Upper to upper and law of supply.
Thus, The cost of production inputs is a significant component in addition to the product price, which is the primary factor according to the Law of Supply.
The cheapest price at which a business may sell a good without going bankrupt is the sum of money required to make it. Taking inputs and applying a procedure to them to produce an inputs constitutes the process of producing a good or service.
The finished good or service is the output, and the inputs are things like raw materials, labor, utilities, licensing costs, and even other goods. These materials are sometimes referred to as production factors. The cost of producing the good rises when input prices rise. And as a result, companies must sell their products at each price.
Thus, An increase in the price of inputs supply curve to decrease from Upper to upper and law of supply.
Learn more about Law of supply, refer to the link:
https://brainly.com/question/30161327
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How much do I need to retire? Here are your assumptions. You are 30. You will retire when you are 65. You want $40,000 a year when you retire. You will be an aggressive investor today and have an average market return of 9%. When you retire, you will be conservative in your investing and get into bonds that have a market return of 4.5%. You expect that inflation will be 3%. You currently have $20,000 you put into the market this morning. You are expecting to live until 85. How much do you need to have saved when you turn 65? (Hint: if you want to work out how much you need to save every year, under PMT, it will be 36 years)
Answer:
The amount to be saved at the age of 65 is $1940755.74
Explanation:
To calculate the amount needed at 65 including inflation = 40000 * 1.0336 = 115931.13
Present Value of Growing Annuity = PMT / (r-g) [ 1 - {(1+g)/(1+r)}n ]
= 115931.13 / (0.045 - 0.03) [ 1 - (1.03/1.045)20 ]
= 7728742.2 * 0.2511089
= 1940755.74
During December, Far West Services makes a $3,200 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.5%. (Note: the sales tax amount is in addition to the credit sale amount.) Record sales and sales tax payable. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
Dr Accounts receivable 3,472
Cr Sales 3,20
Cr Sales tax payable 272
Explanation:
Since $3,200 is the credit sale and the state sales tax rate is 6% while the local sales tax rate is 2.5% which means we have to calculate for 6% of 3,200 as well as 2.5% of 3,200 which is: Sales tax payable
6%×3,200=192
2.5%×3,200=80
192+80= 272
The last step is to Debit Accounts receivable with 3,472 (3,200+272) , Credit Sales 3,200 and Credit Sales tax payable with 272
Far West Services Journal entry
Dr Accounts receivable 3,472
(3,200+272)
Cr Sales 3,200
Cr Sales tax payable 272
Following are transactions for Valdez Services, a company owned by Brina Valdez. A. Brina Valdez invested $20,000 cash in the company In exchange for common stock. B. The company provided services to a client and Immediately received $900 cash. C. The company recelved $10,000 cash from a client in payment for services to be provided next year. D. The company received $3,500 cash from a client in partial payment of accounts receivable. E. The company borrowed $5,000 cash from the bank by signing a note payable. Required: Examine the transactions and identify those that create revenues for Jade Services.Transaction ATransaction BTransaction CTransaction DTransaction EPrepare general Journal entries to record those transactions that created those revenues in the above given order.
Answer:
Transactions that create revenue :
Transaction B
Transaction C
Transaction D
Journal Entries :
Transaction B
Cash $900 (debit)
Sales Revenue $900 (credit)
Transaction C
Cash $10,000 (debit)
Unearned Revenue $10,000 (credit)
Transaction D
Cash $3,500 (debit)
Accounts Receivable $3,500 (credit)
Explanation:
Transactions that create revenue
Hint ; Revenue is the increases in income that results in increases in assets and decreases in liabilities
Required information [The following information applies to the questions displayed below.] Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $8,200 cash and $35,200 of photography equipment in the company in exchange for common stock. 2 The company paid $3,800 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $1,050 cash. 20 The company received $5,031 cash in photography fees earned. 31 The company paid $845 cash for August utilities. Prepare general journal entries for the above transactions.
Answer:
Pose-for-Pics
General Journal Entries:
Aug. 1:
Debit Cash $8,200
Debit Equipment $35,200
Credit Common Stock $43,400
To record the issue of common stock for cash and equipment.
Aug. 2:
Debit Prepaid Insurance $3,800
Credit Cash Account $3,800
To record the payment of insurance covering 24 months.
Aug. 5:
Debit Office Supplies $1,050
Credit Cash Account $1,050
To record the payment for office supplies.
Aug. 20:
Debit Cash Account $5,031
Credit Photography Fees $5,031
To record fees earned.
Aug. 31:
Debit Utilities $845
Credit Cash Account $845
To record payment for August Utilities.
Explanation:
General Journal entries are made to record business transactions as they occur on a daily basis. Journal entries show the General Ledger accounts to be debited and the ones to be credited. They form the initial records of any business transactions.
Coca-Cola has supported numerous health and sporting cause, but to what extent is this genuine CSR.
Answer:
Considerable extent
Explanation:
Note that CSR (Corporate social responsibility) entails that an organization gives back to its community or environment in which it operates in areas such as financing community developmental projects, providing employment etc.
Coca-Cola, therefore, has done what CSR entails although it could still do more by reducing the environmental pollution coming from its factories, reducing the calories found in its drinks etc.
On January​ 1, 2018, the Prepaid Insurance account of​ Dogwood, Inc. had a beginning balance of $ 1,800. Three months of insurance premiums remain in this beginning balance. On February​ 21, 2018, the company paid an annual insurance premium in the amount of $ 4,100 for the period beginning March 1. On February​ 28, 2018, the balance in Prepaid Insurance is $ 1,200.A. TrueB. False
Answer:
B. False
Explanation:
Beginning balance
-Period of policy= expired 2 months
-Period of unexpired insurance = 1 month (Out of 3 month, Insurance premium for period "Jan 1 to Feb 28" is expired)
Amount in prepaid insurance insurance= $1800 * 1/3 = $600
Current balance
Period = "0" since period of coverage will start from 1 march
Period of unexpired insurance = 12
Amount in prepaid insurance = 4,100
Thus, Total amount in prepaid insurance for the beginning and Current period= $600 + $4,100 = $4,700
The amount in prepaid insurance is $4700, hence the balance as stipulated as Prepaid Insurance = $ 1,200 is false
Eastern University had the following transactions at the beginning of its academic year: Student tuition and fees were billed in the amount of $7,150,000. Of that amount $4,620,000 was collected in cash. Pell Grants in the amount of $2,012,000 were received by the university. The Pell Grants were applied to student accounts. Student scholarships, for which no services were required, amounted to $570,000. These were applied to student tuition bills at the beginning of each semester. Required: Prepare journal entries to record the above transactions assuming: a. Eastern University is a public university. b. Eastern University is a private university.
Answer:
100
Explanation:
hope this helps
Midyear on July 31st, the Baldwin Corporation's balance sheet reported: Total Liabilities of $101.255 million Cash of $8.040 million Total Assets of $163.111 million Retained Earnings of $34.226 million. What was the Baldwin Corporation's common stock
Answer:
Stock = 27.629 million
Explanation:
Baldwin Corporation
Balance Sheets
Assets
Cash of $8.040 million
Total Assets $163.111 million
Liabilities and Owner's Equity $163.111 million
Stock 27.629 million
Total Liabilities $101.255 million
Retained Earnings $34.226 million
According to Balance sheet approach total assets must equal total liabilities and Owner's Equity.
Total assets including cash are given which are equal to $163.111 million and when we subtract total liabilities and retained earning from it we get the value of stock.
Stock = Total Assets- Total Liabilities - Retained Earnings
Stock = $163.111 million - $101.255 million-$34.226 million
Stock = 27.629 million
UNEVEN CASH FLOW STREAM
Find the present values of the following cash flow streams at an 8% discount rate. Round your answers to the nearest cent.
0 1 2 3 4 5
Stream A $0 $100 $400 $400 $400 $300
Stream B $0 $300 $400 $400 $400 $100
Stream A $
Stream B $
What are the PVs of the streams at 0%, compounded annually?Stream A $ Stream B $
Answer:
Present Value
Stream A $1,251.247
Stream B $1,300.316
Explanation:
The present value of a future sum is the amount that would be invested today at the prevailing interest rate to have the sum
Stream A
(100 × 1.08^9-1) + (400× 1.08^-2) + (400× 1.08^-3) + (400× 1.08^-4) + (300× 1.08^-5) = $1,251.247
Stream B
(300 × 1.08^9-1) + (400× 1.08^-2) + (400× 1.08^-3) + (400× 1.08^-4) + (100× 1.08^-5) = $1,300.316
Present Value
Stream A $1,251.247
Stream B $1,300.316
19165/[214,000/FastForward had cash inflows from operations of $64,000; cash outflows from investing activities of $48,500; and cash inflows from financing of $26,500. The net change in cash was:
Answer:
$42,000
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net change in cash is as a result of the flow of cash within these activities.
Given that cash inflows from operations of $64,000; cash outflows from investing activities of $48,500; and cash inflows from financing of $26,500,
Net change in cash
= $64,000 - $48,500 + $26,500
= $42,000