Compute the 2019 Federal income tax liability and the marginal and effective tax rates in each of the following independent cases. Click here to access the 2019 tax rate schedule. If required, round the tax liability the nearest dollar. When required, round the average rates to four decimal places before converting to a percentage (i.e. .67073 would be rounded to .6707 and entered as 67.07%). a. Chandler is single and reports taxable income of $125,200.
Answers
Answer:
Tax liability = $24,222.50Marginal rate = 24%Average rate = 19.35%Explanation:
Question requires that we find the Tax liability, Marginal rate and Average rate.
Tax liability:
Chandler is in the $84,200 to $160,725 bracket.
= 14,382.50 + 24% * (125,200 - 84,200)
= 14,382.50 + 9,840
= $24,222.50
Marginal rate = 24%
Chandler's bracket is the 24% bracket.
Average rate:
= Tax/ Taxable income
= 24,222.50 / 125,200
= 19.35%
Related Questions
Abbey Park was organized on April 1, 2016, by Trudy Crawford. Trudy is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Trudy prepared the following income statement for the quarter that ended March 31, 2017.
Abbay Park
Income statement
For the quarter ended March 31,2017
Revenues 83000
Rent Revenue
Operating expenses
Advertising expense 4200
Salaries and wages expense 27600
Utilities expense 1500
Depreciation expense 800
Maintenance expense 2800
Total operating expense 36900
Net income 46100
Trudy knew that something was wrong with the statement because net income had never exceeded $20,000 in any one quarter. Knowing that you are an experienced accountant, she asks you to review the income statement and other data. You first look at the trial balance. In addition to the account balances reported in the income statement, the ledger contains these selected balances at March 31, 2017.
Supplies 4500
Prepaid insurance 7200
Notes payable 20000
You then make inquiries and discover the following.
1. Rent revenue includes advanced rentals for summer-month occupancy, $21,000.
2. There were $600 of supplies on hand at March 31.
3. Prepaid insurance resulted from the payment of a 1-year policy on January 1, 2017.
4. The mail on April 1, 2017, brought the following bills: advertising for week of March 24, $110; repairs made March 10, $1,040; and utilities $240.
5. Wage expense totals $290 per day. At March 31, 3 days’ wages have been incurred but not paid.
6. The note payable is a 3-month, 7% note dated January 1, 2017. Instructions With the class divided into groups, answer the following.
(a) Prepare a correct income statement for the quarter ended March 31, 2017.
(b) Explain to Trudy the generally accepted accounting principles that she did not follow in preparing her income statement and their effect on her results.
Answers
Answer:
Abbey Park
a) Correct Income Statement for the quarter ended March 31, 2017:
Abbey Park
Income statement
For the quarter ended March 31,2017
Revenue
Rent Revenue $62,000
Operating expenses
Advertising expense 4,310
Salaries and wages expense 28,470
Utilities expense 1,740
Depreciation expense 800
Maintenance expense 3,840
Supplies Expense 3,900
Insurance expense 1,800
Interest expense 350
Total operating expense 45,210
Net income $16,790
b) The generally accepted accounting principles that Trudy did not follow in the preparation of her income statement are the accrual concept and the matching principle. Failure to follow these principles means that the net income will be misstated. The accounts were based on the cash basis instead of the accrual basis of generally accepted accounting principles. This means that records for non-cash transactions were not recognized while some others were recognized based on their cash effects.
Explanation:
a) Income Statement for the quarter ended March 31, 2017:
Abbey Park
Income statement
For the quarter ended March 31,2017
Revenue
Rent Revenue $83,000
Operating expenses
Advertising expense 4,200
Salaries and wages expense 27,600
Utilities expense 1,500
Depreciation expense 800
Maintenance expense 2,800
Total operating expense 36,900
Net income $46,100
Adjustments:
1. Rent Revenue = $62,000 ($83,000 - 21,000)
2. Supplies Expenses $3,900 ($4,500 - 600)
Supplies balance = 600
3. Prepaid Insurance = $5,400 ($7,200 - 1,800)
Insurance expense = $1,800 ($7,200/4)
4. Advertising Expense = $4,310 ($4,200 + 110)
Maintenance Expense = $3,840 ($2,800 + 1,040)
Utilities Expense = $1,740 ($1,500 + 240)
Expenses Payable = $1,390
5. Wages Expenses = $28,470 (27,600 + ($290 * 3))
Wages payable $870
6. Interest Expense = $350 ($20,000 * 7% * 3/12)
A company has been determined the they plan to invest $9,800,000 in a new solar field in November 2020. The investment will start paying off providing $200,000 per month starting in May 2021. For planning purposes, the project life would be to November 2030. What is the present value of this project at a required rate of return of 6% per year (Hint - use XNPV)?
Answers
Answer:
The Net Present Value of this project is:
$7,358,638.89
Explanation:
a) Data and Calculations:
Estimated cost of investment = $9,800,000 in November 2020
Monthly benefits = $200,000 starting from May 2021
Period of benefits = 9.5 years
Required rate of return = 6% p[er year
Using the Excel NPV (XNPV) function, the NPV = $7,358,638.886
b) The Present Value of the project is the discounted value of the cash inflows of $200,000 for 114 months and $9,800,000 on day 1. An excel copy of the calculations is attached.
1) Consider the single factor APT. Portfolio A has a beta of 1.7 and an expected return of 19%. Portfolio B has a beta of .6 and an expected return of 15%. The risk-free rate of return is 11%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio __________ and a long position in portfolio
Answers
Answer:
A, B.
Explanation:
E(r) = Rf + beta (Risk premium on factor)
PORTFOLIO A
19% = 11% + 1.7(RP)
19% - 11% = 1.7(RP)
(RP) = 0.08/1.7
(RP) = 0.047059
(RP) = 4.706%
PORTFOLIO B
15% = 11% + 0.6(RP)
15% - 11% = 0.6(RP)
(RP) = 0.04/0.6
(RP) = 0.06667
(RP) = 6.667%
As risk premium is lower in case of portfolio A, the correct strategy is Short Position in Portfolio A and Long Position in Portfolio B
Below are Company Y's financial statements:
Income Statement
Balance Sheet
Sales $7,900
Current assets $3,900
Current liabilities $2,100
Costs 5,500
Fixed assets 8,600
Long-term debt 3,700
Taxable income $2,400
Equity 6,700
Taxes (25%) 600
Total $12,500
Total $12,500
Net income $1,800
We assume that Company Y's current liabilities, assets, and costs are proportional to its sales. However, long-term debt and equity are not proportional to sales. We assume that the company's dividend payout ratio is 40 percentage and remains constant. The company's sales are projected to increase by exactly 15% in the next year. What is the external financing needed?
Answers
Answer:
Company Y
The external financial needed is:
= $1,290.
Explanation:
a) Data and Calculations:
Company Y's financial statements:
Income Statement
Sales $7,900
Costs 5,500
Taxable income $2,400
Taxes (25%) 600
Net income $1,800
Balance Sheet
Current assets $3,900
Fixed assets 8,600
Total assets $12,500
Current liabilities $2,100
Long-term debt 3,700
Equity 6,700
Total liab. & equity $12,500
Projected Income Statement:
Sales $9,085 ($7,900 * 1.15)
Costs 6,325 ($5,500 * 1.15)
Taxable income $2,760
Taxes (25%) 690
Net income $2,070
Dividends = 40% $828
Retained earnings $1,242
Projected Balance Sheet
Current assets $4,485 ($3,900 * 1.15)
Fixed assets 9,890 ($8,600 * 1.15)
Total assets $14,375
Current liabilities $2,415 ($2,100 * 1.15)
Long-term debt 4,018 ($14,375 - 2,415 - 7,942)
Equity 7,942 ($6,700 + $1,242)
Total liab. & equity $14,375
Working capital = $2,070 ($4,485 - $2,415)
Capital expenditure = $1,290 ($9,890 - 8,600)
External financing needed = Net income minus (working capital plus capital expenditure)
= $2,070 - ($2,070 + 1,290)
= $1,290
Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go-karts: Deluxe and Basic. Activity Expected Costs Expected Activity Handling materials $ 625,000 100,000 parts Inspecting product 900,000 1,500 batches Processing purchase orders 105,000 700 orders Paying suppliers 175,000 500 invoices Insuring the factory 300,000 40,000 square feet Designing packaging 75,000 2 models Required: Compute the activity rate for each activity, assuming the company uses activity-based costing. (Round activity rate answers to 2 decimal places.)
Answers
Answer:
Handling materials = $6.25 per part
Inspecting product = $600 per batch
Processing purchase = $150 per order
Handling materials = $350 per invoice
Insuring the factory = $7.50 per square feet
Designing packaging = $37,500 per model
Explanation:
Activity rate = Estimated Cost ÷ Estimated Activity
therefore,
Handling materials = $ 625,000 ÷ 100,000 parts = $6.25
Inspecting product = $ 900,000 ÷ 1,500 batches = $600
Processing purchase = $ 105,000 ÷ 700 orders = $150
Handling materials = $ 175,000 ÷ 500 invoices = $350
Insuring the factory = $ 300,000 ÷ 40,000 square feet = $7.50
Designing packaging = $ 75,000 ÷ 2 models = $37,500
What is the variable cost of sterilizing an instrument using the new equipment
After graduating from dental school two years ago, Dr. Lauren Farish purchased the dental practice of a long-time dentist who was retiring. In January of this year she had to replace the out-dated autoclave equipment she inherited from the previous dentist. Now as she is preparing her budget for next year, she is concerned about understanding how her cost for sterilizing her dental instruments has changed. She has gathered the following information from her records:
Month Number of instruments used Total autoclave cost
January 634 $7,466
February 534 6,526
March 734 7,148
April 934 9,028
May 834 7,744
June 1,034 8,596
July 1,234 10,009
August 1,134 9,924
What is the variable cost of sterilizing an instrument using the new equipment? (Round answer to 2 decimal places, e.g. 15.25.)
Variable cost _____ $ per instrument
What is the fixed cost of the autoclave equipment? (Round answer to 0 decimal places, e.g. 5,275.)
Fixed cost $ ________
What is the cost formula that Dr. Farish should use for estimating autoclave sterilization costs for next year
Answers
Answer:
Results are below.
Explanation:
Giving the following information:
Month Number of instruments used Total autoclave cost
January 634 $7,466
February 534 6,526
March 734 7,148
April 934 9,028
May 834 7,744
June 1,034 8,596
July 1,234 10,009
August 1,134 9,924
To determine the fixed and variable cost, we need to use the high-low method:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (10,009 - 6,526) / (1,234 - 534 )
Variable cost per unit= $4.9757 per unit
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 10,009 - (4.9757*1,234)
Fixed costs= $3,869
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 6,526 - (4.9757*534)
Fixed costs= $3,869
Total cost= 3,869 + 4.9757x
x= number of instruments
Provide examples of each: consumer durable goods, consumer nondurable goods, and services.
Which of the following are consumer durable goods?
a. A new Ford Fiesta
b. Heart surgery
c. A dining room table
d. A jacket
Answers
Answer:
Consumer durable goods: cars, departments.
Consumer nondurable goods: canned food, clothes.
Services: cable, internet, energy and water.
And the correct answer is the option A: A new Ford Fiesta.
Explanation:
To begin with, the durable goods in the microeconomics theory are those that do not wear out with one ot two uses, but instead it actually has a long life with multiple uses. It does not mean that those goods stay forever new. Meanwhile the nondurable goods are those that do wear out after one or two uses of the good and the most common example of that is the food and the clothes. Finally, the services are those that the people ask for in the case they want and specific situation to happen to them, like to have water, to have cable and internet, etc.
The first step in the decision-making process is to a. define your wants and needs b. identify your choices c. make a decision d. gather information Please select the best answer from the choices provided СА OB C Save and Exit Mark this and return
Answers
the first step is identify your choices
M. K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a national exchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted that the company’s earnings would grow by 20% this year. Unfortunately, sales have been less than expected for the year, and Gallant concluded within two weeks of the end of the fiscal year that it would be impossible to report an increase in earnings as large as predicted unless some drastic action was taken. Accordingly, Gallant has ordered that wherever possible, expenditures should be postponed to the new year—including canceling or postponing orders with suppliers, delaying planned maintenance and training, and cutting back on end-of-year advertising and travel. Additionally, Gallant ordered the company’s controller to carefully scrutinize all costs that are currently classified as period costs and reclassify as many as possible as product costs. The company is expected to have substantial inventories at the end of the year.
1. Why would reclassifying period costs as product costs increase this period’s reported earnings?
2. Do you believe Gallant’s actions are ethical? Why or why not?
Answers
Explanation
A marketing researcher wants to estimate the mean amount spent (S) on Amazon.com by Amazon Prime member shoppers. Suppose a random sample of 100 Amazon Prime member shoppers who recently made a purchase on Amazon.com yielded a mean of $1,500.
a. Suppose the standard deviation of the amount spent ($) on Amazon.com is $200. Construct a 95% confidence interval estimate for the mean spending for all Amazon Prime member shoppers.
b. Suppose the standard deviation of the sample of 100 Amazon Prime member shoppers is $200. Construct a 95% confidence interval estimate for the mean spending for all Amazon Prime member shoppers.
Answers
Answer:
The answer is below
Explanation:
a)
Given that mean (μ) = $1500, standard deviation (σ) = $200, sample size (n) = 100
confidence (C) = 95% = 0.95
α = 1 - C = 1 - 0.95 = 0.05
α/2 = 0.05 / 2 = 0.025
The z score that corresponds with 0.475 (0.5 - 0.025) is 1.96. Therefore the margin of error (E) is:
[tex]E = z_\frac{\alpha}{2} *\frac{\sigma}{\sqrt{n} } \\\\E=1.96*\frac{200}{\sqrt{100} } =39.2\\[/tex]
The confidence interval = (μ ± E) = (1500 ± 39.2) = (1500 - 39.2, 1500 + 39.2) = (1460.8, 1539.2)
The confidence interval is between $1460.8 and $1539.2.
b) Given that mean (μ) = $1500, standard deviation for 100 samples = σ /√n = $200,
confidence (C) = 95% = 0.95
[tex]E = z_\frac{\alpha}{2} *\frac{\sigma}{\sqrt{n} } \\\\E=1.96*200=392\\[/tex]
The confidence interval = (μ ± E) = (1500 ± 392) = (1500 - 392, 1500 + 392) = (1108, 1892)
The confidence interval is between $1108 and $1892.
A company issues 8%, 5 year bonds with a par value of $500,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%. What is the bond's issue (selling) price, assuming the Present Value of $1 factor for 3% and 10 semi-annual periods is .7441 and the Present Value of an Annuity factor for the same rate and period is 8.5302
Answers
Answer:
$542,654
Explanation:
Interest payment (Semi-annual) = 500,000 * 8% * 6/12 = $20,000
PV of principal to be received at the maturity = Par value of bonds * PV factor (r%, n) = 500,000 * PV factor (3%, 10) = 500,000 * 0.7441 = $372,050
PV of interest to be received periodically over the term of the bonds = Interest * PV annuity factor (r%, n) = 20,000 * PV annuity factor (3%, 10) = 20,000 * 8.5302 = $170,604
Issue price of bond = Present value of principal to be received at the maturity + Present value of interest to be received periodically over the term of the bond = $372,050 + $170,604 = $542,654
Activity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8 per guest check-in, $25 per room cleaning, and $4 per served meal (not including food). Ginny Campbell visited the hotel for a three-night stay. Campbell had three meals in the hotel during her visit. Determine the total activity-based cost for Campbell's visit. $
Answers
Answer:
Total allocated costs= $95
Explanation:
To allocate costs to the Campbell visit, we need to use the following formula:
Allocated costs= Estimated activity rate * Actual amount of allocation base
guest check-in= 8
room cleaning= 25*3= 75
served meal= 4*3= 12
Total allocated costs= $95
Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Beginning Inventory Ending Inventory Finished goods (units) 20,000 30,000 Raw material (grams) 50,000 40,000 Each unit of finished goods requires 7 grams of raw material. The company plans to sell 270,000 units during the year. How much of the raw material should the company purchase during the year
Answers
Answer:
1,950,000 grams
Explanation:
The computation of the material should be purchased is given below:
Raw materials purchased is
= Ending inventory of raw materials + Materials to be used - Beginning Inventory of raw materials
where,
Raw materials to be used = units produced × 7 grams
Units produced is
= Ending inventory of finished goods + units sold - beginning inventory of finished goods
= 30,000 units + 270,000 units - 20,000 units
= 280,000
Now raw materials used is
= 280,000 × 7 grams
= 1,960,000 grams
Now
Materials purchased = Ending inventory of raw materials + Materials to be used - Beginning Inventory of raw materials
= 40,000 grams + 1,960,000 grams - 50,000 grams
= 1,950,000 grams
If a government wants to efficiently reduce a widespread negative externality like air pollution, it must know the costs of pollution abatement of the individual polluters. However, this information is difficult to obtain directly. Tradeable emissions permits are one way to solve the asymmetric information problem affecting pollution abatement efforts.
a. Because the permits are tradeable, firms with ___ abatement costs will sell some of their permits to firms with ___ abatement costs.
b. Now consider that even after a firm has sold its permits, it must still reduce its pollution output.
Since those who sell their permits would have ___ abatement costs, the negative externality is reduced at ___ possible cost to society.
Answers
Answer:
a). lower, higher
b). lower, lower
Explanation:
The abatement costs may be defined as the cost that is borne by a firm or an organization when it is necessary to remove any undesirable nuisances or any negative byproducts of the process that is created during the production process. It is cost incurred in eliminating a negative externality such as environmental externality like pollution.
In the context, for solving the pollution abatement cost, the tradeable emissions permits as they are tradebale, an organization with a lower abatement cost sells the permits to the higher abatement cost firms.
Even after selling, the firm still have to reduce the pollution output, then the firm that sold the permit would have lower abatement cost and the negative externality is also reduced at the lower possible cost.
You make $13.00 Per Hour. You work 40 hrs. a week for 5 weeks this month. Total Hrs. Worked = _____
What is your monthly income? ____
Answers
Answer:
assuming that this month was extraordinarily long, and had more days than any other month in history, you worked a total of 5 x 40 = 200 hours
Also, due to length of the month, you will earn 200 hours x $13 = $2,600
Generally months tend to have between 20-23 labor days
The Oxford Company uses a job order cost system and applies factory overhead to jobs on the basis of direct labor cost. During the month of July, the following activities took place in the work-in-process account:
Beginning $15,000
Direct materials 10,000
Direct labor 30,000
Overhead applied 15,000
 Â
At the end of July, only one job (Job #15), was still in process. This job has been charged with $2,000 of direct materials cost.
Required:
Determine the amount of direct labor cost incurred and overhead applied in the ending inventory of work-in-process on July 31.
Answers
Answer:
See below
Explanation:
The amount of direct labor cost incurred is computed as;
= $30,000/$70,000 × $2,000
= $857
Overhead applied in ending working in the ending inventory of work in process on July 31
= $15,000/$70,000 × $2,000
= $429
Consider a process that consists of three steps 1, 2 and 3. The required processing times and set-up times at each of the steps are listed below. There is unlimited space for buffer inventory between these steps, and there is no shortage of ram material. Show all work.
Process step 1 2 3
Set up time 50 min 120 min 0
Activity time 2 min/unit 1 min/unit 5 min/unit
Assume that the current production batch size is 100 units for all three steps. The demand is 10 units per hour. Which of the following statements are true for the current setting?
I. Step 1 is the bottleneck.
II. Flow rate is limited by demand.
III. We could reduce inventory in the system without decreasing flow rate.
a. I only
b. II only
c. III only
d. I and II
e. I and III
f. II and III
g. All of the above
h. None of the above
Answers
Answer:
vbnm,sdfghjkertyui
Explanation:
1. Firm L, which operates an internet clothing business, is located in State L. This year, the firm shipped $18 million of merchandise to customers living in State R. State R imposes a six percent sale and use tax on the purchase and consumption of retail goods within the state. a) Do State R residents who purchased Firm L merchandise owe use tax on their purchases? b) If State R could legally require Firm L to collect a 6 percent tax on internet sales made to residents of the State, how much additional revenue would the state collect?
Answers
Answer:
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The Marchetti Soup Company entered into the following transactions during the month of June:
(a) purchased inventory on account for $245,000 (assume Marchetti uses a perpetual inventory system);
(b) paid $60,000 in salaries to employees for work performed during the month;
(c) sold merchandise that cost $160,000 to credit customers for $300,000;
(d) collected $280,000 in cash from credit customers; and
(e) paid suppliers of inventory $225,000.
Prepare journal entries for each of the above transactions.
Answers
Answer:
The Marchetti Soup Company
Journal Entries:
a) Debit Inventory $245,000
Credit Accounts Payable $245,000
To record the purchase of inventory on account.
b) Debit Salaries Expense $60,000
Credit Cash $60,000
To record the payment of salaries for the month.
c) Debit Accounts Receivable $300,000
Credit Sales Revenue $300,000
To record the sale of inventory on account
Debit Cost of Goods Sold $160,000
Credit Inventory $160,000
To record the cost of goods sold.
d) Debit Cash $280,000
Credit Accounts Receivable $280,000
To record the receipt of cash from customers.
e) Debit Accounts Payable $225,000
Credit Cash $225,000
To record the payment to suppliers on account.
Explanation:
Journal entries enable the identification of accounts involved in each transaction. They are used to make the initial record into the accounting books before they are posted to the general ledger. They show the accounts to be debited and the ones to be credited.
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.
April 30 May 31
Inventories
Raw materials $44,000 $49,000
Work in process 9,300 19,800
Finished goods 67,000 34,600
Activities and information for May
Raw materials purchases (paid with cash) 185,000
Factory payroll (paid with cash) 250,000
Factory overhead
Indirect materials 10,000
Indirect labor 57,500
Other overhead costs 106,000
Sales (received in cash) 2,000,000
Pre-determined overhead rate based
on direct labor cost 55%
Compute the following amounts for the month of May using T-accounts.
Cost of direct materials used.
Cost of direct labor used.
Cost of goods manufactured.
Cost of goods sold.
Gross profit.
Overapplied or underapplied overhead.
Answers
Answer:
Cost of Direct Material Used $134,900.
Under applied Overhead $36,000
Explanation:
Cost of Direct Material Used
Opening Material $44,000
Add: Opening Work in Process $9,300
Add: Purchases $185,000
Less: Closing Material $49,000
Less: Closing Work in process $19,800
Less: Closing finished goods $34,600
= $134,900
Overhead Rate Application:
Budgeted Overhead 55% of direct labor cost [55% * 250,000] = $137,500
Actual Overhead is $173,500
Under applied Overhead is $36,000
Employability skills are "general skills that are necessary for success in the labor market at all employment levels and in all sectors."
True
False
Answers
Answer:
true
Explanation:
Bocelli Co. purchased $120,000 of 6%, 20-year Sanz County bonds on May 11, Year 1, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Bocelli Co. sold $30,000 of the Sanz County bonds at 99 plus $150 accrued interest less a $100 brokerage commission. Provide journal entries for the following:
a. The purchase of the bonds on May 11 plus 40 days of accrued interest; assume a 360-day year.
b. Semiannual interest on October 1.
c. Sale of the bonds on October 31.
d. Adjusting entry for accrued interest of $1,365 on December 31, Year 1.
Answers
Answer:
S/n General journal Debit Credit
a Investment in Sanz County bonds $120,000
Interest $800
(120,000*6%*40/360)
Cash $120,800
(The purchase of the bonds on May 11 plus 40 days of accrued
interest; assume a 360-day year.)
b. Cash $3,600
Interest receivable $800
Interest revenue $2,800
(Semiannual interest on October 1)
c. Cash(150* (99%*30,000) - $100) $29,750
Loss on sale of investments $400
Investment in Sanz County bonds $30,000
Interest revenue $150
(Sale of the bonds on October 31)
d. Interest receivables $1,365
Interest revenue $1,365
(Adjusting entry for accrued interest of $1,365 on
December 31, Year 1.)
Suppose that you have been given a summer job as an intern at Issac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan.
Required:
Classify each cost listed below as either a product cost or a period cost for the purpose of preparing financial statements for the bank.
1. Depreciation on salespersonsâ cars.
2. Rent on equipment used in the factory.
3. Lubricants used for machine maintenance.
4. Salaries of personnel who work in the finished goods warehouse.
5. Soap and paper towels used by factory workers at the end of a shift.
6. Factory supervisorsâ salaries.
7. Heat, water, and power consumed in the factory.
8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.)
9. Advertising costs.
10. Workersâ compensation insurance for factory employees.
11. Depreciation on chairs and tables in the factory lunchroom.
12. The wages of the receptionist in the administrative offices.
13. Cost of leasing the corporate jet used by the companyâs executives.
14. The cost of renting rooms at a Florida resort for the annual sales conference.
15. The cost of packaging the companyâs product.
Answers
Answer:
Product cost are cost incurred in the manufacturing of a product while period cost are cost incurred for a period irrespective of the manufacturing activity.
1. Depreciation on salespersons cars.
Classification: Period cost
2. Rent on equipment used in the factory.
Classification: Product cost
3. Lubricants used for machine maintenance.
Classification: Product cost
4. Salaries of personnel who work in the finished goods warehouse.
Classification: Period cost
5. Soap and paper towels used by factory workers at the end of a shift.
Classification: Product cost
6. Factory supervisors salaries.
Classification: Product cost
7. Heat, water, and power consumed in the factory.
Classification: Product cost
8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.)
Classification: Period cost
9. Advertising costs.
Classification: Period cost
10. Workers compensation insurance for factory employees.
Classification: Product cost
11. Depreciation on chairs and tables in the factory lunchroom.
Classification: Product cost
12. The wages of the receptionist in the administrative offices.
Classification: Period cost
13. Cost of leasing the corporate jet used by the company as executives.
Classification: Period cost
14. The cost of renting rooms at a Florida resort for the annual sales conference.
Classification: Period cost
15. The cost of packaging the company as product.
Classification: Product cost
how does peer pressure influence the spread of stis
Answers
people will use peer pressure to make others have sex/sexual interactions which leads to still being caused from unclean or unsafe interactions. hope this is what you meant!
Select the correct answer.
On May 30, 2015, XYZee Inc. paid a dividend of $10,000 to its shareholders. How will this transaction be recorded in the journal of the corporation?
A.
Cash Account (Debit) $10,000 Dividend Account (Credit) $10,000
B.
Dividend Account Debit) $10,000 Cash Account (Credit) $10,000
C.
Common Stock Account (Debit) $10,000 Cash Account Credit) $10,000
D.
Cash Account (Debit) $10,000 Common Stock Account (Credit) $10,0000
Answers
Answer:
answer is b
Explanation:
The development of cotton and woolen mills in the mill cities of England, and later New England, caused tremendous sociological change as potential workers (especially women) swarmed from rural areas to the growing industrial cities. Cite some examples of similar occurrences in more recent times in developing countries.
Answers
Explanation:
Agribusiness is the strongest sector of the Brazilian economy, for this reason there is a change in the flow of workers who migrated from the southeastern region of Brazil where the largest Brazilian metropolises such as Rio and São Paulo are concentrated to the central west region of Brazil, where there is the largest agricultural productivity in Brazil.
The high investment and industrialization in the region, the strengthening of Brazilian agribusiness and the lack of employment in other regions of the country were the causes that contributed to the greater demand for jobs in the central west region of the country.
Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent for three months, $1,800 May 5: Received and paid electricity bill, $100 May 9: Received cash for meals served to customers, $3,890 May 14: Paid cash for kitchen equipment, $3,950 May 23: Served a banquet on account, $2,180 May 31: Made the adjusting entry for rent (from May 1). May 31: Accrued salary expense, $490 May 31: Recorded depreciation for May on kitchen equipment, $400 If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May
Answers
Answer:
pure cash basis
revenue: $3,890
expenses:
rent $1,800utilities $100equipment $3,950net income = -$1,950
modified cash basis
revenue: $3,890
expenses:
rent $1,800utilities $100depreciation $400net income = $1,590
modified cash basis considers depreciation expense for assets that have a useful life of over 12 months. I guess that the equipment purchased has a useful life of more than one year.
Bergamo Bay's computer system generated the following trial balance on December 31, 2017. The company's manager knows something is wrong with the trial balance because it does not show any balance for Work in Process Inventory but does show a balance for the Factory Overhead account. In addition, the accrued factory payroll (Factory Wages Payable) has not been recorded.
After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date.
Materials requisition 21-3010: ............................$10,200 direct materials to Job 402
Materials requisition 21-3011: ............................$18,600 direct materials to Job 404
Materials requisition 21-3012: ........................................$5,600 indirect materials
Labor time ticket 6052: ........................................$36,000 direct labor to Job 402
Labor time ticket 6053: ........................................$23,800 direct labor to Job 404
Labor time ticket 6054: ....................................................$8,200 indirect labor
Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 200% of direct labor cost.
Required
1. Use information on the six source documents to prepare journal entries to assign the following costs.
a. Direct materials costs to Work in Process Inventory.
b. Direct labor costs to Work in Process Inventory.
c. Overhead costs to Work in Process Inventory.
d. Indirect materials costs to the Factory Overhead account.
e. Indirect labor costs to the Factory Overhead account.
2. Determine the revised balance of the Factory Overhead account after making the entries in part 1. Determine whether there is any under- or overapplied overhead for the year. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold, assuming the amount is not material.
3. Prepare a revised trial balance.
4. Prepare an income statement for 2017 and a balance sheet as of December 31, 2017.
Analysis Component
5. Assume that the $5,600 on materials requisition 21-3012 should have been direct materials charged to Job 404. Without providing specific calculations, describe the impact of this error on the income statement for 2017 and the balance sheet at December 31, 2017.
Answers
Question Completion:
Trial Balance as at December 31, 2017:
Debit Credit
Cash $170,000
Accounts receivable 75,000
Raw materials inventory 80,000
Work in process inventory 0
Finished goods inventory 15,000
Prepaid rent 3,000
Accounts payable 17,000
Notes payable 25,000
Common stock 50,000
Retained earnings 271,000
Sales 373,000
Cost of goods sold 218,000
Factory overhead 115,000
Operating expenses 60,000
Totals $736,000 $736,000
Answer:
Bergamo Bay
1. Journal Entries to assign the following costs:
a. Direct materials costs to Work in Process Inventory.
Debit Work in Process $10,200
Credit Raw materials $10,200
To record direct materials for Job 402.
Debit Work in Process $18,600
Credit Raw materials $18,600
To record direct materials for Job 404.
b. Direct labor costs to Work in Process Inventory.
Debit Work in Process $36,000
Credit Factory Payroll Payable $36,000
To record ticket 6052 direct labor to Job 402.
Debit Work in Process $23,800
Credit Factory Payroll Payable $23,800
To record ticket 6053 direct labor to Job 404.
c. Overhead costs to Work in Process Inventory.
Debit Work in Process $119,600
Credit Factory Overhead $119,600
To apply overhead costs, 200% of direct labor cost to WIP.
d. Indirect materials costs to the Factory Overhead account.
Debit Factory Overhead $5,600
Credit Raw materials $5,600
To record indirect materials to factory overhead.
e. Indirect labor costs to the Factory Overhead account.
Debit Factory Overhead $8,200
Credit Factory Payroll Payable $8,200
To record indirect labor costs to factory overhead.
2. Revised balance of the Factory Overhead account after above entries:
= $9,200
Underapplied overhead = $9,200
Adjusting Journal Entry to Cost of Goods Sold:
Debit Cost of Goods Sold $9,200
Credit Factory Overhead $9,200
To record underapplied overhead to cost of goods sold.
3. Revised Balance as at December 31, 2017:
Debit Credit
Cash $170,000
Accounts receivable 75,000
Raw materials inventory 45,600
Work in process inventory 0
Finished goods inventory 223,200
Prepaid rent 3,000
Accounts payable $17,000
Factory payroll payable 65,400
Notes payable 25,000
Common stock 50,000
Retained earnings 271,000
Sales 373,000
Cost of goods sold 227,200
Factory overhead 0
Operating expenses 60,000
Totals $804,000 $801,400
4. Income Statement for the year ended December 31, 2017
Sales 373,000
Cost of goods sold 227,200
Operating expenses 60,000 287,200
Net Income 85,800
Retained Earnings 271,000
Net income 85,800
Retained earnings 356,800
Balance Sheet as of December 31, 2017:
Cash $170,000
Accounts receivable 75,000
Raw materials inventory 45,600
Work in process inventory 0
Finished goods inventory 223,200
Prepaid rent 3,000 $516,800
Accounts payable $17,000
Factory payroll payable 65,400
Notes payable 25,000
Total liabilities 107,400
Common stock 50,000
Retained earnings 356,800 406,800
Total Liabilities and equity 514,200
5. Assume that the $5,600 on materials requisition 21-3012 should have been direct materials charged to Job 404. Without providing specific calculations, describe the impact of this error on the income statement for 2017 and the balance sheet at December 31, 2017
If the $5,600 were direct materials instead of indirect materials, it would not be expensed in the income statement, through Cost of Goods Sold. Instead, it would be carried forward as Finished Goods Inventory in the Balance Sheet.
Explanation:
a) Data and Calculations:
Trial Balance as at December 31, 2017:
Debit Credit
Cash $170,000
Accounts receivable 75,000
Raw materials inventory 80,000
Work in process inventory 0
Finished goods inventory 15,000
Prepaid rent 3,000
Accounts payable $17,000
Notes payable 25,000
Common stock 50,000
Retained earnings 271,000
Sales 373,000
Cost of goods sold 218,000
Factory overhead 115,000
Operating expenses 60,000
Totals $736,000 $736,000
Raw materials inventory
Account Titles Debit Credit
Balance 80,000
Work in Process (Job 402) 10,200
Work in Process (Job 404) 18,600
Factory overhead 5,600
Balance 45,600
Work in process inventory
Account Titles Debit Credit
Balance 0
Raw materials 10,200
Raw materials 18,600
Factory payroll 36,000
Factory payroll 23,800
Overhead 119,600
Finished Goods 208,200
Finished goods inventory
Account Titles Debit Credit
Balance 15,000
WIP 208,200
Balance 223,200
Factory Payroll Payable
Account Titles Debit Credit
WIP ticket 6052 36,000
WIP ticket 6053 23,800
Factory overhead 5,600
Balance 65,400
Cost of goods sold
Account Titles Debit Credit
Balance 218,000
Factory overhead 9,200
Balance 227,200
Factory overhead
Account Titles Debit Credit
Balance 115,000
Raw materials 5,600
Payroll Payable 8,200
Work in Process 119,600
Underapplied:Cost of goods 9,200
You have been working on some financial projections manually for two days now. It seems that each time you think you have them completed your boss shows up with a new assumption or another "what if" question. If you only had a copy of a spreadsheet software program for your personal computer, you could plug in the new assumptions and revise the estimates with ease. Then, a colleague offers to let you make a copy of some software that is copyrighted. What would you do?
Answers
Answer:
I would reject the copy and advise my colleague not to make a copy as this action violates the copyright law.
Explanation:
Copyright gives the originator the exclusive (or intellectual property) right to make copies of the software. To make a copy, one needs to obtain the permission of the originator. The law aims to protect the originator or creator of the intellectual property from illegal use and abuse.
Which of the following best illustrates Hofstede's definition of collectivism?
a. Managers at Honest Tea expect that all employees will have an interest and part in environmental sustainability
b. The founder of Honest Tea stresses the importance of equality and opportunity
c. An employee of Honest Tea prefers to work alone and puts him- or herself above others
d. The managers of Honest Tea prefer tradition over change
e. Employees in Honest Tea have high levels of anxiety about uncertainty
Answers
Answer:
a. Managers at Honest Tea expect that all employees will have an interest and part in environmental sustainability
Explanation:
Analyzing the information about Honest Tea, it is possible to understand that sustainability is an issue that has a lot of weight for the company, and all its processes are managed in an environmentally responsible manner. Therefore, it is correct to say that Honest Tea managers expect all employees to be interested and participate in environmental sustainability, as this is a value that identifies and positions the company in the market, and it is essential that this value is shared by all employees.
Environmental management is a form of management that provides significant advantages to an organization, as it standardizes procedures and policies to reduce environmental impacts, the company operates with a focus on continuous improvement that reduces costs, waste, makes work most satisfactory and sustainability as a shared value.