Answer: must be in writing because it benefits McGregor.
Explanation:
From the question, we are told that Country Farm Supply applies for a business loan from Farmers Credit Co-Op. We are also aware that Country Farm Supply owes McGregor money under another business deal, and that McGregor wants to help Country Farm Supply get the loan so that it will be able to stay in business to pay him back, McGregor promises Farmer's Credit Co-Op that he will repay the loan if Country Farm Supply does not.
Therefore to be enforceable, McGregor's promise must be in writing because it benefits him. The the deal is between Farmer's Credit Co-Op and McGregor, hence, the promise must be in writing because this will make it valid and also applicable for future purpose in case McGregor isn't able to repay the loan he took .
5.Greek Peak is a ski resort in upstate New York. The company sells lift tickets, ski lessons, and ski equipment. It operates several restaurants and rents townhouses to vacationing skiers. The following hypothetical December 2013 transactions are typical of those that occur at the resort.a)Borrowed $500,000 from the bank on December 1, signing a note payable, due in six months.b)Purchased a new snowplow for $20,000 cash on December 31.c)Purchased ski supplies for $10,000 on account.d)Incurred $22,000 in routine maintenance expenses for the chairlifts; paid cash.e)Received $72,000 for season passes (beginning in the new year).f)Daily lift passes were sold this month for a total of $76,000 cash.g)Received a $320 deposit on a townhouse to be rented for five days in January
Answer and Explanation:
The journal entries are shown below:
a. Cash Dr $500,000
To Short term Note payable $500,000
(Being the borrowed amount is recorded)
Cash is assets and short term note payable is liabilities
b. Equipment Dr $20,000
To cash $20,000
(Being the equipment purchased for cash is recorded)
Equipment and cash both are assets
c. Supplies Dr $10,000
To Account payable $10,000
(Being the purchase of supplies on the account is recorded)
Supplies are assets and account payable is liabilities
d. Repairs and maintenance expense Dr $22,000
To Cash $22,000
(Being the routine maintenance expenses paid for cash is recorded)
Repair and maintenance expense is an expense and cash is assets
e. Cash Dr $72,000
To Unearned revenue $72,000
(Being cash received is recorded)
Cash is assets and unearned revenue is liabilities
f. Cash Dr $76,000
To Service revenue $76,000
(Being cash received is recorded)
cash is assets and service revenue is revenue
g. Cash Dr $320
To Unearned revenue $320
(Being cash received is recorded)
Cash is assets and unearned revenue is liabilities
You are considering buying a piece of industrial equipment to automate a part of your production process. This automation will save labor costs by $35,000 per year over 8 years. The equipment costs $200,000. Should you purchase the equipment if your interest rate is 10%?
Answer:
No, you should not purchase the equipment if your interest rate is 10% because you would spent more money on the equipment than what you would save in labor costs.
Explanation:
First, you have to calculate the total amount that you would save in 8 years which is the result of multiplying the amount you save per year for the number of years:
$35,000*8=$280,000
Second, you have to calculate the total amount you would have to pay to purchase the equipment if your interest rate is 10% using the following formula:
A= P(1+rt)
A= accrued amount
P= principal amount: $200,000
r= rate: 0.1
t= time period: 8
A= 200,000*(1+(0.1*8))
A= 200,000*1.8
A= 360.000
According to this, in 8 years you would save $280,000 in labor costs but you would have to pay $360,000 for the equipment which means that you will pay more for the machine than what you would save in costs. Because of this, you should not purchase the equipment if your interest rate is 10%.
2. Jill would like to plan for her son’s college education. She would like for her son, who was born today, to attend college for 5 years, beginning at age 18. Tuition is currently $12,000 per year and tuition inflation is 6%. Jill can earn an after-tax rate of return of 8%. How much must Jill save at the end of each year, if she wants to make the last payment at the beginning of her son’s first year of college?
Answer:
$4,531.50
Explanation:
first we must determine the cost of tuition in 18 years (2038):
$12,000 x (1 + 6%)¹⁸ = $34,252 per year
to calculate the total value of college tuition (5 years) in 2038 we can use the annuity due factor (6% and 5 years) 4.4651:
total college tuition = $34,252 x 4.4651 = $152,939
this means that Jill needs to have $152,939 for the moment her son starts college:
we have to calculate the payment:
to calculate the future value of an annuity (since she starts to save at end of the year, it is an ordinary annuity, not annuity due) we use the following formula:
future value = payment x ordinary annuity factor (8% and 17 years)
we know future value ($152,939) and the annuity factor = 33.7502
payment = future value / annuity factor
payment = $152,939 / 33.7502 = $4,531.50
At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts:
Account Balance
Cash $29,400
Accounts receivable 21,600
Accounts payable 12,000
Common stock 28,300
Retained earnings 10,700
The following events apply to Oak Consulting for Year 2:
Provided $68,400 of services on account.
Incurred $3,100 of operating expenses on account.
Collected $47,400 of accounts receivable.
Paid $31,100 cash for salaries expense.
Paid $13,590 cash as a partial payment on accounts payable.
Paid a $8,500 cash dividend to the stockholders.
Required:
a. What is the amount of net income for the year?
b. What is the amount of change in retained earnings for the year?
Answer:
a. What is the amount of net income for the year?
$34,190b. What is the amount of change in retained earnings for the year?
increased by $25,690Explanation:
net income:
total service revenue $68,400salaries expense -$31,100operating expenses -$3,100net income = $34,190change in retained earnings = net income - dividends = $34,190 - $8,500 = $25,690
Revenue and expenses are recorded on the periods that they occur, regardless of when they are collected or paid respectively.
Explain the nature of mergers and acquisitions and the reasons why they may be used as a form of strategy development.
Answer:
Mergers and acquisitions consist of either joining two or more firms, or having one firm acquire another firm.
The rationale behind a merger or acquisiton is always strategic: a merger or an acquisition is carried out with the goal of improving the economic position and performance of the firms involved.
Some business strategies that can be implemented by a merger or acquisition are:
Horizontal integration: companies that sell similar products merge in order to join forces and expand their market reach.Vertical integration: companies in the same industry, but that sell different products (for example, one company sells cars and the other sells bikes) merge in order to expand their market share.Conglomerate formation: companies in different industries join in order to expand their markets even more.
Your uncle just won the weekly lottery, receiving $375,000, which he invested at a 7.5% annual rate. He now has decided to retire, and he wants to withdraw $35,000 at the end of each year, starting at the end of this year. What is the maximum number of whole payments that can be withdrawn before the account is exhausted, i.e., before the account balance would become negative
Answer:
22
Explanation:
Calculation for the maximum number of whole payments that can be withdrawn before the account is exhausted
Using financial calculator
PV -375000
PMT 35000
I 7.50%
FV 0
Compute N
= 22.50
Approximately 22
Hence,maximum number of whole payment will be 22
Present value is the current value of a future sum of money or stream of cash flows. The discount rate determines the present value of future cash flows.
Answer:-19.03158647
Present value (PV): $375,000 Rate: 7.5% per annual Payment (PMT) : $35,000 per year
We can use excel to calculate the maximum number of whole payments that can be withdrawn before the account is exhausted.
To know more about annual rate, refer to the link:
https://brainly.com/question/6026546
If you want to be able to withdraw $100,000 per year forever beginning 20 years from now, how much will you have to have in your retirement account (that earns 8% per year interest) in year 0 (now)
Answer:
The answer is $289,640.08
Explanation:
Solution
Given that:
You want to make a withdrawal of the amount = $100,000 per year
Number of years = 20
Interest per year = 8%
Now,
Let the current balance required is X
The amount in bank due to the interest after 19 years =X(1+0.08)^19
This should be equal to the 100,000 drawn forever.
Thus,
X(1.08)20-100,000=A(1.08)19 [i.e after drawing $100,000 a year later, this same amount should remain]
Hence,
X = $289,640.08
Therefore the amount you will have to have in your retirement account in year 0 is $289,640.08
Neeta Landscaping Company provides lawn care services to a customer and immediately receives $45. Which of the following describes how the company will account for this transaction? Debit Other Operating Expense for $45. Credit Cash for $45. Credit Service Revenue for $45. Retained earnings decreases by $45.
Answer:
The correct option is Credit Service Revenue for $45
Explanation:
The receipt of $45 for the services rendered would be a debit to cash account and a credit to sales service revenue because an increase in cash is naturally a debit entry in cash account while increase in revenue is a credit entry.
Above all,debit of other operating expense is wrong because no cost was incurred instead a revenue was recorded.
Also,crediting cash was also wrong because the $45 was an inflow not an outflow of cash that require a credit entry in cash account.
Two investment advisers are comparing performance. One averaged a 19% return and the other a 16% return. However, the beta for the first adviser was 1.5, while that of the second was 1.
Required:
a. If the T-bill rate was 6% and the market return during the period was 14%, which adviser would be the superior stock selector.
b. Can you tell which adviser was a better selector of individual stocks (aside from the issue of general movements in the market)?
c. What if the T-bill rate were 3% and the market return 15%?
Answer: Adviser B is the superior stock selector.
Explanation:
For the comparision between the two investment advisers, the Jenson's Alpha will be utilized.
Jenson's Alpha:
= Portfolio Actual Return - CAPM(Benchmark Portfolio Return)
T Bill Rate(Risk free rate) = 6%
Market return(E(Em) = 14%
Beta of Investment Adviser A = 1.5
Beta of Investment Adviser B = 1
For Adviser A:
CAPM = Risk free return + Beta ( E(Rm) - Risk free return)
CAPM(Benchmark Portfolio) = 6 + 1.5 (14-6)
= 6 + 12
= 18%
Actual Return = 19%
Jenson's Alpha = 19% - 18% = 1%
For Adviser B:
CAPM = Risk free return + Beta ( E(Rm) - Risk free return)
CAPM(Benchmark Portfolio) = 6 + 1(14-6) = 6 + 1(8) = 14%
Actual Return = 16%
Jenson's Alpha = 16% - 14% = 2%
Adviser B is a better selector because he has a larger alpha of 2% compared to Adviser A who has 1%.
T Bill Rate(Risk free rate) = 3%
Market return(E(Rm) = 15%
Beta of Investment Adviser A = 1.5
Beta of Investment Adviser B = 1
For Adviser A:
CAPM = Risk free return + Beta ( E(Rm) - Risk free return)
CAPM(Benchmark Portfolio) = 3 + 1.5 (15-3)
= 3 + 18
= 21%
Actual Return = 19%
Jenson's Alpha = 19% - 21% = -2%
For Adviser B:
CAPM = Risk free return + Beta ( E(Rm) - Risk free return)
CAPM(Benchmark Portfolio) = 3 + 1(15-3) = 3 + 1(12) = 15%
Actual Return = 16%
Jenson's Alpha = 16% - 15% = 1%
Given the changes, Adviser B is still the better selector because he has a larger alpha of 1% compared to Adviser A who has -2%.
Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,053,000 shares of $10 par common stock. At no time has Newton issued any potentially dilutive securities. Listed below is a summary of Newton’s common stock activities.
1. Number of common shares issued and outstanding at December 31, 2012
2,413,000
2. Shares issued as a result of a 10% stock dividend on September 30, 2013
241,300
3. Shares issued for cash on March 31, 2014
2,136,000
Number of common shares issued and outstanding at December 31, 2014
4,790,300
4. A 2-for-1 stock split of Newton’s common stock took place on March 31, 2015
Compute the weighted-average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement
Compute the weighted-average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement
Compute the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement.
Compute the weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement.
Answer:
1. The weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 2,654,300 shares.
2. The weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2014 is 4,256,300 shares
3. The weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 8,512,600 shares
4. The weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 is 9,580,600 shares.
Explanation:
1. To calculate the weighted-average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement we would have to ake the following calculation:
Jan1.2013-Sep30.2013(2,413,000*9/12)=1,809,750
retroactive adjustment for stock dividend ×1.10
Jan1.2013-Sep30.2013 adjusted= 1,990,725
Oct.2013-Dec31.2013(2,654,300*3/12)= 663,575
Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 2,654,300 shares.
2. To calculate the weighted-average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement we would have to make the following calculation:
Jan1.2014 -Mar31.2014(2654300*3/12) 663575
April1.2014 -Dec31.2014 (4790300*9/12) 3592725
Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2014 is 4,256,300 shares
3. To calculate the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement we would have to make the following calculation:
2014 weighted average no of shares 4256300
Retroactive adjustment for stock split ×2 =8512600
Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 8,512,600 shares
4. To calculate the weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement we would have to make the following calculation:
Jan1.2015-Mar31.2015 (4790300*3/12)=1197575
Retroactive adjustment for stock split ×2
Jan1-Mar31.2015 adjusted. 2395150
Mar1.-Dec31.2015 (9580600*9/12)= 7185450
Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 is 9,580,600 shares.
Who is following the law when it comes to protecting investors’ funds?
Answer:
A mutual fund advisor who informs investors about risks is following the law when it comes to protecting investors’ funds
Explanation:
Answer:B (a mutual fund advisor who informs investors about risks)
Explanation:
A project consists of three activities: A, B, and C. Activities A and B can begin at time 0 (start of the project), but activity C can only start after B is completed. The project ends when all activities are completed. The durations of the activities were simulated 10 times and the following values were obtained: Run A Duration B Duration C Duration 1 51 48 17 2 60 48 19 3 30 39 19 4 31 48 22 5 30 31 14 6 41 16 17 7 44 12 6 8 44 12 10 9 45 43 9 10 60 41 10 Based on the simulated numbers given above, what is the average completion time of the whole project?
Answer:
Explanation:
Run A Duration B Duration C Duration 1 51 48 17 2 60 48 19 3 30 39 19 4 31 48 22 5 30 31 14 6 41 16 17 7 44 12 6 8 44 12 10 9 45 43 9 10 60 41 10 Based on the simulated numbers given above, what is the average completion time of the whole project?
Since B is the predecessor of C.
Project completion time for each run will be calculated as Maximum (Duration of A, Duration of B +Duration of C).
Represent
Run = R
Duration of A = DA
Duration of B = DB
Duration of C = DC
Project Completion time = PT
R DA DB DC PT
1 51 48 17 48 + 17 = 65
2 60 48 19 48 + 19 = 67
4 31 48 22 48 + 22 = 70
5 30 31 14 31 + 14 = 45
6 41 16 17 41
7 44 12 6 44
8 44 12 10 44
9 45 43 9 43 + 9 = 52
10 60 41 10 60
Total = 546
Total Project completion time in 10 Stimulations = 546
Average project Completion time = 546/10 = 54.6
Therefore, average Project completion time is between 53 and 56 days.
Exercise 14-5 (Algo) Bonds; issuance; effective interest; financial statement effects [LO14-2] Myriad Solutions, Inc. issued 12% bonds, dated January 1, with a face amount of $390 million on January 1, 2021, for $348,683,634. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity the market yield is 14%. Interest is paid semiannually on June 30 and December 31. Required: Calculate the amounts related to the bonds that Myriad would report in its financial statements. (Round your answers to the nearest whole dollar.)
Answer:
1a.Carrying value $354,266,807
Interest expense $52,383,173
Cash Interest $46,800,000
1b.Balance Sheet:
Net Liability $354,266,807
Income Statement:
Interest expense $52,383,173
Statement of cash flows:
Operating -$46,800,000
Investing 0
Financing $348,683,634
Explanation:
1a.Calculation of the amounts related to the bonds that Myriad would report in its financial statements
Bond Amortization Schedule
Date Cash interest Interest Expense Discount amortization Carrying value
01-Jan-21 $348,683,634
30-Jun-21
$23,400,000 $24,407,854 $1,007,854 $349,691,488
31-Dec-21 $23,400,000 $27,975,319 $4,575,319 $354,266,807
Total amount of Cash Interest
$46,800,000
Total amount of Interest expense $52,383,173
1b. Indication of the amounts to be reported on the financial statements for the year ending December 31, 2021
Myriad Financial statements
Balance Sheet:
Net Liability $354,266,807
Income Statement:
Interest expense $52,383,173
Statement of cash flows:
Operating -$46,800,000
Investing 0
Financing $348,683,634
($354,266,807+$46,800,000)
=$401,066,807
$401,066,807-$52,383,173
=$348,683,634
"Lizard National Bank purchases a three-year interest rate cap for a fee of 2 percent of notional principal valued at $50 million, with an interest rate ceiling of 11 percent and LIBOR as the index representing the market interest rate. LIBOR is 9 percent, 12 percent, and 13 percent at the end of each of the next three years, respectively. The total payments received (or paid) by Lizard, including the initial fee, are $____."
Answer: $500,000
Explanation:
An Interest Rate Cap is a Derivative Financial Instrument that works by paying the buyer for every year that the interest rate ceiling is exceeded.
Using the scenario above this is how it's works,
There is an Interest Rate Ceiling of 11%.
Any year that index which is this case is the London Interbank Official Rate (LIBOR) exceeds the 11%, the seller will pay the buyer the difference between the LIBOR and the Interest Rate Ceiling.
The Notional Principal is the amount on which the interest is based.
That means that in Year 1 with a LIBOR of 9 percent, the seller does not pay.
Second year LIBOR is 12 percent, the seller will pay 1% (12% - 11%)
Third year LIBOR is 13 percent, the seller will pay 2% (13% - 11%)
Lizard National Bank had to pay 2% of the notional Principal as a fee.
The amount that Lizard Receives from the seller is therefore,
= Total Received - Fees
= (1% + 2% - 2%) * 50,000,000
= 1% * 50,000,000
= $500,000
The total payments received by Lizard, including the initial fee, are $500,000.
The Biltmore Trust is a simple trust. Crawford is its sole beneficiary. In thecurrent year, the trust earns $3,200 in taxable interest and $8,000 in tax-exempt interest. In addition, the trust recognizes a $2,500 long-term capital gain.The trustee assesses a fee of $1,800 for the year.
a. Compute trust accounting income, where the trust agreement allocates fees andcapital gains to corpus.
b. Same as (a), except that fees are allocated to income.
Answer:
A. Trust agreement allocates fees and capital gains to corpus.
Particulars Amount
Taxable interest $3,200
Tax-exempt interest $8,000
Trust accounting income $11,200
B. When fees are allocated to income.
Particulars Amount
Taxable interest $3,200
Tax-exempt interest $8,000
Less: Fees ($-1,800)
Trust accounting income $9,400
Distribution Corporation collects 40% of a month's sales in the month of sale, 55% in the month following sale, and 5% in the second month following sale. Budgeted sales for the upcoming four months are:April budgeted sales $100,000May budgeted sales $150,000June budgeted sales $230,000July budgeted sales $180,000The amount of cash that will be collected in July is budgeted to beA) $72,000.B) $179, 500.C) $206,000.D) $195, 500.
Answer:
C) $206,000.
Explanation:
The budgeted amount of cash that will be collected in July can be obtained adding the amount due to be collected in July. This can be estimated as follows:
Budgeted cash from May budgeted sales = $150,000 * 5% = $7,500
Budgeted cash from June budgeted sales = $230,000 * 55% = $126,500
Budgeted cash from July budgeted sales = $180,000 * 40% = $72,000
By adding all the above together, we have:
July budgeted cash collection = $7,500 + $126,500 + $72,000 = $206,000
Therefore, the amount of cash that will be collected in July is budgeted to be $206,000.
TerraLoc competes in the market for global positioning devices and services. The company manufactures its own GPS units, which are smaller than those of any other competitor and include a proprietary battery that lasts 200% longer than any other competitor's battery and that TerraLoc manufacturers on-site. TerraLoc also has developed proprietary software that is much faster and more precise than that of any competitor. When developing the proprietary battery, TerraLoc decided to manufacturer the battery in-house to reduce the possibility that the company it outsourced the battery manufacturing to might reverse engineer the battery and sell a similar product to competitors. This possibility was especially troubling given that the company expected a significant increase in demand due to the improved battery life. Additionally, TerraLoc sells its products and services through its own direct sales force to ensure that its representatives highlight the longer battery life of TerraLoc's units.
TerraLoc's decsion to manufacture the battery in-house is most consistent with which theory(s) of vertical integration?
a. Firm capability-based explanations
b. Alliance-based explanation
c. Opportunism-based explanations
d. Flexibility-based explanations
Answer:
The correct answer is the option A: firm capability-based explanations.
Explanation:
To begin with, given the fact that the company decided to manufactured the battery in-house in order to reduce the possibility of helping other competitors when using an outsourced manufacturer then the company is using its firm capability in order to achieve the goal of manufacturing that component of the final product. Therefore that if the company would not have the resources and capability of doing it then it would necessary outsourced the manufactured of it.
Present and future value
PV of $1 FV of $1 PVA of $1 FVAD of $1 FVA of $1
1 0.91743 1.09000 0.91743 1.0900 1.0000
2 0.84168 1.18810 1.75911 2.2781 2.0900
3 0.77218 1.29503 2.53129 3.5731 3.2781
4 0.70843 1.41158 3.23972 4.9847 4.5731
5 0.64993 1.53862 3.88965 6.5233 5.9847
6 0.59627 1.67710 4.48592 8.2004 7.5233
How much must be invested now at 9% interest to accumulate to $24,000 in four years?
a) $1,753.b) $1,965.c) $2,652.d) $2,317.
Answer:
$ 17,002.21 (none of the options is correct)
Explanation:
The formula for determining the present value ,which is the actual amount invested to give a future value is given below:
PV=FV*(1+r)^-n
The PV is the present value which is unknown
FV is the future worth of the investment which is $24,000
r is the rate of return which is 9% per year
n is the duration of investment which is 4 years
PV=$24,000*(1+9%)^-4
PV=$24,000*(1.09)^-4
PV=$24,000*0.708425211 =$ 17,002.21
The income elasticity for most staple foods, such as wheat, is known to be between zero and one. As incomes rise over time, what will happen to the demand for wheat? What will happen to the quantity of wheat purchased by consumers? What will happen to the percentage of their budgets that consumers spend on wheat? All other things equal, are farmers likely to be relatively better off or relatively worse off in periods of rising incomes?
Answer and Explanation:
a. As it is given that the income elasticity of wheat is between zero and one that reflects inelastic and less than unity condition.
So in this, when the income is increased the demand for wheat is also increased but it would be less proportionally
And, the percentage increase in demand for wheat is lower than the increase in income
b. The quantity of wheat purchased is increased as there is an increase in income which increased the demand for all goods
c. The percentage of their budget will go decline as the income elasticity is between zero and one that results into an increase in income and they can switch more expenditure for other goods
d. The farmer condition does not affect overall as if the income increased the demand for other goods is also increased but it is more than the wheat
Entry for Issuing Materials Materials issued for the current month are as follows: Requisition No. Material Job No. Amount 103 Plastic 400 $ 2,800 104 Steel 402 24,000 105 Glue Indirect 1,620 106 Rubber 403 3,200 107 Titanium 404 31,600 Journalize the entry to record the issuance of materials. For a compound transaction, if an amount box does not require an entry, leave it blank.
Answer:
Details below
Explanation:
For issuance of an entry a single transaction is recorded that is work in process account is debited and materials inventory account is credited. In subsidiary ledgers job numbers are debited. For indirect Materials factory overhead is debited.
The given data is as follows.
Requisition No. Material Job No. Amount
103 Plastic 400 $ 2,800
104 Steel 402 24,000
105 Glue Indirect 1,620
106 Rubber 403 3,200
107 Titanium 404 31,600
The entry for materials requisitioned will be
A compound entry can be passed. In this the subsidiary ledger is not included.
Sr. No Particulars Debit Credit
Work In Process 61600
Factory Overhead 1620
Materials Inventory 63200
The one with a subsidiary ledger would look like this.
Sr. No Particulars Debit Credit
(Subsidiary)
1 Work In Process 61600
( Job No 400) 2800
( Job No 402) 24000
( Job No 403) 3200
( Job No 404) 31600
Factory Overhead 1620
Materials Inventory 63200
This is combined entry but separate entries can be passed as well .
Sr. No Particulars Debit Credit
Work In Process 61600
Materials Inventory 61600
Sr. No Particulars Debit Credit
Factory Overhead 1620
Materials Inventory 1620
Sr. No Particulars Debit Credit
(Subsidiary ledger)
( Job No 400) 2800
( Job No 402) 24000
( Job No 403) 3200
( Job No 404) 31600
Materials Inventory Plastic 2800
Materials Inventory Steel 24000
Materials Inventory Titanium 3200
Materials Inventory Rubber 31600
In each of the entries above materials inventory is credited.
You are the supply chain manager for a small company that makes customized road bicycles. You
CEO asks you to explain the steps in the process for manufacturing and delivering the product to
consumers, in your supply chain. Use the module content and Better Business to explain the steps i
the process, in four to five sentences minimum.
HTML Editora
Answer:
The points are as follows:-
1. Their preparations must be successful, and their implementation from the highest to the lowest managerial level is necessary.
2.We need to handle the whole project schedule acquisition process.
3.They ought to manage the sales contract for the finished product and the materials and machinery.
4.Prepare its manual data or auto-metrically produced purchase agreement from the line as well as from the planning process.
Bobby Jones, an accountant for ABC Corporation, has been suspected of committing fraud. Some information already gathered about the fraud points to Bobby Jones as the most likely perpetrator. In his scheme, Bobby supposedly stole more than $5 million over the past three years. Due to the magnitude of the fraud and to set an example in the company, ABC decides to prosecute Bobby both civilly and criminally.
Describe What will happen to bobby jones during the civil litigation,including the stages of civil litigation that he and ABC will go through.
Answer:
In the civil litigation process what will happen to Bobby Jones are in four stages which are Inquiry and Pleading, Discovery, Motion Practice and Negotiation and Trial and Appeal.
Explanation:
Four steps are involved in the process of civil litigation stated as follows:
In this staged a complaint is first issued against Bobby Jones by the ABC Corporation which elaborates on the offence and also points out the financial compensation for the damaged or problems caused.
Inquiry and Pleading: The first step or phase is the inquiry and pleading.
In this staged a complaint is first issued against Bobby Jones by the ABC Corporation which elaborates on the offence and also points out the financial compensation for the damaged or problems caused.
(2) Discovery: This is where the various parties gives an effort to get more information as possible
(3) Motion Practice and Negotiation: This occurs prior to trial when bobby files motion to challenge the complaint issued against him.
(4)Trial and Appeal: The last stage is the trial and appeal. this occurs when the previous steps has failed.
In this step the trial is held, both Bobby and ABC Corporations seeks judgement from the judge and the judge issues the jury to put in the final verdict. If both parties are not satisfied with judgement received, they can appeal to a higher court to review the verdict or decision.
If the price of a six-pack of Pepsi falls from $4 to$3 and the quantity purchased increases 80 percent, then demand is
Answer:
low
Explanation:
If the price decreases and the quantity increases, the demand is low.
If the price increases and the quantity decreases, the demand is high.
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A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $60; Second purchase $67; Third purchase $64. If the company sold two units for a total of $209 and used FIFO costing, the gross profit for the period would be
Answer:
$82
Explanation:
As company Uses FIFO system, it will sell first two products
The cost price =($60 + $67 = 127).
So Gross profit = Selling Price-Cost Price
Gross Profit = 209-127
= $82
The gross profit for the period is $82
A company's production department was experiencing a high defect rate on the assembly line, which was slowing down production and causing wastage of valuable direct materials. The production manager decided to purchase a higher grade of materials that would be more reliable, but he was worried that the cost of the new materials might negatively affect operating income. This would produce a(n) ________.A. unfavorable direct materials cost variance
B. unfavorable direct materials efficiency variance
C. favorable direct labor cost variance
D. favorable direct labor efficiency variance
Answer:
D
Explanation:
Because the higher the quality of materials the more efficient the product will be
Highland Company's standard cost is $250,000. The allowable deviation is ±10%. Its actual costs for six months are as follows January $235,000 February 220,000 March 245,000 April 265,000 May 270,000 June 280,000 The actual cost which is lower than the lower control limit is _____.
Answer:
The month that is lower than the lower control limit is February ($220,000).
Explanation:
Giving the following information:
Highland Company's standard cost is $250,000.
The allowable deviation is ±10%.
Actual Fixed costs:
January $235,000
February 220,000
March 245,000
April 265,000
May 270,000
June 280,000
First, we need to calculate the lower control limit:
Lower control limit= 250,000*0.9= $225,000
The month that is lower than the lower control limit is February ($220,000).
During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 44 $ 36 $ 1,584 Apr. 7 Purchase 124 38 4,712 Jul. 16 Purchase 194 41 7,954 Oct. 6 Purchase 104 42 4,368 466 $ 18,618 For the entire year, the company sells 413 units of inventory for $54 each. Required: 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
Answer:
TRC Corporation
Calculations, using FIFO:
a) Ending Inventory:
Ending Inventory in units = Units available for sale minus Units sold
Ending Inventory in units = 466 - 413 = 53 units
Ending Inventory value = Units x FIFO cost of last purchase = 53 x $42 = $2,226
b) Cost of goods sold:
Cost of goods sold = Beginning Inventory + Purchases - Ending Inventory
Cost of goods sold = $1,584 + 17,034 - 2,226 = $16,392
c) Sales Revenue:
Sales Revenue = Units sold x Selling price = 414 x $54 = $22,302
d) Gross Profit:
Gross Profit = Sales Revenue minus Cost of goods sold
Gross Profit = $22,302 - $16,392 = $5,910
Explanation:
a) Summary of Inventory Transactions:
Date Transaction Number of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 44 $ 36 $ 1,584
Apr. 7 Purchase 124 38 4,712
Jul. 16 Purchase 194 41 7,954
Oct. 6 Purchase 104 42 4,368
b) Cost of goods available 466 $ 18,618
c) Sales 413 $ 54 $ 22,302
d) Dec. 31 Ending Inventory 53 42 $ 2,226
e) The FIFO (First-in, First-out) inventory method assumes that goods sold are from earlier inventory units, unlike Last-in, First-out (LIFO). This means that beginning and earlier purchased inventory units are sold first before the latest purchases. Using the FIFO method, the ending inventory is valued at the cost of the most recent inventory purchases.
On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts:
Cash Accounts Payable
Accounts Receivable Shawn Dahl, Capital
Office Equipment Revenue
Canoe and Kayak Equipment Expenses
Following are the transactions:
1. Shawn Dahl invested $44,400 in cash to open the business
2. Paid $12,100 in cash for the purchase of kayak and canoe equipment
3. Paid $1,850 in cash for rent expense
4. Purchased additional kayak and canoe equipment for $4,600 on credit
5. Received $4,700 in cash for kayak rentals
6. Rented canoes and kayaks for $2,000 on account
7. Purchased office equipment for $205 in cash
8. Received $1,200 in cash from credit clients
9. Shawn Dahl withdrew $2,300 in cash for personal expenses
Based on the information shown above, what is the balance of Accounts Receivable for Whitewater Rentals at the end of September?
Answer:
what is the balance of Accounts Receivable for Whitewater Rentals at the end of September?
$800
Explanation:
We can seen in the transactions in the question that Whitewater Rentals first obtained $2,000 from rented canoes on account. These $2,000 represent the initial balance of accounts receivable.
Later, credit clients paid $1,200 cash. This reduced accounts receivable by the same amount.
Therefore, the balance of Accounts Receivable for Whitewater Rentals at the end of September is = $2,000 - $1,200 = 800
Which of the following depicts the proper sequence of steps in the accounting cycle?
a. Journalize the transactions, analyze business transactions, prepare a trial balance
b. Prepare a trial balance, prepare financial statements, prepare adjusting entries
c. Prepare a trial balance, post to ledger accounts, post adjusting entries
d. Prepare a trial balance, prepare adjusting entries, prepare financial statements
Answer:
Option D. Prepare a trial balance, prepare adjusting entries, prepare financial statements
Explanation:
The accounting cycle sequence is given as under:
Analyzing the businessJournalize the TransactionsPost to Ledger AccountsPrepare a Trial BalancePosting adjusting entries and Preparing an adjusted trial balancePreparing the financial statementsJournalize and post closing entriesPrepare a post closing trial balance and financial statementSo we can see that the three steps highlighted above are the sequence shown in the option D. Hence option D is correct.
Suppose the market for pizzas is unregulated. That is, pizza prices are free to adjust based on the forces of supply and demand.
If a shortage exists in the pizza market, then the current price must be.............than the equilibrium price. For the market to reach equilibrium, you would expect................
Answer:
Lower
Buyers would offer higher prices
Explanation:
When a shortage occurs when Demand exceeds supply. Excess demand occurs when price is below equilibrium price and as a result suppliers reduce quantity supplied.
As a result of the shortage, buyers would offer higher prices. As a result of the higher prices, the quantity supplied would increase and equilibrium would be restored.
I hope my answer helps you