Answer:
Transactions included in the calculation of U.S. GDP:
Transaction C I G X M
1. X
2. M
3. I
4. C
5. G
Explanation:
a) GDP constituents:
Consumption (C) = private consumption expenditures by US households and non-profit-making organizations.
Investment (I) = business expenditures by profit-making organizations for purchase of capital goods or input for further processing.
Government purchases (G) = government spendings for public goods.
Exports (X) = Goods and services moved from the US to other countries.
Imports (M) = Goods and services from other countries into the US.
PC Company uses the weighted-average method in its process costing system, in which all materials are added at the beginning of the process, and conversion costs are incurred uniformly. The Painting Department started the month with 800 units in a process that was 40% complete, transferred 2,500 units to Finished Goods Inventory, and had 500 units in process at the end of the period, 70% complete. The amount of direct materials cost in beginning inventory was $16,320, and the amount of direct materials cost added this period totaled $121,440.
What is the direct material cost per equivalent unit?
a. $45.92 per equivalent unit
b. $48 per equivalent unit
c. $48.34 per equivalent unit
d. $55.20 per equivalent unit
Answer:
a. $45.92 per equivalent unit
Explanation:
Calculation for direct material cost per equivalent unit
First step is to calculate the Total units
Total units = 2,500 + 500 - 800
Total units = 2,200
Now let calculate direct material cost per equivalent unit
Direct material cost per equivalent unit=($16,320+$121,440)/(2,200+$800)
Direct material cost per equivalent unit=$137,760/3,000
Direct material cost per equivalent unit=$45.92 per equivalent unit
Therefore the Direct material cost per equivalent unit will be $45.92 per equivalent unit
Ranger Glass Company manufactures glass for French doors. At the start of May, 2,000 units were in-process. During May, 11,000 units were completed and 3,000 units were in process at the end of May. These in-process units were 90% complete with respect to material and 50% complete with respect to conversion costs. Other information is as follows:Work in process, May 1:Direct material $36,000Conversion costs $45,000Costs incurred during May:Direct materia $186,000Conversion costs $255,000How much is the cost per equivalent unit for direct materials? (Points : 4)$24.00$16.20$15.86$13.58
Answer:
$16.20
Explanation:
Calculation for How much is the cost per equivalent unit for direct materials
Cost per equivalent unit for direct materials=($36,000+$186,000)/[11,000+(3,000*90%)]
Cost per equivalent unit for direct materials=$222,000/(11,000+2,700)
Cost per equivalent unit for direct materials=$222,000/13,700
Cost per equivalent unit for direct materials=$16.20
Therefore the the cost per equivalent unit for direct materials will be $16.20
g A physical inventory taken on December 31, 2020, resulted in an ending inventory of $1,150,000. Historically, Jensen's gross margin on sales has remained constant at 25%. Jensen suspects that an unusual amount of inventory may have been damaged and disposed of without appropriate tracking. At December 31, 2020, what is the estimated cost of missing inventory
Answer: $350,000
Explanation:
The Cost of Goods sold according to the Gross margin on sales is:
COGS = Revenue - (Gross margin * Revenue)
= 6,400,000 - (25% * 6,400,000)
= $4,800,000
The COGS according to the income statement formula:
= Opening inventory + Purchases - Closing inventory
= 1,300,000 + 5,000,000 - 1,150,000
= $5,150,000
The difference is the missing inventory
Difference = 5,150,000 - 4,800,000
= $350,000
name any two money associated instruments??
Answer:
discount window and swaps
Catherine Jones has determined the following information about her own financial situation. Her checking account is worth $800 and her savings account is worth $1,500. She owns her own home that has a market value of $103,000. She has furniture and appliances worth $10,500 and a home computer and laptop worth $3,100. She has a car worth $14,000. She has recently purchased an annuity worth $5,400 and she has a retirement account worth $44,000. What is the value of her liquid assets
Answer:
$2,300
Explanation:
Calculation for the value of her liquid assets
Using this formula
Value of her liquid assets=Checking account worth+Savings account worth
Let plug in the formula
Value of her liquid assets=$800 + $1,500
Value of her liquid assets=$2,300
Therefore Value of her liquid assets will be $2,300
The following transactions occurred during May, the first month of operations for Hunter Products, Inc: * Issued 54,000 shares of capital stock to the owners of the corporation in exchange for $648,000 cash. * Purchased a piece of land for $440,000, making a $170,000 cash down payment and signing a note payable for the balance. * Made a $64,000 cash payment on the note payable from the purchase of land. * Purchased equipment on credit from BBW, Inc. for $67,000.
What is the balance in the Cash account at the end of May?
Answer:
$414,000
Explanation:
Calculation of balance of cash account:
Issuance of capital stock to the $648,000
owners of the corporation
Cash down payment for purchase ($170,000)
a piece of lane
Cash payment on the note payable ($64,000)
from the purchase of land
Balance in the Cash account $414,000
at the end of May
Prepare an amortization schedule for a three-year loan of $114,000. The interest rate is 11 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan?
Answer:
$1254.000 loan
Explanation:
hope help keep learning
Moby Enterprises reports the following information for 2019. ($ numbers are totals for 2019, not per unit) Selling price per unit $800 Beginning and ending balances of Work in Process Inventory 0 Beginning balance of Finished Goods Inventory (50 units) $28,750 Units produced 90 Units sold 100 Direct material used (variable) $12,000 Direct labor used (variable) $28,000 Manufacturing overhead (variable) $4,550 Manufacturing overhead (fixed) $10,800 Selling and admn. expenses: sales commission (variable) $4,000 fixed $10,000 Notes: Moby uses FIFO for maintaining its finished goods inventory account. The Beginning Finished Goods Inventory balance of $28,750 consists of $24,250 in variable manufacturing costs and $4,500 of fixed manufacturing overhead. REQUIRED: Part 1. Compute the following for 2019 using absorption costing: a. Total Manufacturing Costs b. Cost-of-Goods-Manufactured c. Per unit cost of production d. Ending balance of Finished Goods Inventory (in units and dollars) e. Cost-of-goods sold f. Gross Margin g. Net Income Part 2. Identify clearly how the fixed manufacturing overhead (both that in the opening inventory and that incurred in 2019) has moved.
Answer:
Moby Enterprises
Part 1:
a. Total Manufacturing Costs:
Direct material used (variable) $12,000
Direct labor used (variable) $28,000
Manufacturing overhead (variable) $4,550
Manufacturing overhead (fixed) $10,800
Total manufacturing costs = $55,350
b. Cost-of-Goods-Manufactured:
Total manufacturing costs = $55,350
c. Per unit cost of production = $55,350/90 = $615
d. Ending balance of Finished Goods Inventory (in units and dollars)
Beginning inventory of finished goods = 50
Plus units produced 90
Less units sold (100)
Ending inventory of finished goods = 40 units
Cost of ending inventory of finished goods = $24,600 (40 * $615)
e. Cost-of-goods sold:
Beginning Finished Goods Inventory $28,750
Cost of goods manufactured 55,350
Less Ending Finished goods inventory (24,600)
Cost of goods sold = $59,500
f. Gross Margin:
Revenue ($800 * 100) = $80,000
Cost of goods sold = (59,500)
Gross Margin = $20,500
g. Net Income:
Gross Margin $20,500
Less expenses (14,000)
Net income = $6,500
Part 2. Identify clearly how the fixed manufacturing overhead (both that in the opening inventory and that incurred in 2019) has moved.
Fixed manufacturing overhead in Beginning Inventory = $4,500
= $90 per unit ($4,500/50)
Fixed manufacturing overhead in current period = $10,800
= $120 per unit ($10,800/90)
This shows that the per unit cost of fixed manufacturing overhead has increased from $90 to $120.
Explanation:
a) Data and Calculations:
Selling price per unit $800
Beginning and ending balances of Work in Process Inventory 0
Beginning balance of Finished Goods Inventory (50 units) $28,750
$24,250 in variable manufacturing costs and $4,500 of fixed manufacturing overhead
Units produced 90
Units sold 100
Ending Finished Goods Inventory = 40 units (50 + 90 = 100)
Direct material used (variable) $12,000
Direct labor used (variable) $28,000
Manufacturing overhead (variable) $4,550
Manufacturing overhead (fixed) $10,800
Selling and admin. expenses:
sales commission (variable) $4,000
fixed $10,000
Your firm expects sales of $672,500 next year. The profit margin is 4.6 percent and the firm has a dividend payout ratio of 15 percent. What is the projected increase in retained earnings
Answer:
$26,294.8
Explanation:
Total expects sales at Next years = $672,500
The profit margin =4.6 percent
For the profit margin of expects sales at Next years= (4.6/100 ×$672,500)
= $30,935
dividend payout ratio =15 percent
distributed dividends= (15/100× $30,935)
= $26,294.75
the projected increase in retained earnings= difference between the profit margin of expects sales at Next years and distributed dividends
= ($30,935 - $4,640.25)
= $26,294.8
On January 1, 2024, Tyson Manufacturing Company purchased a machine for $41,100,000. Tyson's management expects to use the machine for 28,000 hours over the next six years. The estimated residual value of the machine at the end of the sixth year is $40,000. The machine was used for 4,000 hours in 2024 and 5,500 hours in 2025. What is the depreciation expense for 2024 if the company uses the units−of−production method of depreciation? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
Answer:
Annual depreciation= $5,865,714.29
Explanation:
Giving the following information:
Purchase price= $41,100,000
Salvage value= $40,000
Useful life in hours= 28,000
To calculate the depreciation expense for 2024, we need to use the following formula:
Annual depreciation= [(original cost - salvage value)/useful life of production in hours]*hours operated
Annual depreciation= [(41,100,000 - 40,000) / 28,000]*4,000
Annual depreciation= $5,865,714.29
The correct depreciation expense will be 5865714.28 dollars. This will be achieved only under the units of production depreciation method. In case of any other methods the values obtained will be different.
The units of production method of depreciation is obtained by calculated by dividing the machinery's net cost by its expected lifetime production and expense is calculated using the values obtained from this formula.
The annual depreciation expense will be determined only after calculation of depreciation under the method that follows the units of production method. The values have been given to us in the queries itself.The net cost of machinery is 41,100,000 expected life of machine is 28000 hours and the salvage value is 40000 at the end of 6 years. In this year the machine was used by Tyson Co. for 4000 hours.The values will be obtained by putting values to the formula of Depreciation under units of production method as[tex]Depreciation\ for\ 2024=\frac{Cost\ of\ purchase- salvage\ value}{total\ expected\ life}[/tex]
Putting the values in the formula we get[tex]depreciation\ for\ 2024=\frac{41100000-40000}{28000}[/tex]
[tex]depreciation\ for\ 2024=\frac{41060000}{28000}[/tex]
[tex]depreciation\ for\ 2024= 1466.42[/tex]
The value that has been obtained will now be put up in the formula of depreciation expense.[tex]Depreciation\ expense\ for\ 2024= 1466.42 *4000[/tex]
[tex]Depreciation\ expense\ for\ 2024= 5865714.28[/tex]
So, it is clear that the depreciation expense the firm has made is $5865714.28Hence, the correct choice for depreciation of Tyson Manufacturing company for the year 2024 will be $5865714.28
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Choco Chocolata is a cookie company in Juarez, Mexico that produces and sells American-style chocolate chip cookies with extremely high quality and service. The owner would like to identify the various costs incurred during each year in order to plan and control the costs in the business. Chocolata's costs are the following (in thousands of pesos): Utilities for the bakery $ 2,100 Paper used in packaging product 180 Salaries and wages in the bakery 23,500 Cookie ingredients 43,500 Bakery labor fringe benefits 1,300 Administrative costs 2,300 Bakery equipment maintenance 800 Depreciation of bakery plant and equipment 2,200 Uniforms for bakers 750 Insurance for the bakery 900 Rent for administration offices 18,500 Advertising 3,500 Boxes, bags, and cups used in the bakery 1,100 Office Manager's salary 13,000 Overtime premiums 2,600 Idle Time 500 Required (you may scan/email your supporting documentation for your answers but put final answers in box below): (1) What is the total amount of product costs
Answer:
(1) The total amount of product costs is $79,430.
(2) The total amount of period costs is $37,300.
Explanation:
Note: There are two requirements in this question as follows:
(1) What is the total amount of product costs?
(2) What is the total amount of period costs?
These two are answered as follows:
(1) What is the total amount of product costs?
Product cost can be described as the expenses that are incurred in order to produce a product. These types of expenses are charged to cost of goods sold and include direct materials, direct labor, factory overhead, and consumable production supplies.
Therefore, the total amount of product costs of Choco Chocolata can be calculated as follows:
Choco Chocolata
Computation of Total Product Costs
Details Amount ($)
Utilities for the bakery 2,100
Paper used in packaging product 180
Salaries and wages in the bakery 23,500
Cookie ingredients 43,500
Bakery labor fringe benefits 1,300
Bakery equipment maintenance 800
Depreciation of bakery plant and equipment 2,200
Uniforms for bakers 750
Insurance for the bakery 900
Boxes, bags, and cups used in the bakery 1,100
Overtime premiums 2,600
Idle Time 500
Total 79,430
Therefore, the total amount of product costs is $79,430.
(2) What is the total amount of period costs?
Period costs are costs that are related to passage of time but cannot not be charged to the cost of goods sold.
Therefore, the total amount of period costs of Choco Chocolata can be calculated as follows:
Choco Chocolata
Computation of Total Period Costs
Details Amount ($)
Administrative costs 2,300
Rent for administration offices 18,500
Advertising 3,500
Office Manager's salary 13,000
Total 37,300
Therefore, the total amount of period costs is $37,300.
Cohen Company produces and sells socks. Variable cost is $6 per pair, and fixed costs for the year total $75,000. The selling price is $10 per pair. Required: 1. Calculate the breakeven point in units. 2. Calculate the breakeven point in sales dollars. 3. Calculate the units required to make a before-tax profit of $40,000. 4. Calculate the sales dollars required to make a before-tax profit of $35,000. (Do not round intermediate calculations.) 5. Calculate the sales, in units and in dollars, required to make an after-tax profit of $25,000 given a tax rate of 30%.
Answer:
Results are below.
Explanation:
a) To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 75,000 / 4
Break-even point in units= 18,750
b)To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 75,000 / (4/10)
Break-even point (dollars)= $187,500
c) Desired profit= $40,000
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (75,000 + 40,000) / 4
Break-even point in units= 28,750
d) Desired profit= $35,000
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= (75,000 + 35,000) / 0.4
Break-even point (dollars)= $275,000
e) Desired profit (before taxes)= 25,000/0.7= $35,714
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= 110,714/4
Break-even point in units= 27,679
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= 110,714/0.4
Break-even point (dollars)=$276,785
The Credit Card Processing unit of a bank receives 60 applications per hour. All applications first go through application processing that takes 6 minutes per application. There are 4 workers in the unit who process the applications. After the application is processed, all applications go through the credit check stage which takes 10 minutes per application. There are 6 workers at this stage. 20% of the applications fail the credit check and are rejected. Remaining 80% of applications that pass the credit check are sent for determining credit limit. There are 6 workers at the Determine credit limit stage, and it takes 15 minutes for a worker to process one application. After the credit limit is determined, all applications are sent to the issuing desk, who issue the credit card, and it takes 3 minutes per application.
What is the capacity of the "Credit Check" stage in number of applications per hour?
Answer:
36 applications/hour
Explanation:
Number of application/hour/worker = 60/processing time
Number of application/hour = (60/processing time) * Number of workers
Process No of Processing Number of application Number of
Workers Time (min) /hour/worker application/hour
Application 4 6 10 40
Processing
Credit Check 6 10 6 36
Determine 6 15 4 24
Credit Limit
Issue Card 2 2 30 60
Capacity of credit check in applications per hours = 36 applications/hour
You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $32.50 million in assets with $30.25 million in debt and $2.25 million in equity. LotsofEquity, Inc. finances its $32.50 million in assets with $2.25 million in debt and $30.25 million in equity.
Required:
a. Calculate the debt ratio.
b. Calculate the equity multiplier.
c. Calculate the debt-to-equity.
Answer:
See below
Explanation:
Lots of debt
1a.
Debt equity ratio
Debt ratio = debt 1 / Asset 1
Debt ratio = $30.25 / $32.50
Debt ratio = 93.1$
1b
Equity multiplier = Asset 1 / Equity 1
Equity multiplier = $32.50 / $2.25
Equity multiplier = 14.4 times
1c
Debt to equity ratio = debt 1 / equity 1
Debt to equity ratio = $30.25 / $2.25
Debt to equity ratio = 13.4%
Lots of equity inc.
2a
Debt equity ratio = debt 2 / asset 2
Debt equity ratio = $2.25 / $32.5
Debt to equity ratio = 6.9%
2b
Equity multiplier = Asset 2 / Equity 2
Equity multiplier = $32.5 / $30.25
Equity multiplier = 1.1 times
2c
Debt to equity ratio = Debt 2 / Equity 2
Debt to equity ratio = $2.25 / $30.25
Debt to equity ratio = 0.1 times
Lego Group in Bellund, Denmark, manufactures Lego toy construction blocks. The company is considering two methods for producing special-purpose Lego parts. Method 1 will have an initial cost of $360,000, an annual operating cost of $130,000, and a life of 3 years. Method 2 will have an initial cost of $760,000, an operating cost of $130,000 per year, and a 6-year life. Assume 13% salvage values for both methods. Lego uses an MARR of 13% per year.
Required:
a. Which method should it select on the basis of a present worth analysis?
b. If the evaluation is incorrectly performed using the respective life estimates of 3 and 6 years, will Lego make a correct or incorrect economic decision? Explain your answer.
Answer:
a) method 1 has a lower present worth, so it should be selected.
b) in order to properly compare both projects, we must assume that method 1 will be repeated at he end of year 3. That way both projects will have the same life span.
Explanation:
we must first determine the equivalent cash flows:
method 1 method 2
initial outlay -360,000 -760,000
cash flow year 1 -130,000 -130,000
cash flow year 2 -130,000 -130,000
cash flow year 3 -443,200 -130,000
cash flow year 4 -130,000 -130,000
cash flow year 5 -130,000 -130,000
cash flow year 5 -83,200 -31,200
the present worth of method 1 = -$1,074,266
the present worth of method 2 = -$1,232,226
You need to accumulate $10,000. To do so, you plan to make deposits of $1,000 per year - with the first payment being made a year from today - into a bank account that pays 14% annual interest. Your last deposit will be less than $1,000 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal
Answer:
It will take 6.68 years to reach the $10,000 goal.
Explanation:
As the deposit of $1,000 per year is a form of the annuity payment.
We will use the following formula in order to calculate the numbers of year required to reach the goal
Future value of Annuity = Annuity payment x ( ( ( 1 + interest rate )^numbers of years ) - 1 ) / Interest rate
Where
Future value of Annuity = Target amount = $10,000
Annuity payment = Yearly deposti = $1,000
Interest rate = 14%
Numbers of years = n = ?
Placing values in the formula
Future value of Annuity = Annuity payment x ( ( ( 1 + interest rate )^numbers of years ) - 1 ) / Interest rate
$10,000 = $1,000 x ( ( ( 1 + 14% )^n ) - 1 ) /14%
$10,000 x 14% = $1,000 x ( ( ( 1.14 )^n ) - 1)
$1,400 = $1,000 x ( ( ( 1.14 )^n ) - 1)
$1,400 / $1,000 = ( ( 1.14 )^n ) - 1
1.4 = ( ( 1.14 )^n ) - 1
1.4 + 1 = 1.14^n
2.4 = 1.14^n
Log 2.4 = n x Log 1.14
n = Log 2.4 / Log 1.14
n = 6.681525965
n = 6.68 years
It will take 6.68 years to reach the $10,000 goal.
Jerome has insignificant influence of Melina Corporation because it owns less than 20% of the voting stock. The cost of the Melina stock is $5,000 and has a fair value of $6,000 on December 31 at the end of the first year it held the securities. Complete the necessary adjusting entry selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.
Answer:
Dec 31
Dr Fair value adjustment - stock $1,000
Cr Unrealized gain - Income $1,000
Explanation:
Preparation of the necessary adjusting entry
Based on the information given if The cost of the Melina stock was the amount of $5,000 in which it has a fair value of the amount of $6,000 on December 31 which means that the necessary adjusting entry will be :
Dec 31
Dr Fair value adjustment - stock $1,000
Cr Unrealized gain - Income $1,000
($6,000 - $5,000)
∑⊂⊃⊃⊆⊇⊄⊅∀⇵←→∨∧∉∈⇔∛ what do this means
[tex]\left[\begin{array}{ccc}1&2&3\\4&5&6\\7&8&9\end{array}\right][/tex]
Answer:
hello
Explanation:
hi
Pharoah Company was incorporated on January 2, 2021, but was unable to begin manufacturing activities until July 1, 2021, because new factory facilities were not completed until that date. The Land and Buildings account reported the following items during 2021.
January 31 Land and buildings $165,500
February 28 Cost of removal of building 9,885
May 1 Partial payment of new construction 62,670
May 1 Legal fees paid 4,920
June 1 Second payment on new construction 41,500
June 1 Insurance premium 2,280
June 1 Special tax assessment 3,910
June 30 General expenses 38,222
July 1 Final payment on new construction 32,760
December 31 Asset write-up 48,558
410,205
December 31 Depreciation-2021 at 1% (3,970 )
December 31, 2021 Account balance $406,235
The following additional information is to be considered.
1. To acquire land and building, the company paid $85,500 cash and 800 shares of its 8% cumulative preferred stock, par value $100 per share. Fair value of the stock is $110 per share.
2. Cost of removal of old buildings amounted to $9,885, and the demolition company retained all materials of the building.
3. Legal fees covered the following.
Cost of organization $650
Examination of title covering purchase of land 1,390
Legal work in connection with construction contract 2,440
$4,480
4. Insurance premium covered the building for a 2-year term beginning May 1, 2021.
5. The special tax assessment covered street improvements that are permanent in nature.
6. General expenses covered the following for the period from January 2, 2021, to June 30, 2021.
President’s salary $29,277
Plant superintendent’s salary-supervision of new building 4,292
$33,569
7. Because of a general increase in construction costs after entering into the building contract, the board of directors increased the value of the building $53,080, believing that such an increase was justified to reflect the current market at the time the building was completed. Retained earnings was credited for this amount.
8. Estimated life of building-50 years.
Depreciation for 2021-1% of asset value (1% of $399,300, or $3,993).
Required:
a. Prepare entries to reflect correct land, buildings, and depreciation accounts at December 31, 2021.
b. Prepare a balance sheet
Answer:
Pharoah Company
1. Costs attributed to:
a) Land:
January 31 Land and buildings $165,500 (Cash $85,500; Stock $80,000)
February 28 Cost of removal of building 9,885
May 1 Legal fees paid 2,480
June 1 Special tax assessment 3,910
Total cost of Land = $181,775
b) Building:
May 1 Partial payment of new construction 62,670
May 1 Legal fees paid 2,440
June 1 Second payment on new construction 41,500
July 1 Final payment on new construction 32,760
December 31 Asset write-up 48,558
Supervision of new building 4,292
Total cost of building = $192,220
2. Balance Sheet:
Non-current assets:
Land $181,775
Building 192,220
less depreciation 3,844 188,376
Total non-current assets = $370,151
Explanation:
a) Data and Calculations:
January 31 Land and buildings $165,500
February 28 Cost of removal of building 9,885
May 1 Partial payment of new construction 62,670
May 1 Legal fees paid 4,920
June 1 Second payment on new construction 41,500
June 1 Insurance premium 2,280
June 1 Special tax assessment 3,910
June 30 General expenses 38,222
July 1 Final payment on new construction 32,760
December 31 Asset write-up 48,558
Total 410,205
December 31 Depreciation-2021 at 1% (3,970 )
December 31, 2021 Account balance $406,235
Adjustments:
1. Cash paid for land and building = $85,500
Cumulative preferred stock ($100 * 800) = $80,000
Total cost incurred = $165,500
Rory has been an underwriting assistant at a large insurance company for the past few years. He is an extremely hard worker and goes above and beyond. He puts in long hours to ensure the accounts are current and ready for the underwriters. Noting his efforts, the company offers him a 15% pay raise along with a small bonus. Three months later, Rory submits his resignation letter and soon joins a startup organization as a senior underwriter. Which of the following best explains this situation?
A. Rory felt the pay raise was undeserved.
B. Rory found his work to be repetitive and boring.
C. Rory was motivated by the prospect of extrinsic rewards.
D. Rory was after a position with the competitor all along.
E. Rory, though highly skilled, lacked motivation
Answer:
B. Rory found his work to be repetitive and boring.
Explanation:
In this scenario, Rory is described as an individual who strives to be the best at what he does which is why he works so hard. The pay raise that they offered him at his current job was a good pay raise and it included a small bonus. Therefore, Rory did not care about the money. Instead, he most likely found the work to be repetitive and boring and probably wanted something new and interesting. Joining a startup and working on a new and innovative project where he can add real value to the team is most likely what Rory really wanted.
Thomlin Company forecasts that total overhead for the current year will be $15,000,000 with 300,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. If Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is
Answer:
$50,000 overapplied
Explanation:
The computation of the overhead is shown below:
The predetermined overhead rate is
= $15,000,000 ÷ 3,000,0000 machine hours
= $50
Now the applied overhead is
= $50 × 330,000 hours
= $16,500,000
Now the overapplied overhead is
= $16,500,000 - $16,000,000
= $50,000 overapplied
Assume that the price of a pizza at your local pizza parlor is $12. Illustrate what happens to producer surplus if the price falls from $12 to $6. First indicate the producer surplus lost by those sellers that leave the market because of this lower price. Label this A. Then indicate the decrease in producer surplus lost to those sellers that continue to sell pizza at the lower price. Label this B.
Answer:
attached below
Explanation:
Initial price of pizza at local parlor = $12
new price of pizza = $6
a) Product surplus = area above supply curve and below price ( A )
b) Decrease in producer surplus lost to sellers that continue selling pizza at lower price is represented with B
The Flemings secured a bank loan of $312,000 to help finance the purchase of a house. The bank charges interest at a rate of 5%/year on the unpaid balance, and interest computations are made at the end of each month. The Flemings have agreed to repay the loan in equal monthly installments over 25 years. What should be the size of each repayment if the loan is to be amortized at the end of the term
Answer:
The size of each repayment should be $1,823.92
Explanation:
The periodic payment of loan is a form of annuity cash flow.
Use the following formula to calculate the size of the payment
PV of Annuity = Annuity Payment x ( 1 - ( 1 + interest rate )^-Numbers of periods ) / Interest rates
Where
Interest rate = Monthly interest rate = 5% / 12
Numbers of periods = Numbers of monthly payments = 25 years x 12 months per years = 300
PV of Annuity = Bank loan value = $312,000
Annuity Payment = Size of repayment = ?
Placing values in the formula
$312,000 = Size of repayment x ( 1 - ( 1 + 5%/12 )^-300 ) / 5%/12
$312,000 = Size of repayment x 171.060047
Size of repayment = $312,000 / 171.060047
Size of repayment = $1,823.92093
Size of repayment = $1,823.92
list the methods of obtaining information about foreign employment
Explanation:
social media
new papers
personal contact
recruitment website.
In January, Tongo, Inc., a branding consultant, had the following transactions. Indicate the accounts, amounts, and direction of the effects on the accounting equation under the accrual basis.
a. (Sample) Received $10,600 cash for consulting services rendered in January.
b. Issued common stock to investors for $15,500 cash.
c. Purchased $17,600 of equipment, paying 25 percent in cash and owing the rest on a note due in two years.
d. Received $7,750 cash for consulting services to be performed in February.
e. Bought and received $1,100 of supplies on account.
f. Received utility bill for January for $2,070, due February 15.
g. Consulted for customers in January for fees totaling $16,500, due in February.
h. Received $13,500 cash for consulting services rendered in December.
i. Paid $550 toward supplies purchased in (e).
Answer:
Cash + Supplies = Accounts Payable + common stock - dividends + sales commission - Rent expense.
$10,600 + 1,100 = $13,125 - $15,500 +$7,750 - $2,070 - $550 +13,500 + $16,500
Explanation:
Tongo Inc. has incurred transaction in business for the routine business activities. These transaction have impact on asset, liabilities and equity side of the balance sheet. The effect of each transaction is given through the equation based on accrual concept.
List 5 ways by which Artificial intelligence (AI) can be used to drive our business.
Use this information for Magnum Company to answer the following question. The following totals for the month of April were taken from the payroll register of Magnum Company: Salaries $10,000 FICA taxes withheld 750 Income taxes withheld 2,000 Medical insurance deductions 450 Unemployment taxes 420 The entry to record the accrual of the employer's payroll taxes would include a
Answer:
Debit to pay roll tax expense for $1,170
Explanation:
Based on the information given The journal entry to record the accrual of the employer's payroll taxes would include a DEBIT to pay roll tax expense for $1,170 which is calculated as:
FICA taxes withheld 750
Add Unemployment taxes 420
Debit to pay roll tax expense for $1,170
(750+420)
When OSHA was enacted in 1970, it was heralded as the most important new source of protection for the U.S. worker in the second half of the twentieth century. From the information in this chapter, what is your opinion about the effectiveness or the ineffectiveness of the act? Should it be expanded, or it should businesses have more freedom to determine safety standards for their workers?
Explanation:
This act OSHA is effective in the establishment of safety and health standards in businesses. Without this act there would be unsafe working conditions for employees in some companies.
The act is ineffective because of the political administration of the day. A new administration may decide to increase the budget, while another may decide to cut it. There is no standard budget for OSHA.
I do not think the act should be expanded. But it does need an amendment which should follow technological advancements.
Although this act has set safety guidelines for companies to follow, so as to make sure that workers are safe where they work, I believe that companies, businesses, should be allowed to some extents to set safety standards for their workers above that of OSHA.
Ethnocentric managers believe that their native country, culture, language, and behavior need to be changed. are equal to all other cultures. make them citizens of the world. are hurtful to others. are superior to all others.
Answer:
are superior to other cultures.
Explanation:
Ethnocentrism is the belief that indigenous culture, customs, and way of life are more important than other cultures. Ethnographers believe that their own culture, country, language and all other characteristics are superior to other cultures.so correct answer are superior to other cultures.On January 1, 2020, Marigold Corp. exchanged equipment for a $650000 zero-interest-bearing note due on January 1, 2023. The prevailing rate of interest for a note of this type at January 1, 2020 was 12%. The present value of $1 at 12% for three periods is 0.71. What amount of interest revenue should be included in Marigold's 2021 income statement
Answer:
$62,026
Explanation:
Calculation for What amount of interest revenue should be included in Marigold's 2021 income statement
First step is to calculate present value of note
Present value of note=$650,000 × .71
Present value of note= $461,500
Second step is to calculate the increase in Present value of note
Increase in Present value of note =$461,500 × 1.12
Increase in Present value of note= $516,880
Now let calculate amount of interest revenue
Interest revenue=$516,880 × 0.12
Interest revenue= $62,026
Therefore What amount of interest revenue should be included in Marigold's 2021 income statement is $62,026