Answer:
0.4
None of the above
Explanation:
Given the distribution :
c ___$0 ___ $1000 ____ $4000 ___ $10000
P(c) _0.6 ____0.05 ______ 0.13 _____ 0.22
Probability of atleast $1000 :
P(x ≥ 1000) : P(x = 1000) + P(x = 4000) + P(x = 10000)
P(x ≥ 1000) = 0.05 + 0.13 + 0.22
P(x ≥ 1000) = 0.4
The probability of the insurance company having to pay the claim of a minimum of $1000 for a randomly opted car's model would be:
e). 0.406
As per the data provided,
c P(c)
$0 0.6
$1000 0.05
$4000 0.13
$10000 0.22
Probability of insurance company having to pay the claim of a minimum of $1000 for a randomly opted car's model(P):
[tex]P(x[/tex] [tex]\geq[/tex] [tex]1000) : P(x = 1000) + P(x = 4000) + P(x = 10000)[/tex]
[tex]P(x \geq 1000)[/tex] [tex]= 0.05 + 0.13 + 0.22[/tex]
∵ [tex]P(x \geq 1000)[/tex] [tex]= 0.406[/tex]
Thus, option e is the correct answer.
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Adjusting Entries and Adjusted Trial Balances
Emerson Company is a small editorial services company owned and operated by Suzanne Emerson. On October 31, 20Y6, Emerson Company's accounting clerk prepared the following unadjusted trial balance:
Emerson Company
Unadjusted Trial Balance
October 31, 20Y6
Debit Credit
Balances Balances
Cash 3,930
Accounts Receivable 35,640
Prepaid Insurance 6,640
Supplies 1,810
Land 104,800
Building 269,090
Accumulated Depreciation—Building 128,060
Equipment 125,950
Accumulated Depreciation—Equipment 91,210
Accounts Payable 11,180
Unearned Rent 6,340
Suzanne Emerson, Capital 285,400
Suzanne Emerson, Drawing 13,890
Fees Earned 302,030
Salaries and Wages Expense 180,010
Utilities Expense 39,570
Advertising Expense 21,140
Repairs Expense 16,010
Miscellaneous Expense 5,740
824,220 824,220
The data needed to determine year-end adjustments are as follows:
Unexpired insurance at October 31, $4,450.
Supplies on hand at October 31, $540.
Depreciation of building for the year, $2,950.
Depreciation of equipment for the year, $2,550.
Unearned rent at October 31, $1,650.
Accrued salaries and wages at October 31, $2,880.
Fees earned but unbilled on October 31, $16,910.
Required:
1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation Expense—Building; Depreciation Expense—Equipment; and Supplies Expense. If an amount box does not require an entry, leave it blank.
2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance.
Answer:
Emerson Company
1. Adjusting Journal Entries
Debit Insurance expense $2,190
Credit Prepaid Insurance $2,190
To record expired insurance expense for the year.
Debit Supplies expense $1,270
Credit Supplies $1,270
To record supplies expense for the year.
Debit Depreciation expense of building $2,950
Credit Accumulated depreciation - building $2,950
To record depreciation expense for the year.
Debit Depreciation expense of equipment $2,550
Credit Accumulated depreciation - equipment $2,550
To record depreciation expense for the year.
Debit Unearned rent $4,690
Credit Rent Revenue $4,690
To record rent earned for the year.
Debit Salaries and wages Expense $2,880
Credit Salaries and wages payable $2,880
To record accrued salaries and wages.
Debit Accounts receivable $16,910
Credit Fees earned $16,910
To record fees earned but unbilled.
2. Adjusted Trial Balance as of October 31, 20Y6
Emerson Company
Adjusted Trial Balance as of October 31, 20Y6
Debit Credit
Cash $3,930
Accounts Receivable 52,550
Prepaid Insurance 4,450
Supplies 540
Land 104,800
Building 269,090
Accumulated Depreciation—Building $131,010
Equipment 125,950
Accumulated Depreciation—Equipment 93,760
Accounts Payable 11,180
Salaries and Wages Payable 2,880
Unearned Rent 1,650
Suzanne Emerson, Capital 285,400
Suzanne Emerson, Drawing 13,890
Fees Earned 318,940
Rent Revenue 4,690
Salaries & Wages Expense 182,890
Utilities Expense 39,570
Advertising Expense 21,140
Repairs Expense 16,010
Miscellaneous Expense 5,740
Insurance Expense 2,190
Supplies Expense 1,270
Depreciation Exp. Building 2,950
Depreciation Exp. Equip. 2,550
Totals $849,510 $849,510
Explanation:
a) Data and Calculations:
Emerson Company
Unadjusted Trial Balance as of October 31, 20Y6
Debit Credit
Cash $3,930
Accounts Receivable 35,640
Prepaid Insurance 6,640
Supplies 1,810
Land 104,800
Building 269,090
Accumulated Depreciation—Building $128,060
Equipment 125,950
Accumulated Depreciation—Equipment 91,210
Accounts Payable 11,180
Unearned Rent 6,340
Suzanne Emerson, Capital 285,400
Suzanne Emerson, Drawing 13,890
Fees Earned 302,030
Salaries & Wages Expense 180,010
Utilities Expense 39,570
Advertising Expense 21,140
Repairs Expense 16,010
Miscellaneous Expense 5,740
Totals $824,220 $824,220
Adjustments:
Prepaid Insurance balance = $4,450
Insurance expense = $2,190 (6,640 -4,450)
Supplies balance = $540
Supplies expense = $1,270 (1,810 - 540)
Depreciation expense of building = $2,950
Accumulated depreciation - building = $131,010 (128,060 + 2,950)
Depreciation expense of equipment = $2,550
Accumulated depreciation - equipment = $93,760 (91,210 + 2,550)
Unearned rent = $1,650
Rent Revenue = $4,690 (6,340 - 1,650)
Salaries and wages payable = $2,880
Salaries and wages = $182,890 (180,010 + 2,880)
Accounts receivable = $52,550 (35,640 + 16,910)
Fees earned = $318,940 (302,030 + 16,910)
Thomlin Company forecasts that total overhead for the current year will be $10,282,000 with 194,000 total machine hours. Year to date, the actual overhead is $5,689,800, and the actual machine hours are 98,100 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:
$490,500 underapplied
Explanation:
The computation of the overhead is shown below:
But before that the predetermined overhead rate and the applied overhead is
Predetermined overhead rate is
= Estimated overhead ÷ estimated activity
= $10,282,000 ÷ 194,000
= $53 per MH
Now
Applied overhead = actual activity × overhead rate
= 98,100 hours ×$53 per MH
= $5,199,300
Now the underapplied overhead is
= $5,689,800 - $5,199,300
= $490,500 underapplied
what is the solutions of differences in perception?
11) Which of the following sections of the statement of cash flows includes activities that increase and decrease long-term liabilities and stockholders' equity? A) the investing activities section B) the financing activities section C) the operating activities section D) the non-cash investing and financing section
Answer:
A) the investing activities section
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.
1. Operating cash flow: all cash generated from the business activities of an organization.
2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.
3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.
Generally, investing activities comprises of purchasing physical assets, investing in securities and the sale of assets or securities associated with the company.
Hence, the investing activities section of the statement of cash flows includes activities that increase and decrease long-term liabilities and stockholders' equity in the business they have invested their money in.
The income statement for the Timberline Golf Club Inc. for the month ended July 31 shows Service Revenue $18,530; Salaries and Wages Expense $9,100; Maintenance and Repairs Expense $4,190; and Income Tax Expense $1,110. The statement of retained earnings shows an opening balance for Retained Earnings of $20,590 and Dividends $1,830.Prepare closing journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer and Explanation:
The closing journal entries are as follows:
1. Service revenue Dr $18,530
To Income summary $18,530
(being revenue account is closed)
2. Income summary Dr $14,400
To Salaries and Wages Expense $9,100
To Maintenance and Repairs Expense $4,190
To Income Tax Expense $1,110
(being expenses account is closed)
3. Income summary Dr $4,130 ($18,530 - $14,400)
To retained earnings $4,130
(Being closing of the net income is recorded)
4. Retained earnings Dr $1,830
To Dividend $1,830
(being dividend account is closed)
Green Day Corporation has outstanding 500,000 shares of $10 par value common stock. The corporation declares a 70% stock dividend when the fair value of the stock is $45 per share. Prepare the journal entries for Green Day Corporation for both the date of declaration and the date of distribution.
Date of Declaration:
Dr: Retained Earnings 22,850,000
Cr: Common Stock Dividend Distributable 350,000
Cr: Paid-in Capital in Excess of Par-Common 22,500,000
500,000*45 = 22,500,000
22,500,000+350,000=22,850,000
Date of Distribution:
(70%*500,000) = 350,000
Dr: Common Stock Dividend Distributable 350,000
Cr: Common Stock 350,000
What level of government is most closely associated with zoning?
a.local
b.interstate
c.federal
d.state
Use each of these key terms to best complete the following sentences. Use each term no more than once. Agreeableness
1. Neuroticism
2. Extraversion
3. Conscientiousness
4. Openness
5. Machiavellianism
6. Authoritarianism
a. Ted is willing to listen to new ideas and to change his beliefs and attitudes in response to new information. Ted is likely high in this personality trait.
b. Eduardo tends to be insecure and often has mood swings at work that make his coworkers uncomfortable. Eduardo is likely to be high in this personality trait.
c. Aidan is often late with projects and seems disorganized. He is likely low in this personality trait
d. Betty is sociable, talkative, and one of the first employees to welcome a new hire and offer to show him or her around. Betty is likely high in this personality trait.
Answer:
4
1
3
2
Explanation:
The big 5 personality traits include
Openness - it includes people who are open to new things and enjoy learning new things.
Ted is high on this trait
Extraversion - it includes people who enjoy meeting new people and are very sociable.
Betty is high on this trait
Conscientiousness - includes people that are organised and pay attention to details. Aiden is low on this trait
Agreeableness - includes people that trust people easily and are kind
Neuroticism - includes people that are usually moody or sad
A company issued 8%, 15-year bonds with a par value of $580,000 that pay interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is:_________
A. Debit Bond Interest Expense $23,200; credit Cash $23,200.
B. Debit Bond Interest Expense $46,400; credit Cash $46,400.
C. Debit Bond Interest Payable $38,667; credit Cash $38,667.
D. Debit Bond Interest Expense $530,000; credit Cash $530,000.
E. No entry is needed, since no interest is paid until the bond is due.
Answer: Debit Bond Interest Expense $23,200; credit Cash $23,200.
Explanation:
With regards to the above, we should note that due to the fact that the bonds are issued at par, no discount will be involved for this particular bond. Therefore, the interest expense will be calculated as:
= (580,000 × 8% × 15) / 2
= (580,000 × 0.08 × 15)/2
= 348,000
Then, each semiannual interest payment will be:
= $348,000 / 15
= $23200
Therefore, journal entry to record each semiannual interest payment is:
Debit Bond Interest Expense $23,200;
Credit Cash $23,200.
Selected transactions from the journal of Metlock Inc. during its first month of operations are presented here:
Date Account Titles Debit Credit
Aug. 1 Common Stock 9,000
Cash 9,000
Aug. 10 Cash 1,400
Service Revenue 1,400
Aug. 12 Equipment 5,600
Cash 1,540
Notes Payable 4,060
Aug. 25 Accounts Receivable 2,570
Service Revenue 2,570
Aug. 31 Cash 750
Accounts Receivable 750
Required:
Post the transactions to T-accounts.
(Post in same order as question)
Answer:
Metlock, Inc.
T-accounts:
Common Stock
Date Account Titles Debit Credit
Aug. 1 Common Stock 9,000
Cash
Date Account Titles Debit Credit
Aug. 1 Common Stock 9,000
Aug. 10 Service Revenue 1,400
Aug. 12 Equipment 1,540
Aug. 31 Accounts receivable 750
Service Revenue
Date Account Titles Debit Credit
Aug. 10 Cash 1,400
Aug. 25 Accounts receivable 2,570
Equipment
Date Account Titles Debit Credit
Aug. 12 Cash 1,540
Notes Payable 4,060
Accounts Receivable
Date Account Titles Debit Credit
Aug. 25 Service Revenue 2,570
Aug. 31 Cash 750
Explanation:
Common stock of $9,000 was posted on the debit side as it appeared first. This follows the normal order of recording transactions in the journal. The accounts to be debited are recorded first before the accounts to be credited. However, this entry appears abnormal. Cash of $9,000 should have appeared first in the journal before the Common Stock. Whichever is the correct interpretation, all the journal entries have been posted to the T-accounts accordingly.
You need an inexpensive, reliable network for about twenty-five computers, all of which will be in two rooms. It is important that the network not entirely depend on one hub or one node. However, nodes will regularly be added and removed from the network, so flexibility is essential. Which topology should you use?
a.bus
b.mesh
c.star
d.ring
Answer:
a.bus
Explanation:
The bus type of topology used in connecting computers is the type whereby the connection is not entirely dependent on each other but still connected to each other in a bus form.The connection is done in such a way that, nodes can be regularly removed from the connection without crippling the whole connection of the computer network.
The answer is
A.) Bus
Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations:
1. Accepted $18,700 on April 1, Year 1, as a retainer for services to be performed evenly over the next 12 months.
2. Performed legal services for cash of $64,000.
3. Purchased $1,250 of office supplies on account.
4. Paid $1,125 of the amount due on accounts payable.
5. Paid a cash dividend to the stockholders of $6,000.
6. Paid cash for operating expenses of $20,000.
7. Determined that at the end of the accounting period $125 of office supplies remained on hand.
8. On December 31, Year 1, recognized the revenue that had been earned for services performed in accordance with Transaction 1.
Required
Show the effects of the events on the financial statements using a horizontal statements model. The first event has been recorded as an example. (In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input.)
Answer:
1. Cash will increase by $18,700 for the services to be rendered over the 12 months.
2. Cash will reduce by $64,000 for the legal service acquired.
3. No effect on cash as the transaction is on accounts.
4. Cash will decrease by $1,250 for the supplies purchased.
5. Cash will decrease by $6,000 for the dividends paid.
6. Cash will decrease by $20,000 due to operating expenses
7. no effect on cash
8. no effect on cash.
Explanation:
The business transactions recorded by Hart, Attorney at Law, These transactions have impact on the cash. The inflow and outflow of cash is recorded in the cash flow statement. Transaction no. 3, 7 and 8 will have no effects on cash balance of the company.
You are a supplier of printed circuit boards (PCBs). Production of the circuit boards consists of several steps – Surface Mounting, Baking, and Final Assembly. Surface Mounting puts integrated circuits (ICs) and other components on a PCB. These PCBs are then Baked as a batch and kept in an oven for some time so that the ICs are soldered onto the PCBs. Finally, these PCBs are taken and manually assembled into a case, and wired with connectors. The processing rate at the Surface Mounting station is 15 PCBs/minute, the processing rate for Baking is 5 PCBs/minute, and the processing rate for Final Assembly is 3 PCBs/minute. If there are on average 24 units of (work in process) inventory and the system is working at capacity, what is the flow (throughput) time for PCBs?
Answer:
the flow (throughput) time for PCBs is 40 units per minute
Explanation:
Given that;
Work in progress WIP = 24
we calculate the time spent to make the PCBs, lead time
Processing rate at the Surface Mounting station is 15 PCBs/minute
so time taken by a single PCB at the SM operation = 1/15 min
Processing rate for Baking is 5 PCBs/minute
so time taken by a single PCB at the baking operation = 1/5 min
the processing rate for Final Assembly is 3 PCBs/minute
so time taken by a single PCB at the assembly = 1/3 min
∴ total time taken will be;
(1/15) + (1/5) + (1/3)
= 0.6 min
Now, using Little's Law;
Working in progress WIP = throughput × lead time
Throughput = WIP / Lead time
so we substitute
Throughput = 24 / 0.6 min
Throughput = 40 units per minute
Therefore the flow (throughput) time for PCBs is 40 units per minute
Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a series of payments over time. If you pick the lump sum, you get $2,800 today. If you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today.
1) At an interest rate of 6% per year, the winner would be better off accepting the (LUMP SUM or PAYMENTS OVER TIME?), since it has the greater present value.
2) At an interest rate of 9% per year, the winner would be better off accepting the (LUMP SUM or PAYMENTS OVER TIME?), since it has the greater present value.
3) Years after you win the lottery, a friend in another country calls to ask your advice. By wild coincidence, she has just won another lottery with the same payout schemes. She must make a quick decision about whether to collect her money under the lump sum or the payments over time. What is the best advice to give your friend?
A) The lump sum is always better.
B) The payments over time are always better.
C) It will depend on the interest rate; advise her to get a calculator.
D) None of these answers is good
Answer:
PAYMENTS OVER TIME
lump sum
c
Explanation:
To know the better option, we have to calculate the present value of the series of cash flows
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 0 = $1000
Cash flow in year 1 = $1000
Cash flow in year 2 = $1000
PV when interest rate is 6 = 2833.93
PV when interest rate is 8 = 2783.26
When PV when interest rate is 6 , choose payment over time because it is higher
PV when interest rate is 8 , choose lump sum because it is higher
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,580, and a new model, the Majestic, which sells for $1,270. The production cost computed per unit under traditional costing for each model in 2020 was as follows.
Traditional Costing Royale Majestic
Direct materials $650 $420
Direct labor ($20 per hour) 120 100
Manufacturing overhead ($42 per DLH) 252 210
Total per unit cost $1,022 $730
In 2017, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $42 per direct labor hour was determined by dividing the total expected manufacturing overhead of $8,449,220 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $458 ($1,480 - $1,022) and Majestic $540 ($1,270 - $730). Because of this difference, management is considering phasing out the Royale model and increasing the production of the Majestic model. Before finalizing its decision, management asks Schultz's controller to prepare an analysis using activity-based costing (ABC). The controller accumulates the following information about overhead for the year ended December 31, 2017.
Activity Cost Pools Cost Drivers Estimated Overhead Expected Use of Cost Drivers Activity-Based Overhead Rate
Purchasing Number of orders $1,261,700 40,700 $31/order
Machine setups Number of setups 874,120 16,810 $52/setup
Machining Machine hours 5,440,500 120,900 $45/hour
Quality control Number of inspections 872,900 30,100 $29/inspection
The cost drivers used for each product were:
Cost Drivers Royale Majestic Total
Purchase orders 17,600 23,100 40,700
Machine setups 14,510 2,300 16,810
Machine hours 75,300 45,600 120,900
Inspections 11,900 18,200 30,100
Assign the total 2017 manufacturing overhead costs to the two products using activity-based costing (ABC) and determine the overhead cost per unit. (Round cost per unit to 2 decimal places, e.g. 12.25.)
Required:
Calculate cost per unit of each model using ABC costing.
Answer:
Schultz Electronics
Royale Majestic
Cost per unit cost $971.35 $841.55
Explanation:
a) Data and Calculations:
Information about overhead for the year ended December 31, 2017.
Activity Cost Cost Drivers Estimated Expected Use Activity-Based
Pools Overhead of Cost Drivers O/H Rate
Purchasing No. of orders $1,261,700 40,700 $31/order
Machine
setups No. of setups 874,120 16,810 $52/setup
Machining Machine hours 5,440,500 120,900 $45/hour
Quality Number of
control inspections 872,900 30,100 $29/inspection
Total overhead costs $8,449,220
The cost drivers used for each product were:
Cost Drivers Royale Majestic Total
Purchase orders 17,600 23,100 40,700
Machine setups 14,510 2,300 16,810
Machine hours 75,300 45,600 120,900
Inspections 11,900 18,200 30,100
Allocation of overhead costs:
Cost Drivers Royale Majestic Total
Purchasing $545,600 (17,600*$31) $716,100 (23,100 *$31) $1,261,700
Machine setup 754,520 (14,510*$52) 119,600 (2,300*$52) 874,120
Machining 3,388,500 (75,300*$45) 2,052,000 (45,600*$45) 5,440,500
Quality Control 345,100 (11,900*$29) 527,800 (18,200*$29) 872,900
Total $5,033,720 $3,415,500 $8,449,220
Quantity 25,000 10,000
Overhead per
unit $201.35 $341.55
Cost per unit of each model, using ABC Costing Technique:
Royale Majestic
Direct materials $650 $420
Direct labor ($20 per hour) 120 100
Manufacturing overhead 201.35 341.55
($42 per DLH)
Total per unit cost $971.35 $841.55
Actual manufacturing overhead costs are those amounts of overhead costs that are incurred by a firm during production processes.
What is the cost per unit of each model using ABC costing?
a) Calculations:-
The cost drivers used for each product were:-Cost Drivers Royale Majestic Total
Purchase orders 17,600 23,100 40,700
Machine setups 14,510 2,300 16,810
Machine hours 75,300 45,600 120,900
Inspections 11,900 18,200 30,100
Allocation of overhead costs:-Cost Drivers Royale Majestic
Purchasing $545,600 (17,600*$31) $716,100 (23,100 *$31) ($1,261,700)
Machine setup 754,520 (14,510*$52) 119,600 (2,300*$52) (874,120)
Machining 3,388,500 (75,300*$45) 2,052,000(45,600*$45) (5,440,500)
Quality Control 345,100 (11,900*$29) 527,800 (18,200*$29) (872,900)
Total $5,033,720 $3,415,500 ($8,449,220)
Quantity 25,000 10,000
Overhead per unit $201.35 $341.55
Cost per unit of each model, using ABC Costing Technique:-Royale Majestic
Direct materials $650 $420
Direct labor ($20 per hour) 120 100
Manufacturing overhead 201.35 341.55
($42 per DLH)
Total per unit cost $971.35 $841.55
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LeMans Company produces specialty papers at its Fox Run plant. At the beginning of June, the following information was supplied by its accountant:Direct materials inventory ..... $62,400Work-in-process inventory ..... 33,900Finished goods inventory ..... 55,600During June, direct labor cost was $143,000, direct materials purchases were $346,000, and the total overhead cost was $375,800. The inventories at the end of June were:Direct materials inventory ..... $63,000Work-in-process inventory ..... 37,500Finished goods inventory ..... 50,800Required:1. Prepare a cost of goods manufactured statement for June.2. Prepare a cost of goods sold schedule for June.
Answer and Explanation:
1. The preparation of the cost of goods manufactured statement as follows:
Statement of Cost of Goods Manufactured
Direct Material:
Beginning Raw material Inventory $62,400
Add: Cost of raw material purchased $346,000
Material available $408,400
Less: Ending Raw material inventory -$63,000
Direct Materials used in Production $345,400
Direct Labor Cost $143,000
Total overhead cost $375,800
Total Manufacturing cost added $864,200
Add: Opening Work in Progress $33,900
Less: Closing Work in Progress -$37,500
Cost of Goods manufactured $860,600
2. The preparation of a Cost of Goods Sold is presented below:
Statement of Cost of Goods Sold
Opening Finished goods inventory $55,600
Add: Cost of Goods manufactured $860,600
Total goods available for Sale $916,200
Less: Closing finished goods inventory -$50,800
Cost of Goods Sold $865,400
Record the December 31 adjusting entries for the following transactions and events in general journal form. Assume that December 31 is the end of the annual accounting period. (5 p.)
a. The Prepaid Insurance account shows a debit balance of $2,340, representing the cost of a two-year fire insurance policy that was purchased on October 1 of the current year and has not been adjusted to-date.
b. The Store Supplies account has a debit balance of $400; a year-end inventory count reveals $80 of supplies still on hand.
c. On November 1 of the current year, Unearned Rent was credited for $1,500 for a three-month rent period beginning Nov. 1.
d. Estimated depreciation on store equipment is $600.
e. Accrued salaries amount to $1,400.
Answer:
a.
Insurance expense $292.5 Dr
Prepaid Insurance $292.5 Cr
b.
Supplied expense $320 Dr
Supplies $320 Cr
c.
Unearned rent $1000 Dr
Rent Revenue $1000 Cr
d.
Depreciation expense $600 Dr
Accumulated depreciation - Equipment $600 Cr
e.
Salaries expense $1400 Dr
Salaries Payable $1400 Cr
Explanation:
a.
Insurance expense has been debited for three month period of current year from October to December. The insurance expense for 3 month period was
Insurance expense = 2340 * 3/24 = $292.5
b.
The supplies worth 400 - 80 = 320 have been used and should be recorded as a debit to supplies expense and a credit to supplies
c.
Rent for two months period worth 1500 * 2/3 = $1000 has been earned by the end of December and should be recorded as rent revenue and debit to unearned rent.
d.
The depreciation expense should be recorded.
e.
The salaries are payable and recorded as an expense and a liability to show that they are still payable
Who prepares, creates, and is solely accountable for the official Financial Statements of a publicly traded company
Inflation imposes many costs on the economy: shoe-leather costs, money illusion, menu costs, wealth redistribution, price confusion, future price level uncertainty, and tax distortions. For each of the following statements, determine the associated cost.
a. A jeweler observes the price of gold rise and wonders if there is a shortage of gold.
b. Carson is angry because the price of donuts increased from $1 to $2 since last week
c. Your grandmother's savings account pays 2% interest, but inflation is 5%.
d. The CEO of GM worries that his revenue received in the future won't cover the expenses he incurs today.
e. Jim is reluctant to sell his stocks at the end of the year.
f. John thinks his new salary in NYC will increase his standard of living
g. Kallie is taking more trips to ATM now that the post.
Categories:
1. Shoe leather cost
2. Money ilusion
3. Menu costs
4. Wealth redistribution
5. Price confusion
Answer:
Inflation Costs:
a. Price confusion
b. Menu costs
c. Wealth redistribution
d. Money illusion
e. Price confusion
f. Money illusion
g. Shoe leather cost.
Explanation:
Categories:
1. Shoe leather cost = costs of time and efforts spent on trying to negate the effects of inflation. People incur this cost by holding less cash while others make additional trips to the bank.
2. Money illusion costs = cost of calculating and comparing the rising costs triggered by inflation can cause changes in the nominal price to be mistaken for changes in the real price.
3. Menu costs = During inflation, more time and cost are incurred to effect the un-ending price changes.
4. Wealth redistribution costs: In trying to redistribute wealth, there are some associated costs and unintended leakages.
5. Price confusion costs: During inflation, the changes made in prices may not be determined as resulting from either inflation or increased demand.
Sheridan Company has $21000 of ending finished goods inventory as of December 31, 2019. If beginning finished goods inventory was $15000 and cost of goods sold was $50000, how much would Sheridan report for cost of goods manufactured
Answer:
$56,000
Explanation:
The computation of the cost of goods manufactured is shown below:
As we know that
Cost of goods sold = Opening finished goods inventory + cost of goods manufactured - ending finished goods inventory
$50,000 = $15,000 + cost of goods manufactured - $21,000
So, the cost of goods manufactured is
= $50000 + $6,000
= $56,000
Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business, these events and transactions occurred:
Apr.
1 Stockholders invested $18,000 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $375 per week, payable monthly.
2 Paid office rent for the month $900.
3 Purchased architectural supplies on account from Burmingham Company $1,300.
10 Completed blueprints on a carport and billed client $1,900 for services.
11 Received $700 cash advance from M. Jason to design a new home.
20 Received $2,800 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,500.
30 Paid $300 to Burmingham Company for accounts payable due.
Required:
Journalize the transactions.
Answer:
Apr. 1
Dr Cash 18000
Cr Common stock 18000
Apr. 1
No entry
Apr. 2
Dr Rent expense 900
Cr Cash 900
Apr. 3
Dr Supplies 1300
Cr Accounts payable 1300
Apr. 10
Dr Accounts receivable 1900
Cr Service revenue1900
Apr. 11
Dr Cash700
Cr Unearned service revenue700
Apr. 20
Dr Cash 2800
Cr Service revenue 2800
Apr. 30
Dr Salaries and wages expense 1500
Cr Cash1500
Apr. 30
Dr Accounts payable 300
Cr Cash300
Explanation:
Preparation of the journal entries
Apr. 1
Dr Cash 18000
Cr Common stock 18000
Apr. 1
No entry
Apr. 2
Dr Rent expense 900
Cr Cash 900
Apr. 3
Dr Supplies 1300
Cr Accounts payable 1300
Apr. 10
Dr Accounts receivable 1900
Cr Service revenue1900
Apr. 11
Dr Cash700
Cr Unearned service revenue700
Apr. 20
Dr Cash 2800
Cr Service revenue 2800
Apr. 30
Dr Salaries and wages expense 1500
Cr Cash1500
Apr. 30
Dr Accounts payable 300
Cr Cash300
The Osgood county refuse department runs two recycling centers. Center 1 costs $40 to run for an eight hour day. In a typical day, 140 pounds of glass and 60 pounds of aluminum are deposited at Center 1. Center 2 costs $50 for an eight hour day, with 100lbs of glass and 180lbs of aluminum deposited per day. The county has a commitment to deliver at least 1540lbs of glass and 1440lbs of aluminum per week. How many days per week should the county open each center to minimize its cost and still meet the requirements?
Answer:
Center 1 should be open 7 days a week, and center 2 should be open 6 days a week. Total cost = $580
Explanation:
minimize the following equation 40A + 50B
where:
A = center 1
B = center 2
constraints:
140A + 100B ≥ 1540
60A + 180B ≥ 1440
A ≤ 7
B ≤ 7
A, B ≥ 0
using Solver, the optimal solution is 7A + 6B = 580
The ___________ ____ __________ Endorsement area includes a variety of specialization areas within the world of work such as Agriculture, Food and Natural Resources; Architecture and Construction; Arts A/V Technology and Communications; Business Management and Administration; Marketing, Sales and Service; Finance, Hospitality and Tourism; Information Technology; Manufacturing and Transportation and Distribution.
a. Science, Technology, Engineering,m & Mathematics
b. Business & Industry
c. Arts & Humanities
d. Public Services
Answer:
b. Business & Industry
Explanation:
STEM (or Science, Technology, Engineering & Mathematics) includes different types of engineering, computer science, mathematics, and other fields.
Arts and humanities include archaeology, history, literature, philosophy, etc.
Public services include journalism, education, healthcare, teaching, etc.
Inventories: March 1 March 31 Raw material $18,000 $15,000 Work in process 9,000 6,000 Finished goods 27,000 36,000 Additional information for March: Raw material purchased $42,000 Direct labor payroll $30,000 Direct labor rate per hour $7.50 Overhead rate per direct labor hour $10.00 Refer to Crawford Enterprises. For March, conversion cost incurred was
Answer:
$118000
Explanation:
Calculation for conversion cost incurred
First step is to calculate the Prime Cost
Opening stock Of Raw Material $18000
Add: Material purchased $42000
Less: Closing stock of raw material ($15000)
Add: Direct Labour $30000
Prime Cost $75000
Now let calculate the conversion cost incurred
Prime cost $75000
Add: overhead expenses $40000
[($30000/ $7.50)**10]
( 4000 * $10=$40000)
Total $115000
($75000+$40000)
Add: opening work in progress $9000
Total $124000
($115000+$9000)
Less: Closing stock of work in progress ($6000)
Factory cost or conversion cost $118000
($124000-$6000)
Therefore For March, conversion cost incurred was $118,000
The following are the transactions of Spotlighter, Inc., for the month of January:
a. Borrowed $5,540 from a local bank on a note due in six months.
b. Received $6,230 cash from investors and issued common stock to them.
c. Purchased $2,600 in equipment, paying $1,000 cash and promising the rest on a note due in one year.
d. Paid $1,100 cash for supplies.
e. Bought and received $1,500 of supplies on account
Required:
Prepare a classified balance sheet for Spotlighter, Inc., as of January 31.
Answer:
Spotlighter Inc.
Classified Balance Sheet as at January 31
ASSETS
Equipment $2,600
Supplies ($1,100 + $1,500) $2,600
Cash ($5,540 + $6,230 - $1,000 - $1,100) $9,670
TOTAL ASSETS $14,870
EQUITY AND LIABILITIES
LIABILITIES
Accounts Payable $1,500
Bank note $5,540
Note Payable $1,600
TOTAL LIABILITIES $8,640
EQUITY
Common Stock $6,230
TOTAL EQUITY $6,230
TOTAL EQUITY AND LIABILITIES $14,870
Explanation:
A Balance Sheet shows the Assets, Liabilities and Equity existing at the Reporting Date.
The balance sheet above was prepared through the following steps
Step 1 : Identify the Accounts Affected by the transactions
Step 2: Classify the Accounts Affected in into Assets, Liabilities and Equity
Step 3: Record in the classified balance sheet
The Fisher equation tells us that the real interest rate approximately equals the nominal rate minus the inflation rate. Suppose the inflation rate increases from 3% to 5%. Does the Fisher equation imply that this increase will result in a fall in the real rate of interest
The Fisher equation does not imply that the increase in inflation will result in a fall in the real rate of interest.
The Fisher equation states the nominal interest rate in the sum of inflation rate and the real interest rate
(1 + nominal interest rate) = (1 + real interest rate) x (1 + inflation rate)
Based on the above equation, an increase in inflation rate would lead to a rise in the nominal interest rate. The real interest rate is taken as given in the equation and it is not affected by changes in inflation rate. If inflation rate increases from 3% to 5%, the nominal rate of interest would increase by about 2%.
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Identifying various components that are at higher risks and standardizing it.
a. In Toyota's case it was certain parts across Japanese automakers which was considered as a risk for revenue and disruption of production.
b. Toyota is now sourcing of engines and transmissions in the locally.
c. Toyota brought out fix solutions to the affected vehicles which took mass media and online tools for its advantage and also teams to monitor quality issues.
Answer:
a. Certain parts acquired from Japanese automakers are at lesser risk because the components are standardized.
b. Sourcing engines and transmissions locally is at higher risk as the company has gone toward customization which involves risks and the product will not be standardized.
c. This involves less risk and standardized.
Explanation:
The standardized components will create lesser risk to the company. When the company goes towards customization then there will be risk involved in the components as the customers might not accept the customized components and standardized feature might be more appreciated by the customers.
You are the creative director at a Milwaukee ad agency. Today, your copywriters are presenting you with their ideas for several 30-second radio spots for the City of Milwaukee Tourism Bureau, which wants to feature its own information center and tours, as well as city museums, art galleries, concerts, festivals, and special events. When they are ready, the best ideas will be taken to the marketing director at the City of Milwaukee for review and approval.(Scenario ) One copywriter shows you an idea that involves an announcer reading a "top ten" list of cool reasons to visit Milwaukee. What basic guidelines of radio copywriting does this technique address?a. Repeat the brand name.b. Stress the main selling points.c. Stimulate the imagination.d. Tailor copy to a time, place, and audience.
Answer:
City of Milwaukee Tourism Bureau
The basic guideline of radio copywriting that this technique addresses is:
b. Stress the main selling points.
Explanation:
Exploiting the city's selling points and communicating the benefits derivable from touring the city's museums, art galleries, concerts, festivals, and special events are the top guidelines for radio copywriting. Other guidelines will include focusing on the "you" and not "we," not providing too much information, and including a call for action.
An Indian Food Truck is considering a new tandoori oven in which to bake naan. Tandoor A can handle 22 naan in an hour. The fixed costs associated with commercial grade tandoori A are $ 2,000 and the variable costs are $1.00 per naan. Oven B is larger and can handle 44 naan per hour. However, neither oven should be left on all day. The fixed costs associated with tandoori B are $3,500 and the variable costs are $ .75 per naan. The naan sell for $3.00 each.
Required:
a. What is the breakeven point in for tandoori A and B?
b. Which tandoori should be chosen if it is expected to make thousands of naan each year?
Answer:
24 dollars
Explanation:
ΔABC ~ ΔEFD
is the pyramid change of the mathametical dad monet
a. The breakeven point for tandoori A and B is 1000 and 1556 respectively.
b. The tandoori B should be selected as it contains less variable cost.
a. The break-even point is
For tandoori A= 2,000 ÷($3 - $1)
= 1,000
For tandoori B= 3500 ÷ ($3 - $0.75)
= 1556
b.
The Point of indifference is
= (3500 - 2000) ÷ ($1 - $0.75)
= 6000
The following things should be considered:
For tandoori A, it contains a lesser fixed cost.For tandoori B, it contains lesser variable cost also it makes high yearly production.Therefore we can conclude that the tandoori B should be selected as it contains less variable cost.
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Identify the choice that best completes the statement.
Economic models:_______.
a. cannot be useful if they are based on false assumptions
b. were once thought to be useful, but that is no longer true.
c. must incorporate all aspects of the economy if they are to be useful.
d. can be useful, even if they are not particularly realistic.
Answer:
The correct answer is the option D: Can be useful, even if they are not particulary realistic.
Explanation:
To begin with, the economic models are believed to have been made decades ago by classical economists like Adam Smith and David Ricardo so that explains that nowadays there is a whole different context around the world and the economy of every country and about how those country see and treat they economics objectives so that means that even though that the models created years ago are not quite realistic nowadays and everything falls out when it comes to the real world and the practice, those models can be quite useful in order to understand how some things in the economy works.