Answer:
a. $508,000
b. $420,000
Explanation:
a. Assets = Equity + Liabilities
669,000 = Equity + 161,000
Equity = 669,000 - 161,000
Equity = $508,000
b. Assets = Equity + Liabilities
(669,000 - 127,000) = Equity + (161,000 - 39,000)
542,000 = Equity + 122,000
Equity = 542,000 - 122,000
= $420,000
22)
If the economy heads into a recession due to a global pandemic, which types of businesses would be less affected by a
decrease in consumer spending due to larger capital investments?
hlight
ime
maining
06:17
le Tools
A)
partnership
B)
corporation
sole trader
D)
sole proprietorship
E)
limited liability partnership
Answer:
A and B
Explanation:
Answer:
its A and B and D
Explanation:
i just took the quiz
The Board of Ursinus College in Pennsylvania raised its tuition and fees 17.6 percent to $23,460 in 2000. It subsequently received 200 more applications than the year before. The president of the college surmised that "applicants had apparently concluded that if the college cost more, it must be better." Other colleges that raised tuition to match rival colleges in recent years include University of Notre Dame, Bryn Mawr College, Rice University, and the University of Richmond. They also experienced an increase in applications. In contrast, North Carolina Wesleyan College lowered their tuition and fees about 10 years ago by 22 percent and attracted fewer students. The college president concluded that "it didn't work out the way it had been hoped. People don't want cheap."
You are hired as a consultant to a President of a liberal arts college in the East. You are asked to evaluate a recommendation by the college's Admissions Director. Susan Hansen, to increase tuition and to reduce financial aid to students. Susan argues that the data from competing colleges suggest that the demand curves for colleges slope upward-the quantity demanded increases with price. Susan projects that the increase in tuition and reduction in financial aid will solve the school's financial problems. Last year, the college enrolled 400 new students who each paid an effective tuition of $15,000 (after financial aid), totaling $6,000,000. She projects that with the increased demand from charging an effective tuition of $25,000, the college will be able to enroll 600 new students (of equal or better quality), totaling $15,000,000.
Required:
Evaluate Susan's analysis and recommendation
Solution :
The demand curve : The quantity demanded for each price
[tex]$D=Q(P)$[/tex]
The prices goes up, quantity demanded will decreases.
The price goes up, quantity demanded will increase
Board of the Ursinus College in Pennsylvania raised tuition fees : $ 23,460 which is 17.6 % more to 2000.
The applicants : 200 more from previous year.
Therefore the college cost most, then it must be better.
Other rival competitions have also seen same scenarios. When cost goes down, the demand decreases.
Susan's perceptive :
Demand increases with cost increase and the demand curve slopes upwards.
Our understanding is completely different with the understanding of the college administrative officer, Susan.
Our understanding is negative slope of the demand curve other than change in price of any other parameter will lead to shift in demand curve, either in or out.
If all the tuitions fees are increased, then financial aid needs to be sponsored by the 'state'. That will effect reserves which leads to the failure of the sole purpose of aids.
Our recommendation should be to tell the board members the long term effects of the increase in the tuitions fees and no financial aid will create.
is it possible for a company to be too liquid
Answer:
yes it is possible ......
Answer:
A company can have too much liquidity, which may be a sign that it's holding onto cash that could be invested. In a sense, even borrowing money is another typical source of liquidity for businesses. To meet its obligations, the ability to take out loans will be a factor in its liquidity.
Explanation:
Journalize the following transactions for the Evans Company. Assume the company uses a perpetual inventory system.
a. Sold merchandise for $645 cash. The cost of goods sold was $375.
b. Sold merchandise for $432 and accepted VISA as the form of payment. The cost of goods sold was $195.
c. Sold merchandise on account for $670. The cost of goods sold was $438.
d. Paid credit card fees for the month of $85.If an amount box does not require an entry, leave it blank.
Answer:
Evans Company
General Journal
Part a.
Debit : Cash $645
Debit : Cost of goods sold $375
Credit : Sales Revenue $645
Credit : Merchandise $375
Part b.
Debit : Cash $432
Debit : Cost of goods sold $195
Credit : Sales Revenue $432
Credit : Merchandise $195
Part c.
Debit : Accounts Receivable $670
Debit : Cost of goods sold $438
Credit : Sales Revenue $670
Credit : Merchandise $438
Part d.
Debit : Credit Card fees $85
Credit : Cash $85
Explanation:
The Perpetual inventory system calculates the cost of sale and inventory balance on each and every sale made hence the journals above.
What is the most important change this student should make to her profile as she begins to apply to college?
(A)She should list the address for her high school.
(B)She should tell more about her summer experiences.
(C)She should describe her plans for her social life in greater detail.
(D)She should place less emphasis on partying and tell more about her future intentions.
Answer:
D
Explanation:
ong fam
Answer:
The other person is right.
Explanation:
The tiny isolationist nations of Lorland and Zhangia are considering opening their borders to trade with each other. Both nations produce only two goods: smoothies and sandals. Currently, a worker in Lorland can produce 2 smoothies per day or 8 sandals per day, while a worker in Zhangia can produce 1 smoothie per day or 5 sandals per day. Using this information, please match each nation and good to the most accurate description.
Write each item to its matching item .
a. the nation that will specialize in producing smoothies once trading begins
b. the nation that will specialize in producing sandals once trading begins
c. the good that Lorland will import from Zhangia after trading begins
d. the good that Lorland will export to Zhangia after trading begins
Zhangia Sandals Smoothies Lorland
Answer:
Lorland
Zhangia
sandals
smoothies
Explanation:
A country should specialise goods for which it has a comparative advantage in its production.
A country should import goods for which it has no comparative advantage in its production.
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
Lorland
Opportunity cost in the production of one smoothie = 8/2 = 4
Opportunity cost in the production of one sandal = 2/8 = 0.25
Zhangia
Opportunity cost in the production of one smoothie = 5/1 = 5
Opportunity cost in the production of one sandal = 1/5 = 0.2
Zhangia has a comparative advantage inn the production of sandals and should specialise in the production of sandals while lorland has a comparative advantage in the production of smoothies specialise in the production of smoothies
Loriland should import sandals and export smoothies
Assume the perpetual inventory method is used:
a. Green Company purchased merchandise inventory that cost $16,800 under terms of 2/10, n/30 and FOB shipping point.
b. Green Company paid freight cost of $680 to have the merchandise delivered.
c. Payment was made to the supplier on the inventory within 10 days.
d. All of the merchandise was sold to customers for $25,100 cash and delivered under terms FOB destination with freight cost amounting to $480.
The gross margin from these transactions of Green Company is:________
Answer:
Gross margin = $8156
Explanation:
Formula for gross margin is given by;
Gross margin = Revenue - Cost of goods sold
where,
Revenue = $25100
Cost of goods sold = (cost of Purchase × ( 1 - Discount rate)) + freight cost
Thus;
Cost of goods sold = $16800 - (16800 × 0.02)) + $480
Cost of goods sold = $16944
Thus;
Gross margin = $25100 - $16944
Gross margin = $8156
Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $630 were declared at the end of the year, and 590 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,910 in cash for a total at the end of the year of 810 shares). These effects are included below
Cash Catena's Marketing Company Adjusted Trial Balance End of the Current Year
Debit Credit
Cash $ 1,370
Accounts receivable 2,230
Interest receivable 170
Prepaid insurance 1,620
Long-term notes
receivable 2,890
Equipment 15,700
Accumulated depreciation $ 3.060
Accounts payable 2,400
Dividends payable 630
Accrued expenses payable 3,740
Income taxes payable 2,640
Unearned rent revenue 430
Common Stock (810 shares) 81
Additional paid in capital 3.589
Retained earnings 1,870
Sales revenue 38,780
Interest revenue 150
Rent revenue 760
Wages expense 20,700
Depreciation expense 1,700
Utilities expense
Insurance expense 760
Rent expense 7,880
Income tax expense 2,780
Total $58,130 $58,130
Prepare the closing entry at the end of the current year, (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
On April 1, 2020, Rasheed Company assigns $400,000 of its accounts receivable to the Third National Bank as collateral for a $200,000 loan due July 1, 2020. The assignment agreement calls for Rasheed to continue to collect the receivables. Third National Bank assesses a fi nance charge of 2% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type).
Required:
a. Prepare the April 1, 2020, journal entry for Rasheed Company.
b. Prepare the journal entry for Rasheed's collection of $350,000 of the accounts receivable during the period from April 1, 2014, through June 30, 2020.
c. On July 1, 2020, Rasheed paid Third National all that was due from the loan it secured on April 1, 2020. Prepare the journal entry to record this payment.
Answer:
1. Dr Cash 192,000
Dr Finance charge 8,000
Cr Notes payable 200,000
2. Dr Cash 350,000
Cr Accounts receivable 350,000
3. Dr Notes payable 200,000
Dr Interest expense 5,000
Cr Cash 205,000
Explanation:
A. Preparation of the April 1, 2020, journal entry for Rasheed Company.
Dr Cash 192,000
(200,000-8,000)
Dr Finance charge 8,000
(2%*400,000)
Cr Notes payable 200,000
B. Preparation of the journal entry for Rasheed's collection of the amount of $350,000 of the accounts receivable
Dr Cash 350,000
Cr Accounts receivable 350,000
C) Preparation of the journal entry to record all the amount that was due from the loan it secured on April 1, 2020
Dr Notes payable 200,000
Dr Interest expense 5,000
(10%*$200,000*3/12)
Cr Cash 205,000
(200,000+5,000)
Mrs Blake is paid a weekly wage of $248. During a certain week she worked 5 hours
overtime. Her total wages were $285.50.
Calculate
her overtime wages
(2 marks)
(11)
the overtime rate of pay.
2 marks)p
285.50 -
248.00
037.50
A) 37.50 Dollars
B) $7.50 per hour overtime
37.50÷5
5_/37.50
07.50
Riverside Oil Company in eastern Kentucky produces regular and supreme gasoline. Each barrel of regular sells for $21 and must have an octane rating of at least 90. Each barrel of supreme sells for $25 and must have an octane rating of at least 97. Each of these types of gasoline are manufactured by mixing different quantities of the following three inputs:
Input Cost per Barrel Octane Rating Barrels Available in (1000s)
1 $17.25 100 150
2 $15.75 87 350
3 $17.75 110 300
Riverside has orders for 300,000 barrels of regular and 450,000 barrels of supreme. How should the company allocate the available inputs to the production of regular and supreme gasoline to maximize profits?
a. Formulate and LP model for this problem.
b. What is the optimal solution?
Solution :
Here,
[tex]$X_{iR}$[/tex] = the number of the barrels mixed i to manufacture the regular gasoline
[tex]$X_{iS}$[/tex] = the number of the barrels mixed i to manufacture the supreme gasoline.
The [tex]$\text{selling price}$[/tex] of each of the barrel of both gasoline is [tex]$\$ 21$[/tex] and [tex]$\$25$[/tex]. So the total [tex]$\text{selling price}$[/tex] of both types of gasoline is represented by :
[tex]$21 \times \sum X_{iR} +25 \times \sum X_{iS}$[/tex]
The cost prices of one barrel of the three types of input are 17.25, 1575 and 17.75.
So the total price is represented by :
[tex]$17.25 \times (X_{iR}+X_{iS})+15.75 \times (X_{2R}+X_{2S})+17.75 \times (X_{3R}+X_{3S})$[/tex]
The company wants to increase the profit. So maximize objective function will be used.
Max Z = [tex]$(21. \times \sum X_{iR} +24 \times \sum X_{iS})-[17.25 \times (X_{iR}+X_{iS})+17.75 \times (X_{2R}+X_{2S})+17.75 \times (X_{3R}+X_{3S})]$[/tex]The company has 150,000 barrels of input 1 available. So,
[tex]$X_{1R}+ X_{1S} \leq 150,000$[/tex]
[tex]$X_{2R}+ X_{2S} \leq 350,000$[/tex]
[tex]$X_{3R}+ X_{3S} \leq 300,000$[/tex]
The company got an order to sell 300,000 barrels of regular and 450,000 barrels of supreme gasoline. So,
[tex]$X_{1R}+X_{2R}+X_{3R} = 300,000$[/tex]
[tex]$X_{1S}+X_{2S}+X_{3S} = 450,000$[/tex]
The company wishes the regular gasoline to have octane number of at least 90. So,
[tex]$\frac{100 \times X_{1R}+87 \times X_{2R} +10 \times X_{3R}}{\sum X_{iR}}\geq 90$[/tex]
The company wishes the supreme gasoline to have octane number of at least 97. So,
[tex]$\frac{100 \times X_{1S}+87 \times X_{2S} +10 \times X_{3S}}{\sum X_{iR}}\geq 97$[/tex]
Formulating the LP model :
Max :
[tex]$[21 \times \sum X_{iR}+25 \times \sum X_{iS}]$[/tex] [tex]$-[17.25 \times (X_{1R}+X_{1S})+15.75 \times (X_{2R}+X_{2S})+17.75 \times (X_{3R}+X_{3S})]$[/tex]
Subject to :
[tex]$X_{1R}+ X_{1S} \leq 150,000$[/tex]
[tex]$X_{2R}+ X_{2S} \leq 350,000$[/tex]
[tex]$X_{3R}+ X_{3S} \leq 300,000$[/tex]
Also,
[tex]$X_{1R}+X_{2R}+X_{3R} = 300,000$[/tex]
[tex]$X_{1S}+X_{2S}+X_{3S} = 450,000$[/tex]
[tex]$\frac{100 \times X_{1R}+87 \times X_{2R} +10 \times X_{3R}}{\sum X_{iR}}\geq 90$[/tex]
[tex]$\frac{100 \times X_{1S}+87 \times X_{2S} +10 \times X_{3S}}{\sum X_{iR}}\geq 97$[/tex]
Deb has found it very difficult to repay her... Deb has found it very difficult to repay her loans. Because of these difficulties, the bank decided to forgive one of her most recent loans, an amount of $91,000. After the loan was discharged, Deb had total assets of $247,000 and her remaining loans totaled $239,000. What amount must Deb include in her gross income
Answer: $8000
Explanation:
The following information can be gotten from the question:
Total assets = $247000
Remaining loans = $239000
The amount that Deb must include in her gross income will be the difference between the total assets and the remaining loans which will be:
= $247000 - $239000
= $8000
=
Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable.
Payment Cash Payment Effective Interest Decrease in balance Outstanding Balance
87,867
1 13,000 13,000 74,867
2 13,000 7,487 5,513 69,354
3 13,000 6,935 6,065 63,289
4 13,000 6,329 6,671 56,618
5 13,000 5,662 7,338 49,280
6 13,000 4,928 8,072 41,208
7 13,000 4,121 8,879 32,329
8 13,000 3,233 9,767 22,562
9 13,000 ? ? ?
10 13,000 ? ? ?
Required:
a. What is the effective annual interest rate?
b. What would the lessee record as annual amortization on the right-of-use asset using the straight-line method?
c. What is the outstanding balance after payment 9?
Answer:
Lease Amortization Schedule
a. The effective annual interest rate is:
= 10%.
b. The amount that the lessee would record as annual amortization on the right-of-use asset using the straight-line method is:
= $8,786.70
c. The outstanding balance after payment 9 is:
= $11,818.
Explanation:
a) Data and Calculations:
Payment Cash Payment Effective Decrease Outstanding
Interest in balance Balance
87,867
1 13,000 13,000 74,867
2 13,000 7,487 5,513 69,354
3 13,000 6,935 6,065 63,289
4 13,000 6,329 6,671 56,618
5 13,000 5,662 7,338 49,280
6 13,000 4,928 8,072 41,208
7 13,000 4,121 8,879 32,329
8 13,000 3,233 9,767 22,562
9 13,000 2,256 10,744 11,818
10 13,000 1,182 11,818 0
b) The effective annual interest rate = (1+i/n)^n - 1
where i = stated interest rate
and n = number of compounding periods (10 years)
= Effective interest/Outstanding balance
For example for year 10, the rate = $1,182/$11,818 * 100 = 10%
Using the straight-line method, annual amortization on the right-of-use asset = $87,867/10 = $8,786.70
The outstanding balance after payment 9 = $11,818 which is paid in year 10 with an interest of $1,182.
Because testing of nuclear bombs was halted internationally in 1992, the Department of Energy has developed a laser system that allows engineers to simulate (in a laboratory) conditions in a thermo-nuclear reaction. Due to soaring cost overruns, a congressional committee undertook an investigation and discovered that the estimated development cost of the project increased at an average rate of 2% per six-months over a 5-year period. If the original cost was estimated to be $3.1 billion 5 years ago, what is the expected cost today?
Answer:
The estimated development cost of the project will increase from the original cost of $3.1 billion 5 years ago to $3.7727 billion today.
Explanation:
Data and Calculations:
Original estimated development cost = $3.1 billion
Average rate of interest = 2% per six months or 4% per year (2 * 2%)
Period of project = 5 years using 4% or 10 using 2%
Using a future value factor of 1.217 from a future value table at 4% per year for 5 years:
The expected cost today = $3.1 billion * 1.217 = $3.7727 billion
Using an online financial calculator:
Results:
FV = $3,778,882,701.98
Total Interest $678,882,701.98
N (# of periods) 10
I/Y (Interest per year) 4
PV (Present Value) $3,100,000,000
PMT (Periodic Payment) 0
Settings
P/Y (# of periods per year) 2
C/Y (# of times interest compound per year) 2
Pearl Corporation reported net income of $49,100 in 2020. Depreciation expense was $17,200. The following working capital accounts changed.
Accounts receivable $11,200 increase
Available-for-sale debt securities 16,900 increase
Inventory 7,300 increase
Nontrade note payable 14,400 decrease
Accounts payable 13,300 increase
Required:
Compute net cash provided by operating activities. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer:
Net operating cash flow $68,300
Explanation:
Operating cash flow is the amount of cash generated by a company from its main and normal business activity. This cash flow is useful to gauge the financial viability of a firm's business activity; the larger the better.
It is essentially computed as the net movement of cash inflow and outflow in respect of a business activities.
It is computed as follows:
$
Net income 49,000
Add deprecation 17,200
Less increase in receivable (11.200)
add increase in payables 13,300
Net operating cash flow 68,300
Note that only items that relate to trading which is the core business area of the Pearl Corporation are considered. Depreciation is added because it is a non-cash item initially deducted from net income.
An increase in receivable means a reduction in cash while an increase in payables implies cash savings
Net operating cash flow $68,300
Wildhorse Warehouse distributes hardback books to retail stores and extends credit terms of 4/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred. June 1 Purchased books on account for $2,265 (including freight) from Catlin Publishers, terms 4/10, n/30. 3 Sold books on account to Garfunkel Bookstore for $1,400. The cost of the merchandise sold was $800. 6 Received $65 credit for books returned to Catlin Publishers. 9 Paid Catlin Publishers in full. 15 Received payment in full from Garfunkel Bookstore. 17 Sold books on account to Bell Tower for $1,000, terms of 4/10, n/30. The cost of the merchandise sold was $850. 20 Purchased books on account for $800 from Priceless Book Publishers, terms 3/15, n/30. 24 Received payment in full, less discount from Bell Tower. 26 Paid Priceless Book Publishers in full. 28 Sold books on account to General Bookstore for $2,950. The cost of the merchandise sold was $830. 30 Granted General Bookstore $120 credit for books returned costing $60. Journalize the transactions for the month of June for Wildhorse Warehouse, using a perpetual inventor
Answer:
Wildhorse Warehouse
Journal Entries:
June 1: Debit Inventory $2,265
Credit Accounts payable (Catlin Publishers) $2,265
To record the purchase of goods on account, terms 4/10, n/30.
June 3: Debit Accounts receivable (Garfunkel Bookstore) $1,400
Credit Sales Revenue $1,400
To record the sale of goods on account.
June 3: Debit Cost of goods sold $800
Credit Inventory $800
To record the cost of goods sold.
June 6: Debit Accounts payable (Catlin Publishers) $65
Credit Inventory $65
To record the return of goods on account.
June 9: Debit Accounts payable (Catlin Publishers) $2,200
Credit Cash $2,112
Credit Cash Discounts $88
To record the payment on account.
June 15: Debit Cash $1,400
Credit Accounts receivable (Garfunkel Bookstore) $1,400
To record the receipt of cash on account.
June 17: Debit Accounts receivable (Bell Tower) $1,000
Credit Sales Revenue $1,000
To record the sale of goods on account.
June 17: Debit Cost of goods sold $850
Credit Inventory $850
To record the cost of goods sold.
June 20: Debit Inventory $800
Credit Accounts payable (Priceless Book Publishers) $800
To record the purchase of goods on account, terms 3/15, n/30.
June 24: Debit Cash $960
Debit Cash Discounts $40
Credit Accounts receivable (Bell Tower) $1,000
To record the receipt of cash on account.
June 26: Debit Accounts payable (Priceless Book Publishers) $800
Credit Cash $776
Credit Cash Discounts $24
To record the payment on account.
June 28: Debit Accounts receivable (General Bookstore) $2,950
Credit Sales Revenue $2,950
To receive the sale of goods on account.
June 28: Debit Cost of goods sold $830
Credit Inventory $830
To record the cost of goods sold.
June 30: Debit Sales Return $120
Credit Accounts receivable (General Bookstore) $120
To record the return of goods by a customer.
June 30: Inventory $60 Cost of Goods Sold $60
Explanation:
a) Data and Analysis:
Credit terms to all customers = 4/10, n/30. This means that 4% discount is allowed to customers who pay within 10 days. The credit period is for 30 days, after which the customer is expected to pay interest.
June 1: Inventory $2,265 Accounts payable (Catlin Publishers) $2,265; terms 4/10, n/30.
June 3: Accounts receivable (Garfunkel Bookstore) $1,400 Sales Revenue $1,400
June 3: Cost of goods sold $800 Inventory $800
June 6: Accounts payable (Catlin Publishers) $65 Inventory $65
June 9: Accounts payable (Catlin Publishers) $2,200 Cash $2,112 Cash Discounts $88.
June 15: Cash $1,400 Accounts receivable (Garfunkel Bookstore) $1,400
June 17: Accounts receivable (Bell Tower) $1,000 Sales Revenue $1,000
June 17: Cost of goods sold $850 Inventory $850
June 20: Inventory $800 Accounts payable (Priceless Book Publishers) $800; terms 3/15, n/30.
June 24: Cash $960 Cash Discounts $40 Accounts receivable (Bell Tower) $1,000
June 26: Accounts payable (Priceless Book Publishers) $800 Cash $776 Cash Discounts $24
June 28: Accounts receivable (General Bookstore) $2,950 Sales Revenue $2,950
June 28: Cost of goods sold $830 Inventory $830
June 30: Sales Return $120 Accounts receivable (General Bookstore) $120
June 30: Inventory $60 Cost of Goods Sold $60
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year:
A. Raw materials purchased for use in production, $295,000.
B. Raw materials requisitioned for use in production (all direct materials), $280,000.
C. Utility bills were incurred, $78,000 (95% related to factory operations, and the remainder related to selling and administrative activities).
D. Salary and wage costs were incurred:
Direct labor (890 hours) $325,000
Indirect labor $109,000
Selling and administrative salaries $205,000
E. Maintenance costs were incurred in the factory, $73,000.
F. Advertising costs were incurred, $155,000.
G. Depreciation was recorded for the year, $91,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment).
H. Rental cost incurred on buildings, $105,000 (85% related to factory operations, and the remainder related to selling and administrative facilities).
I. Manufacturing overhead cost was applied to jobs, $ ?.
J. Cost of goods manufactured for the year, $960,000.
K. Sales for the year (all on account) totaled $2,150,000. These goods cost $990,000 according to their job cost sheets.
The balances in the inventory accounts at the beginning of the year were:
Raw materials $49,000
Work in process $40,000
Finished Goods $79,000
Required:
1. Prepare journal entries to record the above data. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Post your entries to T-accounts. (Don’t forget to enter the opening inventory balances below.) Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account.
3. Prepare a schedule of cost of goods manufactured
4. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. Prepare a schedule of cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
5. Prepare an income statement for the year.
6. Job 412 was one of the many jobs started and completed during the year. The job required $9,900 in direct materials and 35 hours of direct labor time at a total direct labor cost of $10,800. If the job contained six units and the company billed at 60% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer?
Answer:
Froya Fabrikker A/S of Bergen, Norway
1. Journal Entries:
a. Debit Raw materials $295,000
Credit Cash $295,000
To record purchase of raw materials
b. Debit Work in Process $280,000
Credit Raw materials $280,000
To record direct materials requisitioned for production.
c. Debit Manufacturing overhead $74,100
Debit Selling and Admin. $3,900
Credit Utilities Expenses $78,000
To record utilities expense for manufacturing and selling and admin.
d. Debit Work in Process $325,000
Debit Manufacturing overhead $109,000
Debit Selling and Admin. $205,000
Credit Salary and Wages Expense $639,000
To record labor costs for production, etc.
e. Debit Manufacturing overhead $73,000
Credit Maintenance Expense $73,000
To record factory maintenance expense.
f. Debit Selling and Admin. $155,000
Credit Advertising Expense $155,000
Tor record advertising expense.
g. Debit Manufacturing overhead $72,800
Debit Selling and Admin. $18,200
Credit Depreciation Expense $91,000
To record depreciation expense for production and selling and admin.
h. Debit Manufacturing overhead $89,250
Debit Selling and Admin $15,750
Credit Rent Expense $105,000
Rent expense for the year.
i. Debit Work in Process $326,000
Credit Manufacturing overhead $326,000
To apply overhead to production.
j. Debit Finished Goods $960,000
Credit Work in Process $960,000
To transfer completed jobs to finished goods inventory.
k. Debit Account Receivable $2,150,000
Credit Sales Revenue $2,150,000
To record the sale of goods on account.
k. Debit Cost of Goods Sold $990,000
Credit Finished Goods $990,000
To record the cost of goods sold.
2. T-accounts
Raw materials
Account Titles Debit Credit
Beginning Balance $49,000
Cash 295,000
Work in process $280,000
Ending balance 64,000
Work in process
Account Titles Debit Credit
Beginning Balance $40,000
Raw materials 280,000
Salaries and wages 325,000
Overhead 326,000
Finished Goods inventory $960,000
Ending balance 11,000
Finished Goods
Account Titles Debit Credit
Beginning Balance $79,000
Work in Process 960,000
Cost of goods sold $990,000
Ending balance 49,000
Cost of Goods Sold
Account Titles Debit Credit
Finished Goods $990,000
Underapplied overhead 92,150
Income Summary $1,082,150
Manufacturing Overhead
Account Titles Debit Credit
Utilities expense $74,100
Salaries and wages 109,000
Maintenance exp. 73,000
Depreciation exp. 72,800
Rent expense 89,250
Work in Process $326,000
Underapplied overhead 92,150
Totals $418,150 $418,150
Cash
Account Titles Debit Credit
Raw materials $295,000
Accounts receivable
Account Titles Debit Credit
Sales Revenue $2,150,000
Sales Revenue
Account Titles Debit Credit
Accounts receivable $2,150,000
Selling and Admin.
Account Titles Debit Credit
Utilities expense $3,900
Salaries and wages 205,000
Advertising expense 155,000
Depreciation exp. 18,200
Rent expense 15,750
3. Schedule of Cost of Goods Manufactured
Beginning WIP $40,000
Raw materials 280,000
Direct labor 325,000
Overhead 326,000
Total cost of production $971,000
Less ending WIP (11,000)
Cost of goods manufactured $960,000
4. Journal Entry to close Manufacturing Overhead to Cost of Goods Sold
Debit Cost of Goods Sold $92,150
Credit Manufacturing overhead $92,150
To close manufacturing overhead to cost of good of goods sold.
Schedule of Cost of Goods Sold
Finished Goods Inventory $960,000
Underapplied overhead 92,150
Total cost of goods sold $1,052,150
5. Income Statement for the year ended December 31
Sales Revenue $2,150,000
Cost of goods sold 1,052,150
Gross profit $1,097,850
Selling and Admin expenses:
Utilities expense $3,900
Salaries and wages 205,000
Advertising expense 155,000
Depreciation exp. 18,200
Rent expense 15,750
Total selling and admin. $397,850
Net Income $700,000
6. Job 412
Selling price per unit = $9,253
Explanation:
Estimated manufacturing overhead = $360,000
Estimated direct labor hours = 900
Predetermined overhead rate = $360,000/900 = $400 per DLH
Beginning Inventory Balances:
Raw materials $49,000
Work in process $40,000
Finished Goods $79,000
Job 412
Direct materials = $9,900
Direct labor hours = 35
Direct labor cost = $10,800
Applied overhead = $14,000 ($400 * 35)
Total cost = $34,700
Units in Job 412 = 6
Unit cost = $5,783 ($34,700/6)
Selling price = 60% markup
Surendra’s personal residence originally cost $340,000 (ignore land). After living in the house for five years, he converts it to rental property. At the date of conversion, the fair market value of the house is $320,000. As to the rental property, calculate Surendra’s basis for:________.
a. Loss.
b. Depreciation.
c. Gain.
d. Could Surendra have obtained better tax results if he had sold his personal residence for $320,000 to hold as rental property?
Answer:
a. Loss
The basis for Loss is the lower of the basis after it is adjusted for its new purpose or the fair market value.
Adjusted = $340,000
Fair market value = $320,000
Loss basis will therefore be the lower value of $320,000
b. Depreciation:
This is the same as the loss basis because the residence was converted from personal use to business use.
= $320,000
c. Gain
= Adjusted basis of the property
= $340,000
d. No.
Because he would be converting to rental property which is a business use, the loss that he would have incurred of $20,000 would have been disallowed and he wouldn't be able to deduct it.
Loss = Cost - fair value = 340,000 - 320,000 = $20,000
Cross-price elasticity of demand measures how a. the price of one good changes in response to a change in the price of another good. b. the quantity demanded of one good changes in response to a change in the quantity demanded of another good. c. strongly normal or inferior a good is. d. the quantity demanded of one good changes in response to a change in the price of another good
Answer:
d. the quantity demanded of one good changes in response to a change in the price of another good
Explanation:
Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If cross price elasticity of demand is positive, it means that the goods are substitute goods.
Substitute goods are goods that can be used in place of another good.
If the cross-price elasticity is negative, it means that the goods are complementary goods.
Complementary goods are goods that are consumed together
Example 1
If the percentage change in good A is 10% and the percentage change in quantity demanded of good B is -20%. Cross price elasticity = -20%/ 10% = -2. the goods are complementary goods
Example 2
If the percentage change in good A is 20% and the percentage change in quantity demanded of good B is 80%. Cross price elasticity = 80%/ 20% = 4. the goods are substitute goods goods
On January 1, 2021, The Barrett Company purchased merchandise from a supplier. Payment was a noninterestbearing note requiring five annual payments of $20,000 on each December 31 beginning on December 31, 2021, and a lump-sum payment of $100,000 on December 31, 2025. A 10% interest rate properly reflects the time value of money in this situation.Required:Calculate the amount at which Barrett should record the note payable and corresponding merchandise purchased on January 1, 2021.
Answer:
Barrett Company
The amount at which Barrett should record the note payable and corresponding merchandise purchased on January 1, 2021 is:
= $125,500.
Explanation:
a) Data and Calculations:
Non-interest-bearing note annual payment = $20,000
Date of annual payments = December 31
Lump sum payment on December 31, 2025 = $100,000
Interest rate reflecting the time value of money = 10%
The amount for the note payable and corresponding merchandise on January 1, 2021 is:
PV annuity factor for 4 years at 10% = 3.170
Total PV of annual payments = $63,400 ($20,000 * 3.170)
PV of lump-sum payment = 62,100 ($100,000 * 0.621)
Total PV of payments = $125,500
Marigold Corp. took a physical inventory on December 31 and determined that goods costing $155,000 were on hand. Not included in the physical count were $28,000 of goods purchased from Pelzer Corporation, FOB shipping point, and $21,800 of goods sold to Alvarez Company for $30,400, FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Marigold report as its December 31 inventory
Answer: $204,800
Explanation:
When a good is shipped FOB shipping point, it means that the buyer assumes responsibility for the goods as soon as the goods reach the place they will be shipped from. The purchase from Pelzer should therefore be included in inventory because it has already been shipped.
A good shipped FOB Destination means that the buyer only assumes responsibility after the goods have been delivered to them. As the sale to Alvarez was still in transit, it is still the responsibility of Marigold and should be included in inventory.
Inventory is therefore:
= 155,000 + 28,000 + 21,800
= $204,800
watch the video " the best stats youve ever seen " then answer the questions.
Answer:
thats a long video I'll pass
Jayden, the vice president of Boxco, is reviewing the development program for the company's middle managers. He notes that management development includes psychological profiles and mentors, as well as lateral moves to positions that give managers a broader view of the company. Jacob would like to add a component of formal education. Which option could be included in this new component? Question 124 options: on-the-job training in the basics of managers' current jobs workshops involving business games and simulations 360-degree feedback opportunities to sign up for sessions with a life coach a program of externships at local charities
Answer:
Opportunities to sign up for sessions with a life coach.
Explanation:
Since he wants to include psychological profiles as well as mentors in the program to raise efficiency. Jacob should use A life coach. A life coach can empower and help in setting and meeting goals. Increasing accountability accept for the personal growth of employee and also for career success.
In the middle level, accountability is important, a life coach would help you develop abilities in managerial duties, improve relationships, business goals.
Where will god show his lindings tgis will be a great amertica
Give me a couple countries that have a low and high quality of life index
Answer:
Countries with have mediocre quality of Life index: Puerto Rico, South Korea, Greece, Bulgaria, Romania
A bank has kept records of the checking balances of its customers and determined that the average daily balance of its customers is $300 with a standard deviation of $56. A random sample of 200 checking accounts is selected. You are interested in calculating the following probabilities below.1. Assuming that the population of the checking account balances is normally distributed, what is the probability that a randomly selected account has a balance of more than $305?2. What is the probability that the mean balance for the selected sample is above $295?3. What is the probability that the mean balance for the selected sample is below $290?4. What is the probability that the mean balance for the selected sample is between $302 and $304?
Answer:
1. P(X > 305) = $0.1038
2. P ( X > 295) = $0.8962
3. P ( X > 290) = $0.0057
4. P(302 < X < 304 ) = $0.1488
Explanation:
Solution:
Data Given:
Mean = u = $300
SD = Standard Deviation = $56
Sample Size = n = 200
uX = u = 300
SDX = [tex]\frac{SD}{\sqrt{n} }[/tex] = [tex]\frac{56}{\sqrt{200} }[/tex] = 3.96
1.
P(X > 305) = 1-P ([tex]\frac{X - uX}{SDX} < \frac{305 - 300}{3.96}[/tex])
P(X > 305) = 1-P (Z < 1.26)
Using Standard Normal Table, we have:
P(X > 305) = 1 - 0.8962
Probability = $0.1038
2.
P ( X > 295) = 1 - P ( [tex]\frac{X - uX }{SDX} < \frac{295 - 300}{3.96}[/tex] )
P ( X > 295) = 1 - P (Z< 1.26)
Using standard normal table, we have:
P ( X > 295) = 1 - 0.1038
P ( X > 295) = $0.8962
3.
P ( X > 290) = P ( [tex]\frac{X - uX }{SDX} < \frac{290 - 300}{3.96}[/tex] )
P ( X > 290) = P ( z< -2.53)
Using Standard normal table, we have:
P ( X > 290) = $0.0057
4.
P(302 < X < 304 ) = P ( [tex]\frac{302 - 300}{3.96} < \frac{X - uX}{SDX} < \frac{304 - 300}{3.96}[/tex] )
P(302 < X < 304 ) = P ( 0.51 < z < 1.01)
P(302 < X < 304 ) = P (z < 1.01) - P (z < 0.51)
P(302 < X < 304 ) = 0.8438 - 0.6950
P(302 < X < 304 ) = $0.1488
A congresswoman from a state with several semiconductor factories argues that the government should impose a tariff on semiconductors because they are a necessary input into the production of various weapons. Free trade, she contends, would make the United States overly dependent on foreign countries for the supply of semiconductors and thus, in case of war, unable to make enough weapons to defend itself. Which of the following justifications is the senator using to argue for the trade restriction on semiconductors?
a. Infant-industry argument
b. Using-protection-as-a-bargaining-chip argument
c. Jobs argument
d. Unfair-competition argument
e. National-security argument
Answer:
National-security argument
Explanation:
Governments may intervene in markets for any reason at all.
A tariff is simply known as a tax
that is imposed on imports. There are various reasons why trade is restricted for product or services. The different arguments for restricting trade includes:
1. jobs argument
2. national security argument
3. infant-industry argument
4. unfair-competition argument
5. protection-as-bargaining-chip argument
The national security argument state that industries or product important to national security should be protected from foreign competition and not allow to focus mainly on dependence on imports that could be scattered during wartime.
The National Security Response is said to be as good as long as we base policy on true security needs.
Natick Industries leased high-tech instruments from Framingham Leasing on January 1, 2021. Natick has the option to renew the lease at the end of two years for an additional three years. Natick is subject to a $45,000 penalty after two years if it fails to renew the lease. Framingham Leasing purchased the equipment from Waltham Machines at a cost of $250,177.
Related Information:
Lease term 2 years (8 quarterly periods)
Lease renewal option for an additional 3 years (12 quarterly periods)
Quarterly lease payments $11,000 at Jan. 1, 2021, and at Mar.
31, June 30, Sept. 30, and Dec. 31
thereafter
Economic life of asset 5 years
Interest rate charged by the lessor. 4%
Required:
Prepare appropriate entries for Natick Industries from the beginning of the lease through March 31, 2021. Appropriate adjusting entries are made quarterly.
Answer:
1-Jan-21
Dr Right- of-use asset $250,177
Cr Lease payable $250,177
1-Jan-21
Dr Lease payable $11,000
Cr Cash $11,000
31-Mar-21
Dr Interest expense $2,392
Dr Lease payable $8,608
Cr Cash $11,000
31-Mar-21
Dr Amortization expense $12,509
Cr Right-of-use asset $12,509
Explanation:
Preparation of the appropriate entries for Natick Industries from the beginning of the lease through March 31, 2021.
Journa Entry- Lease-Natick Industries
1-Jan-21
Dr Right- of-use asset
($11,000 * PVAF at 1%for 0-20)
($11000*22.74336) $250,177
Cr Lease payable $250,177
(To Record Lease at Inception)
1-Jan-21
Dr Lease payable $11,000
Cr Cash $11,000
(To Record First Lease Payment made)
31-Mar-21
Dr Interest expense
[($250,177 - 11000 )*1%] $2,392
Dr Lease payable $8,608
($11,000-$2,392)
Cr Cash $11,000
(To Record Second Lease Payment made)
31-Mar-21
Dr Amortization expense
($250,177/ 20) $12,509
Cr Right-of-use asset $12,509
(To Record Amortisation Expense)
The United States is said to have an absolute advantage in producing food compared with Japan. What does that mean?
It must import most of its food from Japan.
It produces food more efficiently than Japan.
It produces food at a higher cost than Japan.
It must export most of its food to Japan.
Answer:
It produces food more efficiently than Japan.
Explanation:
Given that an ABSOLUTE ADVANTAGE is when a country or company can produce the same quantity of goods more efficiently than another country or company with lesser input or produce more quantities of goods with more efficiently with the same input.
Hence, in this case, when it is said that the United States has an absolute advantage in producing food compared with Japan, it means that "It produces food more efficiently than Japan."
The correct answer would be B: It produces food more efficiently than Japan
Bonita Enterprises reported cost of goods sold for 2020 of $1,419,800 and retained earnings of $5,569,300 at December 31, 2020. Bonita later discovered that its ending inventories at December 31, 2019 and 2020, were overstated by $99,040 and $31,710, respectively. Determine the corrected amounts for 2020 cost of goods sold and December 31, 2020, retained earnings.
Answer:cost of goods sold in 2020 = $1,352,470
retained earnings in December 31, 2020 =$5,537,590
Explanation:
For cost of goods sold in 2020
Corrected cost of goods sold = Reported cost of goods sold in 2020 - overstated value of ending inventory in year 2019 + overstated value of ending inventory in year 2020
= $1,419,800 -$99,040+ $31,710,
= $1,352,470
For retained earnings in December 31, 2020
Corrected retained earnings == Reported retained earning in 2020 - overstated value of ending inventory in year 2020
= $5,569,300-$31,710
=$5,537,590