Answer:
See the journal entries below.
Explanation:
The transactions can be recorded as follows:
Ken Jones
Journal Entries of Transactions
For April 1, 20Y2
Event Account Tile and Explanation Debit ($) Credit ($)
a. Cash 48,200
Common Stock 48,200
(To record cash transferred in exchange for Common Stock.)
b. Automobile 31,000
Cash 7,200
Note payable 23,800
(To record purchase of used automobile.)
c(1). Rent expense 4,800
Cash 4,800
(To record office and workroom rent paid.)
c(2). Supplies 2,310
Cash 2,310
(To record cash paid for supplies.)
d. Office and computer equipment 9,600
Accounts payable 9,600
(To record office and computer equipment purchased on account.)
e(1.) Prepaid insurance 3,200
Cash 3,200
(To record annual insurance policies on automobile and equipment paid.)
e(2.) Insurance expense (3,200 /12) 267
Prepaid insurance 267
(To record insurance expense for April.)
f. Cash 12,100
Service fees revenue 12,100
(To record cash received from a client for plans delivered.)
g. Accounts payable 2,800
Cash 2,800
(To record cash paid to creditors on account.)
h. Miscellaneous expenses 375
Cash 375
(To record cash pad for miscellaneous expenses.)
j. Accounts receivable 8,300
Service fees revenue 8,300
(To record fees earned on plans delivered.)
k(1.) Salary expense 2,600
Cash 2,600
(To record salary of assistant paid.)
k(2.) Miscellaneous expenses 1,300
Cash 1,300
(To record cash paid for miscellaneous expenses.)
l. Note payable 390
Cash 390
(To record installment due on note payable paid.)
m. Gas, oil, and repairs expenses 630
Cash 630
(To record gas, oil, and repairs on automobile paid for April.)
Note: Transaction number i is not recorded because it does not relate to April but May. It will therefore be recorded in May 20Y2.
A change in quantity demanded is caused only by
A) price
B) a shift
C) Market
D) Income
Answer:
A change in quantity demanded is caused only by
A) price
B) a shift
C) Market
D) Income
The answer is Price(A)
Explanation:
Hope this helps :D
elisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Total Company Division L Division Q Sales $528,000 $142,000 $386,000 Variable expenses 319,460 72,420 247,040 Contribution margin 208,540 69,580 138,960 Traceable fixed expenses 109,920 29,400 80,520 Segment margin 98,620 $ 40,180 $ 58,440 Common fixed expenses 55,370 Net operating income $ 43,250 The break-even in sales dollars for Division Q is closest to:
Answer:
the break even point in sales dollars is $223,667
Explanation:
The computation of the break even point in sales dollars is shown below:
= Fixed cost ÷ contribution margin ratio
= $80,520 ÷ ($138,960 ÷ $386,000)
= $80,520 ÷ 36%
= $223,667
Hence, the break even point in sales dollars is $223,667
Baker Industriesâ net income is $23000, its interest expense is $6000, and its tax rate is 45%. Its notes payable equals $24000, long-term debt equals $80000, and common equity equals $250000. The firm finances with only debt and common equity, so it has no preferred stock.
Required:
What are the firmâs ROE and ROIC?
Answer:A) ROE=9.2%
B)ROIC =7.43%
Explanation:
Given that
Net income = $23,000 ,
Interest expense = $6000 ,
Tax rate = 45%
Notes payable = $24,000 ,
Longterm debt = $80,000 ,
Common equity = $250,000
A) ROE is calculated as Net income/ Common equity
= 23000/250,000 = 0.092= 9.2%
B.) ROIC = EBIT X (1- Tax rate ) / Invested capital
So we have that Net income before Tax = Net Income X 100/ 100-tax rate
23000x 100 /100-45
2300000/55
=$41,818.18
So that EBIT becomes = Net income before tax + Interest
= $41,818.18 + 6000 = $47,818.18
And
Invested capital = Notes payable + Longterm debt + Common equity
= 24,000+80,000+250,000
=$354,000
Therefore, ROIC = EBIT X (1- Tax rate ) / Invested capital
$47,818.18 X(1-0.45)/354,000
$47,818.18 x 0.55 / 354000
26,299.999/354,000
=0.07429
=7.429%
Rounding up becomes =7.43%
Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying and requires an interest rate implicit in the lease that is one percent below alternate methods of financing. On September 30, 2021, the company leased a delivery truck to a local florist, Anything Grows.
The lease agreement specified quarterly payments of $3,000 beginning September 30, 2019, the inception of the lease, and each quarter (December 31, March 31, and June 30) through June 30, 2021 (three-year lease term). The florist had the option to purchase the truck on September 29, 2011, for $6,000 when it was expected to have a residual value of $10,000.
The estimated useful life of the truck is four years. Mid-South Auto Leasing's quarterly interest rate for determining payments was 3% (approximately 12% annually). Mid-South paid $25,000 for the truck. Both companies use straight-line depreciation. Anything Grows' incremental interest rate is 12%.
Required:
a. Calculate the amount of dealer's profit that Mid-South would recognize in this sales-type lease. (Be careful to note that, although payments occur on the last calendar day of each quarter, since the first payment was at the inception of the lease, payments represent an annuity due.)
b. Prepare the appropriate entries for Anything Grows and Mid-South on September 30, 2019.
c. Prepare an amortization schedule(s) describing the pattern of interest expense for Anything Grows and interest revenue for Mid-South Auto Leasing over the lease term.
d. Prepare the appropriate entries for Anything Grows and Mid-South Auto Leasing on December 31, 2019.
e. Prepare the appropriate entries for Anything Grows and Mid-South on September 29, 2019, assuming the bargain purchase option was exercised on that date.
Answer:
A) sales revenue 26,569.40
B)
cash 3,000 debit
lease receivables 23,569.40 debit
sales revenues 26,569.40 credit
COGS 25,000 debit
Truck Inventory 25,000 credit
--entries for the lessor--
truck 26,569.40 debit
cash 3,000 credit
lease payable 23,569.40 credit
C)
[tex]\left[\begin{array}{cccccc}$Time&$Beg&$Cuota&$Interes&$Amort&$Ending\\0&26569.4&3000&&3000&23569.4\\1&23569.4&3000&707.08&2292.92&21276.48\\2&21276.48&3000&638.29&2361.71&18914.77\\3&18914.77&3000&567.44&2432.56&16482.21\\4&16482.21&3000&494.47&2505.53&13976.68\\5&13976.68&3000&419.3&2580.7&11395.98\\6&11395.98&3000&341.88&2658.12&8737.86\\7&8737.86&9000&262.14&8737.86&0\end{array}\right][/tex]
For the lessor, the interest will be revenue.
For the lessee, the interest will be an expense
D)
cash 3,000 debit
lease receivable 2,292.92 credit
interest revenue 707.08 credit
--entry for the lessor---
lease payable 2,292.92 debit
interest expense 707.08 debit
cash 3,000 credit
--entry for the lessee--
E)
cash 9,000 debit
lease receivable 8,737.86 credit
interest revenue 262.14 credit
--entry for the lessor---
lease payable 8,737.86 debit
interest expense 262.14 debit
cash 9,000 credit
--entry for the lessee--
Explanation:
1) The sales revenue will be the present value of the future payment.
Present Value of Annuity
[tex]C \times \displaystyle \frac{1-(1+r)^{-time} }{rate}(1+rate) = PV\\[/tex]
C 3,000
time 8
rate 0.03
[tex]3000 \times \displaystyle \frac{1-(1+0.03)^{-8} }{0.03}(1+0.03) = PV\\[/tex]
PV $21,690.8489
PRESENT VALUE OF LUMP SUM
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 6,000.00
time 7.00
rate 0.03
[tex]\frac{6000}{(1 + 0.03)^{7} } = PV[/tex]
PV 4,878.55
Sales revenue: 21,690.85 + 4,878.55 = 26,569.40
journal entries explanation:
we debit cash for the lessor as it is receiving it.
we credit cash for the lessee as it is paying with cash.
the lease receivables will be credited when the lessor collects from the lessee as it is a decreasing asset
Lease payables will be debited as payments are made because, the obligation to pay decreases.
For the borrower the interest is revenue. For the lessee the interest represents expense
g Profit margins tend to peak during the growth stage of the Product Life Cycle. This is due to ___________________.this being the stage with the most intense competitionthe fact that companies don't spend on advertising in this stagedeclining unit manufacturing costs while prices can remain highthe fact that sales volumes are starting to declineprices tend to be the lowest in this stage
Answer:
Declining unit manufacturing costs while prices can remain high.
Explanation:
A product life cycle can be defined as the stages or phases that a particular product passes through, from the period it was introduced into the market to the period when it is eventually removed from the market.
Generally, there are four (4) stages in the product-life cycle;
1. Introduction.
2. Growth.
3. Maturity.
4. Decline.
Generally, the growth stage is the stage where the product gains acceptance from the consumer and there is a significant increase in demand and sales.
Profit margins tend to peak during the growth stage of the Product Life Cycle. This is due to declining unit manufacturing costs while prices can remain high because the product has been accepted in the market and its unit cost of production is lesser i.e they are manufactured in bulk.
You plan to retire in 28 years. You would like to maintain your current level of consumption which is $52,672 per year. You will need to have 30 years of consumption during your retirement. You can earn 5.03% per year (nominal terms) on your investments. In addition, you expect inflation to be 2.82% inflation per year, from now and through your retirement. How much do you have to invest each year, starting next year, for 13 years, in nominal terms to just cover your retirement needs?
Answer:
The amount to invest each year for 13 years is $5,617.37.
Explanation:
This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = current level of consumption = $52,672
P = amount to invest each year = ?
r = annual nominal interest rate = 5.03%, or 0.0503
n = number of years = 13
Substituting the values into equation (1) and solve for n, we have:
$52,672 = P * ((1 - (1 / (1 + 0.0503))^13) / 0.0503)
$52,672 = P * 9.37662983027493
P = $52,672 / 9.37662983027493
P = $5,617.37
Therefore, the amount to invest each year for 13 years is $5,617.37.
Continent Construction Company is a building contractor specializing in small commercial buildings. The company has the opportunity to accept one of two jobs; it cannot accept both because they must be performed at the same time and Continent does not have the necessary labor force for both jobs. Indeed, it will be necessary to hire a new supervisor if either job is accepted. Furthermore, additional insurance will be required if either job is accepted. The revenue and costs associated with each job follow.
Cost Category Job A Job B
Contract price $800,000 $750,000
Unit—level materials 250,000 220,000
Unit—level labor 260,000 310,000
Unit—level overhead 40,000 30,000
Supervisor's salary 70,000 70,000
Rental equipment costs 26,000 29,000
Depreciation on tools (zero market value) 19,900 19,900
Allocated portion of companywide facility—sustaining costs 10,400 8,600
Insurance cost for job 18,200 18,200
Required
a. Assume that Continent has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. Recommend which job to accept.
b. Assume that Job A is no longer available. Continent's choice is to accept or reject Job B alone. Fill in the information relevant to this decision. Recommend whether to accept or reject Job B.
Answer:
1. Job A is considered for recommendation
2. Accept B
Explanation:
1. We calculate contribution for A and B
For job A
$(800000-250000-260000-40000-26000)
= $224000
For job B
$(750000-220000-310000-30000-29000)
= $161000
We compare the costs of both jobs. A has more contribution compared to B so we consider A.
2. A is no longer available
We add supervisors salary as well as insurance as additional costs
$(750000-220000-310000-30000-29000-70000-18200)
= 72800
The contribution from b is positive so the decision is to accept it.
Capital using technological process results in ____?
Capital-driven technological processes lead to creating new and innovative capital goods.
What are capital goods?Capital goods are the assets utilized by a production company while engaging in the manufacturing of goods.
When the technological process is driven by capital funds, then the company starts manufacturing innovative capital products which further increase its worth. This leads to a decline in the worth of capital goods that are already been present in the consumer market.
Therefore, the emergence of new capital products is being produced due to technological processes.
Learn more about the capital goods in the related link:
https://brainly.com/question/18849286
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The following trial balance was taken from the records of Fairport Manufacturing Company at the beginning of 2019:
Cash $ 20,000
Raw materials inventory 1,800
Work in process inventory 2,400
Finished goods inventory 4,200
Property, plant, and equipment 15,000
Accumulated depreciation $ 6,000
Common stock 16,800
Retained earnings 20,600
Total $ 43,400 $ 43,400
Transactions for the Accounting Period:
Fairport purchased $11,400 of direct raw materials and $600 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $10,800 of direct raw materials had been used for production during the period. The use of indirect materials is determined at the end of the year by physically counting the supplies on hand.
By the end of the year, $10,500 of the accounts payable had been paid in cash.
During the year, direct labor amounted to 950 hours recorded in the Wages Payable account at $21 per hour.
By the end of the year, $18,000 of wages payable had been paid in cash.
At the beginning of the year, the company expected overhead cost for the period to be $12,600 and 1,000 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which, as indicated in Event 3, amounted to 950 for the year.
Selling and administrative expenses for the year amounted to $1,800 paid in cash.
Utilities and rent for production facilities amounted to $9,300 paid in cash.
Depreciation on the plant and equipment used in production amounted to $3,000.
There was $24,000 of goods completed during the year.
There was $25,500 of finished goods inventory sold for $36,000 cash.
A count of the production supplies revealed a balance of $178 on hand at the end of the year.
Any over- or underapplied overhead is considered to be insignificant.
Required
a) Prepare T-accounts with the beginning balances shown in the preceding list and record all transactions for the year including closing entries in the T-accounts.
b) Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet.
Answer:
Fairport Manufacturing Company
T-accounts
Cash
Account Titles Debit Credit
Beginning balance $ 20,000
Accounts payable $10,500
Wages payable 18,000
Selling and distribution expense 1,800
Utilities and Rent for production 9,300
Sales Revenue 36,000
Ending balance $16,400
Raw materials inventory
Account Titles Debit Credit
Beginning balance $ 1,800
Accounts Payable 11,400
Work-in-Process $10,800
Ending balance $2,400
Work in process inventory
Account Titles Debit Credit
Beginning balance $ 2,400
Raw materials 10,800
Wages Payable 19,950
Overhead Applied 11,970
Finished Goods Inventory $24,000
Ending balance $21,120
Finished goods inventory
Account Titles Debit Credit
Beginning balance $ 4,200
Work-in-Process 24,000
Cost of goods sold $25,500
Ending balance $2,700
Property, plant, and equipment
Account Titles Debit Credit
Beginning balance $ 15,000
Accumulated depreciation
Account Titles Debit Credit
Beginning balance $ 6,000
Depreciation expense 3,000
Ending Balance $9,000
Accounts Payable
Account Titles Debit Credit
Raw materials $12,000
Cash $10,500
Ending balance $1,500
Wages Payable
Account Titles Debit Credit
Work-in-Process $19,950
Cash $18,000
Ending balance $1,950
Common stock
Account Titles Debit Credit
Beginning balance $ 16,800
Retained earnings
Account Titles Debit Credit
Beginning balance $ 20,600
Production Supplies
Account Titles Debit Credit
Accounts Payable $600
Overhead $422
Ending balance $178
Overhead Expenses
Account Titles Debit Credit
Work-in-Process $11,970
Cash (Utilities) 9,300
Depreciation expense 3,000
Production supplies 422
Cost of goods sold (Underapplied) 752
Sales Revenue
Account Titles Debit Credit
Cash $36,000
Income Summary $36,000
Cost of Goods Sold
Account Titles Debit Credit
Finished Goods Inventory $25,500
Overhead (underapplied) 752
Income Summary $26,252
Selling and Distribution Expense
Account Titles Debit Credit
Cash $1,800
Utilities and Rent
Account Titles Debit Credit
Cash $9,300
Overhead $9,300
Depreciation Expense - Plant & Equipment
Account Titles Debit Credit
Accumulated Depreciation $3,000
Overhead $3,000
b) Schedule of Cost of Goods Manufactured and Sold:
WIP Beginning Inventory $ 2,400
Raw materials 10,800
Direct labor 19,950
Overhead Applied 11,970
Cost of goods in production $45,120
Ending WIP Inventory 21,120
Cost of manufactured $24,000
Finished Goods Inventory $ 4,200
Cost of manufactured 24,000
Cost of goods available $28,200
Ending FG Inventory 2,700
Cost of goods sold $25,500
Income Statement for the year ended December 31, 2019:
Sales Revenue $36,000
Cost of Goods Sold 26,252
Gross profit 9,748
Selling and distribution exp. 1,800
Net income $7,948
Retained Earnings, January 1, 2019 $20,600
Net income 7,948
Retained Earnings, December 31, $28,548
Balance Sheet as of December 31, 2019:
Assets:
Cash $ 16,400
Raw materials inventory 2,400
Work in process inventory 21,120
Finished goods inventory 2,700
Production Supplies 178 $42,798
Property, plant, and equipment 15,000
Accumulated depreciation 9,000 $6,000
Total assets $48,798
Liabilities and Equity:
Accounts Payable $1,500
Wages Payable 1,950
Total liabilities $3,450
Common stock $16,800
Retained earnings 28,548 $45,348
Total liabilities and equity $48,798
Explanation:
a) Data and Calculations:
Trial Balance at January 1, 2019:
Account Titles Debit Credit
Cash $ 20,000
Raw materials inventory 1,800
Work in process inventory 2,400
Finished goods inventory 4,200
Property, plant, and equipment 15,000
Accumulated depreciation $ 6,000
Common stock 16,800
Retained earnings 20,600
Total $ 43,400 $ 43,400
Analysis of Transactions for the period:
1. Raw materials $11,400 Production Supplies $600 Accounts payable $12,000
2. Work-in-Process $10,800 Raw materials $10,800
3. Accounts payable $10,500 Cash $10,500
4. Work-in-Process $19,950 Wages Payable $19,950
5. Wages Payable $18,000 Cash $18,000
6. Work-in-Process $11,970 Overhead Applied $11,970 ($12,600 * 950/1,000)
7. Selling and Administrative expense $1,800 Cash $1,800
8. Utilities and Rent for production $9,300 Cash $9,300
9. Depreciation Expense-Plant and Equipment $3,000 Accumulated Depreciation $3,000
10. Finished Goods Inventory $24,000 Work-in-Process $24,000
11. Cost of Goods Sold $25,500 Finished Goods Inventory $25,500
12. Cash $36,000 Sales Revenue $36,000
13. Overhead $422 Production Supplies $422 ($600 - $178)
14. Cost of Goods Sold $752 Underapplied Overhead $752
Adjusted Trial Balance at December 31, 2019:
Account Titles Debit Credit
Cash $ 16,400
Raw materials inventory 2,400
Work in process inventory 21,120
Finished goods inventory 2,700
Property, plant, and equipment 15,000
Accumulated depreciation $ 9,000
Accounts Payable 1,500
Wages Payable 1,950
Common stock 16,800
Retained earnings 20,600
Production Supplies 178
Sales Revenue 36,000
Cost of Goods Sold 26,252
Selling and distribution exp. 1,800
Totals $85,850 $85,850
Place the following steps for developing a credit policy in the correct order of process: A: The company hopes that few customers will miss payments, so it decides to take no action to collect bad debts. B: The company decides that payments must be made within 45 days. C: The company decides that it's willing to lose sales in exchange for less bad debt risk. B, C, A C, A, B B, A, C C, B, A
Answer: C, B, A
Explanation:
First the company would decide that it would like less bad debt risk and would be willing to risk losing sales by instituting tougher restrictions on credit sales.
One such restriction would be that payments must be made within 45 days.
With this restriction, the firm will hope that less doubts are defaulted on so it will not take any action to collect bad debts.
A company is forecasted to generate free cash flows of $25 million next year and $29 million the year after. After that, cash flows are projected to grow at a stable rate in perpetuity. The company's cost of capital is 12.0%. The company has $34 million in debt, $19 million of cash, and 23 million shares outstanding. Using an exit multiple for the company's free cash flows (EV/FCFF) of 17, what's your estimate of the company's stock price
Answer:
$18.41
Explanation:
Equity value = FCF next year / (1 + cost of capital) + FCF in year 2 / (1 + cost of capital)^2 + 1 / (1 + cost of capital)^2 * [ (FCF in year 2 * exit multiple)]
= $25 million/1.12 + $29 million/1.12^2 + 1 / 1.12^2*[($29 million*17)]
= $25 million/1.12 + $29 million/1.12^2 + $493 million/1.12^2
= $25 million / 1.12 + $522 million / 1.12^2
= $438.4566327 million
The stock price = ($438.4566327 million - Debt + Cash) / Number of shares outstanding
= ($438.4566327 million - $34 million + $19 million) / 23 million shares
= $423.4566327 million / 23 million shares
= 18.4111579435
= $18.41
Calculate the arithmetic average returns for large-company stocks and T-bills over this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation of the returns for large-company stocks and T-bills over this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. What was the average risk premium over this period
Answer:
a. Arithmetic average returns for large company stocks:
= (0.0389 + 0.1414 + 0.1913 - 0.1455 - 0.3204 + 0.3737) / 6
= 4.66%
Arithmetic average returns for T-bills:
= (0.0581 + 0.0247 + 0.0370 + 0.0713 + 0.0518 + 0.0616) / 6
= 0.05075
= 5.08%
b. First find variance.
Variance of large company stock:
Variance is divided by n - 1
= {(0.0389 - 0.0466)² + (0.1414 - 0.0466)² + (0.1913 - 0.0466)² + (-0.1455 - 0.0466)² + (-0.3204 - 0.0466)² + (0.3737 - 0.0466)²} / 5
= 0.0617140
Standard deviation = √0.0617140
= 24.84%
Variance of T-bills
= {(0.0581 - 0.0508)² + (0.0247 - 0.0508)² + (0.0370 - 0.0508)² + (0.0713 - 0.0508)² + (0.0518 - 0.0508)² + (0.0616 - 0.0508)²} / 5
= 0.0002926
Standard deviation = √0.0002926
= 1.71%
c. Risk Premiums:
Year 1 Year 2 Year 3
= 3.89% - 5.81% = 14.14% - 2.47% = 19.13% - 3.70%
= -1.92% = 11.67% = 15.43%
Year 4 Year 5 Year 6
= -14.55% - 7.13% = -32.04% - 5.18% =37.37% - 6.16%
= -21.68% = -37.22% = 31.21%
Average risk premium:
= (-0.0192 + 0.1167 + 0.1543 - 0.2168 - 0.3722 + 0.3121) / 6
= -0.42%
The Acme Company produces and sells widgets. They currently charge $48 per widget, and they sell 452 widgets per week. If the price is increased to $54.58 per widget, then 62 fewer widgets per week can be sold. Assuming that demand is linear, find the value for elasticity of demand at the current price. Round as necessary.
Answer:
1
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
percentage change in quantity demanded = (452 - 62 / 452) - 1 = -0.137
percentage change in price = (54.58 / 48) - 1 = 0.137
=-0.137 / 0.137 = -1
-1 in absolute terms = 1
Why does operations managers need to get involved into planning?
Answer:
See below
Explanation:
The reason is that he oversees the entire operations of an organization, hence must know what the planning entails at the beginning.
Again, if the operating manager is involved in planning at the early stage, he would be able to contribute meaningfully towards the success of the plan
On March 10, 2017, Steele Company sold to Barr Hardware 200 tool sets at a price of $50 each (cost $30 per set) with terms of n/60, f.o.b. shipping point. Steele allows Barr to return any unused tool sets within 60 days of purchase. Steele estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 2017, Barr returned 6 tool sets and received a credit to its account.
Prepare journal entries for Steele to record (1) the sale on March 10, 2017, (2) the return on March 25, 2017, and (3) any adjusting entries required on March 31, 2017 (when Steele prepares financial statements). Steele believes the original estimate of returns is correct. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer:
Date Account Titles Debit Credit
March, 10 Accounts Receivables $10,000
Sales Revenue $10,000
Cost of Good sold $6,000
Inventory $6,000
Working
Receivables = 200 tool sets * 50 = $10,000
COGS = 200 * 30 = $6,000
Date Account Titles Debit Credit
March, 25 Sales Returns and Allowances $300
Accounts Receivable $300
Returned Inventory $180
Cost of Goods sold $180
Working:
Sales returns = 6 * 50 = $300
Cost of goods = 6 * 30 = $180
Estimated that 10 sets would be returned but only 6 were.
Date Account Titles Debit Credit
March, 25 Sales Returns and Allowances $200
Allowance for Sales Returns $200
and Allowances
Returned Inventory $120
Cost of goods sold $120
Working:
Sales returns = 4 * 50 = $200
COGS = 4 * 30 = $120
A manager who creates an incentive program for the team to hit quarterly sales goals is performing the management function of ____________.
Answer:
Controlling.
Explanation:
Planning is a term used to describe the process of developing the organization's objectives and translating those into courses of action.
This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.
A manager who creates an incentive program for the team to hit quarterly sales goals is performing the management function of controlling.
Forsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $135 per unit. Its standard cost per unit produced is $105 and its selling and administrative expenses totaled $235,000. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year:
Materials price variance . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,500 F
Materials quantity variance . . . . . . . . . . . . . . . . . . . . . . . . $10,200 U
Labor rate variance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,500 U
Labor efficiency variance . . . . . . . . . . . . . . . . . . . . . . . . . . $4,400 F
Fixed overhead budget variance . . . . . . . . . . . . . . . . . . . . . $2,500 F
Fixed overhead volume variance . . . . . . . . . . . . . . . . . . . . $12,000 F
Required:
1. When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much?
2. Using Exhibit 10B-5 as a guide, prepare an income statement for the year.
Dylan Corporation
Income Statement
For the year ended 12/31/xx
dollars in thousands
Sales 5270
Cost of goods sold at stanadard 4335
Total variance adustments 36
Cost of goods sold 4371
Gross margin 899
Selling and administrative expenses 450
Net operating income 449
Answer:
See below
Explanation:
1. Computation of cost of goods sold
Materials Price Variance
$6,500 F
Materials Quantity Variance
$10,200 U
Labor Rate Variance
$3,500 U
Labor Efficiency Variance
$4,400 F
Fixed Overhead budget variance
$2,500 F
Fixed Overhead volume variance
$12,000 F
Cost of goods sold
$11,700
2. Net operating statement
Sales[$153 × 10,000]
$1,530,000
Less: Cost of goods sold
Cost of goods sold at standard [$105 × 10,000]
$1,050,000
Cost of good sold adjusted
($11,700)
Variance adjustment Balance
$1,038,300
Gross profit
$491,700
Less selling and administrative expenses
($235,000)
Net operating income
$256,700
Organizations exchange information internally and externally. External messages go to customers, vendors, the government, and other business partners. Internal messages travel upward to supervisors, downward to employees, and horizontally among workers. Understanding the different types of business messages and following the 3-x-3 writing process will help you write more effective professional messages.
Match the message content area with the correct types of messages.
a. Sales pitches, requests for favors
b. Replies, goodwill messages, direct claims
c. Bad news, refusals
1. persuasive
2. positive
3. negative
Answer:
1. persuasive: a. Sales pitches, requests for favors
2. positive: b. Replies, goodwill messages, direct claims
3. negative: c. Bad news, refusals
Explanation:
a) A persuasive speech is one whose goal is to convince someone of something, so it is correct to say that in an organizational message where there are sales speeches and requests for favors, there is a need for a persuasive speech, whose message seeks to convince the sender of the benefits of make a sale for example.
b) A positive speech is one whose intention is to motivate, give praise, offer positive feedback, etc. Therefore, in responses, messages of goodwill, direct claims, positive speech will help in better understanding of the sender and in the positive positioning of the company.
c) A negative discourse occurs when there is bad news to be shared, it is necessary that this message is written in a soft way, with damping words and indirectly, because this way the acceptability can be greater.
Weather disruptions in agricultural areas will: A. Reduce the demand for food, decreasing the equilibrium price and quantity of food. B. Reduce the supply of food, increasing the equilibrium price and quantity of food. C. Increase the supply of food, decreasing the equilibrium price, but decreasing the equilibrium quantity of food. D. Increase the demand for food, increasing the equilibrium price and quantity of food. E. Reduce the supply of food, increasing the equilibrium price, but reducing the equilibrium quantity of food.
Answer:
e
Explanation:
Due to weather disruptions in agricultural areas , farms would be negatively affected and this would reduce supply. If supply is reduced, the supply curve shifts inward. This would lead to an increase in equilibrium price and a reduction in equilibrium quantity
For example, an hurricane would destroy farms
Read each of the four activities and put them in their proper sequence. Be advised that the action listed is not the only action needed in that step. Other activities may be included in each step. Step Activities Change the oil, rotate the tires, and replace the windshield wipers as needed. Negotiate the lowest price by getting bids from at least three dealers and hold firm to your target price when selecting the source of your car. Identify the car that meets your needs and wants in terms of size, styling, performance, and safety and obtain online quotes for three target cars. Determine how expensive a car you can afford.
Answer:
Step Activities
1 Determine how expensive a car you can afford.
2. Identify the car that meets your needs and wants in terms of size, styling, performance, and safety and obtain online quotes for three target cars.
3. Negotiate the lowest price by getting bids from at least three dealers and hold firm to your target price when selecting the source of your car.
4. Change the oil, rotate the tires, and replace the windshield wipers as needed.
Explanation:
The steps above are arranged to ensure that the next step follows from the last sequentially. The sequence started with making purchase decisions to maintenance activities after the purchase of a car had been completed successfully.
Peach Company uses a weighted-average process-costing system. Company records disclosed that the firm completed 40,000 units during the month and had 10,000 units in process at month-end, 20% complete. Conversion costs associated with the beginning work-in-process inventory amounted to $231,000, and amounts that relate to the current month totaled $966,000. If conversion is incurred uniformly throughout manufacturing, Peach's equivalent-unit cost is:_________
A. $23.00
B. $23.94
C. $24.15
D. $28.50
E. some other amount
Answer:
D. $28.50
Explanation:
Peach Equivalent-unit cost = Total Cost / Units
Peach Equivalent-unit cost = ($966000 + $231000) / (40000 units + (10000 units*20% completion))
Peach Equivalent-unit cost = $1197000 / (40000 units + 2000 units)
Peach Equivalent-unit cost = $1197000 / 42000 units
Peach Equivalent-unit cost = $28.50
Nancy has just purchased a new house that is in need of new flooring. Use the measurements given on the floor plans to the right to answer the following question. The cost of carpeting is $ 10.99 per square foot. This price includes the cost of installation. Determine the cost for Nancy to have this carpeting installed in all three bedrooms.
Answer:
The cost for Nancy to have this carpeting installed in all three bedrooms = $5934.6
Explanation:
P.S - The floor plan is given below :
Given - Nancy has just purchased a new house that is in need of new flooring. Use the measurements given on the floor plans to the right to answer the following question. The cost of carpeting is $ 10.99 per square foot. This price includes the cost of installation.
To find - Determine the cost for Nancy to have this carpeting installed in all three bedrooms.
Proof -
Given that,
Measurement of Bedroom 1 - 11' × 15'
Measurement of Bedroom 2 - 11' × 15'
Measurement of Bedroom 3 - 10' × 21'
Now,
Area of Bedroom 1 = 11 × 15 = 165 ft²
Area of Bedroom 2 = 11 × 15 = 165 ft²
Area of Bedroom 3 = 10 × 21 = 210 ft²
So,
Total carpeted Area = 165 + 165 + 210 = 540 ft²
Now,
Cost of carpeting 1 square foot = $10.99
⇒Cost of carpeting 540 square foot = 540 × 10.99 = $5934.6
∴ we get
The cost for Nancy to have this carpeting installed in all three bedrooms = $5934.6
g At the beginning of the month, the Painting Department of Skye Manufacturing had 39,000 units in inventory, 75% complete as to materials, and 20% complete as to conversion. During the month the department started 134,000 units and transferred 148,500 units to the next manufacturing department. At the end of the month, the department had 24,500 units in inventory, 40% complete as to materials and 15% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Painting Department. Group of answer choices 158,300 materials; 152,175 conversion. 152,175 materials; 158,300 conversion. 158,300 materials; 144,375 conversion. 129,050 materials; 152,175 conversion. 129,050 materials; 144,375 conversion.
Answer:
Skye Manufacturing
Painting Department
Equivalent units:
158,300 materials; 152,175 conversion
Explanation:
a) Data and Calculations:
Beginning WIP = 39,000 units; Degree of completion: 75% materials and 20% conversion.
Units started during the month = 134,000
Units completed and transferred out = 148,500
Ending units of WIP = 24,500
Equivalent units, using the weighted average method of process costing:
Units Materials Conversion
Units transferred out 148,500 148,500 (100%) 148,500 (100%)
Ending Work in Process 24,500 9,800 (40%) 3,675 (15%)
Total equivalent units 158,300 152,175
Patty and Bob were in a romantic relationship. While they were seeing each other, Patty and Bob acquired an electronics service center, Bob paying $60,000 and Patty running all facets of the center. The center becomes very profitable. Two years later, when the romantic relationship ended, Bob goes to court for a declaration that they had no partnership because they did not have a written partnership agreement and Patty contributed no cash, she was merely an employee. Did they have a partnership
Answer:
Most states accept oral agreements when forming partnerships. This would not be an exception. the fact that Patty didn't contribute any money doesn't mean that she cannot be considered a partner. Her contribution might be her labor. Unless the partnership previously recorded Patty as an employee, then she can claim being a partner. Since no written agreement was made, profits must be divided equally.
Explanation:
The decision regarding the partnership between Patty and Bob would be as follows:
Yes, they have been partners where one has employed capital while the other has employed his entrepreneurship.
What is Partnership?A Partnership is described as an acquaintance and association that exists between two or more individuals in order to run a business.
In the given situation, although there is no written agreement between them, Bob will have an equal share in the profit of the business.
The reason behind this is that one employed his capital while the other employed his skills and efforts(entrepreneurship).
Thus, they would be considered as partners as he was not hired as an employee in the company.
Learn more about "Declaration" here:
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Lance Whittingham IV specializes in buying deep discount bonds. These represent bonds that are trading at well below par value. He has his eye on a bond issued by the Leisure Time Corporation. The $1,000 par value bond pays 6 percent annual interest and has 15 years remaining to maturity. The current yield to maturity on similar bonds is 11 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
a. What is the current price of the bonds?
b. By what percent will the price of the bonds increase between now and maturity? (Round "PV Factor" to 3 decimal places, intermediate and final answers to 2 decimal places. Omit the "%" sign in your response.) Price increases by %
Answer:
Future value = FV = 1000
Annual interest = i = 0.06
Yield to maturity = y = 0.15
Number of years = N = 15
Annuity Value = A = 60
PV_IFA = 5.847
PV_IF = 0.1229
1. PV of interest = A*PV_IFA = 350.82
PV of principal = FV * PV_IF = 122.9
Bond Price = $473.72
2. Percent increase at maturity
Maturity Value $1,000.00
Current price $473.72
Dollar increase $526.28
Three accuracy problems with the consumer price index (CPI) are Group of answer choices price confusion, substitution, and quality changes. substitution, quality changes, and the money illusion. substitution, quality changes, and the availability of new goods and services. the availability of new goods and services, substitution, and traditional bundle bias. the income effect, substitution effect, and money illusion.
Answer:
Option b (Substitution.....services) is the appropriate choice.
Explanation:
The above leads to calculating difficulties as well as the failure throughout the Index to identify better products and services contributing to less precise inflation outcomes.It does not take account of the replacement facilities, which arise when an increase throughout the price of one promising recommendation to a replacement including its good by another, which often increases the costs of one quality.The other options are not related to the given scenario. So the above is the correct choice.
Page 534 16.1. What is fiscal policy? Which of the following government actions would be considered fiscal policy decisions? Correct Answer(s) stricter enforcement of immigration law Press Space to open cutting taxes to encourage commercial activity Press Space to open canceling a government-funded project because of a lessened need for job creation Press Space to open passage of new national air quality standards Press Space to open the central bank acting to increase the money supply
Answer:
Fiscal policy is when the government uses taxes or its spending to regulate the economy.
Fiscal policy can be expansionary or contractionary
expansionary fiscal policy is when the money supply is increased through increased spending and cutting of taxes
contractionary fiscal policy is when money supply is reduced
cutting taxes to encourage commercial activity
Explanation:
Lelia is looking to buy a pair of Apple AirPods, which usually cost $140, at a discounted price. There is a listing at $65 dollars that she is interested in purchasing. There is a 40% chance the AirPods are in perfect condition, which would save her $75. However, there is a 30% chance that the AirPods are defective, which would add a repair cost of $90, for a net loss of $15. There is also a 30% chance the AirPods are never delivered, for a net loss of $65.
1. What is the expected value of gain or loss from this purchase?
2. Is it a good idea for Lelia to go through with the purchase?
Answer:
1. $6>0
2. Yes
Explanation:
Let us assume x for the net gain arise from the purchase
1. The expected gain is
= $75(0.40) - $15(0.30) - $65(0.30)
= 30 - 4.5 - 19.5
= $6
Hence, the expected gain is $6>0
2. So it is a good idea to go with the purchase
Stanley's Bicycles store buys bicycles on average for $600 and sells them on average for $750. He pays a sales commission of 15% of sales revenue to his sales staff. Stanley pays $1,400 a month rent for his store, and also pays $3,000 a month to his staff in addition to the commissions. Stanley sold 200 bicycles in June. If Stanley prepares a contribution margin income statement for the month of June, what would be his contribution margin
Answer:
Stanley's Bicycles contribution margin is $7,500
Explanation:
Stanley's Bicycles Contribution Margin Income Statement for the month of June
Sales ($750 x 200) $150,000
Less Variable Costs :
Costs of Sales ($600 x 200) $120,000
Commissions ( $150,000 x 15 %) $22,500 ($142,500)
Contribution $7,500
Less Fixed Costs
Rent $1,400
Salaries $3,000 ($4,400)
Net Income $3,100
Conclusion
Contribution Margin is Sales less Variable Costs. Therefore, Stanley's Bicycles contribution margin is $7,500
When the equity method of accounting for investments is used by the investor, the amortization of additional depreciation due to differences between book values and fair values of investee assets on the date of acquisition: Group of answer choices Increases the investment account and reduces investment revenue. Increases the investment account and increases investment revenue. Reduces the investment account and increases investment revenue. Reduces the investment account and reduces investment revenue.
Answer:
d. Reduces the investment account and reduces investment revenue.
Explanation:
When the equity method of accounting for investments is used by the investor, the amortization of additional depreciation due to differences between book values and fair values of investee assets on the date of acquisition reduces the investment account and reduces investment revenue.
The amortization of additional depreciation reduces the investment account in the investee as well as reduces the income recognized from investee.
In the equity method, an investor amortizes, or expenses, the additional over book value paid for its portion of the investee's tangible non current assets. For non current assets, book value is purchase price minus accumulated depreciation. The investor amortizes the amount above book value it allocates to investee assets.