Kim Co. purchased goods with a list price of $175,000, subject to trade discounts of 20% and 10%, with no cash discounts allowable. How much should Kim Co. record as the cost of these goods

Answers

Answer 1

Answer:

the cost of these goods is $126,000

Explanation:

The computation of the cost of these goods is shown below:

= List price × (1 -  first discount rate) × (1 - second discount rate)

= $175,000 × (1 - 0.20)  × (1 - 0.10)

= $126,000

Hence, the cost of these goods is $126,000

We simply applied the above formula so that the correct amount could come

The same is to be relevant

Answer 2

The cost of goods sold is the value of goods at which they are made available to the customers at an affordable price. The costs are the particular term used for the product's value to specify that the goods and services when availed to the customers carries a value or the price.  

The computation of the cost of these goods is shown below:

[tex]\begin{aligned}\text{Cost of Goods}&= \text{list price} \times (1 - \text{first discount rate}) \times (1 - \text{second discount rate})\\&=\$175,000 \times (1 - 0.20)\times(1 - 0.10)\\& = \$126,000\end{aligned}[/tex]

Hence, the cost of these goods is $126,000

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Related Questions

Please complete the spreadsheet template:
Trans no. Transaction
1. Pamela Wong, the owner, opened a checking account for the business by depositing $48,000 of her personal funds.
2. Paid the monthly rent of $1,500.
3. Bought office furniture on account for $1,000.
4. Pamela Wong invested $3,000 of office equipment in the business.
5. Paid cash for a new computer for the business, $5,000.
6. Paid for an advertisement in the local newspaper, $200.
7. Completed graphic desktop publishing services for a client and sent a bill for $800.
8. Paid $700 on account for the office furniture bought earlier.
9. Received $500 on account from a client.
10. Pamela Wong withdrew $1,000 for personal use.
11. Received $400 cash for desktop publishing services completed for a client.

Answers

Answer:

I used an excel spreadsheet sine there is not enough room here.        

Explanation:

Excel templates make it simpler to create a spreadsheet with a polished appearance by including all of the following, with the exception of Data.

What is Excel Sheet ?

To eliminate the necessity for the user to generate those designs from scratch, templates are made to specify the fundamental structure of each document that is repeated.

A template typically includes formatting and pre-defined formulas. However, it won't include any data as the template's goal is to have a consistent structure but allow for variable values so that it can respond appropriately to the data.

Formatting and pre-made formulas are frequently included in templates. Although the template aims to have a consistent structure and allow for variable values so that it can react appropriately to the data, it won't contain any data.

Any template will therefore include design but not data. We are able to make a new one, modify an existing template, or utilize the default template.

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On August 20th, one of your employees comes to you with a vacation request. The employee’s available vacation time expires on September 1st, however she wants to take her vacation between September 20th through the 25th.


She asks you to submit her vacation request to the corporate office for the week prior to September 1st, and wants you to not schedule her for the days between the 20th and 25th, and she wants her "vacation" pay for those days.


Would you do it? Why? or Why Not?

Answers

Answer:

No

Explanation:

Her vacation is expired and therefore invalid. Also she is requesting for a pay during this period which counters Amy form of sympathy for this employee. However, depending on the relationship the employee has with her employer, there might be a compromise especially if the employee really does need the vacation as she may be burned out or may have postponed vacation till expiration for the interest of the company

connecting u dropped its price from $20 to $16 per gigabyte of data. Joe according to the midpoint formula, Connecting U reduced its price by what percentage?

Answers

Answer:

-$22.2

Explanation:

The computation of price by percentage is shown below:-

Price by percentage = (End price - Beginning price) ÷ (End price - Beginning price) ÷ 2 × 100

= ($16 - $20) ÷ ($16 - $20) ÷ 2 × 100

= -$4 ÷ $18 × 100

= -$400 ÷ $18

= -$22.2

So, we have applied the above formula.

And, the same is to be considered

Connecting u dropped price in percentage is 22.2%

Midpoint formula:

Given that;

Old price = $20

New price = $16

Find:

Connecting u dropped price in percentage

Computation:

[tex]Dropped\ price\ in\ percentage=[\frac{16-20}{\frac{16+20}{2} }]100\\\\Dropped\ price\ in\ percentage=[\frac{16-20}{18}]100\\\\Dropped\ price\ in\ percentage=[\frac{-4}{18}]100\\\\Dropped\ price\ in\ percentage=22.2[/tex]

Connecting u dropped price in percentage = 22.2%

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The adjusted trial balance of Norton Company contained the following information. Assume the tax rate is 25%:

Debit Credit
Sales revenue $390,000
Sales returns and allowances $10,000
Sales discounts 5,000
Cost of goods sold 200,000
Operating expenses 110,000
Interest revenue 8,000
Interest expense 3,000


Required:
Compute income from operations.

a. $175,000
b. $65,000
c. $50,000
d. $70,000

Answers

Answer:

b. $65,000

Explanation:

Particulars                                            Amount

Revenues

Service Revenue                                   $390,000  

Less: Sales Return and allowance       $10,000

Less: Sales Discount                             $5,000  

Net Sales Revenue                                $375,000

Less: Cost of Goods Sold                      $200,000

Gross Profit                                             $175,000

Less: Operating Expenses                     $110,000

Operating Income                                  $65,000

Thus, income from operation is $65,000

How can you enable your sales team to perform better?
A. by enforcing stringent rules
B. by providing them with training and other supporting material
C. by permitting them the freedom to do whatever they think is right
D. by increasing their pay more often than the rest of the workforce

Answers

Answer: i think its B because it makes the most sense out of them all

Explanation:

Bank Reconciliation and Entries The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $12,270. The bank statement indicated a balance of $15,440 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: Checks outstanding totaled $5,560. A deposit of $5,790, representing receipts of July 31, had been made too late to appear on the bank statement. The bank had collected $3,010 on a note left for collection. The face of the note was $2,860. A check for $800 returned with the statement had been incorrectly recorded by Stone Systems as $880. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account. A check drawn for $400 had been incorrectly charged by the bank as $40. Bank service charges for July amounted to $50.

Required:
Prepare a bank reconciliation.

Answers

Answer: Please see below for the reconciliation of bank and book balance for Stone systems as $15,310

Explanation:

Bank Reconciliation Statement  for July 31 , 20Y5  for Stone Systems

Particulars                                 Amount

Balance on bank statement       $15,440

Additions:  

Outstanding Deposits                       $5,790                        

Deductions:  

Outstanding checks                 $5,560

Bank Error (400-40)                        $360                                        

Adjusted bank balance            $15,310

Balance in books                          $12,270.                        

Additions:  

Note Collection plus interest    $3,010  

Incorrect recording of check

($880-$800)                                    $80  

Deductions

Bank Service charges                    $50  

Adjusted book balance       $15,310

There are two machines for sale that you are considering purchasing for your sawmill to produce hardwood flooring. You want to find the one that has a higher process capability index, or Cpk. The goal is to produce flooring that is between 46 and 50 millimeters thick. The first machine is more accurate on average, producing to a mean of 48 millimeters...but unfortunately it has more variation with a standard deviation of 7 millimeters. The second machine is not as accurate, with a mean of 47mm, but does deliver a more consistent output, with standard deviation of 3mm.
[ Select] What is the Cpk of machine 1?
[Select] What is the Cpk of machine 2?
[ Select] If your goal is to be capable', what would you do?
[ Select] If (somehow) you could combine the best of both machines (the centering or average of machine 1 coupled with the constancy or standard deviation of machine 2, what would the Cpk be?

Answers

Answer:

Machine 1 = 0.092

Machine 2 = 0.111

Combined = 0.222

Explanation:

Given the following :

Lower specification limit (LSL) = 46 mm

Upper specification limit (USL) = 50 mm

MACHINE 1:

Mean 1 (m1) = 48

Standard deviation 1 (σ1) = 0.7

MACHINE 2:

Mean 2 (m2) = 47

Standard deviation 2 (σ2) = 0.3

Cpk formula:

Min(USLcpk, LSLcpk)

USLcpk = (USL - m) / 3σ

LSLcpk = (m - LSL) / 3σ

FOR MACHINE 1:

USLcpk = (50 - 48) / 3(7) = 0.0952

LSLcpk = (48 - 46) / 3(7) = 0.0952

Cpk = Min(0.952, 0.952) = 0.952

FOR MACHINE 2:

USLcpk = (50 - 47) / 3(3) = 0.333

LSLcpk = (47 - 46) / 3(3) = 0.111

Min(USLcpk, LSLcpk)

Cpk = Min(0.333, 0.111) = 0.111

When combined :

Mean = 48

σ = 3

USLcpk = (50 - 48) / 3(3) = 0.222

LSLcpk = (48 - 46) / 3(3) = 0.222

Min(USLcpk, LSLcpk)

Cpk = Min(0.222, 0.222) = 0.222

If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:

Answers

Answer:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Explanation:

If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

For example:

Total estimated overhead= $150,000

Allocation base= direct labor hours

Estimated Total number of direct labor hours= 10,000

Predetermined manufacturing overhead rate= 150,000/10,000

Predetermined manufacturing overhead rate= $15 per direct labor hour

Sara purchased a life insurance policy as an investment from her neighbor, Angela. Angela, the original policy holder had paid premiums of $12,000 before the sale. Sara paid Angela $16,500 to acquire the life insurance policy. Sara made additional payments of $5,000. When Angela died, Sara collected $50,000. How much of the policy proceeds is taxable to Sara

Answers

Answer:

$16,500

Explanation:

She invested = $12,000

Total money spent to acquire the policy = ($16,500 + $5000) = $21,500

Total money invested on policy = $21500 + $12000

Total money invested on policy = $33500

Money that sara got after angela died = $50,000

Therefore, the taxable proceed will be = $50,000 - $33,500 = $16,500

t a sales volume of 36,500 units, Peres Corporation's sales commissions (a cost that is variable with respect to sales volume) total $576,700. To the nearest whole dollar, what should be the total sales commissions at a sales volume of 35,000 units? (Assume that this sales volume is within the relevant range.

Answers

Answer:

$553,000

Explanation:

Calculation for the total sales commissions

First step is to compute the Sales commission per unit using this formula

Sales commission per unit = Total sales commissions ÷ Unit sales

Let plug in the formula

Sales commission per unit= $576,700 ÷ 36,500

Sales commission per unit= $15.80

Last step is to find the Total sales commission using this formula

Total sales commission = Sales commission per unit × Unit sales

Let plug in the formula

Total sales commission= $15.80 × 35,000

Total sales commission=$553,000

Therefore the Total sales commission will be $553,000

Mickey, Mickayla, and Taylor are starting a new business (MMT). To get the business started, Mickey is contributing $200,000 for a 40% ownership interest. Mickayla is contributing a building with a value of $200,000 and a tax basis of $150,000 for a 40% ownership interest, and Taylor is contributing legal services for a 20% ownership interest. Using the research skills you learned in Week 1, access RIA Checkpoint and research what amount of gain/income each owner is required to recognize under each of the following alternative situations?

a. MMT is formed as a C corporation.
b. MMT is formed as an S corporation.
c. MMT is formed as LLC.

Answers

Answer:

a. MMT is formed as a C corporation.

Mickey and Mickayla will not recognize any gain, while Taylor must recognize $100,000 as ordinary income. Mickey and Mickayla's exchange classifies under §351, but Taylor's doesn't.

b. MMT is formed as an S corporation.

Mickey and Mickayla will not recognize any gain, while Taylor must recognize $100,000 as ordinary income. Mickey and Mickayla's exchange classifies under §351, but Taylor's doesn't.

c. MMT is formed as LLC.

Mickey and Mickayla will not recognize any gain, while Taylor must recognize $100,000 as ordinary income. Mickey and Mickayla's exchange classifies under §721, but Taylor's doesn't.

Explanation:

Basically §351 and §721 are very similar except that one applies to corporations and the other applies to partnerships and LLCs. No gain will be recognize when assets are transferred in exchange for equity, and the people involved in the exchange can control the company.

How is a proceeding for violation of the regulations in Circular 230 instituted against a tax practitioner

Answers

Incomplete question. The options read;

A. An aggrieved taxpayer files a petition with the United States Tax Court stating a claim against the attorney, certified public accountant, registered tax return preparer, enrolled agent, enrolled retirement plan agent, or enrolled actuary

B. The IRS representative signs a complaint naming the tax practitioner and files the complaint with the Administrative Law Judge (ALJ)

C. The Secretary of the Treasury files a complaint against the attorney, certified public accountant, registered tax return preparer, enrolled agent, enrolled retirement plan agent, or enrolled actuary in the United States District Court for the District of Columbia

D. The Commissioner of the IRS files a complaint against the attorney, certified public accountant, registered tax return preparer, enrolled agent, enrolled retirement plan agent, or enrolled actuary with the United States Tax Court

Answer:

D. The Commissioner of the IRS files a complaint against the attorney, certified public accountant, registered tax return preparer, enrolled agent, enrolled retirement plan agent, or enrolled actuary with the United States Tax Court

Explanation:

According to the information on the thetaxadviser website, when there is a  violation of the regulations in Circular 230 instituted by a tax practitioner a complaint would be filed, and if found guilty, he or she "may be censured, suspended, or disbarred from practice before the IRS."

Usually, the Office of Professional Responsibility would take up the case against the tax practitioner.

Which action taken by a central bank would reflect expansionary monetary policy?

Answers

A central bank , will use expansionary monetary to strengthen an economy. The three key actions by fed to expand the economy include a decreased discount rate , buying government securities, and lowered reserve ratio.

The action taken by a central bank which would reflect the expansionary monetary policy is the sale of treasury securities to banks and the lowering down of reserve requirements.

Options A and C are correct.

What is a central bank?

A central bank is referring to the largest bank that controls the regional and subordinate banks. It is the bank in which the commercial banks keep the needed reserve ratio. There are various policies being made by the central bank to monitor the monetary system like fiscal policy, monetary policy, economic policy, etc.

The central bank of the US country is the Federal Reserve that applied the expansionary monetary policy.  The three ways that are made by Federal Reserve in respect of this policy are by making the discount rates to be fallen down for every bank, by acquiring the securities being sold by the government in the market and by keeping the reserve ratio to the lowest so that commercial banks can easily maintain them.

Therefore, the explanations written in option A and C are correct.

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Question's missing part:

The options are given as follows:

A) Selling treasury securities to banks to reduce the money supply

B) Raising the discount rate to provide less in loans to banks

C) Lowering the reserve requirements for all banks

D) Raising the interest that it pays to banks on the balance of their

reserves

Sheridan Company pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Sheridan accrues salaries expense only at its December 31 year end. Data relating to salaries earned in December 2020 are as follows: Last payroll was paid on 12/26/20, for the 2-week period ended 12/26/20. Overtime pay earned in the 2-week period ended 12/26/20 was $24000. Remaining work days in 2020 were December 29, 30, 31, on which days there was no overtime. The recurring biweekly salaries total $444000.
Assuming a five-day workweek, Sheridan should record a liability at December 31, 2020 for accrued salaries of:_________.
a. $266400
b. $290400
c. $133200
d. $157200

Answers

Answer:

d. $157,200

Explanation:

Calculation for the amount that Sheridan should record a liability at December 31, 2020 for accrued salaries

Liability for accrued salary=$24,000 + ($444,000 ÷ 10 days × 3)

Liability for accrued salary=$24,000+$133,200

Liability for accrued salary= $157,200

Therefore the amount that Sheridan should record a liability at December 31, 2020 for accrued salaries will be $157,200


A company looking to expand internationally with little risk would choose?

Answers

Answer:

LicensingFranchising

Explanation:

There are no options but Licensing as well as Franchising are some of the least riskiest ways to expand internationally.

With Licensing, the company looking to expand simply sells licenses to various companies in different countries giving them the right to use their image. Basically, the company the license is sold to gets access to the seller's intellectual property but then can run their business with a significant degree of autonomy.

Franchising represents another way to expand with little risk. It involves a company giving a license to another company to sell and sometimes produce their products as well as image rights. The company will give the franchisee (company that gets the license) the knowledge and training required to maintain the franchise and in exchange, franchisee pays a fee.

Both of these methods ensure that the name and brand of a company spread internationally whilst making money from it. Risk is minimized because the investment in other countries is low to nothing.

You want a seat on the board of directors of Red Cow, Inc. The company has 260,000 shares of stock outstanding and the stock sells for $51 per share. There are currently 5 seats up for election. The company uses straight voting. How much will it cost you to guarantee that you will be elected to the board

Answers

Answer:

$2,210,051

Explanation:

The computation of the cost that would be guaranteed is shown below:

first find the number of shares controlled which is

= (S x N) ÷  (D + 1) ] + 1

Where,

S = the total number of shares

N  = the number of directors required

D  = total number of directors i.e. elected

So,

= (260,000 × 1) ÷ (5 + 1) + 1

= 43,334

Now the cost is

= 43,334 × $51

= $2,210,051

Label the following hypothetical demand scenarios. Use the midpoint method.
Contain Yourself!, a plastic container company, raises the price of its signature "lunchbox" container from $3.00 to $4.00. As a result, the quantity sold drops from 20,000 to 15,000. ..........
Economists working for the United States have determined that the elasticity of demand for gasoline is 0.5. ..................
CapCityMetro decides to increase bus fare rates from $2.00 to $2.21. Consequently, the number of passengers who decide to take the bus in Austin drops from an average of 70,000 riders a day to an average of 61,000 riders a day. ...............
Inelastic unit-elastic Elastic perfectly elastic

Answers

Answer:

Contain Yourself!, a plastic container company, raises the price of its signature "lunchbox" container from $3.00 to $4.00. As a result, the quantity sold drops from 20,000 to 15,000.

UNIT ELASTIC ⇒ when the price elasticity of demand is unit elastic, a change in price will result in a proportionally equal change in the quantity demanded.

PED = % change in quantity / % change in price = {(15 - 20) / [(15 + 20)/2]} / {($4 - $3) / [($4 + $3)/2]} = -0.2857 / 0.2857 = -1 or |1| in absolute terms

Economists working for the United States have determined that the elasticity of demand for gasoline is 0.5.

INELASTIC DEMAND ⇒ when the price elasticity of demand is inelastic, a change in price will result in a proportionally lower change in the quantity demanded.

CapCityMetro decides to increase bus fare rates from $2.00 to $2.21. Consequently, the number of passengers who decide to take the bus in Austin drops from an average of 70,000 riders a day to an average of 61,000 riders a day.

ELASTIC DEMAND ⇒ when the demand for a good is elastic, a change in price will result in a proportionally higher change in quantity demanded.

PED = % change in quantity / % change in price = {(61,000 - 70,000) / [(61,000 + 70,000)/2]} / {($2.21 - $2) / [($2.21 + $2)/2]} = -0.1374 / 0.1 = -1.374 or |1.374| in absolute terms

provide an example of two companies that have built an effective co-operation.briefly explain the relationship of it g

Answers

Answer:

An example of two companies that have built an effective co-operation is discussed below in details.

Explanation:

Louis Vuitton & BMW

Co-operation Operations: The Art of Travel

Designer Louis Vuitton and Carmaker BMW may not be the usual simple pairings. But if you believe about it, they have some significant things in general. If you concentrate on Louis Vuitton's trademark baggage lines, they're both in the industry of journey. They both value leisure. And finally, they're both well-known, fabulous brands that are recognized for high-quality craftsmanship.

At the local banking institution the branch manager doubles as the IT "go-to" by handling printer setups, resettingLAN passwords, and periodically monitoring the branch’s server health. Last week she noted that a handful of herbranch’s customers complained about suspicious activity in their checking accounts. She knew that the main branchwould handle it and repair any fraudulent charges. She also knew better than to bother the main branch with these customer complaints because the main branch is always ahead of things like this and quickly reminds her that they seewhat she does. Her only response, therefore, was to assure her customers that their accounts would be repaired withinten business days.The most likely law or regulation that becomes an issue upon her discovery i:__________.
a. The Gramm-Leach-Bliley Act’s Safeguards Rule
b. The Good Samaritan Law
c. Section 404 of the Sarbanes-Oxley Act
d. The FTC’s Red Flags Rule

Answers

Answer: d. The FTC’s Red Flags Rule

Explanation:

The Federal Trade Commission has a Red Flags Rules that requires that financial institutions like Banks should implement a program that is capable of flagging instances of suspicious activity that could point to identity theft in the covered accounts that it holds.

This bank's customers are seeing some suspicious activity in their checking accounts which could point to a case of identity theft. The Red Flags rule could therefore be the most relevant rule to the manager's discovery.

Brief Exercise 14-08 Ziegler Corporation reports net income of $380,000 and a weighted-average of 200,000 shares of common stock outstanding for the year. Compute the earnings per share of common stock.

Answers

Answer:

$1.9

Explanation:

The computation of the earning per share is shown below:

Earning per share is

= Net income ÷ Weighted number of oustanding shares

= $380,000 ÷ 200,000 shares

= $1.9

By simply divide the net income from the Weighted number of oustanding shares, the earning per share could be determined

Hence, the earning per share is $1.9

On September 1, Boylan Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred.
Sept. 6 Purchased with cash 80 calculators at $20 each from Guthrie Co.
Sept. 9 Paid freight of $80 on calculators purchased from Guthrie Co.
Sept. 10 Returned 3 calculators to Guthrie Co. for $63 cash (including freight) because they did not meet specifications.
Sept. 12 Sold 26 calculators costing $21 (including freight) for $31 each on account to Lee Book Store, terms n/30.
Sept. 14 Granted credit of $31 to Lee Book Store for the return of one calculator that was not ordered.
Sept. 20 Sold 30 calculators costing $21 for $32 each on account to Orr's Card Shop, terms n/30.
Journalize the September transactions.

Answers

Answer and Explanation:

The journal entries are shown below:

Inventory   $1,600  (80 × $20)

         To Accounts Payable $1,600

(Being inventory purchased on account)

Inventory $80  

     To Cash $80

(Being the freight charges is paid)  

Accounts Payable $63  

       To  Inventory $63  

(being returned inventory is recorded

Accounts Receivable $806 (26 × $31)

         To Sales Revenue   $806  

(Being sale of calculators on account is recorded)    

Cost of Goods Sold $546  (26 × $21)

      To  Inventory  $546  

(being cost of calculators sold is recorded)    

Sales Returns and Allowances $31  

           To Accounts Receivable $31  

(Being return of calculator that is recorded)  

Inventory $31  

      Cost of Goods Sold $31

(Being cost of calculators returned is recorded)    

Accounts Receivable  $960  (30 × $32)

         To Sales Revenue    $960  

(Being sale of calculators on account is recorded)    

Cost of Goods Sold $630  (30 × $21 )

         To Inventory    $630  

(Being cost of calculators sold is recorded)  

In 2013, Space Technology Company modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures:
Basic research to develop the technology $ 2,000,000
Engineering design work 680,000
Development of a prototype device 300,000
Acquisition of equipment 60,000
Testing and modification of the prototype 200,000
Legal and other fees for patent application on the new
communication system 40,000
Legal fees for successful defense of the new patent 20,000
Total $ 3,300,000
The equipment will be used on this and other research projects. Depreciation on the equipment for 2013 is $10,000.
During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all of the above as costs of the patent. Management contends that the device simply represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized.
Required:
Prepare correcting entries that reflect the appropriate treatment of the expenditures.
1. Record the correcting entry to expense R&D costs incorrectly capitalized
2. Record the correcting entry to capitalize the cost of equipment incorrectly capitalized as a patent.
3. Record the correcting entry to record depreciation on equipment used in R&D projects.

Answers

Answer:

1. Dec 31

Dr Research and Development Expense $3,180,000

Cr 2013 Patent $3,180,000

2. Dec 31

Dr Equipment $60,000

Cr 2013 Patent $60,000

3. Dec 31

Dr Research and Development Expense $10,000

Cr 2013 Accumulated Depreciation - Equipment $10,000

Explanation:

1. Preparation of the Journal entry to Record the correcting entry to expense

Dec 31

Dr Research and Development Expense $3,180,000

Cr 2013 Patent $3,180,000

(Being To record research and development expense )

Calculation for the Total amount of theresearch and development expense

Basic research to develop the technology $2,000,000

Engineering design work $680,000

Development of a prototype device $300,000

Testing and modification of the prototype $200,000

TOTAL research and development expense $3,180,000

2. Preparation of the journal entry to Record the correcting entry to capitalize the cost of equipment

Dec 31

Dr Equipment $60,000

Cr 2013 Patent $60,000

(Being To correct cost of equipment capitalized to patent)

3. Preparation of the Journal entry to Record the correcting entry to record depreciation on equipment

Dec 31

Dr Research and Development Expense $10,000

Cr 2013 Accumulated Depreciation - Equipment $10,000

(Being To record research and development expens

3. The last dividend paid by New Technologies was an annual dividend of $1.40 a share. Dividends for the next 3 years will be increased at an annual rate of 8 percent. After that, dividends are expected to increase by 3 percent each year. The discount rate is 16 percent. What is the current value of this stock

Answers

Answer:

$12.60

Explanation:

The computation of the current value of the stock is shown below:-

= $1.40 × (1.08) ÷ 1.16 + 1.40 × (1.08)^2 ÷ (1.16)^2 + 1.40 × (1.08)^3 ÷ (1.16)^3 + 1.40 × (1.08)^3 × (1.03) ÷ (0.16 - 0.03) × (1.16)^3

= $1.3034 + $1.2136 + $1.1299 + $8.9520

= $12.60

Therefore for computing the current value of stock we simply solved the above equation.

Sheridan Company sells radios for $50 per unit. The fixed costs are $445000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $65000 and variable costs will be 50% of the selling price. The new break-even point in units is:

Answers

Answer:

Break-even point in units= 2,600

Explanation:

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Fixed costs= $65,000

Contribution margin per unit= 50*0.5= $25

Break-even point in units= 65,000/25

Break-even point in units= 2,600

What are some of the government requirements imposed on a public corporation that are not imposed on a private, closely held corporation? Discuss pros and cons of each

Answers

Answer:

The government (the SEC) imposes several regulations on publicly traded corporations and requires mandatory reporting regarding their financial position, compensation to key employees, auditing and accounting procedures, conflicts of interest between upper management and shareholders, operating results, etc.

The pros of that large amount of reports is that it makes management accountable for what happens and it makes their job more transparent.

The downside is that they are expensive and time consuming.

On the other hand, privately held corporations decide what to disclose to the general public or the government. The IRS is something that cannot be avoided, but the SEC and its scrutiny is avoided.

Other advantages of publicly held corporations:

a publicly held corporation should be able to raise larger amounts of capitalsince the number of owners is larger, debt per ownership stake is generally much lowertop management tends to be more independent and suffer less pressures from individual stockholderspublicly trades corporations tend to receive more publicity and are better knownthey also attract more talent

Other disadvantages of publicly held corporations:

publicly held corporation have a lot of owners and they all have the right to be informed about what happens within the corporation and vote to elect the board of directorssome decisions require that shareholders vote on them, e.g. mergersstock prices suffer from market riskgoing public is also expensive

The stock of Static Corporation has a beta of 0.7. If the expected return on the market increases by 6%, the expected return on Static Corporation should increase by

Answers

Answer:  4.2%

Explanation:

Beta is a measure of sensitivity of a stock in that it measures how the stock reacts to a movement in market return. The Beta of the Market is 1.

If a Stock's Beta is 2, this means that if expected market return increases by 1%, the stock's expected return will increase by 2%. If a Stock's beta is 0.5 then if the expected return on the market increases by 1%, the stock's expected return will increase by 0.5%.

In this case the expected return on the market increases by 6% so the expected return on Static Corporation should increase by;

= 0.7 * 6%

= 4.2%

If national income is $5,000 billion, compensation of employees is $1,105 billion, proprietors’ income is $1,520 billion, corporate profits are $490 billion, and net interest is $128 billion, then rental income is equal to

Answers

Answer:

Rental income = $1,757 billion

Explanation:

National income is defined as the value of goods and services that a nation produces within a financial year.

Therefore it is made up of all economic actives that the nation is involved in.

The gross domestic product is a measure of the national income.

The formula for national income is given below

National income = employees compensation + proprietors' income + corporate profits + rental income +net interest

5,000 billion = 1,105 billion + 1,520 billion + 490 billion + rental income + 128 billion

Rental income = 5,000 billion - 3,243 billion

Rental income = $1,757 billion

Explain how allocating the profits evenly between the partners would work. Consider the fairness to each of the partners in your response.

Answers

Answer and Explanation:

Allocation of profit to partners is all dependent on partnership agreement also called partnership deed where sharing ratio as well as role and participation of partners are stated clearly. The sharing ratio states how profits or losses in the partnership is shared amongst partners. If there is ratio to share profit equally or higher and lower for certain partners, it is made and stated clear in partnership deed before business commences, this ensures there is fairness in partners' dealings and everyone gets his share according to agreement

Post the journal entries to the​ T-accounts, using transaction dates as posting references in the ledger accounts.

Jul.
1. Yardley contributed $68,000 cash to the business in exchange for common stock.
5. Paid monthly rent on medical equipment, $510.
9. Paid $16,000 cash to purchase land to be used in operations.
10. Purchased office supplies on account, $1 ,600.
19. Borrowed $26,000 from the bank for business use.
22. Paid $1 , 100 on account.
28. The business received a bill for advertising in the daily newspaper to be paid in August, $250.
31. Revenues earned during the month included $6,300 cash and $5,300 on account.
31. Paid employees' salaries $1 ,900, office rent $1 ,400, and utilities $600. Record as a compound entry.
31. The business received $1 ,340 for medical screening services to be performed next month.
31. Paid cash dividends of $6,900.

Answers

Answer:

July 1. Yardley contributed $68,000 cash to the business in exchange for common stock.

Dr cash 68,000

    Cr common stock 68,000

July 5. Paid monthly rent on medical equipment, $510.

Dr rent expense 510

    Cr cash 510

July 9. Paid $16,000 cash to purchase land to be used in operations.

Dr land 16,000

    Cr cash 16,000

July 10. Purchased office supplies on account, $1 ,600.

Dr office supplies 1,600

    Cr accounts payable 1,600

July 19. Borrowed $26,000 from the bank for business use.

Dr cash 26,000

    Cr notes payable 26,000

July 22. Paid $1,100 on account.

Dr accounts payable 1,100

    Cr cash 1,100

July 28. The business received a bill for advertising in the daily newspaper to be paid in August, $250.

Dr advertising expense 250

    Cr accounts payable 250

July 31. Revenues earned during the month included $6,300 cash and $5,300 on account.

Dr cash 6,300

Dr accounts receivable 5,300

    Cr service revenue 11,600

July 31. Paid employees' salaries $1 ,900, office rent $1 ,400, and utilities $600. Record as a compound entry.

Dr wages expense 1,900

Dr rent expense 1,400

Dr utilities expense 600

    Cr cash 3,900

July 31. The business received $1 ,340 for medical screening services to be performed next month.

Dr cash 1,340

    Cr unearned revenue 1,340

July 31. Paid cash dividends of $6,900.

Dr dividends 6,900

    Cr cash 6,900

cash

              debit                    credit

July 1      68,000

July 5                                  510

July 9                                  16,000

July 19    26,000

July 22                                1,100

July 31    6,300

July 31                                  3,900

July 31    1,340

July 31                                 6,900

               101,640

accounts receivable

              debit                    credit

July 31    5,300

office supplies

              debit                    credit

July 10   1,600

land

              debit                    credit

July 9     16,000

accounts payable

              debit                    credit

July 10                                1,600

July 22   1,100

July 28                              250    

                                          750

unearned revenue

              debit                    credit

July 31                                1,340

notes payable

              debit                    credit

July 19                                26,000

common stock

              debit                    credit

July 1                                  68,000

service revenue

              debit                    credit

July 31                                11,600

rent expense

              debit                    credit

July 5     510

July 31    1,400

advertising expense

              debit                    credit

July 28   250

wages expense

              debit                    credit

July 31   1,900

utilities expense

              debit                    credit

July 31    600

dividends

              debit                    credit

July 31    6,900

"Ayres Services acquired an asset for $80 million in 2021." The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). Ayers deducted 100% of the asset's cost for income tax reporting in 2021. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2021, 2022, 2023, and 2024 are as follows: ($ in millions)

2021 2022 2023 2024
Pretax accounting income $330 $350 $365 $400
Depreciation on the income statement 20 20 20 20
Depreciation on the tax return (80 ) (0 ) (0 ) (0 )
Taxable income $270 $370 $385 $420

For December 31 of each year, determine:
a. The cumulative temporary book-tax difference for the depreciable asset.
b. The balance to be reported in the deferred tax liability account.

Answers

Answer:

a. The cumulative temporary book-tax difference for the depreciable asset are as follows:

December 31, 2021 = $60 million

December 31, 2022 = $40 million

December 31, 2023 = $20 million

December 31, 2024 = $0

b. The balance to be reported in the deferred tax liability account are as follows.

December 31, 2021 = $15 million

December 31, 2022 = $10 million

December 31, 2023 = $5 million

December 31, 2024 = $0

Explanation:

Note: See the attached excel file for the calculation of cumulative temporary book-tax difference for the depreciable asset and the balance to be reported in the deferred tax liability account for December 31 of years 2021, 2022, 2023 and 2024 in bold red color.

In the attached excel file, the following formula are used:

Cumulative Temporary differences at December 31 of the current year = Cumulative Temporary differences at December 31 of the previous year + (Depreciation on the tax return at December 31 of the current year - Depreciation on the income statement at December 31 of the current year)

Balance to be reported in deferred tax liability account at December 31 of the current year = Cumulative Temporary differences at December 31 of the current year * Tax rate

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