Answer:
Taxable income before special deductions = $1,051,000
Explanation:
Particulars Amount($) Amount($)
Income as per books of accounts 850,000
Add: Income tax 200,000
Charitable Contribution excess of 4,000
10% limit
Tax penalty assessed by IRS 1,000
Capital loss on sale of land 3,000
Business entertainment expense 20,000 228,000
1,078,000
Less: Interest income on municipal (22,000)
bonds
MACRS depreciation in excess of (5,000) (27,000)
book depreciation
Taxable income before special deductions 1,051,000
DEFINITION TERM 1. Subtract outstanding checks from the bank balance. 2. Compute the adjusted bank balance. 3. Enter the bank statement balance from the bank statement. 4. Add any unrecorded deposits to the bank balance. 5. Compute the adjusted book balance. 6. Add any unrecorded interest earned to the book balance. 7. Enter the company’s book balance from its accounting records. 8. Subtract bank fees from the book balance.
Complete Question:
What are the correct steps in preparing Bank reconciliation in a chronological order?
Answer:
1. Enter the bank statement balance from the bank statement.
2. Add any unrecorded deposits to the bank balance.
3. Subtract outstanding checks from the bank balance.
4. Compute the adjusted bank balance
5. Enter the company's book balance from its accounting records.
6. Add any unrecorded interest earned to the book balance.
7. Subtract bank fees from the book balance.
8. Compute the adjusted book balance.
Explanation:
In Financial accounting, bank reconciliation can be defined as an evaluation which give a complete details of the financial items responsible for any difference between the balance of the cash account in the balance sheet and the cash balance reported in an entity's bank statement. These reconciliations should be done at regular intervals so as to ensure a balanced record of the cash account are kept by an organization or firm.
A bank reconciliation mainly computed by an accountant, gives the difference between the balance in relation to the bank statement and the cash balance with respect to the accounting records of the depositor in a particular financial institution.
The steps in preparing Bank Reconciliation in a chronological order are;
1. You should enter the bank statement balance from the bank statement.
2. Add any unrecorded deposits to the bank balance.
3. Subtract outstanding checks from the bank balance.
4. Compute the adjusted bank balance
5. Enter the company's book balance from its accounting records.
6. Add any unrecorded interest earned to the book balance.
7. Subtract bank fees from the book balance.
8. Compute the adjusted book balance.
The main purpose of a bank reconciliation is to ensure an accuracy of the depositor's financial information and that of it's bank records.
In a nutshell, after a reconciliation of the bank statement, the adjusted bank balance should be equal to the company's ending adjusted cash balance on the balance sheet.
The correct steps in preparing Bank reconciliation in a chronological order: 1. Enter the bank statement balance from the bank statement.
2. Add any unrecorded deposits to the bank balance.
3. Subtract outstanding checks from the bank balance.
4. Compute the adjusted bank balance
5. Enter the company's book balance from its accounting records.
6. Add any unrecorded interest earned to the book balance.
7. Subtract bank fees from the book balance.
8. Compute the adjusted book balance.
Bank reconciliation is described in financial accounting as an evaluation that provides detailed details of the financial items responsible for any difference between the balance of the cash account on the balance sheet and the cash balance shown on an entity's bank statement. These reconciliations should be performed at regular periods to guarantee that an organisation or corporation maintains a balanced record of the cash account.
A bank reconciliation, which is mostly computed by an accountant, provides the difference between the balance on the bank statement and the cash balance on the depositor's accounting records at a certain financial institution.
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ere are simplified financial statements for Watervan Corporation:
INCOME STATEMENT
(Figures in $ millions)
Net sales $
888.00
Cost of goods sold
748.00
Depreciation
38.00
Earnings before interest and taxes (EBIT) $
102.00
Interest expense
19.00
Income before tax $
83.00
Taxes
17.43
Net income $
65.57
BALANCE SHEET
(Figures in $ millions)
End of Year Start of Year
Assets
Current assets $
376
$
326
Long-term assets
272
229
Total assets $
648
$
555
Liabilities and shareholders’ equity
Current liabilities $
201
$
164
Long-term debt
115
128
Shareholders’ equity
332
263
Total liabilities and shareholders’ equity $
648
$
555
The company’s cost of capital is 8.5%.
a. Calculate Watervan’s economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
b. What is the company’s return on capital? (Use start-of-year rather than average capital.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
c. What is its return on equity? (Use start-of-year rather than average equity.) (Enter your answer as a percent rounded to 2 decimal places.)
d. Is the company creating value for its shareholders?
Answer:
income statements okay
Explanation:kokay
If a firm's sales are $250,000 and its variable costs are $190,000, the contribution margin in dollars is:_______.
a. $440,000
b. $60,000
c. $190,000
d. $250,000
Answer:
b. $60,000
Explanation:
Given the following data;
Sales price = $250,000
Variable cost = $190,000
Contribution margin can be defined as the subtraction of variable cost from the sales price.
Mathematically, it given by the formula;
[tex] Contribution \; margin = sales \; price - variable \;cost[/tex]
[tex] Contribution \; margin = 250000 - 190000[/tex]
Contribution margin = 60,000
Therefore, the contribution margin in dollars is $60,000.
Other restaurants in the industry are seeing improvements in their sales, rather than declines. The reporters mention this is in part due to the rise of the celebrity chef and the contrasting styles of the newer quick-serve options that emphasize recipes and quality. Identify which strategy these newer organizations are using to compete against the older more established rivals.
a. Price signaling strategy
b. Capacity control strategy
c. Non-price competition strategy
d. Price leadership strategy
Answer: Non price competition strategy
Explanation:
The strategy that's been utilized by the newer firms as against the fish that are more established is referred to as non price competition strategy.
Non-price competition strategy is referred to as a marketing strategy which doesn't have to do with the reduction in price buth rather, utlizes promotional expenditures like free gifts, sales promotion, advertising, special orders etc. For this strategy, the company's product quality and brand is of importance to the company.
Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. $3,000 cash deposit in checking account. $20,000 bond investment due in 20 years. $5,000 U.S. Treasury bill due in 1 month. $200, 3-year loan to an employee. $1,000 of currency and coins. $500 of accounts receivable.
Answer:
Total Cash and Cash Equivalent = $8,000
Explanation:
Particulars Amount (in $) Reason
Checking Account 3,000 Readily realizable
U.S. Treasury Bill 5,000 Due in 1 month
Currency and Coins 1,000 They are cash itself
Total Cash and Cash 8,000
Equivalents
___________ is/are associated with collecting, storing, and distributing the product or service to buyers. They consist of warehousing, material handling, delivery operation, order processing, and scheduling.
a. Services
b. Inbound logistics
c. Outbound logistics
d. Operations
Answer:
Outbound logistics
Explanation:
Logistics is defined as the process by which inventory and other goods are moved from their source to locations of use or consumption.
Outbound logistics for a business is concerned with movement of finished goods from a company to the consumer. It is movement of goods outward.
Various activities involved in this are storing, collection, order processing, warehousing, and distribution.
On the other hand inbound logistics deals with inflow of required raw materials and equipment for production or operations.
The SP Corporation makes 48,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is: Direct materials $ 10.70 Direct labor $ 9.70 Variable manufacturing overhead $ 4.05 Fixed manufacturing overhead $ 5.00 An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Corporation for this motor is $27.55. If SP Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be: Multiple Choice $240,000 ($91,200) $343,200 148,800
Answer:
f the company buys the component, income will decrease by $148,800.
Explanation:
We will take into account only the avoidable costs.
Make in-house:
Direct materials $ 10.70
Direct labor $ 9.70
Variable manufacturing overhead $ 4.05
Total unitary cost= $24.45
Buy:
Price= $27.55
We need to determine the total cost of both options:
Make in-house= 24.45*48,000= $1,173,600
Buy= 27.55*48,000= $1,322,400
Difference= 1,173,600 - 1,322,400= $148,800
If the company buys the component, income will decrease by $148,800.
Argent Corporation has $60 million in current liabilities, $150 million in total liabilities, and $210 million in total common equity; Argent has no preferred stock. Argent’s total debt is $120 million. What is the debt-to-assets ratio? What is the debt-to-equity ratio?
Answer and Explanation:
The computation is shown below
Debt to asset ratio is
= Total debt ÷ total asset
= $120 million ÷ ($150 million + $210 million)
= $120 million ÷ $360 million
= 0.33
And, the debt to equity ratio is
= Total debt ÷ total equity
= $120 million ÷ $210 million
= 0.57
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Question 3
A situation where the level of output scale and average costs are all rising is called
Answer: Decreasing return to scale
Explanation:
Decreasing return to scale is a situation where the level of output, scale and average costs are all rising.
Decreasing return to scale happens when there's a rise in inputs that are involved in production process such as labour and capital which brings about a increase in output as well even though it's lesser.
Your company is a new major player in your technology industry. Surprisingly, this last year has seen your sales explode. Everyone's talking about you and your hot products. Your product designers are ready to roll out the new year's models to capitalize on this success. You have been named as the project manager for your company's trade show exhibit at this year's Consumer Electronics Show (CES), the largest trade show in the world. Marketing has booked half of a whole exhibit area for your company, so none of the company's former trade show materials are going to be reused.
As an individual, or in a group, construct the work breakdown schedule (WBS) for getting the exhibit designed, built, set up at CES and ready for opening day, complete with handouts and giveaways from marketing.
Explanation:
Marketing management is the act of choosing and targeting different markets and creating good relationships with them, regarding the resources of the company.
The marketing managers are the responsible for directing and entering a company to different markets by setting a marketing plans and strategies based on information allocated by studying the markets and defining the needs and wants of customers and come up with products that satisfy the needs of customers and gain the market.
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According to Richard Branson, the founder and owner of Virgin Company, one of the richest and famous entrepreneurs in the United Kingdom and worldwide, “A business has to be involving, it has to be fun and it has to exercise your creative instinct”.
In marketing we almost use the four P’s, (product, price, promotion, place), these four P’s represent a convenient way to summarize the main factors involved in any marketing strategy.
Often, marketing strategy will evaluate a marketing plan in order to specify how able the company to implement the strategy decided and meet the business objectives.
The purposes of marketing plan to help you state your vision, mission and values, it needs to include your marketing budget, marketing strategy and the advertising plan you will use to market your business, and you need to keep it flexible to be sure you rich you goals and inve
On January 1, a company purchased a five-year insurance policy for $3,300 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is:_______.
a. Debit Insurance Expense. $660, credit Prepaid Insurance, $660.
b. Debit Prepaid Insurance, $660; credit Insurance Expense, $660.
c. Debit Insurance Expense, $660; credit Prepaid Insurance, $2,640.
d. Debit Prepaid Insurance, $3,300; credit Cash, $3,300.
Answer:
a. Debit Insurance Expense. $660, credit Prepaid Insurance, $660.
Explanation:
The adjusting entry is shown below:
Insurance expense Dr $660 ($3,300 ÷ 5 years)
To Prepaid insurance
(Being the insurance expense is recorded)
here we debited the insurance expense as it increased the expense and credited the prepaid insurance as it decreased the assets
Therefore the option a is correct
Westbank Real Estate, Inc. owns 10 acres of forested land. Westbank wants the land cleared in order to build houses. Westbank emails a signed electronic memorandum to a representative of Hardell Lumber Co. offering to sell the mature trees and rich topsoil to Hardell for lumber and agricultural purposes. The electronic memorandum includes the parties' typed names, the consideration, the price, and a description of the property, lumber, and soil. Hardell replies via email to Westbank that it accepts Westbank's terms, electronically signs the memorandum, and will start removing the trees and soil next month. Before Hardell can begin clearing the land, Westbank changes its mind, wants to keep the land forested, and prevents Hardell from accessing the property claiming no contract has been formed.
2. Does the electronic agreement for the sale of trees and soil fall under the statute of frauds? (YES / NO)
3. Under which category? (CONTRACTS INVOLVING LAND/ CONTRACTS THAT BY THEIR TERMS CANNOT BE PREFORMED IN LESS THAN A YEAR AFTER THE DATE OF AGREEMENT/ A PROMISE TO ANSWER FOR A DEBT OF ANOTHER/ A PROMISE MADE IN CONSIDERATION OF MARRIAGE/ CONTRACTS FOR THE SALE OF GOODS OVER $500)
4. An electronic memorandum (DOES/ DOES NOT) satisfy the writing requirements for the Statute of Frauds.
5. Land is considered to be (REAL PROPERTY/ PERSONAL PROPERTY)
6. The definition of land includes (NO/ SOME/ ALL) physical objects that are permanently attached to the property.
7. Examples of physical objects that constitute land for purposes of the statute of frauds include (BUILDINGS/ FENCES/ TREES/ SOIL/ ALL OF THESE)
8. A written or electronic memorandum evidencing a contract will suffice provided that the writing is signed by (THE PERSON WHO IS ENFORCING THE CONTRACT/ THE PERSON AGAINST WHOM THE CONTRACT IS BEING ENFORCED)
9. Who signed the e-mails? (WESTBANK REAL ESTATE/ HARDELL LUMBER/ BOTH PARTIES)
10. What type of signature must be on an e-mail in order to enforce an electronic record? (A TYPED NAME/ AN OFFICIAL SIGNATURE/ A NOTARIZED SIGNATURE/ AN ENCRYPTED SIGNATURE)
11. Does the electronic memorandum have the parties' typed names? (YES/ NO)
12. Does the electronic memorandum describe the property involved?(YES/ NO)
13. Is it likely a court would find that the electronic memorandum satisfied the statue of frauds? (YES/ NO)
14. As a result, Hardell (WILL/ WILL NOT) likely be able to enforce the contract against Westbank.
Answer:
Westbank Real Estate, Inc. and Hardell Lumber Co.
2. Does the electronic agreement for the sale of trees and soil fall under the statute of frauds? (YES / NO)
3. Under which category? (CONTRACTS INVOLVING LAND/ CONTRACTS THAT BY THEIR TERMS CANNOT BE PERFORMED IN LESS THAN A YEAR AFTER THE DATE OF AGREEMENT/ A PROMISE TO ANSWER FOR A DEBT OF ANOTHER/ A PROMISE MADE IN CONSIDERATION OF MARRIAGE/ CONTRACTS FOR THE SALE OF GOODS OVER $500)
4. An electronic memorandum (DOES/ DOES NOT) satisfy the writing requirements for the Statute of Frauds.
5. Land is considered to be (REAL PROPERTY/ PERSONAL PROPERTY)
6. The definition of land includes (NO/ SOME/ ALL) physical objects that are permanently attached to the property.
7. Examples of physical objects that constitute land for purposes of the statute of frauds include (BUILDINGS/ FENCES/ TREES/ SOIL/ ALL OF THESE)
8. A written or electronic memorandum evidencing a contract will suffice provided that the writing is signed by (THE PERSON WHO IS ENFORCING THE CONTRACT/ THE PERSON AGAINST WHOM THE CONTRACT IS BEING ENFORCED)
9. Who signed the emails? (WESTBANK REAL ESTATE/ HARDELL LUMBER/ BOTH PARTIES)
10. What type of signature must be on an email in order to enforce an electronic record? (A TYPED NAME/ AN OFFICIAL SIGNATURE/ A NOTARIZED SIGNATURE/ AN ENCRYPTED SIGNATURE)
11. Does the electronic memorandum have the parties' typed names? (YES/ NO)
12. Does the electronic memorandum describe the property involved?(YES/ NO)
13. Is it likely a court would find that the electronic memorandum satisfied the statute of frauds? (YES/ NO)
14. As a result, Hardell (WILL/ WILL NOT) likely be able to enforce the contract against Westbank.
Explanation:
The memoranda exchanged between Westbank Real Estate and Hardell Lumber Co provides the evidence of their oral contract. The statute of fraud covers most oral contracts, especially those involving real property or sale of land. It is important to note that land includes all its permanent attachments.
Halifax Technologies primarily relies on 100% equity financing to fund projects. A good opportunity is available that will require $250,000 in capital. The Halifax owner can supply the money from personal investments that currently earn an average of 8.5% per year. The annual net cash flow from the project is estimated at $30,000 for the next 15 years. Alternatively, 60% of the required amount can be borrowed for 15 years at 9% per year. Using a before-tax analysis and setting the MARR equal to the WACC, determine which plan, if either, is better.
Answer:
100% equity financing from personal investments is better
Explanation:
100% equity financing option.
Expected annual return on the project = $30,000
Lost investment opportunity = 8.5% * 250,000 = $21,250.
Therefore incremental return from 100% equity financing option = $30,000 - $21,250 = $8,750 annually.
60% debt and 40% equity financing option.
Expected annual return on the project = $30,000
Lost investment opportunity = 8.5% * 40% * 250,000 = $8,500.
Interest rate on debt = 9% * 60% * 250,000 = $13,500.
Therefore incremental return = $30,000 - $8,500 - $13,500 = $8,000 annually.
Since the 100% financing gives a higher return than the debt-equity option, the 100% financing option is better.
It is estimated that the net cash flows to be received from the copyright will be $63,000, and its fair value is $59,850. The accumulated amortization at the end of 2021 was $15,435. Compute the amount of impairment, if any, to be recorded on December 31, 2021. (If there is a loss on impairment, then enter amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer:
The amount of the impairment = $3,150.
Explanation:
a) Data and Calculations:
Net cash flows = $63,000
Fair value of copyright = $59,850
Accumulated amortization = $15,435
Impairment gain = $3,150 ($63,000 - $59,850)
b) There is an impairment gain of $3,150 since the net cash flows is higher than the fair value of the copyright. Copyright is an intangible asset and impairment assessment must be conducted yearly.
Rocky Mountain Bottling Company produces a soft drink that is sold for a dollar. At production and sales of 1,000,000 units, the company pays $700,000 in production costs, half of which are fixed costs. At that volume, general, selling, and administrative costs amount to $320,000, of which $70,000 are fixed costs. What is the amount of contribution margin per unit
Answer:
contribution margin per unit = $0.40
Explanation:
total variable production costs = $350,000
total fixed production costs = $350,000
total variable S&A expenses = $250,000
total fixed S&A expenses = $70,000
total costs = $1,020,000
total fixed costs = $420,000
total variable costs = $600,000
sales price = $1
variable cost per unit = $600,000 / 1,000,000 = $0.60
contribution margin per unit = $1 - $0.60 = $0.40
Osgood Company, which applies overhead at the rate of 190% of direct material cost, began work on job no. 101 during June. The job was completed in July and sold during August, having accumulated direct material and labor charges of $27,000 and $15,000, respectively. On the basis of this information, the total overhead applied to job no. 101 amounted to:
Answer: $51300
Explanation:
From the question, we are informed that Osgood applies overhead at rate of 190% of direct cost material and we've been given the direct cost material as $27, 000. Therefore, the total overhead applied to the job will be:
= $27000 × 190%
= $27000 × 1.9
= $51300
Starting from potential output, if firms become less optimistic about the future and decide to decrease their investment in new capital, then this will shift the ______ curve to the left and generate ______. Group of answer choices Aggregate demand; a recessionary output gap Aggregate supply; a recessionary output gap Aggregate demand; an expansionary output gap Aggregate supply; an expansionary output gap
Answer:
Option A (aggregate demand; a recessionary output gap) is the right choice.
Explanation:
The overall production volume again for desired items and products that form the gross national product. The amount of money supply, government expenditures, social spending, including private consumption seems to be the aggregate demand. As investment drops significantly, AD further decreases and therefore also sometimes shifts. Owing to the whole total performance would become less than that of productive capacity. So, this clearly shows a recessionary annual deficit.The other options offered are not relevant to the scenario presented. So, the solution above is the right one.
A double-entry accounting system is an accounting system: Multiple Choice That records each transaction twice. That records the effect of each transaction in at least two accounts with equal debits and credits. In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits. That allows total credits to be greater than total debits. That allows total debits to be greater than total credits.
Answer:
That records the effect of each transaction in at least two accounts with equal debits and credits.
Explanation:
A double-entry accounting system is the accounting system in which it shows the impact of each transaction in terms of debit and credit. In this the amount of credit should be equivalent to the amount of credit that means both the amount should be equivalent to each other
hence, the second option is correct and the same is to be considered
which entity will meet the following requirements 1. unlimited number of owners 2. limited liability 3. self-employment tax on all income
Answer: Limited Liability Company (LLC)
Explanation:
Limited Liability Companies are allowed to have as many owners (members) as possible and all these owners have limited liability in case the business defaults on its debt obligations.
LLCs also pay self-employment tax on income as a replacement for the Medicare and Social Security taxes the members would have paid if they were employed by an entity.
Even though commercial airlines have excellent safety records, in the weeks following a crash, airlines often report a drop in the number of passengers, probably because people are afraid to risk flying. a) A travel agent suggests that since the Law of Averages makes it highly unlikely to have two plane crashes within a few weeks of each other, flying soon after a crash is the safest time. What do you think? b) If the airline industry proudly announces that it has set a new record for the longest period of safe flights, would you be reluctant to fly? Are the airlines due to have a crash?
Answer:
A) There is no such thing as the "Law of Averages." The overall probability of an airplane crash does not change due to recent crashes.
Explanation:
This is the complete question below;
Even though commercial airlines have excellent safety records, in the weeks following a crash, airlines often report a drop in the number of passengers, probably because people are afraid to risk flying. A travel agent suggests that since the Law of Averages makes it highly unlikely to have two plane crashes within a few weeks of each other, flying soon after a crash is the safest time. What do you think?
Choose the correct answer below.
A. There is no such thing as the "Law of Averages." The overall probability of an airplane crash does not change due to recent crashes.
B. The "Law of Averages" states that outcomes must even out in the short run. This means that the overall probability of an airplane crash is higher due to recent crashes.
C. The "Law of Averages" states that outcomes must even out in the short run. This means that the overall probability of an airplane crash is lower due to recent crashes.
D. The "Law of Averages" does not apply to this situation. The overall probability of an airplane crash does not change due to recent crashes.
We are informed from the question that commercial airlines have excellent safety records, in the weeks following a crash, airlines often report a drop in the number of passengers, probably because people are afraid to risk flying. A travel agent suggests that since the Law of Averages makes it highly unlikely to have two plane crashes within a few weeks of each other, flying soon after a crash is the safest time.
In this case, There is no such thing as the "Law of Averages." The overall probability of an airplane crash does not change due to recent crashes.
There was fact that the commercial airlines has excellent safety records in the past and there is a crash after the following week, all these doesn't have any connection with people flying soon after a crash because they think is the safest time.
Airline transportation has its pros and cons. The answers are given below;
My point is that There is nothing like the "Law of Averages." The total likelihood of an airplane crash will not be altered due to recent crashes. When one take a flight, it is usually done at your own risk.If the airline industry proudly announces that it has set a new record for the longest period of safe flights, I would not be be reluctant to fly. Every airline companies are known to have strict maintenance of their planes are its parts.
They ensure that their flights does not have any issue on the way, Even though things do happen, that does not mean I would be scare and not fly.
The airline is not due to crash. This is because the likelihood of a crash occurring is not due to the time a previous crash occurred. One should not be scared or afraid of flying.
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The income statement for the year 2015 of Fugazi Co. contains the following information: Revenues$70,000 Expenses: Salaries and Wages Expense$45,000 Rent Expense12,000 Advertising Expense10,000 Supplies Expense6,000 Utilities Expense2,500 Insurance Expense2,000 Total expenses77,500 Net income (loss)$ (7,500) After all closing entries have been posted, the Income Summary account will have a balance of
Answer:
$0
Explanation:
When the closing entries are recorded, so the net profit or net loss would be transferred to the retained earning account with the help of the closing entries
Therefore after closing entries posting, the balance in the income summary account would be zero and the same is to be considered
hence, the balance would be zero
At the beginning of 2015, Elixir Inc. has the following ledger balances:During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000 and $18,000 has been written off. At the end of the year, company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 2.5%. The ending balance in the Allowance for Bad Debts would be ________. Prepare all necessary journal entries.
Answer:
$$7,000
Explanation:
Calculation for the ending balance in the Allowance for Bad Debts
Using this formula
Allowance for Bad Debts Ending balance =
Debts - Write offs + Bad Debt Expense
Let plug in the formula
Allowance for Bad Debts Ending balance= $5,000 - $18,000 + (2.5%*$800,000)
Allowance for Bad Debts Ending balance= $5,000 - $18,000 + $20,000
Allowance for Bad Debts Ending balance = $$7,000
Therefore the ending balance in the Allowance for Bad Debts would be $7,000
The transactions listed below are typical of those involving New Books Inc. and Readers’ Corner. New Books is a wholesale merchandiser and Readers’ Corner is a retail merchandiser. Assume all sales of merchandise from New Books to Readers’ Corner are made with terms 3/10, n/30, and that the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended August 31.
a. New Books sold merchandise to Readers’ Corner at a selling price of $625,000. The merchandise had cost New Books $445,000.
b. Two days later, Readers’ Corner complained to New Books that some of the merchandise differed from what Readers’ Corner had ordered. New Books agreed to give an allowance of $11,000 to Readers’ Corner.
c. Just three days later, Readers’ Corner paid New Books, which settled all amounts owed.
Required:
1. Indicate the effect (direction and amount) of each transaction on the Inventory balance of Readers' Corner. (Enter all amounts as positive values.)
2. Prepare the journal entries that Readers’ Corner would record and show any computations. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
Readers' Corner
1. Effect of each transaction on the Inventory Balance:
a. $625,000 Purchase: Inventory balance is increased
b. $11,000 Allowance: Inventory balance is decreased.
c. $614,000 Payment: Inventory balance is not affected.
2.
a. Debit Inventory $625,000
Credit Accounts Payable (New Books) $625,000
To record the purchase of new books on account.
b. Debit Accounts Payable (New Books) $11,000
Credit Inventory $11,000
To record the allowance received from New Books.
c. Debit Accounts Payable (New Books) $614,000
Credit Cash Account $614,000
To record the payment on account.
Explanation:
Readers' Corner records its transactions with New Books Inc. by initially using the journal. The entries in the journal identify the accounts involved in each transaction. During the recording, the accounts to be debited and the ones to be credited in the general ledger are identified and recorded accordingly.
You are considering how to invest part of your retirement savings.You have decided to put $400,000 into three stocks: 61% of the money in GoldFinger (currently $28/share), 24% of the money in Moosehead (currently $73/share), and the remainder in Venture Associates (currently $9/share). Suppose GoldFinger stock goes up to $43/share, Moosehead stock drops to $67/share, and Venture Associates stock drops to $6 per share. a. What is the new value of the portfolio? b. What return did the portfolio earn? c. If you don't buy or sell any shares after the price change, what are your new portfolio weights?
Answer:
a. Number of shares of GoldFinger = 61%*400000/24
Number of shares of GoldFinger = 10166.6667
Number of shares of Moosehead = 24%*400,000/73
Number of shares of Moosehead = 1315.0685
Number of shares of Venture Associates = (1 - 61% - 24%) * 400,000/9
Number of shares of Venture Associates = 15% * 400,000/9
Number of shares of Venture Associates = 6666.6667
New value of the portfolio = 10166.6667*$43 + 1315.0685*$67 + 6666.6667*$6
New value of the portfolio = $437,166.6681 + $88,109.5895 + $40000.0002
New value of the portfolio = $565,276.2578
b. The return that the portfolio earn is = ($565,276.2578 - $400,000) / $400,000 = $165,276.2578 / $400,000 = 0.4131906445 = 41.32%
c. Weight of Goldfinger is now = (10166.6667*$43) / $565,276.2578
= $437166.6681 / $565,276.2578
= 0.7734
= 77.34%
Weight of Moosehead is now = (1315.0685*$67) / $565,276.2578
= $88109.5895 / $565,276.2578
= 0.15587
= 15.59%
Weight of Venture is now = 100% - 77.34 - 15.59%
= 7.07%
A cover letter should _____ a résumé. replace complement contradict be sent separately from
Answer:
complement
Explanation:
A cover letter or a Job application letter and the resume are sent together to potential employers. The cover letter details the position being applied for and the applicant's specific skills and experiences for that position. The letter allows the applicant to elaborate on why they are the best candidate for the job.
A resume provides the technical aspects of the applicant, but the cover letter show shows their personality. The applicant demonstrates their passion, interest, and why hiring them is the best decision in the cover letter. Therefore, a cover letter complements the resume.
All three of the $5000 billion GDP figures (Production, Income and Spending) are in ____________ dollars.
Answer: D inflation adjusted, real
Explanation:
The GDP calculation acquired in the flow chart of $5,000 billion were all done after adjusting for inflation which means that they were in real dollars.
Inflation adjusted GDP enables more effective comparison between different periods as inflation tends to inflate the prices of goods and services and can make one think that the economy has grown more than it actually has.
When the value of GDP is inflation adjusted, it can then be seen just how much the economy improved or shrank.
On September 15, 2021, Oliver's Mortuary received a $7,200, nine-month note bearing interest at an annual rate of 8% from the estate of Jay Hendrix for services rendered. Oliver's has a December 31 year-end. What adjusting entry will the company record on December 31, 2021
Answer: PLease see answer below
Explanation:
Date Account title and explanation Debit Credit
Dec 31 Interest receivable $168
2021 Interest revenue $168
Calculation
Interest =Principal x time x rate
= 7,200 x 8% x 3.5 /12(15th september to 31st December)
=$168
JBS Inc. recently reported net income of $3,500 and depreciation of $885. How much was its net cash provided (used) by operations, assuming it had no amortization expense, added $200 to inventories, sold none of its fixed assets, and had a $200 increase in accounts payable
Answer:
$4,385
Explanation:
Cash flow from Operating Activities
Net income $3,500
Adjustment for non-cash items :
Depreciation $885
Adjustment for Changes in Working Capital :
Increase in Inventory ($200)
Increase in accounts payable $200
Net cash provided (used) by operations $4,385
Despite its drastic downsizing a decade ago under a federally funded bailout and bankruptcy restructuring, General Motors again finds itself with too many U.S. factories that can turn out too many vehicles. GM's factory-utilization rate in North America averaged 95.1% over the past two years, below Ford's 111.9% and Toyota 's 101.4%. (Rates can exceed 100% when factories work a 3rd shift or schedule overtime work on weekends.) The auto industry often runs its factories dawn-till-dusk or even around the clock to boost their efficiency. Factory-utilization rates typically measure how much production capacity a plant uses based on a 16-hour workday. GM says its utilization rate is 100% on average when its round-the-clock truck and SUV lines are figured in with the relatively sleepy factories making cars. GM said it is working to "drive further improvements" in its plant utilization, including adding crossover SUVs to more factory lines. A plant in the Kansas City area that now makes only the Malibu is scheduled to begin assembling a small Cadillac SUV soon. But such a switch-over typically takes car makers several years of lead time, to order and install new assembly-line equipment and tooling.
Answer:
The question is actually missing (see attached image):
the answer is:
D. Less than that of its competitors.
Explanation:
Personally, I believe that GM is an extremely spoiled child that refuses to assume responsibility for its continuous and never ending mistakes. GM has either filed for bankruptcy or threatened to do so twice in the last 30 years or so, and every time the US government has to bail them out. But GM keeps doing things wrong.
It doesn't matter if you like their cars or not, GM is terribly managed. No other company in US history has received so much financial aid from the government and continued to lose money and work inefficiently. The problem is that whenever things go wrong, stockholders lose their money but the executives keep getting tens of millions of dollars. If a company is managed in such a disastrous way, their top management shouldn't get paid that much.
A car factory costs a lot of money, and not using it efficiently is outrageous considering GM's history. If they had never received a cent from the government, then its only their problem. But the government lost $11.2 billion on GM's last bailout. During the 1980s GM lobbied fro the government to impose import quotas on Japanese cars because they were better cars and GM couldn't compete against them. So whenever they do things wrong, big brother has to help them. During the last couple of years GM had to sell most of its foreign operations in order to get cash, and you generally do not make money by selling your assets.
The manager of Triks Burgers keeps track of the number of customers served at different periods of the day in an attempt to plan a schedule for workers that matches the demand for the restaurant's products. By using this tracking system, the manager of Triks Burgers is utilizing ________ control.
Answer:
"Output" is the right approach.
Explanation:
Performance monitoring would be an output control method where current output measures are opposed to scheduled output to detect issues at the job core. That's the method used to analyze the production, which would be the end outcome or the facilities that an organization offers. It must be clearly explained that the production or the final result is the only component to be evaluated by the client.