Answer:
$50
Explanation:
The computation of the selling price of each purse is shown below:
As we know that
Selling price = Total value ÷ number of purses sold
where,
Total value is
= Cost of the purse × number of purses sold + producer surplus
= $35 × 12 purses + $180
= $600
And, the number of purses sold is 12
So, the selling price of each purse is
= $600 ÷ 12 purses
= $50
Park Company's perpetual inventory records indicate the following transactions in the month of June: Units Cost/Unit Inventory, June 1 200 $3.20 Purchases: June 3 200 3.50 June 17 250 3.60 June 24 300 3.65 Sales: June 6 300 June 21 200 June 27 150a. Compute the cost of goods sold for June and the inventory at the end of June, using each of the following cost flow assumptions:1. FIFO2. LIFO3. Average costb. If Park Company uses IFRS, which of the previous alternatives would be acceptable, and why?
Answer:
1. FIFO : Cost of Goods Sold (650 units):
June 6 300 units: 200 units at 3.20 640
100 units at 3.50 350
June 21 200 units: 100 units at 3.50 350
100 units at 3.60 360
June 27 150 units: 150 units at 3.60 540
total 2,240
(200 x3.20) + [(200 x 3.50) + (250 x 3.60) + (300 x 3.65)] - 2,240 =
= 640 + 2,695 - 2,240 = 1,095
2) LIFO : Cost of Goods Sold (650 units):
June 6 300 units: 100 units at 3.20 320.0
200 unit at 3.50 700.00
June 21 200 units at 3.60 720.00
June 27 150 units at 3.65 547.50
2287.50
Ending Inventory (300 units):
640 + 2695 - 2287.50 = 1047.50
100 units at 3.20 = 320.00
50 units at 3.60 = 180.00
150 units at 3.65 = 547.50
1047.50
3. Average Cost :
June 1 - Beginning Inventory 200 units at 3.20 640
June 3 - Purchases 200 units at 3.50 700
June 3 - Balance 400 units at 3.35 1340
June 6 - Sales 300 units at 3.35 1005
June 6 - Balance 100 units at 3.35 335
June 17 - Purchases 250 units at 3.60 900
June 17 - Balance 350 units at 3.53 1235
June 21 - sales 200 units at 3.53 706)
June 21 - Balance 150 units at 3.53 529
June 24 - Purchase 300 units at 3.65 1095
June 24 - Balance 450 units at 3.61 1624
June 27 - Sales 150 units at 3.61 541
June 30 - Balance 300 units at 3.61 1083
Cost of Goods Sold 650 units 1005 + 706 +541
2252
Ending Inventory (300 units at 3.61) 1083
Rounded
Alfonso prefers only to hire Latino workers his auto body shop because they "fit in" easier with his 12 employees. During a busy season, Alfonso hires three extra workers to help keep up with business, then lets them go when the busy season is over. Which true statement best suits this situation? ("Discriminate" in this context means to make an employment decision about employees based on the characteristics described in the text.)
Answer: d. May not discriminate, subject to time lapse
Explanation:
Alphonso in this scenario may not discriminate by hiring a Latino because his worry is that they will be unable to fit in with his permanent workers. The extra workers are temporary workers who will be soon gone so there is no need for them to fit in that with the permanent workers so Alphonso may not discriminate based on this.
etermine Due Date and Interest on Notes Determine the due date and the amount of interest due at maturity on the following notes. When calculating interest amounts, assume there are 360 days in a year. Round intermediate calculations to 4 decimal places, and round your final answers to the nearest whole dollar. Date of Note Face Amount Interest Rate Term of Note a. January 15 $51,690 10 % 30 days b. April 1 16,370 9 90 days c. June 22 23,700 7 45 days d. August 30 23,265 12 120 days e. October 16 20,795 8 50 days
Answer:
Determination of the Due Date and the Amount of Interest due at Maturity:
Due Date Interest at Maturity
a) February 15 $431 ($51,690 x 10% x 30/360)
b) July 1 $368 ($16,370 x 9% x 90/360)
c) August 7 $207 ($23,700 x 7% x 45/360)
d) December 30 $931 ($23,265 x 12% x 120/360)
e) December 6 $231 ($20,795 x 8% x 50/360)
Explanation:
a) Schedule of
Date of Note Face Amount Interest Rate Term of Note
a. January 15 $51,690 10 % 30 days
b. April 1 16,370 9 90 days
c. June 22 23,700 7 45 days
d. August 30 23,265 12 120 days
e. October 16 20,795 8 50 days
b. Interest on Notes is calculated using the annual rate of interest. To arrive at the interest amount, the period of use of the notes would be applied in order to annualize the rate.
c. To get the maturity date, the period of the note is added to the date on which the note was dated.
You want to have $1 million in your savings account when you retire. You plan on investing a single lump sum today to fund this goal. You are planning on investing in an account which will pay 7.5 percent annual interest. Which of the following will reduce the amount that you must deposit today if you are to have your desired $1 million on the day you retire? I. Invest in a different account paying a higher rate of interest. II. Invest in a different account paying a lower rate of interest. III. Retire later. IV. Retire sooner.
Answer:bruh
Explanation:
Tony saved enough money to place $125,500 in an investment generating 10% compounded monthly. He wants to collect a monthly income of $1,350, at the beginning of each month, for as long as the money lasts. How many months will Tony have this income coming to him?
A.165.
B.145.
C.192.
D.162.
Answer:
The answer is 162 months, option (D)
Explanation:
Solution
Given that:
Tony saved an amount of money =$125,500
Investment generates a =10% compounded monthly
A monthly income of =$1350
Now, we have to find How many months will Tony have this income coming to him
Thus
The current income value will be equal to = $125,500.
So,
125,500 = 1350 + 1350/1.0077 + 1350/1.0077^2 + 1350/1.0077^3 + ... + 1350/1.0077^n
125,500 = 1350 * 1.0077 / 0.0077 * ( 1 - (1/1.0077)^n )
Therefore n= 162 months
A machine is purchased on January 1, 2018, for $102,000. It is expected to have a useful life of eight years and a residual value of $11,000. The company closes its books on December 31. Under the double-declining balance method, what is the total amount of depreciation to be expensed during the 2019
Answer:
Depreciation expense 2019= $17,062.5
Explanation:
Giving the following information:
Purchase price= 102,000
Useful life= 8
Salvage value= 11,000
To calculate the depreciation expense under the double-declining balance, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
2018= 2*[(102,000 - 11,000)/8]= $22,750
2019= 2*[(91,000 - 22,750)/8]= $17,062.5
Mesa Corp. allocates overhead to production on the basis of direct labor costs. Mesa’s total estimated overhead is $450,000 and estimated direct labor is $180,000. Determine the amount of overhead applied to a job which used $20,000 of direct labor.
Answer:
Allocated MOH= $50,000
Explanation:
Giving the following information:
Mesa’s total estimated overhead is $450,000 and estimated direct labor is $180,000. Determine the amount of overhead applied to a job which used $20,000 of direct labor
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 450,000/180,000
Predetermined manufacturing overhead rate= $2.5 per direct labor dollar
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 2.5*20,000
Allocated MOH= $50,000
Assume Luis spends his entire income on X and Y, and his indifference curves have the usual convex shape. If Luis maximizes his utility, then:
a. there are other bundles that are preferred at the current price ratio.
b. the slope of his indifference curve is smaller than the slope of his budget line.
c. he spends his entire available income.
d. the slope of his indifference curve is greater than the slope of his budget line.
Answer:
c. he spends his entire available income.
Explanation:
If Luis wants to maximize his utility, he will need to spend all his money and locate himself in the point of the curve that is tangent to his personal budget line. At this point, the curve's slope is equal to the price ratio of the goods.
The marginal rate of substitution at this point is equal to the slope of the curve, i.e. how much of a product you have to give up in order to gain more utility from another product.
The product development team for a company’s new social media app is creating a business case and analyzing the results. They have discovered that the product will make money. What other question should they answer?
Answer:
The target audience and how to get them
Explanation:
After creating a business case and analyzing the results the level of profitability or non-profitability of the business can be determined but i other to be truly profitable the next question should be ; 'who is our target audience' and also where can we actively engage them i.e what platforms can we find them.
The product development team in the question after developing a new social media app for the business should try and figure out who the target audience should be and also how to get them into using the app created
Athena Company provides employee health insurance that costs $15,400 per month. In addition, the company contributes an amount equal to 4% of the employees' $154,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a:
Answer:
The entry to record accrued benefits would be a Debit to Employee Benefits Expense of $21,560
Explanation:
In order to calculate The entry to record the accrued benefits for the month we would have to calculate the following formula:
Accrued Benefits= Health Insurance Cost+ (Gross Salary × Percentage Contributable)
Accrued Benefits=$15,400+($154,000×4%)
Accrued Benefits=$15,400+$6,160
Accrued Benefits=$21,560
The entry to record accrued benefits would be a Debit to Employee Benefits Expense of $21,560
Porche, Inc., manufactures and sells two products: Product D4 and Product N0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product D4 100 5.0 500
Product N0 700 2.0 1,400
Total direct labor-hours 1,900
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product D4 Product N0 Total
Labor-related DLHs $ 32,414 500 1,400 1,900
Machine setups setups 13,445 300 200 500
Order size MHs 415,905 4,200 4,300 8,500
$ 461,764
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:___________
a. $17.06 per DLH
b. $44.82 per DLH
c. $67.23 per DLH
d. $923.53 per DLH
Answer:
Predetermined manufacturing overhead rate= $17.06 per direct labor hour
Explanation:
Giving the following information:
Activity Cost Pools Activity Total
Labor-related DLHs $32,414 1,900
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 32,414/1,900
Predetermined manufacturing overhead rate= $17.06 per direct labor hour
On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $412,184 and has an expected economic life of five years. Aqua expects the residual value at December 31, 2024, to be $50,000. Negotiations led to Maywood guaranteeing a $70,000 residual value. Equal payments under the lease are $100,000 and are due on December 31 of each year with the first payment being made on December 31, 2021. Maywood is aware that Aqua used a 5% interest rate when calculating lease payments.
Required:
1. Prepare the appropriate entry for Maywood on January 1, 2021, to record the lease.
2. Prepare all appropriate entries for Maywood on December 31, 2021, related to the lease.
Answer:
1/1/2021
Dr Right of use Asset 371,049
Dr Lease Payable 371,049
12/31/2021
Dr Interest Expense 18,552
Dr Lease Payable 81,448
Cr Cash 100,000
12/31/2021
Dr Amortization Expense 92,762
Cr Right of use Asset 92,762
Explanation:
Maywood Hydraulics
First step is to Calculate for PMT, FV and PV
N= 4, I= 5, PMT=100,000, FV=20,000, PV= 371,049
1/1/2021
Dr Right of use Asset 371,049
Dr Lease Payable 371,049
12/31/2021
Dr Interest Expense 18,552
(371,049*.05)
Dr Lease Payable 81,448
(100,000-18,552)
Cr Cash 100,000
12/31/2021
Dr Amortization Expense 92,762
Cr Right of use Asset 92,762
[ (371,049-0)/4 years]
Melissa recently paid $870 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $400 fee to register for the conference, $260 per night for three nights’ lodging, $120 for meals, and $425 for cab fare. (Leave no answers blank. Enter zero if applicable. Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) b. Suppose that while Melissa was on the coast, she also spent two days sightseeing the national parks in the area. To do the sightseeing, she paid $1,010 for transportation, $1,055 for lodging, and $495 for meals during this part of her trip, which she considers personal in nature. What amount of the total costs can Melissa deduct as business expenses?
Answer:
$2,535
Explanation:
you can deduct only business related costs:
50% of the money spent on meals = $120 x 50% = $60100% of transportation expenses = $870 + $425 = $1,295100% lodging expenses = $780100% of the registration fee = $400total deductions = $2,535Expenses that are not considered business related, e.g. sightseeing, cannot be deducted as business expenses.
Chloe makes $500 per week and spends all her income on books and tea. Books cost $25 each, and Chloe buys 16 each week. Tea costs $5 per cup, and Chloe buys 20 cups. When Chloeâs income falls to $450 per week, she cuts her consumption of books by 3 books and purchases 5 more cups of tea. Based on these figures, indicate whether each of the following statements is true or false.
a. Books are an inferior good.
1. True
2. False
b. Tea is a necessity.
1. True
2. False
c. Books are a luxury good, and tea is an inferior good.
1. True
2. False
Answer:
hi i reallly tried but dont want to give an answer that is wrong
plz forgive me
god bless u
Explanation:
Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 55%, which will result in annual interest charges of $152,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $452,000 on sales of $4,000,000, and it expects to have a total assets turnover ratio of 3.6. Under these conditions, the tax rate will be 40%. If the changes are made, what will be the company's return on equity
Answer:
36%
Explanation:
For the computation of the company's return on equity first we need to follow some steps which is shown below:-
Step 1
Earnings before tax = EBIT - Interest
= $452,000 - $152,000
= $300,000
Step 2
Earnings after interest and taxes = Earnings before tax - Tax
= $300,000 - ($300,000 × 40%)
= $300,000 - $120,000
= $180,000
Step 3
Asset turnover ratio = Total revenue ÷ Total assets
3.6 = $4,000,000 ÷ Total assets
Total assets = $1,111,111.11
Step 4
Equity ratio = 1 - Debt ratio
= 1 - 0.55
= 0.45
Step 5
Total Equity = Equity ratio × Total assets
= 0.45 × $1,111,111.11
= $500,000
and finally
Return on Equity = Net income ÷ Equity
= $180,000 ÷ $500,000
= 0.36
or
= 36%
A company commences business on 1 April. It buys the following units of inventory.
Date
1 April
1 September
1 December
Quantity
200
400
200
Unit cost
£250
£200
£300
During the year, it sells 500 units at £550 each.
What is the gross profit for the year using the first in first out (FIFO) method of inventory
valuation?
B £155,000
C £156,250
A £85,000
D £165,000
Answer:
D £165,000
Explanation:
The computation of gross profit for the year using the first in first out (FIFO) method of inventory valuation is shown below:-
As we know that
Gross profit = Sales - the cost of goods sold
where
Sales is
= 500 units × £550
= £275,000
And, the cost of goods sold is
= 200 units × £250 + 300 units × £200
= £50,000 + £60,000
= £110,000
We considered only 500 units as these sold units are sold
And, this is a first in first out method so we pick the first date units only
So, the gross profit is
= £275,000 - £110,000
= £165,000
Sub Sandwiches of America made the following expenditures related to its restaurant.
1. Replaced the heating equipment at a cost of $250,000.
2. Covered the patio area with a clear plastic dome and enclosed it with glass for use during the winter months. The total cost of the project was $750,000.
3. Performed annual building maintenance at a cost of $24,000.
4. Paid for annual insurance for the facility at $8,800.
5. Built a new sign above the restaurant, putting the company name in bright neon lights, for 9,900.
6. Paved a gravel parking lot at a cost of $65,000.
Required:
Sub Sandwiches of America credits cash for each of these expenditures. Select the account it debits for each.
Answer:
1. Heating Equipment
2. Premises
3. Maintenance Expense
4. Prepaid Insurance
5. Intangible Asset ; Logo
6. Premises
Explanation:
1. Replacement of heating equipment is substantial hence it is capitalized to the Heating Equipment Account.
2. The project is capitalized to the Premises Account as it form part of premises.
3. Annual Building maintenance is a revenue expenditure not capitalized.
4. An Asset Insurance Prepaid for future economic benefits to be realized is recognized.
5. The new sign would result in inflow of economic benefit and is non-tangible hence Intangible Asset is recognized.
6. Work done is capitalized in the Premises Account
A company must decide on the type on equipment to buy in order to manufacture a new product line. The company can purchase an all-purpose machine, with fixed costs amounting to $20,000 per year, and it will cost $40 / unit to produce the new line on this machine. It can also buy a special-purpose machine, with fixed costs of $50,000 per year, and the per unit cost on this machine is $30. What is the break-even quantity between the two machines
Answer:
The indifference point is 3,000 units
Explanation:
Giving the following information:
All-purpose machine:
Fixed costs= $20,000 per year
Unitary variable cost= $40
Special-purpose machine:
Fixed costs= $50,000 per year
UNitary variable cost= $30
We need to determine the unit's production point where the two machines are indifferent. First, we need to structure the total cost formulas:
All-purpose= 20,000 + 40x
Special-purpose= 50,000 + 30x
x= number of units
Now, we equal them:
20,000 + 40x = 50,000 + 30x
10x = 30,000
x= 3,000
The indifference point is 3,000 units
Prove:
All-purpose= 20,000 + 40*3,000= $140,000
Special-purpose= 50,000 + 30*3,000= $140,000
A medical group practice is considering offering a new service with risk that is greater than the current risk of the business. When evaluating this investment, the decision maker should:
a. increase the internal rate of return of the project to reflect the greater risk
b. increase the net present value of the project to reflect the greater risk
c. reject the project because its acceptance would increase the risk of the business
d. ignore the risk differential if the project represents only a small fraction of the total assets of the firm
e. increase the cost of capital applied to the project to make it higher than the business's corporate cost of capital
Answer:
e. increase the cost of capital applied to the project to make it higher than the business's corporate cost of capital
Explanation:
When a project is more risky compared to the current risk of the business, the business shouldn't use the company's weighted average cost of capital but use a cost of capital higher than the company's wacc to reflect the riskiness of the project. .
Net present value is the present value of after tax cash flows from an investment less the amount invested.
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
NPV and IRR are determined by amount invested in the project, cost of capital and cash inflows. It cannot be randomly manipulated.
I hope my answer helps you
To test whether a particular diversification move has good prospects for creating added shareholder value, corporate strategists should use the A. profit test, the competitive strength test, and the industry attractiveness test B. strategic fit test, the industry attractiveness test, and the dividend effect test C. barrier to entry test, the competitive advantage test, and the stock price effect test D. the industry attractiveness test, the cost-of-entry test, and the better-off test E. better-off test, the competitive advantage test, and the profit expectations test g
Answer:
The answer is option (d) the industry attractiveness test, the cost-of-entry test, and the better-off test.
Explanation:
Solution
The better-off test is important for diversification decisions. Better off test tells whether their is one time or continuous competitive advantage in some form due to diversification.
Industry attractiveness is important to access profitability and ability to win in the industry .
Cost to entry is important to access whether the firm has resources to invest in diversification .
Answer:
option D
Explanation:
Jane, Joseph and John are supporting their father who lives in a separate apartment. Their contribution towards his support is 10%, 35% and 55%, respectively. In a multiple support agreement, who would be entitled to claim the father as a dependent?
Answer:
Joseph or John
Explanation:
In order to claim a person as a dependent in order to be eligible for tax benefits, one must contribute with more than 10% of the person's support.
In this case, only Joseph and John contribute with more than 10% and therefore only Joseph or John would be entitled to claim their father as a dependent.
E-Eyes just issued some new preferred stock. The issue will pay an annual dividend of $14 in perpetuity, beginning 19 years from now. If the market requires a return of 4.4 percent on this investment, how much does a share of preferred stock cost today
Answer:
Price of stock = $181.78
Explanation:
PV of dividend in year 13
PV =A×(1- (1+r)^(-n)/r )
PV of dividend in (year 13) = 14/(0.044=318.18
PV of dividend in year 0
PV = Div× (1+r)^(-n)
Dividend in year 13, r-interest rate, n- number of years
PV in year 0 = 318.1818182 × 1.044^(-13)= 181.78
Price of stock = $181.78
Similar to stock prices, bond values are derived as the discounted value of all cash flows received from bond ownership in exchange for the bond's price. The two main cash flows an investor receives in exchange for purchasing a bond are:
Answer: b. Interest or Coupon Payments (PMT) throughout the bond's life expand and the repayment of the principal or Face Value at the bond's maturity (FV).
Explanation:
For most bonds, a bond holder receives interest payments from the bond issuer in terms of coupon payments for the duration of the life of the bond. The coupon payment is a steady payment based on the par value of the bond.
When the bond matures, the bond holder receives the Principal/Face Value of the bond back. This value of usually the Par value of the bond regardless of how much the bond holder bought the bond for.
Go through the three components of democratic capitalism and picture an economy without each one. What happens to freedom, fairness, and moral and ethical behavior? Which part of the system seems weakest today? What can be done about it?
Explanation:
The three components of democratic capitalism are: private ownership of the means of production, the labor market and the exchange of products in a market whose profit is obtained.
When imagining an economic context without free companies, the scarcity would be increasing and there would be an economic slowdown that would impact the lives of thousands of people and lead to an increase in poverty, hunger and starvation.
Such problems could also happen without a freely elected government.
Therefore, ethical and moral values must be considered as the basis of any economic system, so that all market mechanisms flow in order to satisfy the needs of citizens with regard to products, services, employment and dignity.
Statements in an employee handbook:Group of answer choices may be interpreted as being part of the employment contract.are merely statements of existing policies and cannot form part of the employment contract.are always part of the employment contract.are not part of the employment contract unless the employee handbook is clipped to the contract.
Answer:
None of these
Explanation:
In simple words, Employee handbook refers to the elaborate affirmation of the employees ' private initiatives. It can be seen as part of an agreement for array of high-will job opportunities.
Such a document can be seen as a valuable tool for every employer as well as employee communications. In a prescribed document it provides advice and direction regarding the history, mission , values, policies , procedures and productivity of the company.
Hancock Medical Supply Co., earned $85,000 of revenue on account during Year 1, its first year of operation. During Year 1, Hancock collected $67,600 of cash from its receivables accounts. The company did not write-off any uncollectible accounts. It estimates that it will be unable to collect 1% of revenue on account. What is the net realizable value of receivables that will be reported on the balance sheet at December 31, Year 1
Answer:
realizable value of the receivable = $16,550
Explanation:
First of all let us lay out the important information to be used in calculation clearly:
earnings = $85,000
receivables collected = $67,600
uncollectible amount = 1% of $85,000 = 0.01 × 85,000 = $850
Net realizable value of receivables is the total amount to be received, but that has not yet been received, and is not classified as uncollectible amount. This is calculated thus:
Net value of receivable = earnings - uncollectible amount - receivable collected.
= 85,000 - 850 - 67,600 = $16,550.
Note that the receivable collected is subtracted from the total earnings because it is no longer classified as receivable, once it has been received, hence whatever remains of the total earnings that has not bee received make up receivables.
Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight-line basis since 2017, when it was acquired at a cost of $10.8 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the beginning of 2021.Required:
Prepare the appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate.
Answer:
The appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate would be as follows:
Amortization Expense Dr. 3 million
Patent Cr. 3 million
Explanation:
In order to Prepare the appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate we would have to make the following calculations:
Calculation after the Change:
Original Cost =$10.8 million
Annual Amortization (Old) =$10.8 million/9 = $1.2 million
Amortization till Date (2017 - 2021) = 1.2*4 = 4.8 million
Unamortized Value = 10.8 - 4.8 = 6 million
Remaining Life = 6 - 4 = 2 Years
New Amortization = Unamortized Value/Remaining Life = 6/2 = 3 million
Therefore, the appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate would be as follows:
Amortization Expense Dr. 3 million
Patent Cr. 3 million
Exercise 9-6 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company estimates its bad debts as 0.30% of its annual credit sales of $931,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $466 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions.
Answer:
Refer to the below for explanation.
Explanation:
December 31,
Amount estimated = Annual credit sales × 0.30.%
= $931,000 × 0.30%
= $2,793
Please see journal entries below;
December 31, Bad debts expense A/c ....................Dr. $2,793
To allowance for doubtful accounts .......Cr $2,793
February 1, Allowance for doubtful A/c........ Dr. $466
To accounts receivable P.Park..........Cr $466
June 5, Accounts receivable P. Park account......... Dr $466
To allowance for doubtful accounts......... Cr $466
June 5,. Cash A/c..... Dr $466
To accounts receivable P.Park.............Cr $466
Coronado Company had the following department information for the month: Total materials costs $55000 Equivalent units of materials 10000 Total conversion costs $81000 Equivalent units of conversion costs 15000 What is the total manufacturing cost per unit
Answer:
10.9 per unit
Explanation:
Total manufacturing cost per unit= Material cost per unit + Conversion cost per unit
Material Cost per Unit= Total materials cos / Equivalent units of materials
Material cost per unit = 55000 / 10000 = 5.5
Conversion cost per unit = Total conversion costs / Equivalent units of conversion costs
Conversion cost per unit = 81,000 / 15000 = 5.4
Hence, Total manufacturing cost per unit = 5.5 +5.4 = 10.9 per unit
Stilley Corporation had earnings after taxes of $438,000 in 20X2 with 200,000 shares outstanding. The stock price was $42.10. In 20X3, earnings after taxes declined to $208,000 with the same 200,000 shares outstanding. The stock price declined to $28.30. a. Compute earnings per share and the P/E ratio for 20X2. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) b. Compute earnings per share and the P/E ratio for 20X3. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)\
Answer:
a) Earnings Per Share for 20X2 = 2.19
P/E ratio for 20X2 = 19.22
b) Earnings Per Share for 20X3 = 1.04
P/E ratio for 20X3 = 27.21
Explanation:
a) Compute earnings per share and the P/E ratio for 20X2.
The compute the earnings per share use the following:
Earnings Per Share for 20X2 = (Earnings after tax-Preference Dividend) / shares outstanding
[tex] = \frac{438,000 - 0}{200,000} = 2.19 [/tex]
Earnings Per Share for 20X2 = 2.19
Then find P/E ratio:
P/E ratio for 20X2 = Market Price per share / Earnings Per Share
[tex] \frac{42.10}{2.19} = 19.224 [/tex]
P/E ratio for 20X2 = 19.22
b) Compute earnings per share and the P/E ratio for 20X3.
The compute the earnings per share use the following:
Earnings Per Share for 20X3 =(Earnings after tax-Preference Dividend) / shares outstanding
[tex] = \frac{208,000 - 0}{200,000} = 1.04 [/tex]
Earnings Per Share for 20X3 = 1.04
Then find P/E ratio:
P/E ratio for 20X3 = Market Price per share / Earnings Per Share
[tex] \frac{28.30}{1.04} = 27.21 [/tex]
P/E ratio for 20X3 = 27.21