Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2018, the company's board of directors declares a 20 percent stock dividend. This stock dividend will be distributed on January 20, 2019 to the stockholders of record on January 15, 2019. The market price of the company's stock is $10 per share on December 31, 2018.
Complete the necessary journal entry to record the declaration of the stock dividend by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns
list Journal entry worksheet
Mustang Corporation had 100,000 shares of $2 par value common stock outstanding On December 31, 2018, the company's board of directors declares a 20 percent stock dividend. This stock dividend will be distributed on January 20, 2019 to the stockholders of record on January 15, 2019. The market price of the company's stock is $10 per share on December 31, 2018
Note Enter debit before credits
Date General Journal Debit Credit
Dec 31
Record entry Clear entry View General journal
Answer:
1. Dec 31, 2018
Dr Retained Earnings $200,000
Cr Common Stock dividend distributable $40,000
Cr Paid in Capital in Excess of par $160,000
2. Jan 15 , 2019
No Journal Entry is required
3. Jan 20 , 2019
Dr Common Stock dividend distributable $40,000
Cr Common Stock $40,00
Explanation:
Preparation of the necessary journal entry to record the declaration of the stock dividend
1. Dec 31, 2018
Dr Retained Earnings $200,000
(100,000 Shares * 20%* $ 10)
Cr Common Stock dividend distributable $40,000
(100,000 Shares * 20%* $2)
Cr Paid in Capital in Excess of par $160,000
($ 200,000 - $ 40,000 )
2. Jan 15 , 2019
No Journal Entry is required
3. Jan 20 , 2019
Dr Common Stock dividend distributable $40,000
Cr Common Stock $40,000
(100,000 Shares * 20%* $2)
Lyon Manufacturing Company produces products A, B, C, and D through a joint process. The joint costs amount to $100,000. Product Units Produced Sales Value at Split-Off Additional Costs of Processing Sales Value After Processing A 1,500 $10,000 $2,500 $15,000 B 2,500 $30,000 $3,000 $35,000 C 2,000 $20,000 $4,000 $25,000 D 3,000 $40,000 $6,000 $45,000 If B is processed further, profits will: Group of answer choices
Answer:
Increase by $2,000.
Explanation:
Calculation to determine what the profit will be if B is processed further,
First step is to calculate the Inremental Revenue
Inremental Revenue,=
$35,000 - $30,000
Inremental Revenue = $5,000
Now let calculate B profit if processed further
Using this formula
B profit if processed further=Inremental Revenue- Incremental Cost
Let plug in the formula
B profit if processed further=$5,000-$3,000
B profit if processed further= $2,000 Increase
Therefore If B is processed further, profits will Increase by $2,000.
For each of the following situations, decide whether the unemployment that occurs is a result of cyclical, frictional, or structural changes.
Items (7 items) (Drag and drop into the appropriate area below)
A new college graduate takes three months to find his first job.
Two hundred automobile workers lose their jobs as a result of a permanent reduction in the demand for automobiles.
Large numbers of workers lose their jobs as the economy goes into a downturn.
A financial analyst quits her current job to look for a better one
Answer:
frictional
structural changes.
Cyclical
frictional
Explanation:
Structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition . Structural unemployment tends to be permanent.
Frictional unemployment is the period of time a person is unemployed from the time he leaves his current job and the time he gets another job.
Cyclical unemployment occurs as a result of fluctuations in the economy. In a downturn unemployment is high and in a boom, unemployment is low.
The comparative statements of Carla Vista Co. are presented here.
CARLA VISTA CO.
Income Statements
For the Years Ended December 31
2017 2016
Net sales $1,897,540 $1,757,500
Cost of goods sold 1,065,540 1,013,000
Gross profit 832,000 744,500
Selling and administrative expenses 507,000 486,000
Income from operations 325,000 258,500
Other expenses and losses
Interest expense 24,000 22,000
Income before income taxes 301,000 236,500
Income tax expense 94,000 75,000
Net income $ 207,000 $ 161,500
CARLA VISTA CO.
Balance Sheets
December 31
Assets 2017 2016
Current assets
Cash $ 60,100 $ 64,200
Debt investments (short-term) 74,000 50,000
Accounts receivable 124,800 109,800
Inventory 128,000 117,500
Total current assets 386,900 341,500
Plant assets (net) 659,000 530,300
Total assets $1,045,900 $871,800
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 167,000 $152,400
Income taxes payable 45,500 44,000
Total current liabilities 212,500 196,400
Bonds payable 230,000 210,000
Total liabilities 442,500 406,400
Stockholders’ equity
Common stock ($5 par) 290,000 300,000
Retained earnings 313,400 165,400
Total stockholders’ equity 603,400 465,400
Total liabilities and stockholders’ equity $1,045,900 $871,800
All sales were on account. Net cash provided by operating activities for 2017 was $251,000. Capital expenditures were $135,000, and cash dividends were $59,000.
Compute the following ratios for 2017. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)
(a) Earnings per share $
(b) Return on common stockholders’ equity
(c) Return on assets
(d) Current ratio
(e) Accounts receivable turnover
(f) Average collection period
(g) Inventory turnover
(h) Days in inventory
(i) Times interest earned
(j) Asset turnover
(k) Debt to assets ratio
(l) Free cash flow
Answer:
Carla Vista Co.
(a) Earnings per share = $3.57
(b) Return on common stockholders’ equity = 34.31%
(c) Return on assets = 19.79%
(d) Current ratio = 1.82
(e) Accounts receivable turnover = Net Sales/Average Receivable = 16.18 times
(f) Average collection period = 365 Days /Average Receivable Turnover ratio = 22.56 days
(g) Inventory turnover = Cost of goods sold/Average Inventory = 8.68 times
(h) Days in inventory = 42.05 days
(i) Times interest earned = 3.46 times
(j) Asset turnover = 1.81
(k) Debt to assets ratio = Total Debt/Total Assets = 42.31%
(l) Free cash flow = Cash from Operations - Capital Expenditures = $116,000
Explanation:
a) Data and Calculations:
CARLA VISTA CO.
Income Statements
For the Years Ended December 31
2017 2016
Net sales $1,897,540 $1,757,500
Cost of goods sold 1,065,540 1,013,000
Gross profit 832,000 744,500
Selling and administrative expenses 507,000 486,000
Income from operations 325,000 258,500
Other expenses and losses:
Interest expense 24,000 22,000
Income before income taxes 301,000 236,500
Income tax expense 94,000 75,000
Net income $ 207,000 $ 161,500
CARLA VISTA CO.
Balance Sheets
December 31
Assets 2017 2016
Current assets
Cash $ 60,100 $ 64,200
Debt investments (short-term) 74,000 50,000
Accounts receivable 124,800 109,800
Inventory 128,000 117,500
Total current assets 386,900 341,500
Plant assets (net) 659,000 530,300
Total assets $1,045,900 $871,800
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 167,000 $152,400
Income taxes payable 45,500 44,000
Total current liabilities 212,500 196,400
Bonds payable 230,000 210,000
Total liabilities 442,500 406,400
Stockholders’ equity
Common stock ($5 par) 290,000 300,000
Retained earnings 313,400 165,400
Total stockholders’ equity 603,400 465,400
Total liabilities and
stockholders’ equity $1,045,900 $871,800
Net cash provided by operating activities for 2017 = $251,000
Capital expenditures = $135,000,
2017 Ratios:
(a) Earnings per share = $207,000 ($ /58,000 shares) = $3.57
(b) Return on common stockholders’ equity = $207,000/$603,400 * 100 = 34.31%
(c) Return on assets = $207,000/$1,045,900 * 100 = 19.79%
(d) Current ratio = $386,900/212,500 = 1.82
Average Receivable = ($124,800 + 109,800)/2 = $117,300
(e) Accounts receivable turnover = Net Sales/Average Receivable
= $1,897,540/$117,300 = 16.18 times
(f) Average collection period = 365 Days /Average Receivable Turnover ratio. = 365/16.18 = 22.56 days
Average Inventory = ($128,000 + 117,500)/2 = $122,750
(g) Inventory turnover = Cost of goods sold/Average Inventory = $1,065,540/122,750 = 8.68 times
(h) Days in inventory = 365/8.68 = 42.05 days
(i) Times interest earned = Earnings before interest & taxes / Tax expense = $325,000/$94,000 = 3.46 times
(j) Asset turnover = Net Sales/Assets = $1,897,540/$1,045,900 = 1.81
(k) Debt to assets ratio = Total Debt/Total Assets = $442,500/$1,045,900 * 100 = 42.31%
(l) Free cash flow = Cash from Operations - Capital Expenditures = $251,000 - $135,000 = $116,000
Required information
[The following information applies to the questions displayed below.]
A + T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing information for the adjusting entries, the accountant learned the following: A two-year insurance premium of $6,960 was paid on October 1 of the current year for coverage beginning on that date. The bookkeeper debited the full amount to Prepaid Insurance on October 1. At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records and supporting documents.
Shipping supplies on hand, January 1 of the current year Purchases of shipping supplies during the current year Shipping supplies on hand, counted on December 31 of the current year 20
Required:
1. Record the adjusting entry for insurance at December 31 of the current year. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Required information Journal entry worksheet Record the adjusting journal entry for insurance premium of $4,800 on December 31 of the current year. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal
2. What amount should be reported on the current year's income statement for Insurance Expense? For Shipping Supplies Expense? (Do not round intermediate calculations.) Insurance expense Shipping supplies expense
3. What amount should be reported on the current year's balance sheet for Prepaid Insurance? For Shipping Supplies? (Do not round intermediate calculations.) Prepaid insurance Shipping supplies
Answer:
Missing word
"Shipping supplies on hand, January 1 of the current year $13
Purchases of shipping supplies during the current year $75
Shipping supplies on hand, counted on December 31 of the current year $20"
1. Adjusting entry for insurance at December 31 of the current year.
S/n General Journal Debit Credit
a. Insurance expense $870
(6,960/24)*3=$ 600
Prepaid insurance $870
(Insurance expired)
b. Shipping supplies expenses $68
($13+$75-$20)
Shipping supplies $68
(Supplies used)
2. What amount should be reported on the current year's income statement for Insurance Expense?
Insurance expense = $870
Shipping supplies expense = $68
3. What amount should be reported on the current year's balance sheet for Prepaid Insurance?
Prepaid insurance = ($6,960-$870) = $6,090
Shipping supplies as on Dec 31. = $20
Which critical factor must Mac, an entrepreneur, consider to select his suppliers?
A.
the assurance that the supplier will provide 100 percent original material
B.
the assurance that the supplier will always provide a flat discount rate regardless of the market condition
C.
the assurance that the supplier will be able to meet urgent and immediate demands at all times
D.
the assurance that Mac will earn customer loyalty by producing goods sold by the supplier
E.
the assurance that Mac’s business will expand every financial year
Answer:
c
Explanation:
A corporation is concerned about their exposure to criminal liability after the most recent election cycle placed a number of new legislators in Congress who campaigned against corporate corruption. Select the strategy that would be least effective in reducing the company's criminal liability.
A. It could prioritize ethical leadership when making hiring decisions for management-level positions.
B. It could encourage reporting by establishing internal protections for whistleblowers beyond what is provided by Congressional law.
C. It could strengthen its code of ethics to reflect the current political mood.
D. It could donate to the election campaigns of the new members of Congress to establish goodwill.
Answer:
The strategy that would be least effective in reducing the company's criminal liability is:
D. It could donate to the election campaigns of the new members of Congress to establish goodwill.
Explanation:
While the other three options will effectively reduce the company's criminal liability exposure, option D is the least that is likely to have a positive or effective effect. This implies that option D is most likely to aggravate the criminal liability of the company as it will be regarded as bribery to cover up a crime.
An example of two way communication
Answer:
Radio, telephone, and computer-aided dispatch systems etc.
Explanation:
Hope it helps,
Pls mark me as the brainliest
Thank you
Which of the following statements describes the cost of capital?
A. The interest rate the bank charges its best customers.
B. The internal rate of return on investments.
C. The maximum acceptable rate of return on investments.
D. The minimum rate of return on investments.
Answer: The minimum rate of return on investments.
Explanation:
The cost of capital simply refers to the particular rate of return that a certain company expects to get from a certain investment that it does.
The cost of capital is the minimum rate of return which must be earned by a certain business before the generation of value.
The cost of capital therefore is the minimum rate of return on investments. It is the return which a company is expected to pay both the creditors and also the investors.
15. Consider a no-load mutual fund with $400 million in assets, 50 million in debt, and 15 million shares at the start of the year; and $500 million in assets, 40 million in debt, and 18 million shares at the end of the year. During the year investors have received income distributions of $0.50 per share, and capital gains distributions of $0.30 per share. Assuming that the fund carries no debt, and that the total expense ratio is 0.75%, what is the rate of return on the fund
Answer:
12.09%.
Explanation:
Calculation to determine the rate of return on the fund
First step is to calculate the beginning year NAV
Beginning year NAV = ($400 million assets - 50 million debt) / 15 million shares
Beginning year NAV = 23.33
Second step is to calculate the ending year NAV
Ending year NAV = ($500 million assets - (500*0.75% expense) - 40 million debt] / 18 million shares
Ending year NAV =[456.25/18 million shares]
Ending year NAV =25.35
Now let calculate the return using this formula
Return = (Ending NAV -beginning NAV + Capital gain + income) / Beginning NAV)
Let plug in the formula
Return = (25.35-23.33+0.30+0.50)/23.33
Return = 12.09%
Therefore the rate of return on the fund is 12.09%
Name one thing you're afraid of when you think of college and career.
Answer:
finances
Explanation:
College is expensive and people that go to college have an expectation of landing a great paying job. Reality is that is not always the case. Often leading to a long time of paying of student debts.
Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May:
1 Rainier Company Yakima Company
2 Materials inventory, May 1 $100,000.00 $48,200.00
3 Materials inventory, May 31 (a) 50,000.00
4 Materials purchased 950,000.00 710,000.00
5 Cost of direct materials used in production 938,500.00 (a)
6 Direct labor 2,860,000.00 (b)
7 Factory overhead 1,800,000.00 446,000.00
8 Total manufacturing costs incurred May (b) 2,484,200.00
9 Total manufacturing costs 5,998,500.00 2,660,600.00
10 Work in process inventory, May 1 400,000.00 176,400.00
11 Work in process inventory, May 31 382,000.00 (c)
12 Cost of goods manufactured (c) 2,491,500.00
13 Finished goods inventory, May 1 615,000.00 190,000.00
14 Finished goods inventory, May 31 596,500.00 (d)
15 Sales 9,220,000.00 4,550,000.00
16 Cost of goods sold (d) 2,470,000.00
17 Gross profit (e) (e)
18 Operating expenses 1,000,000.00 (f)
19 Net income (f) 1,500,000.00
Required:
a. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
b. Prepare Yakima Company’s statement of cost of goods manufactured for May. For those boxes in which you must enter subtracted or negative numbers use a minus sign.*
c. Prepare Yakima Company’s income statement for May. Enter all amounts as positive numbers.*
* Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
Starting Question
a. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
Letter Rainier Company Yakima Company
a.
b.
c.
d.
e.
f.
Statement of Cost of Goods Manufactured
b. Prepare Yakima Company’s statement of cost of goods manufactured for May. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Yakima Company
Statement of Cost of Goods Manufactured
For the Month Ended May 31
1
2
Direct materials:
3
4
5
6
7
8
9
10
11
Total manufacturing costs
12
13
c. Prepare Yakima Company’s income statement for May. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers.
Yakima Company
Income Statement
For the Month Ended May 31
1
2
Cost of goods sold:
3
4
5
6
7
8
9
10
Answer:
(a) $190,000
(b) $2,185,000
(c) $3,125,900
(d) $841,090
(e) $561,260
(f) $1,200,000
Explanation:
Rainier and Yakima Company several balances are omitted. These are calculated with reverse calculation. The material inventory at beginning of may is added with the purchases made and then ending inventory is subtracted to identify cost of goods manufactured.
Which employee in the Business, Management, and Administration career cluster would most likely work in a cubicle?
Receptionist
Mail Clerk
Sales Representative
Accountant
c sales representative
Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,125. Fragmental collected the entire $9,000 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be:
Answer:
Debit unearned rent for $3,375
........Credit rent revenue for $3,375
Explanation:
The adjusting entry made by Fragmental Co. on December 31 is calculated as;
Number of months from October 1st to December 31st = 3 months
Rent revenue earned for 3 months = $1,125 × 3 = $3,375
Therefore, the adjusting entry would be;
Debit unearned rent for $3,375
..........Credit rent revenue for $3,375
The adjusting entry made by Fragmental Co. on December 31 would be a debit to Unearned Rent and a credit to Rent Revenue for $3,450. The correct option is d.
$3,450 in unearned rent a/c Dr.
$3,450 in rent revenue.
Unearned rent is deducted because it is the company's liability. The value of unearned rent is reduced due to the company's adjustment of unearned rent into rent income, and a fall in the value of unearned rent is always debited because it is a liability.
Rent revenue is credited since it is a company revenue/gain, and all company revenue/gains are always recognised in the books of accounts.
Learn more about rent revenue, here:
https://brainly.com/question/32585393
#SPJ6
The question is incomplete, but the complete question most probably was:
Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,150. Fragmental collected the entire $9,200 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be:
Multiple Choice
a)A debit to Rent Revenue and a credit to Cash for $3,450.
b)A debit to Rent Revenue and a credit to Unearned Rent for $3,450.
c)A debit to Cash and a credit to Rent Revenue for $9,200.
d)A debit to Unearned Rent and a credit to Rent Revenue for $3,450.
e)A debit to Unearned Rent and a credit to Rent Revenue for $5,750
In its first month of operations, Wildhorse Co. made three purchases of merchandise in the following sequence: (1) 370 units at $6, (2) 470 units at $8, and (3) 570 units at $9. Assuming there are 270 units on hand at the end of the period, compute the cost of the ending inventory under (a) the FIFO method and (b) the LIFO method. Wildhorse Co. uses a periodic inventory system. FIFO LIFO The Ending Inventory $Enter a dollar amount $Enter a dollar amount
Answer:
The cost of the ending inventory under FIFO is $2,430 and under LIFO is $1,620
Explanation:
First determine the units sold
Units Sold = Total Purchases - Units in hand
= 1,410 units - 270 units
= 1,140
Note ; Wildhorse Co. uses a periodic inventory system. This means we calculate the cost at the end of the period.
FIFO
Means First in First Out
Cost of the ending inventory = 270 x $9.00 = $2,430
LIFO
Means Last in First Out
Cost of the ending inventory = 270 x $6.00 = $1,620
Conclusion
The cost of the ending inventory under FIFO is $2,430 and under LIFO is $1,620
In 2020, Henry Jones works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income. In 2020, Henry's qualified business income from driving is $61,200. Assume Henry takes the standard deduction of $12,400. Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. Compute Henry's QBI deduction and his tax liability for 2020.
Answer:
Henry's QBI deduction = $9,760
Henry's taxable income = $39,040
Henry's tax liability = $4,487.30
Explanation:
QBI deduction = (AGI - standard deduction) x 20% = ($61,200 - $12,400) x 20% = $9,760
total taxable income = $61,200 - $12,400 - $9,760 = $39,040
tax liability = $987.50 + [12% x ($39,040 - $9,875)] = $987.50 + $3,449.80 = $4,487.30
Partnership records show the following capital balances at the date of Hopkin's withdrawal: M. Hammel, $80,000; D. Hopkins, $210,000; and P. Houghton, $100,000. The three partners share income and loss equally. On December 31, Hopkins withdraws and agrees to take $230,000 cash in settlement of her capital balance. Prepare the December 31 journal entry for the partnership. Prepare the December 31 journal entry for the partnership.
Answer:
Dr D. Hopkins, Capital 210,000
Cr P. Houghton, Capital 10,000
Cr M. Hammel, Capital 10,000
Cr Cash 230,000
Explanation:
Preparation of the December 31 journal entry for the partnership.
Based on the information given the December 31 journal entry for the partnership will be :
Dr D. Hopkins, Capital 210,000
Cr P. Houghton, Capital 10,000
(100,000-80,000/2)
Cr M. Hammel, Capital 10,000
(100,000-80,000/2)
Cr Cash 230,000
At the beginning of April, Owl Corporation has a balance of $11,500 in the Retained Earnings account. During the month of April, Owl had the following external transactions.
1. Issue common stock for cash, $10,000.
2. Provide services to customers on account, $7,000.
3. Provide services to customers in exchange for cash, $1,700.
4. Purchase equipment and pay cash, $6,100.
5. Pay rent for April, $1,200.
6. Pay employee salaries for April, $2,000.
7. Pay dividends to stockholders, $1,250.
Required:
Using the external transactions above, compute the balance of Retained Earnings at April 30. (Decreases should be entered as a negative.)
Answer: $15,750
Explanation:
Retained earnings are profits so will be increased by sales and services provided and reduced by expenses.
They will also be reduced by dividends because that is where dividends are paid from:
Retained earnings = Opening balance + service for customers + service for customers - rent - employee salaries - dividends
= 11,500 + 7,000 + 1,700 - 1,200 - 2,000 - 1,250
= $15,750
Which of the following increases the equilibrium price of a used car and decreases the equilibrium quantity? an announcement by the U.S. Attorney General that the windows on older cars were made with cheaper glass that can explode at high speeds new federal legislation that raises the legal driving age to twenty-four in all states a new fee that used car dealers must pay to the government on all sales of used cars all of the above because each is consistent with the "law of demand"
A market-clearing price, often referred to as an equilibrium price, is the consumer cost associated with a good or service when supply and demand are equal or nearly equal. Hence quantity will increase .
What is Equilibrium price and quantity ?The manufacturer or vendor is free to transfer as many units as they like, and the consumer is free to access as many units as they like.
Economic equilibrium in economics refers to a scenario where supply and demand are balanced and the values of economic variables do not change in the absence of external factors.
The only price at which consumer and producer preferences coincide is the equilibrium price; in other words, the price at which consumers want to purchase the same quantity of the good (quantity demanded) as producers do.Manufacturers want to sell (quantity supplied).
The equilibrium quantity is that amount that both parties seek equally. Any other price causes the market to be out of equilibrium since the amount requested does not match the quantity supplied. From the previous explanations of surpluses and shortages, it should be obvious that if a market is out of equilibrium, market forces will drive it into equilibrium.
Learn more about Equilibrium here
https://brainly.com/question/28527601
# SPJ 2
During Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method. Multiple Choice, the production department of a process operations system completed and transferred to finished goods 20,000 units that were in process at the beginning of March and 100,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 54% complete with respect to conversion. At the end of March, 29,000 additional units were in process in the production department and were 100% complete with respect to materials and 29% complete with respect to conversion. Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method.
Answer:
Computing the equivalent units using the weighted-average method:
Materials Conversion
Total equivalent units 129,000 108,410
Explanation:
a) Data and Calculations:
Beginning inventory = 20,000 units
Degree of completion (Materials 100%, Conversion 54%)
Units started and completed in March = 100,000
Units transferred out = 120,000
Ending inventory = 29,000 units
Degree of completion (Materials 100%, Conversion 29%)
Total equivalent units Materials Conversion
Units started & completed 100,000 (100%) 100,000 (100%)
Units in Ending Inventory 29,000 (100%) 8,410 (29%)
Total equivalent units 129,000 108,410
b) In computing the equivalent units of production, the weighted-average method takes into account the units started and completed within the period and the ending work in process. This is unlike the FIFO method, which considers the units completed in the beginning work-in-process during the current period, the units started and completed, and the ending work-in-process inventory based on their various degrees of completion.
Milton Mende purchased the Star Midas Mining Co., Inc., for $6,500. This Nevada corporation was a shell corporation with no assets. Mende changed the name of the corporation to American Equities Corporation (American Equities) and hired Bernard Howard to prepare certain accounting reports so that the company could issue securities to the public. In preparing the financial accounts, Howard (1) made no examination of American Equities' books; (2) falsely included an asset of more than $700,000 on the books, which was a dormant mining company that had been through insolvency proceedings; (3) included in the profit and loss statement companies that Howard knew American Equities did not own; and (4) recklessly stated as facts things of which he was ignorant. Did Howard act unethically
Answer:
Yes. Howard acted unethically as a professional accountant.
Explanation:
With the stated actions of Howard, it is very clear that he did not follow the ethics of his profession. To act ethically as an accountant, Howard should have observed the ethical conducts expected of a professional account. They include observing integrity, confidentiality, and objectivity, demonstrating professional competence and due care, and acting in the public interest. Through his stated reckless assertions, misrepresentation of facts and figures, and lack of due professional care, Howard demonstrated the highest form of unethical behavior.
The Converting Department of Hopkinsville Company had 640 units in work in process at the beginning of the period, which were 70% complete. During the period, 13,600 units were completed and transferred to the Packing Department. There were 720 units in process at the end of the period, which were 25% complete. Direct materials are placed into the process at the beginning of production.
Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".
Hopkinsville Company
Number of Equivalent Units of Production
Whole Units Direct Materials Equivalent Units Conversion Equivalent Units
Inventory in process, beginning
Started and completed
Transferred to Packing Department
Inventory in process, ending
Total
Answer:
Whole units 14,320
Direct materials equivalent units 13,680
Conversion costs equivalent units 13,332
Explanation:
Calculation to Determine the number of equivalent units of production with respect to direct materials and conversion costs.
Hopkinsville Company Number of Equivalent Units of Production
WHOLE UNITS
Inventory in process, beginning 640
Started and completed 12,960
(13,600-640)
Transferred to Packing Department 13,600
(640+12,960)
Inventory in Process ending 720
Total 14,320
(13,600+720)
DIRECT MATERIALS EQUIVALENT UNITS
Inventory in process, beginning 0
Started and completed 12,960
(13,600-640)
Transferred to Packing Department 12,960
Inventory in Process ending 720
Total 13,680
(12,960+720)
CONVERSION EQUIVALENT UNITS
Inventory in process, beginning 192
[640-(640*70%)]
Started and completed 12,960
(13,600-640)
Transferred to Packing Department 13,152
(192+12,960)
Inventory in Process ending 180
(720*25%)
Total 13,332
(13,152+180)
Why are the incentives of a supplier the opposite of the incentives of a demander
Answer:
The incentives of a supplier are the opposite of the incentives of a demander because it is a relationship whose nature makes supply and demand inversely proportional to each other: the higher the supply, the lower the demand for each product and the lower its price; While the lower the supply, the greater the demand for each product and the higher its price. Thus, in many cases, suppliers seek to restrict supply to maximize profits, while demanders seek to lower prices through a greater quantity of goods offered.
Instructions: Please prepare a Balance Sheet on your scratch paper based on the following Adjusted Trial Balance and Additional Information below to answer this question and the next three (3) questions.
(Hint: you may also want to prepare a new Income Statement and Statement of Stockholders' Equity before preparing the Balance Sheet to make sure you have the necessary information for the Balance Sheet account balances.)
You will need to know the amounts for total current assets, total long-term assets, total current liabilities, total long-term liabilities, and total stockholders' equity.
Adjusted Trial
Balance As of 12/31/20xx
Accounts Debit Credit
Cash $25,486
Prepaid Rent 5,700
Supplies 4,400
Building 100,000
Accumulated Depreciation $6,000
Accounts Payable 1800
Deferred Revenue 1,300
Notes Payable (due in 24 months 80,486
Common Stock 2,100
Retained Earnings 46,400
Dividends 4,000
Service Revenue 12,400
Rent Expense 900
Supplies Expense 3,000
Utility Expense 1,000
Depreciation Expense 6,000
Totals $150,486 $150,486
Additional Information:
Beginning Balance of Common Stock on 1/1/20xx $2.100
Beginning Balance of Retained Earnings on 1/1/20xx $46,400
No new stock was issued during the accounting period. .
Hint: Please remember the formula for retained earnings when preparing this statement
Question: What is the amount shown for Total Current Assets shown on the Classified Balance Sheet you prepared on your scratch paper?
Answer:
a) Balance Sheet as of December 31, 20xx:
Assets:
Cash $25,486
Prepaid Rent 5,700
Supplies 4,400
Total current assets $35,586
Building 100,000
Acc. Depreciation (6,000) $94,000
Total assets $129,586
Current Liabilities:
Accounts Payable $1,800
Deferred Revenue 1,300
Total current liabilities $3,100
Notes Payable (due in
24 months 80,486
Total liabilities $83,586
Common Stock 2,100
Retained Earnings 43,900 46,000
Total liabilities and equity $129,586
b) Total current assets = $35,586
Explanation:
a) Data and Calculations:
Adjusted Trial
Balance as of 12/31/20xx
Accounts Debit Credit
Cash $25,486
Prepaid Rent 5,700
Supplies 4,400
Building 100,000
Accumulated Depreciation $6,000
Accounts Payable 1,800
Deferred Revenue 1,300
Notes Payable (due in 24 months 80,486
Common Stock 2,100
Retained Earnings 46,400
Dividends 4,000
Service Revenue 12,400
Rent Expense 900
Supplies Expense 3,000
Utility Expense 1,000
Depreciation Expense 6,000
Totals $150,486 $150,486
Additional data:
Beginning Balance of Common Stock on 1/1/20xx $2,100
Beginning Balance of Retained Earnings on 1/1/20xx $46,400
Income Statement for the year ended December 31, 20xx
Service Revenue $12,400
Rent Expense 900
Supplies Expense 3,000
Utility Expense 1,000
Depreciation Expense 6,000 10,900
Net Income 1,500
Statement of Stockholders' Equity:
Beginning Common Stock on 1/1/20xx $2,100
Beginning Retained Earnings on 1/1/20xx 46,400
Net Income 1,500
Dividends (4,000)
Ending Equity balance on 12/31/20xx $46,000
Retained Earnings on 12/31/20xx:
Beginning Retained Earnings on 1/1/20xx 46,400
Net Income 1,500
Dividends (4,000)
Retained Earnings on 12/31/20xx $43,900
The following is selected information from Windsor, Inc. for the fiscal year ending October 31, 2022. Cash received from customers $129000 Revenue recognized 193500 Cash paid for expenses 73100 Cash paid for computers on November 1, 2021 that will be used for 3 years 20640 Expenses incurred including any depreciation 102340 Proceeds from a bank loan, part of which was used to pay for the computers 43000 Based on the accrual basis of accounting, what is Windsor's net income for the year ending October 31, 2022
Lyman Company has the opportunity to increase annual credit sales $100,000 by selling to a new, riskier group of customers. The expenses of collecting credit sales are expected to be 15 percent of credit sales. The company's manufacturing and selling expenses are projected at 70% of sales, and its effective tax rate is 40%. If Lyman accepts this opportunity, its after-tax profits would increase by an estimated:_____.
a. $10,200.
b. $10,000.
c. $9,000.
d. $14,400.
Answer:
Option c ($9,000) is the correct answer.
Explanation:
The given values are:
Annual increase in sales,
= $100,000
Now,
The collection expenses will be:
= [tex]100,000\times 15 \ percent[/tex]
= [tex]15,000[/tex]
Selling as well as manufacturing expenses will be:
= [tex]100,000\times 70 \ percent[/tex]
= [tex]70,000[/tex]
Tax expense will be:
= [tex]15,000\times 40 \ percent[/tex]
= [tex]6,000[/tex]
After-tax profits increase will be:
= [tex]15,000-6,000[/tex]
= [tex]9,000[/tex] ($)
The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 1200 employees per year. Since the training center was first put into use, the program has become more complex, so that 950 now represents the most employees that can be trained per year. In the past year, 850 employees were trained. The efficiency of this system is approximately ________________ and its utilization is approximately _____________________.
Answer:
Efficiency of the system = Actual output/ Effective capacity*100
Efficiency of the system = 850/950*100
Efficiency of the system = 0.894737*100
Efficiency of the system = 89.47%
Utilization of the system = Actual output/Design capacity*100
Utilization of the system = 850/1200*100
Utilization of the system = 0.708333*100
Utilization of the system = 70.83%
which of the following qualities that will help you succeed in the work place
Answer:
1. Leadership Skills you have to know how to take charge of something going on.
2. Oraganizing being organized is important becuase it shows the people around you that you have everything in order.
3. verbal communications Knowing how to speak to co- workers and coustumers you have to be clear so you can have good coustumer service.
4. Listening skills are very important that's how you understand the coustumers.
Explanation:
g Kally goes to the grocery store each week looking to purchase items that will give her as much utility as possible, given her $100 budget. Last week apples were priced at $4.50 each, and Kally purchased 3 apples. This week apples are on sale for $2.50 each, while all other prices have remained the same, and Kally chooses to purchase 7 apples. Given this information, plot Kally's demand curve for apples.
Answer:
Please check the attached image for the graph
Explanation:
The demand curve is a curve that shows the various quantities of a good that is purchased at different prices.
The demand curve is downward sloping due to the inverse relationship between price and quantity demanded. The higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded. This is known as the law of demand.
It can be seen that the quantity demanded of apples increased from 3 to 7 when price reduced to $2.50
On the demand curve, price is on the vertical axis, while quantity demanded is on the horizontal axis
The market for bell peppers is perfectly competitive and currently has an equilibrium price of $3 and the number of bell pappers traded is 6. Suppose the government imposes a price floor of $1 on this market. What will be the size of the shortage in this market
Well, the price would increase by 1 dollar, so the shortage would be 2 less.
There should be no shortage.
What is a price floor?
It is the minimum price where the producer should charge also at the same time it should be binding and considered effective. In the case when the price floor should be above the equilibrium price so it should be the surplus while on the other hand if the price floor is below the equilibrium price so that means it is no surplus. Also, the shortage is not possible
Learn more about price here: https://brainly.com/question/15913986