Answer:
1A. Prepare a contribution format income statement for the game last year
Revenue $1,016,800
Variable costs -$688,800
Contribution margin $328,000
Fixed costs -$246,000
Net income $82,000
1B. Compute the degree of operating leverage
DOL = contribution margin / (contribution margin - fixed costs) = ($20 x 16,400) / [($20 x 16,400) - $246,000] = $328,000 / $82,000 = 4
2. Management is confident that the company can sell 22,406 games next year (an increase of 6,006 games, or 22%, over last year).A. Compute the expected percentage increase in net operating income for next year
DOL = % change in income / % change in total sales
4 = % change in income / 22%
% change in income = 4 x 22% = 88%
B. Compute the expected total dollar net operating income for next year (Do not prepare an income statement, use the degree of leverage to compute your answer)
expected dollar amount of net income = $82,000 x 1.88 = $154,160
Question 6 of 10
Match each business model with the type of business that commonly uses it.
Bricks and clicks
?
Grocery stores
Subscription
?
Magazines
Shopkeeper
Retail stores
?
Answer:
Bricks and Clicks - Retail Stores
Retail stores such as Walmart use a bricks and clicks model to ensure they sell as much as possible. Bricks and clicks refers to having both an online and an offline (physical location) presence where customers can come and buy in person if they want.
Grocery Stores - Shopkeeper
Grocery Stores are usually bricks and mortar which means that they are a physical location. This physical location is usually small and in need of being managed by a shopkeeper.
Subscription - Magazines
Magazines have found over the years that it is effective to offer their services as a subscription based one. That way they can be sure of a steady inflow of cash and people can be sure that they will receive magazines periodically.
Which of the following BEST describes a conflict of interest? O A. Two companies competing for the business of the same customer B. Parties engaging in an activity that does not equally benefit all parties C. An employee engaging in an activity that may benefit that individual to the detrimen O D. People on different sides of an issue agreeing to disagree O E. A company engaging in practices that conflict with government regulations Click to select your answer.
The statement that best describes conflict of interest is - An employee engaging in an activity that may benefit that individual to the detriment of his employer or clients of the firm
Conflict of interest arises when the interest of an employee is not aligned with the interest of his/her employer or clients.
For example, an employer might decide to take a project even though it is not profitable because if the project is undertaken it would increase the prestige of the employee. This project would be benefit the employee but not the employer.
To learn more about conflict of interest, please check: https://brainly.com/question/14787764?referrer=searchResults
Koch traded Machine 1 for Machine 2 when the fair market value of both machines was $49,750. Koch originally purchased Machine 1 for $75,500, and Machine 1's adjusted basis was $40,250 at the time of the exchange. Machine 2's seller purchased it for $64,750 and Machine 2's adjusted basis was $55,250 at the time of the exchange. What is Koch's adjusted basis in machine 2 after the exchange
Answer:
machine 2 45,000
acc depreciation mchine 1 35,000
machine 1 75,000
The seller valuation are not relevant the important is the fair value. Which is 50,000.
If there was commercial substance we will recognize a gain for 5,000
(50,000 fair value - 45,000 book value)
However, we are not given with information of commercial substance, so we should not recognize any gain or loss in trade.
The machine 2 will enter the accounting for the same value as the previous machine net book.
Explanation:
Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $347,325 for the year, and machine usage is estimated at 126,300 hours.For the year, $375,125 of overhead costs are incurred and 132,700 hours are used.
Required:1. Compute the manufacturing overhead rate for the year. (Round answer to 2 decimal places, e.g. 1.25.)2. What is the amount of under- or overapplied overhead at December 31?3. Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.
Answer:
See below
Explanation:
1. Manufacturing overhead rate
= Total estimated manufacturing overhead ÷ Estimated direct labor hour
= $347,325 ÷ 126,300
= $2.75
2. $132,700 × 2.75 = $364,925
State Farm insurance company prints an ad in a national newspaper’s apartment rental section with a picture of a girl sitting on the edge of a tub full of water, blowdrying her hair while a plugged in toaster sits on the edge. The caption at the top of the ad reads, “Renting without State Farm is like...” Which need does this marketing ad emphasize for potential customers?
a. safety and security
b. physiological needs
c. esteem
Answer:
Safety and Security
Explanation:
Blow drying your hair over the tub isn't safe
The marketing ad emphasizes potential customers' need of safety and security.
An insurance company is a company that is responsible for selling insurance that protects our objects and even our lives in case they are affected.
For example, if I buy insurance for my car and someone steals it, the insurance company gives me a percentage of the value of the car so that my loss is not total.
In the case presenting the company, it presents an image of "risk" so that buyers understand the idea of danger and the need for safety and protection to have insurance that covers those possible accidents that occur.
So the correct answer is A. safety and security
Learn more in: https://brainly.com/question/23955188
Managers should use positive reinforcement to help employees link service behavior with service ___________. Fill in the blank.
Mr Brains where are you?
Managers should use positive reinforcement to help employees link service behavior with service rewards.
Negative and Positive reinforcements
Positive reinforcement seems to be a procedure that increases the likelihood of certain behavior by simply introducing a stimulus after the behavior would be completed.
Negative reinforcement increases the probability as well as likelihood of certain behavior by minimizing an unfavorable outcome.
Thus the response above is appropriate.
Find out more information about positive reinforcement here:
https://brainly.com/question/25433923
Kingbird, Inc. reported net sales of $267,000, cost of goods sold of $160,200, operating expenses of $48,900, net income of $42,720, beginning total assets of $532,300, and ending total assets of $618,100. Calculate profit margin and gross profit rate. (Round answers to 1 decimal place, e.g. 10.2%.)
Answer and Explanation:
The computation is shown below:
Profit margin = Net income ÷ Net sales
= $42,720 ÷ $267,000
= 16%
Now the gross profit rate is
But before that the gross profit is
Gross profit = Net sales - Cost of goods sold
= $267,000 - $160,200
= $106,800
Now Gross profit rate is
= Gross profit ÷ Net sales
= $106,800 ÷ $267,000
= 40%
An accounts payable program posted a payable to a vendor not included in the online vendor master file. A control that would prevent this error is a:___.
A. Validity check.
B. Parity check.
C. Range check.
D. Reasonableness test.
Answer:
Option A: Validity check
Explanation:
Data are commonly known as facts and figures or a set of values, measurements or records of transactions that are raw and unprocessed while Information are data which has undergone processing thereby giving it a new meaning.
Data entry controls includes Field check, sign check, limit check, range check, validity check e.t.c.
Validity Check is simply known as an edit test. It is one where the use of an identification number or transaction code is compared with a table of valid identification numbers or codes that is stored or maintained in computer memory.
For each separate case below, follow the 3-step process for adjusting the accrued expense account: Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record an adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year.
a. Salaries Payable. At year-end, salaries expense of $18,500 has been incurred by the company, but is not yet paid to employees. Interest Payable. At its December 31 year-end, the company owes $400 of interest on a line-of-credit loan. That interest will not be paid until sometime in January of the next year.
b. Interest Payable. At its December 31 year-end, the company holds a mortgage payable that has incurred $1,025 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year.
c. Interest Payable. At its December 31 year-end, the company holds a mortgage payable that has incurred $875 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year.
Answer:
a. Salaries Expense (Dr.) $18,500
Salaries Payable (Cr.) $18,500
b. Interest Expense (Dr.) $85
Interest Payable (Cr.) $85
c. Interest Expense (Dr.) $75
Interest Payable (Cr.) $75
Explanation:
The adjusting entries are made at the month or year end to adjust the transactions that were recorded. The adjustment is usually made for the transaction whose impact is changed at the month end. For the given case the interest amount recorded was for the annual but for monthly recording the interest expense will be divided by 12.
Treasury Stock Facts Target Inc. arranged to purchase a large block of its common stock from a major shareholder. The total number of shares purchased is 10,000 and these shares are to be held as treasury shares. Target Inc. uses the cost method to account for treasury shares. This shareholder had a controlling interest before the transaction. After the transaction this shareholder no longer has a controlling interest. Given these facts, to induce the shareholder to sell the block of stock Target Inc. was forced to pay an amount in excess of the current market price of the stock. Target Inc. paid the shareholder $40 per share when the market price was $30 per share.Question How should Target Inc. account for the purchase of this treasury stock?a. Provide a brief written description of the proper accounting treatment, including how the extra $10 paid per share is recorded.b. Prepare a formal journal entry to record the treasury stock transaction.c. Identify the specific paragraph of the FASB Codification which addresses this issue.
Answer:
Target Inc.
a. Under the cost method, as adopted by Target Inc., the cost of acquiring the treasury stock is debited to the Treasury Stock account and credited to the Cash account. This means that there is no differentiation of the extra $10 just as there is no differentiation between the par-value and the cost of acquiring each share.
b. Journal Entry:
Debit Treasury Stock $40,000
Credit Cash $40,000
To record the repurchase of 10,000 shares at $40 each.
c. The FASB Codification which addresses Treasury Stock accounting is called Codification Topic 505-30. The cost of treasury stock is reported separately from the gain or loss.
Explanation:
a) Data and Calculations:
Total number of shares purchased = 10,000
Price paid for the purchase = $40
Market price of the share = $30
Extra cost paid = $10
b) Two methods are adopted for recording treasury stock. There is the par-value method. This method records the treasury stock at the par value multiplied by the number of treasury stock. The difference in the purchase cost and the par-value is then recorded in the Additional Paid-in Capital account. The other method is the cost method. Here, the cost of acquiring the treasury stock (not the par-value) is recorded in the Treasury Stock account, with a credit entry to the Cash account. Treasury Stock account is a contrary account to the stockholders' equity, and as a result, is a deduction from the amounts in the Stockholders' Equity in the balance sheet, in both cases.
Decorative Concrete produces a concrete overlay for residential and commercial concrete flooring. Customers have complained that one of the products results in excessive cracking. The likelihood the company will incur a loss on this product is probable and the amount of the loss is estimated to be somewhere between $1.1 and $4 million.
1. Should this contingent liability be reported, disclosed in a note only, or both? To be reported To be disclosed Both2. What loss, if any, should Decorative Concrete report in its income statement?3. What liability, if any should Decorative Concrete report in its balance sheet?4. What entry, if any should be recorded in the journal?
Answer:
Decorative Concrete
1. This contingent liability should be disclosed in a note only.
2. Decorative Concrete should not report any loss in its income statement, yet.
3. Decorative Concrete should not report any liability in its balance sheet, yet.
4. No entry should be recorded in the journal.
Explanation:
a) Data and Calculations:
Estimated loss = $1.1 and $4 million
Loss is probable but the loss cannot be reasonably estimated
b) Decorative Concrete cannot reasonably estimate the loss that may arise from the contingent liability. Therefore, it should only disclose the future event in a note to the financial statements. Accounting rules specify that Decorative Concrete should record this event as a contingent liability in its accounts when it is probable that the future event will occur and the amount of the liability can be reasonably estimated. At that time, a specific amount of loss will be recorded (debit) and a specific liability established (credit) in advance of the settlement. In this Decorative's case, only one condition is met.
You have just been hired as the accountant for Fan-Tastic Sports Gear Inc., a wholesaler of sporting goods and apparel. The previous accountant left abruptly in late December, 20Y7, and an accounting intern has been drafting the journal entries since January. You are examining the accounting records before finalizing the journal entries for the first quarter of 20Y8. The following journal shows some of the accounts receivable transactions that you are reviewing.
JOURNAL
ACCOUNTING EQUATION
DATE DESCRIPTION POST. DEBIT CREDIT ASSETS LIABILITIES EQUITY
1 Jan.
17 Sales 9,600.00
2 Bad Debt Expense 9,600.00
3 17 Bad Debt Expense 9,600.00
4 Accounts Receivable-
CJ’s Sports Corp. 9,600.00
5 21 Cash 10,700.00
6 Bad Debt Expense 2,200.00
7 Accounts Receivable-Four
Seasons Sportswear Co. 12,900.00
8 Feb.
15 Accounts Receivable-Healthy
Running Inc. 3,000.00
9 Bad Debt Expense 500.00
10 Sales 3,500.00
11 Mar.
4 Accounts Receivable-Four
Seasons Sportswear Co. 2,200.00
12 Bad Debt Expense 2,200.00
13 4 Cash 2,200.00
14 Bad Debt Expense 2,200.00
15 13 Cash 5,540.00
16 Accounts Receivable-
Barb’s Best Gear 5,540.00
17 31 Bad Debt Expense 20,970.00
18 Accounts Receivable-
Healthy Running Inc. 5,150.00
19 Accounts Receivable-
The Locker Room 4,100.00
20 Accounts Receivable-
CJ’s Sports Corp. 2,780.00
21 Accounts Receivable-
Get Your Gear Inc. 7,050.00
22 Accounts Receivable-
Ready-2-Go 1,890.00
CHART OF ACCOUNTS
Fan-Tastic Sports Gear Inc.
General Ledger
ASSETS
110 Cash
111 Petty Cash
121 Accounts Receivable-Healthy Running Inc.
122 Accounts Receivable-The Locker Room
123 Accounts Receivable-CJ’s Sports Corp.
124 Accounts Receivable-Get Your Gear Inc.
125 Accounts Receivable-Four Seasons Sportswear Co.
126 Accounts Receivable-Ready-2-Go
127 Accounts Receivable-Barb’s Best Gear
132 Notes Receivable-Fast Feet Co.
136 Interest Receivable
141 Inventory
145 Office Supplies
151 Prepaid Insurance
181 Land
191 Store Equipment
192 Accumulated Depreciation-Store Equipment
193 Office Equipment
194 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
211 Salaries Payable
212 Unearned Rent
213 Customer Refunds Payable
215 Notes Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Rent Revenue
612 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Sales Salaries Expense
521 Advertising Expense
522 Depreciation Expense-Store Equipment
523 Delivery Expense
529 Miscellaneous Selling Expense
530 Office Salaries Expense
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Insurance Expense
534 Office Supplies Expense
536 Credit Card Expense
537 Cash Short and Over
538 Bad Debt Expense
539 Misc. Administrative Expense
710 Interest Expense
1. Finalize the journal entries shown on the Fan-Tastic Sports Gear Inc. panel and make any necessary changes.
2. Journalize the entry needed to record information about the note receivable from Fast Feet for the year 20Y7.
3. Journalize the entry needed to record collection of the note at maturity on March 19, 20Y8.
Answer:
Accounts Receivable (Dr.) $9,600
Sales (Cr.) $9,600
Bad debt expense (Dr.) $500
Accounts Receivable (Cr.) $500
Bad Debt Expense (Dr.) $2,200
Accounts Receivable (Cr.) $2,200
Notes Receivable - Fast Feet (Dr.) $3,600
Sales (Cr.) $3,600
Explanation:
Fan-Tastic Sports Gear Inc., has incurred business transactions. It has recorded sales to Sportswear Co on accounts. The money is not received and the accounts receivable are offset by recording bad debt expense.
Liability Insurance Company writes a substantial amount of commercial liability insurance. A large construction company requests $100 million of liability insurance to cover its business operations. Liability Insurance has a reinsurance contract with Bermuda Re that enables the coverage to be written immediately. Under the terms of the contract, Liability Insurance pays 25 percent of the losses and retains 25 percent of the premium. Bermuda Re pays 75 percent of the losses and receives 75 percent of the premium, less a ceding commission that is paid to Liability Insurance. Based on the preceding,
A. What type of re-insurance contract best describes the re-insurance arrangement that Liability Insurance has with Bermuda Re?
B. If a $50 million covered loss occurs, how much will Bermuda Re have to pay? Explain.
C. Why does Bermuda Re pay a ceding commission to Liability Insurance?
Answer:
Following are the solution to the given points:
Explanation:
For point A:
Its reinsurance scheme which Liability Coverage through Bermuda Re better defines. In this form, primary insurers and reinsurers decide, based on percentage or allocation, to divide the profits and losses.
For point B:
Bermuda Re is paying 75% of the losses. When a protected loss of $50 million comes in Bermuda Re was indeed paying =75% of 50 million = 37.5 million.
For point C:
Bermuda Recharges a responsibility insurance ceding commission and covers the costs sustained in the business through writing.
The tangible assets of an organization include
A. Company reputation
B. Patents
C. Real estate
D. Technical knowledge
Answer:
a. company reputation
Explanation:
yan po and tamang sagot...god luck po. ..
The following information is available for Robstown Corporation for 20Y8:
Inventories
January 1
December 31
Materials $77,250 $93,600
Work in process 108,800 96,700
Finished goods 112,500 108,400
December 31
Advertising expense $ 67,800
Depreciation expense-office equipment 23,000
Depreciation expense-factory equipment 14,600
Direct labor 186,100
Heat, light, and power-factory 5,550
Indirect labor 23,800
Materials purchased 123,800
Office salaries expense 78,300
Property taxes-factory 4,145
Property taxes-office building 13,800
Rent expense-factory 6,550
Sales 861,500
Sales salaries expense 138,500
Supplies-factory 4,750
Miscellaneous costs-factory 4,420
a. Prepare the 20Y8 statement of cost of goods manufactured. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions 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.
Robstown Corporation
Statement of Cost of Goods Manufactured
1
2
Direct materials:
3
4
5
6
7
8
9
Factory overhead:
10
11
12
13
14
15
16
17
18
19
20
21
b. Prepare the 20Y8 income statement. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive.
Robstown Corporation
Income Statement
1
2
Cost of goods sold:
3
4
5
6
7
8
9
Operating expenses:
10
Administrative expenses:
11
12
13
14
Selling expenses:
15
16
17
18
Answer and Explanation:
The preparations are as follows:
1) For Cost of goods manufactured
Opening Work in process inventory $108,800
Direct materials:
Opening inventory $77,250
Add: Purchases $123,800
Cost of materials available for use $201,050
Less: Ending inventory - $93,600
Cost of direct materials used $107,450
Add: Direct labor $186,100
Factory overhead
Indirect labor $23,800
Depreciation expense - factory equipment $14,600
Heat, light, and power - factory $5,550
Property taxes - factory $4,145
Rent expense - factory $6,550
Supplies - factory $4,750
Miscellaneous cost - factory $4,420
Total factory overhead $63,815
Total manufacturing costs spent $357,365
Total manufacturing costs $466,165
Less: ending work in process inventory -$96,700
Cost of goods manufactured $369,465
2. For Income statement
Sales $861,500
Less: Cost of goods sold:
Opening finished goods inventory $112,500
Add: Cost of goods manufactured $369,465
Cost of finished goods available for sale $481,965
Less: Ending finished goods inventory -$108,400
Cost of goods sold $373,565
Gross profit $487,935
Less: Operating expenses:
Administrative expenses:
Office salaries expense $78,300
Depreciation expense - office equipment $23,000
Property taxes - office building $13,800
Selling expenses:
Advertising expense $67,800
Sales salaries expense $138,500
Total operating expenses $321,400
Net income $166,535
Based on your experience and shopping habit, discuss WHAT inventory control model you will use in the following scenarios and WHY you will use that specific model. a. Supply our kitchen with fresh food b. Obtaining a daily newspaper c. Buying gas for your car d. Ordering the game sweater for the community baseball game Inventory control models: Single period model (also called Newsvendor model) Fixed order quantity model (also called Q-model or EOQ model) Fixed time model (also called P-model)
Answer:
2 types of inventory models:
1. Fixed Reorder Quantity System - It is a system where an alarm is raised when the inventory level drops below a fixed quantity and inventory is restocked based on demand.
2. Fixed Reorder Period System - It is a system where an alarm is raised after a fixed period of time and inventory is restocked based on demand.
The following situation are:
1. Supply kitchen with fresh food - Both Fixed Reorder Quantity System and Fixed Reorder Period System are suitable for this situation. Reason: Food is considered basic need. Certain food items are stocked when the inventory level drops below a fixed quantity and certain food items are stocked after a fixed period of time, both as per demand.
2. Obtaining daily newspaper - Fixed Reorder Period System is only suitable for this situation. Reason: Subscription is renewed only on completion of the fixed period.
3. Buying gas for your car - Fixed Reorder Quantity System is only suitable for this situation. Reason: Gas for your car is something you buy when the level of inventory drops below a fixed quantity and hence used.
4. Ordering the game sweater for the community baseball game - Fixed Order Period System is only suitable for this situation. Reason: Game sweater is required only during the game and you will order/buy the game sweater during the game only.
Jackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed: Unit sales Budged Actual Product X 22,500 42,000 Product Y 90,000 80,000 Unit contribution margin Product X $4.80 $3.90 Product Y $13.00 $14.00 Unit selling price Product X $13.00 $14.00 Product Y $30.00 $29.00 Industry volume was estimated to be 1,875,000 units at the time the budget was prepared. Actual industry volume for the period was 2,440,000 units. Jackson measures variances using contribution margin. Total sales quantity variance is: $97,280 favorable. $95,190 favorable. $107,920 favorable. $84,500 favorable. $36,400 favorable.
Answer:
$46,500 unfavorable
Explanation:
The computation of the total sales quantity variance is as follows:
Total sales quantity variance
Sales quantity variance is
= (Actual quantity sold - Budgeted quantity) × Budgeted price
For product X, it would be
= (42,000 - 22,500) × $13
= $253,500 favorable
And, For product Y, it is
= (80,000 - 90,000) × $30
= $300,000 unfavorable
So, the total would be
= $300,000 - $253,500
= $46,500 unfavorable
This is the answer but the same would not be provided in the given options
The following information was taken from the records of Sheffield Inc. for the year 2020: Income tax applicable to income from continuing operations $209.440: income tax applicable to loss on discontinued operations $28,560. and unrealized holding gain on available-for-sale securities (net of tax) $16,800.
Gain on sale of equipment $106,400
Cash dividends declared $168,000
Loss on discontinued operations 84,000
Retained earnings January 1, 2020 2,400,000
Administrative expenses 268,800
Cost of goods sold 952,000
Rent revenuc 44,800
Selling expenscs 336,000 2,128,000
Loss on write-down
F inventory 67 200
Sales Revenue Shares outstanding during 2020 were 100,000.
Prepare a single-step income statement. (Kound eurmings pershre to 2 decimal paces, e 148 SHEFFIELD INC. Income Statement $ Prepare a comprehensive income statement for 2020, using the two statement format. SHEFFIELD INC. Comprehensive Income Statement Prepare a retained earnings statement for 2020. (tfst ltens tatheuse 1euhe enMhgs firsEj SHEFFIELD INC. Retained Earmings Statement
Answer:
a. Single-step Income Statement for the year ended December 31, 2020:
Sales Revenue $2,128,000
Rent revenue 44,800
Gain on sale of equipment 106,400
Total Revenue $2,279,200
Cost of goods sold 952,000
Administrative expenses 268,800
Selling expenses 336,000
Loss on write-down
of inventory 67 200
Total expenses $1,624,000
$655,200
Income Tax $209,440
Net Income $445,760
Comprehensive Income Statement for the year ended December 31, 2020:
Net Income $445,760
Loss on discontinued operations (84,000)
Income Tax
on discontinued operations (28,560)
Unrealized holding gain (net of taxes) 16,800
Comprehensive Income $350,000
Statement of Retained Earnings for the year ended December 31, 2020:
Retained earnings January 1, 2020 $2,400,000
Comprehensive Income 350,000
Cash dividends declared (168,000)
Retained earnings, December 31 $2,582,000
Explanation:
a) Data and Calculations:
Income tax applicable to income from continuing operations $209.440: income tax applicable to loss on discontinued operations $28,560, and unrealized holding gain on available-for-sale securities (net of tax) $16,800.
Gain on sale of equipment $106,400
Cash dividends declared $168,000
Loss on discontinued operations 84,000
b) Unrealized holding gain on available-for-sale securities and loss on discontinued operations are reported separately from the net income on continuing operations. Therefore, they can be reported in the Comprehensive Income Statement.
Retained earnings January 1, 2020 2,400,000
Administrative expenses 268,800
Cost of goods sold 952,000
Rent revenue 44,800
Selling expenses 336,000
Loss on write-down
F inventory 67 200
Sales Revenue 2,128,000
Shares outstanding during 2020 were 100,000
Organization Weighs Use of Open Source Software. You began operating a small general electric contracting company two years ago. Originally, it was just you and your cousin, but it has grown to five licensed electricians, plus one office manager who takes calls from customers, schedules the work, and orders parts and supplies. Your company handles a wide range of work, including installing new circuit breaker panels, rewiring existing electrical systems for renovations and additions, and installing residential light fixtures, security lighting systems, swimming pool lighting, and ceiling fans. Business has really taken off, and your current manual systems and procedures can no longer keep pace. The office manager has been exploring several options and has identified three different software packages designed for small contractors. Each one of the packages includes software designed for managing parts and supplies inventory, scheduling jobs, and invoicing customers. One of the packages also provides the capability to perform accounts receivable and accounts payable functions. Two of the software packages are from large, well-known companies, and both have an initial licensing cost of roughly $550 plus $100 per year for software support. The other software package is open-source software, with no initial cost and no support cost. The office manager is unsure how to proceed, but has your agreement to spend up to $1000 on new software.
Which one of the following should be your next step?
a. Define the basic business functions that you need the software to be able perform.
b. Determine the date by which you need the new software installed and operational.
c. Talk to your cousin Vinnie who is an accountant in a large manufacturing firm.
d. Set an exact limit on how much you are willing to spend on office software.
Answer:
a. Define the basic business functions that you need the software to be able to perform.
Explanation:
The main function of a business needs to be determined so that business strategy can be formulated. The office manager has made an agreement to spend up to $1000 on the new software. It is now required to determine the basic functions which are needed in the new software for business functioning.
For each of the following accounts, indicate the effect of a debit or credit on the account and the normal balance.
Debit Effect Credit Effect Normal Balance
a. Bonds Payable.
b. Unearned Service Revenue.
c. Depreciation Expense.
d. Common Stock.
e. Buildings.
f. Rent Revenue.
Answer:
Debit effect Credit effect Normal balance
a. Bonds payable Decrease Increase Credit
b. Unearned service revenue Decrease Increase Credit
c. Depreciation expense Increase Decrease Debit
d. Common stock Decrease Increase Credit
e. Building Increase Decrease Debit
f. Rent revenue Decrease Increase Credit
All assets, expenses increase with debits and decreases with credit and have a debit normal balance. All liabilities, revenue accounts and equity accounts (except dividends) have credit.
As diversity grows in both society and the workplace, interacting and communicating with your coworkers will present specific challenges and rewards. It is important to be sensitive to the diverse backgrounds of your coworkers and to understand how to navigate an increasingly diverse workplace. Which of the following are appropriate strategies for communication in diverse workplaces?
A. Understand the value of difference.
B. Seek training.
C. Use stereotypes to understand others.
D. Focus on cultural differences.
E. Practice ethnocentrism.
F. Develop healthy bias.
G. Build on similarities.
Answer:
A)Understand the value of difference.
B)Seek training.
G)Build on similarities.
Explanation:
A)When one find his/ her self in a diverse work environment, one should understand that people are created differently with different behavior, understanding this differences will enable individual to work together to achieve high productivity.
B) by seeking training, ways to relate with coworkers can be learnt therefore enabling unity in the organization and team work would be easier.
C) Building similarities will lead to a acceptance of differences that exist between co-workers then this will enable good relationship s.
Marketers are more likely to recognize a problem as unethical when
Answer:
The explanation of the discussion has been characterized below.
Explanation:
The higher the degree of the contract between management peers that perhaps the intervention would be hazardous, the further presumably it is just that advertising agencies will understand the issue when unethical. Research has shown us that the strong ethical social structure and that of other work colleagues reduces the assertion of fraudulent activities.Healy Corporation recorded service revenues of $200,000 in 2014, of which $80,000 were on credit and $120,000 were for cash. Moreover, of the $80,000 credit sales for 2014, Healy collected $20,000 cash on those receivables before year-end 2014. The company also paid $40,000 cash for 2014 wages. Its employees also earned another $20,000 in wages for 2014, which were not yet paid at year-end 2014.
Compute the company’s net income for 2014.
Answer:
$140,000
Explanation:
Computation of the company’s net income for 2014.
Using this formula
Net income=Revenue – Expenses
Let plug in the formula
Net income=$200,000 - $40,000+$20,000
Net income= $140,000
Therefore the company’s net income for 2014 will be $140,000
Answer:
$140,000
Explanation:
The records of Penny Co. indicated that $397,250 of merchandise should be on hand on December 31. The physical inventory indicates that $394,070 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for the year ended December 31.
Chart of Accounts
CHART OF ACCOUNTS
Penny Co.
General Ledger
ASSETS
110 Cash
120 Accounts Receivable
125 Notes Receivable
130 Merchandise Inventory
131 Estimated Returns Inventory
140 Supplies
142 Prepaid Insurance
180 Land
190 Equipment
191 Accumulated Depreciation
LIABILITIES
210 Accounts Payable
216 Salaries Payable
221 Sales Tax Payable
222 Customers Refunds Payable
231 Unearned Rent
241 Notes Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
EXPENSES
510 Cost of Merchandise Sold
521 Delivery Expense
522 Advertising Expense
523 Depreciation Expense
526 Salaries Expense
531 Rent Expense
533 Insurance Expense
534 Supplies Expense
536 Credit Card Expense
560 Miscellaneous Expense
710 Interest Expense
Answer:
Penny Co.
Adjusting Journal Entry for the inventory shrinkage for the year ended December 31:
Debit 510 Cost of Merchandise Sold $3,180
Credit 130 Merchandise Inventory $3,180
To record inventory shrinkage.
Explanation:
a) Data and Calculations:
Merchandise inventory on December 31 = $397,250
Physical inventory on December 31 = $394,070
Shrinkage = $3,180
b) Inventory Shrinkage is a cost to the business. It occurs when the physical inventory count yields an amount that is less than the amount in the accounting records. It may happen for some reasons, including theft, errors, damage, or loss. The best way to record inventory shrinkage is to debit the Cost of Goods Sold and to credit the Inventory account.
Consider a firm with an EBIT of $11,400,000. The firm finances its assets with $51,800,000 debt (costing 7.4 percent) and 10,900,000 shares of stock selling at $8.00 per share. The firm is considering increasing its debt by $25,000,000, using the proceeds to buy back shares of stock. The firm is in the 30 percent tax bracket. The change in capital structure will have no effect on the operations of the firm. Thus, EBIT will remain at $11,400,000. Calculate the EPS before and after the change in capital structure and indicate changes in EPS. (Round your answers to 3 decimal places.)
Answer:
EPS Before the change in capital structure = $0.486 Per shares
EPS After the change in capital structure = $0.515 Per shares
Difference = $ 0.029
Explanation:
Calculation of EPS before the change in capital structure :
Particulars Amount
EBIT $ 11,400,000
Interest Cost $ 3,833,200 (51,800,000×7.4%)
Earning After Interest $ 7,566,800
Tax ( 30% ) $ 2,270,040
Net Profit after tax $ 5,296,760
Number of Shares outstanding $ 10,900,000
Earning Per Shares $0.486
Calculation of EPS after the change in capital structure :
Particulars Amount
EBIT $ 11,400,000
Interest Cost $ 5,683,200
( $ 76,800,000×7.4%)
Earning After Interest $ 5,716,800
Tax ( 30%) $ 1,715,040
Net Profit after tax $40,01,760
Number of Shares outstanding 77,75,000
Earning Per Shares $0.515
∴ we get
EPS Before the change in capital structure = $0.486 Per shares
EPS After the change in capital structure = $0.515 Per shares
Difference = $ 0.486 - 0.515 = $ 0.029
Fox Corporation has provided its contribution format income statement for June. The company produces and sells a single product: sales (2,700 units), $261,900; variable costs, $102,600; contribution margin, $159,300; fixed costs, $136,300; and operating profit, $23,000.If the company sells 3,000 units, its total contribution margin should be closest to _____.A. $25,556
Answer:
Total contribution margin= $177,000
Explanation:
First, we need to calculate the unitary contribution margin:
Unitary contribution margin= total contribution margin / number of units
Unitary contribution margin= 159,300 / 2,700
Unitary contribution margin= $59
Now, the total contribution margin for 3,000 units:
Total contribution margin= 3,000*59
Total contribution margin= $177,000
The Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of:
Group of answer choices
countertrades
intangibles
exports
imports
tariffs
State and EXPLAIN three methods of paying workers
Answer:
three methods employers use to pay the employees are salary, commission, and hourly wage.
Explanation:
salary is a fixed amount that you get for working per month
commmission is getting a percentage of the total that you sell
hourly wage is getting paid for each hour that you work
hope this helps! i would appriciate brainliest too!!
MacGuffins have a demand function of QD = 70 – P and a supply function of QS = 2P + 10. Determine the price at equilibrium
Answer: 20
Explanation:
For us to calculate the equilibrium price, we must equate the quantity demanded with the quantity supplied. In this case, Qd = Qs where,
QD = 70 – P
QS = 2P + 10.
QD = QS
70 - P = 2P + 10
70 - 10 = 2P + P
60 = 3P
P = 60/3
P = 20
The equilibrium price is 20
Joseph Thompson is president and sole shareholder of Jay Corporation (a cash method, calendar year C corporation). In December 2020, Joe asks your advice regarding a charitable contribution he plans to have the corporation make to the University of Maine, a qualified public charity. Joe is considering the following alternatives as charitable contributions in December 2020:_____.
Fair Market Value
(1) Cash donation $200,000
(2) Unimproved land held for six years ($110,000 basis) 200,000
(3) Maize Corporation stock held for eight months ($140,000 basis) 200,000
(4) Brown Corporation stock held for nine years ($360,000 basis) 200,000
Joe has asked you to help him decide which of these potential contributions will be most advantageous taxwise. Jay's taxable income is $3,500,000 before considering the contribution.
Rank the four alternatives, and complete the letter to Joe communicating your advice.
Note: The land and stock are "unrelated use property" but they are not "tangible personal property".
Hoffman, Maloney, Raabe, & Young, CPAs
5191 Natorp Boulevard
Mason, OH 45040
December 10, 2020
Mr. Joseph Thompson
Jay Corporation
1442 Main Street
Freeport, ME 04032
Dear Mr. Thompson:
I have evaluated the proposed alternatives for your 2020 year-end contribution to the University of Maine. I recommend that you sell the Brown Corporation stock and donate the proceeds to the University. The four alternatives are discussed below.
Donation of cash, the unimproved land, or the Brown Corporation stock each will result in a $ __________ charitable contribution deduction. Donation of the Maize Corporation stock will result in only a $ ______________charitable contribution deduction.
You will benefit in two ways if you sell the Brown Corporation stock and give the $ __________in proceeds to the University. Donation of the proceeds will result in a $ ___________charitable contribution deduction. In addition, sale of the stock will result in a $ _________ long-term capital ______________. If Jay Corporation had capital __________________of at least $ ___________ and paid corporate income tax in the past three years, the entire _______________could be ________________and Jay would receive tax refunds for the carryback years. If Jay Corporation _______________capital gains in the carryback years, the capital loss could be carried forward and offset against capital gains of the corporation for up to _______________years.
Jay Corporation ________________ make the donation in time for the ownership to change hands before the end of the year. Therefore, I recommend that you notify your broker immediately so that there will be no problem in completing the donation on a timely basis.
I will be pleased to discuss my recommendation in further detail if you wish. Please call me if you have questions. Thank you for consulting my firm on this matter. We look forward to serving you in the future.
Sincerely,
Richard Stinson, CPA
Answer:
Joseph Thompson of Jay Corporation
Hoffman, Maloney, Raabe, & Young, CPAs
5191 Natorp Boulevard
Mason, OH 45040
December 10, 2020
Mr. Joseph Thompson
Jay Corporation
1442 Main Street
Freeport, ME 04032
Dear Mr. Thompson,
I have evaluated the proposed alternatives for your 2020 year-end contribution to the University of Maine. I recommend that you sell the Brown Corporation stock and donate the proceeds to the University. The four alternatives are discussed below.
Donation of cash, the unimproved land, or the Brown Corporation stock each will result in a $ ___200,000_______ charitable contribution deduction. Donation of the Maize Corporation stock will result in only a $ ____140,000__________charitable contribution deduction.
You will benefit in two ways if you sell the Brown Corporation stock and give the $ __200,000________in proceeds to the University. Donation of the proceeds will result in a $ __200,000_________charitable contribution deduction. In addition, sale of the stock will result in a $ __160,000_______ long-term capital ___loss___________. If Jay Corporation had capital ____gain______________of at least $ ___160,000________ and paid corporate income tax in the past three years, the entire ____capital gain loss___________could be ____deducted____________and Jay would receive tax refunds for the carryback years. If Jay Corporation _____no__________capital gains in the carryback years, the capital loss could be carried forward and offset against capital gains of the corporation for up to ______twenty_________years.
Jay Corporation ______should__________ make the donation in time for the ownership to change hands before the end of the year. Therefore, I recommend that you notify your broker immediately so that there will be no problem in completing the donation on a timely basis.
I will be pleased to discuss my recommendation in further detail if you wish. Please call me if you have questions. Thank you for consulting my firm on this matter. We look forward to serving you in the future.
Sincerely,
Richard Stinson, CPA
Explanation:
1. Cash donation: $200,000 deduction
2. Unimproved land donation: $200,000 deduction, $90,000 long term capital gain forgiven (21% X $90,000 = 18,900 tax saving, or $90,000 could be used to offset otherwise non-deductible capital losses)
3. Maize Corporation stock held 8 months: $140,000 deduction
4. Brown Corporation stock held 9 years: $200,000 deduction, $160,000 loss not available