Answer:
b. What percentage of employers in the service industry use succession planning?
Explanation:
The answer choice number B would not be relevant for Maria Boyd strategy. Succession planning is related to the passing of ownership of the business. and Maria is not in charge of devising ownership schemes, but in charge of implementing a corporate policy in order to improve employee retetion, and reduce in this way, employee turnover.
Answer:
b. What percentage of employers in the service industry use succession planning
Explanation:
GOT IT RIGHT ON TEST 2020
Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. The LLC does not need to report financial information to any third parties, so capital accounts are determined using tax rules (rather than GAAP). Amy is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the beginning of the current tax year, Amy's capital account has a balance of $960,000, and the LLC has debts of $624,000 payable to unrelated parties. The debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. Assume that all LLC debt is shared equally between the partners. The following information about AM's operations for the current year is obtained from the LLC's records.
Ordinary income $900,000
W-2 wages to employees 200,000
Depreciation expense 300,000
Interest income from bond 4,000
Long-term capital loss 6,000
Short-term capital gain 12,000
Charitable contribution 4,000
Cash distribution to Amy 20,000
Unadjusted basis of partnership depreciable property 1,600,000
Year-end LLC debt payable to unrelated parties is $140,000.
Required:
What income, gains, losses, and deductions does Amy report on her income tax return?
Answer: See explanation
Explanation:
Share of ordinary income:
= (Ordinary income - Wages - Depreciation)/2
= (900,000 - 200,000 - 300,000)/2
= 400,000/2
= 200,000
Share of net short term capital gain
= (12,000 - 6,000) × 50%
= 6,000 × 0.5
= 3,000
Share of interest income
= 4000 × 50%
= 4000 × 0.5
= 2000
Share of charitable contribution deduction
= 4000 × 50%
= 4000 × 0.5
= 2000
Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is $4. In year 2, the quantity produced is 4 bars and the price is $5. In year 3, the quantity produced is 5 bars and the price is $6. Using year 1 as the base year, compute nominal GDP, real GDP, and the GDP deflator for each year.
Answer:
The answer is below
Explanation:
The nominal GDP is the market value of goods within a country adjusted for price change.
Nominal GDP for year 1 = Total market value of goods at current price = 3 bars × $4 = $12
Nominal GDP for year 2 = Total market value of goods at current price = 4 bars × $5 = $20
Nominal GDP for year 3 = Total market value of goods at current price = 5 bars × $6 = $30
The real GDP is the market value of goods within a country at current price.
Real GDP for year 1 = Total market value of goods at base year price = 3 bars × $4 = $12
Real GDP for year 2 = Total market value of goods at base year price = 4 bars × $4 = $16
Real GDP for year 3 = Total market value of goods at base year price = 5 bars × $4 = $20
GDP deflator is the ratio of nominal GDP to real GDP multiplied by 100.
GDP deflator in year 1 = (Nominal GDP in year 1 / Real GDP in year 1) × 100 = ($12/$12) × 100 = 100
GDP deflator in year 2 = (Nominal GDP in year 2 / Real GDP in year 2) × 100 = ($20/$16) × 125 = 100
GDP deflator in year 3 = (Nominal GDP in year 3 / Real GDP in year 3) × 100 = ($30/$20) × 100 = 150
University Printers has two service departments Maintenance and Personnel and two operating departments Printing and Developing. Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each.
The following data appear in the company records for the current period:
Maintenance Personnel Printing Developing
Machine-hours ? 455 455 2,590
Labor-hours 315 ? 294 1,491
Department direct cost 11,000 $23,000 $25,000 $23,000
Required: Allocate the service department costs using the reciprocal method. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.
Answer:
Machine hour percentages -Allocation of Maintenance Costs
455 + 455 + 2,590 = 3,500 total machine hrs
Personnel = 455 / 3,500 = 13%
Printing = 455 / 3,500 = 13%
Developing = 2,590 / 3,500 = 74%
Labor hr. percentages--Allocation of Personnel costs
315 + 294 + 1,491 = 2,100 total labor hrs.
Maintenance = 315 / 2,100 = 15%
Printing = 294 / 2,100 = 14%
Developing = 1,491 / 2,100 = 71%
Service
Maintenance Personnel Printing Developing
Costs before allocation 11,000 23,000 25,000 23,000
Allocate maintenance costs -11,000 1,430 1,430 8,140
0 24,430
Allocate personnel costs 3664.5 -24430 3420.2 17345.3
Allocate maintenance costs -3664.5 476.39 476.39 2711.73
Allocate personnel costs 71.46 -476.39 66.69 338.24
Allocate maintenance costs -71.46 9.29 9.29 52.88
Allocate personnel costs 1.39 -9.29 1.3006 6.5959
Allocate maintenance costs -1.39 0 0 1.39
Total costs 0.00 0.00 30403.87 51596.13
Workings
Allocate maintenance costs
Personnel = (11000 * 13%) = 1430
Printing = (11000 * 13%) = 1430
Developing = (11000 * 74%) = 8140
Allocate personnel costs
Maintenance = 24430 * 15% =
Printing = (24430 * 14%) =
Developing = (24430 * 71%) =
Allocate maintenance costs
Personnel = (3664.5 * 13%)
Printing = (3664.5 * 13%)
Developing = (3664.5 * 74%)
Allocate personnel costs
Maintenance = (476.39 * 15%)
Printing = (476.39 * 14%)
Developing = (476.39 * 71%)
Allocate maintenance costs
Personnel = (71.46 * 13%)
Printing = (71.46 * 13%)
Developing = (71.46 * 74%)
Allocate personnel costs
Maintenance= (9.29 * 15%)
Printing = (9.29 * 14%)
Developing = (9.29 * 71%)
The following model is a simplified version of the multiple regression model used by Biddle and Hamermesh (1990) to study the tradeoff between time spent sleeping and working and to look at other factors affecting sleep:
sleep = β0 + β1totwrk + β2educ + β3age + u,
where sleep and totwrk (total work) are measured in minutes per week and educ and age are measured in years. (See also Computer Exercise.)
(i) If adults trade off sleep for work, what is the sign of β1?
(ii) What signs do you think β2 and β3 will have?
(iii) Using the data in SLEEP75.RAW, the estimated equation is
= 3,638.25 - .148 totwrk - 11.13 educ + 2.20 age n = 706, R2 = .113.
If someone works five more hours per week, by how many minutes is sleep predicted to fall? Is this a large tradeoff?
(iv) Discuss the sign and magnitude of the estimated coefficient on educ.
(v) Would you say totwrk, educ, and age explain much of the variation in sleep? What other factors might affect the time spent sleeping? Are these likely to be correlated with totwrk?
Use the data in SLEEP75.RAW from Biddle and Hamermesh (1990) to study whether there is a tradeoff between the time spent sleeping per week and the time spent in paid work. We could use either variable as the dependent variable. For concreteness, estimate the model
sleep =β0+ β1totwrk+u, where sleep is minutes spent sleeping at night per week and totwrk is total minutes worked during the week.
(i) Report your results in equation form along with the number of observations and R2. What does the intercept in this equation mean?
(ii) If totwrk increases by 2 hours, by how much is sleep estimated to fall? Do you find this to be a large effect?
Answer:
1. I²1 will have a negative sign
This is because the more work the adults do, the less sleep they will utilize.
2. The sign of i²2 is likely to be negative. This is because due to the demands placed on them, more educated people are likely to sleep less. Also, general as age increases some people sleep less. While some others sleep more as it increases. So i²3 is a bit complicated to judge.
3. Using the data
^sleep = 3638.24-0.148toteork-11.13educ + 2.20age
N = 706 r² = 0.113
We will convert 5 hours to minutes = 60x5 = 300
Coefficient of totwork = 0.148
O.148x300 = 44.4 minutes
In a week approximately 45 minutes of less sleep is not too much a change.
4. We are to discuss the sign and magnitude of estimated education
More education indicates less sleeping time. This is obvious given the sign of the variable educ. It is negative, but it's effect is quite small. Magnitude is -11.13.
So as education increases by 1 year, expected sleeping time decreases by 11.13 minutes weekly.
5. R² is 0.113. the 3 predictor variables gives us 11.3% of total variations in sleep and rest. 88.7% is unexplained.
Some factors that might also affect it are general health, number and age of children are factors that could correlate with totwork
Suppose that, in a competitive market without government regulations, the equilibrium price of milk is $2.50 per gallon, and employees at grocery stores earn $21.50 per hour. Indicate the following whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market.
a. There are many teenagers who would like to work at grocery stores, but the minimum-wage law sets the hourly wage at $25.00.
b. The government has instituted a legal minimum price of $2.30 per gallon for milk.
c. The government prohibits grocery stores from selling milk for more than $2.30 per gallon.
Explanation:
at price ceiling we have price set at a maximum level. it cannot be raised beyond this level. At binding price ceiling, price would be set to be lower than what is the equilibrium price level. a non binding price ceiling is set to be higher than equilibrium level.
At price floor, price is set to a particular minimum level. It cannot fall lower than this. At binding price floor, price is higher than equilibrium price' at non binding price floor, it is set to be lower than equilibrium price level.
this expalnation should help us to answer this question.
(a) Many teenagers would like to work but minimum wage is set at 25.00 we have Price floor, Binding
(b) Government instituted legal minimum price of a gallon of milk at $2.30 we have Price floor, Non-binding
(c) if the Government prohibits from selling milk for more than $2.30 per gallon then we have Price ceiling, Binding
Rachel pushed very hard to go with Project A rather than Project B. There have been several cost overruns, the project is two weeks beyond its projected finish date, and the technology just isn't working out as planned. Rachel increases the funding for the third time and hires three new designers to help revamp the look of the product. Rachel is engaging in _____.
Answer: escalation of commitment
Explanation:
Escalation of commitment is when an individual or firm chooses an option which tends to be unsuccessful but the individual or firm still continues with the project because there has been investment which has already been made on it.
From the question, we are told that Rachel pushed very hard to go with Project A rather than Project B. From the information given, despite the fact that project A has been unsuccessful, Rachel continued with it and invested more in it rather than changing or leaving it for project B. This shows that Rachel is engaging in escalation of commitment.
Read the overview below and complete the activities that follow. In addition to trade accounts payable, many companies have other types of current liabilities. These include amounts withheld from employees' pay, sales and other taxes payable, deposits, and other accrued liabilities.
CONCEPT REVIEW:
Companies have many different types of current liabilities. These can include various taxes payable (income tax, sales tax, payroll tax), accrued amounts for salary, vacation or other benefits, and estimates such as accrued utilities and warranty. To adhere to the concept of the matching principle, companies must estimate the amount of their other liabilities.
1. Federal anid state governments do not specily the exact______to be maint, but do specify the amounts to be withheld.
2. Income taxes withheld from employees but not yet submitted to the govenment are considered to be a(n)______.
3. When testing customer deposits, auditors typically review a(n)______of the individual deposits.
4. When testing other accrued liabilities. auditors may independently calculate the amount and______ it to management's estimate.
5. Property tax payments are typically______in number.
Answer:
1. Federal and state governments do not specify the exact__number of accounts____to be maintained, but do specify the amounts to be withheld.
2. Income taxes withheld from employees but not yet submitted to the government are considered to be a(n)_liability_____.
3. When testing customer deposits, auditors typically review a(n)_sample_____of the individual deposits.
4. When testing other accrued liabilities. auditors may independently calculate the amount and__compare____ it to management's estimate.
5. Property tax payments are typically_numerous_____in number.
Explanation:
Even Federal and State governments and business organizations apply the matching principle of the generally accepted accounting principles. The principle requires that revenues are matched to the expenses that are incurred in generating them and vice versa. The purpose is to present a balance view of financial performance and position of the reporting entity. For this reason, who expenses may not be actually paid for and they are recognized while some that have been paid for are not. The same rule applies to the revenue side.
Question 3
20 pts
Solve the problem
A normal distribution has a limited range and can be skewed in either direction.
True
0 False
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The following incorrect income statement was prepared by the accountant of the Axel Corporation:
AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains:
Sales revenue $660,000
Interest revenue 39,000
Gain on sale of investments 86,000
Total revenues and gains 785,000
Expenses and losses:
Cost of goods sold $360,000
Selling expense 66,000
Administrative expense 86,000
Interest expense 23,000
Restructuring costs 62,000
Income tax expense 47,000
Total expenses and losses 644,000
Net Income $141,000
Earnings per share $1.41
Required:
Prepare a multiple-step income statement for 2018 applying generally accepted accounting principles. The income tax rate is 40%.
Answer:
AXEL CORPORATION
Income Statement For the Year Ended December 31, 2021
Particulars Amount Amount
Sales Revenue $6,60,000
Less : Cost of Goods Sold $360,000
Gross Profit $300,000
Less: Operating Expenses
Selling Expenses $66,000
Administrative Expenses $86,000 $152,000
Operating Income $148,000
Non- Operating and others
Restructuring cost -$62,000
Interest Expenses -$23,000
Interest Revenue $39,000
Gain on sale of investment $86,000 $40,000
Net Income before Taxes $188,000
Less : Income Tax Expenses $47,000
Net income after Taxes $141,000
The Earning Per Shares remains $1.41
The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows:
Dennis Overton $180,000
Ben Testerman 120,000
The following additional partner transactions took place during the year:
1. In early January, Randy Campbell is admitted to the partnership by contributing $75,000 cash for a 20% interest.
2. Net income of $150,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $40,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Campbell.
3. The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income.
Required:
Prepare a statement of partnership equity for the year ended December 31, 20Y5.
Answer:
450000
Explanation:
The statement of partners' capital shows the changes in each partner's capital account for the year or period being reported on. It has the same format as the statement of owner's equity except that it includes a column for each partner and a total column for the company rather than just one column. The statement starts with the beginning capital balance, followed by the amounts of investments made, the share of net income or loss, and withdrawals made during the reporting period to determine the capital balance at the end of the period.
Dennis Ben Randy Total capital
Balance jan1,20Y5 180,000 120,000 - 300,000
Admission of randy - - 75000 75000
Salary Allowance 40000 - - 40000
Remaining income 52800 35200 22000 110,000
Partners withdrawals (46400) (17600) (11000) (75000 )
Balance Dec 31,2015 226400 137600 86000 450000
The following were selected from among the transactions completed by Babcock Company during November of the current year:
Nov. 3 Purchased merchandise on account from Moonlight Co., list price $85,000, trade discount 25%, terms FOB destination, 2/10, n/30.
Nov.4 Sold merchandise for cash, $37,680. The cost of the merchandise sold was $22,600.
Nov. 5 Purchased merchandise on account from Papoose Creek Co., $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice.
Nov. 6 Returned $13,500 ($18,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.
Nov. 8 Sold merchandise on account to Quinn Co., $15,600 with terms n/15. The cost of the merchandise sold was $9,400.
Nov. 13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
Nov. 14 Sold merchandise on VISA, $236,000. The cost of the merchandise sold was $140,000.
Nov. 15 Paid Papoose Creek Co. on account for purchase of November 5.
Nov. 23 Received cash on account from sale of November 8 to Quinn Co.
Nov. 24 Sold merchandise on account to Rabel Co., $56,900, terms 1/10, n/30. The cost of the merchandise sold was $34,000.
Nov. 28 Paid VISA service fee of $3,540.
Nov. 30 Paid Quinn Co. a cash refund of $6,000 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,300.
Journalize the transactions.
Answer:
Babcock Company
Journal Entries:
Nov. 3:
Debit Inventory $63,750
Credit Accounts Payable (Moonlight Co.) $63,750
To record the purchase of goods on account, terms FOB destination, 2/10, n/30.
Nov. 4:
Debit Cash Account $37,680
Credit Sales Revenue $37,680
To record the sale of goods for cash.
Debit Cost of goods sold $22,600
Credit Inventory $22,600
To record the cost of goods sold.
Nov. 5:
Debit Inventory $47,500
Credit Cash (For prepaid freight) $810
Credit Accounts Payable (Papoose Creek Co.) $46,690
To record the purchase of goods on account, terms FOB Shipping point, 2/10, n.30.
Nov. 6:
Debit Accounts Payable (Moonlight Co.) $13,500
Credit Inventory $13,500
To record the return of goods to Moonlight Co.
Nov. 8:
Debit Accounts Receivable (Quinn Co.) $15,600
Credit Sales Revenue $15,600
To record the sale of goods on account, terms n/15.
Debit Cost of goods sold $9,400
Credit Inventory $9,400
To record the cost of goods sold.
Nov. 13:
Debit Accounts Payable (Moonlight Co.) $50,250
Credit Cash Discount $1,005
Credit Cash Account $49,245
To record the payment for goods on account
Nov. 14:
Debit VISA Account $236,000
Credit Sales Revenue $236,000
To record the sale of goods on VISA.
Debit Cost of goods sold $140,000
Credit Inventory $140,000
To record the cost of goods sold.
Nov. 15:
Debit Accounts Payable (Papoose Creek Co.) $46,690
Credit Cash Discount $9,338
Credit Cash Account $37,353
To record the payment on account.
Nov. 23:
Debit Cash Account $15,600
Credit Accounts Receivable (Quinn Co.) $15,600
To record the receipt of cash on account.
Nov. 24:
Debit Accounts Receivable (Rable Co.) $56,900
Credit Sales Revenue $56,900
To record the sale of goods on account, terms 1/10, n/30.
Debit Cost of goods sold $34,000
Credit Inventory $34,000
To record the cost of goods sold.
Nov. 28:
Debit VISA Service Fee Expense $3,540
Credit Cash Account $3,540
To record the payment for VISA service.
Nov. 30:
Debit Inventory $3,300
Credit Cost of goods sold $3,300
To record the return of goods.
Debit Sales Returns $6,000
Credit Accounts Receivable $6,000
To record the return of goods by Quinn Co.
Debit Accounts Receivable $6,000
Credit Cash Account $6,000
To record the refund for returned goods.
Explanation:
Babcock Company uses Journals to record business transactions as they occur on a daily basis. They provide the needed guidance to ensure that the accounts involved in every business transaction are properly identified and entries are correctly recorded on the correct side of the accounts. Transactions are recorded following the ubiquitous accounting equation, the accrual concept, and matching principle of generally accepted accounting principles.
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department:
Units:
Beginning Inventory: 30,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 120,000.
Units completed and transferred out: 150,000.
Ending Inventory: 32,500 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $48,000.
Costs in beginning Work in Process - Conversion: $53,850.
Costs incurred in February - Direct Materials: $328,050.
Costs incurred in February - Conversion: $604,150.
Required:
Calculate the cost per equivalent unit of materials.
Answer:
Cost per equivalent unit of material = $2.06
Explanation:
Total cost of material= Cost of material in beginning WIP + Cost of material incurred in February
= $48,000 + $328,050
= $376,050
Equivalent units = Number of units completed and transferred+ Ending inventory
= 150,000 units + 32,500 units
= 182,500 units
Cost per equivalent unit of material = Total cost of direct material / Equivalent units
= $376,050 / 182,500 units
= $2.06
What was the first chess champion
Answer:
Wilhelm Steinitz
Explanation:
Answer:
Wilhelm Steinitz
Explanation:
in 1886 he took place the first officially recognized World Chess Championship. So in the year of 1886 he was proclaimed as the first World Chess Champion. The final result was 10 victories for Steinitz, 5 for Zukertort and 5 draws
Etxuck327 Inc. sells a particular textbook for $39. Variable expenses are $28 per book. At the current volume of 49,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:
Answer:
539,000.00
Explanation:
As per the contribution margin analysis concept, the break-even point is obtained by dividing fixed cost by contribution margin per unit.
For Etuck327,
The selling price is $39
Variable expense is $28
Break-even in units is 49,000 books.
Contribution margin per unit = selling price - variable costs
=$39- $28
=$11
if Break-even = fixed cost/ contribution margin per unit, then
49,000= fixed cost / 11
fixed costs = 11 x 49000
Fixed costs = 539,000.00
Swifty Company purchased equipment for $256,800 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 48,000 units and estimated working hours are 20,400. During 2020, Swifty uses the equipment for 600 hours and the equipment produces 1,000 units.
Required:
Compute depreciation expense under each of the following methods. Swifty is on a calendar-year basis ending December 31.
a. Straight-line method for 2020 $enter a dollar amount.
b. Activity method (units of output) for 2020 $enter a dollar amount.
c. Activity method (working hours) for 2020 $enter a dollar amount.
d. Sum-of-the-years'-digits method for 2022 $enter a dollar amount (e) Double-declining-balance method for 2021
Answer:
a. Straight line method.
Depreciation per annum = ($ 256,800 - $12,000 ) / 8 = $ 30,600.
Depreciation for 2020 = $ 30,600 * ( 3 /12 ) = $ 7,650.
b. Units of output
Depreciation per unit = ( $ 256,800 - $ 12,000 ) / 48,000 = $ 5.1
Depreciation for 2020 = 1,000 * $ 5.1 = $ 5,100.
c. Working hours.
Depreciation per hours = ( $ 256,800 - $ 12,000 ) / 20,400 = $ 12
Depreciation for 2020 = 600 * $ 12 = $ 7,200.
D. Sum of digits method
Sum of years = 8 ( 8 +1 ) / 2 = 36.
Year - 1 used ( 3 / 12 = 0.25)
Year-2 used ( 12 / 12 = 1 )
Remaining ( 8 - 1 - 0.25 = 6.75)
Depreciation for 2022 = ($ 256,800 - $ 12,000 ) * ( 6.75 / 36 )
Depreciation for 2022 = $ 45,900.
e. Double declining balance
Depreciation rate = 200 / 8 = 25 %.
Depreciation for 2020 = $256,800 * 25 % * (3 /12)
Depreciation for 2020 = $16,050.
Depreciation for 2021 = ( $256,800 - $ 16,050) * 25%
Depreciation for 2021 = $60,188.
Sunset Products manufactures skateboards. The following transactions occurred in March. Purchased $24,500 of materials on account. Issued $1,450 of supplies from the materials inventory. Purchased $25,900 of materials on account. Paid for the materials purchased in transaction (1) using cash. Issued $30,900 in direct materials to the production department. Incurred direct labor costs of $29,500, which were credited to Wages Payable. Paid $22,400 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop. Applied overhead on the basis of 120 percent of direct labor costs. Recognized depreciation on manufacturing property, plant, and equipment of $5,900.
The following balances appeared in the accounts of Sunset Products for March:
Beginning Ending
Materials Inventory $ 13,500 ?
Work-in-Process Inventory 24,750 ?
Finished Goods Inventory 97,500 $ 54,750
Cost of Goods Sold 120,000
Required:
a. Prepare journal entries to record the transactions. (If o entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Transactions General Journal Debit Credit
1.
2.
3.
4.
5.
6.
7.
8.
9.
b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
Materials Inventory
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Work in Progress Inventory
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Manufacturing Overhead Control
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Applied Manufacturing Overhead
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Accounts Payable
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Cash
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Wages Payable
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Accumulated Depreciation-Property, Plant, and Equipment
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Finished Goods Inventory
Beg. bal. ___________ ____________
Goods Completed ___________ ____________ Transfer to Cost of Goods Sold
End. bal. ___________ ____________
Cost of Goods Sold
Beg. bal. ___________ ____________
Finished Goods Inventory ___________ ____________
End. bal. ___________ ____________
Answer:
Sunset Products
a) Journal Entries:
Transactions General Journal Debit Credit
Materials Inventory $24,500
Accounts Payable $24,500
To record the purchase of materials on account.
Manufacturing Overhead $1,450
Materials Inventory $1,450
To record the issue of supplies.
Materials Inventory $25,900
Accounts Payable $25,900
To record the purchase of materials on account.
Accounts Payable $24,500
Cash Account $24,500
To record the payment on account.
Work-in-Process Inventory $30,900
Materials Inventory $30,900
To record the issue of direct materials to the production department.
Work-in-Process Inventory $29,500
Factory Wages $29,500
To record direct labor costs to work in process.
Manufacturing Overhead $22,400
Cash Account $22,400
To record the payment for utilities and other expenses.
Work-in-Process Inventory $35,400
Manufacturing Overhead $35,400
To apply overhead to work in process.
Manufacturing Overhead $5,900
Depreciation Expense $5,900
To recognize depreciation on property, plant, and equipment.
Manufacturing overhead applied $29,750
Manufacturing overhead $29,750
To transfer manufacturing overhead to the overhead applied account.
b) T-accounts:
Materials Inventory
Transaction Details Debit Credit
Beginning balance $ 13,500
Accounts Payable 24,500
Manufacturing overhead $1,450
Accounts Payable 25,900
Work-in-Process Inventory 30,900
Ending balance $31,550
Work-in-Process Inventory
Transaction Details Debit Credit
Beginning balance $24,750
Materials Inventory 30,900
Factory Wages 29,500
Manufacturing Overhead 35,400
Finished Goods Inventory $71,600
Ending balance 54,200
Finished Goods Inventory
Transaction Details Debit Credit
Beginning balance $97,500
Work-in-Process 71,600
Cost of goods sold $114,350
Ending balance 54,750
Cost of Goods Sold
Transaction Details Debit Credit
Beginning balance $120,000
Overapplied overhead $5,650
Ending balance 114,350
Manufacturing Overhead Control Account
Transaction Details Debit Credit
Materials Inventory $1,450
Cash Account 22,400
Depreciation expense 5,900
Manufacturing overhead applied $29,750
Manufacturing Overhead Applied
Transaction Details Debit Credit
Work in Process $35,400
Manufacturing overhead $29,750
Overapplied overhead 5,650
Accounts Payable
Transaction Details Debit Credit Materials Inventory $24,500
Materials Inventory 25,900
Cash Account $24,500
Ending Balance 25,900
Cash Account
Transaction Details Debit Credit
Accounts Payable $24,500
Manufacturing Overhead 22,400
Explanation:
a) Data and Calculations:
Accounts balances of Sunset Products for March:
Beginning Ending
Materials Inventory $ 13,500 ?
Work-in-Process Inventory 24,750 ?
Finished Goods Inventory 97,500 $ 54,750
Cost of Goods Sold 120,000
Help me please thank you
Answer:
You have to be intelligent, risk taking and you haver to care about your people.
Explanation:
If there is a technological advance that lowers the cost of producing x-ray machines, then we can say that the
Answer:
C) quantity supplied of those machines will go up.
Explanation:
the options are missing:
A ) quantity demanded for those machines will increase.
B) demand for those machines will shift right.
C) quantity supplied of those machines will go up.
D) quantity supplied of those machines will decrease.
If production costs decrease, the supply curve will shift to the right, increasing the total quantity supplied while decreasing the sales price. Advances in technology increase productivity, which allows companies to supply a higher amount of goods at lower prices, which in turn increases the total quantity demanded for these goods.
A remotely located air sampling station can be powered by solar cells or by running an electric line to the site and using conventional power. Solar cells will cost $12,600 to install and will have a useful life of 4 years with no salvage value. Annual costs for inspection, cleaning, etc. are expected to be $1,400. A new power line will cost $11,000 to install, with power costs expected to be $800 per year. Since the air sampling project will end in 4 years, the salvage value of the line is considered to be zero. At an interest rate of 10% per year, which alternative should be selected on the basis of a future worth analysis?
Answer:
Since the total future worth of running an electric line of $19,353.42 is less than the total future worth of solar cells is $24,132.22, it implies that it will be cheaper to run an electric line than to use solar cells. Therefore, running an electric line should be selected.
Explanation:
The future worth analysis refers to an act of determining what the the worth of present amount of money or stream of money invested at an interest rate will after in some period or years to come.
To determine which one to select between solar cells and running an electric line, the we need to calculate the future worth of both and compared as follows:
a. Calculation of future value of solar cells
Calculation of future worth of $12,600 installation cost
FW of $12,600 = PW of $12,600 * (1 + r)^n ................ (1)
Where;
FW of $12,600 = Future worth of $12,600 installation cost = ?
PW of $12,600 = Present worth of $12,600 installation cost = $12,600
r = interest rate = 10%, or 0.10
n = number of years = 4
Substitute the values into equation (1), we have:
FW of $12,600 = $12,600 * (1 + 0.10)^4
FW of $12,600 = $12,600 * 1.4641
FW of $12,600 = $18,447.66
Calculation of future worth of annual costs for inspection, cleaning, etc. of $1,400
The future worth of annual costs for inspection, cleaning, etc. of $1,400 can also be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:
FW of $1,400 = M * (((1 + r)^n - 1) / r) ................................. (2)
Where,
FW of $1,400 = Future value of Annual costs for inspection, cleaning, etc. of $1,400 =?
M = Annual costs for inspection, cleaning, etc. = $1,400
r = interest rate = 10%, or 0.10
n = number of years = 4
Substitute the values into equation (2), we have:
FW of $1,400 = $1,400 * (((1 + 0.01)^4 - 1) / 0.01)
FW of $1,400 = $1,400 * 4.060401
FW of $1,400 = $5,684.56
Calculation of total future worth of solar cells
This is calculated by simply adding the FW of $12,600 and FW of $1,400 as follows:
Total future worth of solar cells = FW of $12,600 + FW of $1,400 = $18,447.66 + $5,684.56 = $24,132.22
Therefore, the total future worth of solar cells is $24,132.22.
b. Calculation of future value of running an electric line
Calculation of future worth of $11,000 installation cost
FW of $11,000 = PW of $11,000 * (1 + r)^n ................ (3)
Where;
FW of $11,000 = Future worth of $11,000 installation cost = ?
PW of $11,000 = Present worth of $11,000 installation cost = $11,000
r = interest rate = 10%, or 0.10
n = number of years = 4
Substitute the values into equation (3), we have:
FW of $11,000 = $11,000 * (1 + 0.10)^4
FW of $11,000 = $11,000 * 1.4641
FW of $11,000 = $16,105.10
Calculation of future worth of expected annual power costs of $800
The future worth of expected annual power costs of $800 can also be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:
FW of $800 = M * (((1 + r)^n - 1) / r) ................................. (4)
Where,
FW of $800 = Future value of expected annual power costs of $800 =?
M = Expected annual power costs = $800
r = interest rate = 10%, or 0.10
n = number of years = 4
Substitute the values into equation (4), we have:
FW of $800 = $800 * (((1 + 0.01)^4 - 1) / 0.01)
FW of $800 = $800 * 4.060401
FW of $800 = $3,248.32
Calculation of total future worth of running an electric line
This is calculated by simply adding the FW of $11,000 and FW of $800 as follows:
Total future worth of running an electric line = FW of $11,000 + FW of $800 = $16,105.10 + $3,248.32 = $19,353.42
Therefore, the total future worth of running an electric line is $19,353.42.
c. Conclusion
Since the total future worth of running an electric line of $19,353.42 is less than the total future worth of solar cells is $24,132.22, it implies that it will be cheaper to run an electric line than to use solar cells. Therefore, running an electric line should be selected.
Determining the true cash balance, starting with the unadjusted book balance
Nickleson Company had an unadjusted cash balance of $7,176 as of May 31. The company’s bank statement, also dated May 31, included a $67 NSF check written by one of Nickleson’s customers. There were $1,239 in outstanding checks and $255 in deposits in transit as of May 31. According to the bank statement, service charges were $35, and the bank collected an $600 note receivable for Nickleson. The bank statement also showed $14 of interest revenue earned by Nickleson.
Required:
Determine the true cash balance as of May 31. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)
True cash balance
Answer:
True Cash Balance $7,688
Explanation:
The computation of the true cash balance is shown below:
Unadjusted Cash Balance as of May 31 $7,176
Add: Interest Earned $14
Note Collected by Bank $600
Less: NSF check ($67)
Less Bank charges ($35)
True Cash Balance $7,688
Hence, the true cash balance is $7,688 and the same is to be considered
1. Stockholders invest $90,000 cash to start the business.
2. Purchased three digital copy machines for $400,000, paying $118,000 cash and signing a 5-year, 6% note for the remainder.
3. Purchased $5,500 paper supplies on credit.
4. Cash received for photocopy services amounted to $8,400.
5. Paid $500 cash for radio advertising.
6. Paid $800 on account for paper supplies purchased in transaction 3.
7. Dividends of $1,600 were paid to stockholders.
8. Paid $1,200 cash for rent for the current month.
9. Received $2,200 cash advance from a customer for future copying.
10. Billed a customer for $500 for photocopy services completed.
No. Account Titles and Descriptions Debit Credit
1.
2.
3.
4.
5.
Answer:
1. Stockholders invest $90,000 cash to start the business.
Dr Cash 90,000
Cr Common stock 90,000
2. Purchased three digital copy machines for $400,000, paying $118,000 cash and signing a 5-year, 6% note for the remainder.
Dr Copy machines 400,000
Cr Cash 118,000*
Cr Notes payable 282,000
*Where did they get the extra cash from?
3. Purchased $5,500 paper supplies on credit.
Dr Supplies 5,500
Cr Accounts payable 5,500
4. Cash received for photocopy services amounted to $8,400.
Dr Cash 8,400
Cr Service revenue 8,400
5. Paid $500 cash for radio advertising.
Dr Advertising expense 500
Cr Cash 500
6. Paid $800 on account for paper supplies purchased in transaction 3.
Dr Accounts payable 800
Cr Cash 800
7. Dividends of $1,600 were paid to stockholders.
Dr Dividends 1,600
Cr Cash 1,600
8. Paid $1,200 cash for rent for the current month.
Dr Rent expense 1,200
Cr Cash 1,200
9. Received $2,200 cash advance from a customer for future copying.
Dr Cash 2,200
Cr Unearned service revenue 2,200
10. Billed a customer for $500 for photocopy services completed.
Dr Accounts receivable 500
Cr Service revenue 500
On May 31, the Cash account of Teasel had a normal balance of $5,700. During May, the account was debited for a total of $12,900 and credited for a total of $12,200. What was the balance in the Cash account at the beginning of May
Answer:
$6,400
Explanation:
Cash Account
Debit :
Beginning Balance $5,700
Receipts $12,900
Totals $18,600
Credit :
Payments $12,200
Ending Balance (Balancing figure) $6,400
Totals $18,600
For Coppertone products, evaluations in the postpurchase behavior stage of the consumer purchase decision process that are most likely to cause dissatisfaction are
Answer:
dry skin and acne
Explanation:
Coppertone is an American brand name of a sunscreen. This brand is headquartered in Whippany, New Jersey. Coppertone the Coppertone girl logo and a different kind of fragrance.
For Coppertone products, evaluations in the post purchase behavior stage of the consumer purchase decision process that are most likely to cause dissatisfaction are dry skin and acne.
Seiko’s current salary is $85,000. Her marginal tax rate is 32 percent and she fancies European sports cars. She purchases a new auto each year. Seiko is currently a manager for an Idaho Office Supply. Her friend, knowing of her interest in sports cars, tells her about a manager position at the local BMW and Porsche dealer. The new position pays only $75,000 per year, but it allows employees to purchase one new car per year at a discount of $15,000. This discount qualifies as a nontaxable fringe benefit. In an effort to keep Seiko as an employee, Idaho Office Supply offers her a $10,000 raise. Answer the following questions about this analysis.
Problem 12-41
Part a a. Assuming it has a 21 percent marginal tax rate, what is the annual after-tax cost to Idaho Office Supply to provide Seiko with the $10,000 increase in salary?
Answer:
$7,900
Explanation:
Calculation for the annual after-tax cost
Additional salary = $ 10,000
Marginal tax rate=21%
First step is to find the income tax benefit
Income tax benefit = $ 10,000 x 21%
Income tax benefit= $ 2,100
Second step is to find the Annual after tax cost of additional salary
Annual after tax cost of additional salary = $ 10,000 - $2,100
Annual after tax cost of additional salary = $7,900
Therefore the annual after-tax cost will be $7,900
The following information relates to Sheridan Company for the year 2022.
Retained earnings, January 1, 2022 $40,320
Advertising expense $1,510
Dividends during 2022 4,200
Rent expense 8,740
Service revenue 52,500
Utilities expense 2,600
Salaries and wages expense 23,520
Other comprehensive income (net of tax) 340
Required:
a. After analyzing the data, compute net income.
b. Prepare a comprehensive income statement for the year ending December 31, 2022.
Answer:
a. Computation of net income
Particulars Amount
Service revenue $52,500
Less: Expenses
Salaries and wages expenses ($23,520)
Utilities expense ($2,600)
Rent expense ($8,740)
Advertising expense ($1,510)
Net Income $16,130
b. Computation of comprehensive income statement
Particulars Amount
Net Income $16,130
Add: Other Comprehensive Income $380
Comprehensive Income $16,470
Note: Dividend will not be included as it forms part of Income statement
Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is $2. In year 2, the quantity produced is 5 bars and the price is $4. In year 3, the quantity produced is 7 bars and the price is $6.
Required:
Using year 1 as the base year, compute nominal GDP, real GDP, and the GDP deflator for each year.
Answer:
Nominal GDP in year 1 = $6
Nominal GDP in year 2 = $20
Nominal GDP in year 3 = $42
Real GDP in year 1 = $6
Real GDP in year 2 = $10
Real GDP in year 3 = $14
GDP deflator in year 1 = 100
GDP deflator in year 2 = 200
GDP deflator in year 3 = 300
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
Nominal GDP = quantity produced x current year price
Nominal GDP in year 1 = (3 x $2) = $6
Nominal GDP in year 2 = 5 x $4 = $20
Nominal GDP in year 3 = 7 x $6 = $42
Real GDP = quantity produced x base year price
Real GDP in year 1 = (3 x $2) = $6
Real GDP in year 2 = 5 x $2 = $10
Real GDP in year 3 = 7 x $2 = $14
GDP deflator = nominal GDP / Real GDP x 100
GDP deflator in year 1 = $6 / $6 x 100 = 100
GDP deflator in year 2 = $20 / $10 x 100= 200
GDP deflator in year 3 = $42 / 14 x 100 = 300
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during the year but paid $750,000 in dividends to common shareholders. Throughout the year, the firm purchased $5.4 million of machinery that was needed for a new project. You have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. Finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 5% interest rate. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.
What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar, if necessary.
Answer:
200,000
Explanation:
A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. The cash flow statement measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses.
Cash flow from operating activities
Net Income 5,000,000
Less Depreciation (450,000)
Cashflow from operations 5,450,000
Cash flow from investing activities
Purchase of Fixed assets 5,400,,000
Cash flow from investing activities
Issue of long term debt 1,000,000
Dividend paid (750,000)
Cash generated from investing activities 250,000
Change in cash 300,000
Beginning balance 100,000
Closing balance 200,000
The following data pertain to the Oneida Restaurant Supply Company for the year just ended.
Budgeted sales revenue $205,000
Actual manufacturing overhead 336,000
Budgeted machine hours (based on practical capacity) 8,000
Budgeted direct-labor hours (based on practical capacity) 20,000
Budgeted direct-labor rate $14
Budgeted manufacturing overhead $364,000
Actual machine hours 11,000
Actual direct-labor hours 18,000
Actual direct-labor rate $15
Required:
a. Compute the firm's predetermined overhead rate for the year using each of the following common cost drivers: (a) machine hours, (b) direct-labor hours, and (c) direct-labor dollars.
b. Calculate the over-applied or under-applied overhead for the year using each of the cost drivers listed above.
Answer:
Predetermined overhead rate = Budgeted manufacturing rate/Allocation base
a. Machine hours
= 364,000 / 8,000
= $45.5
Predetermined overhead rate = $45.5
Direct-labor hours
= 364,000 / 20,000
= $18.2
Predetermined overhead rate = $18.2
Direct-labor dollars
Budgeted labor hours = 20,000 * $14 = $280,000
Predetermined overhead rate = 364,000 / $280,000 = $1.3
b. Machine hours
Manufacturing overhead applied = Actual machine hours * Predetermined overhead rate = $45.5 * 11,000 = $500,500
Over/Under applied overhead = 336,000 - 500,500
Over-applied overhead = $164,500
Direct-labor hours
Manufacturing overhead applied = Actual direct-labor hours * Predetermined overhead rate = $18.2 * 18,000 = $327,600
Over/Under applied overhead = 336,000 - 327,600
Under-applied overhead = $8400
Direct-labor dollars
Manufacturing overhead applied = Actual direct-labor hours * Actual direct-labor rate * Predetermined overhead rate
Manufacturing overhead applied = 18,000 * $15 * $1.3 = 351,000
Over/Under applied overhead = 336,000 - 351,000
Over-applied overhead = $15,000
we know that
Predetermined overhead rate = Budgeted manufacturing rate ÷ Allocation base
a. Machine hours
= 364,000 ÷8,000
= $45.5
Predetermined overhead rate = $45.5
Direct-labor hours
= 364,000 ÷ 20,000
= $18.2
Predetermined overhead rate = $18.2
Direct-labor dollars
Budgeted labor hours = 20,000 × $14 = $280,000
Predetermined overhead rate = 364,000 ÷ $280,000 = $1.3
b. Machine hours
Manufacturing overhead applied = Actual machine hours × Predetermined overhead rate
= $45.5 × 11,000
= $500,500
So,
Over/Under applied overhead = 336,000 - 500,500
Over-applied overhead = $164,500
Direct-labor hours
Manufacturing overhead applied = Actual direct-labor hours × Predetermined overhead rate
= $18.2 × 18,000
= $327,600
Over/Under applied overhead = 336,000 - 327,600
Under-applied overhead = $8400
Direct-labor dollars
Manufacturing overhead applied = Actual direct-labor hours × Actual direct-labor rate × Predetermined overhead rate
= 18,000 × $15 × $1.3
= 351,000
Over/Under applied overhead = 336,000 - 351,000
Over-applied overhead = $15,000
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Jane is planning to go on a camping trip. She purchases a bottle of mineral water, a pack of biscuits, a small tube of toothpaste, and a toothbrush from the supermarket near her house. The items that Jane has purchased from the supermarket are _____.
franchise
Explanation:
right granted to an individual or group to the market for a business goods or services within a certain area
Jane is planning to go on a camping trip. The items that Jane has purchased from the supermarket are non durable goods.
What do you mean by the non durable goods?The lifespan of consumer nondurable items, which are bought for immediate or nearly immediate consumption, ranges from minutes to three years. These frequently include things like meals, drinks, clothes, shoes, and gasoline.
Non-durable commodities are typically produced, delivered, and sold to consumers quickly.
These products are frequently used very rapidly as well, thus consumers require a constant supply in order to keep stocking up.
Therefore, Jane is planning to go on a camping trip. She purchases a bottle of mineral water, a pack of biscuits, a small tube of toothpaste, and a toothbrush from the supermarket near her house. The items that Jane has purchased from the supermarket are non durable goods.
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One-year Treasury securities yield 4.85%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 5.2%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities
Answer:
5.025%
Explanation:
When we assume that the pure expectations theory is correct, then we are assuming that there is no risk premium involved. The formula to determine the yield for the 2 year treasury security:
(1 + i)² = (1 + 4.85%) x (1 + 5.2%)
(1 + i)² = 1.0485 x 1.052
(1 + i)² = 1.103022
√(1 + i)² = √1.103022
1 + i = 1.050248542
i = 0.050248542 = 5.025%