Answer:
Debit bonds payable $310000
Explanation:
Based on the information given The entry to record the conversion of the bonds will includes all of the following entries except Debit bonds payable $310000 reason been that we were told that On January 1, the par value bonds of $300,000 has with a carrying value of the amount of $310,000 which was converted to 50,000 shares of $5 par value common stock, which means that we are supposed to debit the amount, credit it to Equity/common stock.
The foreign exchange market is a market for converting the currency of one country into that of another country.
a. True
b. False
Answer:
a. True
Explanation:
The foreign exchange market is a market for converting the currency of one country into that of another country.
For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.
Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.
The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.
Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.
Gilligan Co.'s bonds currently sell for $1,230. They have a 6.75% annual coupon rate and a 15-year maturity, and are callable in 6 years at $1,067.50. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. Under these conditions, what rate of return should an investor expect to earn if he or she purchases these bonds, the YTC or the YTM? Select the correct answer. a. 3.20% b. 3.47% c. 4.01% d. 2.93% e. 3.74%
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In the A-B-C classification system, items which account for about 15 percent of the annual dollar value, but which account for a majority of the inventory items, would be classified as: Group of answer choices B items. A items plus B items. B items plus C items. C items. A items.
Answer:
C items
Explanation:
ABC analysis is the inventory management technique of inventory management where the inventory would be divided into 3 types i.e. A, B and C and it is based upon the importance and the control. The C category items would contains high percenatge of the total no of items but at the same time they have the less dollar volume due to which they have lower control
John Joos is the owner and operator of Way to Go LLC, a motivational consulting business. At the end of its accounting period, December 31, 2013, Way to Go has assets of $669,000 and liabilities of $161,000. Using the accounting equation, determine the following amounts:
a. Owner's equity as of December 31, 2013.
b. Owner's equity as of December 31, 2014, assuming that assets decreased by $127,000 and liabilities decreased by $39,000 during 2014.
Answer:
a. $508,000
b. $420,000
Explanation:
a. Assets = Equity + Liabilities
669,000 = Equity + 161,000
Equity = 669,000 - 161,000
Equity = $508,000
b. Assets = Equity + Liabilities
(669,000 - 127,000) = Equity + (161,000 - 39,000)
542,000 = Equity + 122,000
Equity = 542,000 - 122,000
= $420,000
give me three types of internal recruitment
Answer:
Promotions
Transfers
Advertisment
Explanation:
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2. A welder and a carpenter decided to get out of the construction industry and build farm trailers instead. From building a few trailers on weekends, they estimated that the first trailer would take about $700 of their own labor to build and that an 85 percent learning rate can be anticipated on the cumulative average time as each trailer is built. (Note: They decided that their hourly wages should be no less than those they received in the construction trades.) The material costs for each trailer will be about $500, and the craftsmen do not see any way that this can be reduced. They estimate that each trailer can be sold for $1,000. In addition to making their wages on labor, they want to make 15 percent profit on the trailer materials. How many trailers must be built before this rate of profit can be realized
Answer:
Answer is explained in the explanation section below.
Explanation:
Data Given:
Material Cost Per Trailer = $500
Material Cost plus Profit Per Trailer (15%) = $500 + 75 = $575
Selling Price = $1000
Labor Cost Remaining Per Trailer = $425
Formula to Calculate the number of Trailers:
X = X1 ([tex]N^{S}[/tex])
Where,
N = number of Trailers
S = Slope Parameter
X = $425
X1 = $700
So, First we need to find the slope parameter, in order to calculate the number of trailers to be built.
S = [tex]\frac{log \alpha }{log 2}[/tex]
where, α = 0.85 rate of improvement.
Plugging in the values into the formula, we get:
S = [tex]\frac{log (0.85) }{log 2}[/tex]
S = -0.234
Now, we can easily find the number of trailers.
X = X1 ([tex]N^{S}[/tex])
Plugging in the values,
425 = 700 x ([tex]N^{-0.234}[/tex])
Solving For N, we get:
N = 8.4 Trailers
N = 9 Trailers.
Hence, 9 Trailers must be built in order to realize this rate of profit.
Teal Mountain Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Sandhill Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement:
1. Sandhill has the option to purchase the equipment for $19,500 upon termination of the lease. It is not reasonably certain that Sandhill will exercise this option.
2. The equipment has a cost of $190,000 and fair value of $238,500 to Teal Mountain Leasing. The useful economic life is 2 years, with an unguaranteed residual value of $19,500.
3. Teal Mountain Leasing desires to earn a return of 5% on its investment.
4. Collectibility of the payments by Teal Mountain Leasing is probable.
Prepare the journal entries on the books of Teal Mountain Leasing to reflect the payments received under the lease and to recognize income for the years 2017 and 2018.
Answer:
Fair value $238,500
Less: PV of residual value $17,687 (19500*0.90703)
PV of lease payment $220,813
Annual lease = 220813/1.85941
Annual lease = $118,754
Date Account titles and Explanation Debit Credit
1/1/17 Lease receivables $238,500
Cost of goods sold $172,313
Sales $220,813
Inventory $190,000
(To record the lease)
12/31/17 Cash $118,754
Lease receivables $106,829
Interest revenue(238,500*5%) $11,925
(To record the receipts of lease installments)
12/31/18 Cash $118,754
Lease receivables $112,170
Interest revenue(238,500-106829*5%) $6,584
(To record the receipts of lease installments)
12/31/18 Cash $19,500
Lease receivables $19,500
(To record sales of equipment at the end of the lease)
how to reply to brand collaboration
Answer:
"Thank you so much for reaching out. I'd love to discuss a collaboration and agree we are a good fit. I have some ideas but I'd like to hear from you what your brand needs right now as far as content goes. I look forward to working together!"
Explanation:
Posting to T-Accounts Post the amounts for the following transactions (a) through (f) to the appropriate T-accounts.
a. Receive merchandise inventory costing $9,000, purchased with cash.
b. Sell half of inventory in (a) for $7,500 on credit.
c. Place order for $5,000 of additional merchandise inventory to be delivered next month.
d. Pay employee $4,000 for compensation earned during the month.
e. Pay $7,000 rent for use of premises during the month.
f. Receive full payment from customer in part (b).
Answer:
T-accounts
Cash Account
Account Titles Debit Credit
a. Inventory $9,000
d. Salaries Expense 4,000
e. Rent Expense 7,000
f. Sales Revenue $7,500
Inventory
Account Titles Debit Credit
a. Cash $9,000
b. Cost of goods sold $4,500
Cost of Goods Sold
Account Titles Debit Credit
b. Inventory $4,500
Accounts Receivable
Account Titles Debit Credit
b. Sales revenue $7,500
f. Cash $7,500
Sales Revenue
Account Titles Debit Credit
b. Accounts receivable $7,500
Salaries Expense
Account Titles Debit Credit
d. Cash $4,000
Rent Expense
Account Titles Debit Credit
e. Cash $7,000
Explanation:
a) Data and Analysis:
a. Inventory $9,000 Cash $9,000
b. Cost of goods sold $4,500 Inventory $4,500
b. Accounts receivable $7,500 Sales revenue $7,500
c. No effect.
d. Salaries Expense $4,000 Cash $4,000
e. Rent Expense $7,000 Cash $7,000
f. Cash $7,500 Accounts receivable $7,500
Countries like China and other developed economies are in the Neo classical zone. What is the best option for these countries to sustain their economies?
a.
Decrease aggregate demand
b.
Increase aggregate supply
c.
Move back to Keynesian Zone
d.
Move back to intermediate zone
Answer:
c. Move back to Keynesian Zone
Explanation:
The Keynesian zone is a model that states the stable level of GDP is far from potential GDP and that economy is in a period of recession. Unemployment is high and the demands shift from the right to left of the curve. It can be determined by the level of output and employment. The Neoclassical zone will occur when the right side of the curve is fairly vertical, a rise in demand will affect the process but will indirectly impact the output.A firm with two factories one in Michigan and one in Texas has decided that it should produce a total of 500 units of output in order to maximize profit. The firm is currently producing 200 units in the Michigan factory and 300 units in the Texas factory. At this allocation between plans the last units of output produced in Michigan added $5 to total cost while the last units of output products in Texas added $3 to total the firm
a. is maximizing profit should keep producing 200 units in Michigan and 300 units in Texas
b. should produce 250 units in each factory
c. should produce more in the Michigan factory and less in the Texas factory
d. should produce more in the Texas factory and less in the Michigan factory
Answer: d. should produce more in the Texas factory and less in the Michigan factory
Explanation:
A company stands to benefit more if it produces at less cost because then it can produce more goods or rather make more profit.
This company is is spending $3 to make an additional unit in Texas than in Michigan where it is spending $5.
It is spending less in Texas and should therefore shift more production to Texas so that it can spend even less when producing and therefore become more profitable.
The normal-form game box below outlines a generic game for two players to illustrate basic principles. Each player has two strategies (top and bottom for player 1 and left and right for player 2). The letters in the boxes represent the payoffs based on the combination of strategies chosen, so if the choices are (bottom left), player 1 receives a payoff of eand player 2 receives a payoff off.
Player 2
Game Matrix Left Right
Player 1 Top a,b c,d
Bottom e, f g h
If (top, left) is a dominant strategy equilibrium, which of the following must be true?
a) A hf.
b) g> C.
c) b>d.
d) c>g.
e) aze.
Which of the following statements is true?
A. No Nash equilibrium is also a dominant strategy equilibrium.
B. No dominant strategy equilibrium is also a Nash equilibrium.
C. Every dominant strategy equilibrium is also a Nash equilibrium.
D. Every Nash equilibrium is also a dominant strategy equilibrium.
Answer:
1. c) b>d
d) c>g
2. No dominant strategy equilibrium is also a Nash equilibrium.
Explanation:
Payoff matrix are used in business as it represent the possible outcomes of the decisions made. In the given scenario player 1 and player 2 have different outcomes based on the game matrix. The player 1 will get best possible payoff when he falls in Top Left matrix. This is dominant strategy which must be Nash equilibrium.
shows the following amounts at the end of the year: Total sales revenue = $540,000; sales discounts =
$13,000; sales returns = $33,000; sales allowances = $20,000.
Compute net revenues.
Answer: $474,000
Explanation:
Net revenue = Sales revenue - Sales discounts - Sales returns - Sales allowance
= 540,000 - 13,000 - 33,000 - 20,000
= $474,000
Sales returns reduces the sales figure because the goods were returned and therefore not paid for.
Sales discounts are a reduction as well because they reduce the amount paid by buyers.
Sales allowances also reduce the value of sales.
Greene, Inc. uses the LIFO inventory method for external reporting and for income tax purposes but maintains its internal records using FIFO. The following disclosure note was included in a recent annual report:
Inventories ($ in millions):
2021 2020
Total inventories $800 $650
LIFO reserve (86) (65)
The company's income statement reported cost of goods sold of $3,750 million for the fiscal year ended December 31, 2021.
Fill in the blanks below to provide the amount of 2021 ending inventory, cost of goods sold, and inventory turnover if Greene had used FIFO to value its inventories.
Required:
1. Spando adjusts the LIFO reserve at the end of its fiscal year. Prepare the December 31, 2021, adjusting entry to record the cost of goods sold adjustment.
2. If Spando had used FIFO to value its inventories, what would cost of goods sold have been for the 2021 fiscal year?
Answer:
A. Dr Cost of goods sold$21
Dr LIFO reserve $21
B. $3,729
Explanation:
1. Preparation of the December 31, 2021, adjusting entry to record the cost of goods sold adjustment.
December 31, 2021
Dr Cost of goods sold$21
Dr LIFO reserve $21
($86- $65)
2. Calculation to determine what would cost of goods sold have been for the 2021 fiscal year
Cost of goods sold (Income statement)$3,750 million
Less change in LIFO $21
2021 cost of goods $3,729
($3,750-$21)
Therefore what would cost of goods sold have been for the 2021 fiscal year is $3,729
Early in 2021, the Excalibur Company began developing a new software package to be marketed. The project was completed in December 2021 at a cost of $54 million. Of this amount, $36 million was spent before technological feasibility was established. Excalibur expects a useful life of five years for the new product with total revenues of $90 million. During 2022, revenue of $27 million was recognized.
Required:
1. Prepare a journal entry to record the 2021 development costs.
2. Calculate the required amortization for 2022.
3. Determine the amount to report for the computer software costs in the December 31, 2022, balance sheet.
Answer:
a.
Account Title Debit Credit
Research and Development Expense $36,000,000
Software Development Costs $18,000,000
Cash $54,000,000
b. The higher of the Straight-line and Percentage Revenue should be used:
Straight Line method:
= Software Development Costs / useful life
=18,000,000/5
= $3,600,000
Percentage Revenue method:
= Current revenue / Total revenue * Software Development Costs
= 27,000,000/90,000,000 * 18,000,000
= $5,400,000
Amortization = $5,400,000
c. $12,600,000
= Software development cost - Amortization for 2022
= 18,000,000 - 5,400,000
= $12,600,000
On April 1, 2020, Novak Company assigns $505,300 of its accounts receivable to the Third National Bank as collateral for a $327,200 loan due July 1, 2020. The assignment agreement calls for Novak to continue to collect the receivables. Third National Bank assesses a finance charge of 4% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type).
Required:
a. Prepare the April 1, 2020, journal entry for Rasheed Company.
b. Prepare the journal entry for Rasheed’s collection of $364,000 of the accounts receivable during the period from April 1, 2014, through June 30, 2020.
c. On July 1, 2014, Rasheed paid Third National all that was due from the loan it secured on April 1, 2020. Prepare the journal entry to record this payment
Answer:
A. Dr Cash 306,988
Dr Finance Charge 20,212
Cr Notes Payable $327,200
B. Dr Cash $364,000
Cr Accounts Receivable $364,000
C. Dr Notes Payable $327,200
Cr Interest Expense $8,180
Cr Cash $319,020
Explanation:
A) Preparation of the April 1, 2020, journal entry for Prince Company.
Dr Cash 306,988
(327200-20212)
Dr Finance Charge 20,212
($505,300 x 4% = 20212)
Cr Notes Payable $327,200
B. Preparation of the journal entry for Rasheed’s collection
Dr Cash $364,000
Cr Accounts Receivable $364,000
C. Preparation of the journal entry to record this payment
Dr Notes Payable $327,200
Cr Interest Expense $8,180
(10% x $327,200 x 3/12 = 8180)
Cr Cash $319,020
($327,200-$8,180)
similarity between plant industry and firms
Answer:
A Plant – Plant refers to an institution that, in general. ... Firms generally operate one or more than one plant. An Industry – Industry refers to a group of firms that are involved in production of same or similar kind of goods and services.
what are the two components of a universal policy?
Answer:
Hey mate.....
Explanation:
This is ur answer.....
Universal policy premiums include two components: the cost of insurance amount and the savings component amount, also known as the cash value. The cost of insurance (COI) is the minimum amount you must pay to keep your policy active. This amount varies based on your age, health, and insured risk amount.
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The cost of insurance amount and the savings component amount you must pay to keep your policy active. This amount varies based on your age,health, and insured risk amount.
At year-end (December 31), Chan Company estimates its bad debts as 0.90% of its annual credit sales of $743,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $372 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions.
Answer:
Chan Company
Journal Entries:
December 31:
Debit Bad Debts Expense $6,687
Credit Allowance for Doubtful Accounts $6,687
To record the bad debts expense.
February 1:
Debit Allowance for doubtful accounts $372
Credit Accounts receivable (P. Park) $372
To write-off bad debt.
June 5:
Debit Accounts receivable (P. Park) $372
Credit Allowance for doubtful accounts $372
To reverse previously written-off debt.
Debit Cash $372
Credit Accounts receivable (P. Park) $372
To record the receipt on account.
Explanation:
a) Data and Calculations:
Annual credit sales = $743,000
Estimated bad debts = 0.90% of credit sales
Estimated bad debts = $6,687 ($743,000 * 0.90%)
December 31:
Bad Debts Expense $6,687
Allowance for Doubtful Accounts $6,687
February 1:
Allowance for doubtful accounts $372
Accounts receivable (P. Park) $372
June 5:
Accounts receivable (P. Park) $372
Allowance for doubtful accounts $372
Cash $372
Accounts receivable (P. Park) $372
Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 34,500 customers, but actually served 29,500 customers. Revenue is $3.89 per customer served. Wages and salaries are $35,000 per month plus $1.29 per customer served. Supplies are $0.59 per customer served. Insurance is $9,200 per month. Miscellaneous expenses are $7,300 per month plus $0.29 per customer served.
Required:Prepare a report showing the company's activity variances for September. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
Answer:
Varcoe Corporation
Report showing activity variances for September:
Budgeted Actual Variance
Number of customers served 34,500 29,500 5,000 U
Revenue per customer $3.89 $134,205 $114,755 $19,450 U
Expenses:
Wages and salaries ($35,000
plus $1.29 per customer) 79,505 73,055 $6,450 F
Supplies expense ($0.59 per
customer served) 20,355 17,405 2,950 F
Insurance per month 9,200 9,200 0 N
Miscellaneous expense ($7,300
plus $0.29 per customer) 17,305 15,855 1,450 F
Total expenses $126,365 $115,515 $10,850 F
Net income $7,840 ($760) $8,600 U
Explanation:
a) Data and Calculations:
Budgeted Actual
Number of customers served 34,500 29,500
Revenue per customer $3.89 per customer served
Expenses:
Wages and salaries ($35,000 plus $1.29 per customer)
Supplies expense ($0.59 per customer served)
Insurance per month = $9,200
Miscellaneous expense ($7,300 plus $0.29 per customer)
Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production of these trusses for the month of February:
Work-in-process inventory, February 1 4,000 trusses
Direct materials: 100% complete $10,480
Conversion: 20% complete $15,258
Units started during February 18,000 trusses
Units completed during February and transferred out 17,000 trusses
Work-in-process inventory, February 29
Direct materials: 100% complete
Conversion: 40% complete
Costs incurred during February
Direct materials $59,040
Conversion $92,092
Required:
Using the FIFO method, calculate the following:
1. Costs per equivalent unit.
2. Cost of goods completed and transferred out.
3. Cost remaining in the ending work-in-process inventory.
Answer:
Part 1
M = $3.28
C = $5.06
Part 2
$141,780
Part 3
$26,520
Explanation:
1. Costs per equivalent unit.
Step 1 ; Equivalent units
Materials = 4,000 x 0 % + 13,000 x 100 % + 5,000 x 100 % = 18,000 units
Conversion Costs = 4,000 x 80 % + 13,000 x 100 % + 5,000 x 40 % = 18,200 units
Step 2 : Cost per Equivalent units
Materials = $59,040 / 18,000 units = $3.28
Conversion Costs = $92,092 / 18,200 units = $5.06
Total = $3.28 + $5.06 = $8.34
2. Cost of goods completed and transferred out.
Cost of goods completed and transferred out = 17,000 trusses x $8.34 = $141,780
3. Cost remaining in the ending work-in-process inventory.
Ending work-in-process inventory = $3.28 x 5,000 + $5.06 x 2,000 = $26,520
Cost of manufacturing is the total cost incurred by the manufacturing unit or the entire department for the production of goods. It is classified into three main categories: direct material cost, direct labor cost, and manufacturing overhead.
Using the FIFO method, the answers are:
1. Cost per equivalent unit:
For the material is $3.28
For the conversion is $5.06
2. Cost of goods completed and transferred out is $141,780
3. Cost remaining in the ending work-in-process inventory is $26,520
Computations:
1. Cost per equivalent unit:
Material:
[tex]\begin{aligned}\text{Cost per equivalent unit}&=\frac{\text{Total Cost}}{\text{Equivalent Units}}\\&=\frac{\$59,040}{18,000\;\text{units}}\\&=\$3.28\end{aligned}[/tex]
Conversion:
[tex]\begin{aligned}\text{Cost per equivalent unit}&=\frac{\text{Total Cost}}{\text{Equivalent Units}}\\&=\frac{\$92,092}{18,200\;\text{units}}\\&=\$5.06\end{aligned}[/tex]
[tex]\begin{aligned}\text{Total cost per equivalent unit}&=\text{Cost per unit for material}+\text{Cost per unit for conversion}\\&=\$3.28+\$5.06\\&=\$8.34\end{aligned}[/tex]
2. Cost of goods completed and transferred out:
[tex]\begin{aligned}\text{Cost of goods completed}&=\text{Units Completed}\times\text{Total Cost of equivalent units}\\&=17,000\;\text{trusses}\times\$8.34\\&=\$141,780\end{aligned}[/tex]
3. Cost of remaining ending work in process inventory:
[tex]\begin{aligned}\text{Ending Work in Process Inventory}&=[\left( \text{Costs per equivalent unit for material}\times\text{Units}\right )\\&+\left( \text{Costs per equivalent unit for conversion}\times\text{Units}\right )]\\&=\left(\$3.28\times5,000\;\text{units}\right )+\left(\$5.06\times2,000\;\text{units} \right ) \\&=\$26,520\end{aligned}[/tex]
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Bank Reconciliation and Related Journal entries.
The book balance in the checking account of Lyle's Salon as of November 30 is $3,292.08. The bank statement shows an ending balance of $2,118.00. By examining last month's bank reconciliation, comparing the deposits and checks written per books and per bank in November, and noting the service charges and other debit and credit memos shown on the bank statement, the following were found:
A) An ATM withdrawal of $150 on November 18 by Lyle for personal use was not recorded on the books.
B) A bank debit memo issued for an NSF check from a customer of $19.50.
C) A bank credit memo issued for interest of $19 earned during the month.
D) On November 30, a deposit of $1,177 was made, which is not shown on the bank statement.
E) A bank debit memo issued for $17.50 for bank service charges.
F) Checks No. 549, 561, and 562 for the amounts of $185, $21, and $9.40, respectively, were written during November but have not yet been received by the bank.
G) The reconciliation from the previous month showed outstanding checks totaling $271.95. One of those checks, No. 471 for $18.65, has not yet been received by the bank.
H) Check No. 523 written to a creditor in the amount of $372.90 was recorded in the books as $327.90.
Required:
1. Prepare a bank reconciliation as of November 30.
2. Prepare the required journals entries.
Answer:
Cash (Dr.) $19
Interest Revenue (Cr.) $19
Cash (Dr.) $150
Bank (Cr.) $150
Bank Charges (Dr.) $17.50
Cash (Cr.) $17.50
Explanation:
Bank Reconciliation Statement
Balance as per Bank statement $2,118.00
Less: ATM withdrawals $150
Less: Bank debit memo $19.50
Add: Interest Earned $19
Add: Deposits $1,177
Less: Bank service Charges $17.50
Less: Checks no.549 not presented $185
Less: Checks no.561 not presented $21
Less: Checks no.562 not presented $9.40
Less: Outstanding Checks $271.95
Add: Error in recording $45
Adjusted balance for the reconciliation $2,684.65
Departmental Overhead Rates Lansing, Inc., provided the following data for its two producing departments:
Molding Polishing Total
Estimated overhead $400,000 $80,000 $480,000
Direct labor hours (expected and actual):
Form A 1,000 5,000 6,000
Form B 4,000 15,000 19,000
Total 5,000 20,000 25,000
Machine hours:
Form A 3,500 3,000 6,500
Form B 1,500 2,000 3,500
Total 5,000 5,000 10,000
Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 25,000 units of Form A produced and sold and 50,000 of Form B.
Required:
a. Calculate the overhead rates for each department.
b. Using departmental rates, assign overhead to the two products and calculate the overhead cost per unit.
Answer and Explanation:
The computation is shown below:
1. Overhead rates
For Molding Deptt
= Total Estimated overhead ÷ Total Machine hours
= $400,000 ÷ 5,000
= $80 per machine hour
For Polishing Deptt
= Total Estimated overhead ÷ Total Labor hours
= $80,000 ÷ 20,000
= $4 per machine hour
2. Overheads assigned to Form A is
= (80 × 3500) + (4 × 5000)
= $300,000
Overheads assigned to Form B is
= (80 × 1500) + (4 × 15000)
= $180,000
Now
Overhead cost per unit
Form A = $300,000 ÷ 30,000 = $10 per unit
Form B = $180,000 ÷ 50,000 = $3.6 per unit
Mel is thinking of going on a cruise. Mel values a cruise in nice weather at $2,000 and values a cruise in bad weather at $50. The probability of nice weather is 60% and the probability of bad weather is 40%. Trip insurance is sometimes available. If purchased, it allows travelers to delay the cruise until the weather is nice. If Mel is risk-neutral, then in the absence of trip insurance, the most she will be willing to pay for the cruise is _______. Select one: a. $1,200 b. $1,250 c. $1,220 d. $1,000
Answer:
Mel
If Mel is risk-neutral, then in the absence of trip insurance, the most she will be willing to pay for the cruise is _______.
c. $1,220
Explanation:
a) Data and Calculations:
Mel's value of a cruise in nice weather = $2,000
Mel's value of a cruise in bad weather = $50
Probability of nice weather = 60%
Probability of bad weather = 40%
Expected value:
Weather Outcome Probability Expected Value
Nice weather $2,000 60% $1,200
Bad weather $50 40% $20
Total expected value of a cruise $1,220
Stock Options
On December 30, 2014, Yang Corporation granted compensatory stock options for 5,000 shares of its $1 par value common stock to certain of its key employees. The options may be exercised after 2 years of employment. Market price of the common stock on that date was $30 per share and the option price was $30 per share. Using a fair value option pricing model, total compensation expense is determined to be $80,000. The options are exercisable beginning January 1, 2017, providing those key employees are still in the employ of the company at the time the options are exercised. The options expire on January 1, 2018.
Instructions:
Prepare the following selected journal entries for the company on the answer sheet (if no entry required, state "no entry").
(1) December 30, 2014.
(2) December 31, 2015.
(3) January 1, 2017, assuming 90% of the options were exercised at that date.
(4) January 1, 2018, for the 10% of the options that expired.
Answer:
Date Account Titles Debit Credit
Dec 30, 14 No entry on Grant Date
Dec 30, 15 Compensation expense $40000
Paid in capital- stock options $40000
Dec 30, 16 Compensation expenses $40000
Paid in capital- stock options $40000
Jan 1, 17 Cash (30*5000*90%) $135000
Paid in capital- stock options $72000
(80000*90%)
Common stock (5000*90%*1) $4500
Paid in capital $202500
Jan 1, 18 Paid in capital- stock options $8000
Paid in capital- expired stock options $8000
On October 1, 2020 Waterway Industries issued 6%, 10-year bonds with a face value of $8150000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. Bond interest expense reported on the December 31, 2020 income statement of Waterway Industries would be
Answer:
the bond interest expense is $114,100
Explanation:
The computation of the bond interest expense is shown below:
Cash interest payable for 3 months 122,250 ($8,150,000 × 6% × 3 ÷ 12)
Less; AMortized premium for 3 months $8,150 ($8,150,000 × 4% ÷ 10 × 3 ÷ 12)
BOnd interest expense $114,100
Hence, the bond interest expense is $114,100
Accounting for par, stated, and no-par stock issuances LO P1
Rodriguez Corporation issues 16,000 shares of its common stock for $176,900 cash on February 20. Prepare journal entries to record this event under each of the following separate situations.
The stock has a $8 par value.
The stock has neither par nor stated value.
The stock has a $4 stated value.
1. Record the issue of 16,000 shares of no par, no stated value common $94,900 cash.
2. Record the issue of 16,000 shares of $2 stated value common stock for $94,900 cash.
Answer:
Rodriguez Corporation
Journal Entries:
a. Debit Cash $176,900
Credit Common Stock $128,000
Credit Additional Paid-in Capital $48,900
To record the issue of 16,000 shares at $8 par value.
b. Debit Cash $176,900
Credit Common Stock $176,900
To record the issue of 16,000 shares at no par or stated value.
c. Debit Cash $176,900
Credit Common Stock $64,000
Credit Additional Paid-in Capital $112,900
To record the issue of 16,000 shares at $4 state value.
1. Issue of 16,000 shares of no par, no stated value common $94,900 cash.
Journal Entry:
Debit Cash $94,900
Credit Common Stock $94,900
To record the issue of 16,000 shares at no par or stated value.
2. Record the issue of 16,000 shares of $2 stated value common stock for $94,900 cash.
Journal Entry:
Debit Cash $94,900
Credit Common Stock $32,000
Credit Additional Paid-in Capital $62,900
To record the issue of 16,000 shares of $2 stated value for cash.
Explanation:
a) Data and Calculations:
Number of common stock shares issued = 16,000
Cash collected from the issue = $176,900
Date of issue = February 20.
b) When shares are issued at no par or stated value, the corresponding credit for the Common Stock account equals the cash realized. When the par value is less than the issued price, the corresponding credit above the par value is credited to the Additional Paid-in Capital account.
Synovec Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 15 percent over the following year, and then 6 percent per year, indefinitely. The required return on this stock is 12 percent and the stock currently sells for $94 per share. What is the projected dividend for the coming year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
$26.86
Explanation:
Calculation to determine the projected dividend for the coming year
First step is to calculate the Dividend(D0)=
D0 = $94 * 0.12
Dividend(D0)= $11.28
Second step is to calculate the Expected Dividend growth rate for 3 years (D3) using this formula
Expected Dividend growth rate for 3 years (D3) =D0 (1+g)
Let plug in the formula
D3=$11.28* (1+0.25)^3
D3=$22.03125
Third step is to calculate Dividend in 4th year(D4
Dividend in 4th year(D4)=$22.03125 *1.15
D4 =$25.3359
Now let calculate the Dividend in 5th year(D5
Dividend in 5th year(D5)=$25.3359 * 1.06
Dividend in 5th year(D5)=$26.86
Therefore the Projected Dividend for the coming year will be $26.86
Tardis Company reports the following costs and expenses for the month of March: Advertising cost $1,200 Rent on manufacturing equipment 3,000 Salary of factory manager 4,300 Depreciation on office equipment 600 Direct materials used 42,000 Salary of sales department manager 4,500 Indirect materials 800 Wages for assembly line workers 28,000 Manufacturing overhead for the month of March is:
Answer:
See below
Explanation:
With regards to the above,
Manufacturing overhead is computed as;
= Depreciation on office equipment + Indirect materials + Salary of factory manager + wages for assembly line workers
= $600 + $800 + $4,300 + $28,000
= $32,800
Therefore, manufacturing overhead for the month of March is $32,800
Manson Industries incurs unit costs of $6 ($4 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 15,000 of the assembly part at $5 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part.
Answer:
The decision should be to make the part
Explanation:
Variable cost of manufacturing = 15000x4 = 60000
Fixed cost of manufacturing = 15000 x 2 = 30000
Purchase cost = 15000x5 = 75000
Total annual cost of making = 60000 + 30000 = $90000
Total annual cost of buying is 30000 + 75000 = $105000
90000 - 105,000 = -15000
This shows that manson's cost savings would decrease by -15000
So instead of buying, it is better to make.