Answer:
1. Dr Supplies $480
Cr Accounts Payable $480
2. Dr Accounts Receivable $1,150
Cr Service revenue $1,150
3. Dr Cash $900
Cr Unearned Revenue $900
4. Dr Cash $500
Cr Accounts Receivable $500
5. Dr Accounts Payable $350
Cr Cash $350
Explanation:
Preparation of journal entries
1. Dr Supplies $480
Cr Accounts Payable $480
2. Dr Accounts Receivable $1,150
Cr Service revenue $1,150
3. Dr Cash $900
Cr Unearned Revenue $900
4. Dr Cash $500
Cr Accounts Receivable $500
5. Dr Accounts Payable $350
Cr Cash $350
A sharp downturn in the U.S. housing market reduced the income of many who worked in the home construction industry. A Wall Street Journal news article reported that Walmart’s wire-transfer business was likely to suffer because many construction workers are Hispanics who regularly send part of their wages back to relatives in their home countries via Walmart. With this information, use one of the principles of economy-wide interaction to trace a chain of links that explains how reduced spending for U.S. home purchases is likely to affect the performance of the Mexican economy.
Answer:
Answer is explained in the explanation section.
Explanation:
If the wages of the Hispanics construction worker in America are less then, they will not have near as much money to send home to their relatives back in Mexico.
And if their families do not have as much as it use to be then they will not be able to buy near as much as they used to.
It means that if the construction workers don't get as much money as they used to then, neither they nor their families will be able to spend as much as they use to which will obviously hurt each of their economies.
Ravine Corporation purchased 30 percent ownership of Valley Industries for $94,800 on January 1, 20X6, when Valley had capital stock of $260,000 and retained earnings of $56,000. During the period of January 1, 20X6, through December 31, 20X9, the market value of Ravine's investment in Valley's stock increased by $11,000 each year. The following data were reported by the companies for the years 20X6 through 20X9:
Dividends Declared
Year Operating Income, Ravine Corporation Net Income, Valley Industries Ravine Valley
20X6 $ 140,000 $ 30,000 $ 70,000 $ 20,000
20X7 80,000 50,000 70,000 40,000
20X8 220,000 10,000 90,000 40,000
20X9 160,000 40,000 100,000 20,000
Required:
a. What net income would Ravine Corporation have reported for each of the years, assuming Ravine accounts for the intercorporate investment using the cost method and the equity method?
b-1. Give all appropriate journal entries for 20X8 that Ravine made under the cost method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
A. Ravine Corporation net income using the cost method
20X6 Net income=$146,000
20X7 Net income=$92,000
20X8 Net income =$229,000
20X9 Net income=$166,000
Ravine Corporation net income using the equity method
20X6 Net income=$149,000
20X7 Net income=$95,000
20X8 Net income=$223,000
20X9 Net income=$172,000
b-1 Dr Cash $12,000
Cr Dividend income $9,000
Cr Investment in S $3,000
b-2 Dr Cash $12,000
Cr Investment in S $12,000
Dr Investment in Valley stock $3,000
Cr Income from S $3,000
Explanation:
a. Calculation for what net income would Ravine Corporation have reported for each of the years
Ravine Corporation net income using the cost method
20X6 Net income= $140,000 + 0.30($20,000)
20X6 Net income=$146,000
20X7 Net income= $80,000 + 0.30($40,000)
20X7 Net income=$92,000
20X8 Net income= $220,000 + 0.30($30,000)
20X8 Net income =$229,000
20X9 Net income= $160,000 + 0.30($20,000)
20X9 Net income=$166,000
Calculation 20X8 Dividend declared
Dividend declared=($30,000 + $50,000 – $20,000 – $40,000 )+ $10,000
Dividend declared=$20,000+$10,000
Dividend declared=$30,000
Ravine Corporation net income using the equity method
20X6 Net income= $140,000 + 0.30($30,000)
20X6 Net income=$149,000
20X7 Net income= $ 80,000 + 0.30($50,000)
20X7 Net income=$95,000
20X8 Net income=$220,000 + 0.30($10,000)
20X8 Net income=$223,000
20X9 Net income=$160,000 + 0.30($40,000)
20X9 Net income=$172,000
b-1 Preparation of the journal entries for 20X8 that Ravine made under the cost method
Dr Cash $12,000
(0.30*$40,000)
Cr Dividend income $9,000
(0.30*$30,000)
Cr Investment in S $3,000
($12,000-$9,000)
b-2 Preparation of the journal entries for 20X8 that Ravine made under the Equity method
Dr Cash $12,000
Cr Investment in S $12,000
(0.30*$40,000)
Dr Investment in Valley stock $3,000
Cr Income from S $3,000
($12,000-$9,000)
Select all the correct answers.
Which three statements are true as they relate to supply and demand?
As supply rises, prices generally decrease.
As demand decreases, costs generally increase.
OOOOO
As supply decreases, prices increase.
The average rate of change describes how much a quantity changes as price increases.
As demand rises, the price of the product decreases.
Answer:
As supply rises, prices generally decrease.
As supply decreases, prices increase.
The average rate of change describes how much a quantity changes as price increases.
Explanation:
I beleve these are your 3 answers
Planning to finance higher education helps people prepare for their financial future because it teaches them about
loans and interest.
savings accounts.
filing taxes
short-term goals.
Answer:
A. loans and interest.Explanation:
'twas the right answer on edge
Andrew Clark Company discovered the following errors made in January 2017.
1. A payment of Salaries and Wages Expense of $600 was debited to Equipment and credited to Cash, both for $600.
2. A collection of $4,500 from a client on the account was debited to Cash $450 and credited to Service Revenue $450.
3. The purchase of equipment on account for $520 was debited to Equipment $250 and credited to Accounts Payable $250.
Correct the errors by reversing the incorrect entry and preparing the correct entry.
Solution :
Correcting the errors by reversing the incorrect entry and then preparing the correct entry :
Sl. No. Description Debit Credit
1. Cash $600
Equipment $600
Salary and wages $600
Cash $600
2. Service revenue $450
Cash $450
Cash $4500
Account receivable $4500
3. Accounts payable $250
Equipment $250
Equipment $520
Accounts payable $520
Differential Analysis for a Lease or Sell Decision Granite Construction Company is considering selling excess machinery with a book value of $281,300 (original cost of $401,500 less accumulated depreciation of $120,200) for $275,000, less a 5% brokerage commission. Alternatively, the machinery can be leased for a total of $283,300 for five years, after which it is expected to have no residual value. During the period of the lease, Granite Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $26,200. a. Prepare a differential analysis, dated November 7 to determine whether Granite should lease (Alternative 1) or sell (Alternative 2) the machinery. Differential Analysis Lease Machinery (Alt. 1) or Sell Machinery (Alt. 2) November 7 Lease Machinery (Alternative 1) Sell Machinery (Alternative 2) Differential Effect on Income (Alternative 2) Revenues $fill in the blank 12173b05f07a00b_1 283,300 $fill in the blank 12173b05f07a00b_2 275,000 $fill in the blank 12173b05f07a00b_3 Costs fill in the blank 12173b05f07a00b_4 26,200 fill in the blank 12173b05f07a00b_5 fill in the blank 12173b05f07a00b_6 Income (Loss) $fill in the blank 12173b05f07a00b_7 $fill in the blank 12173b05f07a00b_8 $fill in the blank 12173b05f07a00b_9
Solution :
Lease machinery Sell Machinery Differential effect
on income
Revenues $ 283,300 $275,000 $ 8,300
Cost $26,200 $ 13,750 $ 12,450
Income $257,100 $ 261,250 $ 4,150 (loss) (loss)
Since to sell the machinery would be profitable for the company, hence it is advisable for the company to sell the machinery.
Person A Good X Good Y 200 0 150 100 100 50 150 0 200
Person B Good X Good Y 0 120 40 90 80 60 120 30 160 0
Person A can produce the following combinations of X and Y: 200X and 0Y, 150X and 50Y, 100X and 100Y, 150X and 50Y, or 200X and 0Y. Person B can produce the following combinations of X and Y: 0X and 120Y, 40X and 90Y, 80X and 60Y, 120X and 30Y, or 160X and 0Y. Person A has the comparative advantage in the production of _ and person B has the comparative advantage in the production of __.
a. XY
b. YX
c. neither good Xnor good Y; neither good Xnor good Y
d. both good X and good Y; neither good X nor good Y
e. neither good X nor good Y; both good X and good Y
Answer:
b. YX
Explanation:
In the case of A,
To generate 50 X ,
give up = 50 Y
Therefore opportunity cost of 1 X = 1Y
In the case of B
To generate 40 X,
give up 30 Y
Therefore opportunity cost of 1 X = 3 ÷4 Y
Therefore B has a Comparative advantage in X
And, A has Comparative Advantage in Y
The area of law that protects Coca-Cola® (with is accompanying ®) is
trademark.
patent.
copyright.
contract.
Answer:
Trademark
Explanation:
The “R” inside the circle stands for “registered.” The “R” and circle together form the federal trademark registration symbol. In commerce, the symbol shows that your business officially owns its trademark by U.S. Patent and Trade Office (pto.gov) standards.
Note:
Please mark as Brainliest! <3
Mutual funds _____. a. are investment companies that use funds provided by savers to buy various types of financial assets, including stocks and bonds, in the financial markets b. cater to savers, especially individuals who have relatively small savings or need long-term loans to purchase houses c. are groups of investment banking firms formed to spread the risk associated with the purchase and distribution of a new issue of securities d. are depository institutions that are owned by its depositors, who are often members of a common organization or association e. are organizations that distribute new issues of securities for corporations
Answer:
a)
Explanation:
Mutual funds are investment companies called AMC( asset management companies ) that gather funds from public by issuing units. These funds are then invested in financial securities and financial instruments likes bonds and shares. Mutual funds are managed by financial experts and are less risky for common public than direct investment in stock market.
Dakota Company experienced the following events during Year 2. Acquired $30,000 cash from the issue of common stock. Paid $12,000 cash to purchase land. Borrowed $10,000 cash. Provided services for $20,000 cash. Paid $1,000 cash for utilities expense. Paid $15,000 cash for other operating expenses. Paid a $2,000 cash dividend to the stockholders. Determined that the market value of the land purchased in Event 2 is now $12,700.
Required:
a. The January 1, 2018, general ledger account balances are shown in the following accounting equation. Record the eight events in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. The first event is shown as an example.
b-1 Prepare an income statement for the 2018 accounting period.
b-2 Prepare a statement of changes in equity for the 2018 accounting period.
b-3 Prepare a year-end balance sheet for the 2018 accounting period.
b-4 Prepare a statement of cash flows for the 2018 accounting period.
c. Determine the percentage of assets that were provided by retained earnings. Can you determine the cash in retained earnings?
Question Completion:
January 1 general ledger balances: Cash = $2,000, Land $12,000, Notes Payable $0, Common Stock $6,000, and Retained $8,000.
Answer:
Dakota Company
Event Assets = Liabilities + Stockholders Equity Account Titles
Cash Land = Accts Payable Common Retained for Retained
Stock Earnings Earnings
Balance 2,000 12,000 = 0 + 6,000 8,000
1. 30,000 = + 30,000
2. -10,000 +10,000
3. 10,000 = 10,000
4. 20,000 = 20,000 Service Revenue
5. -1,000 = -1,000 Utilities Expense
6. -15,000 = -15,000 Operating Exp.
7. -2,000 = -2,000
8. 700 = +700
Bal. $34,000 $22,700 = $10,000 + $36,700 $10,000
b-1. Income Statement for the year ended December 2018:
Service Revenue $20,000
Operating expenses 15,000
Utilities expense 1,000
Total expenses $16,000
Net Income $4,000
b-2. Statement of changes in equity for the year ended December 31, 2018:
Common stock, January 1 $6,000
Additional common stock 30,000
Land Revaluation 700
Common stock, Dec. 31 $36,700
Retained earnings,
January 1 8,000
Net Income 4,000
Dividends -2,000
Retained earnings $10,000
Total equity $46,700
b-3. Balance Sheet as of December 31, 2018:
Assets:
Cash $34,000
Land 22,700
Total assets $56,700
Liabilities and Equity:
Liabilities $10,000
Common stock 36,700
Retained earnings 10,000
Total liabilities and equity $56,700
c. Percentage of assets provided by retained earnings
= $10,000/$56,700 * 100 = 17.64%
Yes. The cash in retained earnings = $34,000 * 17.64% = $5,998.
Explanation:
a) Data and Calculations:
Analysis of Transactions during Year 2:
Cash $30,000 Common Stock $30,000
Land $12,000 Cash $12,000
Cash $10,000 Loan $10,000
Cash $20,000 Service Revenue $20,000
Utilities Expense $1,000 Cash $1,000
Operating Expenses $15,000 Cash $15,000
Dividends $2,000 Cash $2,000
Land $700 Revaluation $700
Karen and Anika, the owners of a new personal assistant firm called Assist You 2, are interested in offering their services in a community filled with other start-up firms and local shops. Now that they have completed the segmentation and targeting processes, to ensure that they are best positioning their service within this community, they must next:________
Answer: understand the position of their competitors.
Explanation:
For any company to strive in a particular environment, it is vital for an organization to always look out for its competitors and look for ways to have a competitive edge over them. This is vital in generation of revenue, maximization of profit and achieving organizational goals and objectives.
Therefore, with regards to the question, best positioning their service within this community, they must next understand the position of their competitors.
Hochberg Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 50,000 machine-hours Order processing 625 orders Other Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries $ 461,000 Depreciation 123,000 Occupancy 207,000 Total $ 791,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabricating Order Processing Other Total Wages and salaries 15% 65% 20% 100% Depreciation 15% 40% 45% 100% Occupancy 20% 75% 5% 100% The activity rate for the Fabrication activity cost pool is closest to:
Answer:
$2.58 per machine hour
Explanation:
The computation of the fabrication activity cost pool activity rate is
= ($461,000 × 15%) + ($123,000 × 15%) + ($207,000 × 20%) ÷ 50,000 machine hours
= ($69,150 + $18,450 + $41,400) ÷ 50,000 machine hours
= $2.58 per machine hour
A building has 9 apartments generating annual potential rent of $1,500 each month. Vacancy = 6% and annual expenses are $84,000. Vending machines yield $1,800 per year. What is the NOI?
Explanation:
you answer is $70,080
hope that helps. can post how was figured out.
A consumer faces a tradeoff between labor (L) and leisure (R). She consumes a composite good (C). When the consumer works, she earns an hourly wage of $14.00, and she spends a maximum of 24 hours on labor and leisure, but she chooses to work 10.00 hours. Whatever time she does not spend working, she spends on leisure. She starts with an initial endowment of 21.00 units of the composite good, which she can buy and sell freely at a market price of $12.00.
Required:
What is the consumer's real wage?
Answer:
$11.70
Explanation:
composite goods consumed ( C )
She earns an hourly wage of $14
spends maximum of 24 hours on labor and leisure
works = 10 hours
leisure = 14 hours
initial endownment = 21.00 units
price of composite = $12
Determine the consumer's real wage
Real wage per hour = wage per hour / price of composite
= 14 / 12 = $1.17
Hence Total real earnings = Total wage earned / price of composite
Total wage earned = 14 * 10 = $140
Total real earnings = 140 / 12 = $11.7
Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $14.00 per unit. The unit cost for the business to make the part is $20.00, including fixed costs, and $11.00, excluding fixed costs. If 31,994 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it
Answer:
The answer is "$95982"
Explanation:
Cost of purchase:[tex]\$ 14[/tex]
Make Cost Important: [tex]-\$11[/tex]
(In this case not to be avoided fixed costs)
Cost reduction if completed:[tex]a = \$ 3[/tex]
No single units: [tex]b = \$ 31,994[/tex]
Reduction of total costs: [tex]a \times b = \$ 95,982[/tex]
Prepare the journal entries to record the sale of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation Debit Credit
(1)
(To record sale of jobs)
(2)
(To record cost of jobs)
SHOW LIST OF ACCOUNTSLINK TO TEXT
LINK TO TEXT
LINK TO TEXT
LINK TO TEXT
LINK TO TEXT
What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of?
Finished Goods Inventory $
Job No. 50 Job No. 51 Job No. 52 Jobs 50 and 51 Jobs 51 and 52 Jobs 50 and 52
SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
LINK TO TEXT
LINK TO TEXT
LINK TO TEXT
What is the amount of over- or underapplied overhead?
Manufacturing Overhead $
Overapplied Underapplied
Complete Question:
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2017, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows:
direct materials $ 22,000 ,
direct labor $ 13,200
manufacturing overhead $ 17,600
As of January 1, Job No. 49 had been completed at a cost of $ 99,000 and was part of finished goods inventory. There was a $ 16,500 balance in the Raw Materials Inventory account.
During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $ 134,200 and $ 173,800 , respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $ 99,000 on account.
2. Incurred factory labor costs of $ 77,000 . Of this amount $ 17,600 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $ 18,700 ; indirect labor $ 22,000 ; depreciation expense on equipment $ 13,200 ; and various other manufacturing overhead costs on account $ 17,600 .
4. Assigned direct materials and direct labor to jobs as follows.
Job No. Direct Direct
Materials Labor
50 $ 11,000 $ 5,500
51 42,900 27,500
52 33,000 22,000
Answer:
Lott Company
1. Journal Entries to record the sale of Job 49 and Job 50:
Debit Cost of Goods Sold $175,450
Credit Finished Goods
Job 49 $99,000
Job 50 $76,450
To record the cost of Jobs 49 and 50 sold during the period.
Debit Accounts Receivable:
Job 49 $134,200
Job 50 $173,800
Credit Sales Revenue $308,000
To record the sale of Jobs 49 and 50 during the period.
2. The balance in the Finished Goods Inventory account at the end of the month is:
= $106,150.
This balance consists of Job 51 only.
3. There is no provision of estimated manufacturing overhead. Therefore, there is no overapplied or underapplied overhead in this situation. The manufacturing overhead costs were applied based on the actual costs incurred.
Explanation:
a) Data and Calculations:
Cost of Work-in-Process or Production:
Job No. Direct Direct WIP Overhead
Materials Labor Beginning Costs Closing
50 $ 11,000 $ 5,500 $52,800 $7,150 $76,450
51 42,900 27,500 0 35,750 106,150
52 33,000 22,000 0 28,600 83,600
January 1, Job 50 Cost of WIP:
direct materials $ 22,000
direct labor 13,200
manufacturing overhead 17,600
Beginning WIP of Job 50 $52,800
Manufacturing overhead costs:
indirect materials $ 18,700
indirect labor $ 22,000
depreciation expense
on equipment $ 13,200
other overhead costs $ 17,600
Total overhead costs = $71,500
Allocation of manufacturing overhead costs:
Jobs Direct Labor Overhead Allocation
50 $ 5,500 $7,150 ($5,500 * $1.30)
51 27,500 $35,750 ($27,500 * $1.30)
52 22,000 $28,600 ($22,000 * $1.30)
Total $ 55,000 $71,500
Direct Labor Variances La Barte Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available:
Quantity of direct labor used 5,050 hrs.
Actual rate for direct labor $16.80 per hr.
Bicycles completed in July 1,000 bicycles
Standard direct labor per bicycle 5.4 hrs.
Standard rate for direct labor $16.00 per hr.
a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct Labor Rate Variance $ Unfavorable
Direct Labor Time Variance $ Favorable
Total Direct Labor Cost Variance $ Favorable
b. How much direct labor should be debited to Work in Process?
Answer: See explanation
Explanation:
a. Determine the direct labor rate variance.
This will be:
= (Actual rate per hour - Standard rate per hour) × Actual hour
= ($16.80 - $16.00) × 5050
= 0.80 × 5050
= 4040 unfavorable
Determine the direct labor time variance
This will be:
= 5050 - (1000 × 5.40) × $16
= (5050 - 5400) × 16
= -350 × 16
= -5400 favourable
Total direct labor cost variance
This will be:
= 4040 + -5400
= 1560 favorable
b. How much direct labor should be debited to Work in Process?
This will be:
= Standard hours × Standard rate per hour
= $5400 × 16
= $86400
why the feedback form is so important for the trainer and the training itself?
Answer:
It tells on how he or she can improve his ways of training based on the previous people he or she trained feedbacks.
hmmm.. good question,the feedback means.. like.. what I say is ya it's important words for English I use much these words
Imagine that you own a property that is exactly 2.2 acres large. You want to sell your property, but your realtor tells you that you cannot sell your land by the acre. In order to sell your land you need to determine the area you own in units of square meters. Given that there are 1.6 kilometers in 1 mile and 640 acres in 1 square mile, what is the area of land that you own in
Based on the various conversion factors, the area of the land in square meters is 8,800 m².
You will need to convert the land area in stages from acres to miles squared, to kilometers squared and then to meters squared.
Land area in miles squared= 2.2 acres x ( 1 / 640 acres in one square mile)
= 2.2/640
= 0.0034375 m²
Land in kilometers squared= 0.0034375 x 1.6² kilometers per mile
= 0.0088 kilometers ²
Land in meters squared= 0.0088 x 1,000 m² per kilometer ²
= 8,800 meters ²
In conclusion, the area of the land you own is 8,800 meters²
Find out more on conversion of units at https://brainly.com/question/13654890.
On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $69,600. The equipment had a three-year estimated life with a $4,500 salvage value. Straight-line depreciation was used. At the beginning of Year 3, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $3,500.
Required Compute the depreciation expense for each of the four years, Year 1-Year 4
Depreciation Expense
Year 1
Year 2
Year 3
Year 4
Answer:
Depreciation Expense
Year 1 = $21,700
Year 2 = $21,700
Year 3 = $11,350
Year 4 = $11,350
Explanation:
depreciation expense for years 1 and 2 = ($69,600 - $4,500) / 3 = $21,700
book value at the end of year 2 = $26,200
depreciation expense for years 3 and 4 = ($26,200 - $3,500) / 3 = $11,350
The City of Troy collects its annual property taxes late in its fiscal year. Consequently, each year it must finance part of its operating budget using tax anticipation notes. The notes are repaid upon collection of property taxes. On April 1, the city estimated that it will require $2,500,000 to finance governmental activities for the remainder of the fiscal year. On that date, it had $770,000 of cash on hand and $830,000 of current liabilities. Collections for the remainder of the year from revenues other than current property taxes and from delinquent property taxes, including interest and penalties, were estimated at $1,100,000.
Required:
a. Calculate the estimated amount of tax anticipation financing that will be required for the remainder of FY 2017. Show work in good form.
b. Assume that on April 2, 2017, the City of Troy borrowed the amount calculated in part a by signing tax anticipation notes bearing 6 percent per annum to a local bank. Record the issuance of the tax anticipation notes in the general journals of the General Fund and governmental activities at the government- wide level.
c. By October l, 2017, the city had collected a sufficient amount of current property taxes to repay the tax anticipation notes with interest. Record the repayment of the tax anticipation notes and interest in the general journals of the General Fund and governmental activities at the government-wide level.
PAnswer:
A. $1,460,000
B. Dr Cash $1,460,000
Cr Tax anticipation note Payable $1,460,000
C.General fund
Dr Tax anticipation note Payable $1,460,000
Dr Expenditure $43,800
Cr Cash $1,503,800
Government activities
Dr Tax anticipation note Payable $1,460,000
Dr General government interest expense $43,800
Cr Cash $1,503,800
Explanation:
a. Calculation for the estimated amount of tax anticipation financing that will be required for the remainder of FY 2017.
Estimated amount of Tax Anticipation Financing
Budgeted expenditures, remainder of year 2,500,000
Add Current liabilities payable 830,000
Less Estimated Resources Available:
Cash on hand, beginning of year (770,000)
Collections of budgeted revenues and delinquent property taxes (1,100,000)
Estimated Amount of Required Tax Anticipation Note Financing $1,460,000
b. Preparation of the Journal entry to Record the issuance of the tax anticipation notes
Dr Cash $1,460,000
Cr Tax anticipation note Payable $1,460,000
c. Preparation of journal entry to Record the repayment of the tax anticipation notes and interest
General fund
Dr Tax anticipation note Payable $1,460,000
Dr Expenditure $43,800
($1,460,000*6%*6/12)
Cr Cash $1,503,800
($1,460,000+$43,800)
Government activities
Dr Tax anticipation note Payable $1,460,000
Dr General government interest expense $43,800
($1,460,000*6%*6/12)
Cr Cash $1,503,800
($1,460,000+$43,800)
Aug. 2 Invested $11,080 cash and $2,330 of equipment in the business.
7. Purchased supplies on account for $520. (Debit asset account.)
12. Performed services for clients, for which $1,343 was collected in cash and $628 was billed to the clients.
15. Paid August rent $582.
19. Counted supplies and determined that only $275 of the supplies purchased on August 7 are still on hand.
Required:
Journalize the transactions.
Answer and Explanation:
The journal entries are shown below:
On August 2
Cash $11,080
Equipment $2,330
To Capital $13,410
(Being Cash and equipment invested in the business)
On August 7
Supplies $520
To Accounts payable $520
(Being Purchase of supplies on account)
On August 12
Accounts Receivable $628
Cash $1,343
To Service Revenue $1,971
(Being Service revenue from clients )
On August 15
Rent expense $582
To Cash $582
(Being cash paid)
On August 19
Supplies expense ($520 - $275) $245
To Supplies $245
(Being supplies expense is recorded)
Crane Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred.
June 1 Purchased books on account for $1,280 (including freight) from Catlin Publishers, terms 2/10, n/30.
3. Sold books on account to Garfunkel Bookstore for $1,400. The cost of the merchandise sold was $800.
6. Received $80 credit for books returned to Catlin Publishers. 9 Paid Catlin Publishers in full.
15. Received payment in full from Garfunkel Bookstore.
17. Sold books on account to Bell Tower for $1,100, terms of 2/10, n/30. The cost of the merchandise sold was $950.
20. Purchased books on account for $800 from Priceless Book Publishers, terms 1/15, n/30.
24. Received payment in full, less discount from Bell Tower.
26. Paid Priceless Book Publishers in full.
28. Sold books on account to General Bookstore for $1,550. The cost of the merchandise sold was $800.
30. Granted General Bookstore $200 credit for books returned costing $70.
Required:
Journalize the transactions for the month of June for Powell Warehouse, using a perpetual inventory system
Answer:
June 1
Dr Inventory $1,280
Cr Accounts Payable $1,280
June 3
Dr Accounts Receivable $1,400
Cr Sales Revenue $1,400
Dr Cost of good sold $800
Cr Inventory $800
June 6
Dr Accounts Payable $80
Cr Inventory $80
June 9
Dr Accounts Payable $1,200
Cr Inventory $24
Cr Cash $1,176
June 15
Dr Cash $1,400
Cr Accounts receivable $1,400
June 17
Dr Accounts receivable $1,100
Cr Sales Revenue $1,100
Dr Cost of Goods sold $950
Cr Inventory $950
June 20
Dr Inventory $800
Cr Accounts payable $800
June 24
Dr Cash $1,078
Dr sales discount $22
Cr Accounts receivable $1,100
June 26
Dr Accounts Payable $1,200
Cr Inventory $24
Cr Cash $1,176
June 28
Dr Accounts Receivable $1,550
Cr Sales $1,550
Dr Cost of goods sold $800
Cr Inventory $800
June 30
Dr Sales returns and allowances $200
Cr Accounts Receivable $200
Dr Inventory $70
Cr Cost of goods sold $70
Explanation:
June 1
Dr Inventory $1,280
Cr Accounts Payable $1,280
June 3
Dr Accounts Receivable $1,400
Cr Sales Revenue $1,400
Dr Cost of good sold $800
Cr Inventory $800
June 6
Dr Accounts Payable $80
Cr Inventory $80
June 9
Dr Accounts Payable $1,200
($1,280-$80)
Cr Inventory $24
(2%*$1,200)
Cr Cash $1,176
($1,200-$24)
June 15
Dr Cash $1,400
Cr Accounts receivable $1,400
June 17
Dr Accounts receivable $1,100
Cr Sales Revenue $1,100
Dr Cost of Goods sold $950
Cr Inventory $950
June 20
Dr Inventory $800
Cr Accounts payable $800
June 24
Dr Cash $1,078
($1,100-$22)
Dr sales discount $22
(2%*$1,100)
Cr Accounts receivable $1,100
June 26
Dr Accounts Payable $1,200
($1,280-$80)
Cr Inventory $24
(2%*$1,200)
Cr Cash $1,176
($1,200-$24)
June 28
Dr Accounts Receivable $1,550
Cr Sales $1,550
Dr Cost of goods sold $800
Cr Inventory $800
June 30
Dr Sales returns and allowances $200
Cr Accounts Receivable $200
Dr Inventory $70
Cr Cost of goods sold $70
Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio
Consider the following case:
Crawford Construction has a quick ratio of: 2.00x, $36,225 in cash, $20,125 in accounts receivable, some inventory, total current assets of $80,500, and total current liabilities of $28,175. The company reported annual sales of $100,000 in the most recent annual report.
Over the past year, how often did Crawford Construction sell and replace its inventory?
a. 4.14 x
b. 4.55 x
c. 2.86x
d. 8.01 x
The inventory turnover ratio across companies in the construction industry is 4.55x. Based on this information, which of the following statements is true for Crawford Construction?
a. Crawford Construction is holding less inventory per dollar of sales compared to the industry average
b. Crawford Construction is holding more inventory per dollar of sales compared to the industry average
Answer:
Crawford Construction
1. Crawford Construction sold and replaced its inventory:
a. 4.14 x
2. With Construction Industry Inventory Turnover Ratio as 4.55x, Crawford Construction:
b. Crawford Construction is holding more inventory per dollar of sales compared to the industry average
Explanation:
a) Data and Calculations:
Quick ratio = 2.00x,
Cash = $36,225
Accounts receivable = $20,125
Inventory = x
x= $80,500 - 36,225 - 20,125 = $24,150
Total current assets = $80,500
Total current liabilities = $28,175
Annual sales = $100,000
Using annual sales instead of cost of goods sold to calculate the inventory turnover, = Turnover/Inventory = $100,000/$24,150 = 4.14x
b) Quick ratio equals (Current assets - Inventory)/Current Liabilities. Computing the quick ratio in place of the current ratio can be used to identify how Crawford Construction can meet its current (short-term) debts without selling inventory and recovering funds from the sale.
c) The Inventory Turnover Ratio divides the cost of goods sold by the average inventory. The Sales value can approximate the cost of goods sold. The ratio shows the efficiency of Crawford Construction in handling its inventory. The higher the value of the ratio, the better, showing that Crawford is more efficient when it gets a higher turnover ratio.
Schell Company manufactures automobile floor mats. It currently has two product lines, the Standard and the Deluxe. Suppose that Schell has conducted further research into its overhead and potential cost drivers. As a result, the company has compiled the following detailed information, breaking total overhead into three cost pools:
Activity Cost Pools Cost Driver Cost Assigned to Pool Quantity/Amount Consumed by Standard Floor Mat Line Quantity/Amount Consumed by Deluxe Floor Mat Line
Material handling Number of moves $3,750 30 moves 70 moves
Quality control Number of inspections $13,860 400 inspections 600 inspections
Machine maintenance Number of machine hours $21,450 4,150 machine hours 3,000 machine hours
Required :
a. Calculate the activity rates for each cost pool assuming Schell uses an ABC system.
b. Calculate the amount of overhead that Schell will assign to the Standard floor mat line.
c. Determine the amount of overhead Schell will assign to the Deluxe product line.
Answer:
Results are below.
Explanation:
First, we need to calculate the activities allocation rates:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Material handling= 3,750/100= $37.5 per move
Quality control=13,860/1,000= $13.86 per inspections
Machine maintenance= 21,450/7,150= $3 per machine hour
Now, we can allocate costs to each product:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Standard:
Allocated overhead= (37.5*30) + (13.86*400) + (3*4,150)
Allocated overhead= $19,119
Deluxe:
Allocated overhead= (37.5*70) + (13.86*600) + (3*3,000)
Allocated overhead= $19,941
(Predetermined OH rates; capacity measures) Albertan Electronics makes inexpensive GPS navigation devices and uses a normal cost system that applies over- head based on machine hours. The following 2010 budgeted data are available:
Variable factory overhead at 100,000 machine hours $1,250,000
Variable factory overhead at 150,000 machine hours 1,875,000
Fixed factory overhead at all levels between 10,000 and 180,000 machine hours
1,440,000
Practical capacity is 180,000 machine hours; expected capacity is two-thirds of practical.
a. What is Albertan Electronics’ predetermined variable OH rate?
b. What is the predetermined FOH rate using practical capacity?
c. What is the predetermined FOH rate using expected capacity?
d. During 2010, the firm records 110,000 machine hours and $2,710,000 of overhead costs. How much variable overhead is applied? How much fixed overhead is applied using the rate found in part (b)? How much fixed overhead is applied using the rate found in part (c)? Calculate the total under- or over applied overhead for 2010 using both fixed FOH rates.
Answer:
Albertan Electronics
a. Albertan Electronics’ predetermined variable OH rate is $20.50.
b. The predetermined FOH rate using practical capacity is $8.00.
c. The predetermined FOH rate using expected capacity is $12.00.
d1. The variable overhead applied is $1,375,000.
d2. The fixed overhead applied using the rate in (b) is $880,000.
d3. The fixed overhead applied using the rate in (c) is $1,320,000.
d4. The total under-applied overhead for 2010 at $8.00 FOH rate is $455,000 and the total under-applied overhead for 2010 at $12 FOH rate is $15,000.
Explanation:
a) Available 2010 budgeted data:
Variable factory overhead at 100,000 machine hours $1,250,000 ($12.50)
Variable factory overhead at 150,000 machine hours 1,875,000 ($12.50)
Fixed factory overhead at all levels between 10,000 and 180,000 machine hours = 1,440,000 ($8.00)
Practical capacity is 180,000 machine hours; expected capacity is two-thirds of practical (120,000) = $12 ($1,440,000/120,000)
Predetermined Overhead Rate:
Variable factory overhead = $12.50
Fixed factory overhead = 8.00
Predetermined overhead rate = $20.50
During 2010, the firm records 110,000 machine hours and $2,710,000 of overhead costs. How much variable overhead is applied? How much fixed overhead is applied using the rate found in part (b)? How much fixed overhead is applied using the rate found in part (c)? Calculate the total under- or overapplied overhead for 2010 using both fixed FOH rates.
Variable overhead applied = $12.50 * 110,000 = $1,375,000
Fixed overhead applied with $8 * 110,000 = 880,000
Total overhead applied $2,255,000
Underapplied overhead = ($2,710,000 -2,255,000) 455,000
Variable overhead applied = $12.50 * 110,000 = $1,375,000
Fixed overhead applied with $12 * 110,000 = 1,320,000
Total overhead applied $2,695,000
Underapplied overhead = ($2,710,000 -2,695,000) 15,000
Smoky Mountain Corporation makes two types of hiking boots--Xtreme and the Pathfinder. Data concerning these two product lines appear below:
Xtreme Pathfinder
Selling price per unit $140.00 $99.00
Direct materials per unit $72.00 $53.00
Direct labor per unit $24.00 $12.00
Direct labor-hours per unit 2.0 DLHs 1.0 DLHs
Estimated annual production and sales 20,000 units 80,000 units
The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below:
Estimated total manufacturing overhead $1,980,000
Estimated total direct labor-hours 120,000 DLHs
Required:
Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places.)
Answer:
Results are below.
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,980,000 / 120,000
Predetermined manufacturing overhead rate= $16.5 per direct labor hour
Now, we can determine the unitary product margin for each product:
Xtreme:
Selling price= 140
Total cost per unit= 72 + 24 + (16.5*2)= (129)
Product margin= $11
Pathfinder:
Selling price= 99
Total cost= 53 + 12 + (16.5*1)= (81.5)
Product margin= $17.5
Panarin Company entered into two contracts on the same date with Hjalmarsson Corporation. Panarin has provided the following analysis of price and cost for the contracts:
Contract A Contract B
Contract price $125,000 $80,000
Cost of related goods 70,000 55,000
Gross profit (loss) $55,000 $25,000
Hjalmarsson, the customer, may cancel both contracts if either of them is not fulfilled by Panarin in a timely manner. Stand-alone prices are typically $120,000 for the goods in Contract A and $80,000 for the goods in Contract B.
Required:
a. Should the two contracts be combined for purposes of applying the 5-step revenue recognition model?
b. What amount of revenue should Panarin associate with each of the contracts?
c. When should revenue be recognized on each of the contracts?
Answer:
a. The 2 contracts should be combined.
b. $123,000 for Contract A
$82,000 for Contract B
c. Revenue should be recognized when control of goods has transferred to the customer.
Explanation:
Part a:
Answer: Yes. The 2 contracts should be combined.
Reasoning:
5-step revenue recognition model indicates identification of contracts with customer in the first step, identification of performance obligations of the contract in the second step, transaction price determination in the third step, allocation of transaction price to the performance obligations to the fourth step and recognition of revenue as the performance obligations in the fifth step. Therefore, two contracts should be combined.
Part b:
Calculate the amount of revenue should P associate with each of the contracts.
There are two performance obligations:
Goods from contract A ($120,000 + ($5000 x 60%)) = $123000
Goods from contract B ($80,000 + ($5000 x 40%)) = $82000
Reasoning: It is given that the stand-alone prices for Contract A is $120,000 and Contract B is $80,000. Contract price of Contract A is $125,000. Thus, the additional $5,000 should be split between the 2 contracts. Hence, the performance obligations for goods from contract A is $123,000 and goods from contract B is $82,000.
Part C:
Revenue should be recognized when control of goods has transferred to the customer.
Reasoning:
Performance obligation is satisfied when transfer the good or service to the customer. Recognize revenue when the performance obligation is satisfied is the fifth step of the 5-step revenue recognition model. Hence, revenue should be recognized when control of goods has transferred to the customer.
Buffalo Corporation issues $630,000 of 9% bonds, due in 11 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Click here to view factor tables. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Issue price of the bonds
Answer:
the issue price of the bonds is $593,177
Explanation:
The computation of the issue price of the bonds is shown below:
Particulars Amount PV factorat 5% Present value
Semi-annual interest $28,350 11.68959 $331,400
Principal $630,000 0.41552 $261,778
Total $593,177
hence, the issue price of the bonds is $593,177
You have decided to throw a party next weekend for 19 friends. The friends are going to bring health food, so all you have to have available are the drinks. You estimate that, on average, each person will drink four bottles of soft drinks. Three of your friends will drink only natural soda without unneeded color - so Sulo Ginger Ale should work well for them. For the others and yourself, you decide to buy Sulo Cola. Before going online, you check the refrigerator - you already have six bottles of Sulo Ginger Ale and 14 of Sulo Cola. Since this is the end of the semester - you decide that you don't really want any of the soft drinks on hand after the party. Now, you are ordering on the Internet.
A. How many bottles of Sulo Ginger Ale do you plan to buy?
B. How many bottles of Sulo Cola do you plan to buy?
Answer:
A. The number of bottles of Sulo Ginger Ale to buy is 6.
B. The number of bottles of Sulo Cola to buy is 54.
Explanation:
a) Data and Calculations:
The number of friends attending the party = 19
When you are included, there are 20 persons attending.
Estimated number of bottles of soft drinks for each person = 4
Therefore, the total number of bottles of soft drinks required for the party = 80 (20 * 4).
Number of persons drinking Sulo Ginger = 3
Bottles of Sulo Ginger required = 3 * 4 = 12
Number of persons drinking Sulo Cola = 17
Bottles of Sulo Cola required = 68
The classification of the drinks is as follows:
Sulo Ginger Sulo Cola
Bottles required 12 68
Bottles available 6 14
Bottles to buy 6 54