Paper Company acquired 100 percent of Scissor Company's outstanding common stock for $370,000 on January 1, 20X8, when the book value of Scissor's net assets was equal to $370,000. Accumulated depreciation on this date was $24,000. Paper uses the equity method to account for investments. The following trial balance summarizes the financial position and operations for Paper and Scissor as of December 31, 20X9: (Assume the company prepares the optional Accumulated Depreciation Elimination Entry.)

Paper Company Scissor Company
Debit Credit Debit Credit
Cash $323,000 $116,000
Accounts Receivable 165,000 97,000
Inventory 193,000 115,000
Investment in Scissor Stock 515,000 0
Lad 250,000 125,000
Buildings and equipment 875,000 250,000
Cost of Goods Sold 278,000 178,000
Depreciation Expense 65,000 12,000
Selling & Administrative Expense 312,000 58,000
Dividends Declared 90,000 30,000
Accumulated Depreciation $630,000 $48,000
Accounts Payable 85,000 40,000
Bonds Payable 150,000 100,000
Common Stock 625,000 250,000
Retained Earnings 498,000 188,000
Sales 880,000 355,000
Income from Scissor 107,000 0
Total $2,975,000 $2,975,000 $981,000 $981,000
Required: a. Prepare any equity method journal entry(ies) related to the investment in Scissor Company during 20X9.

b. Prepare a consolidation worksheet for 20X9

Answer:

C

Explanation:

more labor expense bringing in extras workers. Drives down the profits.

Answer:

$27,220

Explanation:

Cost of the truck includes : Cash price + sales tax + motor vehicle license + painting and lettering

accident insurance would not be added because its a revenue expenditure as it will reoccur after a year.

$23,030 + $670 + $2,140 + $1,380 = $27,220

I hope my answer helps you

Answer:

$27,220

Explanation:

From the question above Crane company incurs the following expenditures in purchasing a truck

Cash price = $23,030

Accident insurance during use= $1,690

Sales tax= $1,380

Motor vehicle license= $670

Painting and lettering= $2,140

Therefore, the cost of the truck can be calculated as follows

= $23,030+$1,380+$670+$2,140

= $27,220

The accident insurance is not added to find the cost of the truck because it doesn't add any value and can happen again the following year.

Hence the cost of the truck is $27,220

Answer:

$650,000

Explanation:

The computation of net cash flows from operating activities using the indirect method is shown below:-

Cash Flows from Operating Activities

Net income $640,000

Adjustment made

Add: Depreciation expense $49,000

Less: Increase in accounts receivable ($10,000)

Less: Decrease in accounts payable ($29,000)

Net cash flows from operating activities $650,000

The positive amount reflects the cash inflow and the negative amount reflects the cash outflow

Answer:

Budget for the Grinding department is $78,000, assuming that it uses flexible budgeting.

Explanation:

Note: Fixed cost remain constant at any level of production

Budgeted Direct labor at 1,100 hours of production is

= Budgeted direct labor / hours

= 19,800 / 1,100

=$18 per hour

Direct labor cost at 1,500 hours of production is:

=1,500 * $18

=$27,000

Budget for the Grinding department at 1,500 hour of production is:

=Direct labor cost + Property tax

=$27,000 + $51,000

=$78,000

Answer:

Direct Materials Control Account:

Debit to the direct materials control account is

d. 37,500

Explanation:

a) Calculation:

Since 5,000 pounds were used at a standard price of $7.50, a debit to the direct materials control account would be $37,500 (5,000 x$7.50).

b) The direct materials control account is a memorandum account where the costs of direct materials are recorded to serve as a check and point of reconciliation with the subsidiary ledger of direct materials account.  This debit shows the standard costs at actual production that is expensed  for the period or during the process.

Answer: Cover up to $500 of liability

Explanation:

When one suspect that there has been unauthorized transactions in ones accounts which could be due to fraud, such business or person can make a complaint as soon as possible.

As soon as the report is made, the person is no longer in charge of the unauthorized use of such card. In a case whereby the loss is reported within two days, the liability is limited to $50 but when the report is made within 60 days after ones statement has been sent to the person or business, this may lead to a liability of $500.

Cover upto liability of $500. If the report is made within 60 days of receiving statement that shows fradulent transactions. If it is not reported within 60 days then the liability is unlimited.

Answer:

To identify inflation rates in a monthly hyperinflationary process of 26,000 percent inflation, we must multiply that number by 12 months to obtain annual inflation, and divide it by 30 to obtain daily inflation.

Thus, the annual inflation of the country arises from calculating 26,000 x 12, which results in an annual inflation of 312,000 percent, with which a product that at the beginning of the year would cost $ 1 would cost $ 312,000 a year later.

In turn, to identify daily inflation, you have to divide 26,000 / 30, obtaining a daily inflation of 866.6 percent, which implies that a product with a value of $ 1, a day later would be costing $ 866.6.

Answer:

$36,000

Explanation:

Temporary duty can't change anything when someone is domiciled in the state and a responsible resident of the state, therefore his whole income would be taxable as usual whether he is in the state or out of state.

Workings:

Financial year= 12 months

Monthly salary = $3,000

Taxable income= $3,000 x 12 months

Taxable income = $36,000

Answer:

The answer is (a) False (b) False (c) True

Explanation:

Solution

(a)Businesses that do not acquire a differentiation,focus strategy, or  low-cost leadership, is liable to be more successful than businesses that do adopt these strategies - False because Companies or business does not necessarily need to adopt differentiation methods or low cost leadership, they might have their own market strategy to succeed.

(b) Employee abilities to develop innovative products are important for companies that use a low-cost leadership strategy - False .

(c) Companies that use a focus strategy have narrow buyer groups -Focus strategy : This strategy is used when a company knows its segment and has products that can competitively satisfies its needs.In this case it is true.

Answer:

1) The dividend paid to preferred stockholders is $26,368

The dividend paid to Common stockholders is $96,632

2)  The dividend paid to preferred stockholders is $26,368

The dividend paid to Common stockholders is $96,632

3) The dividend paid to preferred stockholders is $79,104

The dividend paid to Common stockholders is $43,896

Explanation:

1) The preferred stock is non-cumulative & the company has not missed any dividend in previous years

The dividend paid to preferred stockholders = 3,200 shares × $103 × 8 % = $26,368

The dividend paid to Common stockholders = $123,000 - $26,368  = $96,632

2) The preferred stock is non cumulative & the company did not pay dividend in each of the previous 2 years.

The dividend paid to preferred stockholders = 3,200 shares × $103 × 8 % = $26,368

The dividend paid to Common stockholders = $123,000 - $26,368  = $96,632

3) The preferred stock is cumulative & the company did not pay dividend in each of the previous 2 years.

The dividend paid to preferred stockholders = 3,200 shares × $103 × 8% × 3 years = $79,104

The dividend paid to Common stockholders = $132,000 - $86,400 = $43,896

Answer: $7400 ; $260

Explanation:

From the question, we are given the information that Remsco has taxable income of $64,000 and a charitable contribution limit modified taxable income of $74,000 and that its charitable contributions for the year were $7,660.

It should be noted that the charitable contribution is 10% of $74,000 which is the charitable contribution limit modified taxable income given in the question. So, this will be:

= 10% of $74,000

= 10/100 × $74,000

= 0.1 × $74,000

= $7400

Therefore, Remsco's current-year charitable contribution deduction is $7400.

Remsco's contribution carryover will be the difference between his charitable contributions for the year which is $7,660 and his current-year charitable contribution deduction is $7400. This will be:

= $7660 - $7400

= $260

Answer:

A. Compared with the firm's 12 percent cost of capital, Project W has a_______expected return.

1. Project X has a______expected return.

2. Project Y has a_______expected return

3. Project Z has a______expected return.

B. Project W should be_______.

1. Project X should be______.

2. Project Y should be_______.

3. Project Z should be_______.

c. If the firm's overall cost of capital were used as a hurdle rate, Project W would be_______.

1. Project X would be______.

2. Project Y would be_______.

3. Project Z would be________.

Explanation:

Project    Beta     IRR         expected return

W             .62      9.2%       = 5% + (0.62 x 7%) = 9.34%

X              .77      10.3 %     = 5% + (0.77 x 7%) = 10.39%

Y            1.27       14.1 %      = 5% + (1.27 x 7%) = 13.89%

Z            1.42       17.0%     = 5% + (1.42 x 7%) = 14.94%

A. Compared with the firm's 12 percent cost of capital, Project W has a expected lower return 1 is lower, 2 is higher, 3 is higher.  B. Project W should be rejected, 1 is rejected, 2 is accepted and 3 is accepted.  C. Project W would be correctly rejected, 1 is correctly rejected,  2 is correctly accepted and 3 is correctly rejected.  The correct options are A is a, 1 is b, 2 is b, 3 is a, B is b, 1 is b, 2 is a, 3 is a and C is c, 1 is c, 2 is b and 3 is b.

The cost of capital is a company's computation of the minimal return required to justify embarking on a capital budgeting project, like building a new plant.

Analysts and investors use the term cost of capital interchangeably, but it always refers to whether the expense of a proposed choice can be justified. Investors may also use the phrase to describe an assessment of an investment's prospective return in proportion to its cost and hazards.

Learn more about capital, here:

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Answer:

1. Notes payable (due in 13 to 24 months) - Long term Liability

This note will be owed for a period of more than 1 year. When this happens the note is said to be Long term.

2. Notes payable (due in 6 to 11 months). - Current Liability

As this note is due in a period less than a year, it is considered a current Liability.

3. Notes payable (mature in five years). - Long term Liability

This is a note that matures in a period more than a year making it a Long term Liability.

4. Current portion of long-term debt. Current Liability.

The current portion is due to be paid within the period so it is short term and hence a Current Liability.

5. Notes payable (due in 120 days). Current Liability.

Due in less than a year.

6. FUTA taxes payable. Current Liability

Taxes are generally considered a short term Liability until they are paid.

7. Accounts receivable. N (Not a Liability)

Accounts Receivable are Assets.

8. Sales taxes payable. Current Liability.

Taxes are generally considered a short term Liability until they are paid.

9. Salaries payable. Current Liability.

These salaries are owed for the period but have not been paid making them Current.

10. Wages payable. Current Liability.

Same as above. They are owed for the period but not yet paid.

The identification of the following items on the balance sheet of the company are:

Item                                                                  Classification

1. Notes payable (due in 13 to 24 months)    L

2. Notes payable (due in 6 to 11 months)      C

3. Notes payable (mature in five years)         L

4. Current portion of long-term debt             C

5. Notes payable (due in 120 days)               C

6. FUTA taxes payable                                   C

7. Accounts receivable                                   C

8. Sales taxes payable                                   C

9. Salaries payable                                         C

10. Wages payable                                         C

Current liabilities are the payables that the company must settle within its operating cycle of 12 months.  Long-term liabilities are payables settled after the operating cycle, say, from 13 months and above.

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Answer:

(a) 0.1585

(b) 0.4713

(c) 0.9545

Explanation:

The random variable X can be defined as the number of heads.

The coin provided is balanced, i.e. P (H) = P (T) = 0.50

The outcome of tossing the coin are: (H and T). Each of these outcomes are independent of each other.

The random variable X thus follows a Binomial distribution with probability of success as 0.50.

For a large sample a Normal approximation to binomial can be applied to approximate the distribution of p if the following conditions are satisfied:

1. np ≥ 10

2. n(1 - p) ≥ 10

(a)

n = 100

Check the conditions as follows:

 [tex]np=100\times 0.50=50>10\\\\n(1-p)=100\times(1-0.50)=50>10[/tex]

Thus, a Normal approximation to binomial can be applied.

So,  [tex]p\sim N(0.50,\ 0.05 )[/tex]

Compute the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 as follows:

[tex]P(0.49<p<0.51)=P(\frac{0.49-0.50}{0.05}<\frac{p-\mu}{\sigma}<\frac{0.51-0.50}{0.05})[/tex]

                              [tex]=P(-0.20<Z<0.20)\\\\=P(Z<0.20)-P(Z<-0.20)\\\\=0.57926-0.42074\\\\=0.15852\\\\\approx 0.1585[/tex]

Thus, the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 when a balanced coin is flipped 100 times is 0.1585.

(b)

n = 1000

Check the conditions as follows:

 [tex]np=1000\times 0.50=500>10\\\\n(1-p)=1000\times(1-0.50)=500>10[/tex]

Thus, a Normal approximation to binomial can be applied.

So,  [tex]p\sim N(0.50,\ 0.016 )[/tex]

Compute the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 as follows:

[tex]P(0.49<p<0.51)=P(\frac{0.49-0.50}{0.016}<\frac{p-\mu}{\sigma}<\frac{0.51-0.50}{0.016})[/tex]

                              [tex]=P(-0.63<Z<0.63)\\\\=P(Z<0.63)-P(Z<-0.63)\\\\=0.73565-0.26435\\\\=0.4713[/tex]

Thus, the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 when a balanced coin is flipped 1000 times is 0.4713.

(c)

n = 10,000

Check the conditions as follows:

 [tex]np=10000\times 0.50=5000>10\\\\n(1-p)=10000\times(1-0.50)=5000>10[/tex]

Thus, a Normal approximation to binomial can be applied.

So,  [tex]p\sim N(0.50,\ 0.005)[/tex]

Compute the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 as follows:

[tex]P(0.49<p<0.51)=P(\frac{0.49-0.50}{0.005}<\frac{p-\mu}{\sigma}<\frac{0.51-0.50}{0.005})[/tex]

                              [tex]=P(-2<Z<2)\\\\=P(Z<2)-P(Z<-2)\\\\=0.97725-0.02275\\\\=0.9545[/tex]

Thus, the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 when a balanced coin is flipped 10,000 times is 0.9545.

Missing information:

ERNST CONSULTING

Income Statement

October 31. 202x

Revenues:

Consulting fees earned $15,600  

Total revenues $15,600

Expenses:

Salaries expense $7,450  

Rent expense $4,070

Telephone expense $810

Miscellaneous expenses $630

Total expenses $12,960

Net income $2,640

Cash dividends $2,530

Answer:

Ernst Consulting

Statement of Cash Flows

October 31, 202x

Cash flows from operating activities:

Cash received from customers                                     $0

Cash paid for:

Rent expense                                                         -$4,070

Telephone expense                                                  -$810

Miscellaneous expenses                                         -$630

Total cash flow from operating activities             -$5,510

Cash flows from investing activities:

Cash paid for equipment                                     -$18,550

Total cash flows from investing activities           -$18,550

Cash flows from financing activities:

Cash investment from stockholders                   $38,600

Cash paid for dividends                                        -$2,530

Total cash flows from financing activities           $36,070

Net cash increase                                                  $12,010

Cash balance October 1, 202x                                     $0

Cash balance October 31, 202x                           $12,010

Answer:

The cash payback period is 3.5 years. The answer is True.

Explanation:

According to the given data we have the following:

Year Cash flows Cumulative Cash flows

0           (90,000)         (90,000)

1            36,000          (54,000)

2            30,000        (24,000)

3            18,000                 (6000)

4            12000               6000

5             6000             12,000

To calculate the cash payback period we use the following formula:

Payback period=Last period with a negative cumulative cash flow+(Absolute value of cumulative cash flows at that period/Cash flow after that period).

Payback period=3+($6,000/$12,000)

Payback period=3.5 years

The cash payback period is 3.5 years. True

Answer:

partial measure

Explanation:

Based on the information provided it can be said that the kind of productivity measure that can be used would be a partial measure. Partial Productivity measure relates output to a single input unit. For example, capital productivity deals with output per unit of capital while energy productivity relates output per joule of energy used. In this scenario, we would need labor productivity which is output per hour worked.

Answer:

D) not liable.

Explanation:

Duty of Care is the legal expectation from individuals and businesses in the course of discharging their duties, not to engage in conduct that could be foreseen to predispose others to danger or harm. The Duty of Accounting or accounting responsibility requires an accurate record of transactions.  Liability implies being legally answerable. In business transactions, businessmen owe it to their customers to provide their services and products in the best possible way so as to prevent causing harm to them. Employees also owe it to the organization they work for to discharge their duties carefully to avoid causing them loss.

Blythe's honest error in overestimating the value of a particular stock purchase is a mistake that anyone can make and can be easily corrected. Her company would not go the long route of taking her to court over such a mistake. Therefore, Blythe is not liable to her company.

Missing information:

Fixed administrative expense $ 16,200 Variable selling expense $ 20,250 Variable administrative expense $ ? Contribution margin $ 81,000 Net operating income $ 24,300

1. Prepare a contribution format income statement.

2. Prepare a traditional format income statement.

3. Calculate the selling price per unit.

4. Calculate the variable cost per unit.

5. Calculate the contribution margin per unit.

Answer:

First we must determine cost of goods sold = $27,000 + $270,000 - $13,500 = $283,500

now we must find total variable costs = total sales - contribution margin = $405,00 - $81,000 = $324,000

variable administrative expenses = total variable costs - COGS - variable selling expense = $324,000 - $283,500 - $20,250 = $20,250

1. Prepare a contribution format income statement.

Total sales                                                              $405,000

Cost of goods sold                                                $283,500

Gross contribution margin                                      $121,500

Variable selling expense                                        $20,250

Variable adm. expense                                          $20,250

Contribution margin                                                $81,000

Fixed period expenses:

Net operating income                                            $24,300

2. Prepare a traditional format income statement.

Total sales                                                              $405,000

Cost of goods sold                                                $283,500

Gross profit                                                              $121,500

Operating expenses:

Selling expenses                                                     $60,750

Adm. expenses                                                       $36,450

Net operating income                                            $24,300

3. Calculate the selling price per unit.

4. Calculate the variable cost per unit.

5. Calculate the contribution margin per unit.

Answer:

Explanation:

                                  Tannenhill          %            Industry

Sales                             4,000,000      100            100

Cost of goods               2,120,000        53              60

Gross profit                   1,880,000        47               40

Selling Expenses          1,080,000        27               24

Admin Expenses            640,000         16                14

Operating Expenses     1,720,000        43               38

Operating profit              160,000           4                2

Other income                  120,000          3                 3

Total income                   280,000         7                5

Other Expenses                80,000          2                2

Income before tax            200,000        5                3

Income tax                          80,000         2                2

Net Income                         120,000        3                1

B)

Despite the fact that the selling and admin expenses pf Tannenhill was higher than the industry average , it had a better performance in the cost of goods management which in effect caused Tannenhill to record a greater net income percentage compared to the industry performance.

The other income and expenses was the same with the industry average , hence no impact on the overall performance.

Answer:

Buy ABC Puts

Explanation:

Based on the information provided within the question it can be said that the best recommendation to the client is to Buy ABC Puts. This is mainly due to the fact that the client specifically stated that he does not want to lose more than this investment. Therefore Puts are the best option since they are purchased as a speculation on a market price decline, and the customer can only lose the premium paid if the market does the opposite and ends up rising. While other options like shorting or selling can lead to unlimited loss potential.

Answer: The answers are given below

Explanation:

A. What is the ACNielsen organization attempting to measure?

ACNielsen organization attempting to measure the Television Rating Point of the major television network. The TRP helps us to know the programmes that the viewers watch the most.

B. What is the population?

The population will have to be the viewers who watch the programmes and the television networks in the United States.

C. Why would a sample be used for this situation?

Sampling is when few people are selected from a larger population in order to carry out an experiment. In this situation, sampling is required because gathering data from the larger population will be time consuming and costly.

D. What kinds of decisions or actions are based on the ACNielsen studies?

A new strategy can be devised by the television networks of they know the number of people or the particular age group who normally watches the programmes, then they can tune their strategy towards that direction.

Answer:

B. budget management software

Explanation:

A budget management software would be the best option to combine different segments of data to create a companywide budget.

This is because one of the specific purposes of budget management software is to merge several budgets (for example, the budgets of a company's divisions) into a single one, larger budget (the companywide budget).

Answer:

         Flint Corporation current assets section of Balance Sheet

Particulars                                                                      Amount

Cash ($23,500 + 21,100)                                        43,600

Less: Restricted for plant expansion                     23,500     21,100

Trading Securities                                                                     9,700

Accounts receivable                                               73,300    

Less: Allowance for bad debts                               3,700       69,600              

Interest receivables (19,600*7%*9/12)                                      1,029    

Inventories

Finished goods                                                                          33,300

Work in Progress                                                                        13,000  

Raw materials                                                                             59,600

Total Current Assets                                                                 186,229

Answer:

The multiple choices are given below:

217%.

148%.

68%.

147%.

46%.

The correct option is 217%

Explanation:

Overhead applied can be  determined using the  below formula total cost formula:

The total cost of work-in-process inventory=direct material cost+direct labor cost+overhead applied

total cost of work-in-process is $11,625

direct material cost is $3,700

direct labor cost is $2,500

overhead applied is the unknown

$11,625=$3,700+$2,500+overhed applied

$11,625=$6200+overhead applied

overhead applied=$11,625-$6,200=$5,425.00  

predetermined overhead rate=overhead applied/labor cost=$5,425.00/$2,500.00=217%

Answer:

Externality

Explanation:

An externality is a loss or benefit generated by a producer not caused or earned directly by the producer. An externality may be positive or negative , and may result whether from the production or consumption of a product or service

Therefore in the given situation, it is mentioned that the two transaction effect between the person with respect to the third party that is not agreed for the transaction i.e to carrying out So this situation describes externality

Answer:

See explanation below

Explanation:

Given:

Current liabilities at April 30 of $69,400

Current ratio = 1.7

a) Calculate the firm's current assets and working capital at April 30:

Use the formula below to find the firm's current assets:

current ratio= current asset/current liability

current asset = current ratio × current liability

current asset = 1.7 × $69,400

Current asset = $117,980

For working capital:

Working capital= current assets-current liability

= $117,980 - $69,400

= $48,580

Working capital = $48,580

b) Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made:

New current assets = $117,980 + $14,300 = $132,280

New current liability = $69,400 + $14,300 = $83,700

Working capital = $132,280 - $83,700 = $48,580

Current ratio = 132,280/83700 = 1.58

c) There is no change in the working capital.

The current ratio will decrease by 0.12 (1.7 - 1.58) due to payment on 29th April

Answer:

The answer is 11.25%

Explanation:

Solution

Given that:

The next step to take is to calculate the required rate of return which is shown below:

The required rate = D₁/P₀₀ + g

Thus,

$1.68/$32 + 0.06%

=0.0525 + 0.06

=0.1125 or 11.25%

Therefore, the required rate of return is 11.25%

Answer:

Retained Earnings at as December 31  is $26,287

Explanation:

                        Blue Spruce Corp.

              Retained Earnings Statement

           For the year Ended December 31, 2017

Retained Earnings, January 1           $16,300

Add: Net Income                               $15,787

                                                           $32,087

Less: Dividend                                    $5,800

Retained Earnings, December 31   $26,287

Answer: exploit a positive deviation and correct a negative deviation

Explanation:

A planning gap is the difference that occurs in revenue or profits gap when current strategies are not changed. The gap analysis can help in the identification of gaps in the market. Therefore, when an organization compares its forecast profits to the company's desired profits, the planning gap will be shown.

When the actual results are lesser than the planned result, the organization would have to fill the gap with a marketing program which has been revised and sometime with new goals. Therefore, the firm can then decide whether to exploit wither a positive deviation and correct a negative deviation.