Answer:
The journal entry to correct this error would be:
Debit : Retained Earnings $86,000
Credit : Machine $86,000
Explanation:
Straight line method charges a fixed amount of depreciation using the formula :
Depreciation expense = (Cost - Residual Value) ÷ Estimated useful life
thus,
Annual Depreciation expense = $430,000 ÷ 5
= $86,000
To correct the error :
Reduce the Retained Earnings amount (were depreciation expense lies) and Reduce the Asset Balance (a fall in value) with the amount of depreciation.
ABC firm purchased 100 food processors in 2019. By the end of 2019, there are 50 of them not sold yet. The purchased price of the food processors is $120. On Dec. 31 2019, this type of food processor only sells $100. What should the accounts do with the price change?
Answer:
Debit 1,000 cost of goods sold.
Explanation:
Based on the information given what should the accounts do with the price change will be to DEBIT 1,000 COST OF GOODS SOLD.
Dr Costs of goods sold $1,000
Cr Inventory $1,000
[($50*$120)-($50*$100)]
(To record adjusting entry to reduce Inventory value under lower of cost or market value rule)
A person buys X in one market and combines it with Y purchased in another market. The combination of X and Y gives Z, which the person sells in a third market for a higher price than the sum of the prices of X and Y. Which theory of profit is most consistent with this example
Answer:
arbitration
Explanation:
Arbitration occurs when the price of a security or a commodity varies significantly between different markets. For example, I purchase gold in the United Kingdom at a lower price than in the United States, and I bring it to the United States and make a profit. Arbitration opportunities result from market inefficiencies and a lack of a single price.
Rossi Inc. has a materials price standard of $2.00 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 6,000 pounds, although the standard quantity allowed for the output was 5,400 pounds.
Rossi, Inc.'s total materials variance is:______
Answer:
See below
Explanation:
Total materials variance is computed as
= [(AQ × AP) - (AQ × SP)]
AQ = Actual Quantity = 6,000
AP = Actual Price = $2.2
SP = Standard Price = $2
Then,
Rossi's inc. Materials price variance
= [(6,000 × $2.2) - (6,000 × $2)]
= $13,200 - $12,000
= $1,200 Unfavorable
1. What factors contributed to the success of Mavi Jeans?
Answer:
mavi jeans sold in special store around 50 countries. Those jeans also sold in 280 retail stores . Mavi having a very great "menu" approach by using product mix.
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Moss County Bank agrees to lend the Wildhorse Co. $650000 on January 1. Wildhorse Co. signs a $650000, 6%, 9-month note. What is the adjusting entry required if Wildhorse Co. prepares financial statements on June 30
Answer:
Debit : Interest charge $26,000
Credit : Note Payable $26,000
Explanation:
The interest charge for the 6 months expired on the note is the adjustment required.
Interest charge = $650000 x 6% x 6/9 = $26,000
therefore,
the adjusting entry required if Wildhorse Co. prepares financial statements on June 30 is :
Debit : Interest charge $26,000
Credit : Note Payable $26,000
Juan invests a total of $350000 in two accounts. The first account earned a rate of return of 3% (after a year). However, the second account suffered a 2% loss in the same time period. At the end of one year, the total amount of money gained was $1250. How much was invested into each account
Answer:
Juan invested $ 165,000 at a rate of return of 3%, and $ 185,000 in the account that had losses of 2% per year.
Explanation:
Given that Juan invests a total of $ 350,000 in two accounts, and the first account earned a rate of return of 3% (after a year), but however, the second account suffered a 2% loss in the same time period, and at the end of one year, the total amount of money gained was $ 1250, to determine how much was invested into each account, the following calculation must be performed:
175,000 x 0.03 - 175,000 x 0.02 = 1,750
160,000 x 0.03 - 190,000 x 0.02 = 1,000
165,000 x 0.03 - 185,000 x 0.02 = 1,250
Therefore, Juan invested $ 165,000 at a rate of return of 3%, and $ 185,000 in the account that had losses of 2% per year.
Hammerhead Inc. uses practical capacity as the denominator to set the cost of supplying capacity and for the current period the budgeted cost per unit of supplying capacity was $42. Practical capacity was set at 10,000 units with theoretical capacity at 14,000 units. During the period, only 4,000 units were produced while the master budget assumed that the company would produce 9,000 units. What is the value of the manufacturing resources NOT used during the period
Answer:
the value of the manufacturing resources not used is $252,000
Explanation:
The computation of the value of the manufacturing resources not used is shown below
= (practical capacity - number of units produced) × budgeted cost per unit of supplying capacity
= (10,000 units - 4,000 units) × $42
= 6,000 units × $42
= $252,000
Hence, the value of the manufacturing resources not used is $252,000
help asap please:)))!!!
Answer:
number 4
Explanation:
i used a calculator
Why south African post office taking private courier companies to court
Answer:
the south Africa post office (SAPO)
Bren Co.'s beginning inventory at January 1, 2005 was understated by $26,000, and its ending inventory was overstated by $52,000. As a result, Bren's cost of goods sold for 2005 was: Understated by $78,000. Overstated by $78,000. Understated by $26,000. Overstated by $26,000.
Answer:
Understated by $78,000
Explanation:
Given the above information,
We would sum up the beginning inventory of $26,000 that was understated on January 1 with the ending inventory of $52,000 that was overstated on December 31.
= $26,000 + $52,000
= $78,000
It is to be noted that understatement of beginning inventory and the over statement of ending inventory causes cost of goods sold to be understated by $78,000
"S Company reported net income for 2021 in the amount of $460,000. The company's financial statements also included the following: Increase in accounts receivable $ 75,000 Decrease in inventory 62,000 Increase in accounts payable 230,000 Depreciation expense 103,000 Gain on sale of land 147,000 What is net cash provided by operating activities under the indirect method?"
Answer:
$633,000
Explanation:
Calculation to determine net cash provided by operating activities under the indirect method
Using this formula
Net cash provided by operating activities=Net income-(+Increase in accounts receivable)-(-Decrease in inventory )+Increase in accounts payable+Depreciation expense -Gain on sale of land
Let plug in the formula
Net cash provided by operating activities=$460,000 -(+$75,000)-(-$62,000) + $230,000 +$103,000 - $147,000
Net cash provided by operating activities=$633,000
Therefore net cash provided by operating activities under the indirect method is $633,000
Assume you purchased 900 shares of XYZ common stock on margin at $90 per share from your broker. If the initial margin is 65%, the amount you borrowed from the broker is:_______.
A. $109,350
B. $81,000
C. $52,500
D. $28,350
E. $22,500
Answer:
See below.
Explanation:
Amount Borrowed = Shares * Price * (1-Initial Margin)
900*90*(1-0.65) =81000*28350 = $28,350
Answer = $ 28,350 (D)
Answer:
514444$000000
Explanation:
84,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $3,300. Using the straight-line method, the book value at December 31, 2021, would be:
Answer:
$67,860
Explanation:
Depreciation = Cost - Residual amount ÷ Useful life
= ($84,000 - $3,300) ÷ 5
= $16,140
Book Value = Cost - Accumulated depreciation
therefore,
Book Value = $84,000 - $16,140
= $67,860
thus
The book value at December 31, 2021, would be: $67,860
Scora, Inc., is preparing its master budget for the quarter ending March 31. It sells a single product for $60 per unit. Budgeted sales for the next three months follow. January February March Sales in units 1,400 2,200 1,300 Prepare a sales budget for the months of January, February, and March.
Answer and Explanation:
The preparation of the sales budget for the months of January, February, and March is presented below;
Particulars bud unit sales bud unit price bud total sales
january 1400 $60 $84,000
february 2200 $60 $132,000
march 1300 $60 $78,000
total for the quarter 4,900 $60 $294,000
Use the following Balance Sheet and Income Statement data of Bronson Corporation to calculate its debt to total assets ratio as of December 31, 2017:
Current assets $9,000 Net income $70,000
Current liabilities 4,000 Common stock 10,000
Average assets 28,000 Total liabilities 6,000
Total assets 30,000 Retained earnings 20,000
Write your response rounded to the nearest whole number only.
Answer:
20 %
Explanation:
The Debt to Total Assets ratio is used to measure financial risk, the higher the ratio the more financial risk there is.
Debt to Total Assets ratio = Total debt / Total Assets x 100
therefore,
Debt to Total Assets ratio = $6,000 / $30,000 x 100 = 20 %
thus,
The debt to total assets ratio as of December 31, 2017: 20 %
Which structure is used to supply customers (often other MNEs) in a coordinated and consistent way across various countries
Answer:
Global account structure.
Explanation:
Global account structure can be regarded as structure that enables the account that has been globally standardised or having compatible products as well as services in various locations at internationally level. Global Account Management enables Global account managers to navigate along with their teams the internal as well as external challenges. It should be noted that structure used to supply customers (often other MNEs) in a coordinated and consistent way across various countries is Global account structure.
Currently, the term structure is as follows: One-year bonds yield 9.50%, two- year zero-coupon bonds yield 10.50%, three-year and longer maturity zero- coupon bonds all yield 11.50%. You are choosing between one, two, and three- year maturity bonds all paying annual coupons of 10.50%. You strongly believe that at year-end the yield curve will be flat at 11.50%. a. Calculate the one year total rate of return for the three bonds. (Do not round intermediate calculations. Round your answers to 2 decimal places.) One Year Three Years Two Years % One year total rate of return % %
Which bond you would buy?
1) one-year bond
2) two-year bond
3) three-year bond
The answer is 2) two-year bond
Colorado Business Tools manufactures calculators. Costs incurred in making 9,940 calculators in February included $29,350 of fixed manufacturing overhead. The total absorption cost per calculator was $10.70.
Required:
a. Calculate the variable cost per calculator.
b. The ending inventory of pocket calculators was 750 units higher at the end of the month than at the beginning of the month. By how much and in what direction (higher or lower) would operating income for the month of February be different under variable costing than under absorption costing?
c. Express the pocket calculator cost in a cost formula.
Answer and Explanation:
The computation is shown below:
a)
Fixed manufacturing overhead per unit is
= $29,350 ÷ 9,940
= $2.95 per unit
Now
Variable cos per calculator is
= $10.70- $2.95
=$ 7.75 per calculator
b)Variable costing income will be lower by
= 750 units × $2.95
= $2,213
= Fixed cost + n × variable cost per calculator
c) The Cost formula (y) is
= $29,350 + 7.75 x
Menlove Corporation has provided the following cost data for last year when 100,000 units were produced and sold:
Raw materials $200,000
Direct labor 100,000
Manufacturing overhead 200,000
Selling and administrative expense 150,000
All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expense. If the selling price is $10 per unit, the net operating income from producing and selling 110,000 units would be:
a. $450,000
b. $385,000.
c. $405,000.
d. $605,000
Answer:
Net operating income= $405,000
Explanation:
First, we need to calculate the unitary variable cost:
Total variable cost= 650,000 - 100,000 - 100,000= $450,000
Unitary variable cost= 450,000 / 100,000
Unitary variable cost= $4.5
Total fixed cost= 100,000 + 100,000= $200,000
Now, the net operating income for 110,000 units:
Sales= 10*110,000= 1,100,000
Total variable cost= 110,000*4.5= (495,000)
Total contribution margin= 605,000
Total fixed cost= 200,000
Net operating income= $405,000
Building Company adds a shipping dock to the property of Corporate Complex, but the owner does not pay. Building files a lien on Corporate property. The property a. must be returned to the debtor within a certain period of time. b. none of the choices. c. must be sold to provide payment of the debt. d. can be held to guarantee payment of the debt.
Answer:
d. can be held to guarantee payment of the debt.
Explanation:
In the case when the building company added the shipping dock to the complex property but the owner does not pay the same so building filed a lien on the complex property so the property could be held for the debt payment that should be guarantee
Therefore the option d is correct
Cosmo breaks his fly rod while fly fishing in a remote area of Colorado. He goes to the local fly shop to buy a new rod, expecting to pay a considerable mark-up over the price he would pay at home in California. To his surprise, the price is exactly the same as at home. This is most likely due to
Answer:
Uniform pricing policy
Explanation:
Uniform pricing policy exists when a particular product has a uniform price across different markets and locations.
This was implemented by some businesses because of negative reactions from customers that resulted in decrease in sand in the long term.
When uniform price is used customers are confident prices will be the same anywhere.
In the given scenario Cosmos goes to the local fly shop to buy a new rod, expecting to pay a considerable mark-up over the price he would pay at home in California. To his surprise, the price is exactly the same as at home.
This is an example of uniform pricing.
The opposite of this is differential pricing where discrimination plays a part in product price
Assume that at the end of 2020, Clampett, Incorporated (an S corporation) distributes property (fair market value of $40,000, basis of $5,000) to each of its four equal shareholders (aggregate distribution of $160,000). At the time of the distribution, Clampett, Incorporated, has no corporate earnings and profits and J.D. has a basis of $50,000 in his Clampett, Incorporated, stock. What is J.D.'s stock basis after the distribution
Answer:
$45,000
Explanation:
Calculation to determine J.D.'s stock basis after the distribution
Using this formula
J.D.'s stock basis=Original basis+distributive share of the gain on the distribution -Distribution
Let plug in the formula
J.D.'s stock basis=$50,000+($40,000-$5,000)-$40,000
J.D.'s stock basis= $50,000 + $35,000 − $40,000
J.D.'s stock basis= $45,000
Therefore J.D.'s stock basis after the distribution
is $45,000
Bruce Company reported net income for 20X1 of $100,000. The company reported depreciation expense of $17,500 and amortization of $5,000. The company also reported a loss on the sale of equipment of $2,500. Based only on this information, the company would report cash flow from operating activities of:
Answer:
the cash flow from operating activities is $125,000
Explanation:
The computation of the cash flow from operating activities is shown below:
= net income + depreciation expense + amortization expense + loss on sale of an equipment
= $100,000 + $17,500 + $5,000 + $2,500
= $125,000
hence, the cash flow from operating activities is $125,000
An investor buys 100 shares of stock selling at $50 per share using a margin of 50%. The stock pays its annual dividends of $1.00 per share in 3 months. A margin loan can be obtained at an annual interest cost of 7.75%. Determine what return on invested capital the investor will realize if the stock price increases to $60 within six months
Answer:
The return on invested capital the investor will realize is 40.125%
Explanation:
First calculate the equity and borrowed fund investment
Equity investment = 100 shares x $50 x 50% = $2,500
Borrowed investment = 100 shares x $50 x 50% = $2,500
Now calculate the dividend and interest value
Dividend = 100 shares x $1 per share = $100
Interest paid = $2,500 x 7.75% x 6/12 = 96.875
Now calculate the price appreciation
Price apreciation = 100 Shares x ( $60 per share - $50 per share = $1,000
Now use the following formula to calculate the return on investment
Return on investment = ( Dividend - Interest payment + Price apprecaition ) / Equity Investment
Return on investment = ( $100 - $96.875 + $1,000 ) / $2,500
Return on investment = $1,003.125 / $2,500
Return on investment = 0.40125
Return on investment = 40.125%
the month-end bank stataement of der torossian incorporated shows a balance of 36,500, deposits in transit are 6500 outstanding checks are 12000. there also shows a credit memo of 1,000 for the interest income collected on a note recievable. the adjusted balance per bank at month end is
Answer:
$31,000
Explanation:
Calculating the adjusted balance per bank at month end.
Details Amount
Unadjusted Balance $36,500
Add: Deposits in Transit $6,500
Less: Outstanding Checks $12,000
Adjusted Balance $31,000
A Ford Mustang GT costs $75000. Assuming the price of a Ford Mustang didn't change since 1985, calculate the current(2019) price of resale for Mustangs purchased over the years, subject to variable depreciation based on Year of Purchase.
YEAR OF PURCHASE ANNUAL DEPRECIATION
1985 - 1995 $2000
1996 - 2005 $1800
2006 - 2015 $1600
2016 - Present $1400
A Mustang bought in 1997 will depreciate by $1800 annually and will resell at $33600 in 2020 or a Mustang bought in 2008 will depreciate by $1600 annually and will resell at $55800 in 2020. Create an excel sheet that asks the user the year of purchase and calculates the resale value of the car in 2020.
Answer:
Explanation:
The excel was created. The User has to enter the year that the vehicle was purchased and it will automatically calculate the resale value of the vehicle where it says "Resale Value in 2020: ". The excel sheet and proof of output is attached below.
BC County opens a solid waste landfill that it expects to fill to capacity gradually over a 40-year period. At the end of the first year, it is 6 percent filled. At the end of the second year, it is 15 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached 90 percent of its capacity.
Required:
What is true for the Year 2 government-wide financial statement?
Answer:
Expense will be $90,000 and liability will be $150,000
Explanation:
Year 2 liability is :
$1,000,000 * 15% = $150,000
Year 1 liability is :
$1,000,000 * 6% = $60,000
Expense for year 2 :
Year 2 liability - Year 1 liability
$150,000 - $60,000 = $90,000
Diego owns 1,000 shares of Carmen. If Carmen Company issues an additional 100,000 shares of common stock, how many additional shares does Diego have the opportunity to buy
Answer:
Number of additional shares Diego has the opportunity to buy is 500 shares.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Carmen Company has the following equity amounts and no dividends in arrears.
Preferred stock, $1,000 par $24 million
Common stock, $100 par $20 million
Paid-in capital in excess of par $36 million
Retained earnings $18 million
Diego owns 1,000 shares of Carmen. If Carmen Company issues an additional 100,000 shares of common stock, how many additional shares does Diego have the opportunity to buy?
a. 500 b. 1,000 c. 2,000 d. 3,000
The explanation of the answer is now given as follows:
Current number of Carmen's Common stock shares outstanding = Common stock value / Common stock par value = $20,000,000 / $100 = 200,000 shares
Current percentage of Diego ownership in Carmen = Current number of Diego;s shares / Current number of Carmen's Common stock shares outstanding = 1,000 / 200,000 = 0.005, or 0.50%
Number of additional shares Diego has the opportunity to buy = Number of additional shares Camen wants to issue * Current percentage of Diego ownership in Carmen = 100,000 * 0.50% = 500 shares
Solve the problem.
For two events, A and B, P( A) = .4, P( B) = .7, and P( A ∩ B) = .2. Find P( A | B).
.29
.5
.14
.08
Answer:
Your answer is given below:
Explanation:
arget Profit Scrushy Company sells a product for $150 per unit. The variable cost is $110 per unit, and fixed costs are $200,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $50,000. a. Break-even point in sales units fill in the blank 1 units b. Break-even point in sales units if the company desires a target profit of $50,000 fill in the blank 2 units
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price per unit= $150
The variable cost is $110 per unit, and fixed costs are $200,000.
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 200,000 / (150 - 110)
Break-even point in units= 5,000 units
Now, the desired profit is $50,000:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (200,000 + 50,000) / 40
Break-even point in units= 6,250