Answer:
False
Explanation:
The main difference between "Surrender of Shares" and "Forfeiture of shares" is the existence of compulsiveness. Although the two terms result in the loss of shares, the "Surrender of Shares" is done voluntarily, when the company or the shareholder decides to return the shares. The "Forfeiture of shares" occurs when the shares are taken compulsorily, due to non-payment or failure to meet deadlines.
During 2017, Grambling Company purchased 10,000 shares of Southern Corp. common stock for $215,000 as a passive interest investment. The fair value of these shares was $289,000 at December 31, 2017. During 2018, Grambling sold all of the Southern stock for $226,000. Grambling Company should report a realized gain on the sale of stock in 2018 of:______.A. $25,000.
B. $26,000.
C. $11,000.
D. $37,000.
Answer:
C. $11,000
Explanation:
Calculation to determine what Grambling Company should report as a realized gain on the sale of stock in 2018
Using this formula
2018 Realized gain on the sale of stock =Selling price-Cost of securities
Let plug in the formula
2018 Realized gain on the sale of stock=
$226,000 -$215,000
2018 Realized gain on the sale of stock=$11,000
Therefore Grambling Company should report a realized gain on the sale of stock in 2018 of $11,000
What steps will allow you to use the Keep Together property to ensure that none of the records are broken between two pages when they are printed?
Answer: 1. design
2. property sheet
3. yes
Explanation: just did it
Which of the following is an effective way to deal with change and innovation? Insist on success and punish failure. Hold closely to established methods of getting the job done. Innovate by varying existing products that are already on the market. Have flexibility and adaptability. Offer different explanations for the change to different work groups.
Answer:
Have flexibility and adaptability.
Explanation:
A radical innovation also known as the disruptive innovation is an innovative approach aimed at destroying or supplanting old business strategies and models with an invention to breakthrough and change the whole industries by creating new products.
Because workgroups develop their own subcultures, intranets build a common cultural foundation that can help unify employees in different units and locations around common company values.
An effective way to deal with change and innovation is to have flexibility and adaptability.
This ultimately implies that, an entrepreneur or business owner should be flexible and adaptive to changes in the industry, as well as developing the courage to follow his or her brilliant ideas.
Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $13,500.
1) The common stock has a market value of $20 per share, and the preferred stock has a market value of $90 per share.
2) The common stock has a market value of $20 per share, and the value of preferred stock is unknown.
Prepare the journal entry to record the issuance. (Round answers to 0 decimal places, e.g., 1520. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation Debit Credit
Answer:
A. Dr Cash $13,500
Cr Preferred Stock $5,000
Cr Common Stock $3,000
Cr PICEP-preferred 3,100
Cr PICEP-Common 2,400
B. Dr Cash 13,500
Cr Common Stock 3,000
Cr PICEP-(c/s) 3,000
Cr Preferred stock 5,000
Cr PICEP (p/s) 2,500
Explanation:
Preparation of the journal entry to record the issuance
Dr Cash $13,500
Cr Preferred Stock $5,000
(100 shares * $50)
Cr Common Stock $3,000
(300 shares * $10)
Cr PICEP-preferred 3,100
($8,100-$5,000)
Cr PICEP-Common 2,400
($5,400-$3,000)
Preferred share$90*100) $9000
Common stock($20*300) $6000
Total $15,000
$9000/$15000*$13500
=$8,100
$6000/$15000*$13,500
=$5,400
B.
Cash 13,500
Common Stock 3,000
(300 shares * $10)
PICEP-(c/s) 3,000
(300 shares * $10)
Preferred stock 5,000
(100 shares * $50)
PICEP (p/s) 2,500
[13,500-($20*300)]-$5,000
= $7,500-$5,000
=$2,500
The law of supply indicates that:A)the product supply curve is downsloping.B)consumers will purchase less of a good at high prices than they will at low prices.C)producers will offer more of a product at high prices than they will at low prices.D)producers will offer more of a product at low prices than they will at high prices.
Answer:
C) producers will offer more of a product at high prices than they will at low prices.
Explanation:
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.
The law of supply indicates that producers will offer more of a product at high prices than they will at low prices.
In order to understand both short-run economic fluctuations and how the economy move from short to long run, we need the aggregate supply and aggregate demand model.
When the price level rises, the wealth effect and the interest-rate effect provide incentives for consumers to spend less. The price level of goods and services in an economy influences the exchange rate, imports and exports.
An aggregate supply curve gives the relationship between the aggregate price level for goods or services and the quantity of aggregate output supplied in an economy at a specific period of time.
what effect does a rise in fuel prices have on product prices
Answer:
Rise in product prices
Explanation:
It becomes more expensive to produce and to transport the goods, so the product price will increase to make up for it.
Paul Company had 100,000 shares of common stock outstanding on January 1, 2021. On September 30, 2021, Paul sold 41,000 shares of common stock for cash. Paul also had 6,500 shares of convertible preferred stock outstanding throughout 2021. The preferred stock is $100 par, 5%, and is convertible into 3 shares of common for each share of preferred. Paul also had 430, 7%, convertible bonds outstanding throughout 2021. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2021 was $280,000 with a 40% tax rate. Common shareholders received $1.30 per share dividends after preferred dividends were paid in 2021. Required: Compute basic and diluted earnings per share for 2021.
Answer:
A. Basic earning per share 2.24 per share
B. Diluted earning per share 2.07 per share
Explanation:
Computation for the basic and diluted earnings per share for 2021.
First step is to calculate the Weighted common share
Weighted common share = 100,000+(41,000*3/12)
Weighted common share=100,000+10,250
Weighted common share= 110,250 Shares
a) Calculation for Basic earning per share using this formula
Basic earning per share = (Net income-Preferred dividend) / Share outstanding
Let plug in the formula
Basic earning per share = [$280,000-(5%*100*6,500)/110,250
Basic earning per share=[$280,000-$32,500)/110,250
Basic earning per share=$247,500/110,250
Basic earning per share =2.24 per share
Therefore Basic earning per share for 2021 will be 2.24 per share
b) Computation for the diluted earnings per share for 2021.
Using this formula
Diluted earning per share = Adjusted net income/Adjusted diluted share
First step is to calculate the Adjusted net income
Adjusted net income = $280,000+(430*1000*7%*60%)
(100%-40%=60%)
Adjusted net income = $280,000+$18,060
Adjusted net income =$298,060
Second step is to calculate the Adjusted diluted shares
Adjusted diluted shares = 110,250 +(6,500*3)+(430,000/30)
(430*1,000=430,000)
Adjusted diluted shares = 110,250+19,500+14,333
Adjusted diluted shares = 144,083
Now let calculate Diluted earning per share by plugging in the formula
Diluted earning per share = 298,060/ 144,083
Diluted earning per share= 2.068 per share
Diluted earning per share=2.07 per share (Approximately)
Therefore The Diluted earning per share for 2021 will be 2.07 per share
Imagine that David is preparing his will and is trying to decide how to divide his assets between his two grown children. His daughter, Tonya, is a chemical engineer who earns a high income. His son, Terry, opted out of college and went to work straight out of high school. Now Terry works in construction; he works just as hard as Tanya, but he is less affluent than she is.
Classify each example of possible ways David could divide his assets based on fairness and distribution.
a. Leave his money to the child whom he thinks deserves more money.
b. Leave his money to charity instead
c. Split his wealth evenly Terry and Tonya
d. Leave terry his entire wealth to offset the gap between him and his sister.
e. Tell his kids he will leave the money to whoever does the most to take care of him in his old age.
1. Fairness of equal outcomes
2. Fairness of equal opportunity
3. Fairness of process
4. Fairness of what is reserved or earned
Answer:
Fairness of Equal Outcomes: Split his wealth evenly between Terry and Tonya, Leave his money to charity instead.
Fairness of Equal Opportunity: Leave Terry his entire wealth to offset the gap between him and his sister.
Fairness of Process: Tell his kids he will leave the money to whoever does the most to take care of him in his old age.
Fairness of what is deserved or earned: Leave his money to the child whom he thinks deserves the most money.
Shiffon Electronics manufactures music players. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department, the Programming department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Shiffon Electronics uses weightedaverage costing. The following information is available for the month of March 2020 for the Assembly department. Work in process, beginning inventory units Conversion costs (% complete) Units started during March units Work in process, ending inventory: units Conversion costs (% complete) The cost details for the month of March are as follows: Work in process, beginning inventory Direct materials Conversion costs Direct materials costs added during March Conversion costs added during March What are the equivalent units for direct materials and conversion costs, respectively, for March?
Answer:
1,100 units; 1,050 units
Explanation:
Calculation to determine the equivalent units for direct materials and conversion costs, respectively, for March
DIRECT MATERIALS CONVERSION COSTS L
Completed and transferred out
1,000 units 1,000 units
(300 units+800 units - 100 units)
Add Work in process, ending
100 units 50 units
(50% Complete*100 units=50 units)
Total equivalent units
1,100 units 1,050 units
Therefore the equivalent units for direct materials and conversion costs, respectively, for March will be 1,100 units; 1,050 units
Members of 67 countries attended a conference on economic development hosted by an international organization based in Gent, Belgium. Attendees of the workshop learned about techniques designed to assist countries in expanding their degree of economic development. Emerging markets act as manufacturing bases for global Miltinationals Enterprises because of ________.
Answer:
High availability.of cheaper labour
Explanation:
An emerging market is defined as one that does not meet the standards of a fully developed market. For example in the area.of labour cost there is no standard set for it.
So companies can get cheap labour from these economies.
Companies like Apple and Nike have used cheap labour from emerging countries to reduce their cost of production.
Manufacturing bases are established in relatively poorer economies where the workers are willing to work for cheap wage
In business, a message written to right a wrong is called a claim. Straightforward claims are those where the receiver is expected to readily agree with your message. These claims require a direct approach. To be an effective business communicator, you should familiarize yourself with the best practices for making direct claims and voicing complaints.
Required:
What should you include in the opening of a direct claim message?
Answer: A clear statement of the problem
Explanation:
The opening of a direct claim message should clearly state the problem that you would like to be addressed by the receiver and would set the tone for the rest of the message.
Claim messages are formal messages and as such, should be clear and concise so that the message is communicated effectively and there is a lesser chance of the message being misread. This is why the message should be clearly stated, so that the receiver understands it and responds in kind.
Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 30%. The T-bill rate is 10%. Suppose that you have a client that prefers to invest in your risky portfolio a proportion (y) of his total investment budget so that his overall portfolio will have an expected rate of return of 15%. What is the investment proportion
Answer:
The proportion of the investment is 100%.
Explanation:
This can be calculated using the following formula:
Rportfolio = (y * Rrisky) + ((1 - y) * Ttbill) ..................... (1)
Where;
Rportfolio = Overall portfolio expected rate of return = 15%. or 0.15
Rrisky = risky portfolio expected rate of return = 15%, or 0.15
Ttbill = T-bill rate = 10%, or 0.10
Substituting the values into equation (1) and solve for y, we have:
0.15 = (y * 0.15) + ((1 - y) * 0.10)
0.15 = 0.15y + 0.10(1 - y)
0.15 = 0.15y + 0.10 - 0.10y
0.15 - 0.10 = 0.15y - 0.10y
0.05 = 0.05y
y = 0.05 / 0.05
y = 1.00, or 100%
Therefore, the proportion of the investment is 100%.
Learning involves changes in an individual's behavior resulting from previous experiences and information.
t or f
It is a true statement that Learning involves changes in an individual's behavior resulting from previous experiences and information.
What is a Learning?It refers to when we acquire knowledge or skills through personal study, experience, lesson, lecture etc
Hence, this process creates changes in an individual's behavior resulting from previous experiences and information as they tends to manifest in the learners action.
Therefore, it is a true statement
Read more about Learning
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In 2020, Ensley drove her automobile 28,500 miles. She incurred the following expenses during the year related to the automobile: Gas and oil, lubrication: $1,800 Insurance: $980 Repairs: $360 Licenses and registration fees: $50 Business parking and tolls: $170 She uses the automobile 80% for business. Based on the data, Ensley's automobile deduction under the actual cost method is $fill in the blank 1.
Answer: $2722
Explanation:
Ensley's automobile deduction under the actual cost method is calculated below:
Gas and oil = $1800
Add: Insurance = $980
Add: Repairs = $360
Add: Licenses and registration fees = $50
Total Expenses = $3190
We then calculate the business usage which will be:
= 80% of $3190
= 0.8 × $3190
= $2552
We then add the cost of business parking and tolls, then the total deduction will be:
= $2552 + $170
= $2722
1. Descriptive research is conducted for all of the following reasons except ________. a. to describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas b. to determine the degree to which marketing variables are associated
Answer: c. To understand which variables are the cause and which variables are the effect of a phenomenon
Explanation:
The options include:
a. To describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas
b. to determine the degree to which marketing variables are associated
c. to understand which variables are the cause and which variables are the effect of a phenomenon
d. to determine the perceptions of product.
Descriptive research simply refers to a research type that is used in the description of a population that the researcher is studying.
It simply answers questions such as when, what or how in the research. The subject of the research is being described here.
From the options given, we should note that the descriptive research isn't conducted to understand which variables are the cause and which variables are the effect of a phenomenon.
On January 1, 2018, Advanced Airline purchased a used airplane at a cost of $60,500,000. Advanced Airline expects the plane to remain useful for eight years (5,000,000 miles) and to have a residual value of $5,500,000. Advanced Airline expects the plane to be flown 1,100,000 miles the first year and 1,200,000 miles the second year.
Requirements
1.Compute first-year (2019) depreciation expense on the plane using the following methods:
a.Straight-line
b.Units-of-production
2.Show the airplane’s book value at the end of the first year for the two methods.
Answer:
Results are below.
Explanation:
First, we need to calculate the annual depreciation using the straight-line method:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (60,500,000 - 5,500,000) / 8
Annual depreciation= $6,875,000
Now, using the units of production method:
Annual depreciation= [(original cost - salvage value)/useful life of production in miles]*miles operated
Annual depreciation= [(55,000,000 / 5,000,000)]*1,100,000
Annual depreciation= $12,100,000
Finally, the book value:
Book value= purchase price - accumulated depreciation
Straight-line:
Book value= 60,500,000 - 6,875,000= $53,625,000
Units-of-production:
Book value= 60,500,000 - 12,100,000= $48,400,000
Jenna has been working at Firenzi Entertainment Group for the past 3 years as a location scout. One of Jenna's chief responsibilities is to travel with a team of 5 people to international locations to try to find potential sets for films. Jenna also has a legal background and previous experience working as an entertainment agent. She is the only one on her team with this experience. Therefore, Jenna's secondary role is writing the license deal and various contracts once the location has been found. Eighty percent of her job can be sitting at a desk writing the agreements and negotiating deals over the phone. In the past year Jenna has been suffering from migraines which trigger vertigo and dizziness. She has been told by two doctors not to travel because the plane compression will make the migraines worse. Jenna brings the proper medical paperwork and lets her boss know she won't be able to travel. Her boss says that is a requirement of the job and if she can't travel then she can no longer perform her role and would be terminated. Jenna would like some advice from you whether the American With Disabilities Act will protect her. 1) What are the relevant rules under the ADA that pertain here
Answer:
One Of Jenna's Chief Responsibilities Is To Travel With A Team Of 5 People To International Locations To Try To Find Potential Sets For Films. Jenna Also Has A Legal Background And Previous Experience Working As An ... Jenna has been working at Firenzi Entertainment Group for the past 3 years as a location scout.
Suppose you are a euro-based investor who just sold shares of a U.S. company that you had bought six months ago. You had invested 10,000 euros to buy theshares for $120 per share; the exchange rate was $1.03 per euro. You sold the stock for $171 per share and converted the dollar proceeds into euro at the exchange rate of $0.94 per euro.
Required:
Compute the rate of return on your investment in euro terms.
Answer:
The rate of return on your investment in euro terms is 56.14%.
Explanation:
Amount invested in euros = 10,000 euros
Amount invested in dollars = Amount invested in euros * Exchange rate at the time of purchase = 10,000 euros * $1.03 = $10,300
Number of shares bought = Amount invested in dollars / Cost price per share in dollars = $10,300 / $120 = 85.8333333333333
Proceeds from sales in dollars = Number of shares bought * Selling price per share in dollars = 85.8333333333333 * $171 = $14,677.50
Proceeds from sales in euros = Proceeds from sales in dollars / Exchange rate at the time of sales = $14,677.50 / $0.94 = 15,614.36 euros
Rate of return in euro terms = (Proceeds from sales in euros - Amount invested in euros) / Amount invested in euros = (15,614.36 - 10,000) / 10,000 = 0.5614, or 56.14%
Therefore, the rate of return on your investment in euro terms is 56.14%.
The following materials standards have been established for a particular product at Zoom Industries: Standard quantity per unit of output 6.3 pounds Standard price $15.10 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased 7,650 pounds Actual cost of materials purchased $64,780 Actual materials used in production 7,150 pounds Actual output 890 units The direct materials purchases variance is computed when the materials are purchased. What is the materials quantity variance for the month
Answer:
the material quantity variance is $23,299.30 unfavorable
Explanation:
The computation of the material quantity variance is shown below:
= (standard quantity - actual quantity) × standard rate
= (6.3 × 890 - 7,150) × $15.10
= (5,607 - 7,150) × $15.10
= $23,299.30 unfavorable
Hence, the material quantity variance is $23,299.30 unfavorable
has 8.3 million shares of common stock outstanding. The current share price is $53, and the book value per share is $4. also has two bond issues outstanding. The first bond issue has a face value of $70 million and a coupon rate of 7 percent and sells for 108.3 percent of par. The second issue has a face value of $60 million and a coupon rate of 7.5 percent and sells for 108.9 percent of par. The first issue matures in 8 years, the second in 27 years. (a) What are capital structure weights on a book value basis
Answer:
Equity = 20.34%Debt = 79.66%Explanation:
Book value of stock:
= 8,300,000 * 4
= $33,200,000
Total book value = BV of stock + BV of bonds
= 33,200,000 + 70,000,000 + 60,000,000
= $163,200,000.
Weight of Equity:
= 33,200,000 / 163,200,000
= 20.34%
Weight of debt:
= (70,000,000 + 60,000,000) / 163,200,000
= 79.66%
The notes to a recent annual report from Weebok Corporation indicated that the company acquired another company, Sport Shoes, Inc. Assume that Weebok acquired Sport Shoes on January 5 of the current year. Weebok acquired the name of the company and all of its assets for $511,000 cash. Weebok did not assume the liabilities. The transaction was closed on January 5 of the current year, at which time the balance sheet of Sport Shoes reflected the following book values and an independent appraiser estimated the following market values for the assets:
Sport Shoes, Inc.
January 5 of the Current Year Book Value Market Value
Accounts receivable (net) $35,000 $35,000
Inventory 210,000 183,000
Fixed assets (net) 23,000 46,500
Other assets 10,000 16,000
Total Assets $278,000
Liabilities $72,000
Stockholders' equity 206,000
Market values for the purchased assets were provided to Weebok by an independent appraiser.
Required:
Compute the amount of goodwill resulting from the purchase.
Answer: $230,500
Explanation:
Goodwill is the amount over the value of a company that is purchased for.
Fair market value is the relevant value used in goodwill calculation because it represents the current value of the assets acquired.
Goodwill = Acquisition price - Fair market values of the assets
= 511,000 - 35,000 - 183,000 - 46,500 - 16,000
= $230,500
Government corrects____externalities by subsidizing the activity, as they do with____corrects____externalities by regulating or taxing activity in order to____pollution provides_____goods like national defense because of the free-rider problem promotes_____because markets with few firms tend to be inefficient provides assistance to those in need in order to improve____attempts to pursue macroeconomic goals, including____, _____, and____.
Answer:
Government corrects positive externalities by subsidizing the activity, as they do with education.Positive externalities are encouraged by subsidizing them so that they increase the more.
corrects negative externalities by regulating or taxing activity in order to discourage pollution.Negative externalities are punished by regulation and taxation to discourage their spread.
provides public goods like national defense because of the free-rider problemPublic goods need to be provided because everyone needs access to them and not just a select few.
promotes competition because markets with few firms tend to be inefficient.Monopolies have been shown to be inefficient as they do not have any competition that inspires innovation.
provides assistance to those in need in order to improve equity. attempts to pursue macroeconomic goals, including low unemployment, strong growth, and stability.It is a government's duty to ensure that the country is experiencing certain macro economic goals such as low unemployment, strong growth and economic stability.
Note: Options were too much to attach to answer as they required multiple pictures so I hope you have access to those options.
General Mattress Company makes Memory Foam mattresses, a mass-market high-volume product, and Magnetic Levitation mattresses, a premium low-volume product. The company uses a traditional cost allocation with a single cost pool. It is planning to implement activity-based costing (ABC). After implementing ABC, the company will likely find that the traditional cost allocation: Group of answer choices
Answer:
Answer is explained in the explanation section below.
Explanation:
First of all, this question is not complete and lacks the group of answer choices. However, I have found that question with complete options on the internet.
So,
The Correct option is: D
Option D = Not enough information
Reasoning:
For overestimated or underestimated or not full information required i.e. cost under traditional method and cost under activity based cost method , both information required for compare methods cost under each method.
Under Activity base costing all indirect cost is applied as per activities use by each product but under traditional method only one key factor use for applied overheads i.e. direct labor hours or machine hours etc.
Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy:Direct materials: 6 microns per toy at $1.50 per micron Direct labor: 1.3 hours per toy at $21 per hourDuring July, the company produced 3,000 Maze toys. Production data for the month on the toy follow:Direct materials: 25,000 microns were purchased at a cost of $1.48 per micron. 5,000 of these microns were still in inventory at the end of the month.Direct labor: 4,000 direct labor-hours were worked at a cost of $88,000.Required: 1. Compute the following variances for July:a. The materials price and quantity variances.b. The labor rate and efficiency variances.
Answer:
1. a. The materials price and quantity variances
Material price variance: Standard cost per micron is $1.50 and actual cost per micron is $1.48. So, price variance is 1.48 - 1.5 = $(0.02) per micron
Quantity variance: Based on standard bill of material, Dawson Toys need 3,000 x 6 = 18,000 microns to produce 3,000 Maze toys. Actual consumption volume is 25,000 - 5,000 = 20,000 microns. So, quantity variance is 20,000 - 18,000 = 2,000 microns.
1. b. The labor rate and efficiency variances
Actual labor rate = Actual labor cost / Actual hour = 88,000/4,000 = $22 per hour.
Efficiency variance = Actual labor rate - Standard labor rate = 22 - 21 = $1 per hour.
2. Prepare a brief explanation of the possible causes of each variance.
Direct material cost variance: Total actual material cost is 20,000 x 1.48 = $29,600, higher than standard material cost of 18,000 x 1.5 = $27,000. This is mainly due to higher production waste as compared to standards.
Direct labor cost variance: Total actual labor cost is $88,000, higher than standard labor cost of 4,000 x 21 = $84,000. This is mainly due to lower labor rate per hour than expected.
Explanation:
A liquid asset is one that is easy to cash in.
What is the most liquid asset?
Which is more liquid, a savings account or a loan to a business?
Koczela Inc. has provided the following data for the month of May: Inventories: Beginning Ending Work in process $ 28,000 $ 23,000 Finished goods $ 57,000 $ 61,000 Additional information: Direct materials $ 68,000 Direct labor cost $ 98,000 Manufacturing overhead cost incurred $ 74,000 Manufacturing overhead cost applied to Work in Process $ 72,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for May is:
Answer:
COGS= $241,000
Explanation:
First, we need to calculate the cost of goods manufactured with allocated overhead:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 28,000 + 68,000 + 98,000 + 72,000 - 23,000
cost of goods manufactured= $243,000
Now, we determine the cost of goods sold:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 57,000 + 243,000 - 61,000
COGS= $239,000
Finally, we close the under/over applied overhead to COGS:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 74,000 - 72,000
Underapplied overhead= $2,000
We need to debit COGS and credit overhead:
COGS 2,000
Manufacturing overhead 2,000
COGS= 239,000 + 2,000
COGS= $241,000
Pension data for Millington Enterprises include the following: ($ in millions) Discount rate, 10% Projected benefit obligation, January 1 $ 350 Projected benefit obligation, December 31 540 Accumulated benefit obligation, January 1 375 Accumulated benefit obligation, December 31 490 Cash contributions to pension fund, December 31 225 Benefit payments to retirees, December 31 69 Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.Service cost?JDS Foods’ projected benefit obligation, accumulated benefit obligation, and plan assets were $80 million, $70 million, and $56 million, respectively, at the end of the year.What, if any, pension liability must be reported in the balance sheet?What would JDS report if the plan assets were $100 million instead?
Answer:
1. Service cost $294 million
2. Net Pension Liabiltiy $24 million
Net pension Assets $20 million
Explanation:
1. Calculation to determine the service cost component of pension expense for the year ended December 31
SERVICE COST ($ in millions)
Projected benefit obligation, December 31 540
Less Projected benefit obligation, January 1 ($350)
Less Interest Cost ($35)
(10%*$350)
Add Benefit payments to retirees, December 31 $69
Service cost $294
($540 - $350 - $35 + $69)
Therefore the service cost component of pension expense for the year ended December 31 will be $294
2. Calculation to determine pension liability that must be reported in the balance sheet using this formula
Pension Liabiltiy=Projected benefit obligation-Plan Assets
Let plug in the formula
Net Pension Liabiltiy=$80 million-$56 million
Pension Liabiltiy=$24 million
Therefore The pension liability that must be reported in the balance sheet will be $24 million
Calculation to determine What would JDS report if the plan assets were $100 million instead
Using this formula
Net pension Assets=Plan Assets-Projected benefit obligation
Let plug in the formula
Net pension Assets=$100 million instead-$80 million
Net pension Assets=$20 million
Therefore What would JDS report if the plan assets were $100 million instead is $20 million
The aggregate demand curve is downward sloping because production costs decline as real GDP increases. is upward sloping because a higher price level is necessary to make production profitable as production costs rise. shows the amount of expenditures required to induce the production of each possible level of real GDP. shows the amount of real GDP that will be demanded at each possible price level. g
Answer: shows the amount of real GDP that will be demanded at each possible price level.
Explanation:
The Aggregate Demand curve shows how much of real GDP is demanded at each possible price level which means that is shows the effect of the price level on real GDP.
If the price level rises, real GDP will decrease and if the price level falls, real GDP rises. This is why the aggregate demand curve is downward sloping, to reflect this inverse relationship between real GDP and price level.
Jefferson is interested in starting his own business. He plans to borrow money from the local bank in order to finance the business. They will require him to submit a business plan and a(n) _____.a.buy-out planb.income statementc.partnership agreementd.financial plan
Answer:
d.financial plan
Explanation:
A financial plan is a document that gives a picture of the monetary position of a person or entity, their future monetary goals, along with strategies that are aimed meeting such goals.
A business plan is the general goals of a business and ways in which they can be achieved.
In the given scenario Jefferson has given his business plan. But he also needs to give a financial plan that will show the bank how feasible his business is.
Trell Corporation transferred $56,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 80% of the factored amount to Trell and retains the remaining 20%. When the bank collects the receivables, it will remit to Trell the retained amount less a fee equal to 3% of the total amount factored. Trell estimates a fair value of its 20% interest in the receivables of $11,000 (not including the 3% fee). Trell will show an amount receivable from factor of:
Answer:
$9,320
Explanation:
Calculation to determine what Trell will show as the amount receivable from factor of:
Using this formula
Amount receivable =Interest in the receivables-( Local bank transferred accounts receivable*Fees percentage)
Let plug in the formula
Amount receivable=$11,000 - ($56,000 × 3%)
Amount receivable=$11,000-$1,680
Amount receivable= $9,320
Therefore Trell will show an amount receivable from factor of:$9,320