The accounts in the ledger of Dependable Delivery Service contain the following balances on July 31, 2022.

Accounts Receivable $11,400
Prepaid Insurance $1,800
Accounts Payable 7,400
Maintenance and Repairs Expense 1,200
Cash 15,940
Service Revenue 15,500
Equipment 59,360
Dividends 800
Utilities Expense 950
Common Stock 40,000
Insurance Expense 600
Salaries and Wages Expense 8,400
Notes Payable, due 2024 31,450
Salaries and Wages Payable 900
Retained Earnings (July 1, 2022) 5,200

Required:
Prepare classified balance sheet for July 31, 2022.

Answers

Answer 1

Answer:

Dependable Delivery Service

Classified balance sheet as at July 31, 2022

Non Current Assets

Equipment                                                  $59,360

Total Non Current Assets                          $59,360

Current Assets

Accounts Receivable                                  $11,400

Prepaid Insurance                                        $1,800

Cash                                                            $15,940

Total Current Assets                                  $29,140

Total Assets                                               $88,500

Equity and Liabilities

Equity

Common Stock                                         $40,000

Retained Earnings                                       $8,750

Total Equity                                                $48,750

Liabilities

Non Current Liabilities

Notes Payable, due 2024                         $31,450

Total Non Current Liabilities                     $31,450

Current Liabilities

Accounts Payable                                      $7,400

Salaries and Wages Payable                       $900

Total Non-Current Liabilities                     $8,300

Total Liabilities                                         $39,750

Total Equity and Liabilities                      $88,500

Explanation:

Its very important to calculate the Retained Earnings Balance at the end of July 2020.

To do this, we need to first calculate the Net Income for the period as follows :

Income Statement for the year ended July 31, 2022

Service Revenue                                                        15,500

Less Expenses :

Maintenance and Repairs Expense           1,200

Utilities Expense                                           950

Insurance Expense                                       600

Salaries and Wages Expense                    8,400     (11,150)

Net Income/(loss)                                                         4,350

Then, calculate the Retained Earnings Balance as follows :

Retained Earnings Calculation

Beginning Balance                                    5,200

Add Net Income during the period          4,350

Less Dividends                                            (800)

Ending Balance                                         8,750


Related Questions

Which of the following best defines a financial intermediary? a claim by a buyer to a future payment by a seller a collection of stocks and bonds issued to investors a financial institution that transforms investor funds into financial assets an asset sold by a company which entitles the buyer to partial ownership

Answers

Answer:

Option C (A financial.......assets) is the correct choice.

Explanation:

A financial intermediary seems to be an entity that serves as an intermediary seen between the listing agent as well as the buyer's transactions. They help convert investment properties, swap properties between producers and consumers, respectively. Therefore, a financial intermediary would be a finance company that converts capital instruments into investment capital.

Other decisions are given aren't connected to the results provided. So that is indeed the safest decision.

Nell and Kirby are in the process of negotiating their divorce agreement. What should be the tax consequences to Nell and Kirby if the following, considered individually, became part of the agreement?
a. In consideration for her one-half interest in their personal residence, Kirby will transfer to Nell stock with a value of $200,000 and $50,000 of cash. Kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. They purchased the residence three years ago for $300,000.
Nell's basis for the stock is _______$ X
Kirby's basis in the house is ______$ X
b. Nell will receive $1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be made to her estate.
The payments (qualify, do not qualify) as alimony and are (included in, excluded from) Nell's gross income as they are received.
c. Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life.
$ X per month is alimony that is (included in, excluded from) Nell's gross income, and the remaining $ X per month is considered​(child support, property settlement) and is (nontaxable, taxable) to Nell.

Answers

Answer:

Explanation:

CHECK THE COMPLETE QUESTION BELOW;

The transfers of the stock and residence pursuant to the divorce are nontaxable to Nell

and Kirby. Nell assumes Kirby's basis in the stock of $150,000, and Kirby's basis in the house is $300,000. However, the $50,000 cash paid by Kirby will be alimony

unless the agreement specifies that the payment is "not alimony."

Nell and Kirby are in the process of negotiating their divorce agreement. What should be the tax consequences to Nell and Kirby if the following, considered individually, became part of the agreement?

A) In consideration for her one-half interest in their personal residence, Kirby will transfer to Nell stock with a value of $200,000 and $50,000 of cash. Kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. They purchased the residence three years ago for $300,000.

a) The transfer of the property is a _____event.

b) Nell's basis for the stock is $

c) Kirby's basis in the house is $

B). Nell will receive $1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be made to her estate.

The payments (qualify, do not qualify) as alimony and are (included in, excluded from) Nell's gross income as they are received.

C) Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life.

$ X per month is alimony that is (included in, excluded from) Nell's gross income, and the remaining $ X per month is considered​(child support, property settlement) and is (nontaxable, taxable) to Nell.

ANSWER AND EXPLANATION:

A). In consideration for her one-half interest in their personal residence, Kirby will transfer to Nell stock with a value of $200,000 and $50,000 of cash. Kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. They purchased the residence three years ago for $300,000.

ANSWER:

a) The transfer of the property is a __non negotiatiable___event.

b) Nell's basis for the stock is $150,000

c) Kirby's basis in the house is $300,000

Hints;

✓ From the question, it was stated at the onset of their agreement that ""Nell and Kirby are in the process of negotiating their divorce agreement". Hence it is a non negotiatiable event.

✓ from the question as well, Nell assumes ""Kirby's basis in the stock of $150,000, and Kirby's basis in

the house is $300,000." Hence, the basis for Nell and Kirby are $150,000 and $300,000 respectively.

B). Nell will receive $1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be made to her estate.

The payments (qualify, do not qualify) as alimony and are (included in, excluded from) Nell's gross income as they are received.

ANSWER: The payments "Do NOT QUALIFY""as alimony and are "EXCLUDED FROM""Nell's gross income as they are received.

HINTS: As the payment is been received, it cannot be recorded as the Nell's gross profit ,and cannot be counted as alimony, reason behind this is that even if Nell should die,the payment continues.

Note that, alimony can be regarded as the payment that are to be paid from one of the couple to the other after divorce as part of finance support, usually ordered by court of law.

C). Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life.

$ X per month is alimony that is (included in, excluded from) Nell's gross income, and the remaining $ X per month is considered​(child support, property settlement) and is (nontaxable, taxable) to Nell.

ANSWER: "$300 per month" is alimony that is" INCLUDED IN"" Nell's gross income, and the remaining $900 per month is considered "CHILD SUPPORT"child and is "NON TAXABLE to Nell.

HINTS:it was stated that Nell should receive $1200 monthly for Bobby's child support as well as alimony, out of this $900 goes for child support and $300 for alimony, provided that all the stated Condition stated in the question is followed duely.

Suppose the following data were taken from the 2017 and 2016 financial statements of American Eagle Outfitters. (All numbers, including share data, are in thousands.)
2017 2016
Current assets $ 890,400 $999,600
Total assets 1,950,000 1,878,000
Current liabilities 424,000 357,000
Total liabilities 573,300 552,132
Net income 166,830 337,600
Net cash provided by operating activities 300,000 452,600
Capital expenditures 271,000 246,500
Dividends paid on common stock 85,000 76,500
Weighted-average shares outstanding 201,000 211,000
a. Calculate the current ratio for each year. (Round answers to 2 decimal places, e.g. 15.25.)
2017 2016
Current ratio
b. Calculate earnings per share for each year. (Round answers to 2 decimal places, e.g. 15.25.)
2017 2016
Earnings per share $
c. Calculate the debt to assets ratio for each year. (Round answers to 1 decimal place, e.g. 29.5%)
2017 2016
Debt to assets ratio
d. Calculate the free cash flow for each year. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).)
2017 2016
Free cash flow

Answers

Answer:

Please see below

Explanation:

a. Current ratio

= Total current asset / Total current liabilities

2017

Current asset. 890,400

Current liabilities 424,000

Current ratio = 890,400/424,000

= 2.1

2016 Current ratio

Current asset. 999,600

Current liabilities 357,000

Current ratio = 999,600/357,000

= 2.8

b. Earnings per share

= (Net income - Preference dividend) / Weighted average number of shares outstanding

2017

Net income. 166,830

Weighted Average number of shares outstanding 201,000

Earnings per share = $166,830/201,000

= $0.83

2016 Earnings per share

Net income $337,600

Weighted Average number of shares outstanding 211,000

Earnings per share = $337,600/211,000

= $1.6

c. Debt to asset ratio

= Total liabilities / Total assets

2017

Total liabilities 573,300

Total assets 1,950,000

= 573,300/1,950,000

= 0.29

2016 Debt to asset ratio

Total liabilities 552,132

Total assets 1,878,000

Debt to asset ratio = 552,132/1,878,000

= 0.29

d. Free cash flow

2017

Cash flow from operating activities 300,000

Less: capital expenditure (271,000)

Free cash flow 29,000

2016 free Cash flow from operating activities

Free cash flow 452,600

Less: capital expenditure (246,500)

Free cash flow. 206,100

The Pritzker Music Pavilion in downtown Chicago is a technologically sophisticated and uniquely designed performing arts venue that hosts live concerts attended by over half a million patrons a year. A group of local organizers, led by a prominent local businesswoman, would like to use the pavilion for a concert to benefit a non-profit, national network of investors and environmental organizations working with companies and investors to address sustainability challenges such as global climate change. If the pavilion management agrees to host the concert, the organizers will donate all profits to Ceres (or absorb any losses).

Based on the following revenue and cost information, the organizers would like answers to several questions.

1. There are three sources of revenue for the concert:
2. Tickets will be sold for $15.50 each.
3. A large multinational corporation headquartered in Chicago will donate $2.00 per ticket sold.
4. Each concert attendee is expected to spend an average of $17.00 for parking, food, and merchandise.
5. On the expense side, there are also three components:

A popular national group has agreed to perform at the concert. Normally, the group demands a significant fixed fee to perform, but to reduce the risk for the organizers, the group has agreed to perform for $6.00 per ticket sold. The organizers will pay several companies to operate the parking, food, and merchandise concessions. They will pay $21,000 plus 15% of all parking, food, and merchandise revenue. The organizers will pay the pavilion $85,000 plus $7.00 per person attending to cover its operating expenses (production, maintenance, advertising, etc.)

Required:
a. What is the estimated contribution margin per ticket sold for the benefit concert?
b. What are the estimated total fixed costs for the benefit concert?
c. What is the estimated profit from the benefit concert if 10,500 tickets are sold?
d. How many tickets must be sold in order for concert profit to be $100,000?
e. Assuming a tax rate of 31% on profits from the concert, what must dollar ticket sales be in order for after-tax concert profits to be $100,000?
f. Assume that the organizers can negotiate the fixed payment for the pavilion's operating expenses. If the organizers expect to sell 10,500 tickets, how much can they afford to pay and still earn a profit of $100,000 (ignore taxes)?

Answers

Answer:

a. What is the estimated contribution margin per ticket sold for the benefit concert?

contribution margin per ticket = ($15.50 + $2 + $17) - ($6 + $2.55 + $7) = $34.50 - $15.55 = $18.95

b. What are the estimated total fixed costs for the benefit concert?

total fixed costs = $21,000 + $85,000 = $106,000

c. What is the estimated profit from the benefit concert if 10,500 tickets are sold?

estimated profit = (10,500 x $18.95) - $106,000 = $92,975

d. How many tickets must be sold in order for concert profit to be $100,000?

number of tickets sold = ($106,000 + $100,000) / $18.95 = 10,870.71 ≈ 10,871 tickets sold

e. Assuming a tax rate of 31% on profits from the concert, what must dollar ticket sales be in order for after-tax concert profits to be $100,000?

$100,000 / (1 - 31%) = $144,927.54

number of tickets sold = ($106,000 + $144,927.54) / $18.95 = 13,241.56 ≈ 13,241.56 tickets sold

f. Assume that the organizers can negotiate the fixed payment for the pavilion's operating expenses. If the organizers expect to sell 10,500 tickets, how much can they afford to pay and still earn a profit of $100,000 (ignore taxes)?

contribution margin increases to $18.95 + $7 = $25.95

10,500 = ($21,000 + $100,000 + ?) / $25.95

$272,475 = $121,000 + ?

? = $151,475

you can pay up to $151,475 in fixed expenses to the pavilion

Luke offered to sell his farm to Kent at $75,000, an offer which Kent declined. A week later, Luke offered to sell the farm for $65,000, stating that it was the final offer, it was valid for one month, and that he would not alter it. Two days later, Kent replied by saying that he was willing to pay $60,000 for the farm. A week after Luke received Kent's offer, Luke declined it. Ten days after that, Kent agreed to buy the farm for $65,000, but Luke refused to sell the farm. Kent decided to sue Luke for a breach of contract. The judge ruled in favor of Luke. Which one of the following is the reason for the ruling in Luke's favor?

a. Luke's original offer of $75,000 is still valid, even though rejected.
b. Kent acted in an incompetent manner with regards to the offer.
c. Kent's acceptance was past the set time period in the offer.
d. Kent's counteroffer of $60,000 had rendered the offer for $65,000 invalid.

Answers

Answer:

Option D

Explanation:

Kent's counteroffer of $60,000 had rendered the offer for $65,000 invalid

Reason- Whenever a counteroffer is made, it voids the earlier offers That's because real estate laws in all 50 states say that a seller who makes a written counteroffer automatically renders the buyer's original offer null and void.

Mcmurtry Corporation sells a product for $250 per unit. The product's current sales are 13,600 units and its break-even sales are 10,608 units. The margin of safety as a percentage of sales is closest to:

Answers

Answer:

22%

Explanation:

Margin of Safety is the amount by which sales can fall before making a loss.

Margin of Safety = Expected Sales - Break-even Sales ÷ Expected Sales

                           = (13,600 - 10,608) ÷ 13,600

                           = 0.22 or 22%

Blight Financial has an investment in bonds issued by Searing Industries that are classified as trading securities. At December 31, Year 2, the Investment in Searing bonds account had a debit balance of $500,000, and the bonds were purchased at par so the $500,000 equals amortized cost. The Fair Value Adjustment account had a debit balance of $20,000. On December 31, Year 3, the amortized cost of those bonds has not changed, but the fair value of those bonds was $515,000. Which of the following will be included in the related journal entry dated December 31, Year 3?

a. Debit to Fair value adjustment for $5,000.
b. Credit to Fair value adjustment for $5,000.
c. Debit to Fair value adjustment for $25,000.
d. Credit to Fair value adjustment for $25,000.

Answers

Answer:

b. Credit to Fair value adjustment for $5,000.

Explanation:

Particulars                                                               Amount

Beginning balance of fair value adjustment         $20,000

Less: Unrealized gain on Dec 31                            $15,000

          (515,000 - 500,000)

Credit to fair value adjustment                              $5,000

Kirkwood acquires 100 percent of the outstanding voting shares of Soufflot Company on January 1, 2018. To obtain these shares, Kirkwood pays $400 cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Kirkwood's stock had a fair value of $36 per share on that date. Kirkwood also pays $15 (in thousands) to a local investment firm for arranging the acquisition. An additional $10 (in thousands) was paid by Kirkwood in stock issuance costs.

The book values for both Kirkwood and Souflout as of January 1, 2018 follow. The fair value of each of Kirkwood and Soufflot accounts is also included. In addition, Soufflot holds a fully amortized trademark that still retains a $40 (in thousands) value. The figures below are in thousands. Any related question also is in thousands.


Kirkwood Inc Book Value Fair Value
Cash 900 80 80
Receivables 480 180 160
Inventory 660 260 300
Land 300 120 130
Buildings (net) 1,200 220 280
Equipment 360 100 75
Accounts payable 480 60 60
Long-term liabilities 1,140 340 300
Common stock 1,000 80
Additional paid-in capital 200 0
Retained earnings 1,080 480


Required:
What amount will be reported for consolidated cash after the acquisition is completed?

Answers

Answer:

$555,000

Explanation:

Calculation for the amount that will be reported for consolidated cash after the acquisition is completed

Cash at Kirkwood Inc $475,000

(900-400-15-10)

Add Cash at Soufflot Company $80,000

Consolidated cash after acquisition is completed $555,000

Therefore the amount that will be reported for consolidated cash after the acquisition is completed will be $555,000

The rule of 70 indicates that a 6% annual increase in the level of real GDP would lead to the output doubling in approximately _____ years.

Answers

Answer:

11.67

Explanation:

the time it would take real GDP to double = 70 / growth rate of real GDP = 70 / 6 = 11.67 years

Assume the bonds below have the same term and principal and that the state or local government that issues the municipal bond has a good credit rating. Which list has bonds correctly ordered from the one that pays the highest interest rate to the one that pays the lowest interest rate

Answers

Answer:

b. corporate bond, U.S. government bond, municipal bond

Explanation:

If we assume that the bonds have the similar time period and the principal amount so the bond that pays the highest interest to the bond that pays the lowest interest rate is described below:

The ranking can be done

Corporate bond - highest interest rates

Municipal bonds - lowest interest rates

The same is to be considered

Therefore the option b is correct

Every 6 months, Leo Perez takes an inventory of the consumer debts he has outstanding. His latest tally shows that he still owes $4,250 on a home improvement loan (monthly payments of $100); he is making $50 monthly payments on a personal loan with a remaining balance of $825; he has a $1,500, secured single- payment loan that's due late next year; he has a $70,000 home mortgage on which he's making $850 monthly payments; he still owes $12,500 on a new car loan (monthly payments of $550); and he has a $1,200 balance on his Mastercard (minimum payment of $50), a $50 balance on his Shell credit card (balance due in 30 days), and a $500 balance on a personal line of credit ($90 monthly payments).
a. Use Worksheet to prepare an inventory of Leo's consumer debt.
Type of Consumer Debt Creditor Currently Monthly Latest Balance Due
Payment
Auto loans
Personal installment loans
Home improvement loan
Single-payment loans
Credit cards Mastercard
(retail charge cards, bank
cards, T&E Shell cards, etc.)
Personal line of credit $ $
Totals $
b. Find his debt safety ratio, given that his take-home pay is $2,000 per month. Round the answer to 1 decimal place. %
c. Would you consider this ratio to be good or bad?

Answers

Answer:

The answer is "87%".

Explanation:

Please find the attached file.

Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. The selling price and cost per unit data for 9,130 units of Fluoro2211 are as follows.

Per Unit Data
Selling Price $410
Direct Materials 150
Direct Labor 28
Variable Manufacturing Overhead 25
Fixed Manufacturing Overhead 43
Variable Selling 16
Fixed Selling and Administrative 23
Total Costs 285
Operating Margin $125

During the next year, sales of Fluoro2211 are expected to be 10,130 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and direct materials, which will increase by 10%. The selling price per unit for next year will be $420. Based on these data, Razor Inc.'s total contribution margin for next year will be: __________

Answers

Answer:

Total contribution margin= $1,884,180

Explanation:

Giving the following information:

Direct Materials 150

Direct Labor 28

Variable Manufacturing Overhead 25

Variable Selling 16

Sales in units= 10,130

Selling price= $420

Direct material cost= 150*1.1= $165

First, we need to calculate the unitary contribution margin:

Unitary contribution margin= selling price - total unitary variable cost

Unitary contribution margin= 420 - (28 + 25 + 16 + 165)

Unitary contribution margin= $186

Now, the total contribution margin:

Total contribution margin= 10,130*186

Total contribution margin= $1,884,180

Match the qualitative characteristics below with the following statements.1. Timeliness2. Completeness3. Free from error4. Understandability5. Faithful representation6. Relevance7. Neutrality8. Confirmatory valuea. Quality of information that assures users that information represents the economic phenomena that it purports to represent.b. Information about an economic phenomenon that corrects past or present expectations based on previous evaluations.c. The extent to which information is accurate in representing the economic substance of a transaction.d. Includes all the information that is necessary for a faithful representation of the economic phenomena that it purports to represent.e. Quality of information that allows users to comprehend its meaning.

Answers

Answer:

1. Comparability.

2. Predictive value.

3. Free from error.

4. Completeness.

5. Faithful representation.

Explanation:

a. Comparability: Quality of information that assures users that information represents the economic phenomena that it purports to represent.

b. Predictive value: Information about an economic phenomenon that corrects past or present expectations based on previous evaluations.

c. Free from error: The extent to which information is accurate in representing the economic substance of a transaction.

d. Completeness: Includes all the information that is necessary for a faithful representation of the economic phenomena that it purports to represent.

e. Faithful representation: Quality of information that allows users to comprehend its meaning

Larkspur Incorporated factored $124,300 of accounts receivable with Cullumber Factors Inc. on a without-recourse basis. Cullumber assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable for possible adjustments.

Required:
Prepare the journal entry for Larkspur Incorporated and Cullumber Factors to record the factoring of the accounts receivable to Cullumber.

Answers

Answer:

Larkspur Incorporated

DR Cash                                                           115,599

     Due from Factor (Cullumber)                       6,215

     Loss on Sale of Receivables                       2,486

     CR Accounts Receivable                                               124,300

Working

Due from Factor = 5% * 124,300

= $‭6,215‬

Loss on sale of receivables = 2% * 124,300

= $‭2,486‬

Cash = 124,300 - 6,215 - 2,486

= $‭115,599‬

Cullumber Factors Inc.

DR Accounts Receivable                                       124,300

     CR Due to Larkspur                                                             6,215

           Financing Revenue                                                        2,486

           Cash                                                                              115,599

A company issues $50 million of bonds at par on January 1, 2018. The bonds pay 10% interest semi-annually on 12/31 and 6/30 and mature in 20 years. The journal entry when the bonds are sold is:

Answers

Answer: Please see explanation for answer

Explanation:

Journal entry to record sale of bonds

Account titles                           Debit                       Credit

Cash                                     $50,000,000

Bonds Payable                                                      $50,000,000

I WILL GIVE BRAINLIEST

Lean and Six Sigma models contradict one another,
True
False

Answers

True................................

________ is used to make purchases while ________ is the total collection of pieces of property that serve to store value.

Answers

Answer:

Money; wealth.

Explanation:

Money can be defined as any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.

Basically, money is a currency used for the purchase of goods and services such as food, clothes, perfume, shoes, automobile etc.

Hence, money is used to make purchases while wealth is the total collection of pieces of property that serve to store value. This simply means, wealth refers to the total or overall assets that is being owned by an individual or organization at a specific period of time.

Joni Splish Brothers Inc. has the following amounts reported in its general ledger at the end of the current year.

Organization costs $23,800
Trademarks 15,700
Discount on bonds payable 36,800
Deposits with advertising agency for ads to promote goodwill of company 11,800
Excess of cost over fair value of net identifiable assets of acquired subsidiary 76,800
Cost of equipment acquired for research and development projects; the equipment has an alternative future use 86,800
Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years 82,600

Required:
On the basis of this information, compute the total amount to be reported by Hyde for intangible assets on its balance sheet at year-end.

Answers

Answer:

$92,500

Explanation:

The computation of the total intangible asset is shown below:

= Trademarks + Excess of cost over fair value of net identifiable assets of acquired subsidiary

= $15,700 + $76,800

= $92,500

Hence, the total intangible asset is $92,500 and the same is to be considered

We simply applied the above formula

Alpha Inc. has receivables from unrelated parties with a face value of $5,000. It transfers these receivables to bank for $4,500, without recourse. It will continue to collect the receivables, depositing them in a non-interest-bearing bank account with the cash flows remitted to the bank at the end of each month. It is not allowed to sell or pledge the receivables to anyone else and is under no obligation to repurchase the receivables from bank. Which of the following is the appropriate treatment for these Accounts receivables?
A) It should show these receivables in its Balance Sheet.
B) It should amortize these receivables.
C) It should derecognize these receivables.
D) It should derecognize these receivables if it retains the interest earned on these.

Answers

Answer:

C). It should derecognize these receivables.

Explanation:

Derecognition is characterized as the process of removing or derecognizing a financial asset or liability from the company's balance sheet that was previously acknowledged. In the given situation, the appropriate treatment for the Account receivables would be to dercognize it as the organization does not possess any control over them. Thus, option C is the correct answer.

Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2021. Insight Machines manufactured the equipment at a cost of $350,000 and lists a cash selling price of $437,810. Appropriate adjusting entries are made quarterly.

Related Information:

Lease term 5 years (20 quarterly periods)
Quarterly lease payments $26,250 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter
Economic life of asset 5 years
Interest rate charged by the lessor 8%

Required:
a. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
b. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.

Answers

Answer:

a. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.

we must first determine the present value of the lease payments:

PV of lease payments = quarterly payment x annuity factor

quarterly payment = $26,250PV annuity due factor, 2%, 20 periods = 16.67846

PV of lease payment = $26,250 x 16.67846 = $437,809.56 ≈ $437,810

January 1, 2021, equipment leased from Insight Machines

Dr Right of use asset 437,810

    Cr Lease payable 437,810

January 1, 2021, first lease payment

Dr Lease payable 26,250

    Cr Cash 26,250

March 31, 2021, second lease payment

Dr Lease payable 18,019

Dr Interest expense 8,231

    Cr Cash 26,250

interest expense = ($437,810 - $26,250) x 2% = $8,231

March 31, 2021, amortization expense

Dr Amortization expense 21,891

    Cr Right of use asset 21,891

amortization expense = $437,810 / 20 = $21,891

b. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.

January 1, 2021, equipment leased to Eye Deal

Dr Lease receivable 437,810

    Cr Lease revenue 437,810

Dr Cost of goods sold 350,000

    Cr Equipment 350,000

January 1, 2021, first lease payment

Dr Cash 26,250

    Cr lease receivable 26,250

March 31, 2021, second lease payment

Dr Cash 26,250

    Cr Lease receivable 18,019

    Cr Interest revenue 8,231

Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing. Because of this, the company's profits are driven by the amount of work Tom does. If he works 40 hours each week, the company's EBIT will be $615,000 per year; if he works a 50 hour week, the company's EBIT will be $755,000 per year. The company is currently worth $3.85 million. The company needs a cash infusion of $1.95 million, and it can issue equity or issue debt with an interest rate of 7 percent. Assume there are no corporate taxes.
What are the cash flows to Tom under each scenario?

Answers

Answer:

Scenario 1: debt is issued

interest expense = $1,950,000 x 7% = $136,500

amount of hours                  EBIT               Net income (all for Tom)

Tom works    

40                                     $615,000           $478,500

50                                    $755,000            $618,500

Scenario 2: equity is issued

amount of hours            Net income         Tom's share    

Tom works                                                  ($3.85 / $5.8 = 66.38%)      

40                                     $615,000           $408,237

50                                    $755,000            $501,169

You have a tax basis of ​$ and a useful life of five years and no salvage value. Provide a depreciation schedule ​(dk for k1​5) for ​% declining balance with switchover to straight line. Specify the year to switchover. Determine the depreciation amounts using the ​% declining balance and​ straight-line methods and BV amounts for each year

Answers

Answer:

the numbers are missing, so I will use another question as an example:

the asset's cost is $100,000useful life is 5 yearsno salvage value150% declining balance

straight line depreciation = $100,000 / 5 = $20,000

150% declining balance depreciation year 1 = 1.5 x $100,000 x 1/5 = $30,000, since it is higher than straight line we will use declining balance

book value at end of year 1 = $100,000 - $30,000 = $70,000

straight line deprecation = $70,000 / 4 = $17,500

150% declining balance depreciation year 2 = 1.5 x $70,000 x 1/5 = $28,000, since it is higher than straight line we will use declining balance

book value at end of year 2 = $70,000 - $28,000 = $42,000

straight line depreciation = $42,000 / 3 = $14,000, since it is higher than declining balance we will use straight line ⇒ switchover year

150% declining balance depreciation year 3 = 1.5 x $42,000 x 1/5 = $12,600

book value at end of year 3 = $42,000 - $14,000 = $28,000

depreciation year 4 = $14,000 (straight line)

book value at end of year 4 = $28,000 - $14,000 = $14,000

depreciation year 5 = $14,000 (straight line)

book value at end of year 5 = $14,000 - $14,000 = $0

How is government in the United States today different from government in ancient Athens? O The United States is a direct democracy. The United States allows citizens to vote. The United States is a republic. O The United States has a unicameral legislature.​

Answers

Answer:

C -  The United States is a republic.

Explanation:

I got it right on edge

The government in the United States is different from the government in ancient Athens because the United States government is a republic. Therefore, the option C holds true.

What is the significance of a republic governance?

A governance that follows the ideologies and principles of a republic government is the society where republic governance is said to be existing. The President is the most supreme authority in a republic governance.

All the characteristics given above are common between the government of the United States and the government of ancient Athens, except for one difference, which is the republic governance being carried in the government of the United States of America at present.

Therefore, the option C holds true and states regarding the significance of a republic governance.

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Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%, and the forecasted payout ratio is 45%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000.
Do not round intermediate calculations. Round your answer to the nearest dollar.

Answers

Answer: $‭412,600‬

Explanation:

AFN = Increase in assets - Increase in Liabilities - Addition to Retained Earnings

Increase in Assets

= 5,000,000 *  15%

= $750,000

Increase in Liabilities

Only use Accruals and Accounts Payable

= (450,000 + 450,000) * 15%

= $135,000

Additional to Retained Earnings

= After tax Profit

= 9,200,000 * 4%

= $368,000

Addition to retained earnings = 368,000 * ( 1 - payout ratio)

= 368,000 * ( 1 - 45%)

= $202,400‬

Additional Funds Needed (AFN) = 750,000 - 135,000 - 202,400

= $‭412,600

All the following are characteristics of a tradable market except a. Easy Access b. Parity c. Liquidity d. Fungibility e. Lack of a Trend

Answers

Answer:

e. Lack of a Trend

Explanation:

The tradable market is the market in which the trading is to be done

It involves various attributes like parity, liquidity, fungibility but does not involve the lacking of a trend

Therefore according to the given situation, the option e is correct as it does not come under the tradable market characteristics

Therefore option e is right and the same is to be considered

Which are possible employers in the Financial career cluster? Check ALL that apply.

A. private company
B. government
C. nonprofit organization
D. bank
E. stock market

Answers

The correct option is B and D.

What is the Finance Career Cluster?

The Finance Career Cluster prepares students for careers in financial and investment planning, banking, insurance, and business financial management. Finance career opportunities are available in every sector of the economy and require skills in organization, time management, customer service, and communication.

What are the four career pathways in finance?

The four career pathways in the finance cluster are banking and related services, business financial management, financial and investment planning, and insurance services.

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SY Manufacturers (SYM) is producing T-shirts in three colors: red, blue, and white. The monthly demand for each color is 3,487 units. Each shirt requires 0.75 pound of raw cotton that is imported from the Luft-Geshfet-Textile (LGT) Company in Brazil. The purchasing price per pound is $1.55 (paid only when the cotton arrives at SYM's facilities) and transportation cost by sea is $0.70 per pound. The traveling time from LGT’s facility in Brazil to the SYM facility in the United States is two weeks. The cost of placing a cotton order, by SYM, is $186 and the annual interest rate that SYM is facing is 32 percent of total cost per pound.
a. What is the optimal order quantity of cotton? (Round your answer to the nearest whole number.)
Optimal order quantity pounds
b. How frequently should the company order cotton? (Round your answer to 2 decimal places.)
Company orders once every months
c. Assuming that the first order is needed on 1-Jul, when should SYM place the order?
17-Jun
1-Jul
15-Jul
d. How many orders will SYM place during the next year? (Round your answer to 2 decimal places.)
Number of orders times
e. What is the resulting annual holding cost? (Round your answer to the nearest whole number.)
Annual holding cost $ per year
f. What is the resulting annual ordering cost?
Annual ordering cost $
g. If the annual interest cost is only 5 percent, how will it affect the annual number of orders, the optimal batch size, and the average inventory?

Answers

Answer: See explanation

Explanation:

a. The optimal order quantity can be calculated as:

= √2DS/H

where

D = 3 × 12 × 3487 × 0. 75

= 94149

Total cost incurred during purchase

= $1.55 + $0.70

= $2.25

Setup cost (S) = $186

Holding cost

= 32% × $2.25

= 0.32 × $2.25

= $0.72

Optimal order quantity

= √(2 × 94149 × 186)/0.72

= 6974.50

b. This will be calculated as:

Annual demand / EOQ

= 94149/6974.50

= 13.50

The company should order cotton 13.5 times per year.

c. Since the first order is needed on 1-July and lead time is 2 weeks, SYM should place the order before 17th June.

d. This will be:

= Annual demand / EOQ

= 94149/6974.50

= 13.5 orders

e. The resulting annual holding cost will be:

= 0.72 × (6974.50/2)

= 0.72 × 3487.25

= $2510.82

f. The resulting annual ordering will be:

= 94149/6974.50 × $186

= 13.5 × $186

= $2511

A check register shows a balance of $152.34. The bank statement shows that a check for $75.00 deposited by the account owner was drawn against insufficient funds and was returned. A charge for $2.00 was also deducted by the bank because of the return. Compute the adjusted cash balance of the check register.

Answers

Answer:

$150.34

Explanation:

The $75 check has been drawn against insufficient funds and has been returned so this check won't be included in the adjusted cash balance of the check register.

A charge for $2.0 will be deducted from the balance shown by the cash register above to calculate the adjusted cash balance of the check register.

Adjusted cash balance of the check register = $152.34 - $2

Adjusted cash balance of the check register = $150.34

Sunset Products manufactures skateboards. The following transactions occurred in March. Purchased $24,500 of materials on account. Issued $1,450 of supplies from the materials inventory. Purchased $25,900 of materials on account. Paid for the materials purchased in transaction (1) using cash. Issued $30,900 in direct materials to the production department. Incurred direct labor costs of $29,500, which were credited to Wages Payable. Paid $22,400 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop. Applied overhead on the basis of 120 percent of direct labor costs. Recognized depreciation on manufacturing property, plant, and equipment of $5,900.
The following balances appeared in the accounts of Sunset Products for March:
Beginning Ending
Materials Inventory $ 13,500 ?
Work-in-Process Inventory 24,750 ?
Finished Goods Inventory 97,500 $ 54,750
Cost of Goods Sold 120,000
Required:
a. Prepare journal entries to record the transactions. (If o entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Transactions General Journal Debit Credit
1.
2.
3.
4.
5.
6.
7.
8.
9.
b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
Materials Inventory
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Work in Progress Inventory
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Manufacturing Overhead Control
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Applied Manufacturing Overhead
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Accounts Payable
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Cash
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Wages Payable
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Accumulated Depreciation-Property, Plant, and Equipment
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Finished Goods Inventory
Beg. bal. ___________ ____________
Goods Completed ___________ ____________ Transfer to Cost of Goods Sold
End. bal. ___________ ____________
Cost of Goods Sold
Beg. bal. ___________ ____________
Finished Goods Inventory ___________ ____________
End. bal. ___________ ____________

Answers

Answer:

Sunset Products

a) Journal Entries:

Transactions General Journal      Debit       Credit

Materials Inventory                   $24,500

Accounts Payable                                       $24,500

To record the purchase of materials on account.

Manufacturing Overhead           $1,450

Materials Inventory                                       $1,450

To record the issue of supplies.

Materials Inventory                   $25,900

Accounts Payable                                       $25,900

To record the purchase of materials on account.

Accounts Payable                    $24,500

Cash Account                                            $24,500

To record the payment on account.

Work-in-Process Inventory      $30,900

Materials Inventory                                  $30,900

To record the issue of direct materials to the production department.

Work-in-Process Inventory     $29,500

Factory Wages                                         $29,500

To record direct labor costs to work in process.

Manufacturing Overhead       $22,400

Cash Account                                       $22,400

To record the payment for utilities and other expenses.

Work-in-Process Inventory    $35,400

Manufacturing Overhead                      $35,400

To apply overhead to work in process.

Manufacturing Overhead       $5,900

Depreciation Expense                            $5,900

To recognize depreciation on property, plant, and equipment.

Manufacturing overhead applied  $29,750

Manufacturing overhead                              $29,750

To transfer manufacturing overhead to the overhead applied account.

b) T-accounts:

Materials Inventory

Transaction Details                  Debit             Credit

Beginning balance                $ 13,500

Accounts Payable                    24,500

Manufacturing overhead                             $1,450

Accounts Payable                   25,900

Work-in-Process Inventory                         30,900

Ending balance                                          $31,550

Work-in-Process Inventory

Transaction Details                  Debit             Credit

Beginning balance                $24,750

Materials Inventory                 30,900

Factory Wages                        29,500

Manufacturing Overhead       35,400

Finished Goods Inventory                        $71,600

Ending balance                                           54,200

Finished Goods Inventory

Transaction Details                  Debit             Credit

Beginning balance                $97,500

Work-in-Process                      71,600

Cost of goods sold                                     $114,350

Ending balance                                             54,750

Cost of Goods Sold

Transaction Details                  Debit             Credit

Beginning balance                $120,000

Overapplied overhead                                 $5,650

Ending balance                                             114,350

Manufacturing Overhead Control Account

Transaction Details                  Debit             Credit

Materials Inventory                 $1,450

Cash Account                        22,400

Depreciation expense            5,900

Manufacturing overhead applied              $29,750

Manufacturing Overhead Applied

Transaction Details                  Debit             Credit

Work in Process                                          $35,400

Manufacturing overhead    $29,750

Overapplied overhead            5,650

Accounts Payable

Transaction Details                  Debit             Credit                              Materials Inventory                                      $24,500

Materials Inventory                                        25,900

Cash Account                       $24,500

Cash Account

Transaction Details                  Debit             Credit

Accounts Payable                                         $24,500

Manufacturing Overhead                               22,400

Explanation:

a) Data and Calculations:

Accounts balances of Sunset Products for March:

                                              Beginning     Ending

Materials Inventory                $ 13,500         ?

Work-in-Process Inventory       24,750        ?

Finished Goods Inventory        97,500       $ 54,750

Cost of Goods Sold                                       120,000

The adjusted trial balance of Windsor, Inc. shows these data pertaining to sales at the end of its fiscal year, October 31, 2022: Sales Revenue $908,100; Freight-Out $13,400; Sales Returns and Allowances $19,800; and Sales Discounts $14,500.

Required:
Prepare the sales section of the income statement.

Answers

Answer

                                     Windsor, Inc

                           Income Statement (Partial)

                           For the year October 31, 2022

Revenue

Sales                                                                      $908,100

Less: Sales return and allowance     $19,800

          Sales Discount                         $14,500

                                                                               $34,300

Net Sales                                                                $837,800

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