Answer:
a. Journal entries
1. Estimated revenues (Dr.) $100,000
Estimated other financing sources (Dr.) $50,000
Appropriations (Cr.) $125,000
Fund Balance Budget (Cr.) $25,000
2. Cash (Dr.) $50,000
General Fund Transfer (Cr.) $50,000
3. Property Tax receivable (Dr.) $100,000
Uncollectable Taxes (Cr.) $5,000
Collectable Property taxes revenue (Cr.) $95,000
4. Cash (Dr.) $60,000
Collectable property tax revenue (Cr.) $60,000
5. Cash (Dr.) $1,000
Revenue From Investments (Cr.) $1,000
6. Cash (Dr.) $30,000
Collectable property tax revenue (Cr.) $30,000
7. Interest expense (Dr.) $37,500
Interest Payable (Cr.) $37,500
8. Fiscal Agent fee (Dr.) $500
Cash (Cr.) $500
9. Cash (Dr.) $1,000
Investment Revenue (Cr.) $1,000
10. Interest Expense (Dr.) $37,500
Principal payment (Dr.) $50,000
[Fiscal Agent] Cash (Cr.) $87,500
11. Investment Revenue Receivable (Dr.) $500
Investment Revenue (Cr.) $500
Explanation:
b. Trial Balance
Particulars : Debit (Dr.) $ ; Credit (Cr.) $
Cash: 76,500 ; 0
Property Taxes receivable 10,000 ; 0
Allowance for uncollectable property 0 ; 5,000
Investments 40,000 ; 0
Investment revenue receivable 500 ; 0
Restricted fund balance 0 ; 100,000
Revenue - property taxes 0 ; 95,000
Revenue- Investments 0 ; 2,500
Transfer to general fund 0 ; 50,000
Interest Expense 75,000 ; 0
Bond principal 50,000 ; 0
Fiscal agent fees 500 ; 0
Estimated revenues 100,000 ; 0
Estimated other financing sources 50,000 ; 0
Appropriations 0 ; 125,000
Fund balance Budget 0 ; 25,000
Robert G. Flanders Jr., the state-appointed receiver for Central Falls, RI, said his city's declaration of bankruptcy had proved invaluable in helping it cut costs. Before the city declared bankruptcy, he said, he had found it impossible to wring meaningful concessions out of the city's unions and retirees, who were being asked to give up roughly half of the pensions they had earned as the city ran out of cash.
True or False
Answer: false
Explanation:
The alternative to the term of agreement is the declaration of bankruptcy, in which the cities can extract their pensions, it gives a much better alternative. It also increases the bargaining powers of the members of the city. It will help in extracting concessions from the government. It also increases the disagreement value of the city.
Match the below mention description with given terms. If there is no match then write "No match"
a. This is the worth of the leased asset after the lease period expires.
b. This is a partial refund offered to attract the buyer to purchase the vehicle.
c. This is the price of an asset being leased as specified in the lease agreement, which includes the negotiated cost of the vehicle and any applicable fees and taxes.
d. This is the advertised retail price listed on a particular vehicle for sale.
e. This is a contract which allows the lessee (consumer) to use the asset, such as car, land, services etc., in return for a specific amount paid periodically.
1. Rebate
2. Purchase option
3. Lease
4. Depreciation
5. Closed-end lease
Answer:
1. No match.
2. Rebate.
3. No match.
4. No match.
5. Lease.
Explanation:
1. No match: This is the worth of the leased asset after the lease period expires.
The worth of the leased asset after the lease period expires is known as Residual value.2. Rebate: This is a partial refund offered to attract the buyer to purchase the vehicle.
3. No match: This is the price of an asset being leased as specified in the lease agreement, which includes the negotiated cost of the vehicle and any applicable fees and taxes.
Capitalized cost refers to the price of an asset being leased as specified in the lease agreement, which includes the negotiated cost of the vehicle and any applicable fees and taxes.4. No match: This is the advertised retail price listed on a particular vehicle for sale.
Sticker price is the advertised retail price listed on a particular vehicle for sale.5. Lease: This is a contract which allows the lessee (consumer) to use the asset, such as car, land, services etc., in return for a specific amount paid periodically.
Swifty Company purchased equipment for $256,800 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 48,000 units and estimated working hours are 20,400. During 2020, Swifty uses the equipment for 600 hours and the equipment produces 1,000 units.
Required:
Compute depreciation expense under each of the following methods. Swifty is on a calendar-year basis ending December 31.
a. Straight-line method for 2020 $enter a dollar amount.
b. Activity method (units of output) for 2020 $enter a dollar amount.
c. Activity method (working hours) for 2020 $enter a dollar amount.
d. Sum-of-the-years'-digits method for 2022 $enter a dollar amount (e) Double-declining-balance method for 2021
Answer:
a. Straight line method.
Depreciation per annum = ($ 256,800 - $12,000 ) / 8 = $ 30,600.
Depreciation for 2020 = $ 30,600 * ( 3 /12 ) = $ 7,650.
b. Units of output
Depreciation per unit = ( $ 256,800 - $ 12,000 ) / 48,000 = $ 5.1
Depreciation for 2020 = 1,000 * $ 5.1 = $ 5,100.
c. Working hours.
Depreciation per hours = ( $ 256,800 - $ 12,000 ) / 20,400 = $ 12
Depreciation for 2020 = 600 * $ 12 = $ 7,200.
D. Sum of digits method
Sum of years = 8 ( 8 +1 ) / 2 = 36.
Year - 1 used ( 3 / 12 = 0.25)
Year-2 used ( 12 / 12 = 1 )
Remaining ( 8 - 1 - 0.25 = 6.75)
Depreciation for 2022 = ($ 256,800 - $ 12,000 ) * ( 6.75 / 36 )
Depreciation for 2022 = $ 45,900.
e. Double declining balance
Depreciation rate = 200 / 8 = 25 %.
Depreciation for 2020 = $256,800 * 25 % * (3 /12)
Depreciation for 2020 = $16,050.
Depreciation for 2021 = ( $256,800 - $ 16,050) * 25%
Depreciation for 2021 = $60,188.
Determining the true cash balance, starting with the unadjusted book balance
Nickleson Company had an unadjusted cash balance of $7,176 as of May 31. The company’s bank statement, also dated May 31, included a $67 NSF check written by one of Nickleson’s customers. There were $1,239 in outstanding checks and $255 in deposits in transit as of May 31. According to the bank statement, service charges were $35, and the bank collected an $600 note receivable for Nickleson. The bank statement also showed $14 of interest revenue earned by Nickleson.
Required:
Determine the true cash balance as of May 31. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)
True cash balance
Answer:
True Cash Balance $7,688
Explanation:
The computation of the true cash balance is shown below:
Unadjusted Cash Balance as of May 31 $7,176
Add: Interest Earned $14
Note Collected by Bank $600
Less: NSF check ($67)
Less Bank charges ($35)
True Cash Balance $7,688
Hence, the true cash balance is $7,688 and the same is to be considered
The following were selected from among the transactions completed by Babcock Company during November of the current year:
Nov. 3 Purchased merchandise on account from Moonlight Co., list price $85,000, trade discount 25%, terms FOB destination, 2/10, n/30.
Nov.4 Sold merchandise for cash, $37,680. The cost of the merchandise sold was $22,600.
Nov. 5 Purchased merchandise on account from Papoose Creek Co., $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice.
Nov. 6 Returned $13,500 ($18,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.
Nov. 8 Sold merchandise on account to Quinn Co., $15,600 with terms n/15. The cost of the merchandise sold was $9,400.
Nov. 13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
Nov. 14 Sold merchandise on VISA, $236,000. The cost of the merchandise sold was $140,000.
Nov. 15 Paid Papoose Creek Co. on account for purchase of November 5.
Nov. 23 Received cash on account from sale of November 8 to Quinn Co.
Nov. 24 Sold merchandise on account to Rabel Co., $56,900, terms 1/10, n/30. The cost of the merchandise sold was $34,000.
Nov. 28 Paid VISA service fee of $3,540.
Nov. 30 Paid Quinn Co. a cash refund of $6,000 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,300.
Journalize the transactions.
Answer:
Babcock Company
Journal Entries:
Nov. 3:
Debit Inventory $63,750
Credit Accounts Payable (Moonlight Co.) $63,750
To record the purchase of goods on account, terms FOB destination, 2/10, n/30.
Nov. 4:
Debit Cash Account $37,680
Credit Sales Revenue $37,680
To record the sale of goods for cash.
Debit Cost of goods sold $22,600
Credit Inventory $22,600
To record the cost of goods sold.
Nov. 5:
Debit Inventory $47,500
Credit Cash (For prepaid freight) $810
Credit Accounts Payable (Papoose Creek Co.) $46,690
To record the purchase of goods on account, terms FOB Shipping point, 2/10, n.30.
Nov. 6:
Debit Accounts Payable (Moonlight Co.) $13,500
Credit Inventory $13,500
To record the return of goods to Moonlight Co.
Nov. 8:
Debit Accounts Receivable (Quinn Co.) $15,600
Credit Sales Revenue $15,600
To record the sale of goods on account, terms n/15.
Debit Cost of goods sold $9,400
Credit Inventory $9,400
To record the cost of goods sold.
Nov. 13:
Debit Accounts Payable (Moonlight Co.) $50,250
Credit Cash Discount $1,005
Credit Cash Account $49,245
To record the payment for goods on account
Nov. 14:
Debit VISA Account $236,000
Credit Sales Revenue $236,000
To record the sale of goods on VISA.
Debit Cost of goods sold $140,000
Credit Inventory $140,000
To record the cost of goods sold.
Nov. 15:
Debit Accounts Payable (Papoose Creek Co.) $46,690
Credit Cash Discount $9,338
Credit Cash Account $37,353
To record the payment on account.
Nov. 23:
Debit Cash Account $15,600
Credit Accounts Receivable (Quinn Co.) $15,600
To record the receipt of cash on account.
Nov. 24:
Debit Accounts Receivable (Rable Co.) $56,900
Credit Sales Revenue $56,900
To record the sale of goods on account, terms 1/10, n/30.
Debit Cost of goods sold $34,000
Credit Inventory $34,000
To record the cost of goods sold.
Nov. 28:
Debit VISA Service Fee Expense $3,540
Credit Cash Account $3,540
To record the payment for VISA service.
Nov. 30:
Debit Inventory $3,300
Credit Cost of goods sold $3,300
To record the return of goods.
Debit Sales Returns $6,000
Credit Accounts Receivable $6,000
To record the return of goods by Quinn Co.
Debit Accounts Receivable $6,000
Credit Cash Account $6,000
To record the refund for returned goods.
Explanation:
Babcock Company uses Journals to record business transactions as they occur on a daily basis. They provide the needed guidance to ensure that the accounts involved in every business transaction are properly identified and entries are correctly recorded on the correct side of the accounts. Transactions are recorded following the ubiquitous accounting equation, the accrual concept, and matching principle of generally accepted accounting principles.
If there is a technological advance that lowers the cost of producing x-ray machines, then we can say that the
Answer:
C) quantity supplied of those machines will go up.
Explanation:
the options are missing:
A ) quantity demanded for those machines will increase.
B) demand for those machines will shift right.
C) quantity supplied of those machines will go up.
D) quantity supplied of those machines will decrease.
If production costs decrease, the supply curve will shift to the right, increasing the total quantity supplied while decreasing the sales price. Advances in technology increase productivity, which allows companies to supply a higher amount of goods at lower prices, which in turn increases the total quantity demanded for these goods.
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during the year but paid $750,000 in dividends to common shareholders. Throughout the year, the firm purchased $5.4 million of machinery that was needed for a new project. You have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. Finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 5% interest rate. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.
What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar, if necessary.
Answer:
200,000
Explanation:
A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. The cash flow statement measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses.
Cash flow from operating activities
Net Income 5,000,000
Less Depreciation (450,000)
Cashflow from operations 5,450,000
Cash flow from investing activities
Purchase of Fixed assets 5,400,,000
Cash flow from investing activities
Issue of long term debt 1,000,000
Dividend paid (750,000)
Cash generated from investing activities 250,000
Change in cash 300,000
Beginning balance 100,000
Closing balance 200,000
What part of your social media strategy is working against your goals?
The following information relates to Sheridan Company for the year 2022.
Retained earnings, January 1, 2022 $40,320
Advertising expense $1,510
Dividends during 2022 4,200
Rent expense 8,740
Service revenue 52,500
Utilities expense 2,600
Salaries and wages expense 23,520
Other comprehensive income (net of tax) 340
Required:
a. After analyzing the data, compute net income.
b. Prepare a comprehensive income statement for the year ending December 31, 2022.
Answer:
a. Computation of net income
Particulars Amount
Service revenue $52,500
Less: Expenses
Salaries and wages expenses ($23,520)
Utilities expense ($2,600)
Rent expense ($8,740)
Advertising expense ($1,510)
Net Income $16,130
b. Computation of comprehensive income statement
Particulars Amount
Net Income $16,130
Add: Other Comprehensive Income $380
Comprehensive Income $16,470
Note: Dividend will not be included as it forms part of Income statement
On December 1, year 1, Lester Company issued at 103, four hundred of its 9%, $1,000 bonds. Attached to each bond was one detachable stock warrant entitling the holder to purchase 10 shares of Lester's common stock. On December 1, year 1, the market value of the bonds, without the stock warrants, was 95, and the market value of each stock purchase warrant was $50. The amount of the proceeds from the issuance that should be accounted for as the initial carrying value of the bonds payable would be:______
a. $387,280.
b. $391,400.
c. $400,000.
d. $412,000.
Answer:
Lester Company
The amount of the proceeds from the issuance that should be accounted for as the initial carrying value of the bonds payable would be:______
c. $400,000.
Explanation:
Bonds issued at 103, 9% $1,000
Number of bonds issued = 400
Face value of bonds = $1,000 * 400 = $400,000
Proceeds from Bonds = $1,030 * 400 = $412,000
Premium from bonds issue = $12,000 ($412,000 - 400,000)
Carrying amount = $400,000
$400,000 is the bonds payable at maturity. The $12,000 bonds premium will be amortized with the interest expense. This implies that for the life of the bonds, part of the $12,000 will be deducted from the annual interest expense.
DS Unlimited has the following transactions during August.
August 6 Purchases 52 handheld game devices on account from GameGirl, Inc.,
for $110 each, terms 2/10, n/60.
August 7 Pays $310 to Sure Shipping for freight charges associated with the
August 6 purchase.
August 10 Returns to GameGirl seven game devices that were defective.
August 14 Pays the full amount due to GameGirl.
August 23 Sells 32 game devices purchased on August 6 for $130 each to
customers on account. The total cost of the 32 game devices sold is
$3,670.00.
Required:
Record the transactions of DS Unlimited, assuming the company uses a perpetual inventory system.
Answer:
Date Account Title Debit Credit
Aug-06 Inventory $5,720
(52 * $110)
Accounts Payable $5,720
Aug-07 Inventory $310
Cash $310
Aug-10 Accounts Payable $770
(7 * $110 )
Inventory $770
Aug-14 Accounts Payable $4,950
Inventory $99
Cash $4,851
Aug-23 Accounts Receivable $4,160
( 32*$130)
Sales revenue $4,160
Aug-23 Cost of goods sold $3,670
Inventory $ 3,670
Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is $4. In year 2, the quantity produced is 4 bars and the price is $5. In year 3, the quantity produced is 5 bars and the price is $6. Using year 1 as the base year, compute nominal GDP, real GDP, and the GDP deflator for each year.
Answer:
The answer is below
Explanation:
The nominal GDP is the market value of goods within a country adjusted for price change.
Nominal GDP for year 1 = Total market value of goods at current price = 3 bars × $4 = $12
Nominal GDP for year 2 = Total market value of goods at current price = 4 bars × $5 = $20
Nominal GDP for year 3 = Total market value of goods at current price = 5 bars × $6 = $30
The real GDP is the market value of goods within a country at current price.
Real GDP for year 1 = Total market value of goods at base year price = 3 bars × $4 = $12
Real GDP for year 2 = Total market value of goods at base year price = 4 bars × $4 = $16
Real GDP for year 3 = Total market value of goods at base year price = 5 bars × $4 = $20
GDP deflator is the ratio of nominal GDP to real GDP multiplied by 100.
GDP deflator in year 1 = (Nominal GDP in year 1 / Real GDP in year 1) × 100 = ($12/$12) × 100 = 100
GDP deflator in year 2 = (Nominal GDP in year 2 / Real GDP in year 2) × 100 = ($20/$16) × 125 = 100
GDP deflator in year 3 = (Nominal GDP in year 3 / Real GDP in year 3) × 100 = ($30/$20) × 100 = 150
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.
Answer:
The correct option is C) It should derecognize these receivables
Explanation:
Based on the information given the right and appropriate treatment of the ACCOUNT RECEIVABLES is to derecognized the receivable reason been that Alpha Inc does not have the right to either sell or pledge the receivables neither can he repurchased the receivable from the financial institution which is the bank despite the fact that the cash flows amount is been remitted to the bank at the end of every month.
Tom and Betsy, who are married filing jointly, reported a standard deduction of $24,000 on their 2018 tax return. They paid $500 to the state for income taxes in 2018. In 2019, they received a $125 refund of state taxes paid in 2018. What is the amount that Tom and Betsy need to report on their 2019 tax return?
Answer:
$0
Explanation:
Since Tom and Betsy didn't itemize their deductions in 2018 (they chose the standard deduction), they didn't include the state taxes in their tax filing. Since the state taxes were not used by Tom and Betsy to reduce their federal income taxes, then any refund will not be included in their current income. Only if state taxes are used to lower federal taxes, do taxpayers need to include any refund.
Rachel pushed very hard to go with Project A rather than Project B. There have been several cost overruns, the project is two weeks beyond its projected finish date, and the technology just isn't working out as planned. Rachel increases the funding for the third time and hires three new designers to help revamp the look of the product. Rachel is engaging in _____.
Answer: escalation of commitment
Explanation:
Escalation of commitment is when an individual or firm chooses an option which tends to be unsuccessful but the individual or firm still continues with the project because there has been investment which has already been made on it.
From the question, we are told that Rachel pushed very hard to go with Project A rather than Project B. From the information given, despite the fact that project A has been unsuccessful, Rachel continued with it and invested more in it rather than changing or leaving it for project B. This shows that Rachel is engaging in escalation of commitment.
Assume that on January 1, 2012, a parent company acquired a 70% interest in a subsidiary's voting common stock. On the date of acquisition, the fair value of the subsidiary's net assets equaled their reported book values except for machinery and equipment, which had a fair value of $480,000 and a reported book value of $250,000. The machinery and equipment had a 5 year remaining useful life and no salvage value. The following are the highly summarized pre-consolidation income statements of the parent and subsidiary for the year ended December 31 , 2013:
Income Statement Parent Subsidiary
Revenues $2,160,000 $288,000
Equity income 60,200
Expenses 1440000 144,000
Net income $780,200 144,000
For the year ended December 31, 2013, what amounts will be reported for (1) consolidated net income and (2) net income attributable to the non-controlling interest, respectively, in the parent's consolidated financial statements?
Answer: 1. $818,000
2. Check attachment
Explanation:
1. The amounts that will be reported for consolidated net income will be $818,000.
(2) Note that for the net income attributable to the non-controlling interest, respectively, in the parent's consolidated financial statements was calculated as:
= ($144,000 - $46,000) × 30%
= $98,000 × 0.3
= $29400
Kindly check the attachment for more analysis.
At the beginning of the month, the Forming Department of Martin Manufacturing had 17,000 units in inventory, 30% complete as to materials, and 15% complete as to conversion. During the month the department started 67,000 units and transferred 72,500 units to the next manufacturing department. At the end of the month, the department had 11,500 units in inventory, 85% complete as to materials and 60% complete as to conversion. If Martin Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Forming Department.
A) 82,275 materials; 79,400 conversion
B) 65,275 materials; 62,400 conversion
C) 64,450 materials; 69,550 conversion
D) 77,175 materials; 79,400 conversion
E) 77,175 materials; 76,850 conversion
Answer:
A) 82,275 materials; 79,400 conversion
Explanation:
Calculation of the Equivalent Units of Production with respect to Raw Materials and Conversion Costs
1. Raw Materials
Ending Work In Process (11,500 × 85%) = 9,775
Completed and Transferred (72,500 × 100%) = 72,500
Equivalent Units of Production with respect to Materials = 82,275
2. Conversion Costs
Ending Work In Process (11,500 × 60%) = 6,900
Completed and Transferred (72,500 × 100%) = 72,500
Equivalent Units of Production with respect to Materials = 79,400
According to the video, which activities are Executive Secretaries and Administrative Assistants likely to do? Check all that apply.
Answer:
1 2 3
Explanation:
I was right 2020
Answer: its 1,2,3 I answered it in the comment section. Because it didn't work.
Explanation: hope this helps.
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.
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
For liabilities use only the Accounts payable and Accruals.
= (450,000 + 450,000) * 15%
= $135,000
Additional to Retained Earnings
= After tax Profit * ( 1 - Payout ratio)
= (9,200,000 * 4%) * ( 1 - 45%)
= $202,400
= 750,000 - 135,000 - 202,400
= $412,600
On May 31, the Cash account of Teasel had a normal balance of $5,700. During May, the account was debited for a total of $12,900 and credited for a total of $12,200. What was the balance in the Cash account at the beginning of May
Answer:
$6,400
Explanation:
Cash Account
Debit :
Beginning Balance $5,700
Receipts $12,900
Totals $18,600
Credit :
Payments $12,200
Ending Balance (Balancing figure) $6,400
Totals $18,600
The following data pertain to the Oneida Restaurant Supply Company for the year just ended.
Budgeted sales revenue $205,000
Actual manufacturing overhead 336,000
Budgeted machine hours (based on practical capacity) 8,000
Budgeted direct-labor hours (based on practical capacity) 20,000
Budgeted direct-labor rate $14
Budgeted manufacturing overhead $364,000
Actual machine hours 11,000
Actual direct-labor hours 18,000
Actual direct-labor rate $15
Required:
a. Compute the firm's predetermined overhead rate for the year using each of the following common cost drivers: (a) machine hours, (b) direct-labor hours, and (c) direct-labor dollars.
b. Calculate the over-applied or under-applied overhead for the year using each of the cost drivers listed above.
Answer:
Predetermined overhead rate = Budgeted manufacturing rate/Allocation base
a. Machine hours
= 364,000 / 8,000
= $45.5
Predetermined overhead rate = $45.5
Direct-labor hours
= 364,000 / 20,000
= $18.2
Predetermined overhead rate = $18.2
Direct-labor dollars
Budgeted labor hours = 20,000 * $14 = $280,000
Predetermined overhead rate = 364,000 / $280,000 = $1.3
b. Machine hours
Manufacturing overhead applied = Actual machine hours * Predetermined overhead rate = $45.5 * 11,000 = $500,500
Over/Under applied overhead = 336,000 - 500,500
Over-applied overhead = $164,500
Direct-labor hours
Manufacturing overhead applied = Actual direct-labor hours * Predetermined overhead rate = $18.2 * 18,000 = $327,600
Over/Under applied overhead = 336,000 - 327,600
Under-applied overhead = $8400
Direct-labor dollars
Manufacturing overhead applied = Actual direct-labor hours * Actual direct-labor rate * Predetermined overhead rate
Manufacturing overhead applied = 18,000 * $15 * $1.3 = 351,000
Over/Under applied overhead = 336,000 - 351,000
Over-applied overhead = $15,000
we know that
Predetermined overhead rate = Budgeted manufacturing rate ÷ Allocation base
a. Machine hours
= 364,000 ÷8,000
= $45.5
Predetermined overhead rate = $45.5
Direct-labor hours
= 364,000 ÷ 20,000
= $18.2
Predetermined overhead rate = $18.2
Direct-labor dollars
Budgeted labor hours = 20,000 × $14 = $280,000
Predetermined overhead rate = 364,000 ÷ $280,000 = $1.3
b. Machine hours
Manufacturing overhead applied = Actual machine hours × Predetermined overhead rate
= $45.5 × 11,000
= $500,500
So,
Over/Under applied overhead = 336,000 - 500,500
Over-applied overhead = $164,500
Direct-labor hours
Manufacturing overhead applied = Actual direct-labor hours × Predetermined overhead rate
= $18.2 × 18,000
= $327,600
Over/Under applied overhead = 336,000 - 327,600
Under-applied overhead = $8400
Direct-labor dollars
Manufacturing overhead applied = Actual direct-labor hours × Actual direct-labor rate × Predetermined overhead rate
= 18,000 × $15 × $1.3
= 351,000
Over/Under applied overhead = 336,000 - 351,000
Over-applied overhead = $15,000
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Composing powerful paragraphs is essential when striving for clear communication. Familiarize yourself with basic paragraph elements, various paragraph patterns, and strategies for building coherence.
Use the following paragraphs to answer the questions that follow.
Paragraph A: Last week, three of our Xcite executives closed a lucrative merger deal with Editionplus. The merger will add more than 500 accounts to our business and will increase our profits by 39 percent in less than a year. Additionally, the executives met with several Editionplus product designers and agreed on three new computer prototypes that we will produce during the next five years. This means we will expand our business to both Los Angeles and Las Vegas.
Paragraph B: Employee reaction has been mixed about our recent plans to expand to Las Vegas and Los Angeles. Many Xcite employees are concerned that the Los Angeles site will not have the same relaxed corporate environment as the current site. However, this is not the case: The relaxed corporate environment at the San Francisco site will be replicated in Los Angeles. The culture we have developed works for the company and our employees, and we don't plan to change it. Human resources executives are already interviewing San Francisco employees so they can capture and replicate the culture with ease.
Paragraph C: The leadership at the Xcite San Francisco site has been phenomenal during the last ten years. Everyone in senior-level positions has worked his or her way up the corporate ladder and has contributed greatly to the company's success. This team has increased our profits by 6 percent, expanded office space, hired additional IT support, and strengthened our IT infrastructure. These are just a few of this leadership team's many accomplishments. In the next two months, a new leadership team will be formed for the Los Angeles site. This team will consist of transferred employees from the San Francisco site. We will be offering many of you a chance to be part of this move. Additional training will be required for all who are transferring, and moving costs will not be covered. Xcite looks forward to opening another location with excellent products, high profits, and 100 percent employee and customer satisfaction.
Required:
1. Which paragraph or paragraphs use the pivoting approach?
a. A, C
b. B
c. A
2. What is the main idea of Paragraph A?
Answer:
1. Which paragraph or paragraphs use the pivoting approach?
b. BPivoting writing uses the words even though, however, but, in spite off, etc., to pivot back to the main idea of the paragraph. In paragraph B, it starts talking about employee concerns about a bad corporate environment in the new offices (in Los Angeles or Las Vegas), and then it assures that this will not happen. It affirms that the company is taking care of the issue and the corporate environment in LA will be the same as in San Francisco.
2. What is the main idea of Paragraph A?
If informs the reader that the company just closed a merger with Editionplus and that soon profits should increase, new products will developed and the company will grow.
What are the five steps to understanding how foreign born labor impacts native born workers?
Answer:
HOW MUCH DO FOREIGN - BORN WORKERS EARN?
Foreign-born individuals typically earn less than native-born individuals — on average, 83 cents for every dollar earned by their native-born counterparts. That disparity generally holds true across age groups and education levels, with one significant exception. Foreign-born individuals with a bachelor’s degree or more had median weekly earnings of $1,362 per week in 2018, about $53 per week higher than the median for the native-born population with that level of education.
Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 36,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $82,100 consisted of $58,000 of direct materials costs and $24,100 of conversion costs.
During the month, the forming department started 520,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 85% complete as to materials and 35% complete as to conversion. Units completed in the forming department are transferred to the painting department. Cost information for the forming department is as follows:
Beginning work in process inventory $82,100
Direct materials added during the month 1,942,930
Conversion added during the month 1,359,730
1A. Calculate the equivalent units of production for the forming department.
1B. Calculate the costs per equivalent unit of production for the forming department.
1C. Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory.
Answer:
beginning WIP 36,000
$58,000 of direct materials costs
$24,100 of conversion costs
units started 520,000
units finished 516,000
materials added during the month $1,942,930
conversion added during the month $1,359,730
ending WIP 40,000
materials 85% complete, EU = 34,000
conversion 35%, EU = 14,000
total equivalent units
materials = 516,000 + 34,000 = 550,000
conversion = 516,000 + 14,000 = 530,000
cost per equivalent unit
materials = ($58,000 + $1,942,930) / 550,000 = $3.63805
conversion = ($24,100 + $1,359,730) / 530,000 = $2.611
total = $6.24905
costs assigned to
units transferred out = $6.24905 x 516,000 = $3,224,511
ending WIP = (34,000 x $3.63805) + (14,000 x $2.611) = $160,249
A company has net working capital of $1,996. If all its current assets were liquidated, the company would receive $5,923. What are the company's current liabilities?
Answer:Current Liabilities= $3,927
Explanation:
Net working capital= Current assets-current liabilities
Current Liabilities = Current assets - Net working capital
= $5,923- $1,996
=$3,927
Current liabilities are short term liabilities , debt or obligation of a business which should be due within one year so as to be paid to creditors.
Two methods can be used for producing solar panels for electric power generation. Method 1 will have an initial cost of $550,000, an annual operating cost of $160,000 per year, and $125,000 salvage value after its three-year life. Method 2 will cost $830,000 with an annual operating cost of $120,000. and a $240,000 salvage value after its five-year life. The company has asked you to determine which method is better, but it Wants the analysis done over a three-year planning period. The salvage value of Method 2 will be 35% higher after three years than it is after five years. If the company's minimum attractive rate of return is 10% per year, which method should the company select?
Answer:
the company should choose method 1
Explanation:
Method 1 Method 2
Initial outlay $550,000 $830,000
operating costs (years 1,2,3) $160,000 $120,000
salvage value $125,000 $324,000
we must determine which alternative has the lowest present value:
method 1 = $550,000 + $160,000/1.1 + $160,000/1.1² + $160,000/1.1³ - $125,000/1.1³ = $550,000 + $145,455 + $132,231 + $120,210 - $93,914 = $853,982
method 2 = $830,000 + $120,000/1.1 + $120,000/1.1² + $120,000/1.1³ - $324,000/1.1³ = $830,000 + $109,091 + $99,174 + $90,158 - $243,426 = $884,996
Performance Obligation Fulfilled Over Time Philbrick Company signed a three-year contract to develop custom sales training materials and provide training to the employees of Elliot Company. The contract price is $1,100 per employee and the number of employees to be trained is 500. Philbrick can send a bill to Elliot at the end of every training session. Once developed, the custom training materials will belong to Elliot Company, but Philbrick does not consider them to be a separate performance obligation. The expected number to be trained in each year and the expected development and training costs follow. Number of employees Development and training costs incurred
2019
150 $
55,000
2020
250
70,000
2021
100
20,000
Total 500 $145,000
For each year, compute the revenue, expense, and gross profit reported assuming revenue is recognized over time using... 1. the number of employees trained as a measure of the value provided to the customer. Note: Round answers to the nearest dollar.
Answer:
Philbrick Company
Performance Obligation Fulfilled Over Time
Computation of the revenue, expense, and gross profit:
Year Number of Development Sales Gross
Employees /Training Cost Value Profit
2019 150 $ 55,000 $165,000 $110,000
2020 250 70,000 275,000 205,000
2021 100 20,000 110,000 90,000
Total 500 $145,000 $550,000 $405,000
Explanation:
a) Data and Calculations:
Contract price = $1,100 per employee
No. of employees to be trained = 500
Total contract value = $550,000 ($1,100 * 500)
Expected Development and Training Costs:
Year Number of Development
Employees /Training Cost
2019 150 $ 55,000
2020 250 70,000
2021 100 20,000
Total 500 $145,000
1. Stockholders invest $90,000 cash to start the business.
2. Purchased three digital copy machines for $400,000, paying $118,000 cash and signing a 5-year, 6% note for the remainder.
3. Purchased $5,500 paper supplies on credit.
4. Cash received for photocopy services amounted to $8,400.
5. Paid $500 cash for radio advertising.
6. Paid $800 on account for paper supplies purchased in transaction 3.
7. Dividends of $1,600 were paid to stockholders.
8. Paid $1,200 cash for rent for the current month.
9. Received $2,200 cash advance from a customer for future copying.
10. Billed a customer for $500 for photocopy services completed.
No. Account Titles and Descriptions Debit Credit
1.
2.
3.
4.
5.
Answer:
1. Stockholders invest $90,000 cash to start the business.
Dr Cash 90,000
Cr Common stock 90,000
2. Purchased three digital copy machines for $400,000, paying $118,000 cash and signing a 5-year, 6% note for the remainder.
Dr Copy machines 400,000
Cr Cash 118,000*
Cr Notes payable 282,000
*Where did they get the extra cash from?
3. Purchased $5,500 paper supplies on credit.
Dr Supplies 5,500
Cr Accounts payable 5,500
4. Cash received for photocopy services amounted to $8,400.
Dr Cash 8,400
Cr Service revenue 8,400
5. Paid $500 cash for radio advertising.
Dr Advertising expense 500
Cr Cash 500
6. Paid $800 on account for paper supplies purchased in transaction 3.
Dr Accounts payable 800
Cr Cash 800
7. Dividends of $1,600 were paid to stockholders.
Dr Dividends 1,600
Cr Cash 1,600
8. Paid $1,200 cash for rent for the current month.
Dr Rent expense 1,200
Cr Cash 1,200
9. Received $2,200 cash advance from a customer for future copying.
Dr Cash 2,200
Cr Unearned service revenue 2,200
10. Billed a customer for $500 for photocopy services completed.
Dr Accounts receivable 500
Cr Service revenue 500
If a specific economy has extra capital resources available,
be able to produce top-quality goods and services.
continually look to expand and invest.
be able to produce more goods and services needed and wanted by society.
have additional labor available to focus on production.
this
Answer: A
Be able to produce top-quality goods and services
If a specific economy has extra capital resources available, be able to produce more goods and services needed and wanted by society.
What is an economy?An economy is a region where products and services are produced, distributed, traded, and consumed. It is generally understood to be a social domain that places an emphasis on the behaviors, discourses, and tangible manifestations connected to the creation, utilization, and management of finite resources.
One's culture, values, education, technological advancement, history, social organization, political structure, legal system, and natural resources are all major determinants of an economy's processes.
These elements determine the parameters and conditions under which an economy operates in addition to providing background and content. In other words, the economic realm is a social domain made up of connected human behaviors and exchanges that cannot exist independently.
Individuals, companies, organizations, or governments all qualify as economic actors. When two persons or organizations agree on the value or price of the good or service being exchanged, which is typically stated in a particular currency, an economic transaction takes place.
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The following incorrect income statement was prepared by the accountant of the Axel Corporation:
AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains:
Sales revenue $660,000
Interest revenue 39,000
Gain on sale of investments 86,000
Total revenues and gains 785,000
Expenses and losses:
Cost of goods sold $360,000
Selling expense 66,000
Administrative expense 86,000
Interest expense 23,000
Restructuring costs 62,000
Income tax expense 47,000
Total expenses and losses 644,000
Net Income $141,000
Earnings per share $1.41
Required:
Prepare a multiple-step income statement for 2018 applying generally accepted accounting principles. The income tax rate is 40%.
Answer:
AXEL CORPORATION
Income Statement For the Year Ended December 31, 2021
Particulars Amount Amount
Sales Revenue $6,60,000
Less : Cost of Goods Sold $360,000
Gross Profit $300,000
Less: Operating Expenses
Selling Expenses $66,000
Administrative Expenses $86,000 $152,000
Operating Income $148,000
Non- Operating and others
Restructuring cost -$62,000
Interest Expenses -$23,000
Interest Revenue $39,000
Gain on sale of investment $86,000 $40,000
Net Income before Taxes $188,000
Less : Income Tax Expenses $47,000
Net income after Taxes $141,000
The Earning Per Shares remains $1.41