Answer:
$2,800 financial advantage
Explanation:
We consider incremental costs and revenues in our analysis for the effects of accepting the special order.
Analysis of effects of accepting the special order :
Sales - Incremental (600 units x $26) $15,600
Less Incremental Costs :
Direct materials ($9 x 600 units) ($5,400)
Direct labor ($4 x 600 units) ($2,400)
Variable manufacturing overhead ($2 x 600 units) ($1,200)
Specialized materials ($3 x 600 units) ($1,800)
Machine Cost ($2,000)
Financial Advantage / (Disadvantage) $2,800
therefore,
the financial advantage of accepting the special order is $2,800
Paul had a great job as a bank executive. Unfortunately, his bank came under scrutiny by federal regulators, and although Paul had done nothing illegal, he ended up being fired. Unfortunately for Paul, he had a number of debts. Among his assets were a house worth $250,000 on which he owed $150,000 to a bank that held a security interest; three vehicles; an expensive watch worth $5,000; and $120,000 in an Individual Retirement Account (IRA). He owed $900 per month in child support to his ex-wife Suzy and was behind on payments in the amount of $1,800. He also owed $2,000 in wages consisting of four months of back pay to Bob who took care of Paul's landscaping needs and swimming pool care. All creditors angrily demanded payment from liquidation of Paul's assets. Paul, on the other hand, claims that he needs all the above-mentioned assets and that he should not have to give up anything. Only federal bankruptcy exemptions apply to Paul's case. Which of the following is true regarding Paul's claim to his Individual Retirement Account (IRA)?
a. The IRA is entirely exempt from the claims of creditors.
b. The IRA is entirely subject to the claims of creditors.
c. The IRA is exempt up to $1,000.
d. The IRA is exempt up to $10,000.
e. The IRA is exempt up to $100,000.
Answer:
The answer is "Choice a".
Explanation:
If anyone knows about businesses can you help me please
Answer:
I believe it is team standard
Explanation:
One way a group of people can become an effective team is to create team standards. These are essentially the rules that govern how the team works and behaves. To be effective, the team standards need to be set and agreed to by the team members and not dictated to them by a boss or manager.
According to Orlando:_____.
(a) workers have obligations to, but are owed consideration by, their employers.
(b) workers are subject to the legitimate expectations of their employers but employers are not subject to any legitimate expectations of workers.
(c) all of the above.
(d) none of the above.
Answer:
According to Orlando:_____.
(a) workers have obligations to, but are owed consideration by, their employers.
Explanation:
Workers are employed by their employers to carry out their obligations as per instruction. They owe the duty of reasonable care to their employers. They are supposed to be honest in their dealings with their employers. Workers are also required to take safety and health measures to protect themselves and others from harm at the workplace. For all these obligations, the employers of labor must pay adequate consideration to their workers and ensure their safety at work.
Roy is looking to buy a new HDTV set. He knows from friends that LCD set screens reflect less light than plasma set screens, but that LCD sets are also more subject to blurring than plasma sets. This is an example of the ________ component of his attitude toward HDTVs.
A) conative.
B) objective.
C) cognitive.
D) affective.
E) situational.
Answer:
A) conative.
Explanation:
Conative behavior is a component of the attitude that we pertain or we behave at some point. The conative component or the behavior component is the way the attitude that we influence on how we behave or act. It involves the person's knowledge or belief about the attitude object.
In the context, Roy wishes to buy a HDTV set even though he knows that the screen of the LCD reflects less amount of light and it is also subjected to more of blurring the picture when compared to the plasma TVs.
Thus it show the conative component of the attitude of Roy towards HDTVs.
The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:
2016:
July 1 Issued $75,100,000 of 20-year, 8% callable bonds dated July 1, 2016, at a market (effective) rate of 10%, receiving cash of $62,213,861. Interest is payable semiannually on December 31 and June 30.
Oct. 1 Borrowed $440,000 by issuing a six-year, 7% installment note to Nicks Bank. The note requires annual payments of $92,310, with the first payment occurring on September 30, 2017.
Dec. 31 Accrued $7,700 of interest on the installment note. The interest is payable on the date of the next installment note payment.
31 Paid the semiannual interest on the bonds. The bond discount amortization of $322,153 is combined with the semiannual interest payment.
31 Closed the interest expense account.
2017:
June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $322,153 is combined with the semiannual interest payment.
Sept. 30 Paid the annual payment on the note, which consisted of interest of $30,800 and principal of $61,510.
Dec. 31 Accrued $6,624 of interest on the installment note. The interest is payable on the date of the next installment note payment.
31 Paid the semiannual interest on the bonds. The bond discount amortization of $322,153 is combined with the semiannual interest payment.
31 Closed the interest expense account.
2018:
June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $11,597,527 after payment of interest and amortization of discount have been recorded. (Record the redemption only.)
Sept. 30 Paid the second annual payment on the note, which consisted of interest of $26,494 and principal of $65,816.
Required:
a. Journalize the entries to record the foregoing transactions. Round all amounts to the nearest dollar. Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles.
b. Indicate the amount of the interest expense in (a) 2016 and (b) 2017.
c. Determine the carrying amount of the bonds as of December 31, 2017.
Answer:
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Suppose Blue Hamster Manufacturing Inc, is evaluation a proposed capital budgeting project (project alpha) that will require an initial investment of $500,000. The project is expected to generate the following net cash flows:
Year Cash Flow
Year 1 $325,000
Year 2 $425,000
Year 3 $450,000
Year 4 $400,000
Blue Hamster Manufacturing Inc’s weighted average cost of the capital is 10%, and project alpha has the same risk as the firm’s average project. Based on the cash flows, what is project Alpha’s net present value (NPV)?
a. $871,690
b. $1,157,991
c. $1,182,991
d. $757,991
Answer:
d. $757,991.26
Explanation:
Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
= (325,000/1.10) + (425,000/1.10^2) + (450,000/1.10^3) + (400,000/1.10^4)
= $1,257,991.25743
NPV = Present value of inflows - Present value of outflows
NPV = $1,257,991.25743 - $500,000
NPV = 757991.25743
NPV = $757,991.26
Patriot Company produces flak jackets for military use. The company recently adopted a standard costing system and set the following standards for materials per unit of product:
Materials (Ballistic Nylon): 8 yards
$4 per yard During the most recent month, Patriot produced 5,500 units of flak jackets. Actual materials purchased and used were 40,000 yards at the price of $4.20 per yard. Based on the information above, answer the following questions: L 5 points]
(1) What was the total material costs incurred by the company during the month (i.e, actual costs of materials)?
(2) What should be the total material costs allowed for the production during the month (i.e., standard costs of materials)?
(3) What is the total variance for materials to be reported during the month? Is it favorable (F) or unfavorable (U)? materials price and quantity (usage) variances below. Indicate whether each variance is favorable (F or unfavorable (U
(4) Using either the template (columnar) approach or the formula approach, compute direct
Answer:
Patriot Company
1. The total material costs incurred by the company during the month (actual costs of materials) = $168,000
2. The total material costs allowed for the production during the month (i.e., standard costs of materials) = $176,000
3. The total variance for materials to be reported during the month is $8,000 F.
4. The Direct material price variance is = $8,000 U
5. The Direct material quantity variance is = $16,000 F
Explanation:
a) Data and Calculations:
Standard for materials per unit:
Materials (Ballistic Nylon): 8 yards $4 per yard = $32 per unit
Production in the most recent month = 5,500 units
Actual materials purchased and used = 40,000 yards at $4.20 per yard
1. The total material costs incurred by the company during the month (actual costs of materials) = $168,000 (40,000 * $4.20)
2. The total material costs allowed for the production during the month (i.e., standard costs of materials) = $176,000 (8 * 5,500 * $4.00)
3. The total variance for materials to be reported during the month = $8,000. It is favorable (F)
4. Direct materials price variance = (Standard price - Actual price) * Actual quantity
= ($4.00 - $4.20) * 40,000
= $8,000 U
5. Direct materials quantity variance = Standard quantity - Actual quantity * Standard price
= (44,000 - 40,000) * $4
= 4,000 * $4
= $16,000 F
Nancy and Joan bought a small farm for $300,000 under an installment land contract with a $50,000 down payment. They will pay interest only at 6% for five years when the remaining principal balance becomes due. How much interest will they pay over the life of the contract?
Answer:
75,000
Explanation:
300,000-50,000 = 250000*6%*5
In current business publications, find examples of firms whose strategies to increase profits focus primarily on generating more revenue. Compare these cases with firms that are trying to cut costs to increase profits. In your initial post, include a summary of these firms and how the different strategies have been successful or unsuccessful.
Having a nice size profit margin is the goal for most companies. In order to make this happen there has to be a plan/strategy that is carefully thought out and implemented. You want to take your time and make sure things are done correctly and in a way that it is profitable and not detrimental to your company at the same time. One good example of this act comes from McDonalds. One McDonalds franchise in New York increased the price of their Big Mac from $5.98 to $6.28 currently to increase revenue. Prior to this there was an anual increase that took place. "The Golden Arches' pricing in the U.S. Rose 2% year over year in the first quarter, which was still less than the consumer Price Index's overall".
On the other end of the spectrum we have companies like Apple. Apple fired 1,600 full time employees from retail stores to increase their profit margin. "The retail segment reported operating income of $308 million during the second quarter of 2009 down from #334 million....". In cutting down on those full time positions they were able to increase their profits by paying less full time salaries to employees. "Revenue increase 8.7% to 8.16 Billion, which is more than 7.96 billion expected...". I do not feel that this is the best way to go about getting results. A merger of the two would be effective. Gradually increasing sales prices and not eliminating so many positions at once or merging positions even would be effective. You have to take into account that less employees mean more work for the workers that are left, which could leave them in a stressful work environment. In turn could mean customer service quality decreases drastically. Things have to be looked at on both sides of the spectrum.
Answer:
Following are the responses to these question.
Explanation:
The goal of most businesses is to achieve the optimum gross profit. Moreover, to achieve this, a well-designed plan or plan deserves to be placed in place. The management needs to ensure that things are done properly and so that they are successful at the same period and therefore do not harm the business. That fast-food giant Mcdonald's is a good example of this. One of McDonald's' franchises in York City recently increased its Big Mac sales from $5,98 to $6,28. Before all this, Macdonalds would have an annual boost.
"During first 4th quarter, the price of Eiffel Tower in the U.s. Increased two percent year on year was still less than price index"
They need businesses like Apple at another end of the continuum. Apple also fired 1,600 filled retail employees to increase its gross profit. "Operating revenue inside the second quarter of 2009 were down $308 million to $334 million...." We were able to boost their earnings by cutting such full-time jobs. "To 8.16 billion u.s. dollars, which is over 7.96 percent estimated, the economy increased by 8.7%.
It doesn't seem to be the right way of achieving performance. It'd be effective to mix the two. Gradual sale rates are an optimal option, not cutting too many roles at once or combination. It is borne in mind that a decrease in the number of jobs is much more work to left workers who can keep them in a demanding working environment. This could mean a dramatic decline in customer support efficiency. Stuff on all sides of the spectrum must be looked at.
In sampling for attributes (i.e. test of controls) the determination of sample size is a function of:___________
a. risk of assessing control risk too low
b. tolerable rate
c. estimated population deviation rate.
Answer:
b. tolerable rate
Explanation:
A sample is defined as a representative part of a population that is used in a study to replicate the characteristics of the population.
For a sample to be any good it must effectively reflect the characteristics of the population.
When sampling for attributes there are three determinants of sample size that is put into consideration:
- risk of incorrect acceptance
- tolerable rate or error
- expected error
Tolerable rate is the largest deviation or variance that can be acceptable in a sample and this reflects on reliability of specific controls.
It is the allowable deviation in population that still allows original plan to be executed
How do family environment influence moral development during adolescence?
Answer:
Explanation:
In the family environment, children come to consider their actions not only in terms of justice but also in terms of emotional needs. Children learn the value of social support from their families and develop motivations based on kindness, generosity, and empathy, rather than on only personal needs and desires.
Answer:
In the family environment, children come to consider their actions not only in terms of justice but also in terms of emotional needs. Children learn the value of social support from their families and develop motivations based on kindness, generosity, and empathy, rather than on only personal needs and desires.
Explanation:
Which of the following is not true of a mass customization process strategy?
Answer:
phone
Explanation:
pormula sa pagsukat ng
“Pamamaraan batay sa gastos”
“Pamamaraan batay sa kita”
Pamamaraan batay sa pinagmulang industriya”
Tatlong Pamamaraan ng Pagsukat ng Pambansang Kita o Gross National Income
Pamamaraan Batay sa Gastos (Expenditure Approach)
Pamamaraan Batay sa Gastos (Expenditure Approach) Ang ekonomiya ng bansa ay may apat na sektor ito ay ang sambahayan, pamahalaan, bahay-kalakal, at panlabas na sektor. Ang bawat sektor na ito ay may pinagkakagastusan at ito ay ang Gastusing personal (C), Gastusin ng mga namumuhunan (I), Gastusin ng pamahalaan (G), Gastusin ng panlabas na sektor (X – M), Statistical discrepancy (SD, at Net Factor Income from Abroad (NFIFA). Ginagamit ang : GNI = C + I + G + (X – M) + SD + NFIFA bilang pormula sa pagkuwenta ng Gross National Income.
Pamamaraan Batay sa Kita (Income Approach)Ito ay mula sa mga sahod ng mga manggagawa, buwis, kita ng mga korporasyon, at iba pa.
Masusukat ang Gross Domestic Product sa pagsasamasama ng kabuuang halaga ng produksiyon; ang sektor ng industriya, agrikultura, at serbisyo ang pangunahin sa bahaging ito.
A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $55 per unit (100 bottles), including fixed costs of $12 per unit. A proposal is offered to purchase small bottles from an outside source for $36 per unit, plus $3 per unit for freight.
Required:
Prepare a differential analysis dated January 25 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles, assuming fixed costs are unaffected by the decision.
Answer:
Differential Analysis on January 25:
Make Buy Difference
Alternative 1 Alternative 2
Avoidable costs $43 $39 $4
per unit of (100 bottles)
Explanation:
a) Data and Calculations:
Variable manufacturing cost per unit = $43 ($55 - $12)
Fixed manufacturing cost per unit = 12
Total manufacturing cost per unit = $55
Outside supplier's offered price per unit = $36
Freight per unit for outside supply = 3
Total outside supply cost per unit = $39
b) There is an additional avoidable cost of $4 per unit to make the bottles. From a financial point of view, it will be cost-effective to buy the bottles from the outside supplier. If the company finds an alternative use of the production facilities, the cost difference will increase.
Purchasing power parity does not hold in the short to medium run because:____.
Answer:
some goods aren't internationally traded
Explanation:
Purchasing power parity is most popularly known as the PPP. It may be defined as the measure of the prices of the various countries which makes use of the price of some specific goods in order to compare the absolute purchasing capability or power for the countries' currencies.
It is used to measure and compare prices at different locations.
The purchasing power does not hold good in the short to the medium run as different countries produces different goods and as such all the goods are not internally traded all over the locations or countries.
A difference between periodic review and continuous review inventory systems is:________
a. Periodic review is more expensive than continuous review
b. Continuous review usually required more safety stock than periodic review
c. In one system, time triggers orders, in the other, quantity triggers orders
d. Periodic review requires real-time monitoring systems
Answer:
The correct answer is the option C: In one system, time triggers orders, in the other, quantity triggers orders.
Explanation:
On the one hand, the term known as "Periodic review inventory system" refers to a type of inventory system that mainly is focus on the time that the order takes, therefore that it is said that the system is triggered by time because the orders are taken at the same time every period.
On the other hand, the "Continuous review inventory system" actually is triggered by the quantity of orders that take place every period. Therefore that this system keeps track of the exact amount every period and when that number goes down the system automatically order more of the same amount.
Tickets Today contracts with the producer of Riverdance to sell tickets online. Tickets Today charges each customer a fee of $6 per ticket and receives $15 per ticket from the producer. Tickets Today does not take control of the ticket inventory. Average ticket price for the event is $150. How much revenue should Tickets Today recognize for each Riverdance ticket sold?
a. $6 because the $15 from the producer is similar to a negative cost of goods sold
b. $150 because the $135 is cost of goods sold paid to the Riverdance producer
c. $21 because both the fee from the customer and the producer are earned
d. $156 because the $135 is cost of goods sold paid to the Riverdance producer
e. None of the above
Butler Corporation is considering the purchase of new equipment costing $30,000. The projected annual after-tax net income from the equipment is $1,200, after deducting $10,000 for depreciation. The revenue is to be received at the end of each year. The machine has a useful life of 3 years and no salvage value. Butler requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows:
Periods 10 Percent
1 0.9091
2 1.7355
3 2.4869
4 3.1699
Required:
What is the net present value of the machine?
Answer:
($3,100)
Explanation:
Net cash flows each year = Projected annual after-tax net income + Depreciation
Net cash flows each year = $1,200 + $10,000
Net cash flows each year = $11,200 each year
Total value of inflows in 3 years = Net cash flows each year * Annuity factor of (10%,3 years)
Total value of inflows in 3 years = $11,200 * 2.4018
Total value of inflows in 3 years = $26,900
Net Present value = Present value of inflows - Cash outflow
Net Present value = $26,900 - $30,000
Net Present value = ($3,100)
So, tnet present value of the machine is ($3,100).
Over a four-year period, LaKeisha Thompson purchased shares in the Oakmark I Fund. Using the following information, answer the questions that follow.
Year Investment Amount Price per share Number of share
Feb 2008 $1500 $40 37.50
Feb 2009 1500 30 50
Feb 2010 1500 34 43.60
Feb 2011 1500 42 35.71
a. At the end of four years, what is the total amount invested?
b. At the end of four years, what is the total number of shares purchased?
c. At the end of four years, what is the average cost for each share?
Answer:
LaKeisha Thompson
a. At the end of four years, the total amount invested is:
= $6,000
b. At the end of four years, the total number of shares purchased is:
= 166.81
c. At the end of four years, the average cost for each share is:
= $35.97.
Explanation:
a) Data and Calculations:
Investments in Oakmark I Fund:
Year Investment Price Number
Amount per share of share
Feb 2008 $1,500 $40 37.50
Feb 2009 1,500 30 50
Feb 2010 1,500 34 43.60
Feb 2011 1,500 42 35.71
Total $6,000 166.81
Average cost per share = $35.97 ($6,000/166.81)
During January, Deluxe Printing pays employee salaries of $0.83 million. Withholdings in January are $76,000 for the employee portion of FICA, $210,000 for federal and state income tax, and $40,000 for the employee portion of health insurance (payable to Blue Cross/Blue Shield). The company incurs an additional $48,000 for federal and state unemployment tax, and $20,000 for the employer portion of health insurance.
The journal entry to record employer-provided fringe benefits includes:______.
Answer:
Credit to accounts payable (blue cross/blue shield) of $20,000
Explanation:
Based on the information given we were told that the amount of $20,000 is the amount for the employer portion of health insurance which therefore means that The appropiate journal entry to record employer-provided fringe benefits includes:
CREDIT To Accounts Payable (blue cross/blue shield) of $20,000.
Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to individuals as well as local companies that coordinate adventure getaways in the desert for tourists. The following information is available for several months of the current year:
Month Sales Purchases Cash Expenses Paid
May $96,000 $70,000 $19,000
June 121,000 87,000 24,000
July 133,000 117,000 33,500
August 127,000 72,000 33,600
The majority of Martin's sales (65 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 40 percent are collected in the month of sale and 60 percent are collected in the following month. All of Martin's purchases are on account with 55 percent paid in the month of purchase and 45 percent paid the following month.
Required:
1. Determine budgeted cash collections for July and August.
2. Determine budgeted cash payments for July and August.
Answer:
Martin Clothing company
July August
1. Budgeted cash collections $130,480 $128,260
2. Budgeted cash payments $137,000 $125,850
Explanation:
a) Data and Calculations:
Month Sales Purchases Cash Expenses Paid
May $96,000 $70,000 $19,000
June 121,000 87,000 24,000
July 133,000 117,000 33,500
August 127,000 72,000 33,600
May June July August
Sales $96,000 $121,000 $133,000 $127,000
Purchases 70,000 87,000 117,000 72,000
Expense 19,000 24,000 33,500 33,600
Cash Collections:
May June July August
Sales $96,000 $121,000 $133,000 $127,000
Collections:
65% cash $62,400 $78,650 $86,450 $82,550
14% month 13,440 16,940 18,620 17,780
21% following 20,160 25,410 27,930
Total collections for July and August $130,480 $128,260
Cash payments:
May June July August
Purchases 70,000 87,000 117,000 72,000
55% $38,500 $47,850 $64,350 $39,600
45% 31,500 39,150 52,650
Expense 19,000 24,000 33,500 33,600
Payments for July and August $137,000 $125,850
Beginning inventory, purchases, and sales for WCS12 are as follows:
Oct. 1 Inventory 300 units at $9
13 Sale 180 units
22 Purchase 380 units at $11
29 Sale 400 units
a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places.
$ per unit
b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your "average unit cost" to two decimal places.
$
c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places.
$
Answer:
WCS12
a. Assuming a perpetual inventory system and using the weighted average method, the weighted-average unit cost after the October 22 Purchase is:
= $10.52.
b. Assuming a perpetual inventory system and using the weighted average method, the cost of goods sold on October 29 is:
= $4,208.
c. Assuming a perpetual inventory system and using the weighted average method, the inventory on October 31 is:
= $1,052.
Explanation:
a) Data and Calculations:
Date Description Units Unit Cost Total Cost
Oct. 1 Inventory 300 $9 $2,700
Oct. 13 Sale (180)
Oct. 22 Purchase 380 $11 4,180
Oct. 29 Sale (400)
Weighted-average unit cost after the October 22 Purchase:
Date Description Units Unit Cost Total Cost
Oct. 1 Inventory 120 $9 $1,080
Oct. 22 Purchase 380 $11 4,180
Total inventory and cost 500 $5,260
Unit cost = $10.52 ($5,260/500)
Cost of goods sold on October 29 = $4,208 (400 * $10.52)
Ending inventory = $1,052 (100 * $10.52)
The Jessica Co. has the following errors on its books as of December 31, 2018. The books for 2018 have not yet been closed.
a. On January 1, 2016, a machine had been purchased for $6,500. The machine had an estimated life of five years, but it was expensed in error. Straight-line depreciation with no salvage value should have been used.
b. On January 1, 2017, the company bought a four-year insurance policy for $800 and immediately charged the full premium to expense.
Required:
Prepare journal entries to correct these errors on December 31, 2018. Ignore income taxes.
Answer and Explanation:
The journal entry is given below;
a. Machine or equipment $6,500
To Accumulated depreciation ($6,500 × 3 ÷ 5) $3,900
To Retained earnings $2,600
(being the correction of the error is recorded)
b. Prepaid insurance Dr ($800 ÷ 4 × 2 ) $400
To Retained earnings $400
(being the correction of the error is recorded)
These two entries should be recorded to correct the given errors
Presente perOW IS INTormation rerarea Orrounder company.
Retail
Cost
$148,740
1,359,000
Beginning inventory
Purchases
Markups
Markup cancellations
Markdowns
Markdown cancellations
Sales revenue
$285,000
2,148.000
96.200
16,300
31,800
4,700
2,209,000
Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, eg.
78% and final answer to O decimal places, eg. 28,987.)
Ending inventory using conventional retail inventory method
$
Answer:
Note: "The complete and organized question is attached below as picture"
Conventional Inventory Method
Particulars Cost Retail
Beginning inventory A $148,740 $285,000
Purchases $1,359,000 $2,148,000
Markups-net $79,900
Current year's addition B $1,359,000 $2,227,900
Goods available for sale C=A+B) $1,507,740 $2,512,900
Markdown-net ($27,100)
Sales ($2,209,000)
Ending inventory at retail $276,800
Cost-to-retail percentage = $1,507,740 / $2,512,900*100
Cost-to-retail percentage = 0.6 * 100
Cost-to-retail percentage = 60%
Ending inventory at cost = Ending inventory at retail * Cost-to-retail percentage
Ending inventory at cost = $276,800 * 60%
Ending inventory at cost = $166,080
Alex and Selena are 25 and love to dream about what they will do when they are retired. They want to own a summer home in Florida, travel to Europe, and spend time visiting family around the U.S. To support this dream, they need a retirement income of $100,000 per year throughout their retirement. At their current retirement contribution level, they will have $2 million saved by age 65.
On December 1, Spencer Department Store borrowed $19,250 from First Bank and Trust. Spencer signed a 90-day note with a face amount of $20,000. The interest rate stated on the face of the note is 15 percent per year.
Required:
a. Provide the journal entry recorded by Spencer on December 1.
b. Provide the adjusting entry recorded by Spencer on December 31 before financial statements are prepared.
Answer:
A. Dr Cash $19,250
Dr Discount on notes payable $750
Cr Notes Payable $20,000
B. Dr Adjusting entries:Interest expense $250
Cr Discount on notes payable $250
Explanation:
A.Preparation of the journal entry recorded by Spencer on December 1.
Dr Cash $19,250
Dr Discount on notes payable $750
($20,000-$19,250)
Cr Notes Payable $20,000
(Being a journal entry to recognize short-term note payable issued)
b. Preparation of the adjusting entry recorded by Spencer on December 31 before financial statements are prepared. Show
Since the nterest for three months is the amount of $750 which means that the Per month interest amount will be calculated as : $750/3 = $250
Dr Adjusting entries:Interest expense $250
Cr Discount on notes payable $250
On October 1, 2021, Sonoma Company leased equipment from Napa Inc. in lease payable in five equal annual payments of $540,000, beginning Oct 1, 2022. Similar transactions have carried an 11% interest rate. The right-of-use asset would be recorded at:________ (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Answer:
$1,995,786
Explanation:
Calculation to determine what The right-of-use asset would be recorded at:
Using this formula
Right-of-use asset=Annual payments*PV ordinary annuity
Where,
Annual payments=$540,000
PV ordinary annuity of $1: n = 5; i = 11%=3.69590
Let plug in the formula
Right-of-use asset= $540,000 × 3.69590
Right-of-use asset = $1,995,786
Therefore The right-of-use asset would be recorded at:$1,995,786
The following are hibiscus company cost of making and selling an item:
Description Amount per unit
Direct materials $9
Direct labor $4
Variable manufacturing overhead $2
Fixed manufacturing overhead $5
Variable selling and administrative $2
Fixed selling and administrative $8
A one-time only special order has been received for 600 units. The company has capacity to accept the oder and it would not affect regular sales. The sales price for the special order is $26 per unit. Total fixed costs would not be affected by this order. The variable selling and administrative costs would have to be incurred for this special order. The order would require an additional $3 per unit for specialized materials and a new machine that costs $2,000. What is the financial advantage or disadvantage of accepting the special order?
A. $3,600 advantage.
B $1,600 advantage.
C. $2,400 disadvantage.
D. $2,800 advantage.
Answer:
A. $3,600 advantage.
Explanation:
Calculating the financial advantage of disadvantage of special order
Increase in revenue (600*$26) $15,600
Less: Increase in direct materials (600*$9) $5,400
Less: Increase in direct labor (600*$4) $2,400
Less: Increase in variable manufacturing $1,200
overhead (600*$2)
Less: Increase in variable selling and $1,200
administrative (600*$2)
Less: Increase in cost for specialized $1,800
material (600*$3)
Financial advantage from special order $3,600
Albert owns 100 acres of land on which he grows spruce trees. His adjusted basis for the land is $89,600. He receives condemnation proceeds of $8,960 when the city's new beltway takes 5 acres along the eastern boundary of his property. He also receives a severance award of $5,376 associated with the possible harmful effects of exhaust fumes on his trees. Albert invests the $14,336 in a growth mutual fund.
Required:
a. Determine the tax consequences to Albert of the condemnation proceeds.
b. Determine the tax consequences to Albert of the severance award.
Answer:
A. Albert has a $4,480 realized gain of which $4,480 is recognized.
B. Adjusted basis $79,744
Explanation:
a. Calculation to determine the tax consequences to Albert of the condemnation proceeds.
Based on the information given Albert has a REALIZED GAIN of the amount of $4,480 of which the amount of $4,480 is RECOGNIZED, calculated as:
=$8,960 - [(5 acres / 100 acres) x $89,600)]
=$8,960 -$4,480
=$4,480
Therefore the tax consequences to Albert of the condemnation proceeds will be $4,480 realized gain of which $4,480 is recognized.
B. Calculation to Determine the tax consequences to Albert of the severance award.
Based on the information the SEVERANCE AWARD tend to decrease Albert's basis of remaining property which therefore means that His ADJUSTED BASIS in the remaining property will be calculated as:
Adjusted basis=($89,600 - $4,480)- $5,376
Adjusted basis=$85,120-$5,376
Adjusted basis=$79,744
Therefore The the tax consequences to Albert of the severance award will be Adjusted basis of $79,744
The trial balance afyer one month of operation for Mason;s delivery Service as of September 30 ,20 is shown below. Data to complete the adjustments are as fellows:
(a) supplies inventory as of September 30, $90
(b) Insurance expired (used) $650
(c) Depreciation on delivery equipment $600
(d) Wages earned by employees but not paid as of September 30 $350
1. Enter the adjustments in the adjustments columds of hte work sheet and comeple the work sheet
Mason's Delivery Service
Work Sheet
For Month Ended September 30, 20--
Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 1,600
Accounts Receivable 940
Supplies 635
Prepaid Insurance 1,200
Delivery Equipment 6,400
Accum. Depr. - Delivery Equip.
Accounts Payable 1,220
Wages Payable
Jill Mason, Capital 8,000
Jill Mason, Drawing 1,400
Delivery Fees 6,200
Wages Expense 1,500
Advertising Expense 460
Rent Expense 800
Supplies Expense
Telephone Expense 165
Insurance Expense
Repair Expense 230
Oil and Gas Expense 90
Depr. Exp. - Delivery Equip.
15,420 15,420
Answer:
Mason's Delivery Service
Mason's Delivery Service
Worksheet
For Month Ended September 30, 20--
Trial Balance Adjustments Adjusted Income Balance
Trial Balance Statement Sheet
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Dr. Cr.
Cash 1,600 1,600 1,600
Accounts
Receivable 940 940 940
Supplies 635 545 90 90
Prepaid
Insurance 1,200 650 550 550
Delivery
Equipment 6,400 6,400 6,400
Accum. Depr. - Delivery Equip. 600 600 600
Accounts Payable 1,220 1,220 1,220
Wages Payable 350 350 350
Jill Mason, Capital 8,000 8,000 8,000
Jill Mason,
Drawing 1,400 1,400 1,400
Delivery Fees 6,200 6,200 6,200
Wages
Expense 1,500 350 1,850 1,850
Advertising
Expense 460 460 460
Rent Exp. 800 800 800
Supplies Expense 545 545 545
Telephone
Expense 165 165 165
Insurance
Expense 650 650 650
Repair Exp 230 230 230
Oil and Gas
Expense 90 90 90
Depr. Exp. - Delivery Equip. 600 600 600
Total 15,420 15,420 2,145 2,145 16,370 16,370 5,390 6,200 = 810
10,980 10,989
Explanation:
a) Data and Calculations:
Adjustments:
a) Supplies expense $545 Supplies $545
(b) Insurance expense $650 Prepaid Insurance $650
(c) Depr. - Delivery Equip. $600 Accum. Depr. Delivery Equip. $600
(d) Wages expense $350 Wages Payable $350