Answer and Explanation:
The computation is shown below:
Given that
Total manufacturing costs = $1,310,000
Cost of goods manufactured = $1,275,500
Applied manufacturing O.H = 30% of manufacturing costs
= 0.3 of 1,310,000
= $393,000
(1)
The direct labor cost is
80% of direct labor cost = Applied overhead
So direct labor cost = $393,000 ÷ 80%
= $491,250
(2) The total cost of direct material is
As we know that
Total manufacturing costs = Direct materials + Direct labor + Applied Overhead
So,
Direct materials = Total manufacturing costs - Direct labor - Applied overhead
= $1,310,000 - $491,250 - $393,000
= $425,750
(3)
The Ending work in process inventory is
As we know that
Cost of goods manufactured = Beginning work in process + Total manufacturing costs - Ending work in process
Le us s assume X to be ending work in process
Beginning work in process = X × 75% = 0.75X
Now
$1,275,500 = 0.75X + $1,310,000 - X
X = $138,000
The short run industry supply curve is the Group of answer choices sum of all of the individual firms' ATC curves above the MC. average of all of the individual firms' marginal cost curves above the AVC. sum of all of the individual firms' marginal cost curves above the AVC. average of all of the individual firms' ATC curves above the MC.
Answer:
sum of all of the individual firms' marginal cost curves above the AVC.
Explanation:
Marginal Cost (MC) can be defined as the cost incurred in the production of one unit of a product.
Average Variable Cost (AVC) can be defined as the total variable cost per unit of production. It is calculated by dividing total variable cost (TVC) by total output of production (Q);
[tex] AVC = \frac{TVC}{Q} [/tex]
In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.
This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
The short run industry supply curve is the sum of all of the individual firms' marginal cost curves above the average variable cost (AVC). It is typically considered to be marginal cost curve for the industry.
Generally, industries always strive to maximize profits by increasing their level of output, such that P = MC. Also, the firms wouldn't be willing to leave or enter into the market because they are not making any profit, such that P=AC.
Pharoah Leasing Company agrees to lease equipment to Novak Corporation on January 1, 2020. The following information relates to the lease agreement.
1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years.
2. The cost of the machinery is $502,000, and the fair value of the asset on January 1, 2020, is $739,000.
3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $45,000. Novak estimates that the expected residual value at the end of the lease term will be 45,000. Novak amortizes all of its leased equipment on a straight-line basis.
4. The lease agreement requires equal annual rental payments, beginning on January 1, 2020.
5. The collectibility of the lease payments is probable.
6. Pharoah desires a 10% rate of return on its investments. Novak's incremental borrowing rate is 11%, and the lessor's implicitrate is unknown.
1. Discuss the nature of this lease for both the lessee and the lessor.
2. Calculate the amount of the annual rental payment required.
3. Compute the value of the lease liability to the lessee.
4. Prepare the journal entries Novak would make in 2020 and 2021 related to the lease arrangement.
5. Prepare the journal entries Pharoah would make in 2020 and 2021 related to the lease arrangement.
Suppose Novak expects the residual value at the end of this lease term to be $40,000 but still guarantees a residual of $50,000. Compute the value of the lease liability at lease commencement.
Answer:
1. Novak Corporation is the lessee and this is a Capital Lease for it. Lease for Pharoah Leasing Company is the lessor and this is an Operating Lease for it.
2. Annual rental payment required = $133,683
3. Lease Liability to the lessee = $720,909
4. See the attached excel file.
5. See the attached excel file.
Explanation:
1. Discuss the nature of this lease for both the lessee and the lessor.
Novak Corporation is the lessee and this is a Capital Lease for it. The reason this is a capital lease to Novak Corporation is that the lease of the equipment will be treated as an asset in the books of accounts of Novak Corporation.
Lease for Pharoah Leasing Company is the lessor and this is an Operating Lease for it. The reason this is an operating lease to Pharoah Leasing Company is that the ownership of the asset is not transferred by Pharoah Leasing Company to Novak Corporation and the useful life of the asset will remains after the lease term expires.
2. Calculate the amount of the annual rental payment required.
Note: See L in the attached excel file for the calculation of the amount of the annual rental payment required.
From the attached excel file, we have:
Annual rental payment required = $133,683
3. Compute the value of the lease liability to the lessee.
Note: See O in the attached excel file for the computation of the value of the lease liability to the lessee.
From the attached excel file, we have:
Lease Liability to the lessee = $720,909
4. Prepare the journal entries Novak would make in 2020 and 2021 related to the lease arrangement.
Note: See the attached excel file for the journal entries Novak would make in 2020 and 2021 related to the lease arrangement.
5. Prepare the journal entries Pharoah would make in 2020 and 2021 related to the lease arrangement.
Note: See the attached excel file for the journal entries Pharoah would make in 2020 and 2021 related to the lease arrangement.
Give me a couple countries that have a low and high quality of life index
Answer:
Countries with have mediocre quality of Life index: Puerto Rico, South Korea, Greece, Bulgaria, Romania
Assume you are the manager of Assembly, Inc. You have just received an order for 38 units of an industrial robot, which is to be delivered at the start of week 7 of your schedule. Using the following information, determine how many units of subassembly G to order and the timing of those orders, given that subassembly G must be ordered in multiples of 80 units and all other components are ordered lot-for-lot. Assume that the components are used only for this particular robot.
Item Lead Time (weeks) On Hand Components
Robot 2 10 B,G,C(3)
B 1 5 E,F
C 1 20 G(2),H
E 2 4
F 3 8
G 2 15
H 1 10
Answer:
G order Quantity = 320 no's to meet demand of 251 nos. in multiples of 80s.
G Order timing = 2nd week (beginning)
Explanation:
Solution:
Subassembly G order quantity (in units):
Based on the bill of material structure.
G sub assemblies needed for making one robot = 6+1 = 7
G Sub Assemblies needed making 38 robots = 38 x 7 = 266
Inventory of G sub assemblies = 15
G sub assemblies order needed = Demand - inventory
G sub assemblies order needed = 266 - 15
G sub assemblies order needed = 251
G sub assemblies order needed in multiple of 80's
Since, order quantities in multiple of 80's and more than equal to 251
G assemblies order quantity = 80x4 = 320
The multiple of 80's will meet the demand of 251
Less than 320, we cannot order, because it will not meet the demand of 251. As 80x3 = 240.
So,
320 is the minimum order quantity in multiple of 80's to meet the demand of 251.
b.
Sub assembly G order should start at beginning of the week.
Note: Lead time structure with respect to BOM structure for robot is attached below in the attachment.
Since, G order timing = 2nd week.
Jayden, the vice president of Boxco, is reviewing the development program for the company's middle managers. He notes that management development includes psychological profiles and mentors, as well as lateral moves to positions that give managers a broader view of the company. Jacob would like to add a component of formal education. Which option could be included in this new component? Question 124 options: on-the-job training in the basics of managers' current jobs workshops involving business games and simulations 360-degree feedback opportunities to sign up for sessions with a life coach a program of externships at local charities
Answer:
Opportunities to sign up for sessions with a life coach.
Explanation:
Since he wants to include psychological profiles as well as mentors in the program to raise efficiency. Jacob should use A life coach. A life coach can empower and help in setting and meeting goals. Increasing accountability accept for the personal growth of employee and also for career success.
In the middle level, accountability is important, a life coach would help you develop abilities in managerial duties, improve relationships, business goals.
2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $4 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used
The original data is :
Data for Hermann Corporation
Per unit Percent of sales
Selling price $ 75 100%
Variable expenses 51 68
Contribution margin $ 24 32%
The fixed expenses are $ 75,000 per month and the company is selling 4000 units per month.
Solution :
Present Proposed
Sales 300000 375000
Less : Variable cost 204000 275000
Contribution margin 96000 100000
Less : Fixed expenses 75000 75000
Net income 21000 25000
The net operating income : Increases 4000
Net operating income = increased sales Net income - current sales net income.
Therefore the higher quality component should be used.
Last year Carson Industries issued a 10-year, 14% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,060 and it sells for $1,300. What are the bond's nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM: % YTC: % Would an investor be more likely to earn the YTM or the YTC?
Answer and Explanation:
The computation is shown below:
For nominal yield to maturity
Given that
NPER = 9 × 2 = 18
PMt = $1,000 ×14% ÷ 2 = $70
PV = -$1,300
FV = $1,000
The formula is shown below:
= RATE(NPER,PMT,-PV,FV,TYPE)
After applying the above formula, the yield to maturity is 9.05%
For nominal yield to call
Given that
NPER = 6 × 2 = 18
PMt = $1,000 ×14% ÷ 2 = $70
PV = -$1,300
FV = $1,060
The formula is shown below:
= RATE(NPER,PMT,-PV,FV,TYPE)
After applying the above formula, the yield to call is 8.34%
As the yield to maturity is more than the yield to call so the bond would be likely to called
If your body does not have enough nutrients, it will begin to
a. shut down
b. make its own
C. find others
d.
use energy
Please select the best answer from the choices provided
А
B
Ο Ο Ο Ο
C
Answer:
Its A i just did the test its not D
Explanation:
On September 1, 2018, ABC signed a $100,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2019. ABC records the appropriate adjusting entry for the note on December 31, 2018. In recording the payment of the note plus accrued interest at maturity on March 1, 2019, ABC would
Answer: b. Debit Interest Expense, $1,500.
Explanation:
On the date of maturity in 2019, the journal entry will look something like this:
Date Account title Debit Credit
March 2019 Note Payable $100,000
Interest Payable $3,000
Interest expense $1,500
Cash $104,500
The interest payable is the portion of interest that accrued in the 4 months in 2018 which was in the previous period so would have to be recorded as a liability instead of an expense.
The interest expense is for the interest accrued in 2019 which would be for 2 months and is:
= 100,000 * 9% * 2/12
= $1,500
In connection with the office use in the home deduction, comment on the following:
a. The exclusive use requirement.
b. The distinction between direct and indirect expenses.
c. The effect on deduction of taxpayer's work status i.e. employed or self employed.
d. The ownership status of residence i.e. owned or rented.
e. The tax treatment of office furnishings i.e. desk, chairs, and file cabinets.
f. The treatment of expenses that exceed the gross income from the business.
Answer:
a. The exclusive use requirement means that office space is used solely for business purpose.
b. Indirect expense are related to business operating costs and distinction must be made wile deductions between business and personal use. Direct expense is solely related to the business and is deducted in full.
c. Employee deductions are allowed and they are deducted from Adjusted Gross Income.
d. The ownership status of resident is criteria for deductions. Resident status is allowed for deducting depreciation.
e. Office furnishing are deductible expense.
f. Any excesses are carried to the next yearly period.
Explanation:
The deductions are required to be distinct between personal and professional use. It is responsibility of the business owner to calculate deductible expenses and then prepare tax status. The income from business are recorded at full and is subject to tax.
disadvantages of starting a business as an entrepreneur ?
Mrs Blake is paid a weekly wage of $248. During a certain week she worked 5 hours
overtime. Her total wages were $285.50.
Calculate
her overtime wages
(2 marks)
(11)
the overtime rate of pay.
2 marks)p
285.50 -
248.00
037.50
A) 37.50 Dollars
B) $7.50 per hour overtime
37.50÷5
5_/37.50
07.50
Riegel Co uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at 12/31/17, consists of products D, E, F, G, H, and I. Relevant per unit data for these products are:
Item D Item E Item F Item G Item H Item I
Estimated selling price $120 $110 $95 $90 $110 $90
Cost 75 80 80 80 50 36
Cost to complete 30 30 25 35 30 30
Selling costs 10 18 10 20 10 20
Required:
Using the LCNRV rule, determine the proper unit value for the statement of financial position reporting purposes on December 31, 2014, for each of the inventory items above.
Answer:
Riegel Co.
Item D Item E Item F Item G Item H Item I
LCNRV $105 $92 $85 $70 $80 $66
Explanation:
a) Data and Calculations:
Item D Item E Item F Item G Item H Item I
Estimated selling price $120 $110 $95 $90 $110 $90
Cost 75 80 80 80 50 36
Cost to complete 30 30 25 35 30 30
Selling costs 10 18 10 20 10 20
Total costs:
Item D Item E Item F Item G Item H Item I
Cost 75 80 80 80 50 36
Cost to complete 30 30 25 35 30 30
Total costs 105 110 105 115 80 66
NRV:
Item D Item E Item F Item G Item H Item I
Estimated selling price $120 $110 $95 $90 $110 $90
Selling costs 10 18 10 20 10 20
NRV $110 $92 85 $70 $100 $70
Comparison of Total costs with NRV:
Item D Item E Item F Item G Item H Item I
NRV $110 $92 85 $70 $100 $70
Total costs 105 110 105 115 80 66
LCNRV $105 $92 $85 $70 $80 $66
Natick Industries leased high-tech instruments from Framingham Leasing on January 1, 2021. Natick has the option to renew the lease at the end of two years for an additional three years. Natick is subject to a $45,000 penalty after two years if it fails to renew the lease. Framingham Leasing purchased the equipment from Waltham Machines at a cost of $250,177.
Related Information:
Lease term 2 years (8 quarterly periods)
Lease renewal option for an additional 3 years (12 quarterly periods)
Quarterly lease payments $11,000 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. 4%
Required:
Prepare appropriate entries for Natick Industries from the beginning of the lease through March 31, 2021. Appropriate adjusting entries are made quarterly.
Answer:
1-Jan-21
Dr Right- of-use asset $250,177
Cr Lease payable $250,177
1-Jan-21
Dr Lease payable $11,000
Cr Cash $11,000
31-Mar-21
Dr Interest expense $2,392
Dr Lease payable $8,608
Cr Cash $11,000
31-Mar-21
Dr Amortization expense $12,509
Cr Right-of-use asset $12,509
Explanation:
Preparation of the appropriate entries for Natick Industries from the beginning of the lease through March 31, 2021.
Journa Entry- Lease-Natick Industries
1-Jan-21
Dr Right- of-use asset
($11,000 * PVAF at 1%for 0-20)
($11000*22.74336) $250,177
Cr Lease payable $250,177
(To Record Lease at Inception)
1-Jan-21
Dr Lease payable $11,000
Cr Cash $11,000
(To Record First Lease Payment made)
31-Mar-21
Dr Interest expense
[($250,177 - 11000 )*1%] $2,392
Dr Lease payable $8,608
($11,000-$2,392)
Cr Cash $11,000
(To Record Second Lease Payment made)
31-Mar-21
Dr Amortization expense
($250,177/ 20) $12,509
Cr Right-of-use asset $12,509
(To Record Amortisation Expense)
Gundy Corporation produces area rugs. The following per unit cost information is available: direct materials $15, direct labor $9, variable manufacturing overhead $6, fixed manufacturing overhead $8, variable selling and administrative expenses $4, and fixed selling and administrative expenses $6. Using a 40% markup on total per unit cost, compute the target selling price.
Answer:
$67.2
Explanation:
With regards to the above,
Total unit cost = $15 + $9 + $6 + $8 + $4 + $6 = $48
Target selling price = Total unit cost × (1 + mark up)
Since markup percentage is 40% or 0.40
Therefore,
Target selling price = $48 × (1 + 0.4)
= $48 × 1.4
= $67.2
Therefore the target selling price is $67.2
Identifying effects of transactions using the accounting equation LO PI
Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions.
A. Owner invested $59,000 cash in the company along with equipment that had a $14,000 market value.
B. The company paid $2,000 cash for rent of office space for the month.
C. The company purchased $11,000 of additional equipment on credit (payment due within 30 days).
D. The company completed work for a client and immediately collected the $2,300 cash earned.
E. The company completed work for a client and sent a bill for $7,600 to be received within 30 days.
F. The company purchased additional equipment for $5,800 cash.
G. The company paid an assistant $3,400 cash as wages for the month.
H. The company collected $4,500 cash as a partial payment for the amount owed by the client in transaction e.
I. The company paid $11,000 cash to settle the liability created in transaction c.
J. Owner withdrew $1,200 cash from the company for personal use.
Required:
Enter the impact of each transaction on individual items of the accounting equation.
Answer:
A. Asset as cash will increase by $59,000, asset in equipment will increase $14,000
B. Asset side in increased and decreased
C. Asset and liability will increase by $11,000
D. Asset will increase
E. Asset will increase
F. Asset will increase and decrease by $5,800
G. Asset will decrease
H. Asset will increase
I. Liability will decrease
J. Asset and capital will decrease by $1,200
Explanation:
Accounting equation is Asset = Liabilities + Capital
Accounting equation is affected in business transaction. The transaction in business have different effects some transaction are like hybrid which impacts the multiple accounts balances. There are some transactions which just involve asset side transaction increase and decrease on the same account this will offset the balance and no effect on equation.
22)
If the economy heads into a recession due to a global pandemic, which types of businesses would be less affected by a
decrease in consumer spending due to larger capital investments?
hlight
ime
maining
06:17
le Tools
A)
partnership
B)
corporation
sole trader
D)
sole proprietorship
E)
limited liability partnership
Answer:
A and B
Explanation:
Answer:
its A and B and D
Explanation:
i just took the quiz
The following information is related to the defined benefit pension plan of Melissa Larson Company for the year: Service cost $ 94,000 Contributions to pension plan 147,000 Benefits paid to retirees 116,000 Plan assets (fair value), January 1 549,000 Plan assets (fair value), December 31 662,000 Actual return on plan assets 82,000 PBO, January 1 810,000 PBO, December 31 869,000 Discount rate 10 % Long-term expected return on plan assets 9 % Assuming no other relevant data exist, what is the pension expense for the year
Answer:
$125,590
Explanation:
Calculation for the pension expense for the year
Service cost$94,000
Add Interest cost (810,000 × 10%) $81,000
Less Expected return on plan assets ($49,410)
(549,000 × 9%)
Pension expense $125,590
Therefore the pension expense for the year is $125,590
In computing its predetermined overhead rate, Marple Company inadvertently left its indirect labor costs out of the computation. This oversight will cause ________________ (chapter 6) A. Manufacturing Overhead to be overapplied B. the Cost of Goods Manufactured to be understated C. the debits to the Manufacturing Overhead account to be understated D. the ending balance in Work-in-Process to be overstated
Answer:
a) The Cost of Goods Manufactured to be understated
Explanation:
From the question we are informed about Marple company, and In computing its predetermined overhead rate, Marple Company inadvertently left its indirect labor costs out of the computation. In this case, The oversight will cause The Cost of Goods Manufactured to be understated. pre-determined overhead rate can be regarded as rate utilize in application of manufacturing overhead as regards
work-in-process inventory. It is usually calculated before the beginning of the period and is usually commence by estimation of activities needed to support operations as regards coming period.
i
Lloyd is the chief financial officer (CFO) for a firm that uses Incentive stock options (ISOs) as part of its executive compensation plan. He receives $150,000 annually, paid semimonthly, in base salary plus 25 shares of the firm's stock per month. The stock is omitted from gross pay calculations and is valued at $52.50 per share and he may exercise his option within five years at $0.10 per share. What is Lloyd's gross pay for mid-October
Answer:
the gross pay of Lloyd is $6,250
Explanation:
The computation of the gross pay is shown below:
= Amount received annually ÷ number of months
= $150,000 ÷ 24
= $6,250
Hence, the gross pay of Lloyd is $6,250
we simply applied the above formula so that the correct value could come
The other things would be irrelavant
Assume that a Parent company owns 100% of its Subsidiary. On January 1, 2016 the Parent company had a $1,000,000 (face) bond payable outstanding with a carrying value of $1,070,000. The bond was originally issued to an unaffiliated company. On that same date, the Subsidiary acquired the bond for $996,000. During 2016, the Parent company reported $630,000 of (pre-consolidation) income from its own operations (i.e. prior to any equity method adjustments by the Parent company) and after recording interest expense. The Subsidiary reported $420,000 of (pre-consolidation) income from its own operations after recording interest income. Related to the bond during 2016, the parent reported interest expense of $110,000 while the subsidiary reported interest income of $95,000.
Determine the following amounts that will appear in the 2016 consolidated income statements.
a. Interest income from bond investment
b. Interest expense on bond payable
c. Gain (loss) on constructive retirement of bond payable
d. Consolidated net income
Answer:
a. Interest income from bond investment
intercompany transaction gains or losses are eliminated when preparing consolidated financial statements
b. Interest expense on bond payable
intercompany transaction gains or losses are eliminated when preparing consolidated financial statements
c. Gain (loss) on constructive retirement of bond payable
gain on retirement of bond = $1,070,000 - $996,000 = $74,000
d. Consolidated net income
consolidated net income = income from parent company + income from subsidiary + net gain from retirement of bond = $630,000 + $420,000 + $74,000 = $1,124,000A price ceiling set below the equilibrium price in a perfectly competitive market A. always reduces producer surplus and increases consumer surplus. B. always increases producer surplus and decreases consumer surplus. C. always reduces producer surplus and may or may not increase consumer surplus. D. always increases producer surplus and may or may not increase consumer surplus
Answer:
A
Explanation:
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
Because price is below equilibrium price, consumer surplus would increase and producer surplus would reduce
12.Transverse Crane Service will obtain a bonus at the end of a multi-year project if the job is completed on time. This bonus will amount to $100,000 or a bridge general maintenance project across the Hudson River. The company has the following investments and cash draws on the 9-year project: They invested $2,000,000 at the start of the project to cover expected costs. In year 2 they expect to withdraw $6,000,00. In year 3, they will receive a partial payment for $800,000. In year 5, they will have to withdraw $900,000, In year 6, they will need to withdraw $400,000, and in year 8 they will receive a payment of $1,800,000. The project will end in year 9 with no additional costs. How much will be in the account with an interest rate of 3%.
Solution :
Given : interest rate = 3%
= 0.03
Investment at the starting of the project = $2,000,000
Value of money at the end of year [tex]$2$[/tex] = [tex]$2000000 \times (1.03)^2 - 600000 = 1,521,800$[/tex]
Value at money the end of year [tex]$3$[/tex] = [tex]$1521800 \times 1.03 + 800000 = 2,367,454$[/tex]
Value at money the end of year [tex]$5$[/tex] = [tex]$2367454 \times (1.03)^2-900000=1,611,631.949$[/tex]
Value at money the end of year [tex]$6$[/tex] = [tex]$1611631.949 \times 1.03 - 400000=1,259,980.91$[/tex]
Value at money the end of year [tex]$8$[/tex] = [tex]$1259980.91 \times (1.03)^2 +1800000=3,136,713.74$[/tex]
Value at money the end of year [tex]$9$[/tex] = [tex]$3136713.74 \times 1.03 + 100000=3,330,815.16$[/tex]
Surendra’s personal residence originally cost $340,000 (ignore land). After living in the house for five years, he converts it to rental property. At the date of conversion, the fair market value of the house is $320,000. As to the rental property, calculate Surendra’s basis for:________.
a. Loss.
b. Depreciation.
c. Gain.
d. Could Surendra have obtained better tax results if he had sold his personal residence for $320,000 to hold as rental property?
Answer:
a. Loss
The basis for Loss is the lower of the basis after it is adjusted for its new purpose or the fair market value.
Adjusted = $340,000
Fair market value = $320,000
Loss basis will therefore be the lower value of $320,000
b. Depreciation:
This is the same as the loss basis because the residence was converted from personal use to business use.
= $320,000
c. Gain
= Adjusted basis of the property
= $340,000
d. No.
Because he would be converting to rental property which is a business use, the loss that he would have incurred of $20,000 would have been disallowed and he wouldn't be able to deduct it.
Loss = Cost - fair value = 340,000 - 320,000 = $20,000
Deb has found it very difficult to repay her... Deb has found it very difficult to repay her loans. Because of these difficulties, the bank decided to forgive one of her most recent loans, an amount of $91,000. After the loan was discharged, Deb had total assets of $247,000 and her remaining loans totaled $239,000. What amount must Deb include in her gross income
Answer: $8000
Explanation:
The following information can be gotten from the question:
Total assets = $247000
Remaining loans = $239000
The amount that Deb must include in her gross income will be the difference between the total assets and the remaining loans which will be:
= $247000 - $239000
= $8000
=
A new law requires employers to provide health benefits to all workers who are employed more than 10 hours per week. This law results in a $3 per hour increase in the cost of hiring workers. The law is likely to ____ the demand for labor and _____ the equilibrium wage paid to workers.
Answer:
reduce
decrease
Explanation:
As a result of the new law, the cost of hiring labour would increase. This would lead to a reduction in the demand for labour. This decrease is in line with the law of demand.
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded
There would be a leftward shift of the demand curve. This would lead to a fall in equilibrium price and quantity
The cash account for American Medical Co. at April 30 indicated a balance of $334,985. The bank statement indicated a balance of $388,600 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:Checks outstanding totaled $61,280.A deposit of $42,500, representing receipts of April 30, had been made too late to appear on the bank statement.The bank collected $42,000 on a $40,000 note, including interest of $2,000.A check for $7,600 returned with the statement had been incorrectly recorded by American Medical Co. as $760. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account.A check drawn for $240 had been erroneously charged by the bank as $420.Bank service charges for April amounted to $145.Instructions1. Prepare a bank reconciliation.2. Journalize the necessary entries. The accounts have not been closed.3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash?
Answer:
1. Cash balance according to bank statement $370,000
Cash balance according to company’s records $370,000
2. a. April 30
Dr Cash $42,000
Cr Notes Receivable $40,000
Cr Interest Income / Interest Revenue $2,000
b. April 30
Dr Accounts Payable - Targhee Supply Co $6,840
Dr Miscellaneous Expenses [Bank service charge] $145
Cr Cash $6,985
3. $370,000
Explanation:
1. Preparation of a bank reconciliation
AMERICAN MEDICAL COMPANY
Bank Reconciliation
April 30
Cash balance according to bank statement $388,600
Add: Deposit of April 30, Not recorded by bank $42,500
Add: Bank Error in Charging check as $420 instead of $240 [$420 - $240] $180
Deduct: Outstanding Checks $61,280
Adjusted balance $370,000
Cash balance according to company’s records $334,985
Add: Note and Interest Collected by bank $42,000
Deduct: Error in Recording Check [$7,600 - $760] $6,840
Deduct: Bank Service Charges $145
Adjusted balance $370,000
2. Preparation of Journal entries.
Journal entries
a. April 30
Dr Cash $42,000
Cr Notes Receivable $40,000
Cr Interest Income / Interest Revenue $2,000
b. April 30
Dr Accounts Payable - Targhee Supply Co [$7,600 - $760] $6,840
Dr Miscellaneous Expenses [Bank service charge] $145
Cr Cash $6,985
($6,840+$145)
3. Based on the information given If a balance sheet is prepared for American Medical Co. on April 30, the amount that should be reported as cash will be $370,000
The tiny isolationist nations of Lorland and Zhangia are considering opening their borders to trade with each other. Both nations produce only two goods: smoothies and sandals. Currently, a worker in Lorland can produce 2 smoothies per day or 8 sandals per day, while a worker in Zhangia can produce 1 smoothie per day or 5 sandals per day. Using this information, please match each nation and good to the most accurate description.
Write each item to its matching item .
a. the nation that will specialize in producing smoothies once trading begins
b. the nation that will specialize in producing sandals once trading begins
c. the good that Lorland will import from Zhangia after trading begins
d. the good that Lorland will export to Zhangia after trading begins
Zhangia Sandals Smoothies Lorland
Answer:
Lorland
Zhangia
sandals
smoothies
Explanation:
A country should specialise goods for which it has a comparative advantage in its production.
A country should import goods for which it has no comparative advantage in its production.
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
Lorland
Opportunity cost in the production of one smoothie = 8/2 = 4
Opportunity cost in the production of one sandal = 2/8 = 0.25
Zhangia
Opportunity cost in the production of one smoothie = 5/1 = 5
Opportunity cost in the production of one sandal = 1/5 = 0.2
Zhangia has a comparative advantage inn the production of sandals and should specialise in the production of sandals while lorland has a comparative advantage in the production of smoothies specialise in the production of smoothies
Loriland should import sandals and export smoothies
Cost of Spoiled Units Lieu Company is a specialty print shop. Usually, printing jobs are priced at standard cost plus 50 percent. Job 631 involved printing 400 wedding invitations with the following standard costs: Direct materials $220 Direct labor 80 Overhead 80 Total $380 Normally, the invitations would be taken from the machine, the top one inspected for correct wording, spelling, and quality of print, and all of the invitations wrapped in plastic and stored on shelves designated for completed jobs. In this case, however, the technician decided to go to lunch before inspecting and wrapping the job. He stacked the unwrapped invitations beside the printing press and left. One hour later, he returned and found the invitations had fallen on the floor and been stepped on. It turned out that about 50 invitations were ruined and had to be discarded. An additional 50 invitations were then printed to complete the job. Required: 1. Calculate the cost of the spoiled invitations. If required, round your answer to the nearest cent. $fill in the blank 1 2. What is the price of Job 631
Answer: $47.50
Explanation:
Direct materials = $220
Direct labor = $80
Overhead = $80
Total = $380
Number of wedding invitation = 400
Cost per invitation = $380/400 = $0.95
Since the Number of spoiled invitation = 50, then the cost of the spoiled invitation will be;
= 50 × $0.95
= $47.50
The cost of the spoiled invitation is $47.50
For each separate case below, follow the 3-step process for adjusting the accrued expense account: Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record an adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year.
a. Salaries Payable. At year-end, salaries expense of $18,000 has been incurred by the company, but is not yet paid to employees.
b. Interest Payable. At its December 31 year-end, the company owes $375 of interest on a line-of-credit loan. That interest will not be paid until sometime in January of the next year.
c. Interest Payable. At its December 31 year-end, the company holds a mortgage payable that has incurred $1,000 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year.
Answer:
a. Salaries expense (Dr.) $18,000
Salaries Payable (Cr.) $18,000
b. Interest Receivable (Dr.) $375
Interest Earned (Cr.) $375
c. Interest Expense (Dr.) $1,000
Interest Payable (Cr.) $1,000
Explanation:
The adjusting entries will be made once the expenses are paid. For now these expense are recorded as current liability because the payment needs to be made for the expenses that has already incurred. The salaries expense is recorded in contra account of salaries payable, once these salaries are paid then the expense will recorded as cash outflow.