Answer: $75,000
Explanation:
The 1% rule of thumb in real estate is used to evaluate the price of properties. It states that the monthly rent must be 1% or more of the purchase price of the property.
The higher the percentage of the rent over 1% the better.
In the above the best answer would be $75,000 because;
= 1,000/75,000 * 100
= 1.33%
The $1,000 is above 1% of $75,000 and so would be a very good deal.
Eastern University had the following transactions at the beginning of its academic year: Student tuition and fees were billed in the amount of $7,150,000. Of that amount $4,620,000 was collected in cash. Pell Grants in the amount of $2,012,000 were received by the university. The Pell Grants were applied to student accounts. Student scholarships, for which no services were required, amounted to $570,000. These were applied to student tuition bills at the beginning of each semester. Required: Prepare journal entries to record the above transactions assuming: a. Eastern University is a public university. b. Eastern University is a private university.
Answer:
100
Explanation:
hope this helps
Coca-Cola has supported numerous health and sporting cause, but to what extent is this genuine CSR.
Answer:
Considerable extent
Explanation:
Note that CSR (Corporate social responsibility) entails that an organization gives back to its community or environment in which it operates in areas such as financing community developmental projects, providing employment etc.
Coca-Cola, therefore, has done what CSR entails although it could still do more by reducing the environmental pollution coming from its factories, reducing the calories found in its drinks etc.
A trucking company sold its fleet of trucks for $55,400. The trucks originally cost $1,426,000 and had Accumulated Depreciation of $1,273,000 recorded through the date of disposal. What gain or loss did the trucking company record when it sold the fleet of trucks
Answer:
Loss of $97,600
Explanation:
From the question above a trucking company sold its fleet for $55,400
The truck original cost is $1,426,000
The depreciation is $1,273,000
The first step is to calculate the book value
Book value= cost-accumulated depreciation
= $1,426,000-$1,273,000
= $153,000
The next step is to subtract the book value from the cost to determine if it a gain or loss
= $55,400-$153,000
= -97,600
Since the value is negative then, the trucking company is at a loss of $97,600
An economy consists of three workers: Kevin, Rajiv, and Yakov. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Kevin can either mow 2 lawns or wash 1 car; Rajiv can either mow 1 lawn or wash 1 car; and Yakov can either mow 1 lawn or wash 2 cars.
For each of the scenarios listed below, determine how many lawns will be mowed and how many cars will be washed per day and enter these values into the corresponding row?
a. All three spend all their time mowing lawns. (A)
b. All three spend all their time washing cars. (B)
c. All three spend half their time on each activity. (C)
d. Kevin spends half his time on each activity, while Rajiv only washes cars and Yakov only mows lawns. (D)
Answer:
1. 40 lawns
2. 40 washed cars
3. 20 lawns, 20 washed cars
4. 25 lawns mowed, 25 washed cars
Explanation:
In the given question,
A) When all three spend all their time mowing lawns that is
Kevin= 2 X 10 hrs = 20
Rajiv = 1 x 10 hrs = 10
Yakov = 1 x10 hrs = 10
Total mowed lawns will be= 20 +10 + 10 = 40 lawns.
B) When all three spend their time washing cars
Kevin = 1 x 10 hrs = 10
Rajiv = 1 x 10 hrs =10
Yakov = 2 x 10 hrs = 20
Total cars washed= 20 +10 + 10
C) when all three people spend their half time on each activity
Kevin = 2 x 5 hours = 10
Rajiv = 1 x 5 hrs = 5
Yakov1 x 5 hrs = 5
Total lawn mowed will be= 10 + 5 + 5 = 20 therefore time spent on car washing will be 20 hrs.
D) Time on the mowing of the lawn will be =
Kevin = 2 x 5 hrs = 10
Rajiv = 0
Yakov = 1 x 10 hours = 10
Time on the washing of the car will be 20 hrs
Kevin = 1 x 5
Rajiv = 1 x 10
Yakov = 0
Total time = 15 hrs
Other dividend policy issues
Several factors affect a firm's ability to pay a dividend. Three such factors are described in the table: profitability (an increase in net income),
investment opportunities, and capital structure (an increase in the debt ratio). Use the table to indicate how a firm's ability to pay a dividend is affected by the factors described.
(Hint: Consider each factor in isolation, with everything else held the same.)
Ability to Pay Dividends The ability to pay dividends The ability to pay dividends The ability to pay dividends Factors Affecting Dividend Payment Net income increases. More profitable investment opportunities are available. The firm increases its debt ratio. Dernham Burnham Inc. is a typical company that is very concerned with meeting investors’ expectations and keeping investors happy. Its earnings tend to fluctuate from year to year because of the nature of the business the company is in. Which of these statements most likely describes Dernham Burnham Inc.’s dividend policy?
A. Despite the fact that Dernham Burnham Inc.'s earnings tend to fluctuate from year to year, the company most likely pays a predictable, stable dividend each year.
B. Dernham Burnham Inc. most likely pays very large dividends in years with high earnings and small dividends in the years with low earnings. Grade It Now Save & Continue Continue without save in
Answer:
1.
Net income increases. - Ability to pay Dividends increases.
Dividends are paid from Retained Earnings which are derived from Net Income. If Net income increases therefore, so does the ability to pay Dividends.
More profitable investment opportunities are available - Decreases Ability to pay Dividends.
If there are more profitable opportunities for investment available, the business will invest in those opportunities. By doing so they will reduce the amount of cash that they have which is cash that could have been paid as dividends.
The firm increases its debt ratio. - Ability to pay Dividends Increase
As a result of the company borrowing more money, there will be more money left to pay out dividends so more dividends will be paid.
2. A. Despite the fact that Dernham Burnham Inc.'s earnings tend to fluctuate from year to year, the company most likely pays a predictable, stable dividend each year.
Companies like Dernham that aim to please investors usually adopt a predictable, stable dividend policy every year so that the investors will have more faith in them and be sure of earnings every year. This will give them a higher rating with the investors.
Sweet Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company’s bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,088,700 of 14% term corporate bonds on March 1, 2020, due on March 1, 2035, with interest payable each March 1 and September 1, with the first interest payment on September 1st, 2020. At the time of issuance, the market interest rate for similar financial instruments is 12%. As the controller of the company, determine the selling price of the bonds.
Answer:
$4,775,565.49
Explanation:
The computation of the selling price of the bond is shown below:
Particulars Amount PV factor 6% Present value
Semi-annual interest $216,209 19.60044 $4,237,791.53
Principal $3,088,700 0.174110131 $537,773.96
Total $4,775,565.49
Working notes
Semi-annual interest $216,209 = $3,088,700 × 14% × 6 ÷ 12
PV factor 3%:
Semi-annual interest 13.76483115 = {(1 - (1.06)^-30) ÷ 0.06 }
Principal 0.174110131 = {1 ÷ 1.03^30}
Required information [The following information applies to the questions displayed below.] Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $8,200 cash and $35,200 of photography equipment in the company in exchange for common stock. 2 The company paid $3,800 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $1,050 cash. 20 The company received $5,031 cash in photography fees earned. 31 The company paid $845 cash for August utilities. Prepare general journal entries for the above transactions.
Answer:
Pose-for-Pics
General Journal Entries:
Aug. 1:
Debit Cash $8,200
Debit Equipment $35,200
Credit Common Stock $43,400
To record the issue of common stock for cash and equipment.
Aug. 2:
Debit Prepaid Insurance $3,800
Credit Cash Account $3,800
To record the payment of insurance covering 24 months.
Aug. 5:
Debit Office Supplies $1,050
Credit Cash Account $1,050
To record the payment for office supplies.
Aug. 20:
Debit Cash Account $5,031
Credit Photography Fees $5,031
To record fees earned.
Aug. 31:
Debit Utilities $845
Credit Cash Account $845
To record payment for August Utilities.
Explanation:
General Journal entries are made to record business transactions as they occur on a daily basis. Journal entries show the General Ledger accounts to be debited and the ones to be credited. They form the initial records of any business transactions.
Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $120,500 and $124,100, respectively. During the year, actual overhead was $106,500 and actual direct labor cost was $110,800. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include
Answer:
Under/over applied overhead= $1,164.48 overapplied
Explanation:
Giving the following information:
Estimated overhead and direct labor costs for the year were $120,500 and $124,100, respectively. During the year, actual overhead was $106,500 and actual direct labor cost was $110,800.
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 120,500/124,100
Predetermined manufacturing overhead rate= $0.971
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 0.971*110,880= $107,664.48
Finally, we determine the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 106,500 - 107,664.48
Under/over applied overhead= $1,164.48 overapplied
Implicit transaction
Answer:
Dear user,
Answer to your query is provided below
Implicit Transaction are like Rent of owned building, Interest of own capital etc.
Explanation:
These transactions deals with the expenditure incurred on the intangible items.
Implicit transaction refers to the opportunity transaction of using firm's own resources.
How does risk pooling affect inventory levels when a company uses fewer and centralized warehouses? Please explain.
Answer:
In simple words, Inventory risk pooling is the concept that the variability in demand for raw materials is reduced by aggregating demand across multiple products. When properly employed, a business can use risk pooling to maintain lower inventory levels while still avoiding stock out conditions. Although for preventing stock out situation a company need warehouses where they can keep supply sufficient for emergency conditions.
The following data are available for Cole Company. Increase in accounts payable $120,000 Increase in bonds payable 300,000 Sale of investments 150,000 Issuance of common stock 180,000 Payment of cash dividends 90,000 Net cash provided by financing activities is:
Answer:
Net Cash=$390,000
Explanation:
Net Cash provided by financing activities = Increase in bond payable + Issuance of common stock - Payment of cash dividends
Net Cash= $300,000+$180,000-$90,000
Net Cash=$390,000
Net cash also refers to the amount of cash remaining after a transaction has been completed and all associated charges and deductions have been subtracted
Based on the data available, the cash provided by financing activities is $300,000
Cash from financing includes loans and capital related to the financing of the business.
Cash from financing is therefore:
= Increase in bonds payable + Issuance of common stock - Payment of dividends
= 300,000 + 180,000 - 90,000
= $390,000
In conclusion, cash from financing is $390,000
Find out more about cash from financing at https://brainly.com/question/25948084.
Bill and Ralph both work as cashiers for fast food restaurants. They are paid minimum wage. They are attending a black-tie party in an upper-class neighborhood. They drove there from the same part of town and they don't know each other. While they feel out of place there, they feel an understanding with one another. From what we know, what best explains why
Since, the options have not been given the question is incomplete. The complete question is as follows:
Bill and Ralph both work as cashiers for fast food restaurants. They are paid minimum wage. They are attending a black-tie party in an upper-class neighborhood. They drove there from the same part of town and they don't know each other. While they feel out of place there, they feel an understanding with one another. From what we know, what best explains why
a. Ethnicity and race
b. Region
c. Socioeconomic status
Answer: c. Socioeconomic status
Explanation:
Socioeconomic status can be defined as social standing of a person in society. It is based on education, occupation, and income that a person has. The comparison of socioeconomic status may raise inequalities in the society.
Bill and Rslph can be related to each based on the same socioeconomic status. They are paid with minimum wage thus their socioeconomic status is low. They have an upper class neighborhood which is also creating a great difference in comparison with the neighborhood socioeconomic status.
Due to low economic and social help they feel out of place and they are on the same situations thus they can understand one another.
Suppose a Monopsony facing the following labor supply given by curve L = 10W, where L is the number of workers and W = hourly wage. a) Express the hourly wage in terms of the number of workers (L). b) Provide an expression of total labor cost in terms of the number of workers (L) c) Express the marginal expense of labor (MEL) in terms of the number of workers. d) Suppose the marginal revenue product of labor ((MRPL) = 7 – L. What is the level of workers that maximizes the monophony’s profit? What is the wage paid by the monopsony at the profit maximizing level of labor?
Answer: The answer is given below
Explanation:
a. Express the hourly wage in terms of the number of workers (L).
From the question, the labor supply given by L = 10W, where,
L = number of workers
W = hourly wage
Since L = 10W
Divide both side by 10
L/10 = 10W/10
W = L/10
The hourly wage(W) expressed in terms of the number of workers(L) is L/10.
b. Provide an expression of total labor cost in terms of the number of workers (L).
Total labor cost = L × W
Since W = L/10,
Total labor cost = L × L/10
= L²/10
c. Express the marginal expense of labor (MEL) in terms of the number of workers.
Marginal expense of labor will be gotten when we find the derivative of the total labor cost.
Total labor cost = L²/10
MEL = 2L/10
We can reduce to lowest term
MEL = L/5
d. Suppose the marginal revenue product of labor ((MRPL) = 7 – L. What is the level of workers that maximizes the monophony’s profit? What is the wage paid by the monopsony at the profit maximizing level of labor?
Marginal revenue product of labor (MRPL) = 7 – L
At equilibrium, the marginal revenue product of labor (MRPL) will be equal to the marginal expense of labor(MEL)
MRPL = MEL
7 - L = L/5
Cross multiply
5(7 - L) = L
35 - 5L = L
35 = L + 5L
35 = 6L
L = 35/6
L = 5.83 = 6 Approximately
The level of workers that maximizes the monophony’s profit will be approximately 6.
Wages paid = L/10
= 6/10
= 0.6
The wage paid by the monopsony at the profit maximizing level of labor will be 0.6.
At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 901,000 Credit sales 301,000 Its year-end unadjusted trial balance includes the following items. Accounts receivable $ 126,000 debit Allowance for doubtful accounts 5,100 debit Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (a) 4% of credit sales, (b) 2% of total sales and (c) 7% of year-end accounts receivable.
Answer:
Please find the detailed answer in the explanation section.
Explanation:
A. 4% of credit sales
Bad Debts Expense is 4% of $301,000
0.04 x $301,000
=$12,040
Adjusting entry
Dec. 31
Dr Bad debt expense $12,040
Cr Allowance for Doubtful allowance $12,040.
B. 2% of total sales
Total sales = cash sales + credit sales
$ 901,000 + $ 301,000
=$1,202,000
Bad Debts Expense is 2% of 1,202,000
0.02x $1,202,000
=$24,040
Adjusting entry
Dec. 31
Dr Bad debt expense $24,040
Cr Allowance for Doubtful allowance $24,040.
C. 7% of year-end accounts receivable.
Unadjusted balance is $5,100
Estimated balance = $8,820(7% of $126,000)
Adjusted balance is $13,920($5,100 + $8,820)
Adjusting entry
Dec. 31
Dr Bad debt expense $8,820
Cr Allowance for Doubtful allowance $8,820
Dominion Bank also pays 3.25% annual interest, compounded daily. If you had the following deposits and withdrawals, calculate the amount of interest you would have earned at Dominion bank during the month of March. (March has 31 days)
DATE ACCOUNT ACTIVITY BALANCE
March 1 beginning balance $6,500
March 16 withdraw $1,500 ????
March 28 deposit $700 ????
a. $8.69
b. $5.35
c. $33.36
d. $16.08
Answer:
Option D. $16.08
Explanation:
The balance $6,500, $5,000 ($6500-$1500) and $5,700 ($5000+$700) was outstanding for 15, 12 and 4 days.
So now we will calculate the interest earned during the outstanding period for each monetary amount. The formula to compute interest is given as under:
Effective interest = Amount * [(1 + Annual Interest rate / 365)^Days - 1]
Here,
Amount is $6500
Annual Interest rate is 3.25% and Days are 15.
So by putting values, we have:
Effective interest = $6,500 * [(1 + 3.25% / 365)^15 - 1] = $8.69
Similarly for $5,000 and $5,700, we have:
Effective interest = $5,000 * [(1 + 3.25% / 365)^12 - 1] = $5.35
Effective interest = $5,700 * [(1 + 3.25% / 365)^4 - 1] = $2.03
Now,
Total Interest = $8.69 + $5.35 + $2.03 = $16.07 which is close to $16.08 and the difference is because of rounding off.
Hence, the correct option is D.
An accountant has debited an asset account for $700 and credited a liability account for $620. Which of the following would be an incorrect way to complete the recording of the transaction?
A) Credit an asset account for $80
B) Credit another liability account for $80.
C) Credit a stockholders' equity account for $80.
D) Debit a stockholders' equity account for $80
Answer:
Debit a stockholder equity
Explanation:
The error in the entry here is that the either the asset asset is over debited with $80 or the liability account under credited with $80 (700-620)
While the asset account should have debit balances , The liability account and the stockholders equity should have credit balances.
A credit of $80 to the asset account means that the excess has been removed while a credit of $80 to another liability account provides for the shortage in the initial entry.
A credit of $80 to the stockholders account means that the shortage as a result of the error in the initial entries also been addressed.
Therefore the incorrect option is a debit entry of $80 to the stockholders equity account .
A consumer household cleaning products company, the Klean Kompany, has multiple products. Each is labeled with the Klean Kompany name, including Klean Kompany Disinfecting Wipes, Klean Kompany Kitchen Shine, and Klean Kompany Toilet Bowl Scrub.Which branding strategy is Klean Kompany using to build its brand?
Answer:
brand extension
Explanation:
Based on the information provided within the question it can be said that Klean Kompany is using the branding strategy known as brand extension. This is the process of using the same brand name that has already been established and is well known, for a variety of different product lines, including new products entering the market. Which is exactly what Klean Kompany is doing by adding their brand name on every single product they release into the market. This is done in order to let people know that the product is from that brand and convince them to buy it.
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows:
Year 1
1. Sold $1,348,100 of merchandise (that had cost $981,200) on credit, terms n/30.
2. Wrote off $20,700 of uncollectible accounts receivable.
3. Received $667,100 cash in payment of accounts receivable.
4. In adjusting the accounts on December 31, the company estimated that 1.60% of accounts receivable would be uncollectible.
Year 2
1. Sold $1,557,000 of merchandise (that had cost $1,347,300) on credit, terms n/30.
2. Wrote off $28,600 of uncollectible accounts receivable.
3. Received $1,241,900 cash in payment of accounts receivable.
4. In adjusting the accounts on December 31, the company estimated that 1.60% of accounts receivable would be uncollectible.
Required:
Prepare journal entries to record Liang’s Year 1 and Year 2 summarized transactions and its year-end adjustments to record bad debts expense.
Answer and Explanation:
The journal entries are shown below;
For the year 1
1. Accounts receivable $1,348,100
To Sales $1,348,100
(Being the sale of merchandise is recorded)
Cost of good sold $981,200
To Merchandise inventory $981,200
(Being the cost of merchandise is recorded)
2. Allowance for doubtful accounts $20,700
To Accounts receivable $20,700
(Being the written off amount is recorded)
3. Cash $6,67,100
To Accounts receivable $6,67,100
(Being the cash received is recorded)
d. Bad debts expense $31,264.80
To Allowance for doubtful accounts $31,264.80
(Being the bad debt expense is recorded)
The computation is shown below for bad debts
Sales $1,348,100
Less: cash collection -$667,100
Less: written off amount -$20,700
Ending balance of account receivable $660,300
1.60% of account receivable $10,564.80
Add: debit balance $20,700
bad debt expense $31,264.80
For the year 2
1. Accounts receivable $1,557,000
To Sales $1,557,000
(Being the sale of merchandise is recorded)
Cost of good sold $1,347,300
To Merchandise inventory $1,347,300
(Being the cost of merchandise is recorded)
2. Allowance for doubtful accounts $28,600
To Accounts receivable $28,600
(Being the written off amount is recorded)
3. Cash $1,241,900
To Accounts receivable $1,241,900
(Being the cash received is recorded)
d. Bad debts expense $33,184
To Allowance for doubtful accounts $33,184
(Being the bad debt expense is recorded)
The computation of the bad debt expense is shown below;
beginning balance of account receivable $660,300
Add: Sales $1,557,000
Less: cash collection -$1,241,900
Less: written off amount -$28,600
Ending balance of account receivable $948,600
1.60% of account receivable $15,148.80
Add: debit balance ($28,600 - $10,564.80) $18,035.20
Year end adjustment $33,184
When the cost method is used to account for an investment, the carrying value of the investment is affected by a.the earnings and dividend distributions of the investee b.the periodic net income of the investee c.the dividend distributions of the investee d.neither the earnings nor the dividends of the investee
Ginocera Inc. is a designer, manufacturer, and distributor of low-cost, high-quality stainless steel kitchen knives. A new kitchen knife series called the Kitchen Ninja was released for production in early 2016. In January, the company spent $600,000 to develop a late-night advertising infomercial for the new product. During 2016, the company spent $1,400,000 promoting the product through these infomercials, and $800,000 in legal costs. The knives were ready for manufacture on January 1, 2016.
Ginocera uses a job order cost system to accumulate costs associated with the kitchen knife. The unit direct materials cost for the knife is:
Hardened steel blanks
(used for knife shaft and blade) $4.00
Wood (for handle) 1.50
Packaging 0.50
The production process is straightforward. First, the hardened steel blanks, which are purchased directly from a raw material supplier, are stamped into a single piece of metal that includes both the blade and the shaft. The stamping machine requires one hour per 250 knives.
After the knife shafts are stamped, they are brought to an assembly area where an employee attaches the handle to the shaft and packs the knife into a decorative box. The direct labor cost is $0.50 per unit.
The knives are sold to stores. Each store is given promotional materials, such as posters and aisle displays. Promotional materials cost $60 per store. In addition, shipping costs average $0.20 per knife.
Total completed production was 1,200,000 units during the year. Other information is as follows:
Number of customers (stores) 60,000
Number of knives sold 1,120,000
Wholesale price (to store) per knife $16
Factory overhead cost is applied to jobs at the rate of $800 per stamping machine hour after the knife blanks are stamped. There were an additional 25,000 stamped knives, handles, and cases waiting to be assembled on December 31, 2016.
Required:
A. Prepare an annual income statement for the Kitchen Ninja knife series, including supporting calculations, from the information provided. Refer to the list of Amount Descriptions for exact wording of the answer choices for text entries.
Ginocera Inc.
Income Statement
For the Year Ended December 31, 2016
1
2
3
4 Selling expenses:
5
6
7
8
9 Administrative expenses:
10
11
12
B. Determine the balances in the work in process and finished goods inventories for the Kitchen Ninja knife series on December 31, 2016.
Amount Descriptions
Amount Descriptions
Cost of goods sold
Factory overhead
Gross profit
Income from operations
Infomercial campaign
Legal expenses
Loss from operations
Promotional materials
Sales
Shipping expenses
Total selling and administrative expenses
Total selling expenses
Work in process
Answer:
1. $432,000
2. Finished goods $776,000
Work in progress $230,000
Explanation:
GINOCERAINC. IncomeStatement For the Year Ended December31, 2016
Sales$17,920,000
(1,120,000 units × $16 )
Less Cost of goods sold10,864,000
(1,120,000 units × $9.70)
Grossprofit$7,056,000
Sellingexpenses:
Infomercial campaign $2,000,000
Promotional materials3,600,000.
(60,000 stores × $60)
Shipping expenses 224,000
(1,120,000 units × $0.20)
Total selling expenses$5,824,000
Administrativeexpenses:
Legal expenses 800,000
Total operating expenses 6,624,000
($5,824,000+800,000)
Income from operations $432,000
($7,056,000-6,624,000)
Calculation of the Manufacturing cost per unit of Knife is:
Direct materials:
Hardened Steel Blanks $4.00
Wood for handle $1.50
Packaging $0.50
Total direct materials $6.00
Direct labor $0.50
Factory overhead $3.20
($800÷250 knives perhour)
Total manufacturing cost per knife $9.70
2. The Finished Goods balance for year end December 31, 2016 will be:
(1,200,000 units – 1,120,000 units) × $9.70 =
=80,000×$9.70
=$776,000
Work in Process, for the year ended December 31, 2016 will be:
25,000 units × ($6.00 + $3.20)
25,000 units × $9.2
= $230,000.
Note that materials, stamping as well as factory overhead have been applied to the 25,000 units, but direct assembly labor has not been applied for these units.
An engineer has an income that puts him in the 25% federal income tax bracket and at the 10% state incremental tax rate. She has an opportunity to earn extra $500 by doing a small consulting job. What will be his effective tax rate on the additional income
Answer:
The answer is 32.5%
Explanation:
Solution
Recall that:
Engineer income tax =25%
Incremental tax rate =10%
Extra earnings =$500
Now, what ill be his effective tax rate on the additional income
Thus
Federal income tax = 500 * 25 % = $125
The state tax = (500 - 125) * 10 % = $37.50
Effective tax rate = (125 + 37.50) / $500
=162.50 /$ 500
= 0.325 or 32.5% that is (0.325 * 100)
Hence the effective tax rate is 32.5 %
Mr. Zeplin wants to make a cash gift to each of his five children, to each of their five spouses, and to each of his 13 grandchildren. Assume the taxable year is 2019. How much total wealth can he transfer to his descendants without making a taxable gift if he is an unmarried individual
Answer:
Total wealth transfer is $345000.
Explanation:
Given the number of children = 5
Total number of spouses = 5
Total number of grandchildren = 13
If the individual is unmarried then below is the calculation of wealth transfer to the descendants with the taxable gifts.
In 2018, an individual unmarried person can transfer wealth without tax or free of gift tax is $15000 per person. So the total number of persons to whom the wealth is to be transferred 5 + 5 + 13 = 23 persons.
Total wealth Mr. Zeplin transfer without tax = 15000 × 23 persons = $345000
PortaCom manufactures notebook computers and related equipment. PortaCom's product design group developed a prototype for a new high-quality portable printer. The new printer features an innovative design and has the potential to capture a significant share of the portable printer market. Preliminary marketing and financial analyses provided the following selling price, first-year administrative cost, and first-year advertising cost:
Selling Price $284 per unit
Administrative Cost $500,000
Advertising Cost $700,000
In the simulation model for the PortaCom problem, the preceding values are constants and are referred to as parameters of the model.
(a) An engineer on the product development team believes that first-year sales for the new printer will be 18,500 units. Using estimates of $50 per unit for the direct labor cost and $88 per unit for the parts cost, what is the first-year profit using the engineer's sales estimate?
(b) The financial analyst on the product development team is more conservative, indicating that parts cost may well be $101 per unit. In addition, the analyst suggests that a sales volume of 9,500 units is more realistic. Using the most likely value of $50 per unit for the direct labor cost, what is the first-year profit using the financial analyst's estimates?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Selling Price $284 per unit
Administrative Cost $500,000
Advertising Cost $700,000
(a) Units= 18,500
Direct labor= $50
Direct material= $88
Sales= 18,500*284= 5,254,000
Variable costs= (50 + 88)*18,500= (2,553,000)
Contribution margin= 2,701,000
Administrative Cost= (500,000)
Advertising Cost= (700,000)
Net operating income= 1,501,000
B)Units= 9,500
Direct labor= $51
Direct material= $101
Sales= 9,500*284= 2,698,000
Variable costs= (51 + 101)*9,500= (1,444,000)
Contribution margin= 1,254,000
Administrative Cost= (500,000)
Advertising Cost= (700,000)
Net operating income= 54,000
The Tinslow Co. has 125,000 shares of stock outstanding at a market price of $93 a share. The company has just announced a 5-for-2 stock split. How many shares of stock will be outstanding after the split
Answer:
312,500
Explanation:
A stock split increases the number of outstanding shares and decreases the value of shares.
A stock split is a form of returns given to shareholders in a corporation.
In a 5-for-2 split, for every 2 shares owned, shares would increase by 5 .
(125,000 × 5 ) / 2 = 312,500
I hope my answer helps you
On January​ 1, 2018, the Prepaid Insurance account of​ Dogwood, Inc. had a beginning balance of $ 1,800. Three months of insurance premiums remain in this beginning balance. On February​ 21, 2018, the company paid an annual insurance premium in the amount of $ 4,100 for the period beginning March 1. On February​ 28, 2018, the balance in Prepaid Insurance is $ 1,200.A. TrueB. False
Answer:
B. False
Explanation:
Beginning balance
-Period of policy= expired 2 months
-Period of unexpired insurance = 1 month (Out of 3 month, Insurance premium for period "Jan 1 to Feb 28" is expired)
Amount in prepaid insurance insurance= $1800 * 1/3 = $600
Current balance
Period = "0" since period of coverage will start from 1 march
Period of unexpired insurance = 12
Amount in prepaid insurance = 4,100
Thus, Total amount in prepaid insurance for the beginning and Current period= $600 + $4,100 = $4,700
The amount in prepaid insurance is $4700, hence the balance as stipulated as Prepaid Insurance = $ 1,200 is false
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below.
The company sells many styles of earrings, but all are sold for the same price- $13 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings):
January (actual)... 20,800 June (budget)... 50,800
February (actual)... 26,800 July (budget)... 30,800
March (actual)... 40,800 August (budget ... 28,800
April (budget)... 65,800 September (budget) 25,800
May (budget)... 100,800
The concentration of sales before and during May is due to Mother's Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month.
Suppliers are paid $7 for a pair of earrings. One-half of a month's purchases are paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 20% of a month's sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible.
Monthly operating expenses for the company are given below:
Variable:
Sales commissions..................6% of sales
Fixed:
Advertising.....................$199,200
Rent................................17,200
Salaries........................105,200
Utilities.........................6,200
Insurance......................2,200
depreciation.................13,200
Insurance is paid on an annual basis, in November of each year.
The company plans to purchase $15,400 in new equipment during May and $39,200 in new equipment during June; both purchases will be for cash. The company declares dividends of $11,000 each quarter, payable in the first month of the following quarter.
A listing of the company's ledger accounts as of March 31 is given below:
Assets
Cash.............................................................................$ 130,400
Accounts Receivable($34,840 February sales; $424,320
March Sales)................................. 459,1600
Inventory...................................................................... 184,240
Prepaid insurance......................................................... 21,800
Property and equipment(net)....................................... 861,200
Total Assets................................................................. $1,656,800
Liabilities and Stockholders Equity
Accounts Payable......................................................... $177,800
Dividends Payable......................................................... 11,000
Capital stock................................................................. 880,000
Retained Earnings......................................................... 588,000
Total liabilities and stockholders equity $1,656,800
The company maintains a minimum cash balance of $55,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.
The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $55,000 in cash.
Required
Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets:
a. A sales budget, by month and in total
b. A schedule of expected cash collections from sales, by month and in total.
c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.
d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.
2. A cash budget. Show the budget by month and in total.
Answer:
Earrings Unlimited1a. Sales Budget
April May June Total
Credit Sales in unit 65,800 100,800 50,800 217,400
Selling Price $13 $13 $13 $13
Sales Value $855,400 $1,310,400 $660,400 $2,826,200
April May June Total
Sales Commission 6% $51,324 $78,624 $39,624 $169,572
1b. Expected Cash Collections:
April May June Total
20% month of sale $171,080 $262,080 $132,080 $565,240
70% following month 371,280 598,780 917,280 1,887,340
10% second month 34,840 53,040 85,540 173,420
Total $577,200 $913,900$1,134,900$2,626,000
1c. Merchandise Purchase Budget
April May June Total
Ending Inventory 40,320 20,320 12,320 12,320
Units Sold 65,800 100,800 50,800 217,400
Units available 106,120 121,120 63,120 229,720
Beginning Inventory 26,320 40,320 20,320 26,320
Purchases (units) 79,800 80,800 42,800 203,400
Beginning Inventory $184,240 $282,240 $142,240 $184,240
Purchase ($) $558,600 $565,600 $299,600 $1,423,800
Cost (goods available)$742,840 $847,840 $441,840 $1,608,040
Less Ending Inventory$282,240 $142,240 $86,240 $86,240
Cost of goods sold $460,600$705,600 $355,600 $1,521,800
1d. Expected Cash Disbursements for Merchandise Purchases:
April May June Total
Purchase ($) $558,600 $565,600 $299,600
50% 1st month $279,300 $282,800 $149,800 $711,900
50% 2nd month $177,870 $279,300 $282,800 $739,970
Total Disbursements$457,170 $562,100 $432,600 $1,451,870
2d. Cash Budget
April May June Total
Beginning Balance $130,400 $55,306 $55,282 $130,400
Cash Collections $577,200 $913,900 $1,134,900 $2,626,000
Cash Disbursements:
Merchandise ($457,170) ($562,100) ($432,600) ($1,451,870)
Sales Commission ($51,324) ($78,624) ($39,624) ($169,572)
Other fixed costs($327,800) ($327,800) ($327,800) ($983,400)*
Equipment purchase ($15,400) ($39,200) ($54,600)
Dividends paid ($11,000) ($11,000)
Bank Loan $195,000 $70,000 ($265,000) $0
Loan Interest ($2,650) ($2,650)
Minimum balance $55,306 $55,282 $83,308 $83,308
Earrings Unlimited INCOME STATEMENT for the quarter to June 30:
Sales $2,826,200
Cost of goods sold 1,521,800
Gross Profit $1,304,400
Less: Expenses:
Sales Commission 169,572
Other fixed costs 983,400
Insurance Expenses 6,600
Bank Loan Interest 2,650
Depreciation 39,600 $1,201,822
Net Income $102,578
Retained Earnings b/f $588,000
Dividends ($11,000)
Retained Earnings c/f $679,578
Earrings Unlimited BALANCE SHEET as of June 30:
Assets:
Current Assets:
Cash $83,308
Accounts Receivable $659,360
Inventory $86,240
Prepaid Insurance $15,200 $844,108
Noncurrent Assets:
Property & Equipment $915,800
Depreciation $39,600 $876,200
Total Assets $1,720,308
Liabilities + Equity:
Liabilities:
Accounts Payable $149,730
Dividends Payable $11,000 $160,730
Capital Stock $880,000
Retained Earnings $679,578 $1,559,578
Total Liabilities + Equity $1,720,308
Explanation:
a) March Purchases:
Ending Inventory in units = 26,320(65,800 x 40%)
Units sold = 40,820
Units available for sale = 67,140 (26,320 + 40,820)
Less Beginning Inventory = 16,320 (40,800 x 40%)
Purchases = 50,820 units
Beginning Inventory = $114,240 (40,800 x $7 x 40%)
Purchases = $355,740 (50,820 x $7)
Cost of goods available $469,980
Less Closing Inventory 184,240 (26,320 x $7)
Cost of goods sold $285,740
b) Accounts Receivable
Beginning Balance $459,160
Sales $2,826,200
Cash Receipts ($2,626,000)
Ending Balance $659,360
c) Accounts Payable
Beginning Balance $177,800
Purchases $1,423,800
Cash Disbursements ($1,451,870)
Ending Balance $149,730
d) Sales Budget January February March
Credit sales in unit 20,800 26,800 40,800
Selling price $13 $13 $13
Sales Value $270,400 $348,400 $530,400
e) A master budget combines other smaller budgets within the business and turns them into one overall budget, which gives a comprehensive overview of the entity's finances. The master budget includes the HR, marketing, and all other departmental budgets to produce an overall single budget.
On January 1, Wei company begins the accounting period with a $30,000 credit balance in allowance for doubtful accounts. a. On February 1, the company determined that $6,800 in customer accounts was uncollectible; specifically, $900 for Oakley Co. and $5,900 for Brookes Co. Prepare the journal entry to write off those two accounts. b. On June 5, the company unexpectedly received a $900 payment on a customer account, Oakley Company, that had previously been written off in part a. Prepare the entries necessary to reinstate the account and to record the cash received.
Answer:
Journal Entries that are required are given below
Explanation:
On February 1(Write off) Debit Credit
Allowance for doubtful debt $6800
Account receivable (Oakley Co.) $900
Account receivable (Brookes Co.) $5900
On June 5 (Reinstating the account) Debit Credit
Account receivable (Oakley Co.) $900
Allowance for doubtful debt $900
On June 5 (Recording the cash received) Debit Credit
Cash $900
Account Receivable(Oakley Co.) $900
With respect to the unearned income from services, which of the following is true? a.An accrual basis taxpayer can spread the income over the period services are to be provided if all of the services will be completed within three years following the year of receipt. b.The treatment of unearned income is the same for tax and financial accounting for both cash and accrual basis taxpayers. c.A cash basis taxpayer must report all of the income in the year received. d.An accrual basis taxpayer can spread the income over the period services are to be provided on a contract for three years or less. e.None of these choices are correct.
Answer:
c. A cash basis taxpayer must report all of the income in the year received.
Explanation:
As a standard, all individuals and business entities are required by law to pay their taxes to the government at a specific period of time.
With respect to the unearned income from services, a cash basis taxpayer must report all of the income in the year received, whether as property or in cash. This simply means that, a cash basis taxpayer can neither deduct promissory notes or checks as payments nor report receivables as income because all of the expenses and income must be reported in the year they were received or paid.
However, not all taxpayers are permitted to use the cash basis method of reporting, these include C corporations, tax shelter, partnership with a C corporation etc.
Carl purchased an apartment complex for $2.6 million on March 17 of year 1. of the purchase price, $1,050,000 was attributable to the land the complex sits on. He also installed new furniture into half of the units at a cost of $75,000. What is Carl's allowable depreciation deduction for his real property for years 1 and 2? (Round your final answers to the nearest whole dollar amount.)
Answer:
total depreciation year 1 = $71,358
total depreciation year 2 = $80,358
Explanation:
Land cannot be depreciated, therefore Carl can only depreciate the building's cost = $2,600,000 - $1,050,000 = $1,550,000
Rental property can be depreciated at a fixed rate of 3.636% per year during 27.5 years. Depreciation per year for the building = $56,358
Furniture on rental property can be depreciated on a 5 year basis using a MACRS table and half year convention:
depreciation year 1 = 20% x $75,000 = $15,000
depreciation year 2 = 32% x $75,000 = $24,000
total depreciation year 1 = $56,358 + $15,000 = $71,358
total depreciation year 2 = $56,358 + $24,000 = $80,358
For each of the following, journalize the necessary adjusting entry:
(a) A business pays weekly salaries of $22,000 on Friday for a five-day week ending on that day. Journalize the necessary adjusting entry at the end of the fiscal period, assuming that the fiscal period ends (1) on Tuesday, (2) on Wednesday.
(b) The balance in the prepaid insurance account before adjustment at the end of the year is $18,000. Journalize the adjusting entry required under each of the following alternatives:(1) the amount of insurance expired during the year is $5, 300, (2) the amount of unexpired insurance applicable to a future period is $2, 700.
(c) On July 1 of the current year, a business pays $54,000 to the city for license taxes for the coming fiscal year. The same business is also required to pay an annual property tax at the end of the year. The estimated amount of the current year's property tax allocable to July is $4, 800. (1) Journalize the two adjusting entries required to bring the accounts affected by the taxes up to date as of July 31. (2) What is the amount of tax expense for July?
(d) The estimated depreciation on equipment for the year is $32,000.
Answer: Please see explanation column for answer
Explanation:
1.Journal to record the necessary adjusting entry at the end of the fiscal period on Tuesday,
Account Debit Credit
Salaries expense $8,800
Salaries payable $8,800
Calculation for for a five-day week ending tuesday
22,000 x 2/5 = $8,800
2.Journal to record the necessary adjusting entry at the end of the fiscal period on wednesday
Account Debit Credit
Salaries expense $13,200
Salaries payable $13,200
Calculation for for a five-day week ending Wednesday
22,000 x 3/5 = $13,200
b1.Journal to record the amount of insurance expired during the year
Account Debit Credit
Insurance expense $5,300
Prepaid Insurance $5,300
b2Journal to record the amount of insurance expired during the year
Account Debit Credit
Insurance expense $15,300
Prepaid Insurance $15,300
Calculation: Insurance expired = balance - unexpired insurance = 18,000 - 2,700=$15,300
c1)Journal to record the licence taxes expired for the year
Account Debit Credit
License tax expense $4500
Prepaid tax $4500
Calculations= license tax per year = $54,000/12= $4500
c2)Journal to record the Property taxes allocable to july at $4,800
Account Debit Credit
Property tax expense $4800
Property tax payable $4800
d)Journal to record the estimated depreciation on equipment for the year at $32,000.
Account Debit Credit
depreciation expense $32,000
Accumulated depreciation $32,000