Answer:
1. Break-even point in units sold = Fixed cost/Contribution margin
= $1,200,000/$20 = 60,000 units
2-a. First Year Second Year Third Year
Unit variable product costs:
Direct Materials = $20
Direct Labor = $12
Manufacturing Overhead = $4
Product costs $36 $36 $36
Selling and admin. cost $2
Total variable mfg. costs = $38 $38 $38
b. Income Statements:
First Year Second Year Third Year
Sales unit 60,000 50,000 65,000
Sales revenue $3,480,000 $2,900,000 $3,770,000
Variable cost of goods sold:
Manufacturing 2,160,000 1,800,000 2,340,000
Product contribution $1,320,000 $1,100,000 $1,430,000
Selling and administrative 120,000 100,000 130,000
Contribution margin $1,200,000 $1,000,000 $1,300,000
Total fixed costs 1,200,000 1,200,000 1,200,000
Net income $0 ($200,000) $100,000
3. Absorption costing:
First Year Second Year Third Year
Unit product costs:
Variable cost per unit $36 $36 $36
Total variable cost $2,160,000 $2,700,000 $1,440,000
Fixed manufacturing 960,000 960,000 960,000
Total manufacturing $3,120,000 $3,660,000 $2,400,000
Production units 60,000 75,000 40,000
Unit product costs $52 $48.80 $60
b. Income Statements:
First Year Second Year Third Year
Sales unit 60,000 50,000 65,000
Sales revenue $3,480,000 $2,900,000 $3,770,000
Cost of goods sold 3,120,000 2,440,000 3,900,000
Gross profit $360,000 $460,000 ($130,000)
Selling and admin. 240,000 240,000 240,000
Net income (loss) $120,000 $220,000 ($370,000)
4. The net operating income from absorption costing seem counterintuitive. The reason is because of the use of different measures; Requirement 2 is based on variable product costs while requirement 3 is based on absorption product costs.
Explanation:
a) Data and Calculations:
Variable Cost Per Unit:
Manufacturing:
Direct Materials = $20
Direct Labor = $12
Variable Manufacturing Overhead = $4
Variable manufacturing costs = $36
Variable Selling and Administrative = $2
Total variable costs = $38
Fixed costs per year:
Fixed manufacturing overhead = $960,000
Fixed selling and administrative expenses = $240,000
Total fixed costs = $1,200,000
Production and Sales Units
First Year Second Year Third Year
Production units 60,000 75,000 40,000
Sales unit 60,000 50,000 65,000
Selling price per unit = $58
Variable cost per unit = 38
Contribution margin $20
Plum Corporation will begin operations on January 1. Earnings for the next five years are projected to be relatively stable at about $80,000 per year. The shareholders of Plum are in the 33% tax bracket. With the given scenarios, pick the best choice and explain why.
A. Assume that Plum will reinvest its after-tax earnings in the growth of the company, should Plum Corp operate as a C Corporation or an S Corporation?
B. Assume that Plum will distribute its after-tax earnings each year to its shareholders. Should Plum operate as a C corporation or an S Corporation?
Answer:
Plum Corporation
The best choice is:
B. Assume that Plum will distribute its after-tax earnings each year to its shareholders. Should Plum operate as a C corporation or an S Corporation?
Explanation:
a) Tax is the greatest difference existing between a C corporation and an S corporation. With a C corporation, the earnings are taxed twice. When the C corporation earns income, it is taxed as a corporation. When it distributes the after-tax earnings, the owners are taxed again in income tax. This does not happen with an S corporation. The S corporation does not pay corporate tax, instead, its owners pay their individual income taxes because the corporation's incomes are passed through the members.
Free Corporation acquired machinery at a cost of $1,250,000 on January 1, 2018. Free Corporation adopted the double-declining balance method. They determined that the estimated useful life was ten years, with no residual value. At the beginning of 2021, a decision was made to change to the straight-line method of depreciation for the machinery. The depreciation expense for 2021 would be
Answer:
$91,429
Explanation:
Depreciation using the double-declining balance method is calculated as follows :
Depreciation expense = 2 x SLDP X BVSLDP
where,
SLDP = 100 ÷ useful life
= 100 ÷ 10
= 10%
therefore,
2018
Depreciation expense = 2 x 10% x $1,250,000 = $250,000
2019
Depreciation expense = 2 x 10% x ($1,250,000 - $250,000) = $200,000
2020
Depreciation expense = 2 x 10% x ($1,250,000 - $250,000 - $200,000 = $160,000
2021
Step 1 : New Depreciable Amount calculation
New Depreciable Amount = Cost - Accumulated depreciation to date
where,
Accumulated depreciation = total depreciation to date
= $250,000 + $200,000 + $160,000
= $610, 000
therefore
New Depreciable Amount = $1,250,000 - $610, 000
= $640,000
Step 2 : New useful life calculation
New useful life = 10 - 3 = 7
Step 3 : Depreciation expense
Depreciation expense = New Depreciable Amount ÷ Estimated useful life
= $640,000 ÷ 7
= $91,429
The depreciation expense for 2021 would be $91,429
f r e e
p o i n t s . y o u r we l c o m e
Answer:
THANKSSSSSSSSSSSSSSSSSSS SO MUCH
have a good day :)
Explanation:
Answer:
Tysm sista!!![tex] \infty \infty \infty \infty \infty \infty [/tex]
Setting aside your answer to the question on Abraham's manufacturing overhead, assume that the actual cost of overhead is $280,000, the applied manufacturing overhead in 2020 is $300,000 (as originally stated in the problem), and the cost of goods sold before considering the amount of overapplied or underapplied overhead is $900,000. Compute the cost of goods sold for 2020 after adjusting for the overapplied/underapplied overhead (do not prorate). Show your work and/or explain your answer in order to receive full credit.
Answer:
$880,000
Explanation:
The amount of over-applied or under-applied overheads is usually used to adjust the Cost of Goods Sold amount.
Since, Applied Overheads ($300,000) > Actual Overheads ($280,000), we say overheads are over-applied.
Over-application = $300,000 - $280,000 = $20,000
Adjusted Cost of Goods Sold :
Cost of Goods Sold before adjustments $900,000
Less over-applied overheads ($20,000)
Cost of Goods Sold $880,000
Therefore, after adjusting for the overapplied overheads the cost of goods sold amounts to $880,000
Mike is a self-employed graphic designer his net earnings from his commissioned work this year are 41200 what is he is s e c a deduction
Answer:5821.60
Explanation:
Just done it to
Required information Use the following information for the Exercises below. Skip to question [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,300 units at $375 each) $ 3,862,500 Variable costs (10,300 units at $300 each) 3,090,000 Contribution margin 772,500 Fixed costs 600,000 Pretax income $ 172,500 Exercise 18-16 Break-even LO P2 1. Compute Hudson Co.'s break-even point in units. 2. Compute Hudson Co.'s break-ev
Answer:
See
Explanation:
1. Break even point in units
= Fixed cost / Selling price per unit - Variable cost per unit
Given that
Fixed cost = $600,000
Selling price per unit = $375
Variable cost per unit = $300
Break even point in units = $600,000 / ($375 - $300)
= $600,000 / $75
= 8,000 units
2. Break even in sales
= Fixed cost / Selling price unit - Variable cost per unit × Selling price per unit.
=[ $600,000 / ($375 - $300) ] × $375
= 8,000 × $375
= $3,000,000
how do occupancy rate and potential gross rate relate
Explanation:
Occupancy rate is the ratio of rented or used space to the total amount of available space.
The potential gross rate is the total rental income a property can produce if all units were fully leased and rented at market rents with a zero vacancy rate.
They relate through that they both allow for renting?
Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows:
Variable costs per unit:
Fixed costs:
Direct materials $120
Factory overhead $250,000
Direct labor 30
Selling and administrative expenses 150,000
Factory overhead 50
Selling and administrative expenses 35
Total variable cost per unit $235
Crystal Displays Inc. is currently considering establishing a selling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 15% return on invested assets.
Required:
Determine the amount of desired profit from the production and sale of flat panel displays.
Answer:
Crystal Displays Inc.
The amount of desired profit from the production and sale of the flat panel displays is:
= $225,000
Explanation:
a) Data and Calculations:
Investment in assets = $1,500,000
Production and sales units = 5,000
Cost of production and sales:
Variable costs per unit:
Direct materials $120
Direct labor 30
Factory overhead 50
Selling and
administrative expenses 35
Total variable cost per unit $235
Fixed costs:
Factory overhead $250,000
Selling and administrative expenses 150,000
Total fixed costs $400,000
Total production costs:
Variable production costs = $1,000,000 (5,000 * $200)
Fixed factory overhead 250,000
Total production costs $1,250,000
Total selling and administrative expenses:
Variable selling and admin. $175,000
Fixed selling and admin. 150,000
Total selling and admin. exp. $325,000
Total costs of production and sales = $1,575,000
Target return on invested assets = 225,000 ($1,500,000 * 15%)
Total expected sales revenue = $1,800,000
Price per unit = $360 ($1,800,000/5,000)
2. Identify four skills that you will need to actively participate in meetings.
Answer:
Particpating, having to ability to drink a lot of coffe, being energetic, concertrating.
Explanation:
On January 1, a company issues bonds dated January 1 with a par value of $620,000. The bonds mature in 3 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The bonds are sold for $596,000. The journal entry to record the first interest payment using straight-line amortization is: Multiple Choice Debit Interest Expense $17,700; debit Discount on Bonds Payable $4,000; credit Cash $21,700. Debit Interest Payable $21,700; credit Cash $21,700. Debit Interest Expense $25,700; credit Discount on Bonds Payable $4,000; credit Cash $21,700. Debit Interest Expense $21,700; credit Premium on Bonds Payable $4,000; credit Cash $17,700. Debit Interest Expense $21,700; credit Cash $21,700.
Answer:
Debit Interest Expense $25,700; credit Discount on Bonds Payable $4,000; credit Cash $21,700.
Explanation:
The journal entry to record the first interest payment is given below:
Bond interest expense $25,700
To Discount on bond payable (($620,000 - $596,000) ÷ 6 years) $4,000
To Cash ($620,000 × 7% ÷ 2) $21,700
(being the first interest payment is recorded)
Here interest expense is debited as it increased the expense and credited the discount and cash as it decreased the liabilities and assets
Veldre Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $ 90,000 Contribution to the plan 105,000 Prior service cost amortization 10,000 Actual and expected return on plan assets 64,000 Benefits paid 40,000 Plan assets at January 1, 2020 640,000 Projected benefit obligation at January 1, 2020 700,000 Accumulated OCI (PSC) at January 1, 2020 150,000 Interest/discount (settlement) rate 10 % Compute the pension expense for the year 2020.
Answer:
$106,000
Explanation:
Computation for the pension expense for the year 2020.
PENSION EXPENSE
Service cost$ 90,000
1nterest cost $70,000
($700,000 * 0.10)
Less Actual return ($64,000)
Amortization of PSC $10,000
2020 PENSION EXPENSE $106,000
Therefore the pension expense for the year 2020 is $106,000
Assume the following: The standard price per pound is $2.00. The standard quantity of pounds allowed per unit of finished goods is 4 pounds. The actual quantity of materials purchased and used in production is 50,000 pounds. The actual purchase price per pound of materials was $2.25. The company produced 13,000 units of finished goods during the period. What is the materials spending variance
Answer:
Direct material price variance= $12,500 unfavorable
Explanation:
Giving the following formula:
The standard price per pound is $2.00.
The actual quantity of materials purchased and used in production is 50,000 pounds.
The actual purchase price per pound of materials was $2.25.
To calculate the direct material price (spending) variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2 - 2.25)*50,000
Direct material price variance= $12,500 unfavorable
On January 21, the column totals of the payroll register for Great Products Company showed that its sales employees had earned $14,760, its truck driver employees had earned $10,330, and its office employees had earned $8,260. Social Security taxes were withheld at an assumed rate of 6.2 percent, and Medicare taxes were withheld at an assumed rate of 1.45 percent. Other deductions consisted of federal income tax, $4,002; and union dues, $540.
Required:
Determine the amount of Social Security and Medicare taxes withheld and record the general journal entry for the payroll, crediting Salaries Payable for the net pay. All earnings were taxable. Round amounts to the nearest penny
Answer:
a. Social Security Taxes
= Total wages * 6.2%
= (14,760 + 10,330 + 8,260) * 6.2%
= $2,067.70
b. Medicare taxes:
= Total wages * 6.2%
= (14,760 + 10,330 + 8,260) * 1.45%
= $483.58
c. Journal entry:
Date Account Title Debit Credit
Jan, 21 Salaries Expense (Sales) $14,760
Salaries Expense (Office) $ 8,260
Salaries Expense (Truck driver) $10,330
Social Security Tax Payable $2,067.70
Medicare Tax payable $ 483.58
Federal income tax payable $ 4,002
Union Dues payable $ 540
Salaries Payable $26,256.72
If a Florida strawberry wholesaler operates in a perfectly competitive market, that wholesaler will have a _____ share of the market, and consumers will consider her strawberries and her competitors' strawberries to be _____. Therefore, _____ advertising will take place in this market. small; standardized; little or no
Answer:
b) small; standardized (commodity); little, if any
Explanation:
THESE ARE THE OPTIONS FOR THE QUESTION
a] large; standardized (commodity); no
b] small; standardized (commodity); little, if any
c] small; differentiated; no
d] large; differentiated; extensive
Pure or perfect competition can be regarded as theoretical market structure whereby some of criterias are met. Such criteria are;
✓ identical product( homogeneous) are been sold by
all firms
✓All the firms involved are price takers(
market price of their product cannot be influenced by them)
✓ There is no influence of Market on prices. Therefore, in a scenerio whereby a Florida strawberry wholesaler operates in a perfectly competitive market, that wholesaler will have a small share of the market, and consumers will consider her strawberries and her competitors' strawberries to be standardized (commodity) Therefore, no advertising will take place in this market.
Three months ago, CSG stock was selling for $44.25 a share. At that time, you purchased three put options on the stock with a strike price of $45 per share and an option price of $1.75 per share. The option expires today when the value of the stock is $42.50 per share. What is your net profit or loss on this investment
Answer:
$225
Explanation:
Calculation to determine your net profit or loss on this investment
Using this formula
Net profit or Loss= (Strike price - Value of stock at expiration - Premium paid) x 3 x 100
Let plug in the formula
Net profit or Loss= ($ 45 - $ 42.50 - ß) x 300
Net profit or Loss= $ 225
Therefore your net profit on this investment is $225
Instruction. Use insertion about to guido
discussion. Give
your
de a detailed description of the management conces and 17 entral
resources needed by the business to achieve its objectives
Answer:
Resources needed by a business to achieve it objectives include but are not limited to the following:
Human Resources: No matter how beautiful a business plan is, it is as worthless as the document on which it is written if it fails to attract the right set of human resources to help bring it to life.
Financial Resource: In business, there is a common cliche that is ever relevant and it says: Cash is King. Whether it is self-owned finance, equity financing, debt financing, grants, etc every business needs money to finance its operations.
Place of Operation
This can either be a physical space or cyber space or both. However, a business needs a space to operate from. In the wake of the recent pandemic, there has been a strong shift and preference towards a combination of domestic space and electronic space as places from where businesses run their operations. This of course is dependent on the nature of the business.
Machinery and Equipment
The type required by the business is directly related to the nature of the business. Whilst a Maize farmer will require land and tractors etc, an IT company will spend more in favor of electronic equipment, laptops, servers, etc.
Vehicle
The question here is whether it is owned or not. It is a matter of what the business requires in order to transport human resources, its input and output from one location to another with ease and at the lowest cost possible.
Some companies in-source their transportation needs. Others out-source them.
Supplies
These may include but are not limited to stationery, fuel, spare parts, refreshment etc.
Utility
Examples of these are:
Electric power supplyInternet connectivityCommunication services etcOther resources include:
Strong political affiliationPatentsCopyrightsLicenses and PermitsTrademarksJoint Venture RelationshipsPartnershipsetc
Cheers
Write an essay about the importance of clearances when applying for a job. need ASAP
Answer:
Background investigations are an essential aspect of the vetting process for both employees and potential employees of the US Federal, State, and Local governments and private sector companies that provide support, services and products to these government entities. These investigations are conducted to determine the suitability of the subject of the investigation to hold a security clearance for a position impacting our national security. Many of the individuals hired by the aforementioned organizations are placed in positions which require a security clearance. Based on the type of clearance, the person has access to information that is crucial to implementation of the missions of US government entities and private.
II. INSIDER THREATS
The purpose of US Federal Government background investigations is to determine if individuals are deemed acceptable for employment within the US government, and more importantly, prevent individuals of malafied intent from gaining access to a position impacting the US national security. Properly executed background investigations can greatly diminish the possibility of a potential insider threat obtaining access to classified information, which can cause the US great harm and the US government great embarrassment.
Prior to the founding of the United States of America, the insider threat has hindered the security of a nation. It is written that the outward destruction of a country results from the inward turmoil of its government. Numerous historical accounts of internal conflicts endangering the welfare of countries are present in the history books of most countries. In most instances, the conflict occurred within the governmental structure of the nation. Regarding internal threats, the US government is not immune from this imminent danger. Constantly, there are numerous threat to US government operations that are undetected. Although the US government Most recently, the breach of security of former National Security Agency (NSA) employee, Edward Snowden, and the ongoing saga of events surrounding his dubious departure from his home country have permeated the media of countries around the world. The Snowden case is “the latest.
Explanation:
Can you give me brainiest thanks
Hamrick Industries makes and sells two products. The demand for both products is unlimited. Product A has a contribution margin of $7.70 per unit. Product B has a contribution margin of $2.64 per unit. The same machines are used to produce both products. Product A requires 0.33 machine hours and product B requires 0.20 machine hours. Which product should the company make and sell
Answer:
C. Product A because the contribution margin per MH is $23.33.
Explanation:
The computation is shown below:
Particulars Product A Product B
Contribution margin per unit $7.70 $2.64
Divide by machine hours per unit 0.33 0.20
Contribution margin per MH $23.33 $13.20
The company should make and sell the product A as in this the contribution margin per machine hour would be high as compared with the product B
A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 Skip to question [The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $540,000, and factory payroll cost in April is $388,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $25,000; factory rent, $38,000; factory utilities, $23,000; and factory equipment depreciation, $61,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of the three jobs worked on in April follow.
Job 306 Job 307 Job 308
Balances on March 31
Direct materials $28,000 $44,000
Direct labor 23,000 17,000
Applied overhead 11,500 8,500
Costs during April
Direct materials 138,000 205,000 $115,000
Direct labor 104,000 155,000 104,000
Applied overhead ? ? ?
Status on April 30 Finished (sold) Finished (unsold) In process
Required:
Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31).
Answer:
Marcelino Co.
Total production cost incurred for April and the total cost assigned to each job:
Job 306 Job 307 Job 308 Total
Total production cost
incurred for April $294,000 $437,500 $271,000 $1,002,500
Total cost assigned $356,500 $507,000 $271,000 $1,134,500
Explanation:
a) Data and Calculations:
March 31 inventory of
raw materials = $88,000
April costs:
Raw materials purchases = $540,000
Factory payroll cost = $380,000
Overhead costs incurred = $206,000
Total costs = $1,214,000
April ending WIP inventory 271,000
Total cost incurred $943,000
Overhead costs incurred:
Indirect materials = $59,000
Indirect labor = $25,000
Factory rent = $38,000
Factory utilities = $23,000
Factory equipment depreciation = $61,000
Total factory overhead = $206,000
Predetermined overhead rate = 50% of DLC
Sales of Job 306 in April = $655,000 cash
Job 306 Job 307 Job 308 Total
Balances on March 31
Direct materials $28,000 $44,000 $72,000
Direct labor 23,000 17,000 40,000
Applied overhead 11,500 8,500 20,000
Total Beginning WIP $62,500 $69,500 $0 $132,000
Costs during April
Direct materials 138,000 205,000 $115,000 458,000
Direct labor 104,000 155,000 104,000 363,000
Applied overhead 52,000 77,500 52,000 181,500
Total production cost
incurred for April $294,000 $437,500 $271,000 $1,002,500
Total cost assigned $356,500 $507,000 $271,000 $1,134,500
Status on April 30 Finished (sold) Finished (unsold) In process
Job 306 Job 307 Job 308
On January 1, 2020, Franchisee Inc. enters into a contract with Italian Fine Dining Inc. for the right (beginning immediately) to operate an Italian Fine Dining restaurant and receive on-going consulting services for a four-year period. The upfront fee of $100,000 also includes specialized equipment for $12,000. The standalone selling price of the franchise services and specialized equipment are $88,000 and $12,000, respectively. The equipment (with a cost of $9,000) was transferred to the franchisee on March 1, 2020. Determine the amount of revenue to recognize for Italian Fine Dining Inc. on December 31, 2020. Group of answer choices
Answer: $22,000
Explanation:
The total revenue to be recognized by Italian Fine Dinning Inc. is the standalone selling price for the franchise services which is $88,000.
As this contract is for a four year period, Italian Fine Dinning Inc will have to recognize the above revenue over a period of 4 years.
Revenue in December 2020 will therefore:
= 88,000 / 4
= $22,000
Which of the following reflect the balances of prepayment accounts prior to adjustment?
Answer:
The answer is Balance sheet accounts are overstated and income statement accounts are understated.
Explanation:
The December Customer Survey indicates how customers perceived the products in the segment. The survey evaluates the product against the buying criteria. Zero indicates the product met none of the criteria as of December 31, however it had a higher score earlier in the year. Which of the following conditions does not contribute to a perfect score of 100 for a product?
1) Product was priced at the bottom of the range.
2) Product was perfectly positioned (because the segment moves each month, this can occur only once each year).
3) Product had 100% Awareness and 100% Accessibility.
4) All of these are required for a 100 customer satisfaction.
Answer:
2) Product was perfectly positioned (because the segment moves each month, this can occur only once each year).
Explanation:
The following conditions that contribute 100 as a perfect score is
a. The product should be priced at the bottom range
b. The product contains 100% awareness & 100% accessibility
c. The customer satisfaction needed 100
But the product that is perfect positioned so the same would not be contributed as 100%
Since ages & distance from the ideal spots varies so the score varies month to months
A local jacket distributor expects to sell 9,000 black fleece jackets in a year. Assume that EOQ model assumptions are valid. Each jacket costs $50, ordering cost is $100 per order, and holding cost is 1 dollar per jacket per month. What is the annual inventory cost (excluding purchasing cost) if 500 jackets are ordered at a time
Answer: $4,800
Explanation:
First find the Annual holding cost:
= Average inventory * Cost of holding a unit
= 500/2 * 1 * 12 months
= $3,000
Then find the Annual ordering cost:
= Expected units to be sold/ Units ordered * Ordering cost
= 9,000/500 * 100
= $1,800
Annual Inventory cost = Annual holding cost + Annual ordering cost
= 3,000 + 1,800
= $4,800
For journal entries in this assignment, enter AR for Accounts Receivable, ADA for Allowance for Doubtful Accounts, BAD for Bad Debt Expense, REV for Sales Revenue, and CASH for Cash. Please be careful as you type, because Blackboard is not forgiving! Enter all numeric answers in whole dollars but without a $.
Priestly Inc. records sales on account of $120,000 during the month of June. The company estimates bad debt expense as of 3% of credit sales.
A. Show the journal entry for the June sales on account (enter account name from the choices in the general instructions above, and then the amount).
o Debit: [a] [b]
o Credit: [c] [d]
B. Show the journal entry for June's bad debt expense.
o Debit: [e] [f]
o Credit: [g] [h]
C. Assuming Priestly's opening balance of Accounts Receivable on June 1 was $0, what is its balance of net Accounts Receivable after the two entries above?
Just before closing its books on June 30, Priestly learns that one of its customers, the McKay Company, has run into financial difficultly and cannot pay an invoice totaling $2,300. Priestly decides to write off McKay's account.
i. Show the journal entry for the write-off.
o Debit: [j] [k]
o Credit: [U] [m]
ii. What is Priestly's balance of net Accounts Receivable after the write-off? [
On July 15, Priestly is pleasantly surprised to receive a check for $1,200 from McKay with a note saying the remainder of the balance due will be sent in two weeks.
A. Show the journal entry to reinstate the account for which payment has been received.
o Debit: [o] [p]
o Credit: [q] [r]
B. Show the journal entry to record McKay's payment of $1,200.
o Debit: [s] [t]
o Credit: [u] [v]
C. What is Priestly's balance of net Accounts Receivable after the entries pertaining to Mckay?
Answer:
Priestly Inc.
A. Debit AR 120,000
Credit REV 120,000
To record the sales on account for June.
B. Debit BAD 3,600
Credit ADA 3,600
To record the bad debts expense for the month.
C. The balance of net Accounts Receivable after the two entries above is $116,400
D. Debit ADA 2,300
Credit AR 2,300
To write-off McKay's account.
E. Priestly's balance of net Accounts Receivable after the write-off is $$114,100.
F. Debit AR 1,200
Credit ADA 1,200
To reinstate a previously written-off amount from McKay's account.
G. Debit CASH 1,200
Credit AR 1,200
To record the receipt from McKay on account.
H. Priestly's balance of net Accounts Receivable after the entries pertaining to McKay is $114,100.
Explanation:
Data and Analysis:
A. Accounts receivable $120,000 Sales revenue $120,000
B. Bad Debts Expense $3,600 Allowance for Doubtful Accounts $3,600
C. Allowance for Doubtful Accounts $2,300 Accounts Receivable $2,300
D. Accounts Receivable $1,200 Allowance for Doubtful Accounts $1,200
E. Cash $1,200 Accounts Receivable $1,200
T-account:
Accounts Receivable
Account Titles Debit Credit Balance
A. Sales revenue $120,000 $120,000
B. Allowance for Doubtful Accounts $3,600 116,400
C. Allowance for Doubtful Accounts $2,300 114,100
D. Allowance for
Doubtful Accounts 1,200 115,300
E. Cash 1,200 114,100
During 2021, Terps Company issued 800,000 coupons which entitles the customer to a $5.00 cash refund when the coupon is submitted at the time of any future purchase. The company estimates that 70% of the coupons will be redeemed. 350,000 coupons had been processed during 2021. The company recognizes coupon expense in the period coupons are issued. At December 31, 2021, the company should report a liability for unredeemed coupons of:
Answer:
$1,050,000
Explanation:
Calculation to determine what the company should report as a liability for unredeemed coupons
Liability for unredeemed coupons =($800,000 x 0.70 ) - $350,000 ) x $5.00
Liability for unredeemed coupons=($560,000-$350,000)×$5.00
Liability for unredeemed coupons=$210,000x $5.00
Liability for unredeemed coupons=$1,050,000
Therefore At December 31, 2021, the company should report a liability for unredeemed coupons of:$1,050,000
Nevis Motors manufactures a product requiring 0.5 ounces of platinum per unit. The cost of platinum is approximately $360 per ounce; the company maintains an ending platinum inventory equal to 10% of the following month's production usage. The following data were taken from the most recent quarterly production budget: July August September Planned production in units 1,000 1,100 980 The cost of platinum to be purchased to support August production is: Multiple Choice $195,840. Correct $198,000. $200,160. $391,680. None of the answers is correct.
Answer:
$195,840
Explanation:
A purchases budget is is usually prepared to determine material requirements to meet the production targets.
Nevis Motors
Materials Purchases Budget for the Month of August
Material requirement for production (1,100 x 0.5) 550
Add Budgeted Closing Materials Inventory (980 x 0.5 x 10%) 49
Total Required Materials 599
Less Budgeted Opening Materials Inventory (1,100 x 0.5 x 10%) (55)
Budgeted Purchases 544
Cost per ounce $360
Total Budgeted Purchases cost $195,840
Blossom Company borrowed $311,000 on January 1, 2020, by issuing a $311,000, 10% mortgage note payable. The terms call for annual installment payments of $52,000 on December 31. (a) Prepare the journal entries to record the mortgage loan and the first two installment payments. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answer:
Blossom Company
Journal Entries:
January 1, 2020:
Debit Cash $311,000
Credit Mortgage Note Payable $311,000
To record the borrowing of 10% mortgage note payable.
December 31, 2020:
Debit Mortgage Note Payable $52,000
Credit Cash $52,000
To record the first repayment of the mortgage note.
Debit Interest Expense $31,100
Credit Cash $31,100
To record the payment of interest on the note.
Explanation:
a) Data and Calculations:
Mortgage Note Payable = $311,000
Interest rate of mortgage = 10%
Annual installment payments = $52,000
Date of repayment = December 31
Interest expense = $31,100 ($311,000 * 10%)
Snyder Painting is transitioning to an ABC system. So far, the company has traced its costs back to several different activities, including customer consultation, paint storage, onsite paint application, and site preparation and cleanup. If Snyder wants to reduce its non-value-added activities to the greatest extent possible, it should concentrate its efforts on reducing the amount of time and money it spends on
Answer:
Snyder Painting
If Snyder wants to reduce its non-value-added activities to the greatest extent possible, it should concentrate its efforts on reducing the amount of time and money it spends on
B. paint storage.
Explanation:
a) Identified Activities of Snyder Painting:
A. customer consultation.
B. paint storage.
C. site preparation and cleanup.
D. onsite paint application.
b) Non-value added activities are activities that are currently necessary and consume resources but do not add value to the company's product or service. For example, equipment set-up, parts inspection, recording job time, job scheduling, product storage, and customer billing. These activities should be reduced to the barest minimum in order to maximize value.
One of the benefits of time management is that it takes away all of your leisure time.
True or false?
Answer:
false po ate or kuya
Answer:
false
Explanation:
Time management taking away free time isn't a plus, and that's not what it's supposed to do in the first place
Hawk Corporation purchased 10,000 Diamond Corporation bonds in 2018 for $56 per bond and classified the investment as securities available-for-sale. The value of the Diamond investment was $86 per bond on December 31, 2019, and $100 per bond on December 31, 2020. During 2021, Hawk sold all of its Diamond investment at $144 per bond. In its 2021 income statement, Hawk would report:
Answer: $880,000 as gain
Explanation:
Unrecognized gain in 2019:
= 86 - 56
= $30 per bond
Unrecognized gain in 2020:
= 100 - 86
= $14 per bond
Gain from sale:
= (Unrecognized gain 2019 + Unrecognized gain in 2020 + Gain on sale) * no. of bonds
= (30 + 14 + (144 - 100) ) * 10,000
= $880,000 as gain