Answer: 18800
Explanation:
First and foremost, we have to calculate the outstanding common shares which will be:
= Number of shares / Market price × Warrants Exercisable
= (94000 / 25) × 20
= 75200 shares
Then, the increase in the weighted average number of outstanding shares will be:
= 94000 - 75200
= 18800
Prepare the journal entries needed based on the following information: Estimated overhead for the month: $6,000 Estimated direct labor hours: 2,000 Purchased $35,000 of materials Requisitioned $10,000 of materials to be placed into production Incurred $4,000 of direct labor during the month (500 hours) Incurred the following actual factory overhead amounts: Utilities: $1,000 Indirect materials: $500 Indirect labor: $1,000 Rent: $1,500 Completed two jobs with a cost of $18,000 Sold both jobs completed at price
se the information below for Harding Company to answer the question that follow. Harding Company Accounts payable $36,681 Accounts receivable 60,524 Accrued liabilities 6,727 Cash 24,556 Intangible assets 40,334 Inventory 71,626 Long-term investments 90,463 Long-term liabilities 79,713 Marketable securities 32,237 Notes payable (short-term) 25,302 Property, plant, and equipment 627,557 Prepaid expenses 2,404 Based on the data for Harding Company, what is the amount of quick assets
Answer:
See below
Explanation:
With regards to the above,
Computation of quick assets is shown below
Quick assets = Account receivable + cash + marketable securities
= $60,524 + $24,556 + $32,237
= $117,317
The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, "This is a golden opportunity." The mine will cost $3,400,000 to open and will have an economic life of 11 years. It will generate a cash inflow of $575,000 at the end of the first year, and the cash inflows are projected to grow at 8 percent per year for the next 10 years. After 11 years, the mine will be abandoned. Abandonment costs will be $123,000 at the end of year 11.
Required:
What is the IRR for the gold mine? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))
IRR
%
Answer:
19.07%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-3,400,000
Cash flow in year 1 = $575,000
Cash flow in year 2 = $575,000 x 1.08
Cash flow in year 3 = $575,000 x 1.08^2
Cash flow in year 4 = $575,000 x 1.08^3
Cash flow in year 5 = $575,000 x 1.08^4
Cash flow in year 6 = $575,000 x 1.08^5
Cash flow in year 7 = $575,000 x 1.08^6
Cash flow in year 8 = $575,000 x 1.08^7
Cash flow in year 9 = $575,000 x 1.08^8
Cash flow in year 10 = $575,000 x 1.08^9
Cash flow in year 11 = ($575,000 x 1.08^10) - $123,000
IRR = 19.07%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Brief Exercise 162 a-b On January 1, 2020, Borse Company issued bonds with a face value of $800,000. The bonds carry a stated interest of 7% payable each January 1. Prepare the journal entry for the issuance assuming the bonds are issued at 95. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare the journal entry for the issuance assuming the bonds are issued at 105. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Answer:
1.
January 1, 2020
Cash $760000 Dr
Discount on Bonds Payable $40000 Dr
Bonds Payable $800000 Cr
2.
January 1, 2020
Cash $840000 Dr
Bonds Payable $800000 Cr
Premium on Bonds Payable $40000 Cr
Explanation:
1.
When the bonds are issued at 95, this means that they are being issued at 95% of their face value and the cash received will be 95% of the face value which will be = 800000 * 0.95 = 760000
This means that the bonds are issued at a discount to face value and the entry will be to record the cash received as debit for 760000 and the bonds payable which is a liability as credit of 800000. The difference is the discount on issuance of bonds and will be debited by,
Discount = 800000 - 760000 => $40000.
2.
When the bonds are issued at 105, this means that they are being issued at 105% of their face value and the cash received will be 105% of the face value which will be = 800000 * 1.05 = 840000
This means that the bonds are issued at a premium to the face value and the entry will be to record the cash received as debit for 840000 and the bonds payable which is a liability as credit of 800000. The difference is the premium on issuance of bonds and will be credited by,
Premium = 840000 - 800000 => $40000.
Ginocera Inc. is a designer, manufacturer, and distributor of lowcost, highquality stain less 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 post ers 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.
Instructions
1. Prepare an annual income statement for the Kitchen Ninja knife series, including sup porting calculations, from the information provided.
2. Determine the balances in the work in process and finished goods inventories for the Kitchen Ninja knife series on December 31, 2016.
Answer:
1. $432,000
2. Finished goods inventory $776,000
Work in process $230,000
Explanation:
1. Preparation of an annual income statement for the Kitchen Ninja knife series
First step is to determine The Total Manufacturing cost per unit
DIRECT MATERIAL
Hardened steel blank $ 4.00
Wood for handle $ 1.50
Packaging $ 0.50
Total direct material $ 6.00
(4.00+1.50+0.50)
Direct labor $ 0.50
Factory overhead (800/250)$3.20
Total manufacturing cost per knife $ 9.70
(6.00+0.50+3.20)
Now let prepare the Income statement
INCOME STATEMENT
Sales $17,920,000
(1120,000 * 16)
Cost of good sold $10,864,000
(1120,000 * 9.7)
Gross profit $7,056,000
($17,920,000-$10,864,000)
Selling expense:
Infomercial campaign $2,000,000
($600,000 +$1400,000 )
Promotional material $3,600,000
(60,000 * $60)
Shipping cost $224,000
(1120,000 * 0.2)
Total selling expense $5,824,000
($2,000,000+$3,600,000+$224,000)
Administrative expense:
Legal expense $800,000
Total selling and administrative expense
$6,624,000
($5,824,000+$800,000)
Income from operation $432,000
($7,056,000-$6,624,000)
Therefore the annual income statement for the Kitchen Ninja knife series will be $432,000
2. Calculation to Determine the balances in the work in process and finished goods inventories for the Kitchen Ninja knife series on December 31, 2016
Calculation for Finished goods inventory
Finished goods inventory=($1,200,000 – $1,120,000) * 9.7
Finished goods inventory=$80,000*9.7
Finished goods inventory= $ 776,000
Calculation for Work in process
Work in process= 25,000 * (6 + 3.20)
Work in process=25,000*9.20
Work in process= $230,000
Therefore the balances in the work in process will be $776,000 and finished goods inventories will be $230,000 for the Kitchen Ninja knife series on December 31, 2016
An accounting clerk for Chesner Co. prepared the following bank reconciliation: Chesner Co. Bank Reconciliation August 31
Cash balance according to company’s records $11,100
Add: Outstanding checks $3,585
Error by Chesner Co. in recording Check No. 1056 as $950 instead of $590 360
Note for $12,000 collected by bank, including interest 12,480 16,425
$27,525
Deduct: Deposit in transit on August 31 $7,200 Bank service charges 25 7,225
Cash balance according to bank statement $20,300
Required:
a. From the data prepared by the accounting clerk, prepare a new bank reconciliation for Chesner Co.,
b. If a balance sheet were prepared for Chesner Co. on July 31, 2016, what amount should be reported for cash?
Answer:
See below
Explanation:
Chesner Co.
Bank reconciliation statement
a.
Cash balance according to bank statement
$20,300
Add:
Deposit in transit on July 31
$7,200
Deduct:
Outstanding checks
($3,585)
Balance
$3,615
Adjusted balance
$23,915
Cash balance according to company's record
$11,100
Add:
Error in recording check no
1056 as $950 instead of $590
$360
Note for $12,000 collected by bank including interest
$12,480
Deduct:
Bank service charge
($25)
Balance
$12,815
Adjusted balance
$23,915
b. The amount that should be reported as cash if a balance sheet were prepared for Chesner Co. on July 31, 2016 is $23,915
XYZ Corporation uses the FIFO method in its process costing system. The Assembly Department started the month with 1,000 units in its beginning work in process inventory that were 80% complete with respect to conversion costs. An additional 65,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 10,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs.
Required:
What were the equivalent units for conversion costs in the Assembly Department for the month?
Answer: 61,200 units
Explanation:
Using the FIFO method:
= Equivalent units for beginning WIP + Units started and finished + EUP Ending WIP
Units started and finished = 65,000 additional units - 10,000 closing WIP
= 55,000 units
80% of the beginning WIP had been completed in the previous month so only 20% remains.
EUP Conversion = (1,000 * 20%) + 55,000 + (10,000 * 60%)
= 61,200 units
Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 35,000 machine-hours Order processing 250 orders Other Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries $ 380,000 Depreciation 150,000 Occupancy 170,000 Total $ 700,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabrication Order Processing Other Total Wages and salaries 35% 30% 35% 100% Depreciation 15% 45% 40% 100% Occupancy 35% 30% 35% 100% The activity rate for the Order Processing activity cost pool is closest to:
Answer:
Order processing= $930 per order
Explanation:
First, we need to calculate the estimated costs for order processing:
Order processing cost= (380,000*0.3) + (150,000*0.45) + (170,000*0.3)
Order processing cost=$232,500
Now, we can calculate the activity rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Order processing= 232,500 / 250
Order processing= $930 per order
Scenario: You are a CEO of well-established and profitable software technology firm that has a choice to invest in one of two new software technologies; one that promises modest profit with very little risk and another that may yield a very high profit but at considerable risk. Keeping in mind cultural factors (social values/priorities, politics, economy, technology, regulation, etc.) Answer the following: 1. What would your choice be? 2. Who in your company might support the first technology and who might support the second? 3. Think about individuals from all levels of the company, from the CEO and board members down to R&D personnel. What considerations of your decision need to be made from a societal perspective? 4. Consider individuals outside of the company itself. How might the type of industry affect this type of decision?
Answer:
1. What would your choice be?
My choice would be the little risk, modest profit option, because the company is well-established, and at that point, it is not necessary to take on huge risks.
2. Who in your company might support the first technology and who might support the second?
Younger employees would probably support the second technology, while older, more established and secure employees like senior managers would be more likely to support the first technology.
3. Think about individuals from all levels of the company, from the CEO and board members down to R&D personnel. What considerations of your decision need to be made from a societal perspective?
How the investment decision will affect the different departments of the company, both at the department level, and at the individual level.
4. Consider individuals outside of the company itself. How might the type of industry affect this type of decision?
The type of industry affects the decision greatly because different industries have varying degrees of market risk. This market risk is often measured by a "beta", which is a measure or the deviation of an industry from the average market risk.
If the market for quilts is perfectly competitive and other quilt producers face the same cost as Alex then what would you expect to happen to both the number of firms making quilts and the equilibrium price of quilts in the long run
Answer:
Since the firms are currently losing money, some of them will eventually exit the market in the long run. Once the total number of firms decreases, the equilibrium price will shift upwards until it reaches a point where the firms are able to break even. in other words, the firms will make 0 economic profit, but they will not lose money either.
labor force
200 million
Adults in the military
1 million
Population below 16
50 million
Employed adults
180 million
Institutionalized adults
3 million
Not in labor force
40 million
1. What is the total population? 1 pt. (Show your work)
2. How many people are unemployed, and what is the unemployment rate? 2 pts.
3. What is the labor force participation rate? 1 pt.
Answer:
not entirely sure if that's how you are suppose to do it. but that's how I would've done it.
Suppose the Eastwestern University theater department has received $250,000 from the school's endowment fund to put toward scholarships to improve the department and assist theater students entering the program.
Professor Bucktell proposes that they should hold auditions and give $60,000 scholarships to the five most talented applicants in hopes of bringing the best and most promising talent to the school
Professor Rammer thinks that they should divide the money up into $10,000 scholarships to be given to the 25 applicants to the program with the most financial need, regardless of talent.
Professor Buckteil's proposal is an example of economic_________
Professor Rammer's proposal is an example of economic ________
Answer: Professor Buckteil's proposal is an example of (Economic efficiency).
Professor Rammer's proposal is an example of (Economic equality)
Explanation:
Professor Bucktell's proposal is economic efficiency. This means when the available resources in the economy are shared using the efficient mean possible and the best possible operation that's available.
Professor Rammer's proposal is economic equality. This refers to when everyone is given a fair and equal chance. There's a level playing field for everyone. This can be seen when he said that the money of up to $10,000 scholarships should be given to the 25 applicants to the program with the most financial need, regardless of talent.
1.
What is CASS and what is its purpose?
Dividends cause a(n) increase/decrease)_________ in equity and are recorded directly in
Answer:
Decrease (debit) in equity, Cash Dividends Payable (credit, liability account)
Explanation:
The journal entry to record the declaration of the cash dividends involves a decrease (debit) to Retained Earnings (a stockholders' equity account) and an increase (credit) to Cash Dividends Payable (a liability account).
(opentextbc.ca)
Suppose the residents of Vegopia spend all their income on cauliflower, broccoli, and carrots. In 2016, they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $75, and 500 carrots for $50. In 2017, they buy 75 heads of cauliflower for $225, 80 bunches of broccoli for $120, and 500 carrots for $100. What will be the price of one unit of each vegetable (unit price given in the sequence cauliflower, broccoli and carrots) in 2016
define credit crunch.
Answer:
"a sudden sharp reduction in the availability of money or credit from banks and other lenders."
Answer: a sudden sharp reduction in availability of money or credit from Banks and other lenders
Explanation:
Everything Looks Like a Nail, Inc is a manufacturing company that produces hammers. The company faces a number of fixed and variable costs in the short run. Determine which of the costs below are examples of fixed costs or examples of variable costs by placing them in the correct category. Assume the company cannot easily adjust the amount of capital it uses.Fixed Costs Variable Costsa. interest rate on current debtb. regulatory compliance costsc. annual salaries of top managementd. cost of metal used in manufacturinge. cost of wood used in manufacturingf. postage and packaging costsg. lease on buildingh. industrial equipment costs
Answer:
Fixed costs do not depend on the level of output. They are therefore paid regardless of production.
Variable costs are only incurred as production goes on.
Fixed cost
a. Interest rate on current debt
b. Regulatory compliance costs
c. Annual salaries of top management
g. Lease on building
h. Industrial equipment costs
Variable Costs
d. Cost of metal used in manufacturing
e. Cost of wood used in manufacturing
f. Postage and packaging costs
Ivanhoe Company reports the following operating results for the month of August: sales $392,000 (units 4,900), variable costs $247,000, and fixed costs $96,000. Management is considering the following independent courses of action to increase net income.
1. Increase selling price by 10% with no change in total variable costs or units sold.
2. Reduce variable costs to 57% of sales.
3. Reduce fixed costs by $22,000.
Which course of action wiIl produce the highest net?
Answer:
The best course of action is to increase the selling price by 10%.
Explanation:
Giving the following information:
sales $392,000 (units 4,900)
variable costs (247,000)
fixed costs (96,000)
Current net income= 49,000
First, we need to calculate the unitary selling price and variable cost:
Selling price= 392,000 / 4,900= $80
Unitary variable cost= 247,000 / 4,900= $50.41
Now, we will calculate the impact on net income of each variation:
Increasing selling price by 10%:
Selling price= 80*1.1= $88
Effect on income= 8*4,900= $39,200 increase
Reduce variable costs to 57% of sales.
Unitary variable cost= 80*0.57= $45.6
Effect on income= (50.41 - 45.6)*4,900= $23,569 increase
Reduce fixed costs by $22,000.
Effect on income= $22,000 increase
You are thinking about the things that can go wrong on your trip home over the Thanksgiving break. You have booked a flight with US-Scareways. You know that in 35 percent of the cases the company has canceled the flight you were on. Should such a thing occur, there would be no other air travel option home for you. As a backup, your friend Walter has offered you a ride back. However, you know that Walter only has a seat in his car for you with 70 percent probability.
What is the probability of you making it home for the holidays?
Answer: 89.5% or 0.895
Explanation:
Probability of you making it home if the flight is canceled:
= Probability that flight is canceled * probability that Walter has a seat
= 35% * 70%
= 24.5%
Probability of you making it home by flight:
= 100% - 35%
= 65%
Probability of you making it home for the holidays:
= Prob. if flight is canceled + Prob. by flight
= 24.5% + 65%
= 89.5%
Statement of Owner's Equity Zack Gaddis owns and operates Gaddis Advertising Services. On January 1, 20Y3, Zack Gaddis, Capital had a balance of $186,000. During the year, Zack invested an additional $9,300 and withdrew $65,100. For the year ended December 31, 20Y3, Gaddis Advertising Services reported a net income of $89,800.
Prepare a statement of owner's equity for the year ended December 31, 20Y3. Use the minus sign to indicate negative values.
Answer:
Zack Gaddis
Statement of owner's equity for the year ended December 31, 20Y3
Capital Retained Earnings Total
Beginning of the Year :
Opening Balance $186,000 - $186,000
During the year :
Additional Capital $9,300 - $9,300
Drawings ($65,100) - ($65,100)
Net Income - $89,800 $89,800
At the end of the year $130,200 $89,800 $220,000
Explanation:
The statement of owner's equity for the year ended December 31, 20Y3 is prepared as above.
what are the intermediaries of netflix
According to the Law of Demand, what will happen when the price of a good increases?
Answer:
According to the law of demand, as the price increase the quantity demand decreases, and conversely, as the prices decreases,the quantity demanded increases
On January 1, 2019, Tonika Company issued a six-year, $10,000, 6% bond. The interest is payable annually each December 31. The issue price was $9,523 based on an 7% effective interest rate. Tonika uses the effective-interest amortization method. The December 31, 2020 book value after the December 31, 2020 interest payment was made is closest to:
Answer:
$9,590
Explanation:
Calculation to determine what The December 31, 2020 book value after the December 31, 2020 interest payment was made is closest to:
First step is to calculate the Interest paid
Interest paid = 10000*6%
Interest paid= 600
Second step is to calculate the Interest expense
Interest expense = 9,523*7%
Interest expense= 667
Third step is to calculate the Discount amortization
Discount amortization =667-600
Discount amortization = 67
Now let calculate Book value at the end of December 31,2020
Book value at the end of December 31,2020 = 9,523 +67
Book value at the end of December 31,2020 = $9,590
Therefore The December 31, 2020 book value after the December 31, 2020 interest payment was made is closest to:$9,590
Sound Software estimates that it will sell LaTeX: NN units of a program after spending LaTeX: aa thousands of dollars on advertising, where LaTeX: N\left(a\right)=-a^2+300a+6N ( a ) = − a 2 + 300 a + 6 when LaTeX: 0\le a\le3000 ≤ a ≤ 300. What is the maximum number of units that can be sold and how much need to be spent on advertising in order to achieve this sales goal?
Answer:
Explanation:
From the given information:
N(a) = -a² +300a + 6
Taking the differential of the above equation with respect to "a"
Then;
N'(a) = - 2a + 300
where;
the Critical points N'(a) = 0
-2a + 300 = 0
-2a = -300
a = -300/-2
a = 150
Now;
N(0) = -(0)² +300(0) + 6
N(150) = (-150)² +300(150) + 6 =22506
N(300) = (-300)² +300(300) + 6 = 6
∴
The max. number of the possible unit that can be sold = 22506
The amount spent on advertising to get to this goal = 150 thousand dollars
The unadjusted trial balance for PS Music as of July 31, 20Y5 is as follows:
PS Music
Unadjusted Trial Balance
July 31, 20Y5
Account No. Debit Balances Credit Balances
Cash 11 9,945
Accounts Receivable 12 2,750
Supplies 14 1,020
Prepaid Insurance 15 2,700
Office Equipment 17 7,500
Accounts Payable 21 8,350
Unearned Revenue 23 7,200
Common Stock 31 9,000
Dividends 33 1,750
Fees Earned 41 16,200
Wages Expense 50 2,800
Office Rent Expense 51 2,550
Equipment Rent Expense 52 1,375
Utilities Expense 53 1,215
Music Expense 54 3,610
Advertising Expense 55 1,500
Supplies Expense 56 180
Miscellaneous Expense 59 1,855
40,750 40,750
Based on those balances and the additional data below, prepare adjusting journal entries. Include Posting References, using the account numbers in your spreadsheet. You will need the following additional accounts:
Account # Account Name
18 Accumulated Depreciation-Office Equipment
22 Wages Payable
57 Insurance Expense
58 Depreciation Expense
The data needed to determine adjustments for the two-month period ending July 31, 2019, are as follows:
July 31: During July, PS Music provided guest disc jockeys for KXMD for a total of 115 hours. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600, which PS Music has already received payment for. Any additional hours beyond 80 will be billed to KXMD at $40 per hour.
Account Post. Ref. Debit Credit
July 31: Supplies on hand at July 31, $275.
Account Post. Ref. Debit Credit
July 31: The balance of the prepaid insurance account relates to the following July 1, 2019 transaction: "Paid a premium of $2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period."
Account Post. Ref. Debit Credit
July 31: Depreciation of the office equipment is $50.
Account Post. Ref. Debit Credit
July 31: The balance of the unearned revenue account relates to the contract between PS Music and KXMD, described in the July 3, 2019 transaction, which included the following: "On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600." In accordance with the contract, Peyton received $7,200 from KXMD as an advance payment for the first two months.
Account Post. Ref. Debit Credit
July 31: Accrued wages as of July 31, 2019, were $140.
Account Post. Ref. Debit Credit
Answer:
PS Music
Adjusting Journal Entries:
Debit Accounts receivable 12 $1,400
Credit Fees Earned 41 $1,400
To record extra services rendered. (115 - 80) * $40
Debit Supplies Expense 56 $745
Credit Supplies 14 $745
To record supplies used.
Debit Insurance Expense 57 $225
Credit Prepaid Insurance 15 $225
To record expired insurance expense ($2,700 * 1/12).
Debit Depreciation Expense -Office Equipment 58 $50
Credit Accumulated Depreciation-Office Equipment 18 $50
To record depreciation expense for the month.
Debit Unearned Revenue 23 $3,600
Credit Fees Earned 41 $3,600
To record fees earned.
Debit Wages Expense 50 $140
Credit Wages Payable 22 $140
To record accrued wages.
Explanation:
a) Data and Calculations:
PS Music
Unadjusted Trial Balance
July 31, 20Y5
Account No. Debit Balances Credit Balances
Cash 11 9,945
Accounts Receivable 12 2,750
Supplies 14 1,020
Prepaid Insurance 15 2,700
Office Equipment 17 7,500
Accounts Payable 21 8,350
Unearned Revenue 23 7,200
Common Stock 31 9,000
Dividends 33 1,750
Fees Earned 41 16,200
Wages Expense 50 2,800
Office Rent Expense 51 2,550
Equipment Rent Expense 52 1,375
Utilities Expense 53 1,215
Music Expense 54 3,610
Advertising Expense 55 1,500
Supplies Expense 56 180
Miscellaneous Expense 59 1,855
40,750 40,750
Analysis of Adjustments:
Accounts receivable 12 $1,400 Fees Earned 41 $1,400 (115 - 80) * $40
Supplies Expense 56 $745 Supplies 14 $745
Insurance Expense 57 $225 Prepaid Insurance 15 $225 ($2,700 * 1/12)
Depreciation Expense -Office Equipment 58 $50 Accumulated Depreciation-Office Equipment 18 $50
Unearned Revenue 23 $3,600 Fees Earned 41 $3,600
Wages Expense 50 $140 Wages Payable 22 $140
The manager of the main laboratory facility at Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed but that some costs remain the same each month regardless of the number of lab tests performed. The lab manager collected the following data for the first seven months of the year. Number of Lab Total Laboratory Tests Performed Overhead CostsMonth January 2,700 $22,900February 2,500 $23,500March 3,500 $29,800 April 4,000 $32,500May 4,600 $31,100 June 2,250 $22,000 July 2,000 $19,100 1. Use the high-low method to determine the laboratory's cost equation for total laboratory overhead. Use your results to predict total laboratory overhead if 3,200 lab tests are performed next month.2. Use the high-low method to determine UrbanFit's operating cost equation.
Answer:
Total cost= 9,871 + 4.615*x
x=number of lab tests
Explanation:
To calculate the variable and fixed costs using the high-low method, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (31,100 - 19,100) / (4,600 - 2,000)
Variable cost per unit= $4.615
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 31,100 - (4.62*4,600)
Fixed costs= $9,871
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 19,100 - (4.615*2,000)
Fixed costs= $9,870
Total cost= 9,871 + 4.615*x
x=number of lab tests
Answer:
you need to use exel to find the awnser
Explanation:
In Question 7, suppose the maintenance supervisor has complained that trainees are having difficulty trouble shooting problems with the new electronics system. They are spending a great deal of time on problems with the system and coming to the supervisor with frequent questions that show a lack of understanding. The supervisor is convinced that the employees are motivated to learn the system, and they are well qualified. What do you think might be the problems with the current training program
Answer:
Since the employees are unable to understand the process properly, and they are well qualified, the problem is that the information and techniques used during the training program are not sufficient. Maybe the trainees are given unclear messages or the information is incomplete. The training program must be revised and technical issues should be explained better or in a different way.
Under an installment contract, a buyer can:
a. Reject an installment if the nonconformity substantially impairs the value of the installment without giving the seller an opportunity to cure
b. Hold the seller in breach of the entire installment contract when a nonconforming installment substantially impairs the value of that installment alone.
c. Reject an installment no matter how minor the nonconformance is.
d. None of these answers.
Answer:
b. Hold the seller in breach of the entire installment contract when a nonconforming installment substantially impairs the value of that installment alone.
Explanation:
In installment contract, the seller and the buyer agrees on the ways through which the buyer will pay for the goods which he or she purchases installmentally rather than a one off payment. In a situation where the agreement has been reached, it expected that the buyer and the seller to conform to the said agreement. However,the seller is hold in breach of the entire installment contract if there is impairment of the value of the goods substanstially.
Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $8.6 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. The land would net $11.4 million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost $22.6 million to build, and the site requires $1,010,000 worth of grading before it is suitable for construction.
Required:
What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).)
Answer:
$35,010,000
Explanation:
Calculation for the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project
Cash flow = $11.4 million + $22.6 million + $1,010,000
Cash flow = $35,010,000
Therefore the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project is $35,010,000
On July 1, Arcola Company purchases equipment for $330,000. The equipment has an estimated useful life of 10 years and expected salvage value of $40,000. The company uses straight-line depreciation. Four years later, economic factors cause the fair value of the equipment to decline to $160,000. On this date, Arcola examines the equipment for impairment and estimates $185,000 in undiscounted expected cash inflows from this equipment.
Required:
a. Compute the annual depreciation expense relating to this equipment.
b. Compute the equipment's net book value at the end of the fourth year.
c. Apply the test of impairment to this equipment as of the end of the fourth year. Is the equipment impaired?
Answer:
a. $29,000
b. $214,000
c. Yes
Explanation:
a. Annual Depreciation expense:
= (Cost - salvage value)/ Useful life
= (330,000 - 40,000) / 10,000
= $29,000
b. Net book value at end of 4th year:
= Cost - 4 year depreciation
= 330,000 - (4 * 29,000)
= $214,000
c. One test to see if equipment is not impaired is that the Expected Undiscounted cashflows need to be higher than the net book value. This is not the case here as the Net Book value of $214,000 is higher than the expected Undiscounted cash inflows of $185,000. Equipment is therefore impaired.