Answer:
These are the two "pillars of executive ethical leadership"
Explanation:
•Using the two pillars of ethical leadership, what are the reputation an executive can develop?
•If you are a CEO of XYZ, how do you cultivate a reputation for ethical leadership?
Assume you were an employee at an organization like IKEA, and Fortune surveyed you for it's 100 Best Companies to Work For list. To what extent would your attitudes be shaped not just by internal work policies, but also by how the company engages with society?
Explanation:
The internal policies of a company with a high reputation in the market and in society help to shape the skills and attitudes of employees as a whole, creating a culture based on ethical values that help to create solid relationships between employees, an environment of positive work that makes the employee feel engaged and motivated to act more and more in accordance with the company's good practices.
A company like IKEA for example, whose values are based on social and environmental positioning and commitment to society, creates in the employee strong feelings of identification and pride in working in a company that generates positive impacts on the world, which contributes to shaping their attitude towards valuing your work and your skills.
If an organization tracks its strategy implementation, looks for problem areas, evaluates whether the problem areas indicate any weakness in the strategy, and makes any necessary changes, then it is using:
Question:
If an organization tracks its strategy implementation, looks for problem areas, evaluates whether the problem areas indicate any weakness in the strategy, and makes any necessary changes, then it is using:
A) Organizational controls
B) Tactical controls
C) Behavioral controls
D) Strategic controls
Answer:
The correct option is D) Strategic controls
Explanation:
Strategic controls refer to the process which helps one to easily and immediately change direction where if proposed strategies do not create anticipated results.
For example, if a company X, decides to reduce prices to drive sales and increase market share albeit, at a cost to its bottom line, where there is no increase in sales, an effective strategic control process would be to quickly reverse the situation to the status quo before implementation and thereafter go back to the drawing table to check why demand is low.
Demand could be weak because, quality of products, or services, do not meet consumer expectations, it could be that there is a violation of one of the 'P' of marketing such as Positioning.
The head of strategy thus reviews and plans the next move to ensure that changes are effected.
Cheers!
Flyer Company has provided the following information prior to any year-end bad debt adjustment:Cash sales, $167,000Credit sales, $467,000Selling and administrative expenses, $127,000Sales returns and allowances, $47,000Gross profit, $507,000Accounts receivable, $275,000Sales discounts, $31,000Allowance for doubtful accounts credit balance, $2,900Flyer estimates bad debt expense assuming that 2% of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?a) $12,240.b) $9,340.c) $9,780.d) $6,440.
Answer:
The balance in the allowance for doubtful accounts after bad debt expense is recorded is $12,240. Option A
Explanation:
Cash sales = $167,000
Credit sales = $467,000
Selling and administrative expenses = $127,000
Sales returns and allowances = $47,000
Gross profit = $507,000
Accounts receivable = $275,000
Sales discounts = $31,000
Allowance for doubtful accounts credit balance = $2,900
Balance needed in the 'Allowance for doubtful accounts' = $467,000 × 2%
= $9,240
Credit balance in the allowance account = $2,900
Bad debts expense = Balance needed in the 'Allowance for doubtful accounts' + Credit balance in the allowance account
= $9,340 + $2,900
= $12,240
There are many diet aids on the market. They promise immediate weight loss without exercise or a change in diet. Each is accompanied by a testimonial from a satisfied user. If you pay close attention, you will notice that each ad also contains the statement, "Results may vary." Most likely this statement is included to prevent the Federal Trade Commission (FTC) from requiring the dietary aid distributor from having to:_______.
Answer:
run corrective advertising
Explanation:
This was likely included to prevent the Federal Trade Commission (FTC) from requiring the dietary aid distributor from having to run corrective advertising. This is a sort of punishment placed on an ad company that has made an ad with false or misleading information, in order to correct this they must add a message that is placed on their ads in order to right this wrong. This message can badly hurt the company as it advises the viewers that the company has spread false information.
"Winston tells Lenita that he prefers to form an S corporation because he does not want to attach "LLC" to the name of the company. Lenita responds that the option of an S corporation is not available for their situation. Is she correct
Answer:
D. Yes, because all the owners are not U.S. citizens.
Explanation:
This question is not incomplete.
Please find the incomplete information below.
Winston and Noe patented a mechanism that will change open heart surgery forever. They are setting up a business to produce and sell their invention to hospitals and will take advantage of Noe's non-U.S. citizenship to help with sales in international markets. They hire Lenita, a corporate lawyer, to assist in setting up their business. Winston's largest concern is taxes. Noe, on the other hand, doesn't want to bother keeping corporate minutes and having board meetings as he is too busy. Both are concerned about being sued personally for products liability
As it is mentioned in the question that Winston and Noe wanted to set up a business for producing and selling an invention so that it would result in taking the advantage of non-U.S. citizenship so t it would help in an international market sales. For that, they hired Lenita, who is a corporate lawyer. At the same time, both the point of view is different. But they being sued for liability of products personally.
In the given scenario, Lanita is correct for the non-availability of the S corporation option as all the owners do not belong from U.S citizens.
A company issued 1,000 shares of $10 par value common stock due to a previously declared stock dividend; the market value at both the date of declaration and distribution was $12 per share. Which of the following correctly describes the reporting of this stock issue within the financing activities section of the cash flow statement?
a) A cash outflow of $10,000
b) A cash outflow of $2,000
c) A cash outflow of $12,000
d) There is no cash flow
Answer:
d) There is no cash flow
Explanation:
There is no cash flow because a stock dividend refers to a dividend that is paid by issuing additional shares to shareholders of a company instead of paying them a cash dividend.
Therefore, there is no cash flow since no cash is received nor paid.
Note: To record stock dividends, the amounts is moved from retained earnings to paid-in capital; and the evidence that no cash is received nor paid is that the journal entries for the issue of stock dividend will be as follows:
Debit Retained for $12,000 (i.e. 1,000 * $12 = $12,000)
Credit Common Stock for $10,000 (i.e. 1,000 - $10 = $10,000)
Credit Additional Paid-In Capital in Excess of Par - Common Stock for $2,000 ($12,000 - $10,000)
If $1200 is borrowed at 9% interest, find the amounts due at the end of 4 years if the interest is compounded as follows. (Round your answers to the nearest cent.) (i) annually $ 1693.9 Correct: Your answer is correct. (ii) quarterly $ 1204.3 Incorrect: Your answer is incorrect. (iii) monthly $ (iv) weekly $ (v) daily $ (vi) hourly $ (vii) continuously $
Answer and Explanation:
(i) The computation of compound interest for annual is shown below:-
Compound interest = A = P × (1 + r ÷ n)^t
= $1,200 × (1 + 9% ÷ 1)^1 × 4
= $1,200 × (1.09)^4
= $1,693.897932
or
= $1,693.90
(ii) The computation of compound interest for quarterly is shown below:-
= $1,200 × (1 + 9% ÷ 4)^4 × 4
= $1,200 × (1.09)^16
= $1,713.145749
or
= $1,713.15
Since it is quarterly so we divide the interest rate by 4 and multiply the time period by 4
(iii) The computation of compound interest for monthly is shown below:-
= $1,200 × (1 + 9% ÷ 12)^4 × 12
= $1,200 × (1.0075)^48
= $1,717.6864
or
= $1,717.69
Since it is monthly so we divide the interest rate by 12 and multiply the time period by 12
(iv) The computation of compound interest for weekly is shown below:-
= $1,200 × (1 + 9% ÷ 52)^4 × 52
= $1,200 × (1.432883461 )^208
= $1719.460154
or
= $1,719.46
Since it is weekly so we divide the interest rate by 52 and multiply the time period by 52
(v) The computation of compound interest for daily is shown below:-
= $1,200 × (1 + 9% ÷ 365)^4 × 365
= $1,200 × (1.43326581 )^1460
= $1719.918972
or
= $1719.92
Since it is daily so we divide the interest rate by 365 and multiply the time period by 365
(vi) The computation of compound interest for hourly is shown below:-
= $1,200 × (1 + 9% ÷ 8760)^4 × 8760
= $1,200 × (1.433326764 )^35,040
= $1,719.992117
or
= $1719.99
(vii) The computation of compound interest for continuously is shown below:-
A = Pe^rt
= 1,200e^0.09 × 4
= 1,200e^0.36
= $1,720.00
By necessity, building pro forma financial statements requires that managers make many assumptions which will not turn out to be true. Therefore, pro forma financial statements are of little use as a financial management tool.
a. True
b. False
Answer:
The given statement is false.
Explanation:
False, the pro forma is a financial record or statement prepare by the company in order to reduce the risk. It includes or shows the impact of changes in the company. Moreover, pro forma is also considered as the set of assumptions due to which investors and entrepreneurs forecast the company’s situation in the future. Therefore, it can be said the pro forma provides the approximation of business performance that is based on assumptions.
A student believes that the average grade on the statistics final examination is 87. A sample of 36 final
examinations is taken. The average grade in the sample is 83.96. The population variance is 144.
a. State the null and alternative hypotheses.
b. Using a critical value, test the hypothesis at the 5% level of significance.
c. Using a p-value, test the hypothesis at the 5% level of significance.
d. Using a confidence interval, test the hypothesis at the 5% level of significance.
Answer:
(a) H₀: μ = 87 vs. Hₐ: μ ≠ 87.
(b) [tex]z=-1.52>-z_{\alpha/2}=-1.96[/tex]. The average grade on the statistics final examination is 87.
(c) The p-value = 0.1286 > α = 0.05. The average grade on the statistics final examination is 87.
(d) The 95% confidence interval for the average grade on the statistics final examination is (80.04, 87.88).
Explanation:
A statistical hypothesis test is to be performed to determine whether the average grade on the statistics final examination is 87.
(a)
The hypothesis can be defined as follows:
H₀: The average grade on the statistics final examination is 87, i.e. μ = 87.
Hₐ: The average grade on the statistics final examination is not 87, i.e. μ ≠ 87.
(b)
The information provided is:
[tex]n=36\\\bar x=83.96\\\sigma^{2}=144[/tex]
As the population variance is provided, we will use a z-test for single mean.
Compute the test statistic value as follows:
[tex]z=\frac{\bar x-\mu}{\sqrt{\sigma^{2}/n}}=\frac{83.96-87}{\sqrt{144/36}}=-1.52[/tex]
The test statistic value is -1.52.
Decision rule:
Reject H₀ if:
[tex]z<-z_{\alpha/2}\ \text{or}\ z<z_{\alpha/2}\\\\\Rightarrow z<-z_{0.05/2}\ \text{or}\ z<z_{0.05/2}\\\\\Rightarrow z<-1.96\ \text{or}\ z<1.96[/tex]
The calculated value of [tex]z=-1.52>-z_{\alpha/2}=-1.96[/tex].
The null hypothesis will not be rejected.
Conclusion:
The average grade on the statistics final examination is 87.
(c)
Decision Rule:
If the p-value of the test is less than the significance level then the null hypothesis will be rejected.
Compute the p-value for the two-tailed test as follows:
[tex]p-value=2\cdot P(Z<-1.52)=2\times 0.0643=0.1286[/tex]
*Use a z-table for the probability.
The p-value of the test is 0.1286.
p-value = 0.1286 > α = 0.05
The null hypothesis will not be rejected.
Thus, it can be concluded that average grade on the statistics final examination is 87.
(d)
Compute the 95% confidence interval for the average grade on the statistics final examination as follows:
[tex]CI=\bar x\pm z_{\alpha/2}\cdot \sqrt{\frac{\sigma^{2}}{n}}[/tex]
[tex]=83.96\pm 1.96\cdot \sqrt{\frac{144}{36}}\\\\=83.96\pm 3.92\\\\=(80.04, 87.88)[/tex]
The 95% confidence interval for the average grade on the statistics final examination is (80.04, 87.88).
As the 95% confidence interval consists of the null value, i.e. 87, the null hypothesis will not be rejected.
Hence, concluding that the average grade on the statistics final examination is 87.
Sarah and First Financial Corp. enter into an oral employment contract under which First Financial Corp. agrees to hire Sarah for five years. Before Sarah begins, First Financial Corp. backs out of the contract. If Sarah sues to enforce the contract,
she will be able to successfully sue to enforce the contract or receive damages for the full five year term.
she will be able to successfully sue to enforce the contract or receive damages for one year of the contract, but the remaining four years will be unenforceable because of the Statute of Frauds.
she will not be able to enforce it, because it is voidable by First Financial since it violates the Statute of Frauds.
she will not be able to enforce it because fixed term employment contracts are illegal.
Answer:
she will not be able to enforce it, because it is voidable by First Financial since it violates the Statute of Frauds.
Explanation:
All contracts that last for more than one year fall under the Statute of Frauds and therefore, must be in writing and signed by both parties. Even if the contract was for one year and one day, it must be in writing. The non-breaching party, Sarah, cannot even sue for damages corresponding to only the first year because the contract is considered to be one and cannot be divided into parts.
Accumulating a growing future sum Personal Finance Problem A retirement home at Deer Trail Estates now costs $ 191 comma 000. Inflation is expected to cause this price to increase at 6% per year over the 17 years before C. L. Donovan retires. If Donovan earns 9% on his investments, ow large must an equal, end-of-year deposit must be to provide the cash needed to buy the home 17 years from now?
Answer: $13,910.42
Explanation:
The price of the house increases by 6% per year for 17 years.
The value at the end of 17 years is;
= 191,000 ( 1 + 6%) ¹⁷
= $514,319.60
Mr Donovan needs to deposit an amount per year at an interest rate of 9% that will earn him $514,319.60 at the end of 17 years.
This makes this an annuity which is calculated as;
Future Value of Annuity = Annuity (( 1 + rate )^ no. of periods - 1 ) / rate
514,319.60 = Annuity ((1 + 9%)¹⁷ - 1)/9%
514,319.60 = Annuity * 36.9737
Annuity = 514,319.60/36.9737
= $13,910.42
The management of L Corporation is considering a project that would require an investment of $260,000 and would last for 6 years. The annual net operating income from the project would be $110,000, which includes depreciation of $17,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.):
Answer:
2.04 years
Explanation:
Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.
To derive cash flows from net income, add depreciation to net income.
$110,000 + $17,000 = $127,000
Payback period = $260,000 / $127,000 = 2.04 years
I hope my answer helps you
Suppose the opportunity cost of capital is 10 percent and you have just won a $1 million lottery that entitles you to $100,000 at the end of each of the next ten years. Alternatively, you can accept an immediate cash payment of $600,000. Ignoring the tax implications, which option is better and by how much?
Answer:
It is more convenient to accept the first offer. It has a higher present value than accepting $600,000 now. Exactly $14,456.712
Explanation:
Giving the following information:
Discount rate= 10%
Offer:
Cash flow= $100,000
Years= 10
Or:
You can accept an immediate cash payment of $600,000.
First, we need to calculate the present value of the first offer. We will determine the final value, and then, the present value.
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {100,000*[(1.10^10)-1]} / 0.10
FV= 1,593,742.46
Now, the present value:
PV= FV/(1+i)^n
PV= 1,593,742.56/ (1.10^10)
PV= $614,456.712
It is more convenient to accept the first offer. It has a higher present value than accepting $600,000 now. Exactly $14,456.712
Doug Pederson Corporation bases its predetermined overhead rate on machine-hours. Data for 2017 appear below: Estimated machine-hours 73,000 Estimated total manufacturing overhead $1,057,730 Actual machine-hours 74,900 Actual total manufacturing overhead $1,147,000 The predetermined overhead rate for 2017 was closest to:
Answer:
Predetermined overhead Absorption rate = $14.5 per machine hour
Explanation
Predetermined Overhead absorption rate(POAR) = Estimate overhead /Estimated machine hours
Estimated overhead = $1,057,730
Estimated machine hours =73,000 hours
Overhead absorption rate = $1,057,730/73,000 hours =$14.48 per machine hour
Predetermined overhead Absorption rate = $14.5 per machine hour
Paladin Furnishings generated $2 million in sales during 2016, and its year-end total assets were $1.7 million. Also, at year-end 2016, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued liabilities. Looking ahead to 2017, the company estimates that its assets must increase by $0.85 for every $1.00 increase in sales. Paladin's profit margin is 5%, and its retention ratio is 55%. How large of a sales increase can the company achieve without having to raise funds externally
Answer:
The large of a sales increase can the company achieve without having to raise funds externally is $81,784
Explanation:
In order to calculate How large of a sales increase can the company achieve without having to raise funds externally we would have to calculate the following:
sales increase=Sales*growth rate
Sales=$2,000,000
growth rate=(Profit Margin * Retention ratio * Sales) /( Total year end Assets - Accounts payable - Accrued liabilities) - (Profit Margin * Retention ratio * Sales)
growth rate= (0.05 * 0.35 * 2,000,000 ) / (1,700,000 - 200,000 - 100,000) - ( 0.05 * 0.55 x 2,000,000)
growth rate=$55,000/$1,345,000
growth rate=4.089%
Therefore, sales increase=$2,000,000*4.089%
sales increase=$81,784
The large of a sales increase can the company achieve without having to raise funds externally is $81,784
If the U.S. Congress enacts a federal statute regulating the sale of automatic weapons and Kentucky passes a state law that conflicts with the federal law, Kentucky's law is said to be: Select one:
a. impliedly preempted.
b. void-for-vagueness.
c. expressly preempted.
d. prevailing.
Answer:
implied preempted
Explanation:
a state law is in conflict with a federal law
Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $34,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $34,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 40 percent this year and next year, and that she can earn an after-tax rate of return of 9 percent on her investments.
a) What is the after-tax cost if Isabel pays the $34,000 bill in December?
b) What is the after-tax cost if Isabel pays the $34,000 bill in January?(Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Answer:
a) The after-tax cost if Isabel pays the $34,000 bill in December is equal to $24,000.
b) The after-tax cost if Isabel pays the $34,000 bill in January is equal to $21,523.
Explanation:
Note: See the attached excel file for how the answers are calculated and note the alphabets A to I for how is cell is calculated.
You are saving for retirement. To live comfortably, you decide that you will need $2.5 million dollars by the time you are 65. If today is your 30th birthday, and you decide, starting today, and on every birthday up to and including your 65th birthday, that you will deposit the same amount into your savings account. Assuming the interest rate is 5%, the amount that you must set aside each year on your birthday is closest to
Answer:
The answer is $26086
Explanation:
Solution
Given that:
Future of Annuity = 2.5 million
The interest rate =5%
Time period = 35 (65-30)
Now
The future of annuity =Annuity [(1+rate)^time period-1]/rate
Thus
$2,500,000 = Annuity[(1.05)^36-1]/0.05
$2,500,000 = Annuity[(4.79186135)]/0.05
$2,500,000 = Annuity (95.83632272)
$2,500,000=Annuity*95.83632272
Annuity=$2,500,000/95.83632272
=$26086
Therefore the amount hat you must set aside each year on your birthday is closest to $26086
As part of the initial investment, Jackson contributes accounts receivable that had a balance of $35,017 in the accounts of a sole proprietorship. Of this amount, $1,229 is deemed completely worthless. For the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $740. The amount debited to Accounts Receivable for the new partnership is
Answer: $33788
Explanation:
From the question, we are told that as part of the initial investment, Jackson contributes accounts receivable that had a balance of $35,017 in the accounts of a sole proprietorship and of this amount, $1,229 is deemed completely worthless.
The amount that will be debited to the accounts receivable for the new partnership will be the difference between the balance of $35017 and the $1229 that is seen as been worthless.
= $35017 - $1229
= $33788
george forgot to pay his monthly life insurance premium that was due march 1. the policy had a face value of $100,000. on march 21, george died. how much will the insurer pay george's beneficiary for this death claim
Answer: An amount equal to the face value of the policy, MINUS the overdue premiums and any interest or late penalties George owed them
Explanation:
Grace Periods are usually included in Life Insurance policies to safeguard the client in question in case they are late with their payment. This means that should they pay within the grace period they will not lose their coverage.
Normally in Life Insurance, a grace period of 30 days is standard. George died 20 days after his due date which meant that he was still under a grace period and so the Insurance company will still pay out to his beneficiaries but they will deduct all monies owed by George.
It costs Blakeley Company $22.10 of variable and $2.20 of allocated fixed costs to produce an industrial trash can that normally sells for $31.30. A buyer offers to purchase 2,200 units at $21.00 each. Blakeley has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?
Answer:
Effect on income= $2,420 decrease
Explanation:
Giving the following information:
It costs Blakeley Company $22.10 of variable
A buyer offers to purchase 2,200 units at $21.00 each
Because there is an unused capacity and it is a special offer, we will not take into account the fixed costs.
Effect on income= 2,200*(21 - 22.1)
Effect on income= $2,420 decrease
In this case, the company should reject the offer, because the unitary contribution margin is negative.
On January 1, 20X8, Package Company acquired 80 percent of Stamp Company's common stock for $280,000 cash. At that date, Stamp reported common stock outstanding of $200,000 and retained earnings of $100,000, and the fair value of the noncontrolling interest was $70,000. The book values and fair values of Stamp's assets and liabilities were equal, except for other intangible assets which had a fair value $50,000 greater than book value and an 8-year remaining life. Stamp reported the following data for 20X8 and 20X9: Stamp Corporation Year Net Income Comprehensive Income Dividends Paid 20X8 $ 25,000 $ 30,000 $ 5,000 20X9 35,000 45,000 10,000 Package reported net income of $100,000 and paid dividends of $30,000 for both the years. Based on the preceding information, what is the amount of comprehensive income attributable to the controlling interest for 20X8?
Answer:
Comprehensive income attributable to the controlling interest for 20X8 is $119,000
Explanation:
Stamp Corporation
Year Net Income Comprehensive Income Dividends Paid 20X8 $ 25,000 $ 30,000 $ 5,000
20X9 $35,000 $45,000 $ 10,000
The amount of comprehensive income attributable to the controlling interest for 20X8 ;
Comprehensive income of Stamp Corporation = $30,000
Less: Annual amortization of intangible assets acquired on acquisition (50000/8) = $6,250
Comprehensive income of Stamp Corporation after adjustment = $23,750
Income attributable to controlling interest = 80% × $23,750 = $19,000
Net income of Package Company = $100,000
Comprehensive income attributable to the controlling interest = Income attributable to controlling interest + Net income of Package Company
= $19,000 + $100,000
= $119,000
Pre-determined overhead rates are calculated by dividing estimates of total factory overhead cost in the upcoming accounting period (usually a year) by an estimated usage or capacity of some unit of related activity (such as direct labor hours).
A. True
B. False
Answer:
The correct option is A, true
Explanation:
The predetermined overhead absorption rate is a forecast overhead rate usually computed by estimated total factory overhead by the planned usage or capacity of the unit of the activity.
This is more like planning ahead for the overhead to be incurred, hence the correct option is A , which truly supported that the statement made in the question
Critically analyze the difference and point of convergence between floor inspections and functional inspections
Answer:
Floor inspection is a system in which detailed inspection is performed at the place of production
Functional inspection is a system in which inspection is performed to analyze whether the production meets customer demands.
Explanation:
Floor inspection and Functional inspections both methods are used to analyze the production system effectiveness. These both systems are used to detect the faults in the raw material, production process and finished goods. These systems together evaluate the production line errors and helps to meet customer needs.
Hitzu Co. sold a copier costing $6,500 with a two-year parts warranty to a customer on August 16, 2018, for $13,000 cash. Hitzu uses the perpetual inventory system. On November 22, 2019, the copier requires on-site repairs that are completed the same day. The repairs cost $121 for materials taken from the repair parts inventory. These are the only repairs required in 2019 for this copier. Based on experience, Hitzu expects to incur warranty costs equal to 6% of dollar sales. It records warranty expense with an adjusting entry at the end of each year.
1. How much warranty expense does the company report in 2018 for this copier?
2. How much is the estimated warranty liability for this copier as of December 31, 2018?
3. How much warranty expense does the company report in 2019 for this copier?
4. How much is the estimated warranty liability for this copier as of December 31, 2019?
5. Prepare journal entries to record (a) the copier's sale; (b) the adjustment on December 31, 2018, to recognize the warranty expense; and (c) the repairs that occur in November 2019.
Answer and Explanation:
1. The computation of warranty expenses is shown below:-
Warranty expense in 2018 = Warranty for a customer × Rate of sales
= $13,000 × 6%
= $13,000 × 0.06
= $780
2. The computation of estimated warranty liability is shown below:-
As we have calculated in part 1 so it is same that is
Estimated warranty liability in 2018 = $780
3. The computation of Warranty expenses in 2019 is shown below:-
In 2019 no warranty expense is there so the correct answer is $0
4. The computation of estimated warranty liability is shown below:-
Estimated warranty liability = Warranty expenses in 2018 - Repairs cost
= $780 - $121
= $659
5. The Journal entries is shown below:
a. Cash Dr, $13,000
To Sales $13,000
(Being cash is recorded)
b. Cost of goods sold Dr, $6,500
To Merchandise inventory $6,500
(Being cost of goods sold is recorded)
c. Warranty expense $650
To Estimated warranty liability $650
(Being warranty expenses is recorded)
Estimated warranty liability Dr, $121
To Repair parts inventory $121
(Being warranty liability is recorded)
A husband and wife are self-employed and have 3 children, ages 4, 7, and 9. They have a combined income of $300,000. They wish to open Coverdell ESAs for each of their children to pay for qualified education expenses. Which statement is TRUE
Answer:
The correct answer is they are prohibited from opening an account for each child because they earn much.
Note: Kindly find an attached inage of the complete question stated here.
Sources: the image or pictures was researched from Quizlet and Course hero
Explanation:
Solution
Now,
The answer to the question given as follows:
(a) False: The contribution made to ESAs is not tax-deductible. Also, they are not allowed to contribute to ESAs due to high income.
(b) False: The contribution made to ESAs is not tax-deductible but they are not allowed to contribute to ESAs due to high income.
(c) True: Since they have a combined income of $300,000, therefore they are prohibited to open an account for each child under ESAs.
(d) False: There is no such condition that ESAs accounts cannot be opened by self-employed individuals.
In December of 2021, XL Computer's internal auditors discovered that office equipment costing $800,000 was charged to expense in 2019. The asset had an expected life of 10 years with no residual value. XL would have recorded a half year of depreciation in 2019.
Required:
Prepare the necessary correcting entry that would be made in 2016 (ignore income taxes), and the entry to record depreciation for 2021.
Answer and Explanation:
The Journal entries are shown below:-
1. Office equipment Dr, $800,000
To Accumulated depreciation-equipment $120,000
To Retained earnings $680,000
(Being office equipment is recorded)
Here we debited the office equipment as assets is increasing and we credited the accumulated depreciation-equipment as assets is decreasing and retained earning as stockholder is increasing.
2. Depreciation expenses Dr, $80,000
To Accumulated depreciation-equipment $80,000
(Being depreciation expenses is recorded)
Here we debited the depreciation expenses as it increasing the expenses and we credited the accumulated depreciation-equipment as decreases the assets.
Working note
Depreciation
For 2019
= $800,000 ÷ 10 years
= $80,000 × 6 ÷ 12
= $40,000
For 2020
= $800,000 ÷ 10 years
= $80,000
Total = $40,000 + $80,000
= $120,000
Calico Corporation produced 1 comma 900 units in Job 903. The following data is provided for Job 903 for the year: Direct materials used $ 3 comma 100 Direct labor costs $ 819 Actual manufacturing overhead rate per direct labor hour $17.15 Predetermined manufacturing overhead rate per direct labor hour $ 18.00 Direct labor hours used in Job 903 39 Direct labor rate per hour $ 21 What is the unit cost for Job 903? (Round to two decimal places.)
Answer:
Unitary cost= $2.23
Explanation:
Giving the following information:
Units= 1,900
Direct materials used $3,100
Direct labor costs $819
Predetermined manufacturing overhead rate per direct labor hour $8.00
Direct labor hours used in Job 903= 39
We will consider the predetermined overhead rate.
First, we need to calculate the total cost:
Total cost= 3,100 + 819 + 8*39= $4,231
Now, the unitary cost:
Unitary cost= 4,231/1,900= $2.23
Record the journal entry for Sales and for Cash Over and Short for each of the following separate situations.
a. The cash register's record shows $420 of cash sales, but the count of cash in the register is $430.
b. The cash register's record shows $980 of cash sales, but the count of cash in the register is $972.
Answer:
1.Dr Cash $430
Dr Cash Over and Short $10
Cr Sales $420
2.Dr Cash $980
Dr Cash Over and Short $8
Cr Sales $972
Explanation:
Preparation of the journal entry for Sales and for Cash Over and Short for each of the following separate situations.
1. Since the cash register's record already shows $420 of the cash sales in which the count of cash in the register was $430 this means we have to record the transaction as:
Dr Cash $430
Dr Cash Over and Short $10
($430-$420)
Cr Sales $420
2.. Since the cash register's record already shows $972 of the cash sales in which the count of cash in the register was $980 this means we have to record the transaction as:
Dr Cash $980
Dr Cash Over and Short $8
($980-$972)
Cr Sales $972
Suppose you borrowed $15,000 at a rate of 8.5% and must repay it in 5 equal installments at the end of each of the next 5 years. How much would you still owe at the end of the first year, after you have made the first payment
Answer:
After first payment the amount remains[tex]= $3807.1066 * 4 = $15228.4264[/tex]
Explanation:
The borrowed amount = $15000
The interest rate on borrowed amount = 8.5%
Repayment years = 5 years
Installment amount should be in five equal apart.
Now we have to find the annual payment amount (that is annuity ).
[tex]15000 = \frac{A(1-(1+r)^{-n}}{r} \\15000 = \frac{ A(1-(1+ 0.085)^{-5}}{0.085}\\1275 = A(1-(1+ 0.085)^{-5}} \\1275 = 0.3349A \\A = $3807.1066[/tex]
Since it is given that amount is repaid in 5 equal installment. Thus installment amount is $3807.1066 and after 1st installment four installment have to be paid.
So after first payment the amount remains[tex]= $3807.1066 * 4 = $15228.4264[/tex]