Answer:
Human resource management is the strategic approach to the effective and efficient management of people in a company or organization such that they help their business gain a competitive advantage. It is designed to maximize employee performance in service.
Which firm is the oligopolist? Choose one: Firm A is in retail. It is one of the largest and most popular clothing stores in the country. It also competes with many rivals and faces intense price competition. Firm B is in the auto rental business. It is not the nation’s largest rental company, but significant barriers to entry enable it to serve customers across the United States more conveniently and at a lower price than local rivals. Firm C is a restaurant in a small, isolated community. It is the only local eatery. People drive from miles away to eat there.
Answer:
Firm B is in the auto rental business. It is not the nation’s largest rental company, but significant barriers to entry enable it to serve customers across the United States more conveniently and at a lower price than local rivals.
Explanation:
For the given options we considered Firm B to be treated as the oligopolist as the firm nor its competitors would have the major impact over the market also there are entry & exit barriers from the market
So the firm B should be chosen as the oligopolist
Therefore the same should be considered and relevant
Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A is 320 units and of Product B is 640 units. There are three activity cost pools, with total cost and activity as follows:
Total Activity
Activity Cost Pools Total Cost Product A Product B Total
Activity 1 $25,530 950 200 1,150
Activity 2 $40,140 2,000 1,600 3,600
Activity 3 $10,649 150 250 400
The activity rate for Activity 2 is closest to:
a. 11.15
b. 20.07
c. 25.09
d. 42.25
Answer:
Activity 2= $11.15
Explanation:
Giving the following information:
Total Activity Activity Cost Pools Total Cost Product A Product B Total
Activity 2 $40,140 2,000 1,600 3,600
To calculate the activity rate for Activity 2, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Activity 2= 40,140 / 3,600
Activity 2= $11.15
To open and operate Boo! City, a Halloween costume and paraphernalia shop, Dwayne and Erica form a business organization that combines the limited liability aspects of a corporation with the tax advantages of a partnership. Their form of business organization is
Answer:
a limited liability company.
Explanation:
From the question we are informed about To open and operate Boo! City, a Halloween costume and paraphernalia shop, Dwayne and Erica form a business organization that combines the limited liability aspects of a corporation with the tax advantages of a partnership. In this case, Their form of business organization is limited liability company.limited liability company can be regarded as business structure in which owners are not personally liable as regards to debts or liabilities of the company.It is hybrid entities with features of corporation and partnership as well as sole proprietorship.
Select the correct revenue recognition principle for each of the following. Clear All Recognize revenue over the passage of time. Recognize revenue when the customer takes possession of the product. Recognize revenue when cash is collected. Recognize revenue when service is performed.
Answer:
Recognize revenue when service is performed.
Explanation:
Revenue recognition principle is an accounting principle which states that revenue should only be recognized when it is earned(when service has been rendered or completed) and not when cash is being collected.
What the above means is that revenue can only be earned when services are completed or rendered and not necessarily when payment is made. The reason is that payment may not be made for several weeks even after service has been rendered hence the principle or concept is incorporated into the accrual basis of accounting.
Lynx Corp. The data presented below for Lynx Corp. are for the year ended December 31, 2017: Sales (100% on credit) $1,000,000 Sales returns 30,000 Accounts receivable (December 31, 2017) 170,000 Allowance for doubtful accounts (credit balance) (before adjustment at December 31, 2017) 1,300 Estimated amount of uncollectible accounts based on aging analysis 14,000 See the data for Lynx Corp. If Lynx Corp. uses the aging of accounts receivable approach to estimate its bad debts, what amount will be reported as bad debts expense for 2017
Answer:
Allowance for Doubtful Accounts 69,000
Explanation:
If the company estimates its bad debt to be 2% of net credit sales:
sales 2,500,000
return and allowance (50,000)
net sales 2,450,000
Then, we calculate 2% of this amount:
2,450,000 x 0.02 = 49,000
As the uncollectible amounts are related to sales rather than account receivable we adjust for the full value giving an ending value of:
beginning 20,000 + adjustment 49,000 = 69,000
The costs and revenues associated with two alternatives are listed below: Alternative 1 Alternative 2 Projected revenue $ 100,000 $ 125,000 Unit-level costs 20,000 30,000 Batch-level costs 20,000 25,000 Product-level costs 15,000 15,000 Facility-level costs 10,000 10,000 Which alternative should be selected based on this information
Answer:
Alternative 2
Explanation:
Calculation to determine Which alternative should be selected based on this information
Item Alt. 1 Alt. 2
Alt. 1 Alt. 2
Projected revenue $100,000 $125,000
Unit-level costs (20,000) (30,000)
Batch-level costs (20,000) (25,000)
Product-level costs (15,000) (15,000)
Facility-level costs (10,000) (10,000)
Profit $ 35,000 $ 45,000
Thereforer Based on the above calculation the alternative that should be selected based on this information will be ALTERNATIVE 2 because it has a higher profit of the amount of $45,000
Read the scenario carefully and provide your response regarding the organizational structure and culture in the fictional organization provided below.
Scenario:
An industry consulting firm has the following structure and culture:
All the employees at this consulting firm work full-time. All the full-time consultants report to various industry directors depending on the industry contract. The company employees work mostly from home with directors or consultants renting temporary office space with or without videoconferencing when needed for either client meetings or vendor meetings. The company is very successful and has an expanding client base. The company CEO is extremely relaxed and extremely smart and expects everyone at the company to display a relaxed yet expert demeanor as well. There really are very few rules or expectations at the company as the CEO also believes in keeping processes very simple. The previous president retired about six months ago, and the CEO, together with a human resources firm, hired a new president. About two months ago the companyâs employees (i.e., consultants) started receiving emails from the new president putting pressure on all of them to produce results in less time but pressuring them to charge the clients higher sums without making any more money for themselves. In addition, the new president wants the staff to come into the office now three times a week for meetings. Three months ago the new president hired thirty new full-time consultants that seem more like salespersons than consultants to existing employees. A few of the long-time consultants have been emailing the CEO about these changes and suggesting they may go elsewhere. In the meantime, the Finance Director has detected several anomalies in the contract terms and financial results from some of the new consultants and one or two of the existing consultants.
a. Describe the organizational structure at this consulting firm and how it affects employee behavior.
b. Describe how the changes to the organizationâs culture might affect employee behavior.
c. Provide a recommendation for any adjustments you think need to be made at this organization based on the Reading and explain why?
Answer:
The response to the given question can be defined as follows:
Explanation:
This organizational structure is flat and also has a strongly attributed. Its flat culture gives experts the chance to be innovative and boost productivity. Its freedom to work or to work allowed its productivity to be enhanced. It kept them in touch with it and allowed them t stay tuned to a consultation environment. This change has caused confusion amongst this personnel and they are frustrated with the change. You've begun to approach the CEO. It indicates that they're not really happy and that the change is not welcomed. They have dismantled a whole manner for working. The company should communicate its objectives to its employees and also develop an acceptable way of working. All they need to grasp here is that before the new President has been hired, people already exist inside a specific method of work and culture. When the changes are required, an organization as a whole must be discreet and agreeable to enable the implementation easier. The manager should develop a seamless transition–
Email the staff and express your view.Include a career strategy and schedule certain objectives.Identify modifications and also be receptive to input. Not that every modification done provides the best outcomes.It ensures the restoration of the inclusive community, as well as the manner of work and objectives, are altered still.
Assume that, on January 1, 2021, Matsui Co. paid $1,795,200 for its investment in 74,800 shares of Yankee Inc. Further, assume that Yankee has 220,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $440,000 at January 1, 2021. The following information pertains to Yankee during 2021:
Net income $240,000
Dividends declared and paid $72,000
Market price of common stock on 12/31/2016 $29/share
What amount would Matsui report in its year-end 2016 balance sheet for its investment in Yankee?
a. $1,608,000.
b. $1,368,000.
c. $1,329,600.
d. None of these answer choices is correct.
Answer: $1,852,320
Explanation:
First find out the proportion owned by Matsui.
= 74,800 shares / 220,000
= 34%
The investment at the end of the year is:
= Cost of investment + Shares of net income - Share of dividend
Share of income:
= Percentage ownership * Net income
= 34% * 240,000
= $81,600
Share of dividend:
= 34% * 72,000
= $24,480
Investment at end of year:
= 1,795,200 + 81,600 - 24,480
= $1,852,320
The initial value of your 401k savings plan is $35,000. The value your 401k savings plan at a later point in time is $44,500. The percent change in the value of your 401k plan over the period is
Answer: 27.14%
Explanation:
Percent change in value of 401k = (Ending value - Initial value) / Initial value * 100%
= (44,500 - 35,000) / 35,000 * 100%
= 9,500 / 35,000 * 100%
= 27.14%
We have a $500,000 line of credit with a 10% compensating balance. The quoted interest rate is 4.5%. We need $200,000 for inventory for one year. What is the effective interest rate we are paying on this credit line
Answer:
5.0%
Explanation:
Calculation to determine the effective interest rate we are paying on this credit line
First step is to calculate cost of inventory we need
Inventory=$200,000/(1 - 0.10)
Inventory=$222,222
Second step is to calculate Interest paid
Interest paid = $222,222(.045)
Interest paid= $9,999.99
Interest paid=$10,000 (Approximately)
Now let calculate the Effective rate
Effective rate =$10,000/$200,000
Effective rate= 0.05*100
Effective rate=5.0%
Therefore the effective interest rate we are paying on this credit line is 5.0%
Consider the following game. Harry has four quarters. He can offer Sally from one to four of them. I
Answer:
i think Harry should be nice a gave Sally 2 of them.Then, they well have the same amount
Explanation:
If fixed costs are $200,000 and the unit contribution margin is $20, what amount of units must be sold in order to have a zero profit
Answer:
the amount of units that should be sold in the case when there is a zero profit is 10,000 units
Explanation:
The computation of the amount of units that should be sold in the case when there is a zero profit is given below:
No. of units to be sold is
= Fixed Cost ÷ Contribution per unit
= $200,000 ÷ $20
= 10,000 units.
hence, the amount of units that should be sold in the case when there is a zero profit is 10,000 units
Please answer the question posted in the attached image
Answer:
80
Explanation:
Years = 20
Compounding month = 4 (quarterly)
N is the number of compounding factors = 20 years * 4 periods per year = 80. So, the value of n in the F/A factor (for determining F/A factor the end of the 20 year period) is 80.
Use the following stockholders' equity section of Marcy Company on December 31, 2004 to answer questions 45 through
50. Treat each question independent of the other questions - so your answer to question 46 should not be influenced by the
answer to question 45, and so on:
Preferred Stock - 6% cumulative, $20 par value, 10,000 shares authorized, 5,000 shares issued and outstanding . . $100,000
Contributed Capital in excess of par value, Preferred Stock . . 250,000
Common Stock, $5 par value, 20,000 shares authorized, 10,000 shares issued and outstanding. . . . . . . . . . 50,000
Contributed Capital in excess of par value, Common Stock . .450,000
Total Contributed Capital . . . . . . . . . . . . $ 850,000
Retained Earnings . . . . . . . . . . . . . . . . . 150,000
Total Stockholders' Equity . . . . . . . . . . . .$ 1,000,000
45. The average issue price per share of preferred stock must have been:
A) $20.00
B) $50.00
C) $70.00
D) $35.00
E) $45.00
46. Marcy Company did not pay any dividends in 2004. In 2005, they declared and paid total dividends of $4,000, and in 2006, they declared total dividends of $20,000. How much dividends will be paid to preferred and common stockholders in 2006?
A) Preferred $20,000, Common $0
B) Preferred $8,000, Common $12,000
C) Preferred $18,000, Common $2,000
D) Preferred $14,000, Common $6,000
E) Preferred $12,000, Common $8,000
47. Marcy Company issues 2,000 shares of common stock in exchange for a building, with a market value of $100,000.
The journal entry to record the exchange will cause Total Contributed Capital to:________
A) increase by $10,000
B) increase by $100,000
C) increase by $90,000
D) increase by $80,000
E) remain unchanged
48. Marcy Company declared and issued a 15% common stock dividend on January 1, 2005, when the market price of their common stock was $12 per share. The journal entry to record the stock dividend will:_____________
A) debit Retained Earnings by $18,000.
B) credit Common Stock Dividend Distributable, $15,000
C) credit Contributed Capital in excess of par, Common Stock, $21,000
D) credit Common Stock Dividend Distributable, $10,500
E) credit Contributed Capital in excess of par, Common Stock, $7,500
49. Marcy Company declared a 100% common stock dividend on January 1, 2005, when the market price of the stock was $7.50. The entry to record this dividend will:_________
A) debit Retained Earnings,$100,000
B) credit Common Stock Dividend Distributable,$50,000
C) credit Contributed Capital in excess of par, Common Stock, $25,000
D) credit Common Stock Dividend Distributable, $100,000
E) Since this is considered a stock split, no journal entry is made
50. On January 1, 2005, Marcy Company purchased 1,000 shares of its own common stock for $22,000. On February 1, 2005, they sold 600 of these shares for $25 per share, and on March 1, 2005, they sold the remaining 400 shares for
$15 per share. The journal entry required on March 1 will include:_______
A) credit Contributed Capital, Treasury Stock, $1,800
B) debit Retained Earnings for $1,800
C) debit Retained Earnings for $2,800
D) debit Contributed Capital, Treasury Stock, $2,800
E) debit Contributed Capital, Treasury Stock, $1,80040.
Answer:
Marcy Company
45. The average issue price per share of preferred stock must have been:
C) $70.00
46. The dividends paid to preferred and common stockholders in 2006 are:
B) Preferred $8,000, Common $12,000
47. The journal entry to record the exchange will cause Total Contributed Capital to:________
C) increase by $90,000
48. The journal entry to record the stock dividend will:_____________
A) debit Retained Earnings by $18,000.
49. The entry to record this dividend will:_________
B) credit Common Stock Dividend Distributable,$50,000
C) credit Contributed Capital in excess of par, Common Stock, $25,000
50. The journal entry required on March 1 will include:
Debit Cash $6,000
Credit Treasury stock $2,000
Credit Contributed Capital in excess of par value $4,000
Explanation:
a) Data and Calculations:
Preferred Stock:
6% cumulative, $20 par value, 10,000 shares authorized,
5,000 shares issued and outstanding . . $100,000
Contributed Capital in excess of par value, Preferred Stock . . 250,000
Common Stock:
$5 par value, 20,000 shares authorized,
10,000 shares issued and outstanding. . . . . . . . . . 50,000
Contributed Capital in excess of par value, Common Stock . .450,000
Total Contributed Capital . . . . . . . . . . . . $ 850,000
Retained Earnings . . . . . . . . . . . . . . . . . 150,000
Total Stockholders' Equity . . . . . . . . . . . .$ 1,000,000
Average issue price per share of preferred stock = $70 ($100,000 + $250,000)/5,000
2005 2006
Total dividends declared $4,000 $20,000
Preferred dividend 6,000 6,000
Cumulative dividend -2,000 2,000
Common stock dividend $0 $12,000
Journal Entry:
Debit Building $100,000
Credit Common stock $10,000
APIC - common stock $90,000
January 1, 2005: Treasury stock $5,000 Contributed Capital in excess of par value $17,000 Cash $22,000
February 1, 2005: Cash $15,000 Treasury stock $3,000 Contributed Capital in excess of par value $12,000
March 1, 2005: Cash $6,000 Treasury stock $2,000 Contributed Capital in excess of par value $4,000
Durable goods are: a. consumers' goods b. raw materials combined to produce consumer goods c. those that must be replaced after each use d. those that may be stored and repaired e. none of the above
Answer:
d. those that may be stored and repaired
Explanation:
Durable goods are those goods that are stored and repaired. It is to be considered for the long-lasting so it can be stored. Also it can be repaired when they wear out
For example: mobile phone, table, chair, toys, etc
Therefore as per the given situation, the option d is correct
And, the remaining options are to be considered
In the space provided, using the letters (a-e), indicate in which category of the statement of cash flows the preceding items would. After each item, indicate with a plus sign ( ) or a minus sign (-) whether the item would be reported as an increase / inflow or a decrease/ outflow.
The following information relates to the Marshall Company for 2010:
Gain on sale of land $ 800
Bond premium amortization (by the issuer) 300
Decrease in accounts payable 700
Increase in prepaid expenses 100
Net income 9,000
Purchased equipment 10,000
Increase in salaries payable 400
Proceeds from sale of land 5,000
Decrease in inventories 1,100
Payment of dividends 600
Depreciation expense 1,000
Required:Compute net cash provided by operating activities for the Marshall Company for 2010.
Answer:
Particulars Amount
Cash Flows from Operating Activities
Net Income $9,000
Adjustments to reconcile net income to
Net Cash flows from Operating Activities
Depreciation Expense $1000
Gain On Sale of land ($800)
Decrease in accounts payable ($700)
Increase in prepaid expenses ($100)
Increase in salaries payable $400
Decrease in Inventories $1100
Amortization of bond premium ($300) $600
Net Cash flows from operating activities $9,600
You are an adviser to the Indian government. Until now, government policy in India has been to severely limit imports into India, resulting also in a low level of Indian exports. The government is considering a policy shift toward much freer trade. What are the three strongest arguments that you can offer to the Indian government about why the policy shift to freer trade is desirable for India
Answer:
1. The size of the economy as a whole grows as a result of free trade.
2. Consumers benefit from free trade.
3. Free trade can reduce cost of trading:
Explanation:
The three strongest arguments that you can offer to the Indian government about why the policy shift to freer trade is desirable for India are as follows:
1. The size of the economy as a whole grows as a result of free trade: It provides for more efficient production of goods and services. This is because it encourages goods and services to be created in areas with the finest natural resources, infrastructure, or skills and experience. It boosts productivity, which can lead to greater long-term wages. There is universal consensus that growing global trade has boosted economic growth in recent decades.
2. Consumers benefit from free trade: By removing barriers and promoting competition, it lowers prices. Quality and choice are likely to improve as a result of increased competition.
3. Free trade can reduce cost of trading: Non-tariff barriers can be reduced, resulting in less red tape and lower trading costs. Companies that deal in multiple nations might reduce their compliance expenses by working with a single set of laws. In principle, this will lower the cost of goods and services.
Nov. 5 Purchased 600 units of product at a cost of $10 per unit. Terms of the sale are 2/10, n/60; the invoice is dated November 5.
Nov. 7 Returned 25 defective units from the November 5 purchase and received full credit.
Nov. 15 Paid the amount due from the November 5 purchase, minus the return on November 7.
Required:
Prepare the journal entries to record each of the above purchases transactions of a merchandising company.
Answer:
Journal Entries:
Nov. 5: Debit Inventory $6,000
Credit Accounts payable $6,000
To record the purchase of 600 units of a product at a cost of $10 per unit.
Terms of the sale are 2/10, n/60
Nov. 7: Debit Accounts payable $250
Credit Inventory $250
To record the return of 25 defective units.
Nov. 15: Debit Accounts payable $5,750
Credit Cash Discounts $115
Credit Cash $5,635
To record the payment for the purchase.
Explanation:
a) Data and Analysis:
Nov. 5: Inventory $6,000 Accounts payable $6,000
Terms of the sale are 2/10, n/60; the invoice is dated November 5.
Nov. 7: Accounts payable $250 Inventory $250
Nov. 15: Accounts payable $5,750 Cash Discounts $115 Cash $5,635
In a competitive market with a linear upward-sloping supply curve and a linear downward-sloping demand curve, the government imposes a $10 tax per unit bought and sold. The tax causes the equilibrium quantity to fall from 89 units to 77 units. The deadweight :_______
Answer:
$105
Explanation:
Missing word "The deadweight loss of this tax is...?"
Change in price = $10
Original quantity = 89 units
New quantity = 77 unit
Change in quantity= 89 units-77 units = 12 units
Dead-weight loss = 1/2 * Change in price * Change in quantity
Dead-weight loss = 1/2 * $10 * $21
Dead-weight loss = $105
Therefore, the dead-weight loss of this tax is $105.
Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space (utilities included) for $3,000 per month. Her total revenue for the year was $100,000. If Christine hadn't worked as a consultant, she would have worked at a real estate firm earning $40,000 a year. Last year, Christine's explicit costs were ______, and her implicit costs were ______.
Answer:
Explicit costs - $51,000
Explicit costs are those for which a person incurs in actual spending of money. In this case, Christine had to pay $15,000 in wages, and $36,000 in rent ($3,000 x 12). These are expenses that she had to pay money for, and that had to be accounted for in the accounting books, and in the financial statements. These are in other words, explicit costs.
Implicit costs - $40,000
Implicit costs are simply the opportunity costs. An opportunity cost is the cost of the next more valuable alternative when faced with two or more options. No money is paid for this costs. The implicit costs for Christine were the $40,000 that she not receive as wages if she had continued working at a real state firm.
You want to have $2.7 million when you retire in 37 years. You feel that you can save $600 per month until you retire. What APR do you have to earn in order to achieve your goal
Answer:
9.87%
Explanation:
Calculation to determine What APR do you have to earn in order to achieve your goal
$2.7 million = $600{[(1 + r)444 − 1] / r}
r = .0082*100
r=.82%
r = .82% × 12
r = 9.87%
Therefore the APR you have to earn in order to achieve your goal is 9.87%
Supply chain management:is based on the concept of just-in-timefocuses on removing scheduling bottlenecks within the companyfocuses on the internal routing of products from raw materials to finished goodsis a complex computerized system for managing resources efficientlyis accurately described by none of the above
Answer:
is based on the concept of just-in-time.
Explanation:
Supply chain management can be defined as the effective and efficient management of the flow of goods and services as well as all of the production processes involved in the transformation of raw materials into finished products that meet the insatiable want and need of the consumers.
Generally, the supply chain management involves all the activities associated with planning, execution and supply of finished goods and services from the manufacturers to the consumers.
Additionally, all businesses tend to use supply chain management to eliminate waste and maximize value for growth and development.
Hence, supply chain management is based on the concept of just-in-time (JIT) because it is a management framework that is focused on cutting manufacturing costs while increasing efficiency between suppliers and consumers through the use of a proper inventory system.
Cash $13,000; Short-term Debt $21,000; Buildings and Equipment $420,000; Inventory, $44,000; Notes Payable $60,000; Accumulated Depreciation $110,000; Common Stock $80,000; Accounts Receivable $38,000; Retained Earnings $237,000; Accounts Payable $17,000.
Total assets on the balance sheet are: _________
Answer:
$405,000
Explanation:
Computation of total assets on balance sheet.
Fixed assets:
Building and equipment
$420,000
Less:
Accumulated depreciation
($110,000)
Net book value
$310,000
Total fixed assets $310,000
Current assets:
Cash
$13,000
Inventory
$44,000
Accounts receivable
$38,000
Total current assets $95,000
Therefore,
Total assets
= Total fixed assets + Total current assets
= $310,000 + $95,000
= $405,000
You are holding a stock that has a beta of 1.39 and is currently in equilibrium. The required return on the stock is 20.47%, and the expected return on the market portfolio is 16.50%. What would be the expected return on the stock if the expected market return increased to 21.00% while the risk-free rate and beta remained unchanged
Answer: 26.73%
Explanation:
You can calculate the expected return using the Capital Asset Pricing Model (CAPM).
Formula is:
Expected return = Risk free rate + beta * (Market return - risk free rate)
Use the previous figures to solve for the risk free rate:
20.47% = Rf + 1.39 * (16.50% - Rf)
20.47% = Rf + 22.935% - 1.39R
20.47% - 22.935% = Rf - 1.39Rf
-2.465% = -0.39Rf
Rf = -2.465% / -0.39
= 6.32%
New expected return is:
= 6.32% + 1.39 * (21% - 6.32%)
= 26.73%
Solutions to the moral hazard problem include Select one: a. low net worth b. greater reliance on equity contracts and less on debt contracts c. monitoring and enforcement of restrictive covenants. d. greater reliance on debt contracts than financial intermediaries
Answer:
C) monitoring and enforcement of restrictive covenants.
Explanation:
Moral hazard can be regarded as the situation which take place when an individual get some chances whereby he/she can take advantage of a financial deal or financial situation, when he/she knows that all the risks as well as fallout will be accounted to another party. moral hazard can be reduced by strong up policies which will prevent immoral behavior as well as regular monitoring. One of the Solutions to the moral hazard problem is monitoring and enforcement of restrictive covenants.
The balance in the prepaid insurance account, before adjustment at the end of the year, is $18,630. The year end is March 31.
Journalize the March 31 adjusting entry required under each of the following alternatives for determining the amount of the adjustment: (a) the amount of insurance expired during the year is $15,300; (b) the amount of unexpired insurance applicable to future periods is $3,330. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Prepaid Insurance
15 Land
16 Equipment
17 Accumulated Depreciation-Equipment
19 Accumulated Depreciation-Automobiles
LIABILITIES
21 Accounts Payable
22 Unearned Fees
23 Salaries Payable
24 Taxes Payable
EQUITY
31 John Doe, Capital
32 John Doe, Drawing
REVENUE
41 Fees Earned
EXPENSES
51 Advertising Expense
52 Insurance Expense
53 Rent Expense
54 Salary Expense
55 Supplies Expense
56 Utilities Expense
57 Depreciation Expense
59 Miscellaneous Expense
Journalize the March 31 adjusting entry required when the amount of unexpired insurance applicable to future periods is $8,750. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
A. Dr Insurance Expense $15,300.00
Cr Prepaid Insurance 115,300.00
B. Dr Insurance Expense $15,300.00
Cr Prepaid Insurance 115,300.00
C. Dr Insurance Expense $9,880.00
Cr Prepaid Insurance $9,880.00
Explanation:
A. Preparation of the March 31 adjusting entry required when the amount of insurance expired during the year is $15,300
Dr Insurance Expense $15,300.00
Cr Prepaid Insurance 115,300.00
B. Preparation of the March 31 adjusting entry required when the amount of unexpired insurance applicable to future periods is $3,330
Dr Insurance Expense $15,300.00
Cr Prepaid Insurance $5,300.00
($18,630-$3,330)
C.Preparation of the March 31 adjusting entry required when the amount of unexpired insurance applicable to future periods is $8,750
Dr Insurance Expense $9,880.00
Cr Prepaid Insurance $9,880.00
($18,630-$8,750)
Fed up with her working conditions at the university, Juanita decides to invest in a state-of-the-art sewing machine and produce limited quantities of her own clothing designs. After a few months of operation, she decides to apply some of the forecasting techniques she mastered in school. Which of these statements about her forecasts is correct?
a. Her forecasts will probably be 100% accurate.
b. Her demand forecasts for a year from now will probably be more accurate than her demand forecasts for three months from now.
c. Her demand forecasts for each style of skirt will be more accurate than her demand forecasts for all skirts.
d. The best way for her to determine the amount of fabric she needs is to forecast it based on her customer orders for each type of skirt.
Answer:
Juanita
The correct statement about her forecasts is:
c. Her demand forecasts for each style of skirt will be more accurate than her demand forecasts for all skirts.
Explanation:
Since she has produced limited quantities of her own clothing designs, Juanita is in a better position to determine the demand for each style of skirt that she had produced. This knowledge, which she acquired after a few months of operation, coupled with the forecasting techniques she had mastered in school, will enable her to make a demand forecast for her particular designs than she can make for all design types of skirts.
Weighted-average method, spoilage, equivalent units. (CMA, adapted)
Consider the following data for November 2017 from MacLean Manufacturing Company, which makes silk pennants and uses a process-costing system. All direct materials are added at the beginning of the process and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value MacLean Manufacturing Company uses the weighted-average method of process costing
Physical Units Direct Materials
Pennants
Work in process, November 1 1,350 $ 966
Started in November 2017 ?
Good units completed and transferred 8,800
out during November 2017
Normal spoilage 80
Abnormal spoilage 50
Work in process, November 30 1700
Total costs added during November 2017 $10,302
aDegree of completion: direct materials, 100%, conversion costs, 45%
bDegree of completion: direct materials, 100%, conversion costs, 35%
Compute equivalent units for direct materials and conversion costs.
Answer:
Equivalent Units: Materials = 10630
Equivalent Units : Conversion = 9525
Explanation:
MacLean Manufacturing Company
Weighted-Average Method
Process Costing
Particulars Units % Of Completion Equivalent Units
Materials Conversion Materials Conversion
Units completed
and transferred 8,800 100 100 8800 8800
Add
Ending Inventory 1700 100 35 1700 595
Normal Spoilage 80 100 100 80 80
Abnormal Spoilage 50 100 100 50 50
Equivalent Units 10630 9525
The weighted average method equivalent unit production implies that the units completed and the ending inventory completed plus any spoilage normal or abnormal is taken is accounted for.
The weighted average method EUP can also be determined by adding the beginning units and units started
The normal and abnormal spoilage are taken 100 % because all the spoilage is evident once the goods are completed.
A company reported total equity of $157,000 at the beginning of the year. The company reported $222,000 in revenues and $171,000 in expenses for the year. Liabilities at the end of the year totaled $98,000. What are the total assets of the company at the end of the year
Answer:
$306,000
Explanation:
The computation of the total assets is shown below;
The accounting equation is
Assets = Liabilities + Equity
But before that the ending equity should be determined
So,
Profit = Revenue - Expenses
= $222,000 - $171,000
= $51,000
Thus, equity at the end of the year is
= $157,000 + $51,000
= $208,000
Now Assets at the end of the year are,
Assets is
= $208,000 + $98,000
= $306,000
Pug Corporation has 11,000 shares of $10 par common stock outstanding and 21,000 shares of $100 par, 5% noncumulative, nonparticipating preferred stock outstanding. Dividends have not been paid for the past two years. This year, a $165,000 dividend will be paid. What are the dividends per share for preferred and common, respectively
Answer:
the dividends per share for preferred and common is $5 and $5.45 respectively
Explanation:
The computation of the dividend per share for both stocks is as follows:
For preference one
= 5% of $100
= $5
And, for common one
= ($165,000 - (21,000 × 100 × 5%)) ÷ (11,000 shares)
= $5.45
hence, the dividends per share for preferred and common is $5 and $5.45 respectively