Wheat Corporation pays $ 528 comma 000 for 100 comma 000 shares to acquire 45% common stock of Grain Investments, Inc. on January 5, 2018. Wheat Corporation sells 12 comma 000 shares for $ 54 comma 000 on January 6, 2018. What is the correct journal entry for the transaction on January 6, 2018? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
Answers
Answer:
Explanation:
Based on the information given in the question, the following can be deduced:
The purchase price per share will be:
= $528,000/100,000
= $5.28
The selling price per share will be:
= $54,000/12,000 = $4.50
The loss on the sale of the marketable securities will then be:
= 12,000 x (4.50 - 5.28)
= 12,000 × 0.78
= $9,360
The file has been attached.
Related Questions
Use the following data to determine the total dollar amount of assets to be classified as current assets
Carne Auto Supplies Balance Sheet December 31, 2012
Cash $60,000 Accounts Payable $65,000
Prepaid Insurance 40,000 Salaries Payable 10,000
Accounts Receivable 50,000 Mortgage Payable 90,000
Inventory 70,000 Total Liabilities $165,000
Land held for investment 80,000
Land 95,000
Buildings $100,000 Common Stock $120,000
Less Accumulated Retained Earnings 250,000
Depreciation (30,000) 70,000 Total stockholder's equity $370,000
Trademarks 70,000 Total Liabilities and Stock equity $535,000
Total Assets $535,000
Choose the correct answer:
a. $245,000
b. $315,000
c. $165,000
d. $195,000
Answers
Answer:
the total dollar amount of assets to be classified as current assets is $220,000.
Note that the correct option is $220,000 based on the information provided in the question. However, this is not included in the option. Kindly confirm the correct options from your teacher.
Explanation:
Current assets can be described as a group of assets that are can be easily converted to cash within a year. Current assets are therefore assets which are expected to be used, sold or consumed in a normal business operations within a financial year.
Current assets is one of th component of a balance sheet and its components include cash, inventories, account receivables, advance payment (prepayments), and others.
For this question, the total dollar amount of assets to be classified as current assets can be determined as follows:
Carne Auto Supplies
Current Assets Amount Determination
December 31, 2012
Particulars Amount ($)
Cash 60,000
Prepaid Insurance 40,000
Accounts Receivable 50,000
Inventory 70,000
Total current assets 220,000
Therefore, the total dollar amount of assets to be classified as current assets is $220,000.
You need to have $33,250 in 20 years. You can earn an annual interest rate of 4 percent for the first 6 years, 4.6 percent for the next 5 years, and 5.3 percent for the final 9 years. How much do you have to deposit today
Answers
Answer:
The amount needed to be deposited today = $13184.93
Explanation:
From the given information;
You need to have $33,250 in 20 years.
Annual interest rate :
4 percent for the first 6 years
4.6 percent for the next 5 years
5.3 percent for the final 9 years
The amount needed to be deposited today =
[tex]\dfrac{33250}{(1+\dfrac{4}{100})^6 \times (1+\dfrac{4.6}{100} )^5 \times (1+\dfrac{5.3}{100} )^9 }[/tex]
The amount needed to be deposited today = [tex]\dfrac{33250}{(1+0.04)^6 \times (1+ 0.046 )^5 \times (1+0.053 )^9 }[/tex]
The amount needed to be deposited today = [tex]\dfrac{33250}{(1.04)^6 \times (1.046 )^5 \times (1.053 )^9 }[/tex]
The amount needed to be deposited today = [tex]\dfrac{33250}{1.265319018 \times 1.252155953 \times 1.591678466 }[/tex]
The amount needed to be deposited today = $13184.93
During the first year of Wilkinson Co.'s operations, all purchases were recorded as assets. Supplies in the amount of $28,800 were purchased. Actual year-end supplies amounted to $6,600. The adjusting entry for store supplies will
Answers
Answer:
The expense account will be increased by $22,200
Explanation:
During the first year, all purchases were recorded as assets instead of expenses(supplies). This means asset account have been overstated while expenses account have been understated.
The adjusting entry will be
Supplies purchased - Actual year-end supplies
$28,800 - $6,600
$22,200.
The expense account will be increased by $22,200
"A customer buys 10M of Allied Corporation 8 1/4% debentures, M '34, at 90 on Thursday, Oct 9th. The interest payment dates are Feb. 1st and Aug. 1st. The trade settled on Monday, October 13th. The amount of the next interest payment will be:"
Answers
Answer: $412.50
Explanation:
10M bonds refers to bonds that are valued at $10,000.
The interest payment on these debentures are twice in a year meaning that they are semi-annual.
The interest paid is 8 1/4% which is 8.25%.
The interest paid is therefore;
= 8.25% * 10,000
= $825
Interest is stated at an annual rate so this figure is for the year but the interest is to be paid semi-annually;
= 825/2
= $412.50
a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesses to support the project and now needs to borrow $2,000,000 to complete the project. It therefore decides to issue $2,000,000 of 11%, callable, 10-year bonds. These bonds were issued on January 2018 and pay interest on January 1 and July 1. The bonds yield 10%. Instructions: a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018 b. Prepare a bond amortixation schedule up to and including January 1, 2022 c. Prepare the journal entries to record the interest payments on January 1, 2020 and January 1, 2021. d. Prepare the journal entry to record the bond called on January 2021 at 106
Answers
Answer:
a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018
we must first determine the market price of the bonds:
PV of face value = $2,000,000 / (1 + 5%)²⁰ = $753,778.97 ≈ $753,779
PV of coupon payments = $110,000 x 12.462 (PV annuity factor, 5%, 20 periods) = $1,370,820
market value of the bonds = $753,779 + $1,370,820 = $2,124,599
January 1, 2018, bonds are issued at a premium
Dr Cash 2,124,599
Cr Bonds payable 2,000,000
Cr Premium on bonds payable 124,599
b. Prepare a bond amortization schedule up to and including January 1, 2022
since we are not told which amortization method to use, I will use the straight line method.
Date Interest Cash Premium Carrying
expense paid amortization value
7/2018 $103,770 $110,000 $6,230 $2,118,369
1/2019 $103,770 $110,000 $6,230 $2,112,139
7/2019 $103,770 $110,000 $6,230 $2,105,909
1/2020 $103,770 $110,000 $6,230 $2,099,679
7/2020 $103,770 $110,000 $6,230 $2,093,449
1/2021 $103,770 $110,000 $6,230 $2,087,219
7/2021 $103,770 $110,000 $6,230 $2,080,989
1/2022 $103,770 $110,000 $6,230 $2,074,759
c. Prepare the journal entries to record the interest payments on January 1, 2020 and January 1, 2021.
bond premium amortization per coupon = 124,599 / 20 = $6,229.95 ≈ $6,230
January 1, 2020, coupon payment
Dr Interest expense 103,770
Dr Premium on bonds payable 6,230
Cr Cash 110,000
January 1, 2021, coupon payment
Dr Interest expense 103,770
Dr Premium on bonds payable 6,230
Cr Cash 110,000
d. Prepare the journal entry to record the bond called on January 2021 at 106
Dr Bonds payable 2,000,000
Dr Premium on bonds payable 87,219
Dr Loss on retirement of debt 32,781
Cr Cash 2,120,000
Zero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics:
Fuel $11,506
Flight crew salaries 8,813
Airplane depreciation 4,161
Variable cost per passenger—business class 45
Variable cost per passenger—economy class 35
Round-trip ticket price—business class 515
Round-trip ticket price—economy class 285
It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. If required round the answers to nearest whole number.
Required:
a. Compute the break-even number of seats sold on a single round-trip flight for the overall product. Assume that the overall product is 10% business class and 90% economy class tickets.
b. How many business class and economy class seats would be sold at the break-even point?
Answers
Answer:
a. Compute the break-even number of seats sold on a single round-trip flight for the overall product. Assume that the overall product is 10% business class and 90% economy class tickets.
90 ticketsb. How many business class and economy class seats would be sold at the break-even point?
business class = 9 ticketseconomy class = 81 ticketsExplanation:
Fixed costs:
Fuel $11,506 Flight crew salaries $8,813 Airplane depreciation $4,161Total $24,480Variable costs:
Variable cost per passenger - business class 45 Variable cost per passenger - economy class 35Contribution margin:
Business class ticket = $515 - $45 = $470Economy class ticket = $285 - $55 = $250Weighted average contribution margin:
(10% x $470) + (90% x $250) = $272break even point in units = $24,480 / $272 = 90 seats
business class = 90 x 10% = 9 seats
economy class = 90 x 90% = 81 seats
Windsor Corporation has retained earnings of $702,500 at January 1, 2017. Net income during 2017 was $1,426,500, and cash dividends declared and paid during 2017 totaled $83,200. Prepare a retained earnings statement for the year ended December 31, 2017. Assume an error was discovered: land costing $89,590 (net of tax) was charged to maintenance and repairs expense in 2014. (List items that increase retained earnings first.)
Answers
Answer:
The end of the year balance in retained earnings after correction of prior period error is $2,135,390
Explanation:
It is important to note that the error discovered has reduced retained earnings previously and by the time it is corrected retained earnings would increase by that amount of $89,590
Beginning retained earnings $702,500
net income for 2017 $1,426,500
dividends declared and paid in 2017 ($83,200)
correction of prior period error $89,590
Ending retained earnings $2,135,390
Mason Company's schedule of cost of goods manufactured is as follows:
Costs incurred:
Direct labor cost $70,000
Purchases of raw materials $118,000
Manufacturing overhead $80,000
Advertising expense $90,000
Sales salaries $50,000
Depreciation, office equipment $3,000
Beginning of year End of the year
Inventories:
Raw materials $7,000 $15,000
Work in process $10,000 $5,000
Finished goods $20,000 $35,000
Required:
a. Prepare a schedule of cost of goods manufactured.
b. Prepare the cost of goods sold section of Mason Company's income statement for the year.
Answers
Answer:
Mason Company
a. A schedule of cost of goods manufactured:
Beginning inventory of raw materials $7,000
Purchases of raw materials $118,000
Less ending inventory of raw materials $15,000
Cost of raw materials used in production $110,00
Beginning Work in process $10,000
Cost of raw materials used $110,000
Direct labor costs $70,000
Manufacturing overhead $80,000
Total production cost $270,000
Ending work in process $5,000
Cost of goods manufactured $265,000
b. Cost of goods sold section of Mason Company's income statement for the year:
Beginning Finished goods inventory $20,000
Cost of goods produced $265,000
less ending finished goods inventory $35,000
Cost of goods sold $250,000
Explanation:
a) The cost of goods manufactured includes the beginning inventory of raw materials and Work in process, the purchase of raw materials during the period, direct labor costs and manufacturing overhead. Then the costs of ending inventory of raw materials and work in process are subtracted to get the cost of goods manufactured.
b) The cost of goods sold includes the cost of beginning inventory of finished goods and the cost of goods manufactured with the subtraction of the ending inventory of finished goods.
E-Eyes just issued some new preferred stock. The issue will pay an annual dividend of $13 in perpetuity, beginning 11 years from now. If the market requires a 6 percent return on this investment, how much does a share of preferred stock cost today
Answers
Answer:
The cost of preferred stock today is $114.14
Explanation:
To calculate the cost of preferred stock today, we first need to determine the cost of each share of preferred stock 11 years from now when it starts paying dividends and then discount it back to today's value.
The preferred stock pays a constant dividend and after equal interval of time for an indefinite period. Thus, it is like a perpetuity. The present value of perpetuity is,
Present value = Dividend / r
Where,
r is the required rate of return
Value Year 11 = 13 / 0.06
Value Year 11 = 216.6666667
The present value is,
Present value = 216.6666667 / (1+0.06)^11
Present value = $114.137 rounded off to $114.14
Under which conditions, according to the Porter five-forces model, can a supplier group gain power?
a. When there is low differentiation by the supplier
b. When there is a lack of importance of the buyer to the supplier group
c. When there is not a dominance by a few suppliers
d. When the supplier group does not pose a threat of forward integration
Answers
Answer:
b. When there is a lack of importance of the buyer to the supplier group
Explanation:
According to Porter there are five forces that can cause rivalry in a production industry. These are supplier power, threat of new entrants, buyer power, threat of substitutes, and degree of rivalry.
Supplier power is when suppliers are able to benefit from the producers by increasing prices of inputs and gaining some industry profit. Since suppliers supply input and labour to the producer they have a greater control of there is lack of importance of the buyer to the supplier group.
This means that the supplier group has more control on price and quality it supplies to the buyer with buyer having little choice but to buy.
If however buyer is more important to the supplier it means they can control price and quality of inputs
At the beginning of the year, Ann and Becky own equally all of the stock of Whitman, Inc., an S corporation. Whitman generates a $120,000 loss for the year. On the 189th day of the year, Ann sells her half of the Whitman stock to her son, Scott. Becky's stock basis is $41,300 How much of the Whitman loss belongs to Ann and Becky? In your computations, round any divisions to four decimal places. Round the final answer to the nearest dollar. Assume a 365 day year. Ann's share of Whitman's loss is $_______ and Becky's share of the loss is $______ However,______ loss is limited to $__________.
Answers
Answer:
1. Share of Ann's Loss: $31,048
2. Share of Becky's Loss: $60,000
3. Maximum Loss Allowed: $41,300
Explanation:
The total loss for the year is $120,000 and both Ann and Becky own 50% each.
1. Share of Ann's Loss:
Ann had ownership of Whitman Inc. for 189 days which means the 50% of the total loss would be further lessened by 189/365 factor.
Mathematically:
Ann's Loss = $1,20,000 * 50% * (189/365) = $31,048 Loss
2. Share of Becky's Loss:
This means that the share of loss for Becky would be = $120,000 * 50%
= $60,000
3. Maximum Loss Allowed:
As the stock basis is $41,300, hence the maximum loss for Becky would be $41,300.
In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption function is Upper C equals 1000 plus 0.9 Upper YC = 1000 + 0.9Y.
Thus, autonomous consumption is _________ nothing and the marginal propensity to consume is ______________.
A consumer whose income increases by $100 will increase consumption by $ ____________.
Answers
Answer:
Autonomous consumption is $1,000 and the marginal propensity to consume is 0.9.
A consumer whose income increases by $100 will increase consumption by $90.
Explanation:
Given C = 1000 + 0.9Y
Autonomous consumption refers to consumption expenditure of consumers that does not depend on income. Therefore, autonomous consumption is therefore the consumption expenditure made by the consumers when they do not have income or when income is zero (i.e. when Y = 0).
Substituting for Y = 0 into the consumption function, we can obtain autonomous consumption is follows:
Autonomous consumption = 1000 + (0.9 * 0) = 1,000
The marginal propensity to consume refers to the proportion of the increase in disposable income that is spent on the consumption of goods and services by a consumer. From the consumption function, the marginal propensity to consume is 0.9.
Since marginal propensity to consume is 0.9, a consumer whose income increases by $100 will therefore increase consumption by $90 (i.e. $100 * 0.9 = $90).
Which of the following statements about the General Agreement on Tariffs and Trade (GATT) are true?
A. It was established to reduce barriers to international trade.
B. It was established as a result of the Uruguay Round of negotiations.
C. Its original provisions governed trade in both goods and services.
D. It was established in 1947.
Answers
Answer:
A and D
Explanation:
Here, we want to select which of the options are correct;
A is correct
The GATT was established to provide access to more international trade between countries through the reduction of tarrifs. Hence , it helped reduce the tariff barrier in international trade.
B is incorrect
It is the other way round.
In fact, it is thus same Uruguay round of negotiations that gave birth to its successor which is WTO(world trade organization)
C is incorrect
The service provision is under the GATS( General agreement on trades in services).
The service branch was negotiated in 1995 as against the goods branch already in place in 1947
D is correct
It was indeed negotiated in 1947
On July 1, 2018, Larkin Co. purchased a $530,000 tract of land that is intended to be the site of a new office complex. Larkin incurred additional costs and realized salvage proceeds during 2018 as follows:
Demolition of existing building on site $71,000
Legal and other fees to close escrow 12,400
Proceeds from sale of demolition scrap 9,900
What would be the balance in the land account as of December 31, 2013?
Answers
Answer:
$603,500
Explanation:
Larkin Co.
Purchase cost = $530,000
Add: Demolition of existing building on site = $71,000
Add: Legal and other fees to close escrow= $12,400
Less: Proceeds from sale of demolition scrap = $9,900
Balance of the land account = $603,500
A banker is analyzing a company which operates in the automotive industry. Which of the following will likely be the banker's most important consideration in determining whether the company should receive a loan?
a. The automotive industry suffers from political pressures concerning environmental regulation of products.
b. Inflation has been consistently high for several years.
c. The company has a large amount of interest payments related to other outstanding loans.
d. The company has state-of-the-art automated equipment which enhances the efficiency of its operating process.
Answers
Answer:
A Banker's Analysis of an Automotive Company for Loan
Most important consideration in determining grant of loan:
c. The company has a large amount of interest payments related to other outstanding loans.
Explanation:
The large amount of interest payments related to other outstanding loans means that the automotive company is highly leveraged. To grant a bank loan will have added leverage risk.
In analyzing the request for a loan, a bank should consider the borrowing company's credit history. With so much in interest payments, the company has already borrowed heavily. The banker should consider the application of the past debts. Were they used in investments or for working capital purposes or to repay liabilities and shareholders.
The banker also needs to review the cash flow history with line with the above, to know how the past debts have been applied, as already stated above. In reviewing the cash flow history, the projections of the company should be tested for sustainability. "Has the company been meeting its past projections?" is a relevant question to understand.#
Lastly, the banker should also consider the existence of collateral for the loan, especially given that the company is highly leveraged. Are there unencumbered assets that can serve as collateral in case of default?
How might an interactive leader like Mary Barra communicate a policy change that impacts all GM employees from executive-level managers to assembly line workers
Answers
Answer:
a. Create task forces at different levels of the organization that communicate the benefits of the policy change
c. Hold a series of town hall meetings to discuss the policy change and listen to employee concerns
d. Hold informal meetings with key managers, department heads, and staff employees to discuss the policy change to develop best practices for communicating the change to other employees
Explanation:
Creating a task force at different levels in GM whose sole purpose is to communicate the new policy change and all the effects it would have will ensure that employees at all levels have a better chance of learning of the changes.
Also by holding a series of Town Hall meetings where employees can voice concerns to Mary Barra and other top executives for clarification would be very useful in the drive to helping the employees learn more about the policy change because they will hear it "from the horse's mouth" so to speak.
Informal meetings with front-line and other leaders in the company about the change can go a long way in the information being disseminated as the leaders will take the information back to their subordinates and will be more informed as to how to clarify concerns they may have.
Proposals related to ________ include controlling the ingredients that go into certain products and packaging as well as reducing the level of advertising "noise."
Answers
Answer:
quality of life
Explanation:
The consumers have the right to have an influence on products and marketing that will help with the quality of life. This leds to proposals that are related to this right that look to avoid a big amount of messages in an advertising that distract from the main idea and to be informed about the materials or ingredients used in goods. According to this, the answer is that proposals related to quality of life include controlling the ingredients that go into certain products and packaging as well as reducing the level of advertising "noise."
the 360 degree feedback performance appraisal system tries to improve performance ratings by forcing managers to :
Answers
Answer:
Include information from a wide range of sources in their reviews.
Explanation:
Performance appraisal refers to the evaluation of employees' performance by the human resource managers in an organization. The 360-degree feedback performance appraisal system is a type of performance appraisal that sources information about an employee from various sources, which ranges from subordinates, lateral and supervisory sources. This implies that the manager seeks to gain insight about the employee from his fellow employees, from his supervisors, his subordinates, and sometimes from external sources such as the customers who interact with that employee on a daily basis.
Most managers use this system of appraisal for developmental purposes and evaluation of an employee's performance. Information sourced can then be used to help the employees improve on their skills or promote/demote them.
On January 1, 2019, Brooks, Inc., borrows $90,000 from a bank to purchase machinery. Brooks signs a 5 percent installment note requiring four annual payments of principal plus interest. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Date General Journal Debit CreditJan 01
Answers
Answer:
January 1, 2019, loan received from bank
Dr Cash 90,000
Cr Notes payable 90,000
January 1, 2020, first installment paid
Dr Notes payable 22,500
Dr Interest expense 4,500
Cr Cash 27,000
January 1, 2021, second installment paid
Dr Notes payable 22,500
Dr Interest expense 3,375
Cr Cash 25,875
January 1, 2022, third installment paid
Dr Notes payable 22,500
Dr Interest expense 2,250
Cr Cash 24,750
January 1, 2023, fourth installment paid
Dr Notes payable 22,500
Dr Interest expense 1,125
Cr Cash 23,625
If $1000 was invested in government bonds in 1924, how much it will be worth in 1994 given that the bonds averaged 7% return per year?
Answers
Answer:
The total money in 1994 is $113989.392.
Explanation:
Present value of invested money (PV) = $1000
Total number of years for which the money is invested (n ) = 70 years
The interest rate (r ) = 7%
Now we have to calculate the total amount after 70 years when the invested money earns 7% interest rate.
The amount after 70 years.
[tex]= PV( 1 + r)^{n} \\= 1000 (1 + 0.07)^{70} \\= 113989.392 \ dollars.[/tex]
What is Tesla’s long-term portion of capital lease obligations as of December 31, 2013 (in $ thousands)? Please provide your answer without comma separator or decimal (Ex: 23456)
Answers
Answer:
Tesla's long-term portion of capital lease obligations as of December 31, 2013 (in $ thousands)
= 10460
This figure was obtained from the sec.gov/Archives/edgar/data.com.htm site.
Explanation:
A capital lease obligation is the amount of lease for capital assets under a capital lease agreement. Generally, lease agreements are usually classified as either operating lease or capital lease. The portion of capital lease obligations that are maturing within the current accounting period or within the next 12 months are classified as current. The reminder which matures after the next 12 months are classified as long-term.
Accounting for leases are currently under the purview and guidance of IFRS 16 Leases or FASB's ASC 842 Leases.
Based on its 1Q 2014 press release, what is the maximum $ amount the Coca-Cola Company expects to spend in repurchasing its shares during the current fiscal year. Please provide your answer in billions, with 1 decimal place (Ex: 6.2)
Answers
Answer: $3.0 billion.
Explanation:
According to the Press Statement released by Coca-Cola on April 15, 2014 as found on the SEC website, the company plans to spend between $2.5 billion and $3.0 billion on share repurchases by the end of the 2014 fiscal year.
As at the end of the first quarter of 2014, the Company had already spent $713 million in share repurchases and so were optimistic about their repurchases plan.
An example of forbearance is ________. Select one: A. past consideration B. selling assets to avoid payment to creditors C. a promise to do something that you are already obligated to do D. refraining from the use of liquor, assuming the promisor is of legal drinking age E. one party making a promise, knowing the other party will rely on it
Answers
Answer:
D. refraining from the use of liquor, assuming the promisor is of legal drinking age
Explanation:
forbearance is having self control or restraint.
An adult of legal age that restrains himself from drinking exhibits forbearance
Kaye Co. issued $7 million face amount of 5%, 10-year bonds on April 1, 2013. The bonds pay interest on an annual basis on March 31 each year. Required: a. Assume that market interest rates were slightly lower than 5% when the bonds were sold. Would the proceeds from the bond issue have been more than, less than, or equal to the face amount?
Answers
Answer:
By extracting the information
Bond issued= 7 million
Maturity period= 10 years
Risk free or Interest rate = 5%
As the market interest value is lesser than 5% of the stated interest rate, thus the bond will be sold for more than its face amount. The lesser the discount rate or market interest rate, the greater the present value of the associated cash flow with the bond becomes. Buyer are ready to pay a premium for getting more interest than they may perhaps get in the marketplace intended for a bond of parallel risk and maturity.
Not only do businesses benefit from the protections of __________, consumers do as well; they allow consumers to correctly identify the products they want to purchase.
Answers
Answer:
Trademarks.
Explanation:
Trademarks can be said to be symbols or logos that are been attached to a certain product that makes it distinct from the others and with times turns to shine as an authenticity mark or quality symbol of the merchant or the said product.
The above discusses one of the crucial benefits of trademarks; this is seen to be beneficial not only to the business owners or merchants but the customers are inclusive here, this is because these logos help them ascertain or easily identify their likely said products with little or no stress, and this is with peace of mind.
Cepeda Corporation has the following cost records for June 2017.
Indirect factory labor $5,230
Factory utilities $470
Direct materials used $21,540
Depreciation, factory equipment$1,760
Work in process, 6/1/17 $3,820
Direct labor $41,680
Work in process, 6/30/17 $3,930
Maintenance, factory equipment $1,860
Finished goods, 6/1/17 $5,210
Indirect materials $2,870
Finished goods, 6/30/17 $8,510
Factory manager's salary $3,550
Prepare a Cost of Goods manufactured schedule for June 2017.
Answers
Answer:
Cepeda Corporation
Cost of Goods manufactured schedule for June 2017
Work in process, 6/1/17 $3,820
Direct materials used $21,540
Direct labor $41,680
Work in process, 6/30/17 ($3,930 ) $63,110
Factor Overheads:
Factory utilities $470
Depreciation, factory equipment $1,760
Maintenance, factory equipment $1,860
Indirect materials $2,870
Indirect factory labor $5,230
Factory manager's salary $3,550 $15,740
Total cost of manufactured goods $78,850
Explanation:
The cost of goods manufactured is made up of the beginning work in process, direct materials cost, direct labor costs, and factory overheads minus the ending work in process. It is this figure that decides the product cost per unit, which will be a consideration in deciding the selling price in some market situations.
If a borrower receives a loan with a variable interest rate, then the interest rate on the loan Multiple Choice always goes up. is subject to the price of the home. always goes down. is fixed. may go up or down.
Answers
Answer: may go up or down.
Explanation:
From the question, we are told that a borrower receives a loan with a variable interest rate, It should be noted that a variable interest rate loan is a form of loan whereby the interest rate that is charged on outstanding balance is not fixed but varies when there are changes in the market interest rates.
Based on this explanation, the payments the borrower will make will vary as they can either go up or down.
A borrower receives a loan with a variable interest rate, then the interest rate on the loan may go up or down.
A variable interest rate is an interest rate that is anchored on a benchmark interest rate or index. The variable interest rate changes with changes that occurs in the benchmark interest rate. A variable interest rate is also known as a floating interest rate.
If the underlying interest rate increases, the variable interest rate would increase. If the underlying interest rate decreases, the variable interest rate would decrease.
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Karl Corporation was organized on January 2, 2018. During 2018, Karl issued 40,000 shares at $24 per share, purchased 6,000 shares of treasury stock at $26 per share, and had net income of $600,000. What is the total amount of stockholders' equity at December 31, 2018?
Answers
Answer:
The answer is $1,404,000
Explanation:
Total amount realized from the issuance: 40,000 shares x $24
= $960,000
Treasury stock repurchased:
6,000 shares x $26
=$156,000
Net income = $600,000
The total amount of stockholders' equity at December 31, 2018 is:
Net income + amount realized from issuance - amount of treasury stock
$600,000 + $960,000 - $156,000
$1,404,000
Refer to the following selected financial information from McCormik, LLC. Compute the company's days' sales in inventory for Year 2. (Use 365 days a year.)
Year 2 Year 1
Cash $39,100 $33,850
Short-term investments 106,000 68,000
Accounts receivable, net 93,500 87,500
Merchandise inventory 129,000 133,000
Prepaid expenses 13,700 11,300
Plant assets 396,000 346,000
Accounts payable 105,400 115,800
Net sales 719,000 684,000
Cost of goods sold 398,000 383,000
a) 53.8.
b) 85.7.
c) 47.5.
d) 45.9.
e) 118.3.
Answers
Answer:
e) 118.3.
Explanation:
days' sales in inventory = (average inventory x 365 days) / cost of goods sold year 2
cost of goods sold year 2 = $398,000inventory year 2 = $129,000days' sales in inventory = ($129,000 x 365 days) / $398,000 = 118.30 days
Days' sales in inventory measures how much time it takes on average for a company to sell its inventory.
Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company has the following transactions.
1. January 1 Issue 10,000 shares of common stock in exchange for $38,000 in cash.
2. January 5 Purchase land for $22,000. A note payable is signed for the full amount.
3. January 9 Purchase storage container equipment for $8,600 cash.
4. January 12 Hire three employees for $2,600 per month.
5. January 18 Receive cash of $12,600 in rental fees for the current month.
6. January 23 Purchase office supplies for $2,600 on account.
7. January 31 Pay employees $7,800 for the first month's salaries.
Required:
1. Record each transaction. Green Wave uses the following accounts: Cash, Supplies, Land, Equipment, Common Stock, Accounts Payable, Notes Payable, Service Revenue, and Salaries Expense.
2. Post each transaction to T-accounts and compute the ending balance of each account. Since this is the first month of operations, all T-accounts have a beginning balance of zero.
3. After calculating the ending balance of each account, prepare a trial balance.
Answers
Answer:
1. January 1 Issue 10,000 shares of common stock in exchange for $38,000 in cash.
Dr Cash 38,000
Cr Common stock 38,000
2. January 5 Purchase land for $22,000. A note payable is signed for the full amount.
Dr Land 22,000
Cr Notes payable 22,000
3. January 9 Purchase storage container equipment for $8,600 cash.
Dr Equipment 8,600
Cr Cash 8,600
4. January 12 Hire three employees for $2,600 per month.
no journal entry required
5. January 18 Receive cash of $12,600 in rental fees for the current month.
Dr Cash 12,600
Cr Service revenue 12,600
6. January 23 Purchase office supplies for $2,600 on account.
Dr Supplies 2,600
Cr Accounts payable 2,600
7. January 31 Pay employees $7,800 for the first month's salaries.
Dr Salaries expense 7,800
Cr Cash 7,800
cash common stock
debit credit debit credit
38,000 38,000
8,600
12,600
7,800
34,200
land notes payable
debit credit debit credit
22,000 22,000
equipment service revenue
debit credit debit credit
8,600 12,600
supplies accounts payable
debit credit debit credit
2,600 2,600
salaries expense
debit credit
7,800
Green Wave Company
trial balance
debit credit
Cash $34,200
Supplies $2,600
Land $22,000
Equipment $8,600
Accounts payable $2,600
Notes payable $22,000
Common stock $38,000
Service revenue $12,600
Salaries expense $7,800
total $75,200 $75,200
Jounal enteries are :
1) Dr Cash 38,000
Cr Common stock 38,000
2) Dr Land 22,000
Cr Notes payable 22,000
3) Dr Equipment 8,600
Cr Cash 8,600
4) No journal entry required
5) Dr Cash 12,600
Cr Service revenue 12,600
6. Dr Supplies 2,600
Cr Accounts payable 2,600
7. Dr Salaries expense 7,800
Cr Cash 7,800
Answer 2:cash common stock
debit credit debit credit
38,000 38,000
8,600
12,600
7,800
34,200
land notes payable
debit credit debit credit
22,000 22,000
equipment service revenue
debit credit debit credit
8,600 12,600
supplies accounts payable
debit credit debit credit
2,600 2,600
salaries expense
debit credit
7,800
Answer 3: Green Wave Company Trial balanceEnteries debit credit
Cash $34,200
Supplies $2,600
Land $22,000
Equipment $8,600
Accounts payable $2,600
Notes payable $22,000
Common stock $38,000
Service revenue $12,600
Salaries expense $7,800
Total $75,200 $75,200
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