Answer:
a. in the general ledger
Explanation:
When preparing the retained earnings statement, the beginning retained earnings balance can always be found in the general ledger.
The ledger of Pina Colada Corp. on March 31, 2022, includes the following selected accounts before adjusting entries.
Debit Credit
Prepaid Insurance $2,544
Supplies 2,650
Equipment 31,800
Unearned Service Revenue $9,540
Notes Payable 21,000
Unearned Rent Revenue 9,900
Rent Revenue 61,000
Interest Expense 0
Salaries and Wages Expense 11,000
An analysis of the accounts shows the following.
1. Insurance expires at the rate of $318 per month.
2. Supplies on hand total $1,166.
3. The equipment depreciates at $530 per month.
4. During March, services were performed for two-fifths of the unearned service revenue.
Required:
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly.
Answer:
Adjusting entries
S/n Account Titles Debit Credit
1 Depreciation Expense $1590
($530*3 = $954)
Accumulated depreciation $1590
2 Unearned rent revenue $3,960
($9,900*2/5)
Rent revenue $3,960
4 Supplies Expense $1,484
($2,650 - $1,166)
Supplies $1,484
5 Insurance Expense $954
($318*3)
Insurance Prepaid $954
Indigo Corporation wants to transfer cash of $182,400 or property worth $182,400 to one of its shareholders, Linda, in a redemption transaction that will be treated as a qualifying stock redemption. If Indigo distributes property, the corporation will choose between two assets that are each worth $182,400 and are no longer needed in its business: Property A (basis of $91,200) and Property B (basis of $237,120).
a. The distribution of Property A would result in a $____________ recognized gain to Indigo.
b. The distribution of Property B would result in a $____________ disallowed loss to Indigo.
c. A sale of Property B to an unrelated party would result in a $____________ recognized loss to Indigo.
Answer and Explanation:
The computation is shown below:
a. The distribution of Property A would result in a recognized gain
= $182,400 - $91,200
= $91,200
b. The distribution of Property B would result in a disallowed loss is
= $182,400 - $237,120
= -$54,720
c. The sale of Property B to an unrelated party in a recognized loss is
= $182,400 - $237,120
= -$54,720
If a monopolist could perfectly price-discriminate: (LO1, LO4) a. The marginal revenue curve and the demand curve would coincide. b. The marginal revenue curve and the marginal cost curve would coincide. c. Every consumer would pay a different price. d. Marginal revenue would become negative at some output level. e. The resulting pattern of exchange would still be socially inefficient.
Answer:
a. The marginal revenue curve and the demand curve would coincide.
Explanation:
Monopolistic competition can be defined as the market structure which comprises of elements of competitive markets (having many competitors) and monopoly. Under monopolistic competition, organizations
If a monopolist could perfectly price-discriminate (LO1, LO4), the marginal revenue curve and the demand curve would coincide.
In 2019, Cart Inc. adopted a plan to accumulate funds for environmental remediation beginning July 1, 2024 at an estimated cost of $20 million. Cart plans to make five equal annual payments into a fund earning 6% interest compounded annually. The first deposit is scheduled for July 1, 2019. Determine the amount of the required annual deposit.
Answer: $3,527,337
Explanation:
Future value (FV) = $20 million
Interest rate (i) = 6% = 6/100 = 0.06
Time period (n) = 5 years
Then, the amount of the required annual deposit is calculated below:
Future value of the annuity (FV) = A × [(1+i)^n -1] × (1/i)
We then slot in the values and this will be:
20 million = A (1+6%)^5 - 1] × (1/6%)
20 million = A [(1+0.06)^5 - 1] × (1/0.06)
20 million = A [(1.06)^5 - 1] × (1/0.06)
20 million = A [1.34 - 1] × (1/0.06)
20 million = A [0.34] × (1/0.06)
20 million = A [0.34/0.06)
20 million = A × 5.67
A = 20 million / 5.67
A = 3527337.3
Therefore, required annual deposit = $3,527,337
The amount that is required to be paid as annual deposit is $3,344,481 as the first deposit is scheduled to be made on July 1, 2019.
What is the Future Value of annuity?Future annuity value is the group of repeated payments for a specific future date, deducted a certain refund rate, or a discount rate. The higher the discount rate, the greater the annuity amount.
The formula for calculation for future annuity value:
[tex]FV(due) = A[\dfrac{(1+r)^{n} - 1} {r}](1 + r)[/tex]
We can use the future value of annuity formula to calculate the amount of the required annual deposit:
[tex]\rm\,Future\,value= \$ 20,000,000\\\\Interest\,rate\,(i) = 6\% = 0.06\\\\Time\,period = n = 5\,years\\\\FV(due) = A[\dfrac{(1+r)^{n}- 1} {r}](1 + r)\\\\= 20,000,000 = A[\dfrac{(1+0.06)^{5} - 1 } {0.06}](1 + 0.06)\\\\= 20,000,000 = A\times 5.98\\\\=\$\,3,344,481[/tex]
Hence, the amount of the annual deposit is equal to $3,344,481.
To learn more about Future value of annuity, refer to the link:
https://brainly.com/question/5303391
a crawling peg is a system where the exchange rate is constantly devalued true or false
Answer:
False
Explanation:
A crawling peg is a system of exchange rate adjustments in which a currency with a fixed exchange rate is allowed to fluctuate within a band of rates.
Where there is asymmetric information between buyers and sellers, Multiple Choice product shortages will occur at the equilibrium price. product surpluses will occur at the equilibrium price. markets can produce inefficient outcomes. markets will fail due to the over-allocation of resources.
Answer:
markets can produce inefficient outcomes.
Explanation:
Asymmetric information is when one party to a transaction has more information than the other party. It could be the buyer or seller that has more information
For example, if a person wants to purchase health insurance, he might not disclose the full information about his health status to the insurer. This might lead to underestimation of costs.
Also, a seller might not reveal to the buyer than the item about to be purchased is faulty.
Asymmetric information leads to inefficient outcome inn the market
HELLPPPPPPPPPPP PLEAEE!!!!!!!!!
Answer:
C. They ensure job candidates have been recruited from a wide variety of minority channels.
Explanation:
Equal employment opportunity (EEO) refers basically to recruiting job applicants that come from all the different possible backgrounds. The whole idea is that a potential job applicant will not be discriminated because he/she is part of a protected minority group.
In other words, every candidate should be evaluated based on their skills and not on who they are.
Brief Exercise 17-09 Hinck Corporation reported net cash provided by operating activities of $361,200, net cash used by investing activities of $148,900 (including cash spent for capital assets of $203,600), and net cash provided by financing activities of $79,700. Dividends of $128,000 were paid. Calculate free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Free cash flow $
Answer:
Hiiiii
Explanation:
Hi
The City of San Antonio is considering various options for providing water in its 50-year plan, including desalting. One brackish aquifer is expected to yield desalted water that will generate revenue of $4.1 million per year for the first 5 years, after which less production will decrease revenue by 10% per year each year. If the aquifer will be totally depleted in 21 years, what is the present worth of the desalting option revenue at an interest rate of 8% per year
Answer:
The present worth of the desalting option revenue is 29,567,434.81 or $29.6 million.
Explanation:
Note: Calculation of the present worth of the desalting option revenue.
In the attached excel file, the revenue from year 6 to 21 is calculated using the following formula:
Revenue in the current year = Revenue in the previous year * (100% - Decreasing rate) ................... (1)
Where;
Decreasing rate = 10%
From the attached excel file, the present worth (in bold red color) of the desalting option revenue is 29,567,434.81 or $29.6 million.
Boehm Incorporated is expected to pay a $1.10 per share dividend at the end of this year (i.e., D1 = $1.10). The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 15%. What is the estimated value per share of Boehm's stock? Do not round intermediate calculations. Round your answer to the nearest cent. $
Answer:
$10
Explanation:
The dividend is $1.10
The constant rate is 4%
The required rate of return in the stock is 15%
Therefore the estimated value per share can be calculated as follows
= 1.10(0.15-0.04)
= 1.10/(0.11)
= $10
Hence the estimated valuee is $10
At the end of the current year, Accounts Receivable has a balance of $950,000; Allowance for Doubtful Accounts has a credit balance of $8,500; and sales for the year total $4,280,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $40,000. a. Determine the amount of the adjusting entry for uncollectible accounts. $fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts $fill in the blank 3 Bad Debt Expense $fill in the blank 4 c. Determine the net realizable value of accounts receivable. $fill in the blank 5
Answer:
a. Adjusting entry for Uncollectible accounts = Allowance for Doubtful Accounts - Credit balance on Allowance for doubtful accounts
= 40,000 - 8,500
= $31,500
b. Accounts Receivable = $950,000
Allowance for Doubtful Accounts = $40,000
Bad Debt Expense = This is the adjusting entry for Uncollectible accounts = $31,500
c. Net realizable value of accounts receivable = Accounts receivables - Bad debt
= 950,000 - 31,500
= $918,500
Statement of Owner's Equity
Ava Marie Rowland owns and operates Road Runner Delivery Services. On January 1, 20Y3, Ava Marie Rowland, Capital had a balance of $781,000. During the year, Ava Marie made no additional investments and withdrew $19,000. For the year ended December 31, 20Y3, Road Runner Delivery Services reported a net loss of $34,500.
Prepare a statement of owner's equity for the year ended December 31, 20Y3.
Road Runner Delivery Services
Statement of Owner's Equity
For the Year Ended December 31, 20Y3
$
$
$
2) Closing Entries
After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Twin Trees Landscaping Co.:
Oscar Killingsworth, Capital $503,900
Oscar Killingsworth, Drawing 8,200
Fees Earned 279,100
Wages Expense 221,600
Rent Expense 43,800
Supplies Expense 9,000
Miscellaneous Expense 10,200
Journalize the two entries required to close the accounts.
If an amount box does not require an entry, leave it blank.
Apr. 30
Apr. 30
3) Balance Sheet
MaxFit Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 20Y4, the end of the fiscal year, the balances of selected accounts from the ledger of MaxFit Weight Loss Co. are as follows:
Accounts Payable $ 44,800
Accounts Receivable 138,600
Accumulated Depreciation 221,300
Cash ?
Equipment 563,000
Land 356,200
Prepaid Insurance 8,500
Prepaid Rent 24,900
Salaries Payable 10,700
Supplies 5,700
Unearned Fees 21,400
Vanessa Freeman, Capital 843,400
Prepare a classified balance sheet that includes the correct balance for Cash.
Maxfit Weight Loss Co.
Balance Sheet
November 30, 20Y4
Assets
Current assets:
$
Total current assets $
Property, plant, and equipment:
$
$
Total property, plant, and equipment
Total assets $
Liabilities
Current liabilities:
$
Total liabilities $
Owner's Equity
Total liabilities and owner's equity $
Answer:
Net equity is $727,500.
Explanation:
Statement of Owner's Equity:
Share Capital $781,000
Withdrawals $19,000
Net Loss $34,500
Net equity $727,500
Use the compounding or discounting formula to answer the questions. Round answers to the nearest dollar. a. Your small business has a cash reserve of $200,000, earning 2% annual interest. How much will your cash reserve be worth in 3 years? $ b. You want $1 million in your retirement account in 50 years. If your account grows at an annual rate of 4%, how much do you have to deposit today to reach $1 million in 50 years?
Answer:
a.
Future value - Cash Reserve = $212241.6
b.
Present value of deposit = $140712.615333 rounded off to $140712.62
Explanation:
a.
To calculate the value of cash reserve in 3 years, we will calculate the future value of the cash flow using the following formula,
Future value = Present value * (1 + r)^t
Where,
r is the rate of interest or returnt is the number of periodsFuture value - Cash Reserve = 200000 * (1+2%)^3
Future value - Cash Reserve = $212241.6
b.
To calculate the amount of deposit today, we need to calculate the present value of $1 million which are after 50 years from today. The formula to calculate the present value is as follows,
Present Value = Future value / (1 + r)^t
Where,
r is the interest rate or rate of return or discount ratet is the number of periodsPresent value = 1000000 / (1+4%)^50
Present value = $140712.615333 rounded off to $140712.62
A company purchased a new delivery van at a cost of $58,000 on January 1. The delivery van is estimated to have a useful life of 4 years and a salvage value of $4,600. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31
Answer:
Annual depreciation= $13,350
Explanation:
Giving the following information:
Purchase price= $58,000
Useful life= 4 years
Salvage value= $4,600
To calculate the annual depreciation using the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (58,000 - 4,600) / 4
Annual depreciation= $13,350
Suppose at December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley Inc.: ending inventory $170,000; beginning inventory $125,000; cost of goods sold $351,050 and sales revenue $761,000.
a. Calculate the inventory turnover for Oakley, Inc.
b. Calculate the days in inventory for Oakley, Inc.
Answer and Explanation:
The computation is shown below:
a. The inventory turnover is
= Cost of Goods Sold ÷ Average Inventory
= $351,050 ÷ ($170,000 + $125,000) ÷ 2
= $351,050 ÷ $147,500
= 2.38 times
b. Now days in inventory is
= 365 ÷ inventory turnover ratio
= 365 ÷ 2.38 times
= 153.36 days
The Green Grape Company's Office Supplies account had a beginning balance of $12,000. During the month, purchases of office supplies totaling $8,000 were added to (increased) the Office Supplies account. If $5,000 worth of office supplies is still on hand at month-end, what is the proper adjustment?
Answer:
Dr Office supplies expense $15,000
Cr Office supplies $15,000
Explanation:
Given the above information, we can compute the proper adjusting entry as;
= ( Transfer $12,000 + $8,000 - $5,000)
= $15,000 from office supplies expense
Therefore, the proper adjusting entry is;
Dr Office supplies expense $15,000
Cr Office supply $15,000
North Bank has been borrowing in the U.S. markets and lending abroad, thereby incurring foreign exchange risk. In a recent transaction, it issued a one-year $1.40 million CD at 5 percent and is planning to fund a loan in British pounds at 9 percent for a 4 percent expected spread. The spot rate of U.S. dollars for British pounds is $1.454/£1. a. However, new information now indicates that the British pound will appreciate such that the spot rate of U.S. dollars for British pounds is $1.43/£1 by year-end. Calculate the loan rate to maintain the 4 percent spread. b. The bank has an opportunity to hedge using one-year forward contracts at 1.46 U.S. dollars for British pounds. Calculate the net interest margin if the bank hedges its forward foreign exchange exposure. c. Calculate the loan rate to maintain the 4 percent spread if the bank intends to hedge its exposure using the forward rates.
Answer:
A) 10.82%
B) 5.27%
C) 8.56%
Explanation:
Given data :
North Bank Borrow ; $1.4 million at 5 percent
Lend in pounds at 9%
spread = ( 4% )
spot rate = 1.454
A) Determine the loan rate to maintain the 4 percent spread
Expected spot rate = 1.43
First step :
Lending amount = $1.4 million / initial spot rate = 1.4 / 1.454 = £ 0.9628 million
next :
calculate the final amount Required in $ to maintain 4% Spread
= principal ( $1.4 million ) + interest ( 9% of 1.4 ) = 1.4 + 0.126 = $1.526 million
In pound ( at the expected spot rate )
= 1.526 / 1.43 = £1.067 million
expected profit = £1.067 - £0.9628 = £ 0.1042 million
Therefore the interest rate tp maintain the 4 percent spread
= 0.1042 / 0.9628 = 10.82%
B) Determine the net interest margin if the bank hedges its forward foreign exchange exposure
Forward rate = 1.46
assuming interest as value calculated above = ( 10.82% )
lending amount = £0.9628 million
Repayment = 0.9628 * 111% * 1.46 = $1.5603 million
therefore return rate = $1.5603 - $1.4 = $0.1603 million = 10.27%
hence : Net interest margin = 10.27% - 5% = 5.27%
C) Determine the loan rate to maintain the 4 percent spread if the bank intends to hedge its exposure using the forward rates.
Forward Hedging contract forward rate = 1.46
lending amount = $1.4 / 1.454 = £ 0.9628 million
Total Interest and Principal Repayment Required in $ to maintain 4% Spread = $1.526 million
In pound = 1.526 / 1.46 = £ 1.0452
Interest = £1.0452 - £0.9628 = £0.0824 million
therefore interest Rate to maintain 4℅ Spread
= ( 0.0824 / 0.9628 ) * 100 = 8.56%
Janelle is into running. As soon as she gets home from work at the hospital, she changes into her running clothes, puts on her high-quality running shoes, and goes outside to run. When her schedule permits it, Janelle participates in 5K runs to raise money for children's charities. She has met many friends who are also involved in running. The running groups that Janelle is involved with are examples of _______. a. income segmentation b. benefit segmentation c. geodemographic segmentation d. lifestyle segmentation
Answer:
d. lifestyle segmentation
Explanation:
Segmentation is the way in which various criteria is used to seperate the target market of a set of products.
In the given instance Janelle is involved in a lifestyle segment that is categorised on the basis of similar lifestyle.
She likes to run. This is a type of lifestyle, so the groups that she is involved with that also like running are an example of a lifestyle segmentation
this is my Halloween costume
Answer:
Crankyyyy um. lolipop
Explanation:
u Look
Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 30 minutes of machine time.
Assume that a maximum of 40,000 units of each sweatshirt can be sold.
Required:
a. What is the contribution margin per hour of machine time for the Swoop sweatshirts?
b. What is the contribution margin per hour of machine time for the Rufus sweatshirts?
c. What is the optimal mix of sweatshirts?
d. What is the total contribution margin earned for the optimal mix?
Answer:
Comfy Fit Company
a. The contribution margin per hour of machine time for the Swoop is:
= $50.
b. The contribution margin per hour of machine time for the Rufus sweatshirts is:
= $30.
c. The optimal mix of sweatshirts that maximizes profitability is 40,000 Swoop sweatshirts and 6,000 Rufus sweatshirts.
d. The total contribution margin earned for the optimal mix is:
= $2,180,000.
Explanation:
a) Data and Calculations:
Machine hours available = 7,000 hours (1,000 * 7)
Swoop Rufus
Contribution margins $5 $15
Time required per unit 6 min 30 min
Time required per unit in hours 0.10 hr 0.5 hrs
Contribution per hour $50 $30
Optimal product mix is to produce all of Swoop's 40,000 units first and then to use the remaining machine hours (3,000) to produce Rufus sweatshirts.
This will take 4,000 hours (40,000 * 0.10)
This leaves 3,000 hours for Rufus (7,000 - 4,000)
This means that only 6,000 (3,000/0.5) of Rufus can be produced
The total contribution margin for the optimal mix:
= ($50 * 40,000) + ($30 * 6,000)
= $2,000,000 + 180,000
= $2,180,000
Gillie, Norma and Nancy are all partners in an architectural firm. They have no partnership agreement. Gillie contributed $120,000 to the firm and Norma and Nancy contributed $60,000 each. Norma works full-time in the partnership and Gillie and Nancy each work part-time. The partnership makes $120,000 in profits. How will the profits be divided among the partners
Answer:
Gillie: $40,000
Norma $40,000
Nancy: $40,000
Explanation:
Calculation for How will the profits be divided among the partners
Based on the information given the profit will be divided equally among the three of them.
Gillie profit=$120,000/3
Gillie profit=$40,000
Norma profit =$120,000/3
Norma profit =$40,000
Nancy profit=$120,000/3
Nancy profit=$40,000
Therefore How will the profits be divided among the partners is :Gillie: $40,000
Norma $40,000
Nancy: $40,000
how does unsafe food harm us
Answer:
Unsafe food creates a vicious cycle of disease and malnutrition, particularly affecting infants, young children, elderly and the sick. Foodborne diseases impede socioeconomic development by straining health care systems, and harming national economies, tourism and trade.
On January 1, 2021, Instaform, Inc., issued 10% bonds with a face amount of $50 million, dated January 1. The bonds mature in 2040 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1-a. Determine the price of the bonds at January 1, 2021. 1-b. Prepare the journal entry to record their issuance by Instaform. 2-a. Assume the market rate was 9%. Determine the price of the bonds at January 1, 2021. 2-b. Assume the market rate was 9%. Prepare the journal entry to record their issuance by Instaform. 3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record the purchase by Broadcourt.
Answer:
1-a. Determine the price of the bonds at January 1, 2021.
PV of face value = $50 / (1 + 6%)⁴⁰ = $4,861,109
PV of coupon payments = $2.5 x 15.046 (PVIFA, 6%, 40 periods) = $37,615,000
market price = $42,476,109
1-b. Prepare the journal entry to record their issuance by Instaform.
Dr Cash 42,476,109
Dr Discount on bonds payable 7,523,891
Cr Bonds payable 50,000,000
2-a. Assume the market rate was 9%. Determine the price of the bonds at January 1, 2021.
PV of face value = $50 / (1 + 4.5%)⁴⁰ = $8,596,435
PV of coupon payments = $2.5 x 18.40158 (PVIFA, 4.5%, 40 periods) = $46,003,961
market price = $54,600,396
2-b. Assume the market rate was 9%. Prepare the journal entry to record their issuance by Instaform.
Dr Cash 54,600,396
Cr Bonds payable 50,000,000
Cr Premium on bonds payable 4,600,396
3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record the purchase by Broadcourt.
Dr Bonds receivable 50,000,000
Dr Discount on bonds receivable 4,600,396
Cr Cash 54,600,396
a. In the absence of money, trade would require money illusion. a double coincidence of wants. a store of value. a unit of account. b. In what ways does money make trade easier? Money eliminates the possibility of recessions caused by demand shortfalls. Money provides a measuring stick with which to express relative values of goods and services, simplifying comparisons. Money enables you to specialize in tasks you're good at, knowing you can earn the money needed to buy the products of other individuals, skilled in different tasks. Money eliminates the need to find trading partners who happen to possess what you want and want what you possess.
Answer:
a double coincidence of wants
Money provides a measuring stick with which to express relative values of goods and services, simplifying comparisons.
Money eliminates the need to find trading partners who happen to possess what you want and want what you possess.
Money enables you to specialize in tasks you're good at, knowing you can earn the money needed to buy the products of other individuals, skilled in different tasks
Explanation:
Functions of money
1. Medium of exchange : money can be used to exchange for goods and services. For example, money serves as a medium of exchange when you pay $20 for your favourite jeans.
Without money, you would have to find someone that has jeans and wants to sell it and also wants what you have. This is known as double coincidence of wants
2. Unit of account : money can be used to value goods and services, For example, $20 is the value of your favourite jeans
3. Store of value : money can retain its value over the long term, this it can be used as a store of value
The following information relates to Bonita Co. for the year ended December 31, 2017: net income 1,298 million; unrealized holding loss of $11.3 million related to available-for-sale debt securities during the year; accumulated other comprehensive income of $51.9 million on December 31, 2016. Assuming no other changes in accumulated other comprehensive income.
Determine (a) other comprehensive income for 2017, (b) comprehensive income for 2017, and (c) accumulated other comprehensive income at December 31, 2017. (Enter answers in millions to 1 decimal place, e.g. 25.5. Enter loss using either a negative sign preceding the number e.g. -45.2 or parentheses e.g. (45.2).)
(a) Other comprehensive income(loss) for 2017 $ million
(b) Comprehensive income for 2017 $ million
(c) Accumulated other comprehensive income $ million
Answer:
a. The company incurred a loss of $11.3 million as an unrealized income from available-for-sale debt securities. It is the actual loss. Therefore, other comprehensive income is -($11.3) million.
b. Comprehensive income = Net income - Unrealized holding loss
Comprehensive income = $1,298 million - $11.3 million
Comprehensive income = $1,286.7 million
c. Accumulated comprehensive income = Existing income - Unrealized holding loss
Accumulated comprehensive income = $51.9 million - $11.3 million
Accumulated comprehensive income = $40.6 million
There are two closing entries. The first one is to close ____ and ____ to ______; second, close ____ to ____. a. expenses, assets, retained earnings, capital stock, dividends b. revenues, expenses, retained earnings; dividends, retained earnings c. dividends, retained earnings, expenses; revenues, retained earnings d. retained earnings, dividends, revenue; assets, liabilities
Answer: B. revenues, expenses, retained earnings; dividends, retained earnings
Explanation:
Closing entries simply refers to the journal entries that are made by an economic entity at the end of a particular accounting period which is then moved from the temporary accounts with regards to the income statement to the permanent accounts which are on the balance sheet.
There are two closing entries which includes closing revenues, and expenses, to retained earnings and secondly, close the dividends, to the retained earnings .
Priority Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 9,000 Actual variable overhead incurred: $54,400 Actual machine hours worked: 16,000 Standard variable overhead cost per machine hour: $3.50 If Priority estimates two hours to manufacture a completed unit, the company's variable-overhead efficiency variance is: Multiple Choice None of the answers is correct. $1,600 unfavorable. $7,000 favorable. $7,000 unfavorable. $1,600 favorable.
Answer:
Variable overhead efficiency variance= $7,000 favorable
Explanation:
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Standard quantity= 9,000*2= 18,000 hours
Actual quantity= 16,000 hours
Standard rate= $3.5 per hour
Variable overhead efficiency variance= (18,000 - 16,000)*3.5
Variable overhead efficiency variance= $7,000 favorable
Suppose you win on a scratch‑off lottery ticket and you decide to put all of your $2,500 winnings in the bank. The reserve requirement is 5% . What is the maximum possible increase in the money supply as a result of your bank deposit?
Answer: $50,000
Explanation:
Reserve Requirement = 5% = 0.05
Change in reserves = $2500
The change in deposits is denoted as
= (1/rr) × change in reserves
where,
rr = reserve requirements
Change in deposits will now be:
= (1/rr) × change in reserves
= 1/0.05 × 2500
= 20 × 2500
= $50,000
Therefore, the maximum possible increase in the money supply as a result of your bank deposit will be $50,000.
In 2019 a 90% owned subsidiary had $60,000 of unrealized gains on intercompany sales to its parent. In 2020 the subsidiary sold $200,000 of goods to its parent and had $30,000 of unrealized gains. In 2020 parent reports Cost of Goods Sold of $4,000,000 and sub reports Cost of Goods Sold of $1,000,000. How much is Consolidated Cost of Goods Sold
Answer:
Consolidated Cost of Goods Sold is $4,970,000.
Explanation:
A 90% owned subsidiary presents a controlling interest and consolidated financial statements must be prepared by the Parent company.
In preparing consolidated financial statements, any transactions between the parent and subsidiary (Intragroup transactions) must be eliminated.
At Beginning of the year
Recognize the unrealized gains on intercompany sales as follows ;
Debit : Retained Earnings $60,000
Credit : Cost of Sales $60,000
During the year 2020
Eliminate unrealized gains on intercompany sales as follows
Debit : Cost of Sales $30,000
Credit : Inventory $30,000
Consolidated Cost of Goods Sold
To determine the Cost of Goods Sold add 100 % of Parent and 100% of Subsidiary and also remember to effect the journals above as follows :
Cost of Goods Sold = $4,000,000 + $1,000,000 - $60,000 + $30,000
= $4,970,000
Conclusion
Therefore, Consolidated Cost of Goods Sold is $4,970,000.
Marquis Company estimates that annual manufacturing overhead costs will be $900,000. Estimated annual operating activity bases are direct labor cost $500,000, direct labor hours 50,000, and machine hours 100,000.Compute the predetermined overhead rate for each activity base. (Round answers to 2 decimal places, e.g. 10.50% or 10.50.)Overhead rate per direct labor cost _____ %Overhead rate per direct labor hour $ _____Overhead rate per machine hours $ _____
Answer:
$18.00
Explanation:
Overhead rate = Estimated Overheads ÷ Estimated Activity
= $900,000 ÷ 50,000
= $18.00
Therefore,
Overhead rate per direct labor hour is $18.00