Answer:
Explanation:
The correct answer to your questions is letter A. Assets will be decreased.
Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $47,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2017. On that date, the following financial items for the year were determined: cash on hand and in the bank, $42,500; amounts due from customers from sales of books, $27,700; equipment, $46,000; amounts owed to publishers for books purchased, $8,200; one-year notes payable to a local bank for $4,050. No dividends were declared or paid to the stockholders during the year. Assuming that Reader Direct generates net income of $7,000 and pays dividends of $2,800 in 2018, what would be the ending Retained Earnings balance at December 31, 2018?
Answer:
Reader Direct Corporation
The ending Retained Earnings balance at December 31, 2018 is:
$14,150
Explanation:
a) Data and Calculations:
Cash on hand and in the bank, $42,500;
Amounts due from customers from sales of books, $27,700;
Equipment, $46,000;
Amounts owed to publishers for books purchased, $8,200;
One-year notes payable to a local bank for $4,050
Common Stock ($47,000 * 2) = $94,000
Assets:
Cash $42,500
Accounts Receivable 27,700
Equipment 46,000
Total assets $116,200
Liabilities + Equity:
Accounts Payable $8,200
Notes Payable 4,050
Total liabilities $12,250
Equity:
Common Stock $94,000
Retained Earnings 9,950
Total equity $103,950
Liabilities + equity $116,200
Retained Earnings:
Dec. 31, 2017 $9,950
Net income 7,000
less Dividends (2,800)
Dec. 31, 2017 $14,150
Financial Statements of a Manufacturing Firm The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: Purchased $250,000 of materials. Used $180,000 of direct materials in production. Incurred $450,000 of direct labor wages. Incurred $180,000 of factory overhead. Transferred $760,000 of work in process to finished goods. Sold goods for $1,200,000. Sold goods with a cost of $675,000. Incurred $215,000 of selling expense. Incurred $125,000 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. Sorensen Manufacturing Company Income Statement For the Month Ended January 31 Revenues $fill in the blank f6cd0703e073f92_2 Cost of goods sold fill in the blank f6cd0703e073f92_4 Gross profit $fill in the blank f6cd0703e073f92_6 Operating expenses: Selling expenses $fill in the blank f6cd0703e073f92_8 Administrative expenses fill in the blank f6cd0703e073f92_10 Total operating expenses fill in the blank f6cd0703e073f92_11 Net income $fill in the blank f6cd0703e073f92_13
Answer:
Missing word "b. Determine the inventory balances at the end of the first month of operations."
a) Income statement
Sales $1,200,000
Cost of goods sold $675,000
Gross profit $525,000
Selling and administrative expense
Selling expense $215,000
Administrative expense $125,000
Total Selling and administrative expense $340,000
Operating income $185,000
b) Inventory balance
Raw material inventory ($250,000 - $180,000) = $70,000
Work in process ($180,000+$450,000+$180,000-$760,000) = $50,000
Finished goods ($760,000-$675,000) = $85,000
Raymond Moss, vice president of Moss Auto Parts, gets an annual bonus of 15% of any income, before deducting bonus and income taxes, above $100,000. Income before bonus and income taxes is $250,000. The effective income tax rate is 30%. Required: 1. Compute the amount of Raymond Moss's bonus. Bonus
Answer:
$22,500
Explanation:
Raymond Moss's bonus is computed as the excess of $100,000 of income before bonus and income taxes.
In other words, the income before bonus and income taxes of $250,000 minus $100,000 is the amount upon which the bonus is computed.
Bonus=excess of income before bonus and income taxes*rate of bonus
income before bonus and income taxes.=$250,000-$100,000
income before bonus and income taxes.=$150,000
bonus rate=15%
Bonus=$150,000*15%
Bonus=$22,500
The following units of an inventory item were available for sale during the year. Use this information to answer the following questions.
Beginning inventory 10 units at $55
First purchase 25 units at $60
Second purchase 30 units at $65
Third purchase 15 units at $70
The firm uses the periodic inventory system. During the year, 60 units of the item were sold.
The value of ending inventory using FIFO is:________
a. $1,350
b. $1,150
c. $1,375
d. $1,250
Answer:
The value of ending inventory using FIFO is $1,375
Explanation:
Under FIFO the items of inventory purchases earlier will be sold first and the items purchased later will be sold at last.
First, we need to calculate the total available inventory units
Numbers of units available to sale = Beginning Inventory + First purchase + Second purchase + Third purchase = 10 units + 25 units + 30 units + 15 units = 80 units
Now 60 units out of 80 are sold the remaining 20 units ( 80 units - 60 units ) will be in the ending inventory.
As per FIFO 20 units will be values as per the last 20 units purchases which will be as follow
Ending Invetory = ( 15 units x $70 ) + ( (20-15) units x $65 ) = $1,375
The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $10.50 per hour. When activity jumped to 24,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $9.75. On the basis of this information, the company's fixed maintenance costs were:
Answer:
Total fixed cost element = $90000
Explanation:
To calculate the fixed maintenance cost, first we will use the high-low method to calculate the element of average variable maintenance cost per machine hour in the average total maintenance cost.
The value of highest activity = 24000 * 9.75 = $234000
The value of lowest activity = 20000 * 10.5 = $210000
Average VC per MH = (234000 - 210000) / (24000 - 20000)
Average VC per MH = $6 per machine hour
Total Average variable cost (24000 MH) = 6 * 24000 = $144000
Total fixed cost element = 234000 - 144000 = $90000
Swifty Corporation issued 100000 shares of $10 par common stock for $1250000. A year later Swifty acquired 15900 shares of its own common stock at $15 per share. Three months later Swifty sold 8500 of these shares at $19 per share. If the cost method is used to record treasury stock transactions, to record the sale of the 8500 treasury shares, Swifty should credit
Answer:
the journal entries should be:
Dr Cash 1,250,000
Cr Common stock 1,000,000
Cr Additional paid in capital 250,000
Dr Treasury stock 238,500
Cr Cash 238,500
Dr Cash 161,500
Cr Common stock 85,000
Cr Additional paid in capital 76,500
Your family is expanding in number, and so you decide to sell your current home and upgrade to a larger home. You estimate that you can sell your current home for $100,000 and can buy a larger home for $475,000. You plan to use the entire $100,000 sale proceeds as a down payment on the new home and will finance the remainder for 15 years at 4% nominal annual interest compounded monthly. What is your estimated monthly mortgage payment
Answer:
The Estimated Monthly Mortgage Payment
= $2,810.81
Explanation:
Data and Calculations:
House price = $475,000
Down payment = $100,000
Percentage of down payment = 21.05% ($100,000/$475,000 * 100)
Finance period = 15 years = 180 months (15 * 12)
Nominal annual interest compounded monthly = 4%
The estimated monthly mortgage payment using an online finance calculator:
Monthly Pay: $2,810.81
House Price $475,000.00
Loan Amount $380,000.00
Down Payment $95,000.00
Total of 180 Mortgage Payments $505,946.54
Total Interest $125,946.54
Mortgage Payoff Date Jan. 2036
Lois tells Stew he can buy her pool house for $100,000. Stew is so excited to own a home of his own that he leaves a $10,000 check in her mailbox as a starting payment on the pool house. Then, he begins remodeling the pool house, spending $3,000 in repairs and improvements. Lois decides she made a big mistake and attempts to cancel this agreement. The most likely outcome will be:
Answer:
The most likely outcome would be that Lois will still have to sell Stew the house
Explanation:
The most likely outcome would be that Lois will still have to sell Stew the house. This is mainly because Lois accepted Stew's offer of $100,000 and Stew already fulfilled part of the agreement. By simply paying the $10,000 that he left Stew he has already fulfilled part of his side of the agreement which solidifies the agreement and makes it legally binding. Therefore, he would most likely win a court case if Lois decides to back out of the agreement.
You are reviewing your client's bank feed. She has several expense transactions for the local gas station that are correctly categorized. Go to the For Review tab in the Banking Center Select the multiple gas transactions.
Answer: Select Add
Explanation:
Here's the complete question:
You are reviewing your client's bank feed. She has several expense transactions for the local gas station that are correctly categorized.Go to the For Review tab in the Banking CenterSelect the multiple gas transactions_____________________________What step completes the process for adding all of these transactions to the bankfeed at the same time?
a. Select Add
b. Select Accept
c. Select Exclude
d. Select Update
This is an easy question to solve. Since we are just adding all of these transactions to the bankfeed at the same time, the thing to do is to "select add"
Analysis of a company's financial statements: Below are simplified versions of the balance sheet and income statement for Toys by Tom, Inc. Use this information to answer the following question. A 15% increase in inventory turns for Toys by Tom, Inc. would bring this ratio to ____, suggesting ________ in ________.
Answer: 3.9 times; an improvement; efficiency
Explanation:
Inventory turns is calculated by the formula:
= COGS / Inventory
= 8.4 / 2.50
= 3.36
Increased by 15%:
= 3.36 * (1 + 15%)
= 3.864
= 3.9 times
Inventory turns is used to show how often the inventory was sold in a period. A higher ratio therefore presents increased efficiency and is desired.
Listed below are three items. Required: Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These: Revenue Expense Other Changes to Stockholders' Equity None of These Deferred Revenue Supplies Expense Issuance of Stock
Answer:
Classification of items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:
1. Deferred Revenue = Revenue
2. Supplies Expense = Expense
3. Issuance of Stock = Changes to Stockholders' Equity
Explanation:
Revenue represents the gross income that an entity receives from the sale of goods and services to customers. Revenue is therefore classified as either Sales Revenue or Service Revenue. It is an important item in the computation of the net income of the entity at the end of a financial period.
Expense represents the gross costs incurred by an entity for the sale of goods and services to its customers. It is usually deducted from the Revenue to obtain the net income.
Changes to Stockholders' Equity occur from revenues and expenses. They also occur from other business transactions like the issuance of stock to stockholders.
Reese Inc., a provider of consulting services, was founded on October 1, 2022. At the end of the first month of operations, the company decided to prepare an income statement, retained earnings statement, and balance sheet using the following information. Prepare an income statement, retained earnings statement, and balance sheet. Accounts payable $ 3,300 Supplies $ 2,460 Interest expense 410 Supplies expense 380 Equipment (net) 48,200 Depreciation expense 270 Salaries and wages expense 2,500 Service revenue 20,920 Bonds payable 21,500 Salaries and wages payable 445 Unearned service revenue 4,065 Common stock 9,100 Accounts receivable 1,300 Interest payable 140 Cash 3,950 Instructions Using the information, prepare an income statement and retained earnings statement for the month of October 2022 and a balance sheet as of October 31, 2022. End. retained earnings $17,360
Answer and Explanation:
The preparation of the income statement, retained earnings, and the balance sheet is presented below:
Income statement
Service revenue $20,920
Less: expenses
Salaries & wages expense -$2,500
Interest expense -$410
Depreciation expense -$270
Supplies expense -$380
Total expense -$3,560
Net income $17,360
Retained earnings
Opening retained earnings balance $0
Add: net income $17,360
Ending retained earnings balance $17,360
Balance sheet
Assets
cash $3,950
Accounts receivable $1,300
Supplies $2,460
Equipment ,net $48,200
total assets $55,910
Liabilities and Stockholders Equity
liabilities:
Accounts payable $3,300
unearned service revenue $4,065
Salaries and wages payable $445
interest payable $140
Bonds payable $21,500
total liabilities $29,450
Stockholders equity:
Common stock $9,100
Retained earnings $17,360
total stockholders equity $26,460
total liabilities & stockholders equity $55,910
At Medallion Industries, variable cost per unit is budgeted to be $8.00 and fixed cost per unit is budgeted to be $5.00 in a period when 4,000 units are produced. What is the expected total cost of the units produced at Medallion, if instead, production is actually 5,100 units
Answer:
Total cost= $60,800
Explanation:
Giving the following information:
For 4,000 units:
Unitary variable cost= $8
Unitary fixed cost= $5
First, we need to calculate the total fixed cost:
Total fixed cost= 5*4,000= $20,000
Now, we can determine the total cost for 5,100 units:
Total cost= 5,100*8 + 20,000
Total cost= $60,800
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 81,000 Direct labor $ 41,000 Variable manufacturing overhead $ 19,800 Fixed manufacturing overhead 31,600 Total manufacturing overhead $ 51,400 Variable selling expense $ 14,400 Fixed selling expense 22,800 Total selling expense $ 37,200 Variable administrative expense $ 5,200 Fixed administrative expense 27,400 Total administrative expense $ 32,600 Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost
Answer:
the total product cost is $153,600
Explanation:
The computation of the total product cost is as follows;
= Direct material cost + direct labor cost + total manufacturing overhead cost
= $81,000 + $41,000 + $31,600
= $153,600
Hence, the total product cost is $153,600
The other values would be ignored for determining the product cost
A stress test in finical marketing means:_____.
A. Aims to test the behavior of historical returns and their fluctuations during all sorts of potential financial crises.
B. Does not look at historical returns, and looks at all the details of the portfolios and their vulnerabilities during all sorts of potential financial crises.
C. Tries to incorporate all potential economic and financial crises, such as recessions, appreciation and depreciation of currency, liquidity crisis, etc.
D. Tries to incorporate all the interconnections between financial institutions.
Answer:
C.
Explanation:
Stress tests are carried out to determine how financial systems would react in periods of extreme stress eg. financial or economic crisis.
Stress situations are simulated and the reaction of the financial system to the stress is measured. Based on the reactions of the financial system, steps are taken to further improve or strengthen the financial system.
The scenarios used in a stress test can be based on historical events (events that have already occurred) or hypothetical events.
The management of Krach Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 13,000 machine-hours. Capacity is 19,000 machine-hours and the actual level of activity for the year is assumed to be 9500 machine-hours. All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $22,800 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year. If the company bases its predetermined overhead rate on capacity, what would be the cost of unused capacity reported on the income statement prepared for internal management purposes
Answer:
the cost of the unused capacity reported is $11,400
Explanation:
The computation of the cost of the unused capacity reported is as follows:
= (Estimated amount of overhead ÷ capacity machine hours) × (capacity machine hours - actual machine hours)
= ($22,800 ÷ 19,000 machine hours) × (19,000 - 9,500)
= $1.2 × (9,500)
= $11,400
hence, the cost of the unused capacity reported is $11,400
The Blueberry Designs ads show a lifestyle that is sophisticated and timeless. They recently launched a sportswear line with their trademark DB pattern and patented Blueberry soles on both hiking boots and casual footwear. Those who follow the Blueberry lifestyle are part of
Answer:
A reference group
Explanation:
Reference groups are are set of people who are used as a standard for how to comply with social norms thereby influencing our ideas, values, behaviour, and appearance.
For example a reference group can be a set of people that have achieved a certain level of importance in a field by following a standard.
In the given scenario Blueberry Designs ads show a lifestyle that is sophisticated and timeless.
Those that follow the standards set by Blueberry designs can be said to be a reference group
Pab Corporation decided to establish Sollon Company as a wholly owned subsidiary by transferring some of its existing assets and liabilities to the new entity. In exchange, Sollon issued Pab 30,000 shares of $6 par value common stock. The following information is provided on the assets and accounts payable transferred:
Cost Book Value Fair Value
Cash $44,000 $44,000 $44,000
Inventory 76,000 76,000 76,000
Land 79,000 79,000 109,000
Buildings 175,000 134,000 249,000
Equipment 90,000 76,000 121,000
Accounts Payable 63,000 63,000 63,000
Required:
Prepare the journal entry that Pab recorded for the transfer of assets and accounts payable to Sollon.
Answer:
Debit : Cash $44,000
Debit : Inventory $76,000
Debit : Land $109,000
Debit : Buildings $249,000
Debit : Equipment $121,000
Credit : Accounts Payable $63,000
Credit : Shares (30,000 x $6) $180,000
Credit ; Gain on Bargain Purchase $356,000
Explanation:
Assets and liabilities are acquired at their Fair Value Amounts instead of Cost or Book Value.
A transfer of some of the asset of a Company is referred as a Asset acquisition transaction instead of Business Combination (Acquirer obtains control of one or more businesses).
This is an asset Acquisition Transaction and no consolidated Financial Statements will be prepared.
The excess of Net Assets Acquired over the consideration is called Gain on Bargain Purchase and this amounts to $356,000.
Match each term with how related transactions affect the accounting equation. Dividends Expenses Revenues Assets Liabilities Match each of the options above to the items below. Transactions that affect the left side of the accounting equation.Transactions that affect the left side of the accounting equation. Open choices for matching No answer Transactions that increase stockholders' equity.Transactions that increase stockholders' equity. Open choices for matching 1 Transactions that affect the right side of the accounting equation not related to stockholders' equity.Transactions that affect the right side of the accounting equation not related to stockholders' equity. Open choices for matching No answer Transactions that decrease stockholders' equity related to distributions to stockholders.Transactions that decrease stockholders' equity related to distributions to stockholders. Open choices for matching No answer Transactions that decrease stockholders' equity related to cost of generating revenues.
Answer:
1. Dividends
Correct match: Transactions that decrease stockholders' equity related to distributions to stockholders.
2. Expenses
Correct match: Transaction that decrease stockholders' equity related to cost of generating of generating revenues.
3. Revenues
Correct match: Transactions that increase stockholders' equity.
4. Assets
Correct match: Transactions that affect the left side of the accounting equation.
5. Liabilities
Correct match: Transactions that affect the right side of the accounting equation not related to stockholders' equity.
Consider a town in which only two residents, Bob and Cho, own wells that produce water safe for drinking. Bob and Cho can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water.
Price Quantity Demanded Total Revenue
(Dollars per gallon) (Gallons of water) (Dollars)
4.20 0 0
3.85 40 $154.00
3.50 80 $280.00
3.15 120 $378.00
2.80 160 $448.00
2.45 200 $490.00
2.10 240 $504.00
1.75 280 $490.00
1.40 320 $448.00
1.05 360 $378.00
0.70 400 $280.00
0.35 440 $154.00
0 480 0
Suppose Bob and Cho form a cartel and behave as a monopolist. The profit-maximizing __________price isper gallon, and the total output is__________gallons. As part of their cartel agreement, Bob and Cho agree to split production equally. Therefore, Bob's profit is__________, and Cho's profit is____________.
Suppose that Bob and Cho have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Bob says to himself, "Cho and I aren't the best of friends anyway. If I increase my production to 40 gallons more than the cartel amount, I can increase my profit even though her profit goes down. I will do that starting tomorrow."
After Bob implements his new plan, the price of water ________ to__________per gallon. Given Cho and Bob's production levels, Bob's profit becomes________ and Cho's profit becomes___________. Because Bob has deviated from the cartel agreement and increased his output of water to 40 gallons more than the cartel amount, Cho decides that she will also increase her production to 40 gallons more than the cartel amount. After Cho increases her production, Bob's profit becomes__________, Cho's profit becomes_________, and total profit (the sum of the profits of Bob and Cho) is now____________.
Answer:
Suppose Bob and Cho form a cartel and behave as a monopolist. The profit-maximizing price is 2.10 per gallon, and the total output is 240 gallons. As part of their cartel agreement, Bob and Cho agree to split production equally. Therefore, Bob's profit is $252 and Cho's profit is $252.
Suppose that Bob and Cho have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Bob says to himself, "Cho and I aren't the best of friends anyway. If I increase my production to 40 gallons more than the cartel amount, I can increase my profit even though her profit goes down. I will do that starting tomorrow."
After Bob implements his new plan, the price of water decreases to 1.75 per gallon. Given Cho and Bob's production levels, Bob's profit becomes 280 and Cho's profit becomes 210 . Because Bob has deviated from the cartel agreement and increased his output of water to 40 gallons more than the cartel amount, Cho decides that she will also increase her production to 40 gallons more than the cartel amount. After Cho increases her production, Bob's profit becomes 224 , Cho's profit becomes 224 , and total profit (the sum of the profits of Bob and Cho) is now 448.
Explanation:
Suppose Bob and Cho form a cartel and behave as a monopolist. The profit-maximizing price is 2.10 per gallon, and the total output is 240 gallons. As part of their cartel agreement, Bob and Cho agree to split production equally. Therefore, Bob's profit is $252 and Cho's profit is $252.
Suppose that Bob and Cho have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Bob says to himself, "Cho and I aren't the best of friends anyway. If I increase my production to 40 gallons more than the cartel amount, I can increase my profit even though her profit goes down. I will do that starting tomorrow."
After Bob implements his new plan, the price of water decreases to 1.75 per gallon. Given Cho and Bob's production levels, Bob's profit becomes 280 and Cho's profit becomes 210 . Because Bob has deviated from the cartel agreement and increased his output of water to 40 gallons more than the cartel amount, Cho decides that she will also increase her production to 40 gallons more than the cartel amount. After Cho increases her production, Bob's profit becomes 224 , Cho's profit becomes 224 , and total profit (the sum of the profits of Bob and Cho) is now 448.
At the beginning of Year 2, Better Corp.'s accounting records had the following general ledger accounts and balances. BETTER CORP. Accounting Equation Accounting Titles for Retained Earnings Event Liabilities + Notes Payable Common Stock Assets Stockholders' Equit Cash 20,000 Land 30,000 Retained Earnings 29,000 Balance 01/01/Year 2 13,000 8,000 Better Corp. completed the following transactions during Year 2:_____.
1. Purchased land for $10,000 cash.
2. Acquired $35,000 cash from the issue of common stock.
3. Received $74,000 cash for providing services to customers.
4. Paid cash operating expenses of $41,000.
5. Borrowed $20,000 cash from the bank.
6. Paid a $10,000 cash dividend to the stockholders.
7. Determined that the market value of the land purchased in event 1 is $45,000.
Required:
a. Record the transactions in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table
b. As of December 31, Year 2, determine the total amount of assets, liabilities, and stockholders' equity and present this information in the form of an accounting equation.
c. What is the amount of total assets, liabilities, and stockholders' equity as of January 1, Year 3?
Complete this question by entering your answers in the tabs below
Answer:
BETTER CORP.
Event Assets = Liabilities + Stockholders’ Equity Accounting Titles
for Retained
Earnings
Cash + Land = Notes + Common + Retained
Payable Stock Earnings
Balance
1/1/Yr 1 20,000 30,000 13,000 8,000 29,000
1. (10,000) 10,000
2. 35,000 35,000
3. 74,000 74,000 Service Revenue
4. (41,000) (41,000) Operating exp.
5. 20,000 20,000
6. (10,000) (10,000)
7. N/A N/A N/A
b. Balance 31/12
Yr 2 88,000 + 40,000 = 33,000 + 43,000 + 52,000
c. The amount of total assets as of January 1, Year 3 = $128,000; liabilities = $33,000; and stockholders' equity = $95,000.
Explanation:
The accounting equation states that total assets are equal to total liabilities and stockholders' equity. This equation gives accounting two sides to every transaction. This is known as the double-entry system of accounting. And the two sides are always in agreement before and after each transaction. The equation also implies that an entity's assets are funded by the creditors and the owners (stockholders).
BETTER CORP.
A: The transactions in the appropriate general ledger accounts:
Formula:
Event Assets = Liabilities + Stockholders’ Equity Accounting Title for Retained
Earnings
Cash + Land = Notes + Common + Retained
Payable Stock Earnings
20,000 30,000 13,000 8,000 29,000
1. (10,000) 10,000
2. 35,000 35,000
3. 74,000 74,000 Service Revenue
4. (41,000) (41,000) Operating exp.
5. 20,000 20,000
6. (10,000) (10,000)
7. N/A N/A N/A
B. The total amount of assets, liabilities, and stockholders' equity and present this information in the form of an accounting equation is:
Year 2: 88,000 + 40,000 = 33,000 + 43,000 + 52,000
C .The amount of total assets as of :
January 1,
Year 3 = $128,000 liabilities = $33,000stockholders' equity = $95,000.Learn more :
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Improvised explosive devices (IEDs) are responsible for many deaths in times of strife and war. Unmanned ground vehicles (robots) can be used to disarm the IEDs and perform other tasks as well. If the robots cost $130,000 each and the military arms unit signs a contract to purchase 3,500 of them now and another 6,500 one year from now, what is the equivalent annual cost of the contract over a 5-year period at 10% per year interest
Answer:
$258,434,439.9
Explanation:
Calculation for what is the equivalent annual cost of the contract
Equivalent annual cost = [3,500 x $130,000 x A/P(10%, 5) ]+ [6,500 x $130,000 x P/F(10%, 5) x A/P(10%, 5)]
Equivalent annual cost = [$455,000,000 x 0.2638] + [$845,000,000 x 0.6209 x 0.2638]
Equivalent annual cost =$120,029,000+$138,405,439.9
Equivalent annual cost =$258,434,439.9
Therefore the equivalent cost of the contract is determined to be $258,434,439.9
Someone offers to buy your old Ford F-150 truck for 4 equal annual payments, beginning 2 years from today. If you think that the present value of your Ford Truck is only $9,000 and you assume the interest rate is 10%, which one of the below would be the minimum annual payment that youâ d be willing to accept? $2,839.24 $3,435.48 $3,123.16 $2,250
Answer:
$3,123.16
Explanation:
The computation of the minimum annual payment is as follows:
Given that
RATE = 10%
NPER = 10%
PV = $9,000 × (1 + 0.1) = $9,900
FV = $0
The formula is shown below:
= PMT(RATE,NPER,-PV,FV,TYPE)
After applying the above formula, the monthly payment is $3,123.16
Assume Italy and Chad can both produce grain and dates, and that the only limited resource is the farming labor force, meaning that land, water, and all other resources are plentiful in both countries. Each farmer in Italy can produce 10 t of grain or 5 t of dates in a season. Each farmer in Chad can also produce 10 t of grain or 25 t of dates.
1. Which country has the absolute advantage in producing dates?
A. Italy.
B. Chad.
C. Neither.
2. Which country has the absolute advantage in producing grain?
A. Italy.
B. Chad.
C. Neither.
3. Which country has the competitive advantage in producing dates?
A. Italy.
B. Chad.
C. Neither.
4. Which country has the comparative advantage in producing grain?
A. Italy.
B. Chad.
C. Neither.
Answer:
chad
neither
chad
Italy
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
The opportunity cost of Italy in producing one unit of grain = 5/10 = 0.5t dates
The opportunity cost of Italy in producing one unit of dates = 10/5 = 2grains
The opportunity cost of Chad in producing one unit of grain = 25/10 = 2.5 dates
The opportunity cost of Chad in producing one unit of dates = 10/25 = 0.4 grains
Italy has a comparative advantage in the production of grains while Chad has a comparative advantage in the production of dates
A country has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries. Chad produces 25t of dates while Italy produces 5t of dates, this shows that Chad has an absolute advantage in the production of dates. Both Italy and Chad produces the same quantity of grains so neither have an absolute advantage in the production of grains.
The cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $194,560. The conversion cost for the period in the Filling Department is $98,340. The total equivalent units for direct materials and conversion are 25,600 ounces and 29,800 ounces, respectively. Determine the direct materials and conversion costs per equivalent unit. If required, round to the nearest cent.
Direct materials cost per equivalent unit: $ per ounce
Conversion costs per equivalent unit: $ per ounce
The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve Cosmetics Company are $2.20 and $0.65, respectively. The equivalent units to be assigned costs are as follows:
Equivalent Units
Direct Materials Conversion
Inventory in process, beginning of period 0 3,600
Started and completed during the period 45,000 45,000
Transferred out of Filling (completed) 45,000 48,600
Inventory in process, end of period 3,000 1,500
Total units to be assigned costs 48,000 50,100
The beginning work in process inventory had a cost of $2,380. Determine the cost of completed and transferred-out production and the ending work in process inventory. If required, round to the nearest dollar.
Completed and transferred-out production $
Inventory in process, ending $
Answer:
Part 1
Direct material cost per equivalent units = $194,560 / 25,600 ounces
Direct material cost per equivalent units = $ 7.60 per ounce
Conversion Cost per equivalent units = $98,340 / 29,800 ounce
Conversion Cost per equivalent units = $3.30 per ounce
Part 2
Completed and Transferred out of production = $2380 + (45,000* $2.20) + (3,600 * $0.65) + (45,000 * $0.65)
= $2,380 + $99,000 + $2,340 + $29,250
= $132,970
Inventory in process, ending = (3000 * $2.20) + (1500 * $0.65)
= $6,600 + $975
= $7,575
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $348,400 and direct labor hours would be 47,000. Actual manufacturing overhead costs incurred were $304,000, and actual direct labor hours were 52,400. The journal entry to apply the factory overhead costs for the year would include a
Answer:
Journal Entry
Debit Work-in-Process $388,284
Credit Manufacturing Overhead $388,284
To record the application of factory overhead costs for the year.
Explanation:
a) Data and Calculations:
Estimated factory overhead costs = $348,400
Estimated direct labor hours = 47,000
Predetermined overhead rate = $7.41 ($348,400/47,000)
Actual overhead costs = $304,000
Actual direct labor hours = 52,400
Applied overhead costs = $388,284 (52,400 * $7.41)
b) The overhead applied to the production for the year will be the actual direct labor hours by the predetermined overhead rate. This yields a cost that is greater than the actual overhead costs, which means that the manufacturing overhead was overapplied. The cause of this situation is the number of actual direct labor hours worked vis-a-vis the actual overhead costs and the predetermined rate.
Sunland Company, has 14700 shares of 4%, $100 par value, cumulative preferred stock and 60200 shares of $1 par value common stock outstanding at December 31, 2021. There were no dividends declared in 2019. The board of directors declares and pays a $113000 dividend in 2020 and in 2021. What is the amount of dividends received by the common stockholders in 2021
Answer:
2021 Common Stockholders dividends = $49,600
Explanation:
Preference Shareholders are always paid their dividends first before Common Stockholders. If dividend is not declared, Preference dividends are cumulated to the next period and are due !
2019
Preferred Stockholders Dividends = 14700 x $100 x 4% = $58,800
Common Stockholders dividends = $ 0
2020
Preferred Stockholders Dividends = $58,800 (2019) + $54,200 (2020)
Common Stockholders dividends = $0
2021
Preferred Stockholders Dividends = $4,600 (2020 arrears) + $58,800 (2021) = $63,400
Common Stockholders dividends = $113,000 - $63,400 = $49,600
Janice Davis, a marketing representative for a U.S. firm, was looking forward to her assignment in Japan because she had visited the country on one occasion. However, her anticipation quickly turned to frustration. Because all store signs were in Japanese, she didn't know where to buy even a broom. Directions and instructions for using appliances were in Japanese. How could Janice have better prepared herself for the cultural shock she experienced
Answer:
Janice should have researched and studied the culture and living conditions of Japan before coming to the country. It is their culture to use the Japanese language for signs and instructions
Explanation:
Culture shock occurs when an individual moves to a cultural environment that is different from their own. This results in a disorientation from experiencing unfamiliar way of life.
If adequate preparation is not made before coming into the new environment it will most likely result in frustration as one finds it difficult to fit in.
In this instance Janice should have studied the culture most especially the language before coming into the country. This would have made it easier for her to adapt to their way of life.
what are the 6 critcal elements of a successful business
Answer:
Capital
Invest ment
Skilled manpower
High quality products
Machinery
Raw materials
among the major drawbacks of highly centralized organizational structure is that it allows for tight control from the top that makes it easy to fix accountability when things do not go well. allows top executives to retain authority for most strategic and operating decisions. can lengthen response times by those closest to the market conditions because they must seek approval for their actions. relies on the assumption that most company personnel have neither the time nor the inclination to direct and properly control the work they are performing and, further, that they lack the knowledge and judgment to make wise decisions about how best to do their work. is based on strict enforcement of detailed procedures backed by rigorous managerial oversight as the most reliable way to keep the daily execution of strategy on track.
Answer: can lengthen response times by those closest to the market conditions because they must seek approval for their actions
Explanation:
Centralization simply refers to a form of organizational scenario where there is one person at the top that usually makes the major decisions for the company. The powers are usually held by those at the top and messages are passed to the lower level to be implemented.
One major drawback is that it can lengthen the response times by those closest to the market conditions because they must seek approval for their actions.
