Answer:
a. $27,000
b. $670,000
$21,000
$27,000
c.$649,000
Explanation:
a. Calculation to determine the amount of the adjusting entry for uncollectible accounts
Using this formula
Adjusting entry for Uncollectible accounts = Allowance for Doubtful Accounts - Debit balance on Allowance for doubtful accounts
Let plug in the formula
Adjusting entry for Uncollectible accounts= $21,000 + $6,000
Adjusting entry for Uncollectible accounts= $27,000
b. Calculation to determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
Accounts Receivable = $670,000
Allowance for Doubtful Accounts = $21,000
Bad Debt Expense =$21,000 + $6,000
Bad Debt Expense= $27,000
c. Calculation to determine the net realizable value of accounts receivable
Using this formula
Net realizable value of accounts receivable = Accounts receivables - Allowance for Doubtful Accounts
Let plug in the formula
Net realizable value of accounts receivable= $670,000 - $21,000
Net realizable value of accounts receivable= $649,000
Therefore the net realizable value of accounts receivable is $649,000
April 1 April 30 Raw materials inventory $10,500 $13,500 Work in process inventory 5,350 3,770 Materials purchased in April $98,100 Direct labor in April 80,300 Manufacturing overhead in April 160,000 Prepare the cost of goods manufactured schedule for the month of April
Answer:
cost of goods manufactured= $336,980
Explanation:
First, we need to calculate the direct material used:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 10,500 + 98,100 - 13,500
Direct material used= $95,100
Now, the cost of goods manufactured:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 5,350 + 95,100 + 80,300 + 160,000 - 3,770
cost of goods manufactured= $336,980
Maxim manufactures a hamster food product called Green Health. Maxim currently has 15,500 bags of Green Health on hand. The variable production costs per bag are $2.90 and total fixed costs are $21,000. The hamster food can be sold as it is for $10.00 per bag or be processed further into Premium Green and Green Deluxe at an additional cost. The additional processing will yield 15,500 bags of Premium Green and 4,100 bags of Green Deluxe, which can be sold for $9 and $7 per bag, respectively. The incremental revenue of processing Green Health further into Premium Green and Green Deluxe would be:_________.
a. $163,200.
b. $13,200.
c. $8,200.
d. $5,000.
e. $168,200.
Answer:
b. $13,200.
Explanation:
Revenue from the sale of Green Health bags = Number of bags * Selling price
Revenue from the sale of Green Health bags = 15,500 bags * $10
Revenue from the sale of Green Health bags = $155,000
Revenue from Premium Green = Number of bags * Selling price
Revenue from Premium Green = 15,500 bags * $9
Revenue from Premium Green = $139,500
Revenue from Green Deluxe = Number of bags * Selling price
Revenue from Green Deluxe = 4,100 bags * $7
Revenue from Green Deluxe = $28,700
Incremental revenue = Revenue from Premium Green + Revenue from Green Deluxe - Revenue from Green Health\
Incremental revenue = $139,500 + $28,700 - $155,000
Incremental revenue = $13,200
So, the incremental revenue of processing Green Health further into Premium Green and Green Deluxe would be $13,200.
Which 3 statements about the Client request functionality are correct? Selecting Create client request on the Work screen begins the process Checking the Notify client checkbox means the client will be sent an email You can't add attachments to a client request You can request documents from a non-QuickBooks Online client To update the status of a client request, select the request and then the Status drop-down
Answer: • Selecting Create client request on the Work screen begins the process.
• Checking the Notify client checkbox means the client will be sent an email.
• To update the status of a client request, select the request and then the Status drop-down.
Explanation:
QuickBooks refers to an online accounting software that's utilized by several businesses and can be used in the request of information from ones clients.
From the options given, the statements about the client request functionality which are correct include:
• Selecting Create client request on the Work screen begins the process.
• Checking the Notify client checkbox means the client will be sent an email.
• To update the status of a client request, select the request and then the Status drop-down.
Andrews Company currently has the following balances in their liability and equity accounts: Total Liabilities: $52,319,000 Common Stock: $8,808,000 Retained Earnings: $45,066,000 Next year the Andrews Company generates $11,500,000 in Net Profit, pays $5,000,000 in dividends, and total liabilities and common stock remain unchanged. What will their total assets be next year
Answer: $112,693,000
Explanation:
Total assets = Equity + Liabilities
Liabilities will not change in the new year.
Retained earnings = Beginning retained earnings + Net income - Dividends
= 45,066,000 + 11,500,000 - 5,000,000
= $51,566,000
Assets = (8,808,000 + 51,566,000) + 52,319,000
= $112,693,000
Note: Equity is the sum of common stock and retained earnings
If 11 workers can produce a total of 54 units of a product and a 12th worker has a marginal product of 6 units, then the average product of 12 workers is:
Answer:
the average product of 12 workers is 5
Explanation:
The computation of the average product of 12 workers is shown below:
= (Number of units of a product in the case of 11th workers + marginal product of units in 12th worker) ÷ number of workers
= (54 + 6) ÷ 12
= 5
Hence, the average product of 12 workers is 5
The same is to be considered
Denzel Brooks opened a Web consulting business called Venture Consultants and completes the following transactions in March.
March
1 Brooks invested $185,000 cash along with $26,000 in office equipment in the company
2 The company prepaid $8,000 cash for six months' rent for an office. Hint: Debit Prepaid Rent for $8,000.
3 The company made credit purchases of office equipment for $5,100 and office supplies for $2,000. Payment is due within 10 days.
6 The company completed services for a client and immediately received $5,500 cash.
9 The company completed a $8,500 project for a client, who must pay within 30 days.
12 The company paid $7,100 cash to settle the account payable created on March 3.
19 The company paid $6,200 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $6,200.
Required:
a. Prepare general journal entries to record these transactions.
b. Post the journal entries from part 1 to the ledger accounts.
c. Prepare a trial balance as of the end of March.
Answer:
Venture Consultants
1. Journal Entries:
March 1 Debit Cash $185,000
Debit Office equipment $26,000
Credit Common stock $211,000
March 2 Debit Prepaid Rent $8,000
Credit Cash $8,000
March 3 Debit Office equipment $5,100
Debit Office supplies $2,000
Credit Accounts payable $7,100
March 6 Debit Cash $5,500
Credit Service revenue $5,500
March 9 Debit Accounts receivable $8,500
Credit Service revenue $8,500
March 12 Debit Accounts payable $7,100
Credit Cash $7,100
March 19 Debit Prepaid Insurance $6,200
Credit Cash $6,200
b. T-accounts:
Cash
Date Account Titles Debit Credit
March 1 Common stock $185,000
March 2 Prepaid Rent $8,000
March 6 Service revenue 5,500
March 12 Accounts payable 7,100
March 19 Prepaid Insurance 6,200
March 31 Balance $169,200
Prepaid Rent
Date Account Titles Debit Credit
March 2 Cash $8,000
Prepaid Insurance
March 19 Cash $6,200
Office equipment
Date Account Titles Debit Credit
March 1 Common stock $26,000
March 3 Accounts payable 5,100
March 31 Balance $31,100
Office supplies
Date Account Titles Debit Credit
March 3 Accounts payable $2,000
Accounts receivable
Date Account Titles Debit Credit
March 9 Service revenue $8,500
Accounts payable
Date Account Titles Debit Credit
March 3 Office equipment $5,100
March 3 Office supplies $2,000
March 12 Cash $7,100
Common stock
Date Account Titles Debit Credit
March 1 Cash $185,000
March 1 Office equipment 26,000
March 31 Balance $211,000
Service revenue
Date Account Titles Debit Credit
March 6 Cash $5,500
March 9 Accounts receivable 8,500
March 31 Balance $14,000
c. Trial Balance as of March 31
Date Account Titles Debit Credit
Cash $169,200
Prepaid rent 8,000
Prepaid insurance 6,200
Accounts receivable 8,500
Office equipment 31,100
Office supplies 2,000
Common stock $211,000
Service Revenue 14,000
Totals $225,000 $225,000
Explanation:
a) Data and Analysis:
March 1 Cash $185,000 Office equipment $26,000 Common stock $211,000
March 2 Prepaid Rent $8,000 Cash $8,000
March 3 Office equipment $5,100 Office supplies $2,000 Accounts payable $7,100
March 6 Cash $5,500 Service revenue $5,500
March 9 Accounts receivable $8,500 Service revenue $8,500
March 12 Accounts payable $7,100 Cash $7,100
March 19 Prepaid Insurance $6,200 Cash $6,200
Epsilon Co. can produce a unit of product for the following costs: Direct material $ 8 Direct labor 24 Overhead 40 Total costs per unit $ 72 An outside supplier offers to provide Epsilon with all the units it needs at $60 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead. Epsilon should choose to:
Answer:
If the company produces the units, it will save $4.
Explanation:
First, we need to calculate the relevant cost of making the units in-house. We will consider only the incremental overhead cost:
Make in-house:
Direct material= 8
Direct labor= 24
Avoidable Overhead= 40*0.6= 24
Total cost= $56
Buying:
Total cost= $60
If the company produces the units, it will save $4.
The following department data are available: Total materials costs $172000 Equivalent units of production - materials 50000 Total conversion costs $105000 Equivalent units of production - conversion costs 30000 What is the total manufacturing cost per unit
Answer:
6.94
Explanation:
The total cost of materials is $172,000
The equivalent unit of production materials is 50,000
The total conversion costs are $105,000
The equivalent unit of production is 30,000
Therefore the total manufacturingg costs per unit can be calculated as follows
172,000/50,000
= 3.44
105,000/30,000
= 3.5
3.44+3.5
= 6.94
Arya has a homeowner’s policy that covers up to $400,000. Her house is completely destroyed in a fire. When an assessment is made of the house and possessions, it is decided that her losses are only worth about $350,000. How much money will Arya receive from her insurer (assuming there is no deductible)? A. $50,000 B. $200,000 C. $350,000 D. $400,000
Answer:
C: 350,000$
Explanation:
If there is no deductible then the insurance would pay the damges. Damages were 350,00$
what is the good that you have selected?
Answer:
what do you mean by that
Explanation:
can you please explain more of the question
Which of the following is a false statement?
A. Certain states have no state income tax.
B. Depending on where you live, you may pay no state income taxes.
C. All states have a flat state tax.
D. Most states have state income tax
Answer:Its C.
Explanation:
Its C because only 11 states have flat taxes at the moment.
What is one result of competition in a free-market economy?
A. The government decides who is allowed to compete in the market.
B. Consumers can choose which company's products they want to
buy.
C. Traditional values determine who will compete in the market.
D. Businesses control the price that all the companies within an
industry can charge.
Answer:
b
Explanation:
NFL players and owners are trying to negotiate a new labor contract. The owners are getting ready to send the contract over to the players who can then choose to accept the terms or keep bargaining. The owners are deciding whether to stipulate 16 games or 18 games as part of the contract. They would prefer 18 games, but they are worried that the players will not accept the contract and will keep bargaining if they put 18 games in the contract. The situation is described by the sequential game tree below: In the Nash equilibrium, the owners will choose ____________ and the players will respond by choosing to _________________.
Answer:
The answer is "16 games; accept the terms".
Explanation:
In this case, the players will decide the strategy first, followed by the owners.
Participants will choose the Keep Bargaining strategy to maximize its reward in the subgame of Owners' 18 games. "As a consequence, and here is the outcome:"
Players will choose the Accept Terms strategy to maximize the reward in the subgame Players on Owners' 16 games. (350M) and (250M) are the results.
To get a larger payout of $350M, the Owner would have to select a strategy among 16 games. Nash equilibrium is ($350M, $250M) in this case. It implies that the Owner's strategy in Nash equilibrium is to play 16 games, while the Players' strategy is to accept Terms.
On November 1, 2015, Lendem, Inc. loaned an employee $100,000 at 6% with both the interest and principal due in one year. The adjusting entry to record the interest earned but not received as of December 31, 2015 includes a: A. debit to Interest Receivable of $1,000 B. debit to Interest Revenue of $1,000 C. debit to Interest Payable of $6,000 D. debit to Cash of $5,000 E. debit to Interest Receivable of $6,000
Answer:
A. debit to Interest Receivable of $1,000
Explanation:
The journal entry is given below;
Interest Receivables ($100,000 × 6% × 2 ÷ 12) $1,000.00
To Interest Revenue $1,000.00
(being the interest earned but not received is recorded)
Here the interest receivable is debited as it increased the assets and credited the interest revenue as it also increased the revenue
Your uncle repays a $150 loan from Tenth National Bank (TNB) by writing a $150 check from his TNB checking account. Assume these funds are the only loans and deposits available for your uncle and the bank.
Required:
Write the T-account table.
Answer: See explanation
Explanation:
The T-account for your uncle before the loan is repaid will be:
Your Uncle:
Assets: Bank accounts $150
Liabilities: Loan $150
Tenth National Bank
Assets: Loan and advance $150
Liabilities: Deposits $150
The T-account and TNB for your uncle after the loan is repaid will be:
Your Uncle
Assets: Bank account $0
Liabilities: Loan $0
Tenth National Bank
Assets: Loan and advance $0
Liabilities: Deposits $0
If the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate?
a. 1.33
b. 1.00
c. 0.75
d. 1.25
Answer:
d. 1.25
Explanation:
In a business context, the capacity utilization rate is a value that allows the company know how well they are performing compared to what the recorded optimal levels are. In order to calculate this value we simply divide the current operating level for a specific time-period by the optimal level of that same time period, which in this case would be 1 hour. Therefore, in this case we would divide 500 by 400 which would give us 1.25.
Consider an auctioneer who is selling an item through an auction. It is known that the 25 risk-neutral bidders have affiliated values that are distributed between $0 and $500 million. Based on this information, the auction type that will maximize expected revenue is:____.
1. English auction.
2. second-price, sealed-bid auction.
3. first-price, sealed-bid auction and Dutch auction.
4. English auction and second-price, seal-bid auction.
Answer:
2. second-price, sealed-bid auction.
Explanation:
In the given situation, it is mentioned that there is 25 risk -neutral bidders that contains the affiliated values and the same is to be allocated between $0 and $500 million
So, here the type of an action that could maximize the expected revenue is the second price i.e. sealed bid auction as in this the bidder provides the maximum price that received the good in the second maximum price
Therefore, the second option is correct
On March 29, a customer who owes $14,611 on account to Sonic Sales Company submits a payment of $7,547. Journalize this transaction.
Answer and Explanation:
The journal entry is given below:
Cash $7,547
To Accounts Receivable $7,547
(Being cash collection is recorded)
Here cash is debited as it increased the assets and credited the account receivable as it decreased the assets
The same should be considered and relevant
The F. Mercury, Capital account has a credit balance of $42,000 before closing entries are made. Total revenues for the period are $60,200, total expenses are $42,300, and withdrawals are $11,000. What is the correct closing entry for the expense accounts
Answer: Debit Income Summary $42,300; Credit Expense accounts $42,300
Explanation:
It should be noted that the expense accounts have a normal debit balance and therefore in such case will be closed by crediting of the accounts.
In such case, the income summary account will be debited, and the expenses account will then be credited.
Based on the information given, the correct closing entry for the expense accounts will be:
Debit Income Summary $42,300
Credit Expense accounts $42,300.
Which ratio measures the number of dollars of operating cash available to meet each dollar of interest and other fixed charges that the firm owes?
Answer:
Fixed-charge coverage ratio
Explanation:
The fixed-charge coverage ratio can be regarded as a rato that gives the measurements of the ability of a firm have to cover all her fixed charges. These fixed charges could be expense as well as debt payments and interest. It displays the wellness that earnings of a company has to cover its fixed expenses. This ratio is considered by bank before they lend money to a business. It should be noted that Fixed-charge coverage ratio measures the number of dollars of operating cash available to meet each dollar of interest and other fixed charges that the firm owes.
The only way to decrease your lifestyle budget is by completely eliminating an item.
True
False
Answer:
False
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.
The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.
A lifestyle can be defined as the way and manner an individual chooses to live his or her life. Similarly, a lifestyle budget comprises the cost of goods and services an individual has chosen to spend his or her money on.
Basically, completely eliminating an item isn't the only way to decrease a lifestyle budget because there could be similar items that even cost way more than the eliminated item.
Some of the benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.
Answer:
False
Explanation:
The only way to decrease your lifestyle budget is by completely eliminating an item.
True
False
Capital gains may be preferred by investors over dividends even if dividends and capital gains are taxed at the same rate because
a. taxes on dividends are withheld immediately
b. taxes on capital gains are paid annually
c. taxes on capital gains can be timed
d. after-tax dividends are less certain than capital gains
Answer: c. taxes on capital gains can be timed
Explanation:
Capital gains represent an appreciation in the value of a security therefore they bring in profit to the owners of that security. Capital gains are not taxed until the owner sells the security which means that these taxes can be timed by the owner who can decide to sell at specific times to reduce their tax bill.
This is different from dividends that are taxed as soon as the company declares them. The investors have no say as to the tax timing so they will prefer capital gains where they have some form of control.
You currently have $150,000 in an IRA designated for retirement. If you save an additional $100 at the end of every month and expect to earn an annual return of 12 percent, how much do you expect to have in the IRA in 10 years?
Answer:
$518,061.90
Explanation:
The value of the retirement savings at retirement date is the future value of both its current balance of $150,000 and future value of $100 per month for 10 years compounded at the monthly rate of return
FV=PV*(1+r)^n+ monthly savings*(1+r)^n-1/r
PV=$150,000
r=monthly rate of return=12%/12=1%=0.01
monthly savings=$100
n=number of monthly savings in 10 years=10*12=120
FV=$150000*(1+0.01)^120+$100*(1+0.01)^120-1/0.01
FV=$150000*(1.01)^120+$100*(1.01)^120-1/0.01
FV=$150000*3.30038689+$100*(3.30038689-1)/0.01
FV=$150000*3.30038689+$100*2.30038689/0.01
FV=$495,058.03+$ 23,003.87
FV=$518,061.90
Costs of $5,000 were incurred to acquire goods and make them ready for sale. The goods were shipped to the buyer (FOB shipping point) for a cost of $200. Additional necessary costs of $400 were incurred to acquire the goods. No other incentives or discounts were available. What is the buyer's total cost of merchandise inventory?a. $5,000.b. $5,200.c. $5,400. d. $5,600.
Answer:
d. $5,600
Explanation:
The computation of the total cost of merchandise inventory is shown below:
Cost of goods purchased $5,000
Add: Shipping charges (FOB point) $200
Additional necessary costs to purchase the goods $400
Buyer’s total cost of merchandise inventory $5,600
Hence, the total cost of merchandise inventory is $5,600
Therefore the option d is correct
Suppose an economy starts the year with $100 million in capital, and during the course of a year, it adds $20 million of gross investment. Economists estimate that the depreciation rate for this economy is 9% per year.
Required:
a. Calculate depreciation and net investment for this economy.
b. Calculate the value of net exports.
Answer:
Correct word for question b. "Now calculate the amount of next year's beginning capital stock for this economy"
a. Begins the year with $100 million in capital. Depreciation rate is 9% per year
Depreciation = 9% * $100 million
Depreciation = 0.09 * $100 million\
Depreciation = $9 million
Gross investment = $20 million
Net investment = Gross investment - Depreciation
Net investment = $20 million - $9 million
Net investment = $11 million
b. Next year begining capital stock = Capital stock at the begining of previous year + Net investment
Next year begining capital stock = $100 million + $11 million
Next year begining capital stock = $111 million
An organization's budget program should not be used: Group of answer choices to motivate employees. to assign blame to managers that do not meet budgetary goals. to help evaluate managers. to allocate resources to the various parts of an organization.
Answer:
to assign blame to managers that do not meet budgetary goals.
Explanation:
A budget is used to forecast a company's income and expenses over a specified period.
Uses of a budget
1. It is used to evaluate the performance of managers in meeting the amounts stated in the budget
2. It is also used in allocating resources to the various parts of an organization. for example, units that have been forecasted to earn a higher revenue would receive a higher part of the budget
3. It is used to develop an action plan for the organisation
Physical-world observations are a type of information available to businesses today and include information gathered through Multiple Choice point of sale information. global positioning systems. enterprise resource planning data. customer relationship management systems.
Answer:
Option D (Customer relationship management systems) is the right option.
Explanation:
A management technique aimed at developing, strengthening, and strengthening connections with carefully scripted users just to optimize value proposition, business profitability but instead wealth maximization.It must be commonly used mostly for technology firms and technologies that assist throughout the management of external client contacts.The other three options are not related to the given scenario. So option D is the correct one.
The available information for today's business such as Physical-world observations are information that can be assessed by D:Customer relationship management.
Customer relationship management can be regarded as technology that is needed to manage the company's relationships as well as interactions with customers. This system helps companies in having firm connection to customers for improved profitability.Therefore, option D is correct.
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Atkins Company collected $1,750 as payment for the amount owed by a customer from services provided the prior month on credit. How does this transaction affect the accounting equation for Atkins?A. Assets would decrease $1,750 and liabilities would decrease $1,750.B. One asset would increase $1,750 and a different asset would decrease $1,750, causing no effect.C. Assets would increase $1,750 and liabilities would increase $1,750.D. Assets would increase $1,750 and equity would increase $1,750.E. Liabilities would decrease $1,750 and equity would increase $1,750.
Answer: B. One asset would increase $1,750 and a different asset would decrease $1,750, causing no effect
Explanation:
From the information given in the question, the journal entry at the time of sales will be represented as:
Debit Accounts receivable $1,750
Credit Sales $1750
Now, when the credit receipt is received as illustrated in the question, the journal entry will be:
Debit Cash $1,750
Credit Accounts receivable $1,750
Therefore, one asset would increase $1,750 and a different asset would decrease $1,750, causing no effect.
The correct option is B.
On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________.
Answer:
The correct answer is "$15,000".
Explanation:
Given:
Value,
= $250,000
Interest rate,
= 6%
The Interest Payment will be:
[tex]Value\times Interest \ rate[/tex]
= [tex]250,000\times 6[/tex]%
= [tex]15,000[/tex] ($)
Krenshaw Company reported total sales revenue of $80,000, total expenses of $72,000, and net income of $8,000 for the year ended December 31, 2009. During 2009, accounts receivable increased by $3,000, merchandise inventory decreased by $2,000, accounts payable increased by $1,000, and $5,000 in depreciation expense was recorded. Assuming no other adjustments to net income are needed, the net cash inflow from operating activities using the indirect method was:
Answer: $13000
Explanation:
Following the information provided in the question, the net cash inflow from operating activities using the indirect method will be calculated as follows:
Net Income = $8,000
Add: Depreciation expense = $5,000
Add: Decrease in inventory = $2,000
Add: Increase in account payable = $1,000
Less: Increase in account receivable (3,000)
Cash inflow from operating activities = $13000
