Orion Flour Mills purchased a new machine and made the following expenditures:
Purchase price $55,000
Sales tax 5,000
Shipment of machine 800
Insurance on the machine for the first year 500
Installation of machine 1,600
The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash.
Required:
Record the above expenditures for the new machine.
Answer:
Dr Equipment 62400
Dr Prepaid Insurance 500
Cr Cash 2900
Cr Accounts Payable 60,000
Explanation:
Preparation of the journal entry to Record the above expenditures for the new machine.
Dr Equipment 62400
Dr Prepaid Insurance 500
Cr Cash 2900
Cr Accounts Payable 60,000
(62,400+500-2900)
Equipment:
Purchase price ($55,000) + Sales tax (5,000) + Shipping (800) + Installation (1,600) =
Total cost 62400
Cash:
Shipment of machine (800) + Insurance on the machine ((500)) +Installation of the machine (1,600) = 2900
Judge made laws are known as
A firm will maximize the present value of future profits by maximizing current profits when: the growth rate in profits is constant. the growth rate in profits is larger than the interest rate. Correct! the interest rate is larger than the growth rate in profits and both are constant. the growth rate and interest rate are constant and equal.
Answer:
the interest rate is larger than the growth rate in profits and both are constant.
Explanation:
In the case when the firm wants to maximize the present value of the profits that arise in near future so here the current profits would be maximize at the time when the rate of interest would be more than the growth rate and both would remain constant
Hence, the option c is correct
1. Which statement about leaders and managers is most likely false?
a)
Managers are concerned with the efficiency of results, whereas leaders are
primarily concern with results.
b)
Leaders focus on risk taking whereas managers focus on planning
c)
Leaders accept the status quo, managers challenge it.
d)
Leaders develop but managers maintain.
Answer:
I'd say A!
Explanation:
hope this helps! sorry if it's wrong
Income Statement; Net Loss The following revenue and expense account balances were taken from the ledger of Guardian Health Services Co. after the accounts had been adjusted on February 28, 20Y0, the end of the fiscal year: Depreciation Expense $15,600 Insurance Expense 7,640 Miscellaneous Expense 6,080 Rent Expense 63,000 Service Revenue 299,500 Supplies Expense 3,740 Utilities Expense 24,020 Wages Expense 235,600 Prepare an income statement. Use a minus sign to indicate a net loss.
Answer:
-$56,180
Explanation:
Preparation of an income statement
INCOME STATEMENT
Service revenue $299,500
Less Expenses:
Depreciation expense $15,600
Insurance expense $7,640
Miscellaneous expense $6,080
Rent expense $63,000
Supplies expense $3,740
Utilities expense $24,020
Wages expense $235,600
Total expenses $355,680
Net loss -$56,180
($299,500-$355,680)
Therefore the income statement balance will be -$56,180
you are required to write a report and in this report you are to consider the importance of understanding the business environment
Answer:
The understanding of its business environment helps an organization to make realistic plans and ensure their effective implementation. It also helps thebusiness enterprise in identification of opportunities and threats.
Explanation:
I am not sure if this is what you wanted
The following data relate to Department no. 3 of Winslett Corporation: Segment contribution margin$540,000 Profit margin controllable by the segment manager 310,000 Segment profit margin 150,000 On the basis of this information, Department no. 3's variable operating expenses are: Multiple Choice Not determinable. $160,000. $80,000. $390,000. $230,000.
Answer:
$230,000
Explanation:
The Profit margin controllable by the segment manager contains only items directly controllable by the manager and this consists of variable costs. So deduct the profit margin controllable by the segment manager from segment contribution margin to arrive at Variable operating expenses.
Calculation of Variable operating expenses
Segment contribution margin $540,000
Less Profit margin controllable by the segment manager ($310,000)
Variable operating expenses $230,000
Blair Madison Co. issues $2.4 million of new stock and pays $331,000 in cash dividends during the year. In addition, the company took advantage of falling interest rates to borrow $1.64 million in a new bond issue and paid off existing bonds with a face value of $2.70 million. The company bought 514 of another company's $1,140 bonds at a $114,000 premium. The net cash flow provided by financing activities is:
Answer: $1,009,000
Explanation:
Based on the information given, the net cash flow provided by financing activities will be:
New stock issued = $2,400,000
Add: New bond issued = $1,640,000
Less: Cash dividend = $331,000
Less: Existing bonds paid = $2,700,000
Net cash flow = $1,009,000
Methods analysis is particularly valuable when it is used on jobs that: (I) are high in labor content. (II) are done frequently. (III) involve a high degree of automation and mechanization. (IV) are unsafe, tiring, unpleasant, and/or noisy. A. I, II, III, and IV B. I, II, and IV only C. II and III only D. II and IV only E. I and III only
Answer:
B. I, II, and IV only
Explanation:
Job specialization can be defined as a strategic process which typically involves the ability of employees working in an organization to develop specific skills, knowledge, great expertise or professionalism and experience to perform their duties, tasks or job functions effectively and efficiently.
In order to gain the requisite skills, expertise and knowledge for job specialization, it is very important for the employees to have undergone an extensive training and a good number of years in work experience.
The primary purpose of job specialization is to increase efficiency and productivity because the employees are able to specialize in the use of specific tools (equipments) to accomplish their tasks, as well as limit the level of error or mistakes in the production process.
In Business management, method analysis can be defined as the study of the detailed process for the performance of a job i.e how a job is done. Thus, method analysis gives a detailed report on the tasks involved in the performance of a job and how they are to be done.
Basically, methods analysis is particularly valuable when it is used on jobs that:
1. Are high in labor content.
2. Are done frequently.
3. Are unsafe, tiring, unpleasant, and/or noisy.
Two-Stage ABC for Manufacturing: Reassigning Costs to Cost Objectives National Technology, LTD. has developed the following activity cost information for its manufacturing activities:
Activity Activity Cost
Machine setup $75.00 per batch
Movement 22.00 per batch
0.10 per pound
Drilling 3.00 per hole
Welding 6.00 per inch
Shaping 32.00 per hour
Assembly 18.00 per hour
Inspection 2.00 per unit
Filling an order for a batch of 50 fireplace inserts that weighed 150 pounds each required the following:
Three batch moves .
Two sets of inspections .
Drilling five holes in each unit
Completing 80 inches of welds on each unit .
Thirty minutes of shaping for each unit .
One hour of assembly per unit
Determine the activity cost of converting the raw materials into 50 fireplace inserts
Fireplace Inserts
Activity Cost
Set-up $
Movement
Batch 60V
Weight
Inspection
Drilling
Welding
Shaping
Assembly
Total
Answer:
$27,541
Explanation:
Calculation to Determine the activity cost
Activity Cost
Set-up $75.00
Movement:
Batch 60V $66
(Three batch moves *22.00 per batch)
Weight $750
(150 pounds*0.10 per pound*50)
Inspection $200
(Two sets of inspections*50*2.00 per unit)
Drilling $750
(3.00 per hole*five holes in each unit*50)
Welding $24,000
(6.00 per inch*80*50)
Shaping $800
(32.00 per hour*(30 minutes/60)*50)
Assembly $900
(18.00 per hour*1*50)
Total $27,541
Therefore the activity cost is $27,541
The following note transactions occurred during the year for Towell Company: Nov. 10 Towell issued a 90-day, 9% note payable for $8,000 to Hyatt Company for merchandise. Dec. 1 Towell signed a 120-day, 10% note at the bank for $12,000. Dec. 20 Towell gave Barr, Inc., a 60-day, 10%, $12,000 note for payment of account. Prepare the general journal entries necessary to adjust the interest accounts at December 31. Use 360 days for calculations and round to the nearest dollar.
Answer: See explanation
Explanation:
The general journal entries necessary to adjust the interest accounts at December 31 will be:
1. December 31:
Debit: Interest Expenses = $8,000 × 9% × 51/ 360 = $102
Credit: Interest payable = $102
(To accrue interest expenses for the note issued on November 10).
2. December 31:
Debit: Interest Expenses = $12,000 × 10% ×30/360 = $120
Credit: Interest payable = $120
(To accrue interest expenses for the note issued on December 1)
3. December 31:
Debit: Interest Expenses = $12,000 × 10% × 11/360 = $36.67
Credit: Interest payable = $36.67
(To accrue interest expenses for the note issued on December 20).
Assume that Simple Co. had credit sales of $280,000 and cost of goods sold of $165,000 for the period. It estimates that 2 percent of credit sales in uncollectible accounts when it uses the percentage of credit sales method and it estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $6,900 when it uses the aging method. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $400.
Required:
Prepare the journal entry to record the end-of-period adjustment for bad debts under the (a) percentage of credit sales method and (b) aging of accounts receivable method.
Answer:
A. Dr Bad Debt Expense $5,600
Cr Allowance for Doubtful Accounts $5,600
B. Dr Bad Debt Expense $6,500
Cr Allowance for Doubtful Accounts $6,500
Explanation:
A. Preparation of the journal entry to record the end-of-period adjustment for bad debts under
percentage of credit sales method
Dr Bad Debt Expense $5,600
Cr Allowance for Doubtful Accounts $5,600
($280,000 x .02 = 5600)
(Being to record bad debts under percentage of credit sales method)
B. Preparation of the journal entry to record the end-of-period adjustment for bad debts under the aging of accounts receivable method.
Dr Bad Debt Expense $6,500
Cr Allowance for Doubtful Accounts $6,500
($6,900 - $400 = 6500)
Some hoodlums who have been earning money by stealing copper pipes and cable and selling them to recyclers are driving around one evening when they spot an unattended strange-looking building sitting out in the middle of a field, break in, and steal all of the copper wire they can haul in their truck, disabling the VOR air navigation facility.
Required:
In addition to trespassing, breaking and entering, and burglary, have they committed any aviation-specific federal crimes? If so, identify each such crime(s) and describe the penalties.
Answer:
Yes they have 18 U.S. Code § 32 (a) Clause 3Explanation:
With aviation being such a sensitive field that requires a lot of oversight, Congress enacted rules to punish aviation crimes which means that such crimes fall under Federal jurisdiction and as this crime is a crime against an aviation facility, it is a Federal crime.
The crime in question here falls under US. Code 32 - Destruction of aircraft or aircraft facilities under subsection (a)3 which talks about damaging an air navigation facility and how this can endanger the safety of flights en route.
Their punishment would be either a fine, imprisonment of not more than five years or both.
You and your friends want to buy a condo at the beach to time share. Each of you has single peaked preferences with a most preferred value that you are willing to spend. These values are: Mabel, $10,000; Gertrude, $20,000; Myron, $30,000; Wilber, $40,000; and you, $50,000. The condo costs $150,000. Explain how to implement a uniform rule mechanism to allocate costs and shares.
Answer:
Individual Cost Shares to be enjoyed
Mabel $10,000 10000 / 150000 = 6.67%
Gertrude $20000 20000 / 150000 = 13.3%
Myron $30000 30000 / 150000 = 20%
Wilber $40000 40000 / 150000 = 26.6%
You $50000 50000 / 150000 = 33.3%
Explanation:
peaked preferences
Most preferred value to spend :
Mabel = $10,000
Gertrude = $20,000
Myron = $30,000
Wilber = $40,000
you = $50,000
cost of Condo = $150,000
Implementing a Uniform rule mechanism to allocate costs and shares
The uniform rule ; ∑ j∈I Uj (p) = Ω.
where Ω = fixed amount of resource
hence the summation of all allotment should = Ω ( $150,000 )
Number of friends = 5
cost of condo = $150,000
If divide equally each person will have to pay ; $150,000 / 5 = $30,000
Total money to be spent by friends = 10,000 + 20,000 + 30,000 + 40,000 + 50,000 = $150,000
Individual Cost shares to be enjoyed
Mabel $10,000 10000 / 150000 = 6.67∑%
Gertrude $20000 20000 / 150000 = 13.3%
Myron $30000 30000 / 150000 = 20%
Wilber $40000 40000 / 150000 = 26.6%
You $50000 50000 / 150000 = 33.3%
∑shares ≈ 100% ( 150,000 )
Quirch Inc. manufactures machine parts for aircraft engines. The CEO, Chucky Valters, was considering an offer from a subcontractor that would provide 2,400 units of product PQ107 for Valters for a price of $150,000. If Quirch does not purchase these parts from the subcontractor it must produce them in-house with the following unit costs: Cost per Unit Direct materials $31 Direct labor 19 Variable overhead 8 In addition to the above costs, if Quirch produces part PQ107, it would have a retooling and design cost of $9,800. The relevant costs of producing 2,400 units of product PQ107 internally are:______.
a. $149,000.
b. $129.800.
c. $150,000.
d. $164,200.
e. $148.300.
Answer:
a. $149,000
Explanation:
Calculation to determine what The relevant costs of producing 2,400 units of product PQ107 internally are
Relevant Costs = (2,400 x $31) + (2,400 x $19) + (2,400 x $8) + $9,800
Relevant Costs=$74,400+$45,600+$19,200+$9,800
Relevant Costs= $149,000
ThereforeThe relevant costs of producing 2,400 units of product PQ107 internally are $149,000
Anthony Thomas Candies (ATC) reported the following financial data for 2021 and 2020:
2021 2020
Sales $ 314,000 $ 290,000
Sales returns and allowances 8,000 4,700
Net sales $ 306,000 $ 285,300
Cost of goods sold:
Inventory, January 1 62,000 18,000
Net purchases 139,000 142,000
Goods available for sale 201,000 160,000
Inventory, December 31 61,000 62,000
Cost of goods sold 140,000 98,000
Gross profit $ 166,000 $ 187,300
The average days inventory for ATC (rounded) for 2021 is: (Round your intermediate calculations to two decimal places. Round your final answer to the nearest whole number.)
A. 171 days.
B. 222 days.
C. 231 days
D. Less than 100 days.
Answer:
D. Less than 100 days
Explanation:
Average days inventory = 365 / Inventory turnover rate
But
Inventory turnover rate = Cost of goods sold / Average inventory
Also,
Average inventory = (Beginning inventory + Ending inventory) / 2
= ($62,000 + $18,000) / 2
= $40,000
Inventory turnover rate = $201,000 / $40,000 = 5.025
Average days inventory = 365 / 5.025 = 72.64 days
9. Stabilization Suppose the US educational system improves, making workers more productive. If the federal reserve is trying to stabilize the price level in response, they should A. do nothing, because prices will not change anyhow. B. do nothing, because prices cannot be prevented from changing in the long run C. sell bonds in open market operations. D. lower the reserve requirement. E. increase the discount rate F. Raise taxes. G. Increase government spending.
Answer:
d
Explanation:
If workers become more productive, the supply curve shifts rightward. As a result prices would fall. In a bid to stabilise price, the federal reserve would conduct an expansionary monetary policy to increase money supply in the economy
Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing reserve requirement and open market purchase are ways of carrying out expansionary monetary policy
Increasing discount rate and selling bonds are examples of contractionary monetary policies. Contractionary monetary policy : these are policies taken to reduce money supply.
Raising tax is an example of contractionary fiscal policy
Increasing government spending is an example of expansionary fiscal policy
