Answer:
D. $15.00 per machine hour
Explanation:
The computation of the predetermined overhead rate for the recently completed year is seen below;
First, we will calculate the fixed overhead rate.
Fixed overhead rate = Estimated total fixed manufacturing overhead / Estimated machine - hours
Fixed overhead rate = $838,710 / 72,900
Fixed overhead rate = $11.50
Then,
Predetermined overhead rate = Fixed overhead rate + Variable overhead rate
Predetermined overhead rate = $11.50 + $3.50
Predetermined overhead rate for the recently completed year was closest to $15.00 per machine hour
If a company can implement cash management systems and save three days by reducing remittance time and one day by increasing disbursement time based on $2,000,000 in average daily remittances and $2,500,000 in average daily disbursements and its return on freed-up funds is 10%, what is the maximum that it should spend on the system
Answer: $850,000
Explanation:
The maximum amount that'll be spent on the system goes thus:
Additional collections will be:
= $2,000,000 × 3 days
= $6,000,000
Delayed disbursements will be,:
= $2,500,000 × 1 day
= $2,500,000
Then, the increment on funds will be:
= Additional collection + Delayed disbursement
= $6,000,000 + $2,500,000
= $8,500,000
Hence, maximum amount will be:
= 10% × $8,500,000
= $850,000
From 1990 to 2000, calculate the percentage change in Instructions: Enter your responses rounded to one decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Real GDP. % b. Real consumption. % c. Real government spending
Answer:
Note The full question is attached as picture below
1. Real consumption % change = ((Consumption in 2009 / Consumption in 2007) - 1) * 100
Real consumption % change = ((9847 / 10042) - 1) * 100
Real consumption change % = (0.981 - 1) * 100
Real consumption change% = -1.9%
2. Real investment % = ((Investment in 2009 / 2007) - 1) * 100
Real investment % = ((1898 / 2644) - 1) * 100
Real investment % = (0.718 - 1) * 100
Real investment % = -28.2%
3. Government spending % = ((Government spending 2009 / 2007) - 1)*100
Government spending % = ((3089 / 2914) - 1)*100
Government spending % = (1.06 - 1) * 100
Government spending % = 6%
In 2019, Teller Company sold 3,000 units at $600 each. Variable expenses were $420 per unit, and fixed expenses were $270,000. The same selling price, variable expenses, and fixed expenses are expected for 2020. What is Teller’s break-even point in units for 2020? g
Answer:
Break-even point in units= 1,500
Explanation:
Giving the following information:
Selling price= $600
Unitary variable cost= $420
Fixed cost= $270,000
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 270,000 / (600 - 420)
Break-even point in units= 1,500
On January 1, 2017, ARC Inc. issued 100 5-year bonds, with a face value of $1,000 each and a coupon rate of 10%, payable semiannually. The interest is paid on June 30 and December 31 of each year. The market rate of interest at the time that the bonds were issued was 13%, so that the bonds were sold for $892 each.1. Interest expense for the January 1–June 30 period was $_____.
2. Interest expense for the July1–December 31 period was $_____.
3. Book value of Bonds on June 30 was $_____.
4. Book value of Bonds on December 31 was $_____.
5. Interest payment on June 30 was $_____.
Answer:
ARC Inc.
1. Interest expense for the January 1–June 30 period was $__5,798___.
2. Interest expense for the July 1–December 31 period was $__5,850___.
3. Book value of Bonds on June 30 was $__89,998___.
4. Book value of Bonds on December 31 was $__90,848___.
5. Interest payment on June 30 was $__5,000___.
Explanation:
a) Data and Calculations:
January 1, 2017:
Face value of issued bonds = $100,000 ($1,000 * 100)
Coupon rate of interest = 10%
Effective rate of interest = 13%
Price of issued bonds = $89,200 ($892 * 100)
Discount on bonds = $10,800 ($100,000 - $89,200)
Interest payment = June 30 and December 31 (semiannually)
June 30:
Interest expense = $5,798 ($89,200 * 6.5%)
Cash payment = $5,000 ($100,000 * 5%)
Amortization of discount = $798
Value of bonds = $89,998 ($89,200 + $798)
December 31, 2017:
Interest expense = $5,850 ($89,998 * 6.5%)
Cash payment = $5,000 ($100,000 * 5%)
Amortization of discount = $850
Value of bonds = $90,848 ($89,998 + $850)
Gary is walking through his organization's buying process and has identified some additional steps that are needed in a B2B transaction. What would be included in those additional steps
Answer: order-routine specification
problem recognition
Explanation:
Business-to-business transactions occur when a business makes a transaction with another business. It should be noted that this takes place when the business is sourcing materials which will be used for their production process.
Since Gary is walking through his organization's buying process and has identified some additional steps that are needed in a B2B transaction, the additional steps should include the order-routine specification and the problem recognition.
Critical Chain Project Management (CCPM) attempts to keep the most highly demanded resource busy on critical chain activities, but not overloaded.
a. True
b. False
Answer:
True
Explanation:
Critical-Chain
This was introduced or originated by Eli Goldratt in 1997. Its aim is to challenges conventional project management approaches and absolute dependence on TOC principles. The idea of what to change or eliminated is the largely rooted behaviors that is common with the traditional project management practices. It is very multitasking anf it is the longest string of reliance that occur on the project.
Critical- Chain Approach
This approach simply covers project network as it ca be limited by both resource and technical reliance/dependencies. each type of limitations can create task reliance.
The Summary of Critical Chain Approach
1.) use Aggressive but Possible Times (ABPT) for task durations
2.) identify the critical chain by accounting for resource dependencies
3.) use buffer management to track project progress etc.
When companies use automated production processes, they tend to condense the three manufacturing costs into two categories. These categories are: direct and indirect materials. direct costs and indirect materials. indirect materials and conversion costs. direct materials and conversion costs.
Answer:
direct materials and conversion costs.
Explanation:
When companies use automated production processes, they tend to condense the three manufacturing costs into two categories which are direct materials and conversion costs.
This is because Automation does conversion on the Direct Materials which are visible and can be traced to product being manufactured.
Swifty Corporation purchased a truck at the beginning of 2020 for $109600. The truck is estimated to have a salvage value of $4100 and a useful life of 123000 miles. It was driven 18000 miles in 2020 and 26000 miles in 2021. What is the depreciation expense for 2020?
a. $37752
b. $22308
c. $16639
d. $15444
Answer:
Annual depreciation= $15,444
Explanation:
Giving the following information:
Purchase price= $109,600
Salvage value= $4,100
Useful life= 123,000
Miles driven 2020= 18,000
To calculate the depreciation expense, we will use the units-of-production method:
Annual depreciation= [(original cost - salvage value)/useful life of production in miles]*miles drive
Annual depreciation= [(109,600 - 4,100)/123,000]*18,000
Annual depreciation= 0.858*18,000
Annual depreciation= $15,444
Market efficiency is probably the most controversial concept in finance. Even recent winners of the Nobel Prize in Economics come down on opposite sides of the issue. Nonetheless, it is important for you to grapple with this idea. It has very important practical implications for investment decisions, including (especially) for your personal investment decision. In particular, should you pursue active or passive strategies
Answer:
Active strategies should be pursued when the market is more volatile, with larger fluctuations over a shorter period of time, that require a more active management of a portfolio, in order to take advantage of fast changing positions in different assets, and also in order to avoid possible losses due to staying in particular positions for too long.
Passive strategies is more long-term focused, and should be pursued when the economy is more stable. Passive strategies should be analyzed carefully before execution because once the passive investment is made, the idea is to keep the position for a long period of time instead of buying and selling constantly as in a active strategy.
On January 1, a machine with a useful life of 5 years and a salvage value of $15000 was purchased for $115000. What is the depreciation expense for year 2 under straight-line depreciation
Answer:
Annual depreciation (year 2)= $20,000
Explanation:
Giving the following information:
Purchase price= $115,000
Salvage value= $15,000
Useful life= 5 years
To calculate the annual depreciation under the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (115,000 - 15,000) / 5
Annual depreciation= $20,000
When Get the Glare Out needed some information about the potential market for its product, the marketing team looked to the Internet to find industry trends and at the market for eyewear products, which uses the same technology that is used in its self-darkening windshield. The type of information the marketing team was using is referred to as Multiple Choice surveys. focus groups. primary data. secondary data.
Answer:
secondary data.
Explanation:
Market research can be defined as a strategic technique which typically involves the process of identifying, acquiring and analyzing informations about a business. It involves the use of product test, surveys, questionnaire, focus groups, interviews, etc.
Secondary market research can be defined as a method designed to determine the demographics of a particular target market.
A secondary data can be defined as any form of data that has been obtained or collected earlier by someone else through primary sources for their own purpose and made readily available for other researchers to use. Thus, a secondary data is a type of data that has been previously obtained or collected.
In this scenario, the type of information the marketing team was using is referred to as secondary data because it looked to the Internet to find industry trends and at the market for eyewear products, which uses the same technology that is used in manufacturing its self-darkening windshield.
In conclusion, a secondary data is typically reliant or based on the primary source of information and as such it isn't a first hand experience.
In a standard cost accounting system, the entry to record purchase of raw materials on account for $13500 when the standard cost is $12620 includes:______.
a. debit to Raw Materials Inventory for 12,750, debit to Materials Price Variance for $750 and credit to Accounts Payable for $13,500.
B. debit to Materials Price Variance for S7S0 and credit to Accounts Payable for $750.
c. debit to Raw Materials Inventory for $13,500 and credit to Accounts Payable of $13,500.
d. debit to Raw Materials Inventory for $12,750 and credit to Accounts Payable of $12,750.
Answer:
a. Debit to raw material inventory for $12,750, debit to material price variance $750 and credit to account payable for $13,500.
Explanation:
Date Journal Entry Debit Credit
Raw Material Inventory $12,750
Material Price Variance $750
Accounts Payable $13,500
Ideally, a profit oriented firm desires to denominate bonds in a currency that: ________.
a. Exhibits a low interest rate and is expected to depreciate.
b. Exhibits a high interest rate and is expected to depreciate.
c. Exhibits a low interest rate and is expected to appreciate.
d. Exhibits a high interest rate and is expected to appreciate.
Answer: exhibits a low interest rate and is expected to depreciate.
Explanation:
Bonds are the debt securities which are issued by the governments or corporations, and usually have a lower risk and reward than stocks.
A profit oriented firm desires to denominate bonds in a currency that exhibits a low interest rate and is expected to depreciate.
what is the primary benefit people receive in exchange for paying premiums to an insurance company
Answer:
The insurance company will pay for covered expenses
With premium rates from insurance companies, the overall protection is much more guaranteed than a regular, and perhaps the insurance will cover more than regular insurance.
A benefit that people receive in exchange for paying premiums is that insurance company B.will pay for covered expenses.
What is insurance?The insurance can be regarded as a process of insuring one's property or life in case of danger or any future problems.
The insurance company pays you or someone you choose if something bad happens to you. If you have no insurance and an accident happens, you may be responsible for all related costs.
Therefore, option B is correct because, when people pay their premiums, the company will be available to covered expenses.
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Identify the simplifying assumptions usually made in net present value analysis.
a. AlI cash flows Other than the initial investment occur at the end of periods.
b. All cash flows generated by the investment project are immediately reinvested at a rate of return greater than the discount rate.
c. All cash flows generated by the investment project are immediately reinvested at a rate Of return equal to the discount rate,
d. All cash flows occur at the beginning of the periods,
e. The time value of money is ignored when evaluating investment proposals under the net present value analysis.
Answer:
a
c
Explanation:
net present value analysis is a capital budgeting method
It is used to analyse the profitability of an investment
A bond that pays interest semiannually has a price of $941.35 and a semiannual coupon payment of $26.00. If the par value is $1,000, what is the current yield
Answer:
5.52%
Explanation:
Calculation to determine the current yield
Current yield = ($26.00 × 2)/$941.35
Current yield=$52/$941.35
Current yield= .0552*100
Current yield= 5.52%
Therefore the Current yield is 5.52%
Contrary to popular opinion, CEOs of major U.S. companies come from a wide variety of private universities and state universities, not just a handful of well-publicized MBA programs. What does this fact tell you about sources of power and organizational politics
Answer: Power is earned
Explanation:
The fact that so many influential CEOs come from such a wide array of universities shows that they had to work to get to where they are today and were not simply handed positions because of the university they came from.
It shows that if one wants to succeed in business, their alma mater does not matter. They could be from an Ivy league college or from a state college in Mississippi, what matters is their determination to work hard and gain a good track record that will take them all the way to the top.
The specific pace and quota of work and tight surveillance indicate that company 1 has a(n) _______ culture.
Question options:
-traditional
-contingency
-androgynous
-mechanistic
-organic
Answer:
mechanistic
Explanation:
The mechanistic culture in an organization is one that works by strict rules, structure and guidelines. It is different from the organic culture that is more open and flexible. Mechanistic organizations are characterized by hierarchy and bureaucracy, specifying labour divisions for it's employees in a formal, close-knitted and "mechanistic" approach. mechanistic organizations can be found among older organizations such as universities, hospitals, government organizations etc. Organic organizations can be found among newer organizations such as tech companies.
In a mechanistic culture-based organization, the specific pace, quota of work and tight surveillance are indicator that the company practice such culture.
The mechanistic culture is usually adopted by organization because its works by strict rules, structure and guidelines.
Mechanistic organizations can be found among older organizations such as universities, hospitals, government organizations etc.
In conclusion, the specific pace and quota of work and tight surveillance indicate that company 1 has a mechanistic culture,
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A natural monopoly arises whenA. a single firm aggressively forces other competitors to exit and industry.B. a single firm has a monopoly over natural resources.C. two firms merge into a single firm in order to capture more of the market.D. a single firm can produce more cheaply than multiple firms due to a downward-sloping average total cost curve.
Answer:
D
Explanation:
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.
An example of a monopoly is a utility company
A natural monopoly occurs due to the high start-up costs or a large economies of scale.
Natural monopolies are usually the only company providing a service in a particular region
Characteristics of natural monopolies
they have a large fixed cost The firms have a low marginal costThey occur naturally through the free market. It does not occur by government regulation or any other forceNew educational study has proven that the practice of writing, erasing, and rewriting improves students' ability to process information, leading parents to steer away from pen use in favor of pencils.
a. True
b. False
In a sales contract, the passage of risk of loss from a seller to a buyer gives the buyer the right to insure the goods and the right to recover from third parties who damage them.
a. True
b. False
The statement - "In a sales contract, the passage of risk of loss from a seller to a buyer gives the buyer the right to insure the goods and the right to recover from third parties who damage them". Thus, option (a) is correct.
What is sales contract?A sales contract, customer orders, or contract for sale is a legal transaction in which a buyer purchases assets from a seller for an agreed-upon monetary value. It is an evident old practice of exchange that is currently controlled by statute law in many common law countries.
"In a sales contract, the passing of risk of loss from a seller to a buyer allows the buyer the opportunity to insure the products and the right to collect from third parties who destroy them,".
Therefore, it can be concluded that the statement mentioned above is true. Hence, option (A) is correct.
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the common sources of secondary data in tourism research are
Explanation:
Secondary data sources, such as industry statistics, surveys/censuses, and big data indicators, cover a wide array of topics that can be leveraged in tourism research..
pls Mark brainliest if it was helpfull
Amanda is playing a game of chance in which she rolls a number cube with sides numbered from to 1 to 6. The number cube is fair, so a side is rolled at random. This game is this: Amanda rolls the number cube once. She wins $1 if a 1 is rolled, $2 if a 2 is rolled, $3 if a 3 is rolled, and 4 if a 4 is rolled. She loses $0,50 if a 4, 5 or 6 is rolled.
(a) Find the expected value of playing the game.
(b) What can Elsa expect in the long run, after playing the game many times?
1) Elsa can expect to gain money. She can expect to win__dollars per roll.
2) Elsa can expect to lose money. She can expect to lose___dollars per roll.
3) Elsa can expect to break even (neither gain nor lose money).
Answer:
a. 0.75
b. elsa can expect to gain money. 0.75$
Explanation:
x = 1/6 = 0.166667
given an outcome of 1,
1$ win * 0.166667 = 0.166667
given an outcome of 2,
$2 win * 0.166667 = 0.33333
given an outcome of 3,
$3 win*0.166667 = 0.5
remember that if she has an out come of 4, 5 and 6 she loses 0.5 dollars
given an outcome of 4,
-$0.5 * 0.166667 = -0.083333
given an outcome of 5,
-$0.5 * 0.166667 = -0.083333
given an outcome of 6,
-$0.5 * 0.166667 = -0.083333
The expected value of playing the game = 0.166667+0.333333+0.5-0.083333-0.083333-0.083333
= 0.750001
expected value of plying game = 0.75
b. in the long run, after playing the game many times, Elsa can expect to gain money. she can expect to win 0.75$ per role. option 1
In eight years, when he is discharged from the Air Force, Steve wants to buy a $30,000 power boat. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount must Steve invest now to have the $30,000 at the end of eight years if he can invest money at:
Answer:
The correct answer is:
(1) $15,054
(2) $12,990
Explanation:
The required table is not given in the question. Please find below the attachment of the table.
Given:
Future value,
= $30,000
If discounting rate is 9%, the present value will be:
= [tex]Future \ value\times PV \ factor(9 \ percent, 8 \ years)[/tex]
= [tex]30000\times (\frac{1}{1.09} )^8[/tex]
= [tex]30000\times 0.5018[/tex]
= [tex]15,054[/tex] ($)
If discounting rate is 11%, the present value will be:
= [tex]Future \ value\times PV \ factor(11 \ percent, 8 \ years)[/tex]
= [tex]30000\times (\frac{1}{1.11} )^6[/tex]
= [tex]30000\times 0.433[/tex]
= [tex]12,990[/tex] ($)
Nick’s Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $475,000, have a fifteen-year useful life, and have a total salvage value of $47,500. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 240,000 Less operating expenses: Commissions to amusement houses $ 70,000 Insurance 45,000 Depreciation 28,500 Maintenance 30,000 173,500 Net operating income $ 66,500 Required: 1a. Compute the payback period associated with the new electronic games. 1b. Assume that Nick’s Novelties, Inc., will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games?
Answer:
a. 5 years
b. Yes they will because the payback period is 5 years.
Explanation:
a. Payback period
First calculate the annual cash inflow:
= Net income + Depreciation
= 66,500 + 28,500
= $95,000
The investment cost was $475,000
Payback period = Investment cost / Annual cash inflow
= 475,000 / 95,000
= 5 years
b. The company will purchase the games because they have a payback period of 5 years.
The DEF partnership reported net income of $130,000 for the year ended December 31, 20X8. According to the partnership agreement, partnership profits and losses are to be distributed as follows in the following order:
D Â Â Â Â Â Â Â Â Â Â Â Â EÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â F
Salaries               $25,000            $20,000        $15,000
Bonus on net income        10%                       -----                -----
Remainder            60%            30%         10%
Required:
How should partnership net income for 2008 be allocated to D, E, and F?
Answer:
The DEF Partnership
Allocation of Partnership Net Income for 2008:
D E F Total
Net income $130,000
Salaries $25,000 $20,000 $15,000 (60,000)
Bonus on net income 13,000 ----- ----- (13,000)
Remainder 34,200 17,100 5,700 (57,000)
Total allocation $72,200 $37,100 $20,700 $130,000
Explanation:
a) Data and Calculations:
Net income for the year ended December 31, 2008 = $130,000
Order of distribution of partnership profits and losses:
D E F
Salaries $25,000 $20,000 $15,000
Bonus on net income 10% ----- -----
Remainder 60% 30% 10%
Bonus on net income = $13,000 ($130,000 * 10%)
Remainder after salaries and bonus = $57,000 ($130,000 - $73,000)
D = $34,200 ($57,000 * 60%)
E = $17,100 ($57,000 * 30%)
F = $5,700 ($57,000 * 10%)
a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion
Answer: $2.5 billion
Explanation:
You need to first calculate the multiplier.
The multiplier is the amount that shows the effect of an increase in government spending on the aggregate demand of a country.
It is calculated as:
= 1 / ( 1 - MPC)
= 1 / ( 1 - 0.9)
= 10
Increase in aggregate demand = Government spending * multiplier
25 billion = G * 10
G = 25 billion / 10
= $2.5 billion
Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in the raw materials account was $22,500 and the ending balance was $41,000. Raw materials purchases during the month totaled $68,000. Manufacturing overhead cost incurred during the month was $113,500, of which $2,500 consisted of raw materials classified as indirect materials. The direct materials cost for May was:
Answer:
the direct material cost is $47,000
Explanation:
The computation of the direct material cost is shown below:
= Opening balance + purchase made - indirect material - closing balance
= $22,500 + $68,000 - $2,500 - $41,000
= $47,000
hence, the direct material cost is $47,000
The same should be considered and relevant too
On November 1st, Neiman Marcus at the Florida Mall signed a $100,000, 2%, eight-month note payable with all of the principal and interest due at maturity eight months later on July 1. Neiman Marcus' Store at Florida Mall should report interest payable at (year-end) December 31, in the amount of:
Good Note Company specializes in the repair of music equipment and is owned and operated by Robin Stahl. On November 30, 2016, the end of the current year, the accountant for Good Note Company prepared an unadjusted trial balance and an adjusted trial balance.Compare the unadjusted trial balance to the adjusted trial balance. Journalize the seven entries that adjusted the accounts at November 30. None of the accounts were affected by more than one adjusting entry. Refer to the Chart of Accounts for exact wording of account titles.Adjusted Trial BalanceGood Note CompanyADJUSTED TRIAL BALANCENovember 30, 2016 ACCOUNT TITLE DEBIT CREDIT1 Cash 38,250.002 Accounts Receivable 89,500.003 Supplies 2,400.004 Prepaid Insurance 3,850.00 5 Equipment 290,450.006 Accumulated Depreciation-Equipment 106,100.007 Automobiles 129,500.008 Accumulated Depreciation-Automobiles 62,050.009 Accounts Payable 26,130.0010 Salaries Payable 8,100.0011 Unearned Service Fees 9,000.0012 Common Stock 100,000.0013 Retained Earnings 224,020.0014 Dividends 75,000.0015 Service Fees Earned 742,800.0016 Salaries Expense 525,000.0017 Rent Expense 54,000.0018 Supplies Expense 8,850.0019 Depreciation Expense-Equipment 11,600.0020 Depreciation Expense-Automobiles 7,300.0021 Utilities Expense 14,100.0022 Taxes Expense 8,175.0023 Insurance Expense 10,400.0024 Miscellaneous Expense 9,825.0025 Totals 1,278,200.00 1,278,200.00Chart of AccountsCHART OF ACCOUNTSGood Note CompanyGeneral Ledger ASSETS11 Cash12 Accounts Receivable13 Supplies14 Prepaid Insurance16 Equipment17 Accumulated Depreciation-Equipment18 Automobiles19 Accumulated Depreciation-Automobiles LIABILITIES21 Accounts Payable22 Salaries Payable23 Unearned Service Fees EQUITY31 Common Stock32 Retained Earnings33 Dividends REVENUE41 Service Fees Earned EXPENSES51 Salaries Expense52 Rent Expense53 Supplies Expense54 Depreciation Expense-Equipment55 Depreciation Expense-Automobiles56 Utilities Expense57 Taxes Expense58 Insurance Expense59 Miscellaneous ExpenseJournalShaded cells have feedback.Compare the unadjusted trial balance to the adjusted trial balance. Journalize the seven entries that adjusted the accounts at November 30. None of the accounts were affected by more than one adjusting entry. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Good Note Company
Journal Entries:
Debit 23 Unearned Service Fees $9,000
Credit 41 Service Fees Earned $9,000
To record earned fees.
Debit 51 Salaries Expense $8,100
Credit 22 Salaries Payable $8,100
To record accrued salaries.
Debit 53 Supplies Expense $8,850
Credit 13 Supplies $8,850
To record used supplies.
Debit 54 Depreciation Expense-Equipment 11,600
Credit 17 Accumulated Depreciation-Equipment $11,600
To record depreciation expense for the period.
Debit 55 Depreciation Expense-Automobiles 7,300
Credit 19 Accumulated Depreciation-Automobiles $7,300
To record depreciation expense for the period.
Debit 56 Utilities Expense $1,200
Credit 21 Accounts Payable $1,200
To record accrued utilities expense.
Debit 58 Insurance Expense $10,400
Credit 14 Prepaid Insurance $10,400
To record expired insurance.
Explanation:
a) Data and Calculations:
Good Note Company
UNADJUSTED TRIAL BALANCE
November 30, 2016
ACCOUNT TITLE DEBIT CREDIT
1 Cash 38,250
2 Accounts Receivable 89,500
3 Supplies 11,250
4 Prepaid Insurance 14,250
5 Equipment 290,450
6 Accumulated Depreciation-Equipment 94,500
7 Automobiles 129,500
8 Accumulated Depreciation-Automobiles 54,750
9 Accounts Payable 24,930
10 Salaries Payable
11 Unearned Service Fees 18,000
12 Common Stock 100,000
13 Retained Earnings 224,020
14 Dividends 75,000
15 Service Fees Earned 733,800
16 Salaries Expense 516,900
17 Rent Expense 54,000
18 Supplies Expense
19 Depreciation Expense-Equipment
20 Depreciation Expense-Automobiles
21 Utilities Expense 12,900
22 Taxes Expense 8,175
23 Insurance Expense
24 Miscellaneous Expense 9,825
25 Totals 1,250,000 1,250,000
Good Note Company
ADJUSTED TRIAL BALANCE
November 30, 2016
ACCOUNT TITLE DEBIT CREDIT
1 Cash 38,250
2 Accounts Receivable 89,500
3 Supplies 2,400
4 Prepaid Insurance 3,850
5 Equipment 290,450
6 Accumulated Depreciation-Equipment 106,100
7 Automobiles 129,500
8 Accumulated Depreciation-Automobiles 62,050
9 Accounts Payable 26,130
10 Salaries Payable 8,100
11 Unearned Service Fees 9,000
12 Common Stock 100,000
13 Retained Earnings 224,020
14 Dividends 75,000
15 Service Fees Earned 742,800
16 Salaries Expense 525,000
17 Rent Expense 54,000
18 Supplies Expense 8,850
19 Depreciation Expense-Equipment 11,600
20 Depreciation Expense-Automobiles 7,300
21 Utilities Expense 14,100
22 Taxes Expense 8,175
23 Insurance Expense 10,400
24 Miscellaneous Expense 9,825
25 Totals 1,278,200.00 1,278,200
Analysis of Adjustments:
23 Unearned Service Fees $9,000 41 Service Fees Earned $9,000
51 Salaries Expense $8,100 22 Salaries Payable $8,100
53 Supplies Expense $8,850 13 Supplies $8,850
54 Depreciation Expense-Equipment 11,600 17 Accumulated Depreciation-Equipment $11,600
55 Depreciation Expense-Automobiles 7,300 19 Accumulated Depreciation-Automobiles $7,300
56 Utilities Expense $1,200 21 Accounts Payable $1,200
58 Insurance Expense $10,400 14 Prepaid Insurance $10,400
