Answer:
LIFO is a form of inventory costing that assumes that more recent stock is sold first and early stock sold last. FIFO is the opposite of this and believes earlier stock is sold first and later stock is sold last.
Weighted average uses a weighted price for all available stock and specific identification uses the exact cost of the inventory.
a. Results in the highest cost of goods sold. ⇒ LIFO
This is LIFO because the closing stock that is subtracted from the cost of goods sold will be earlier stock and as costs are rising, it will be lower than the purchases.
b. Yields the highest net income. ⇒ FIFO
Because FIFO gives a lower Cost of goods sold as opposed to LIFO, it gives a higher income.
c. Has the lowest tax expense because of reporting the lowest net income.⇒ LIFO
Reports lowest income due to high cost of goods sold.
d. Better matches current costs with revenues. ⇒ LIFO
LIFO uses the current inventory which would reflect the current cost of inventory so it matches current costs with revenue.
e. Precisely matches the costs of items with the revenues they generate. ⇒ Specific Identification.
Uses the exact cost of the inventory so precisely matches costs.
g The declaration, record, and payment dates in connection with a cash dividend of $59,400 on a corporation's common stock are July 9, August 31, and October 1. Journalize the entries required on each date.
Answer:
Dr Retained earnings $59,400
Cr Dividend payable $59,400
August 31 No entry
October 1
Dr Dividend payable $59,400
Cr Cash $59,400
Explanation:
Preparation of the journal entries required on each date.
July 9
Dr Retained earnings $59,400
Cr Dividend payable $59,400
August 31 No entry
October 1
Dr Dividend payable $59,400
Cr Cash $59,400
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers.
Record on page 10 of the journal
Mar. 2 Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,300.
3 Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,000.
4 Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of the goods sold was $33,200.
5 Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $19,400.
12 Received check for amount due from Equinox Co. for sale on March 2.
14 Sold merchandise to customers who used American Express cards, $13,700. The cost of the goods sold was $8,350.
16 Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $16,000.
18 Issued credit memo for $4,800 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,900.
Record on page 11 of the journal
Mar. 19 Sold merchandise on account to Vista Co., $8,250, terms FOB shipping point, 2/10, n/30. Added $75 to the invoice for prepaid freight. The cost of the goods sold was $5,000.
26 Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.
28 Received check for amount due from Vista Co. for sale of March 19.
31 Received check for amount due from Empire Co. for sale of March 4.
31 Paid Fleetwood Delivery Service $5,600 for merchandise delivered during March to customers under shipping terms of FOB destination.
Apr. 3 Paid City Bank $940 for service fees for handling MasterCard and American Express sales during March.
15 Paid $6,544 to state sales tax division for taxes owed on sales.
Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles.
Chart of Accounts
CHART OF ACCOUNTS
Amsterdam Supply Co.
General Ledger
ASSETS
110 Cash
121 Accounts Receivable-Empire Co.
122 Accounts Receivable-Equinox Co.
123 Accounts Receivable-Targhee Co.
124 Accounts Receivable-Vista Co.
125 Notes Receivable
130 Inventory
131 Estimated Returns Inventory
140 Office Supplies
141 Store Supplies
142 Prepaid Insurance
180 Land
192 Store Equipment
193 Accumulated Depreciation-Store Equipment
194 Office Equipment
195 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
216 Salaries Payable
218 Sales Tax Payable
219 Customer Refunds Payable
221 Notes Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
521 Delivery Expense
522 Advertising Expense
524 Depreciation Expense-Store Equipment
525 Depreciation Expense-Office Equipment
526 Salaries Expense
531 Rent Expense
533 Insurance Expense
534 Store Supplies Expense
535 Office Supplies Expense
536 Credit Card Expense
539 Miscellaneous Expense
710 Interest Expense
Journal
Shaded cells have feedback.
Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles.
How does grading work?
PAGE 10
JOURNAL
ACCOUNTING EQUATION
Answer:
Accounts Receivable (Dr.) $18,900
Sales (Cr.) $18,900
Cost of good sold (Dr.) $13,300
Inventory (Cr.) $13,300
Cash (Dr.) $12,031
Sales (Cr.) $11,350
Sales tax payable (Cr.) $681
Cost of goods sold (Dr.) $7,000
Inventory (Cr.) $7,000
Accounts receivable (Dr.) $27,500
Sales (Cr.) $27,500
Cost of goods sold (Dr.) $16,000
Inventory (Cr.) $16,000
Cash (Dr.) $18,711
Cash discount (Dr.) $189
Accounts receivable (Cr.) $18,900
Explanation:
Cash discount is the discount given to customers who pay before the credit terms. This is available to those customers who buy goods on credit. This is recorded as expense.
Cash discount : $18,900 * 0.01 = $189
The following is TRUE about Inventory: A. Firms increase inventory because more inventory means more movement of materials B. Firms increase inventory because there is a risk of interruptions in the flow of production due to unreliable or highly variable process outcomes C. Firms increase inventory because more inventory sitting for longer periods of time present more opportunities for damage, errors, rework, theft, and obsolescence D. Firms increase inventory because there is an opportunity cost to holding inventory E. Firms increase inventory because the more we spend on inventory, the more we need to spend on other inventory-related expenditures
Answer:
B) Firms increase inventory because there is a risk of interruptions in the flow of production due to unreliable or highly variable process outcomes
Explanation:
Suppose that the inflation rate is 2% and the real terminal value of an investment is expected to be $82,500 in 4 years. Calculate the nominal terminal value of the investment at the end of year 4.
Answer: $89300.65
Explanation:
Based on the information given in the question, the nominal terminal value of the investment at the end of year 4 will be calculated thus:
Inflation rate = 2%
Real terminal value of investment = $82,500
Normal terminal value of investment will be:
= $82500 × (1+2%)⁴
= $82500 × (1 +0.02)⁴
= $82500 × 1.02⁴
= $89300.65
The term city-state refers to:_________.
a. A walled urban center and its agricultural hinderlands
b. The political institution that ruled over all ancient kingdoms
c. The capital of a large empire run by a monarch
d. An association of mutually dependent cities
A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate. The cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00. If the restaurant orders the optimal (EOQ) number of boxes each time an order is placed, then the number of orders placed during the year would be
Answer:
xr72*444
Explanation:
for grey try r etc etc uhtgderyuûyffdeeerrrgtree
At December 31, 2020, Suffolk Corporation had an estimated warranty liability of $105,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 20%. Compute the amount Suffolk should report as a deferred tax asset at December 31, 2020.
Answer:
Deferred tax asset = $21000
Explanation:
Given the warranty liability = $105000
Effective tax rate = 20%
The deferred tax asset can be calculated by calculating the effective tax from the warranty liability. Therefore, just multiply the effective tax rate to the warranty liability.
Deferred tax asset = Effective tax rate x Warranty liability
Deferred tax asset = 20% x $105000
Deferred tax asset = $21000
A contra account will not:_____.
a. be listed immediately after its related account.
b. be potentially classified as a contra-assets or contra-liabilities.
c. always has a normal debit balance.
d. has a normal balance which is the opposite of its related account.
Answer:
a
Explanation:
first one is the best answer
Jerry Rice and Grain Stores has $4,320,000 in yearly sales. The firm earns 1.8 percent on each dollar of sales and turns over its assets 3.5 times per year. It has $139,000 in current liabilities and $372,000 in long-term liabilities.
a. What is its return on stockholders’ equity?
b. If the asset base remains the same as computed in part a, but total asset turnover goes up to 4.00, what will be the new return on stockholders’ equity? Assume that the profit margin stays the same as do current and long-term liabilities.
Answer:
a. Return on Stockholders’ Equity = 10.75%
b. New return on stockholders' equity = 12.29%
Explanation:
a. What is its return on stockholders’ equity?
This can be calculated as follows:
Net Income = Sales * Profit Margin = $4,320,000 * 1.8% = $77,760
Total Assets = Sales / Total Assets Turnover = $4,320,000 / 3.50 = $1,234,285.71
Total Liabilities = Current Liabilities + Long term liabilities = $139,000 + $372,000 = $511,000
Total Stockholders’ Equity = Total Assets - Total Liabilities = $1,234,285.71 - $511,000 = $723,285.71
As a result, we have:
Return on Stockholders’ Equity = (Net Income / Total Stockholders Equity) * 100 = ($77,760 / $723,285.71) * 100 = 10.75%
b. If the asset base remains the same as computed in part a, but total asset turnover goes up to 4.00, what will be the new return on stockholders’ equity? Assume that the profit margin stays the same as do current and long-term liabilities.
This can be calculated as follows:
New Sales = Total Assets * New Assets Turnover Ratio = $1,234,285.71 * 4 = $4,937,142.86
New Net Income = New sales * Profit Margin = $4,937,142.86 * 1.8% = $88,868.57
As a result, we have:
New return on stockholders' equity = (New Net Income / Total Stockholders Equity) * 100 = ($88,868.57 / $723,285.71) * 100 = 12.29%
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next months budget appear below:
Selling price per unit $29 per unit
Variable expenses $16 per unit
Fixed expenses $8,600 per month
Unit sales 1,010 units per month
Required:
a. Compute the company’s margin of safety.
b. Compute the company’s margin of safety as a percentage of its sales.
Answer and Explanation:
a. The calculation of the margin of safety is
Sales price per unit $ 29.00
Variable cost per unit ($16.00)
Contribution per unit $13.00
Fixed expenses $8,600.00
Break even sales in units ($8,600 ÷ 13) 662
Break even sales in dollars = (662 ×$29) $19,198
Actual Sales (1,010 × $29) $29,290
Margin of safety $10,092
b. The margin of safety in percentage is
= $10,092 ÷ $29,290
= 34.46%
A company borrowed $19,000 by signing a 180-day promissory note at 10%. The maturity value of the note is: (Use 360 days a year.)
Answer:
$950
Explanation:
Calculation to determine what The maturity value of the note is:
Maturity value of the note=$19000*10%*180/360
Maturity value of the note=$950
Therefore The maturity value of the note is: $950
Alliances are often used to pursue business-level goals, but they may be managed at the corporate level. Explain why this portfolio approach to alliance management would make sense.
Answer:
mainly because of information
Explanation:
This approach makes sense mainly because of information. Business-level goals are all about performance and profit. Corporate is made up of individuals that are invested in the company itself. They have all the information on what the company wants to accomplish, long-term strategies being used, available resources, etc. Most of this information is closed off to the rest of the company and only available to those in Corporate. This information is what leads to informed decisions which allow for the best, most efficient, and most profitable choices to be made.
Cross-training occurs: Group of answer choices when employers need to enhance the effectiveness of training by reducing employees' job duties. when e-learning is used as the primary mode for delivering the content of a training program. when the training takes place outside the employing organization. when people are trained to do more than one job.
Answer:
When people are trained to do more than one job
Explanation:
Cross-training
This is simply defined as a type of training usually in diverse areas so as to improve the overall performance
It uses the good qualities or effectiveness of each training method and combining them to remove the limitations of each method.The origin of cross-training is the said to be triathlon which came about in the 1970s.
Its aims specifically is to combine exercise in which five components of fitness cardiorespiratory endurance, muscular strength, muscular endurance, flexibility, body composition.
Cross training uses more than one type of training such as
•Fartlek training on Tuesdays
• Circuit training on Thursdays
• Weight training on Saturdays
Advantages of Cross training
1. It is very good if an individual is involved.
2. It has more than one activity
3. It is an activity that is made up of different types of events etc.
What percentage of authorized shares was issued by Coca-Cola at December 31, 2015, and by PepsiCo at December 26, 2015
Answer:
December 26
Explanation:
Because Pepsi Co is buy
In a sandwich shop, 3 workers are able to make 45 sandwiches in an hour during the lunch rush. When a 4th worker is added, the team is able to make 57 sandwiches. Calculate the marginal product of adding the 4th worker.
Answer:
12
Explanation:
Calculation to determine the marginal product of adding the 4th worker
Using this formula
MP=ΔTPΔL
Let plug in the formula
ΔTP=57−45
ΔTP=12
Therefore The marginal product of adding the 4th worker is 12 sandwiches.
lannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $270. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the current margin of safety in dollars for Flannigan Company
Answer:
$2,200,000
Explanation:
Margin of safety means by how much sales can fall before a firm starts making a loss.
Margin of safety = Current Sales - Break even sales
where,
Break even sales = Fixed Cost ÷ Contribution margin ratio
= $800,000 ÷ 0.40
= $2,000,000
therefore,
Margin of safety = $4,200,000 - $2,000,000
= $2,200,000
There is a phenomena that worker/capital output has not increased in line with the increased performance capabilities of information technology. What is this phenomena called?
Answer:
The productivity paradox
Explanation:
productivity paradox (can be regarded as the peculiar observation which is made in business analyst process when there is more investment as regards information technology.
It should be noted that the productivity paradox is a phenomena that worker/capital output has not increased in line with the increased performance capabilities of information technology. What is this phenomena
When a firm uses the LIFO inventory cost flow assumption: ____________
a) ending inventory will be greater than if FIFO were used.
b) cost of goods sold will be the same as if FIFO were used.
c) net income will be greater than if FIFO were used.
d) better matching of revenue and expense is achieved than under FIFO.
Answer:
Answer is D. better matching of revenue and expense is achieved than under FIFO.
Explanation:
The inventory cost flow assumption describes the flow of product cost: from the inventory and to cost of goods sold. When a firm uses the LIFO inventory cost flow assumption: better matching of revenue and expense is achieved than under FIFO.
Howard Inc. had prepaid rent of $79,000 and $88,000 at the end of Year 1 and Year 2, respectively. During Year 2, Howard recorded $244,000 in rent expense in its income statement. Cash outflows for rent in Year 2 were:
Answer:
the Cash outflows for rent in Year 2 is $253,000
Explanation:
The computation of the Cash outflows for rent in Year 2 is shown below:
Prepaid rent at year 2 $88,000
Add: rent expense $244,000
Less: prepaid rent in year 1 -$79,000
Cash outflows for rent in year 2 $253,000
Hence, the Cash outflows for rent in Year 2 is $253,000
Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company’s stock currently is valued at $45.00 per share. The company needs to raise new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $36.00 per share. Larry worries about the value of his investment.
a. Larry's current investment in the company is __________If the company issues new shares and Larry makes no additional purchase, Larry's investment will be worth _____________
b. This scenario is an example of __________ . Larry could be protected if the firm's corporate charter includes a provision.
c. If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become ___________
Answer and Explanation:
a. The current investment is
= 2,000 × $45
= $90,000
The investment should be worth of
= (20000 × 45)+ (5000 × 36)
= ($900,000 + $180,000)
= $1,080,000
Now price per share is
= $1.080.000 ÷ 25,000
= 43.2
so, new value of larry shares is
= 43.2 × 2000
= $86,400
b. Dilution and preemptive right
c The investment value should be
= 90,000 + 500 × 36
= 90,000 + 18,000
= 108,000
Suppose that $1 lottery tickets have the following probabilities and values: 1 in 5 to win a free ticket (worth $1), 1 in 100 to win $5, 1 in 100,000 to win $1000, and 1 in 10 million to win $1 million. What is the expected value of a lottery ticket to the consumer
Answer:
$0.36
Explanation:
Expected value of the lottery ticket = (p1 x a1) + (p2 x a2) + (p3 x a3) + (p4 x a4)
p1 = probability of winning $1 = 1/5 = 0.2
a1 = $1
p2 = probability of winning $5 = 1/100 = 0.01
a2 = $5
p3 = probability of winning $1000 = 1/100,000 = 0.00001
a3 = $1000
p4 = probability of winning $1 million = 1/10,000,000 = 0.0000001
a4 = $1 million
(0.2 x 1) + (0.01 x 5) + (0.00001 x 1000) + (1,000,000 x 0.00001) = $0.36
Poorer developing countries which often produce and export primary commodities tend to face unfair _____________________ in relationship to rich countries that produce manufactured (capital) goods. Question 15 options:
Answer:
Poorer developing countries which often produce and export primary commodities tend to face unfair _______exchange values______________ in relationship to rich countries that produce manufactured (capital) goods.
Explanation:
Unfair exchange value means that rich countries that use the primary commodities of poorer developing countries to produce manufactured goods, especially capital goods, sell the manufactured goods at values that are not real or too exorbitant. This practice contributes to the unfairness of international trade. It also means that the prices at which the primary commodities are bought form the poorer countries are too low when compared with the prices of the manufactured capital goods sold by rich countries to poorer countries.
On December 31, the company estimates future sales refunds to be $900. As of that date, the company has an unadjusted debit balance in Accounts Receivable of $25,000 and an unadjusted credit balance of $300 in Sales Refunds Payable.
Requried:
Write down the necessary adjusting entry.
Answer:
Date Account titles and Explanation Debit Credit
Dec 31 Sales return and allowance $600
Sales refund payable $600
($900 - $300)
(To record the expected refund of sales)
Brett wants to sell throw blankets for the holiday season at a local flea market. Brett purchases the throws for $15 and sells them to his customers for $35. The rental space is fixed fee of $1,800 for the season. Assume there is no leftover value for unsold units. If he orders 220 and demand is 160, what is the payoff
Answer: $500
Explanation:
The payoff will be calculated thus:
Revenue = Unit demanded × Selling price = 160 × $35 = $5600
Expenses will be:
= Total purchase expense + Rent
= (220 × $15) + $1800
= $3300 + $1800
= $5100
Payoff will now be:
= Revenue - Expense.
= $5600 - $5100
= $500
Jake lives in Detroit and runs a business that sells boats. In an average year, he receives $722,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. He owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Jake does not operate this boat business, he can work as a paralegal, receive an annual salary of $21,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. No other costs are incurred in running this boat business.
Identify each of Felix’s costs in the following table as either an implicit cost or an explicit cost of selling guitars.
Implicit Cost Explicit Cost
The wholesale cost for the guitars that Felix pays the manufacturer
The rental income Felix could receive if he chose to rent out his showroom
The salary Felix could earn if he worked as a paralegal
The wages and utility bills that Felix pays
Complete the following table by determining Felix’s accounting and economic profit of his guitar business. Profit (Dollars)Accounting Profit Economic Profit
Answer:
Explicit Cost
The wholesale cost for the guitars that Felix pays the manufacturerThe wages and utility bills that Felix paysImplicit Cost
The salary Felix could earn if he worked as a paralegal The wages and utility bills that Felix paysAccounting profit = $32,000
Economic profit = $9,000
Explanation:
Accounting profit= total revenue - explicit cost
Total revenue =price x quantity sold
Explicit cost includes the amount expended in running the business.
They include rent , salary and cost of raw materials
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
The net profit margin ratio can mathematically be broken down as:______.
a. Tax impact x Capital structure impact x Net Profit / Sales
b. Tax impact x Capital structure impact x EBITDA / Sales
c. Tax impact x Capital structure impact x Gross Profit / Sales
d. Tax impact x Capital structure impact x EBIT / Sales
Answer:
d. Tax impact x Capital structure impact x EBIT / Sales
Explanation:
The net profit margin ratio could be computed by dividing the net income from the sales and the net income is come when the expenses are deducted from revenues
Also the capital structure is the combination of equity, preferred stock, debt.
So mainly it is broken into tax impact, capital structure impact and net profit margin ratio
Therefore the option d is correct
In the following MRP planning schedule for Item J, indicate the correct net requirements, planned order receipts, and planned order releases to meet the gross requirements. Lead time is one week.
WEEK NUMBER
ITEM J 0 1 2 3 4 5
Gross requirements 67 43 63
On-hand 46
Net requirements
Planned order receipt
Planned order release
Answer:
Planned order receipts
Item 3 - 55
Item 4 - 74
Planned order releases
Item 2 - 55
Item 3 - 74
Explanation:
Planned order receipts are the requirement for each item based on demand. Planned order releases is the finished goods processing time. When finished goods are ready, they are placed at warehouse for order dispatch.
__________aggregate customers' opinions related to products or services that they have purchased and then suggest them to others with the same interest.
Answer:
Recommendation websites
Explanation:
Recommendation websites aggregate customers' opinions related to products or services that they have purchased and then suggest them to others with the same interest.
These websites make use of customer data based on what they have purchased in the past (product or service) to present to them new/similar products.
A popular application of the__________, which is a major business-to-business (B2B) e-commerce model, is e-procurement.
Answer:
seller-side marketplace model
Explanation:
B2B (business-to-business) is a marketing strategy that deals with meeting the needs of other businesses, by selling products or services to the organizations for resale to other consumers, used in production of goods or for the operation of an organisation.
B2B (business-to-business) model focuses on facilitating sales transactions between businesses.
Under the B2B, the producer sells its products directly to other businesses such as wholesalers or retailers and not the end consumers.
A seller-side marketplace model is a type of business transaction that involves selling goods to the customers of an organization.
One of popular application of the seller-side marketplace model, which is a major business-to-business (B2B) e-commerce model, is e-procurement of goods through the use of internet which eliminates the option of physical buying or procurement.
Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $10,600. On September 9, the customer unexpectedly pays the $10,600 balance. Record the cash collection on September 9
Answer:
1. Debit Accounts recievable $10,600
Credit Allowance for uncollectable amounts $10,600.
2. Debit Cash $10,600
Credit Accounts receivable $10,600
Explanation:
Preparation of the journal entries to Record the cash collection on September 9.
Based on the information given the appropriate journal entries to Record the cash collection on September 9 will be:
September 9
1. Debit Accounts recievable $10,600
Credit Allowance for uncollectable amounts $10,600
2. Debit Cash $10,600
Credit Accounts receivable $10,600
