please do you mean 1 unit for safety stock or 100 units, will solve for both
Answer:when safety stock =1, Reorder point= 601 units
when safety stock =100, Reorder point= 700 units
Explanation:
Reorder Point (ROP), also called reorder level, is the point of inventoryset by a busness in which it replenishes its stock of items.
given:
Average demand= 200
lead time = 3
when safety stock =1
Reorder point= (Average demand X Delivery lead time ) + Safety stock
= (200 x 3 ) +1 = 601 units
when safety stock = 100
Reorder point= (Average demand X Delivery lead time ) + Safety stock
= (200 x 3 ) +100 = 700 units
FIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:
Date Transaction Number
of Units Per Unit Total
Apr. 3 Inventory 48 $150 $7,200
8 Purchase 96 180 17,280
11 Sale 64 500 32,000
30 Sale 40 500 20,000
May 8 Purchase 80 200 16,000
10 Sale 48 500 24,000
19 Sale 24 500 12,000
28 Purchase 80 220 17,600
June 5 Sale 48 525 25,200
16 Sale 64 525 33,600
21 Purchase 144 240 34,560
28 Sale 72 525 37,800
Required:
1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.
Dunne Co.
Schedule of Cost of Goods Sold
FIFO Method
For the Three Months Ended June 30
Purchases Cost of Goods Sold Inventory
Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost
Apr. 3 $ $
Apr. 8 $ $
Apr. 11 $ $
Apr. 30
May 8
May 10
May 19
May 28
June 5
June 16
June 21
June 28
June 30 Balances $ $
2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account.
Record sale
Record cost
3. Determine the gross profit from sales for the period.
$
4. Determine the ending inventory cost as of June 30.
$
5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?
Answer:
Dunne Co.
Schedule of Cost of Goods Sold
FIFO Method
For the Three Months Ended June 30
Purchases Cost of Goods Sold Inventory
Date Description Quantity Unit Cost Total Cost Sales
Apr. 3 Inventory 48 $150 $7,200
Apr. 8 Purchase 96 180 17,280
Apr. 11 Sale 64 500 32,000
Apr. 30 Sale 40 500 20,000
May 8 Purchase 80 200 16,000
May 10 Sale 48 500 24,000
May 19 Sale 24 500 12,000
May 28 Purchase 80 220 17,600
June 5 Sale 48 525 25,200
June 16 Sale 64 525 33,600
June 21 Purchase 144 240 34,560
June 28 Sale 72 525 37,800
June 30 Total 448 360 $92,640 $184,600
June 30 Balances 88 $240 $21,120
2. Determination of total sales and cost of goods sold and Journal Entries:
Debit Accounts Receivable $184,600
Credit Sales Revenue $184,600
To record the sales of goods on account for the period.
Debit Cost of Goods Sold $92,640
Credit Inventory $92,640
To record the cost of goods sold for the period.
3. Income Statement for determining the gross profit:
Sales Revenue $184,600
Cost of goods sold $92,640
Gross profit $91,960
4. Determination of the ending inventory cost of June 30:
Ending Inventory units = 88
Cost per unit (FIFO) = $240
Total = $21,120
5. The ending inventory would be lower if the ending inventory was valued using the Last-in, First-out (LIFO) method. The purchase price was increasing instead. Using LIFO means that ending inventory would be valued at the cost of the purchases in earlier months because of the assumption with LIFO that goods sold are from the last purchases instead of the earlier purchases.
Explanation:
The most widely used presentation software program is Microsoft PowerPoint. You can produce a professional and memorable presentation using this program if you plan ahead and follow important design guidelines.
1. What text and background should you use in a darkened room?
A. Dark text on a light background
B. Dark text on a dark background
C. Light text on a dark background
2. How can you customize existing templates?
A. Eliminate boldface and italics
B. Adjust the color scheme
C. Add "visual cliches"
D. Add a company logo
E. Select different fonts
Answer:
1. C. Light text on a dark background
2. B. Adjust the color scheme
D. Add a company logo
E. Select different fonts
Explanation:
In order to produce a professional and memorable presentation using Microsoft Powerpoint program, the design guidelines should be applied in certain situations.
The text and background one should use in a darkened room is "Light text on a dark background"
Also, the correct way one can customize existing templates is to do the following:
1. Adjust the color scheme
2. Add a company logo
3. Select different fonts
Design specifications reflecting customer requirements for a product are known as:________
a) control limits
b) capability indices
c) natural variability
d) tolerances
Answer:
d) Tolerances.
Explanation:
This is seen to directly reflect on total range of the customer satisfactory choices of the said product. It is also known according to product research and customer satisfaction on choices to conventionally deal properly with the variation of manufacturing processes to meet the requirements of product quality. Cases that bring up things like customer development in product customization has also been generally accepted that customer requirements also have acceptable tolerance range. Top business moguls are seen to most times leverage on these requirements which include tolerance, customers are more likely to get their desired product.
Suppose that Dunkin Donuts reduces the price of its regular coffee from $2 to $1 per cup, and as a result, the quantity sold per day increased from 10 to 40. Over this price range, the price elasticity of demand for Dunkin Donuts’ regular coffee is:
Answer:
PED = -6
Explanation:
The PED or price elasticity of demand for a product measures the responsiveness of a product's demand to the changes in the price of the product. The PED is calculated as follows,
PED = % change in Quantity demanded / % change in price
PED = [(40 - 10) / 10] / [(1 - 2) / 2]
PED = -6
A PED of -6 represents that quantity demanded is highly price elastic and a negative sign means that it is a normal good.
You are planning to save for retirement over the next 25 years. To do this, you will invest $880 per month in a stock account and $480 per month in a bond account. The return of the stock account is expected to be an APR of 10.8 percent, and the bond account will earn an APR of 6.8 percent. When you retire, you will combine your money into an account with an APR of 7.8 percent. All interest rates are compounded monthly. How much can you withdraw each month from your account assuming a withdrawal period of 20 years
Answer:
$14,143.86 can be withdrawn each month from the account for 20 years.
Explanation:
To determine this, the first step is to use the formula for calculating the future value (FV) of ordinary annuity to calculate the FV of both stock and bond as follows:
Calculation of Future Value of Stock
FVs = M × {[(1 + r)^n - 1] ÷ r} ................................. (1)
Where,
FVs = Future value of the amount invested in stock after 25 years =?
M = Monthly investment = $880
r = Monthly interest rate = 10.8% ÷ 12 = 0.9%, or 0.009
n = number of months = 25 years × 12 months = 300
Substituting the values into equation (1), we have:
FVs = $880 × {[(1 + 0.009)^360 - 1] ÷ 0.009}
FVs = $880 × 1,522.3445923122
FVs = $1,339,663.24
Calculation of Future Value of Bond
FVd = M × {[(1 + r)^n - 1] ÷ r} ................................. (1)
Where,
FVd = Future value of the amount invested in bond after 25 years =?
M = Monthly investment = $480
r = Monthly interest rate = 6.8% ÷ 12 = 0.566666666666667%, or 0.00566666666666667
n = number of months = 25 years × 12 months = 300
Substituting the values into equation (1), we have:
FVd = $480 × {[(1 + 0.00566666666666667)^300 - 1] ÷ 0.00566666666666667}
FVd = $480 × 784.895879465925
FVd = $376,750.02
Calculation of the amount that can be withdrawn monthly for 20 years
To calculate this, the formula for calculating the present value of an ordinary annuity is used as follows:
PV = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] …………………………………. (3)
Where;
PV = Combined present values of stock and bond investments after retirement = FVs + FVb = $1,339,663.24 + $376,750.02 = $1,716,413.26
P = Monthly withdrawal = ?
r = Monthly interest rate = 7.8% ÷ 12 = 0.65%, or 0.0065
n = number of months = 20 years * 12 months = 240
Substitute the values into equation (3) and solve for P to have:
PV = P × [{1 - [1 ÷ (1+r)]^n} ÷ r]
$1,716,413.26 = P × [{1 - [1 ÷ (1 + 0.0065)]^240} ÷ 0.0065]
$1,716,413.26 = P × 121.353915567094
P = $1,716,413.26 / 121.353915567094
P = $14,143.86
Therefore, $14,143.86 can be withdrawn each month from the account for 20 years.
Mojo Mining has a bond outstanding that sells for $2,201 and matures in 21 years. The bond pays semiannual coupons and has a coupon rate of 7.38 percent. The par value is $2,000. If the company's tax rate is 40 percent, what is the aftertax cost of debt
Answer:
the after tax cost of debt is 3.90 %.
Explanation:
The Cost of debt is the rate required on the bond and this is calculated as follows :
PV = - $2,201
n = 21 × 2 = 42
PMT = ($2,000 × 7.38 %) ÷ 2 = $73.80
P/YR = 2
FV = $2,000
r = ?
Using a Financial Calculator, the Pre-tax Cost of debt, r is 6.4963% or 6.50 % (2 decimal places)
After tax cost of debt = Interest rate × (1 - tax rate)
= 6.50 % × (1 - 0.40)
= 3.90 %
Which type of disclosure must be signed by the buyer and the seller in a nonresidential transaction?
Answer: Request to use designated sales associate representation.
Explanation:
The options for the question are:
a. Single agent
b. Consent to transition
c. No brokerage relationship
d. Request to use designated sales associate representation
The type of disclosure must be signed by the buyer and the seller in a nonresidential transaction is the request to use designated sales associate representation.
In this disclosure, both the buyer and the seller must sign a disclosure which will state their assets and determine if the threshold is met.
A stock priced at $61 has three-month calls and puts with an exercise price of $55 available. The calls have a premium of $5.28, and the puts cost $0.56. The risk-free rate is 1.1%. If the put options are mispriced, what is the profit per option assuming no transaction costs?
Answer:
The Profit per option = $1.431
Explanation:
Given that:
Current stock price S = $61
Exercise Strike price X = $55
Value of call option C = $5.28
Puts Costs = $0.56
risk-free rate = (1.1% × 3)/12
risk - free rate = 0.275%
If the put options are mispriced, what is the profit per option assuming no transaction costs
Present value of the strike price [tex]X = \dfrac{X}{(1+r)}[/tex]
[tex]X = \dfrac{55}{(1+\dfrac{0.275}{100})}[/tex]
[tex]X = \dfrac{55}{(1+0.00275)}[/tex]
[tex]X = \dfrac{55}{(1.00275)}[/tex]
X = $54.849
The formula that hold for the put option can be expressed as:
P = Present value of the strike price X + C - S
P = $(54.849 + 5.28 - 61)
P = $60.129 - $61
P = - $0.871
Thus, the put option = - $0.871
This implies that the Put option is out of cash since it is negative.
Now, The Profit per option = put costs - (- put option)
The Profit per option = 0.56 - ( - 0.871)
The Profit per option = $1.431
Internal or External Acquisitions:
No Opportunity Costs
The Van Division of MotoCar Corporation has offered to purchase 180,000 wheels from the Wheel Division for $40 per wheel. At a normal volume of 500,000 wheels per year, production costs per wheel for the Wheel Division are as follows:
Direct materials $15
Direct labor 11
Variable overhead 6
Fixed overhead 18
Total $50
The Wheel Division has been selling 500,000 wheels per year to outside buyers at $60 each. Capacity is 700,000 wheels per year. The Van Division has been buying wheels from outside suppliers at $56 per wheel.
(a) Calculate the net benefit (or cost) to the Wheel Division of accepting the offer from the Van Division.
(b) Calculate the net benefit (or cost) to Motocar Corp. if the Wheel Division accepts the offer from the Van Division.
Answer:
A. Profit per wheel = $8
B. Total benefit to Motor Corp. = $4,320,000
Explanation:
Requirement A
We can calculate the net benefit/cost to the wheel division of accepting the offer from van division by deducting all the variable cost from the selling price offered by van division
Selling price = $40
Direct material = $15
Direct labor = $11
Variable Overhead = $6
Profit per wheel = $8
Requirement B Net benefit to Motor car corp.
Increased the profit of wheel division by accepting the offer
180,000 x $8 =$1,440,000
Savings of van division by placing an order to wheel division
180,000 x $16(w) = $2,880,000
Total benefit to Motor Corp. = $1,440,000 + $2,880,000
Total benefit to Motor Corp. = $4,320,000
Working
Outside supplier price - Price offered by van division
$56 - $40
$16
Pear Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below:
Alternative A Alternative B
Materials costs $ 40,000 $ 56,000
Processing costs $ 37,000 $ 37,000
Equipment rental $ 13,000 $ 13,000
Occupancy costs $ 15,000 $ 22,000
Are the materials costs and processing costs relevant in the choice between alternatives A and B?
Multiple Choice
A) Only processing costs are relevant
B) Only materials costs are relevant
C) Both materials costs and processing costs are relevant
D) Neither materials costs nor processing costs are relevant
Answer: B) Only materials costs are relevant
Explanation:
When choosing between alternatives, the main decider is the difference in costs. The costs that are different are the ones to decide whether a company takes on a project as it will signal the financial viability of a project.
In both alternatives, the Processing costs remain at $37,000 therefore the alternative chosen is irrelevant to these costs as they will be incurred regardless of the company's choice. They are therefore not to be considered.
Material costs on the other hand vary by the alternatives and so should be considered.
Suppose purchasing power parity holds. If the price level in the United States is 100 dollars per good and the price level in Japan is 250 yen per good, then the nominal exchange rate is ________ yen per dollar.
Answer: 2.5 Yen
Explanation;
The Economic theory of Purchasing Power Parity when held, believes that prices of goods in different countries are the same if their exchange rates are taken into account.
For the above therefore it means that the price of the good is the same in both the US and Japan barring exchange rates.
Exchange rate is;
$100 = ¥250
$1 = 250/100
$1 = ¥2.5
Exchange rate is 2.5 yen per dollar.
Knowing she has sold 5,000 pairs, assume the company wants to launch a Black Friday promotion, where she would discount her shoes by 10%. How many more shoes would she have to sell to justify this promotion
Revenue: $500,000
Shoes: $250,000
Shoe boxes: $1,000
Advertising: $500
Rent: $1,000
Depreciation: $25
Knowing she has sold 5,000 pairs, assume the company wants to launch a Black Friday promotion, where she would discount her shoes by 10%. How many more shoes would she have to sell to justify this promotion?
A. 25.13% more shoes
B. 20.08% more shoes
C. None of the above, but I could calculate this with the information I am given.
D. None of the above, I cannot calculate this with the information I am given.
Answer:
Option A. 25.13% more shoes
Explanation:
Cost Benefit analysis would be useful here to acknowledge what percentage of shoe sales is required to justify the promotion.
The Benefit drawn before 10% promotion proposal:
Revenue: $500,000
Shoes: ($250,000)
Shoe boxes: ($1,000)
Advertising: ($500)
Rent: ($1,000)
Depreciation: ($25)
Profit $247,475
The Benefit drawn before 10% promotion proposal:
Revenue: $450,000
Shoes: ($250,000)
Shoe boxes: ($1,000)
Advertising: ($500)
Rent: ($1,000)
Depreciation: ($25)
Profit $197,475
Now we can calculate how much additional sales must be required to justify the promotion.
Sales Increase Required = (Initial Profit - Before Promotion) / Profit After Promotion
Sales Increase Required = ($247,475 - $197,475) / $197,475
Sales Increase Required = 25.31% which is close to option 1, hence Option 1 is correct here.
Promotion is termed as the activity that involves the spreading or publicizing of information regarding the products and services. It is a part of marketing that involves publicity and public relations between the customers.
The correct option is A. 25.13% more shoes
Cost Benefit analysis would be useful here to acknowledge what percentage of shoe sales is required to justify the promotion.
The Benefit drew before 10% promotion proposal:
Revenue: $500,000
Shoes: ($250,000)
Shoe boxes: ($1,000)
Advertising: ($500)
Rent: ($1,000)
Depreciation: ($25)
Profit $247,475
The Benefit drew before 10% promotion proposal:
Revenue: $450,000
Shoes: ($250,000)
Shoe boxes: ($1,000)
Advertising: ($500)
Rent: ($1,000)
Depreciation: ($25)
Profit $197,475
Now we can calculate how much additional sales must be required to justify the promotion.
Sales Increase Required = [tex]\frac{\text{Initial Profit - Before Promotion}}{\text{Profit After Promotion}}[/tex]
Sales Increase Required = [tex]\frac{\$247,475-\$197,475}{\$197,475}[/tex]
Sales Increase Required = 25.31% which is close to option 1, hence Option 1 is correct here.
To know more about the promotional activities, refer to the link below:
https://brainly.com/question/15869831
A company had the following purchases during its first year of operations: Purchases January: 18 units at $128 February: 28 units at $138 May: 23 units at $148 September: 20 units at $158 November: 18 units at $168 On December 31, there were 58 units remaining in ending inventory. These 58 units consisted of 10 from January, 12 from February, 14 from May, 12 from September, and 10 from November. Using the specific identification method, what is the cost of the ending inventory?
Answer:
$8,584
Explanation:
Cost of ending inventory can be calculated by multiplying the remaining units of the given month by their purchase cost in the following month
DATA
Total remaining units n ending inventory = 58 units
10 from January at $128
12 from February at $138
14 from May at $148
12 from September at $158
10 from November at $168
Calculation
January = 10 x $128 = $1,280
February = 12 x $138 = $1,656
May = 14 x $148 = $2,072
September = 12 x $158 = $1,896
November = 10 x $168 = $1,680
Cost of ending inventory = $8,584
Manufacturing overhead—multiple application bases Staley Toy Co. makes toy flutes. Two manufacturing overhead application bases are used; some overhead is applied on the basis of machine hours at a rate of $5.60 per machine hour, and the balance of the overhead is applied at the rate of 240% of direct labor cost.
Required:
a. Calculate the cost per unit of October production of 4,200 toy flutes that required
1. Raw materials costing $490.
2. 21 direct labor hours costing $357.
3. 36 machine hours.
b. At the end of October, 3,870 of these toy flutes had been sold. Calculate the ending inventory value of the toy flutes still in inventory at October, 31.
Answer:
a. $ 0.45
b. $148.50
Explanation:
Production Cost Schedule for 4,200 toy flutes
Raw materials costing $490.00
Direct Labor $357.00
Overheads ($5.60 × 36) $201.60
Overheads ($357 × 240%) $856.80
Total Cost $1,905.40
Cost per unit = Total Cost / Total Number of Units produced
= $1,905.40 / 4,200
= $ 0.45
Closing Inventory = Units Left × Cost per unit
= (4,200 - 3,870) × $ 0.45
= 330 × $ 0.45
= $148.50
The Cutting Department at Blanc Company had beginning work in process inventory of 4,000 units, transferred out 9,000 units, and had 2,000 units in ending work in process inventory. The number of units started into production by the Cutting Department during the month is
Answer:
The number of units started into production is 7,000.
Explanation:
Number of units started into production = Units transferred out + units of ending work in process - units of beginning work in process
= 9,000 + 2,000 - 4,000
= 7,000
The standard deviation of a portfolio: Multiple Choice is a measure of that portfolio's systematic risk. is a weighted average of the standard deviations of the individual securities held in that portfolio. measures the amount of diversifiable risk inherent in the portfolio. serves as the basis for computing the appropriate risk premium for that portfolio. can be less than the weighted average of the standard deviations of the individual securities held in that portfolio.
Answer:
sorry i forgot
Explanation:
In an attempt to bring about a change in the organization, what do you think might happen to The Learning Focus if Nemeroff fired all the existing writers and replaced them with new writers
Answer:
If all existing writers are replaced with new writers there could be a number of issues as the existing writers had experience and were use to of the type of writing required, they understand the nature of the reader. The new writers might fail to satisfy the old readers as they will be unaware of the taste the readers want and like to read. If learning focus Nemeroff fired all the existing writers the above described issues may appear.
Explanation:
If all existing writers are replaced with new writers there could be a number of issues as the existing writers had experience and were use to of the type of writing required, they understand the nature of the reader. The new writers might fail to satisfy the old readers as they will be unaware of the taste the readers want and like to read. If learning focus Nemeroff fired all the existing writers the above described issues may appear.
A simple random sample of 20 observations is derived from a normally distributed population with a known standard deviation of 3.2. You may find it useful to reference the z table.
a. Is the condition that X−X− is normally distributed satisfied?
Yes
No
b. Compute the margin of error with 95% confidence. (Round intermediate calculations to at least 4 decimal places. Round "z" value to 3 decimal places and final answer to 2 decimal places.)
c. Compute the margin of error with 90% confidence. (Round intermediate calculations to at least 4 decimal places. Round "z" value to 3 decimal places and final answer to 2 decimal places.)
d. Which of the two margins of error will lead to a wider interval?
The margin of error with 95% confidence.
The margin of error with 90% confidence.
Answer:
1. It is satisfied
2. 1.4
3. 1.18
4. 95% confidence is wider
Explanation:
1. It is normally distributed since n<30
2. Margin of error with 95% confidence
= Alpha = 1 - 0.95
= O.05
Alpha/2 = 0.025
Z(0.025) = 1.960
Margin of error = z(1.960)*SD/√n
= 1.960*(3.2/√20)
= 1.960 x 0.7156
= 1.4025
Approximately 1.4
3. At 90%
Alpha = 1 -0.9
= 0.10
Alpha/2 = 0.05
Z(0.05) =1.645
E = 1.645 x 3.2/√20
= 1.645 x 0.7176
= 1.177
Approximately 1.18
4. From the calculations in 2 and 3 it is obvious that the margin of error with 95% confidence interval is wider.
rane Company had the following assets on January 1, 2017.
Item Cost Purchase Date Useful Life (in years) Salvage Value
Machinery $69,580 Jan. 1, 2007 10 $0
Forklift 29,400 Jan. 1, 2014 5 0
Truck 32,736 Jan. 1, 2012 8 2,944
During 2017, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $11,760. The truck was discarded on December 31.
Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2016.
Answer:
Journal entries are prepared below
Explanation:
Journal entries required are given as follows
Jan. 1 (To record retirement of machinery)
Debit Credit
Accumulated depreciation-equipment $69,580
Equipment $69,580
June. 30 (To record the depreciation expense on forklift)
Debit Credit
Depreciation expense 2940
Accumulated depreciation-equipment 2940
Working
Annual depreciation = $29,400 / 5 years = $5880
depreciation for 6 months = $5880 x 6/12 = $2940
June. 30 (To record sale of forklift)
Debit Credit
Cash 11760
Accumulated depreciation-equipment(w) 20580
Equipment 29400
Gain on disposal of plant assets 2940
Working
Accumulated depreciation = 5880 x 3.5 years
Dec. 31 (To record depreciation expense on truck)
Debit Credit
Depreciation expense 3724
Accumulated depreciation-equipment 3724
Working
Annual depreciation on truck = ($32,736- $2,944) / 8 years = $3724
Depreciation for 2017 = $3724
Dec. 31 (To record discarding of the truck)
Debit Credit
Salvaged materials 2,944
Accumulated depreciation-equipment 22344
Loss on disposal of plant assets 7448
Equipment 32,736
Working
Accumulated depreciation = 3724 x 6 years = 22,344
Denver Company, a calendar year corporation, had the following actual income before income tax expense and estimated effective annual income tax rates for the first two quarters in year x8: quarter income before tax estimated tax rate first $100k 30% second $140k 24% Denver's income tax expense in its interim income statement for the second quarter should be:
Answer:
Denver Company
Income Tax Expense for the second quarter:
Pre-tax quarter income = $140,000
Estimated tax rate = 24%
Tax Expense = $140,000 x 24%
= $33,600
Explanation:
a) Data:
Quarter income before tax estimated tax rate
first $100k 30%
second $140k 24%
b) Denver's quarter second income tax expense is the product of the pretax income for the second quarter and the estimated income tax rate for the quarter. The resulting calculation shows the estimated income tax expense that has to be settled by Denver. If it is not settled in the quarter second period, it has to be carried forward to the next quarter as a liability under the heading, Income Tax Payable.
On July 1, Shady Creek Resort borrowed $320,000 cash by signing a 10-year, 11.5% installment note requiring equal payments each June 30 of $55,480. What amount of interest expense will be included in the first annual payment
Answer:
$36,800
Explanation:
The total amount of interest expense included in the first annual principal
= Principal's balance × yearly interest rate
= $320,000 × 11.5%
= $36,800
The principal's balance after the first payment is
= $320,000 - $36,800
= $283,200
The interest expense included in the second payment is
$283,200 × 11.5%
= $32,568
Elaine takes out a $100,000 mortgage on December 1, 1997. Elaine will repay the mortgage over 20 years with level monthly payments at an effective annual interest rate of 8%. The first payment is due January 1, 1998. After making her 120th payment, Elaine does not make any new payments for the entire next year. Elaine starts making revised monthly payments, of amount P, beginning January 1, 2009. The amount P is such that Elaine will pay off the loan in the original, 20-year term—that is to say, her last payment will be due December 1, 2017. Determine P.
Answer:
I prepared an amortization schedule using an excel spreadsheet. The original monthly payment was $836.44. After the 120th payment, the remaining principal balance was $68,940.64. Since she didn't pay anything for 1 year, the new principal balance will be $68,940.64 x (1 + 8%) = $74,455.89
I prepared another amortization schedule for the remaining 9 years, and the monthly payment is $969.32. She will pay off the loan in 108 months.
Facial Cosmetics provides plastic surgery primarily to hide the appearance of unwanted scars and other blemishes. During 2021, the company provides services of $402,000 on account. Of this amount, $52,000 remains uncollected at the end of the year. An aging schedule as of December 31, 2021, is provided below.
Age Group Amount Estimated Percent
Receivable Uncollectible
Not yet due $ 32,000 4 %
0-30 days past due 10,200 6 %
31–60 days past due 7,200 12 %
More than 60 days past due 2,600 30 %
Total $ 52,000
Required:
1. Calculate the allowance for uncollectible accounts.
2. Record the December 31, 2021, adjustment, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $400 (debit).
3. On April 3, 2022, a customer’s account balance of $500 is written off as uncollectible. Record the write-off.
4. On July 17, 2022, the customer whose account was written off in requirement 3 unexpectedly pays $100 of the amount but does not expect to pay any additional amounts. Record the cash collection.
Answer: Please see explanation for answers
Explanation:
Age Group Amount Estimated Percent Estimated Amount
Receivable Uncollectible Uncollectible
Not yet due $ 32,000 4 % $1,280
0-30 days past due 10,200 6 % $612
31–60 days past due 7,200 12 % $864
More than 60 days past due 2,600 30 % $780
Total $ 52,000 $3536
Calculation
1) Estimated Amount Uncollectible = Amount Receivable x Estimated Percent Uncollectible =
4% x 32,000= $1,280
6% x 10,200=$612
12% x 7,200=$864
30% x2600=$780
Total = $3,536
The allowance for uncollectible accounts = $3,536
2) Journal to Record the December 31, 2021, adjustment for a debit of $400
Estimated Amount Uncollectible =$3,536
Adjusted = $3536 + debit $400=$3,936
Date Account Debit Credit
Dec 31, 2021, Bad debts Expense $3,936
Allowance for uncollectible accounts $3,936
3) Journal to Record the write-off of $500
Date Account Debit Credit
April 3, 2022, Allowance for uncollectible
accounts $500
Accounts receivable $500
4a)Journal to reinstate the account previously wrtten off On July 17, 2022
Date Account Debit Credit
July 17, 2022, Accounts receivable $100
Allowance for uncollectible accounts $100
4b)Journal to record collection of cash
Date Account Debit Credit
July 17, 2022, Cash $100
Accounts receivable $100
A Journal Entry refers to simply a summary of the debits and also credits of the transaction entry to the Journal. When A Journal entries are important to the transaction because they allow us to sort our transactions into manageable data.
Age Group Amount Estimated Percent Estimated Amount
Receivable Uncollectible Uncollectible
Not yet due $ 32,000 4 % $1,280
0-30 days past due 10,200 6 % $612
31–60 days past due 7,200 12 % $864
More than 60 days past due 2,600 30 % $780
Total $ 52,000 $3536
The formula apply Then we Estimated the Amount Uncollectible is =
Amount Receivable x Estimated Percent *Uncollectible =
4% x 32,000= $1,280
6% x 10,200= $612
12% x 7,200= $864
30% x2600= $780
Then the Total is = $3,536
The allowance for uncollectible accounts = $3,536
Journal Entry
2) Journal to Record the December 31, 2021, adjustment for a debit of $400
Estimated Amount Uncollectible =$3,536
Adjusted = $3536 + debit $400=$3,936
Date Account Debit Credit
Dec 31, 2021, Bad debts Expense $3,936
Allowance for uncollectible accounts $3,936
3) Journal to Record the write-off of $500
Date Account Debit Credit
April 3, 2022, Allowance for uncollectible
accounts $500
Accounts receivable $500
4a)Journal to reinstate the account previously written off On July 17, 2022
Date Account Debit Credit
July 17, 2022, Accounts receivable $100
Allowance for uncollectible accounts $100
4b)Journal entry to the record collection of cash
Date Account Debit Credit
July 17, 2022, Cash $100
Accounts receivable $100
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https://brainly.com/question/8913038
Sam was out hunting in the woods one day when he stumbled upon a baby fox. Sam was able to capture the fox and brought him home. He went and bought the fox a cage, feeding dishes, a leash, and a name tag. He decided to call the fox Rocky, and made sure to include a phone number on the tag in case he was lost. He took Rocky for a walk, but Rocky did not seem to like the leash around its neck. Sam's wife Ellie did not seem to care for the fox. A week later, Rocky escaped from his cage and wandered away. That same day Harold saw the fox wandering on his property, but was unable to catch it. Eventually, Rocky returned to the woods. Who owns the fox?
a. Sam
b. No one
c. Harold
d. Sam and Ellie
e. Ellie
Answer:
No one
Explanation:
This is because no one legally owned him and the fox escaped anyways.
With regard to consideration in a sales contract, the UCC differs from the common law in that:_______
A) terms of a sales contract may be modified without additional consideration.
B) consideration is not required in sales contracts
C) terms in a sales contract may be modified as long as additional consideration is provided.
D) consideration exchanged must be equal or very closely equal in sales contracts.
Answer:
A) terms of a sales contract may be modified without additional consideration.
Explanation:
Generally speaking, common law applies to everybody in an equal manner, i.e. the law is the same for everyone. While UCC rules vary depending if the parties involved are merchants or not. UCC has two standards, one that applies to merchants and another one that applies to everyone else.
Common law applies to all contracts that are not covered by UCC rules. UCC rules only apply to the sale of goods and this doesn't include money or securities. Under UCC rules, new consideration is not a requirement to modify an existing contract. E.g. a buyer places an order for 3,000 units, but the seller only has 2,000 units available. The seller can send the 2,000 units and if the buyer accepts them, a new contract is formed.
Suppose that Mexico experienced a very severe period of inflation in 1972. As prices in Mexico rose, the demand in the foreign exchange market for Mexican pesos:
Answer:
demand for pesos would fall and supply would rise. their value would decrease as a result
Explanation:
Inflation is a persistent rise in general price level.
When there is high inflation in a country, the demand for the currency would fall because the value of the currency is low. this fall in demand coupled with the excess supply of the currency would lead to a fall in the value of the currency.
Logan Corporation issued $800,000 of 8% bonds on October 1, 2006, due on October 1, 2011. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Logan Corporation closes its books annually on December 31.
Instructions
(a) Prepare the amortization schedule (effective interest method) through October 1, 2007.
(b) Prepare the adjusting entry for December 31, 2007. Use the effective-interest method.
(c) Compute the interest expense to be reported in the income statement for the year ended December 31, 2007.
Answer:
a)
period interest interest discount amortized bond's
payment expense on BP discount carrying value
0 49,320.60 750,679.40
1 32,000 37,533.97 43,786.63 5,533.97 756,213.37
2 32,000 37,810.67 37,975.96 5,810.67 762,024.04
3 32,000 38,101.20 31,874.76 6,101.20 768,125.24
4 32,000 38,406.26 43,786.63 6,406.26 774,531.50
b)
December 31, 2017, accrued interest on bonds payable
Dr Interest expense 19,050.60
Cr Interest payable 16,000
Cr Discount on bonds payable 3,050.60
c)
total interest expense year 2007:
($37,533.97/2) + $37,810.67 + ($38,101.20/2) = $18,776.99 + $37,810.67 + $19,050.60 = $75,638.26
Explanation:
the market price of the bonds:
$800,000 / 1.05¹⁰ = $491,130.60
$32,000 x 8.1109 (PV annuity factor, 4%, 10 periods) = $259,548.80
market price = $750,679.40
discount on bonds payable $49,320.60
discount amortization first payment = (750,679.40 x 0.05) - 32,000 = 5,533.97
discount amortization second payment = (756,213.37 x 0.05) - 32,000 = 5,810.67
discount amortization third payment = (762,024.04 x 0.05) - 32,000 = 6,101.20
discount amortization fourth payment = (768,125.24 x 0.05) - 32,000 = 6,406.26
Discount stores that try to keep prices as low as possible are more likely to function using ________ operations.
Answer: self service
Explanation:
Discount stores that try to keep prices as low as possible are more likely to function using self service operations.
Self-Service Operations is quite a straightforward concept whereby the individuals will have to serve themselves. An example of such is discount houses that deals with clothing.
Burpee Company sells seeds to garden stores. Sales are expected to be $2,038,635 in January, $2,581,891 in February and $2,913,307 in March. Burpee sets their prices so that they earn an average 32% gross profit on sales revenue. What is budgeted cost of goods sold for the first quarter (January, February and March)?
Answer:
Total COGS= $5,123,006.44
Explanation:
Giving the following information:
Sales:
January= $2,038,635
February= $2,581,891
March= $2,913,307
Burpee sets their prices so that they earn an average 32% gross profit on sales revenue.
We need to calculate the cost of goods sold:
January= 2,038,635*0.68= 1,386,271.8
February= 2,581,891*0.68= 1,755,685.88
March= 2,913,307*0.68= 1,981,048.76
Total COGS= $5,123,006.44
Simon Company’s year-end balance sheets follow.
At December 31 2017 2016 2015
Assets
Cash $26,403 $29,364 $29,991
Accounts receivable, net 73,552 52,436 40,392
Merchandise inventory 96,214 70,676 43,017
Prepaid expenses 8,255 7,944 3,467
Plant assets, net 230,047 214,124 189,133
Total assets $434,471 $374,544 $306,000
Liabilities and Equity
Accounts payable $107,101 $64,564 $40,392
Long-term notes payable secured by
mortgages on plant assets 82,497 84,422 66,273
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 82,373 63,058 36,835
Total liabilities and equity $434,471 $374,544 $306,000
Required:
a. Compute the current ratio for the year ended 2017, 2016, and 2015.
b. Compute the acid-test ratio for the year ended 2017, 2016, and 2015.
Answer:
A.Current ratio
2017 191%
2016 248%
2015 289%
B.Acid Test Ratio
2017 101%
2016 139%
2015 183%
Explanation:
A.Computation of the current ratio for the year ended 2017, 2016, and 2015.
Using this formula
Current Ratio =Current Assets / Current Liabilities
2017 2016 2015
Cash $26,403 $29,364 $29,991
Accounts receivable, net
73,552 52,436 40,392
Merchandise inventory 96,214 70,676 43,017
Prepaid expenses 8,255 7,944 3,467
a.Current asset
204,424 160,420 116,867
b.Current Liabilities
Accounts payable $107,101 $64,564 $40,392
Let plug in the formula
(a) / (b) Current Ratio 191% 248% 289%
Therefore the Current ratio are:
2017 191%
2016 248%
2015 289%
B.Computation for acid-test ratio for the year ended 2017, 2016, and 2015.
Using this formula
Acid Test Ratio=Current Assets / Current Liabilities
2017 2016 2015
Cash $26,403 $29,364 $29,991
Accounts receivable, net
73,552 52,436 40,392
Prepaid expenses 8,255 7,944 3,467
a. Current asset
108,210 89,744 73,850
b. Current liabilities
Accounts payable $107,101 $64,564 $40,392
Let plug in the formula
(a) / (b)Acid Test Ratio 101% 139% 183%
Therefore the Acid Test Ratio are:
2017 101%
2016 139%
2015 183%
