Indigo Incorporated factored $135,100 of accounts receivable with Sweet Factors Inc. on a without-recourse basis. Sweet assesses a 3% finance charge of the amount of accounts receivable and retains an amount equal to 7% of accounts receivable for possible adjustments. Prepare the journal entry for Indigo Incorporated and Sweet Factors to record the factoring of the accounts receivable to Sweet.

Answers

Answer 1

Answer:

Indigo Incorporated Journal entrie

Dr Cash 121,590

Dr Due from Factor 9,457

Dr Loss on Sale of Receivable 4,053

Cr Accounts Receivable 135,100

Sweet Factors Inc

Dr Account Receivable 135,100

Cr Due to Customer 9,457

Cr Finance Revenue 4,053

Cr Cash 121,590

Explanation:

Indigo Incorporated Journal entries

Dr Cash 121,590

Dr Due from Factor 9,457

Dr Loss on Sale of Receivable 4,053

Cr Accounts Receivable 135,100

Sweet Factors Inc

Dr Account Receivable 135,100

Cr Due to Customer 9,457

Cr Finance Revenue 4,053

Cr Cash 121,590

Due from Factor = 7% x $135,100 = $9,457

Loss on Sale of Receivables = 3% x $135,100= $4,053


Related Questions

You should meet with your academic adviser at least once a __________.
Group of answer choices

Answers

Answer:

Once a Semester

Explanation:

Advisors can help you decide if you want to minor in something, and what the requirements are. They can ensure you're odds of graduating in four years is on track, or give you special permissions to take certain classes.

Now consider the case in which the manufacturer offers a marginal unit quantity discount for the plywood. The first 20,000 square feet of any order are sold at $1 per square foot, the next 20,000 square feet are sold at $0.98 per square foot, and any quantity larger than 40,000 square feet is sold for $0.96 per square foot. What is the optimal lot size for Prefab given this pricing structure? How much cycle inven

Answers

Answer:

Explanation:

We can use the following method to solve the given problem

We are given following

Annual demand,

D = 20000*12

D = 240,000 sqft

Fixed order cost, is given as

S = $ 400

Considering the unit cost, is given as

C = $ 1

Holding cost, H = 1*20% = $ 0.2

EOQ = sqrt(2DS/H)

= √(2*240000*400/0.2)

= 30,984 sq ft

This is higher than 20,000 and less than 40,000 sq ft. For this reason, the applicable price for this quantity is $ 0.98

For C = $ 0.98, holding cost, H = 0.98*20% = $ 0.196

Revised EOQ = sqrt(2*240000*400/0.196) = 31,298 sq ft

Total annual cost of EOQ policy = D*C + H*Q/2 + S*D/Q

= 240000*0.98 + 0.196*31298/2 + 400*240000/31298

= $ 241,334.5

Now consider the next level of price, C = $ 0.96

Holding cost, H = 0.96*20% = $ 0.192

EOQ = sqrt(2*240000*400/0.192)

= 31633 sqft

This amount is will not be feasible for this price, because it requires a minimum order of 40000 sqft.

Therefore, Q = 40,000

Total annual cost = 240000*0.96 + 0.192*40000/2 + 400*240000/40000

Total annual cost = $ 236,640

Total annual cost is lowest for order quantity of 40,000 sq ft.

1) Optimal lot size = 40,000 sq ft.

2) the annual cost of this policy

= $ 236,640

3) the cycle inventory of plywood at Prefab = Q/2 = 40000/2

At prefeb= 20,000 sq ft

4) let's assume the manufacturer sells all plywood at $ 0.96, then

Holding cost, H = 0.96*20%

H= $ 0.192

EOQ = sqrt(2*240000*400/0.192)

EOQ = 31633 sqft

Total annual cost = 240000*0.96 + 0.192*31633/2 + 400*240000/31633

Total annual cost = $ 236,471.6

Difference in total annual cost = 236640 - 236471.6 = $ 168.4

• Why has the stock market declined so much?

Answers

We need a passage or something. not just the question

On January 1, Gemstone Company obtained a $165,000, 10-year, 7% installment note from Guarantee Bank. Thenote requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. The firstpayment consists of interest of $11,550 and principal repayment of $11,942. The journal entry to record the issuance of the installment note for cash on January 1 would include a:_____

Answers

Answer:

Credit to notes payable for $165000

Explanation:

Journal entries for issuance of Note Payable :

Cash Account ..... Debit $165000

7% Note payable Accounts .... Credit $165000

Note:

Note payable is a liability so it is credited as on date of issuance.

Oriole Tire Co. just paid an annual dividend of $1.70 on its common shares. If Oriole is expected to increase its annual dividend by 3.10 percent per year into the foreseeable future and the current price of Oriole’s common shares is $19.65, what is the cost of common stock for Oriole? (Round intermediate calculations to 4 decimal places, e.g. 0.1555 and final answer to 2 decimal places, e.g. 15.25%.)

Answers

Answer:

Cost of common stock is 12.02%

Explanation:

The cost of common stock can be computed from share price formula given below:

share price=do*(1+g)/r-g

do is the dividend just paid which is $1.70

g is the expected dividend growth per year which is 3.10%

r is the cost of common stock which is unknown

share price is $19.65

by changing the subject of the formula:

r=do*(1+g)/share price+g

r=1.70*(1+3.10%)/19.65+3.10%

r=1.7527/19.65+3.10%

r=0.0892+3.10%=12.02%

The company's cost of capital which is also the cost of common stock is 12.02%

Management in Life Annabelle and Bettina share a dorm room. They like each other, but they disagree about how often to clean. Eventually, Annabelle says to Bettina, "I'm afraid that if we clean the room only once a month, we're going to get bugs. Bettina replies, "Maybe, but this physics course is killing me, so I don't have time to clean more often than that." Annabelle and Bettina are engaged in conflict, based on Which of the following outcomes are likely in this situation?
A) Annabelle and Bettina will learn from each other.
B) The roommates will come up with a creative solution.
C) The roommates will stop speaking to each other.
D) Annabelle and Bettina will be angry at each other.

Answers

Answer:

A). Annabelle and Bettina will learn from each other .

B). The roommates will come up with a creative solution."

Explanation:

Anabelle and Bettina are involved in a 'cognitive' conflict as it occurs when they both experience a mental as well as emotional discomfort when they are confronted with the information that challenges their existing ideas or beliefs. The most likely outcomes of this situation would be that they 'both would learn from each other' by accepting each other's point of view and adapting with the new information that would help them 'reach a creative solution' to resolve their conflict over the cleaning of their room. Therefore, options A and B are the correct answers.

The Converting Department of Hopkinsville Company had 1,200 units in work in process at the beginning of the period, which were 75% complete. During the period, 25,200 units were completed and transferred to the Packing Department. There were 1,360 units in process at the end of the period, which were 25% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".

Answers

Answer:

Equivalent Units

Material cost = 26,560

Conversion Cost= 25,540

Explanation:

We would assume the company uses  weighted average method of valuation.

Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.

Equivalent units = Degree of completion (%) × Number of units

Material cost

Item                                 Unit                                  Equivalent unit

Completed                    25,200      100% ×25200  = 25,200

Closing WIP                   1,360           100%× 1,360       1360

Total equivalent units                                                 26,560

Conversion Cost

Item                                 Unit                                  Equivalent unit

Completed                    25,200      100% ×25200  = 25,200

Closing WIP                   1,360           25%× 1,360        340

Total equivalent units                                                  25,540

On March 15, American Eagle declares a quarterly cash dividend of $0.045 per share payable on April 13 to all stockholders of record on March 30.

Required:

Record American Eagle's declaration and payment of cash dividends for its 226 million shares. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. $5.5 should be entered as 5,500,000).)

Answers

Answer and Explanation:

The journal entries are shown below:

On March 15

Dividend Dr $10,170,000  (226 million shares × $0.045 per share)

     To Dividend payable $10,170,000

(Being the dividend is declared)

For recording this we debited the dividend as it increased the balance of dividend and credited the dividend payable as it increased the liabilities

On March 30

No journal entry is required for recording of dividend

On April 13

Dividend payable $10,170,000

     To cash $10,170,000

For recording this we debited the dividend payable as it decreased the liabilities and credited the cash as it reduced the assets

(Being the dividend payable is recorded)

Please help ASAP giving BRAINLIEST , Did I get this correct?

Answers

Answer:

No, in my opinion I would choose:

A) the properties of free-market system that determine what the outcomes will be.

Explanation:

That would be my answer because the definition of market forces is "the economic factors affecting the price of, demand for, and availability of a commodity."(off the internet) and the answer which fits that definition the most in my opinion is A.

That would be my answer at least.

Hope this helps!

Samco signed a 5​-year note payable on January​ 1, 2018​, of $ 475 comma 000. The note requires annual principal payments each December 31 of $ 95 comma 000 plus interest at 9​%. The entry to record the annual payment on December​ 31, 2021​, includes A. a debit to Interest Expense for $ 17 comma 100. B. a debit to Interest Expense for $ 42 comma 750. C. a credit to Cash of $ 137 comma 750. D. a credit to Notes Payable for $ 95 comma 000.

Answers

Answer:

Option A, a debit to Interest Expense for $ 17 comma 100 is correct

Explanation:

The principal amount on 1st January 2021 needs to be established since that would be the amount left after 2018,2019,2020 principals have been repaid

Principal at 1st January 2021=$475,000-($95,000*3)=$190000

Interest on principal in 2021=$190000 *9%=$17100

Total repayment in 2021=principal plus interest=$95,000+$17,100=$ 112,100.00  

The $95,000 would be a debit to notes payable not credit hence option is wrong.

Only option A,a debit of $17,100 to interest expense is correct

The following information was drawn from the balance sheets of the Kansas and Montana companies: Kansas Montana Current assets $ 59,000 $ 78,000 Current liabilities 40,000 43,000 Required a. Compute the current ratio for each company. b. Which company has the greater likelihood of being able to pay its bills? c. Assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return-on-assets ratio.

Answers

Answer:

a) Current ratio for Kansas company is  1.475

Current ratio for Montana company is 1.814

b) Since the current ratio for the Montana company is more than that of the Kansas company which shows better liquidity, the Montana company has the greater likelihood of being able to pay its bills.

c) Kansas company would produce the higher return-on-assets ratio.

Explanation:

                                    Current Assets           Current liabilities

Kansas Company           $ 59,000                     $ 40,000

Montana Company        $ 78,000                      $ 43,000

a) To calculate the current ratio of A company

Current ratio = [tex]\frac{Current Assets}{Current Liabilities}[/tex]

Therefore current ratio for Kansas company = $ 59,000 ÷ $ 40,000 = 1.475

Current ratio for Montana company =  $ 78,000 ÷ $ 43,000 = 1.814

Pharoah Corporation had the following activities in 2020. 1. Payment of accounts payable $843,000 4. Collection of note receivable $104,000 2. Issuance of common stock $256,000 5. Issuance of bonds payable $466,000 3. Payment of dividends $333,000 6. Purchase of treasury stock $45,000 Compute the amount Pharoah should report as net cash provided (used) by financing activities in its 2020 statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answers

Answer:

The amount Pharoah should report as net cash provided (used) by financing activities in its 2020 statement of cash flows is $344,000.

Explanation:

Pharoah Corporation

Statement of cash flows (extract)

Proceeds from common stock                $256,000

Proceed from bond payable                    $466,000

Dividend paid                                           ($333,000)

Purchase of treasury stock                        ($45,000)

Net cash flows from financing activities    $344,000

Note that the payment of accounts payable and collection of notes receivable only affect the operating activities section of the cash flows.

g Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $20,000,000 of five-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. If an amount box does not require an entry, leave it blank. c. Why was the company able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000? The market rate of interest is the contract rate of interest.

Answers

Answer:

Explanation:

a

Cash 20811010

Bonds payable 20000000

Premium on Bonds payable 811010

b

Interest expense 818899

Premium on Bonds payable 81101 =811010/5*6/12

Cash 900000 =20000000*9%*6/12

c

The market rate of interest will be lower than the contract rate of interest.

Bass Accounting Services expects its accountants to work a total of 26 comma 000 direct labor hours per year. The​ company's estimated total indirect costs are $ 390 comma 000. The company uses direct labor hours as the allocation base for indirect costs. What is the indirect cost allocation​ rate? A. $ 18.00 per hour B. $ 30.00 per hour C. $ 15.00 per hour D. $ 150.00 per hour

Answers

Answer:

C) $ 15.00 per hour

Explanation:

total labor hours 26,000 per year

total indirect costs $390,000

if the company allocates indirect costs according to labor hours employed, the cost allocation rate should be:

$390,000 / 26,000 = $15 per direct labor hour

This means that for every labor hour employed, $15 will be allocated as indirect costs, e.g. a client requires 50 labor hours per year and $750 (= 50 x $15) in indirect costs.

Answer:

The correct answer is option (c) $15 per hour

Explanation:

Solution

Recall that:

Expected wok for accountants = 26,000

The company estimated total indirect costs - 390,000

The next step is to find the allocation base cost for indirect cost.

Now,

The indirect labor cost is calculated as follows:

indirect cost allocation​ rate:

= Total indirect costs/Labor hours

= $390,000/26,000

= $15 per hours

elb Company currently manufactures 50,000 units per year of a key component for its manufacturing process. Variable costs are $2.95 per unit, fixed costs related to making this component are $67,000 per year, and allocated fixed costs are $61,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.90 per unit. Calculate the total incremental cost of making 50,000 units and buying 50,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier

Answers

Answer: Please refer to Explanation

Explanation:

Incremental Cost of Making Product

Variable costs are $2.95 per unit and 50,000 units are to be made. Total Variable Cost is therefore,

= 2.95 * 50,000

= $147,500

Fixed costs associated with the production are$ 67,000 so added tl the variable costs is,

= 147,500 + 67,000

= $214,500

$214,500 is the cost making the product.

Cost of Buying Product

Component can be bought for $3.90 per unit. 50,000 units to be bought gives,

= 50,000 * 3.9

= $195,000

Cost of buying is $195,000

Decision

Company should buy the component as it spends less in buying it than I making it.

Note - Allocated fixed costs were not included in calculation because they will be there regardless of the decision. Hence the term, incremental costs.

Answer:

elb Company

a) Incremental Cost of making 50,000 units:

Variable costs = $2.95 x 50,000 = $147,500

Avoidable fixed costs = $67,000

Total = $214,500

b) Incremental Cost of buying 50,000

Buy-in costs =- $3.90 x 50,000 = $195,000

c) The company should buy this component from the outside supplier.

Explanation:

In make or buy decisions, only variable and avoidable costs are taken into consideration.  Unavoidable fixed costs are sunk costs which must be incurred irrespective of the choice made.

Therefore, the unavoidable allocated fixed costs of $61,500 should not be taken into consideration.  Afterall, no matter the decision, it would still be incurred and allocated.

Wayne Industries is building a new prototype riding lawnmower especially for women. The marketing strategy for the product has been developed and presented. The lawnmower is now being tested rigorously. This step will ensure that the product meets all the CPSC product specifications and leaves little chance for any product liability issues. Which step int he new product development process is this?
A) After this stage, no changes can be made in any aspect of the product design, features, or composition.
B) At this stage, the functional features and the intended psychological characteristics are combined.
C) The new product at this stage can be distributed through a full-scale roll-out immediately.
D) The new lawnmower is at the introductory stage of the lifecycle.
E) The new-product idea is at the last stage of the development process.

Answers

Answer:

The answer is option E) The new-product idea is at the last stage of the development process.

Explanation:

The are several stages in the development of a new product idea. Beginning with initial idea generation all the way to the final evaluation stage.

The new prototype riding lawnmower especially for women designed by Wayne Industries is at the last stage of the development process.

The last stage of the development process also known as the Evaluation phase is characterized by:

Presenting the marketing strategy developed for the product.ensuring that the product meets all the CPSC product specifications and leaves little chance for any product liability issues.

Hancock Medical Supply Co., earned $90,500 of revenue on account during Year 1, its first year of operation. During Year 1, Hancock collected $71,400 of cash from its receivables accounts. The company did not write-off any uncollectible accounts. It estimates that it will be unable to collect 1% of revenue on account. What is the net realizable value of receivables that will be reported on the balance sheet at December 31, Year 1

Answers

Answer:

$18,195

Explanation:

The computation of the net realizable value is shown below:

As we know that

Net Realizable Value of Receivables =  Ending Accounts Receivable - Estimated Uncollectibles  amount

where,

Ending balance of Accounts Receivable is

= Revenue on Account - Accounts collected

= $90,500 - $71,400

= $191,00

And,

Estimated Uncollectibles i.e  Bad debt Expense is

= Revenue on Account × given percentage

= $90,500 × 1%

= $905

So, the net realizable value is

= $19,100 - $905

= $18,195

We simply applied the above formula

Which of the following statements generates the greatest amount of disagreement among economists? a. Increases in the money supply shift aggregate demand to the right. b. In the long run, increases in the money supply increase prices, but not output. c. Recessions are associated with decreases in consumption, investment, and employment. d. Government should use fiscal policy to try to stabilize the economy.

Answers

Answer:

d. Government should use fiscal policy to try to stabilize the economy.

Explanation:

Suggesting that the government should use fiscal policy to try to stabilize the economy generates the greatest amount of disagreement among economists because the process of implementing fiscal policy usually experiences lag as it is being slowed down by the political system (bureaucracy) of checks and balances.

Fiscal policy is the use of government expenditures, revenues and tax policies to influence macroeconomic conditions such as employment, inflation and Aggregate Demand (ADl in a specific country.

The benefits of fiscal policy is that investments, savings and growth is usually influenced in the long-run while it basically influences aggregate demand for goods and services in the short-run.

Suppose that you are the international treasurer of Apple with an extra U.S. $10 million to invest for 9 months. You are considering the purchase of U.S. T-bills that yield 1.50% annual rate. The spot exchange rate is $1.00 = ¥100, and the 9 month forward rate is $1.00 = ¥110. What must the interest rate in Japan be before you are willing to consider investing there for 9 months? A. 14.5515 B. <8.8975 C. >13.4983 D. 12.5050

Answers

Answer:

Japan Interest Rate = 0.15%  

Explanation:

As per Interest Rate Parity Theory

Spot Rate : 1$ = 100

Forward Rate : 1 $ = 110

r = 9/12

As per interest rate parity, forward rate = Spot rate(1+Interest rate Japan)/(1+Interest rate US)

Forward rate = Spot rate *(1+ iD)/(1+iF)

110 / 100 = (1 + Japan Interest Rate * 9 /12)  / 1.01125

1.1 * 1.01125 = 1 + Japan Interest Rate * 0.75

1.112375 = 1 + Japan Interest Rate * 0.75

Japan Interest Rate * 0.75 = 1.112375 - 1

Japan Interest Rate * 0.75 = 0.112375

Japan Interest Rate = 0.112375 / 0.75

Japan Interest Rate = 0.15%  

The following costs are included in a recent summary of data for a company: advertising expense, $85,000; depreciation expense - factory building, $133,000; direct labor, $250,000; direct material used, $300,000; factory utilities, $105,000; and sales salaries expense, $150,000. Determine the dollar amount of conversion costs.

Answers

Answer:

Conversion costs= $488,000

Explanation:

Giving the following information:

depreciation expense - factory building, $133,000

direct labor, $250,000

factory utilities, $105,000

The conversion costs are the sum of direct labor and manufacturing overhead.

Manufacturing overhead= 133,000 + 105,000= 238,000

Direct labor= 250,000

Conversion costs= $488,000

(Ignore income taxes in this problem.) Assume you can invest money at a 14 percent rate of return. How much money must be invested now to be able to withdraw $5,000 from this investment at the end of each year for eight years, the first withdrawal occurring one year from now

Answers

Answer:

the original amount invested = $285,714.29

Explanation:

Let original amount invested be x

Amount to be withdrawn per year = $5,000

Total number of years = 8

Total amount to be withdrawn = 5,000 × 8 = $40,000

Next, we are told that 14% return on x is realized,

∴ 14% return on x = $40,000

0.14 × x = 40,000

x = 40,000 ÷ 0.14 = $285,714.29

Therefore, the original amount invested = $285,714.29

On December 12, 2021, an investment in equity securities costing $77,000 was sold for $94,000. The total of the sale proceeds was credited to the investment in equity securities account. Required: 1. Prepare the journal entry to correct the error, assuming it is discovered before the books are adjusted or closed in 2021. (Ignore income taxes.) 2. Prepare the journal entry to correct the error assuming it is not discovered until early 2022. (Ignore income taxes.)

Answers

Answer:

1.

Dr. Investment Account $17,000

Cr. Gain on Sale             $17,000

2.

Dr. retained Earning      $17,000

Cr. Gain on Sale             $17,000

Explanation:

1.

If an assets is sold more than the book value, then there is a gain on the sales of asset.

Gain on Sale = Sales Proceeds - Book value of Investment = $94,000 - $77,000 = $17,000

As sales proceeds of $94,000 are credited in the Investment account, which needs to be credited by $77,000 only. The excessive amount of $17,000 should be recorded in the Gain on sale account.

2.

Error is not discovered until 2022 and earning for 2021 was transferred to retained earning. So, adjustment should me made in the retained earnings to eliminate the effect.

Matt and Joel are equal partners in the MJ Partnership. For the current year ended December​ 31, the partnership has book income of​ $80,000, which includes the following​ deductions: (1) guaranteed payments​ (salaries) to​ partners: Matt,​ $35,000; and​ Joel, $25,000; and​ (2) charitable​ contributions, $6,000. The book income amount does not include any sales of capital assets or Sec. 1231 assets or any taxminusexempt income. Based on the above​ information, what amount should be reported as ordinary income on the partnership​ return?

Answers

Answer:

$86,000

Explanation:

A partnership is a pass through entity that is not taxed directly, but instead its partners are taxed. Even the partners' salaries are recorded as drawings, not salary expense.

The partnership's total ordinary income = book income + any donations or contributions to charities = $80,000 + $6,000 = $86,000

To encourage employee ownership of the company's common shares, KL Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 12% discount. During May, employees purchased 10,000 shares at a time when the market price of the shares on the New York Stock Exchange was $12 per share. KL will record compensation expense associated with the May purchases of:

Answers

Answer:

Dr Cash 105,600

Dr Compensation Expense 14,400

Cr Common Stock 10,000

Cr Paid-In Capital – Excess of Par 110,000

Explanation:

KL Corp Journal entry

Dr Cash 105,600

Dr Compensation Expense 14,400 (10,000*12*12%)

Cr Common Stock 10,000 (10,000*1)

Cr Paid-In Capital – Excess of Par 110,000

(10,000*(12-1))

On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 80,000. SunTime’s December 31, 20X1, trial balance in SFr is as follows:Part 1. Prepare a schedule translating (current rate method) the December 31, 20X1, trial balance from Swiss francs to dollars.

Answers

On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 80,000. SunTime’s December 31, 20X1, trial balance in SFr is as follows:

Then intended files that supposed to be here are added in the attachments below:

Part 1. Prepare a schedule translating (current rate method) the December 31, 20X1, trial balance from Swiss francs to dollars.

Answer:

Explanation:

We are tasked to Prepare a schedule translating (current rate method) the December 31, 20X1, trial balance from Swiss francs to dollars.

 

                     Schedule remeasuring Swiss francs to dollars

                     Trial Balance Translation Schedule

                      December 31, 20X1

                                             Sfr            Exchange Rate      U.S dollar        

Cash                             $7,200                   0.73               $5,256

Accounts                      $25,000                0.73               $18,250

receivable (net)

Receivable from           $6,300                  0.73                $4,599

Creek

Inventory                       $26,000               0.73                $18,980

Plant & equipment        $110,000              0.73                $80,300

Cost of good sold         $71,500                0.75                $53,625

Depreciation expense  $10,100                0.75                $7,575

Operating expense       $35,000              0.75                $26,250

Dividends paid              $16,400               0.74                 $12,136

                                                                                                                     

Total:                             $307,500                                     $226,971

                                                                                                                     

[tex]Accumulated - \ translation \\other \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ adjustment\\Comprehensive \\ loss[/tex]  (233,031 - 226,971)           $6060

                                                                                                                                   

TOTAL DEBITS                                                                    $233,031

Accumulated              $10,100                 0.73                  $7,373

Depreciation

Account                      $13,600                 0.73                  $9,928  

Payable

Bond                           $51,000                 0.73                  $37,230

Payable

Common stock          $78,000                 0.80                $62,400

Sales                          $154,800                 0.75               $116,100

                                                                                                                       

Total:                         $307,500                                        $233,031

No entry necessary                                                         $   -

TOTAL CREDITS                                                               $233,031              

he income statement of Sarasota Company is shown below. SARASOTA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,890,000 Cost of goods sold Beginning inventory $1,910,000 Purchases 4,410,000 Goods available for sale 6,320,000 Ending inventory 1,620,000 Cost of goods sold 4,700,000 Gross profit 2,190,000 Operating expenses Selling expenses 460,000 Administrative expenses 700,000 1,160,000 Net income $1,030,000 Additional information: 1. Accounts receivable decreased $350,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $300,000 during the year. 4. Accrued expenses payable decreased $90,000 during the year. 5. Administrative expenses include depreciation expense of $50,000. Prepare the operating activities section of the statement of cash flows using the direct method.

Answers

Answer:

Cash flow from operating activities

Cash Receipts from Customers                    $7,240,000

Cash Paid to Suppliers and Employees      ($6,460,000)

Net Cash from Operating Activities                 $780,000

Explanation:

Prepare a statement of cash flows` operating activities section as follows :

Cash flow from operating activities

Cash Receipts from Customers                    $7,240,000

Cash Paid to Suppliers and Employees      ($6,460,000)

Net Cash from Operating Activities                 $780,000

Cash Receipts from Customers Calculations

Sales revenue                                             $6,890,000

Add Decrease in Accounts Receivables      $350,000

Cash Receipts from Customers                 $7,240,000

Cash Paid to Suppliers and Employees Calculations

Cost of goods sold                                       $4,700,000

Add

Selling expenses                                            $460,000

Administrative expenses                                $700,000

Less depreciation expense of                         $50,000

Decrease in Accounts Payable                     $300,000

Decrease in Accrued Expenses                      $90,000

Increase in  Prepaid expenses                       $160,000

Cash Paid to Suppliers and Employees    $6,460,000

Now suppose country A imposes a tax on A's production of to curb emissions. Country B, however, is not taxed. A's cost function is now , while B's cost function is . World demand is . The amount of greenhouse gas emissions per unit is still , such that total world emissions are given by . What are total world emissions after country A enacts a carbon tax?

Answers

Answer:

286.5

Explanation:

P=99-qa-qb

MRa=99-2qb-qb

MCa=48

99-2qa-qb=48

Qa=25.5-0.5qb{ best response function of firm A)

MRb=99-qa-2qb

MCb=4

99-qa-2qb=4

Qb=47.5-0.5qa{ best response function of form b}

Qb=47.5-0.5(25.5-0.5qb)

Qb=34.75/0.75=46.33

Qa=25.5-0.5*46.33=2.33

Total world output=46.33+2.33=48.66

Total world emission=0.5*48.66=24.33

p=1146-qa-qb-qc

MRa=1146-2qa-qb-qc

MCa=0

1146-2qa-qb-qc=0

Qa=573-0.5(qb+qc) best response function of firm a)

By symmetry,

Qb=573-0.5(qa+qc)

Qc=573-0.5(qa+qb)

Qb+qc=1146-qa-0.5(qb+qc)

Qb+qc=764-qa/1.5

Qa=573-0.5(764-qa/1.5)=191+qa/3

Qa=191*3/2=286.5

Qa=Qb=Qc=286.5

Total output=3*286.5=859.5( cournot equilibrium market output)

Cartel output=573

Lower QUANTITY in cartel equilibrium compare to cournot equilibrium

=859.5-573

=286.5

A Company manufactures coffee tables. The Company has a policy of adding a 20% markup to full costs and currently has excess capacity. The following information pertains to the company's normal operations per month: Output units 30,000 tables Machine-hours 6000 hours Direct manufacturing labor-hours 10,000 hours Direct materials per unit $50 Direct manufacturing labor per hour $12.00 Variable manufacturing overhead costs $322,500 Fixed manufacturing overhead costs $1,200,000 Product and process design costs $600,000 Marketing and distribution costs $1,290,000 For long-run pricing of the coffee tables, what price will most likely be used by the Company

Answers

Answer:

$201.30

Explanation:

Direct materials = $50

Total Direct manufacturing labor =  $12.00 * 10,000 = $120,000

Variable manufacturing overhead costs = $322,500

Fixed manufacturing overhead costs = $1,200,000

Product and process design costs = $600,000

Marketing and distribution costs = $1,290,000

Total cost apart from direct material = $120,000 + $322,500 + $1,200,000 + $600,000 + $1,290,000 = $3,532,500

Cost per unit apart from direct material = $3,532,500 / 30,000 = $117.75

Total cost per unit = $117.75 + $50 = $167.75

Mark up per unit = $167.75 * 20% = $33.55

Price per unit = $167.75 + $33.55 = $201.30

Answer: $201.30

Explanation:

To solve this all the expenses incurred per unit need to be included in the unit.

Direct Materials $50

Direct Manufacturing Labour Hours per unit

= (10,000/30,000 units) * 12 (direct Manufacturing Labour per hour)

= $4

Variable Manufacturing Overhead Cost

= 322,500/30,000

= $10.75

Fixed manufacturing overhead costs

= 1,200,000/30,000

= $40

Product and process design costs

= 600,000/30,000

= $20

Marketing and distribution costs

= 1,290,000/30,000

= $43

Adding everything up,

= 50 + 4 + 10.75 + 40 + 20 + 43

= $167.75

Company adds 20% to costs so,

= 167.75 * ( 1 + 20%)

= $201.30

Company will most likely sell at $201.30

The capital accounts of Heidi and Moss have balances of $90,000 and $65,000, respectively, on January 1, the beginning of the current fiscal year. On April 10, Heidi invested an additional $8,000. During the year, Heidi and Moss withdrew $40,000 and $32,000, respectively. Revenues were $540,000 and expenses were $420,000 for the year. The articles of partnership make no reference to the division of net income. Required: 1. Prepare a statement of partners' equity for the partnership of Heidi and Moss. If an amount box does not require an entry, leave it blank. Enter all amounts as positive numbers. Heidi and Moss Statement of Partners' Equity For the Year Ended December 31 Heidi Moss Total Capital, January 1 $ 90,000 $ 65,000 $ 155,000 Net income for the year 60,000 60,000 120,000 $ $ $ $ $ $ Withdrawals during the year Capital, December 31 $ 118,000 $ 93,000 $ 211,000 2. Journalize the entries to: Close the revenue and expenses account. Close the drawing accounts. If an amount box does not require an entry, leave it blank. a. Revenues 540,000 Heidi, Capital 540,000 Moss, Capital 420,000 Heidi, Capital 40,000 Moss, Capital Moss, Drawing b. Heidi, Capital 40,000 Moss, Capital 32,000 Heidi, Drawing 40,000 Moss, Drawing 32,000

Answers

Answer:

The statement and journal are attached

Explanation:

Your aunt is about to retire, and she wants to sell some of her stock and buy an annuity that will provide her with income of $53,000 per year for 30 years, beginning a year from today. The going rate on such annuities is 7.25%. How much would it cost her to buy such an annuity today

Answers

Answer:

Present Value= $641,494.12

Explanation:

Giving the following information:

Cash flow= $53,000 per year

Number of years= 30 years

Interest rate= 7.25%

First, we need to calculate the final value of the annuity:

FV= {A*[(1+i)^n-1]}/i

A= annual flow

FV= {53,000*[(1.0725^30)-1]} / 0.0725

FV= $5,237,351.32

Now, we can determine the present value:

PV= FV/(1+i)^n

PV= 5,237,351.32/ (1.0725^30)

PV= $641,494.12

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