Journalize the following transactions for Lucite Company. Assume 360 days per year.

a. November 14: Received a $4,800.00, 90-day, 9% note from Alan Albertson in payment of his account.
b. December 31: Accrued interest on the Albertson note.
c. February 12: Received the amount due from Albertson on his note.

Answers

Answer 1

Answer:

a.

Date               Account Title                                       Debit                 Credit

Nov. 14           Note Receivable                               $4,800

                       Accounts Receivable                                                 $4,800

b.

Date               Account Title                                       Debit                 Credit

Dec, 14           Interest Receivable                             $56.40

                      Interest revenue                                                         $56.40

Working

= 4,800 * 9% * 47 days / 360

= $56.40

47 days is number of days from Nov. 14 to December 31.

c.

Date               Account Title                                       Debit                 Credit

Feb. 12           Cash                                                   $4,908

                      Interest receivable                                                          $56.40

                      Interest revenue                                                              $51.60

                      Notes Receivable                                                           $4,800

Working:

Cash = 4,800 + (4,800 * 90/360 * 9%)

= $4,908

Interest revenue = Cash - Interest receivable - Notes receivable

= 4,908 - 56.40 - 4,800

= $51.60


Related Questions

Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $308,000, total variable expenses were $215,600, and fixed expenses were $35,700. Required: 1. What is the company’s contribution margin (CM) ratio? 2. What is the estimated change in the company’s net operating income if it can increase total sales by $1,800?

Answers

Answer: 1) CM / Sales = CM Ratio

CM = 306,000 - 238,680 = 67,320

CM Ratio = 67,320 / 306,000 = 0.22

2) CM Ratio x 2,500 = 550

Explanation:

The burden of a tax is shared by producers and consumers. Under what conditions will consumers pay most of the​ tax? Under what conditions will producers pay most of​ it? A. It depends on who is legally obligated to pay the tax. Typically producers are required to pay the tax and therefore bear most of the burden. B. If demand is relatively more elastic than​ supply, producers will pay more of the tax. C. It depends on who is legally obligated to pay the tax. Typically consumers are required to pay the tax and therefore bear most of the burden. D. If demand is relatively less elastic than​ supply, producers will pay more of the tax.

Answers

Answer:

B

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price  

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases  

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

If demand is more elastic than supply, if price is increased as a result of tax,  demand would fall more than supply. As a result, producers would bear more tax burden

A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The difference between par value and issue price for this bond is recorded as a:________
A. Credit to Interest Income
B. Credit to Premium on Bonds Payable.
C. Credit to Discount on Bonds Payable.
D. Debit to Premium on Bonds Payable
E. Debit to Discount on Bonds Payable

Answers

I think b but not fully sure, good luck

For each of the following corporate formations, (1) write the amount of gain or loss that will be recognized by the shareholders as a whole, and (2) write the corporation's basis in the property after the transfer.

a. John and Kelly started Back Stop, Inc., in 2021. Kelly transferred a building with a basis of $120,000 and a FMV of $150,000 for 60% of the stock.
b. John agreed to operate the company on a day-to-day basis in exchange for his stock. Ignore any compensation income recognized by John.

Answers

Answer:

Back Stop, Inc.

1. The amount of gain or loss that will be recognized by the company:

a. $30,000 gain

b. $80,000 loss

2. The corporation's basis in the property after the transfer:

a. $150,000

b. ($80,000)

Explanation:

1) Data and Calculations:

a. Building $150,000 Capital, Kelly $120,000 Unrealized gain $30,000

b. Unrealized loss $80,000 Capital, Kelly $80,000

2) The building contributed by Kelly is worth $150,000 for the corporation.  However, the contribution by John is worth nothing in real terms.  Instead, an unrealized loss is being suffered by the corporation.

A manager of a company is facing an ethical problem. He uses the formal process for ethical decision making to resolve the problem. Which of the following steps will they begin with

Answers

Answer: Understanding all the moral standards and recognizing all moral impacts.

Explanation:

Ethics is the standards and the moral principles which guide the behavior of an individual or group of people. Ethical decision making reefers to the assessment of the moral implications of a course of action.

Since the manager uses the the formal process for ethical decision making to resolve the problem, the first step to begin with is to understand the moral standards and recognizing all moral impacts. The manager needs to be aware of the moral standards and be sure if he or she is following the normal process and doing the right thing.

Synovec Company is growing quickly. Dividends are expected to grow at a rate of 30 percent for the next three years, with the growth rate falling off to a constant 4 percent thereafter. If the required return is 10 percent, and the company just paid a dividend of $2.65, what is the current share price

Answers

Answer:

$87.03

Explanation:

Calculation to determine the current share price

First step is to calculate p1

p1= $2.65(1+.30)^3(1+.04) / (.10 - .04)

p1= $2.65(1.30)^3(1.04) / (.10 - .04)

p1=6.054932/.06

p1=100.92

Now let calculate the Current price

p0= [$2.65(1.30) / 1.10] +[$2.65(1.30)^2 / 1.10^2] + [$2.65(1.30)^3 / 1.10^3] + [$100.92/ 1.10^3]

p0=3.1318+4.4782/1.21+5.82205/1.331+$100.92/1.331+

p0=3.1318+3.700992+4.37419+75.82

p0=$87.03

Therefore the current share price is $87.03

When Job 117 was completed, direct materials totaled $13,116; direct labor, $22,560; and factory overhead, $16,788. A total of 2,186 units were produced at a per-unit cost of a.$35,676 b.$24 c.$52,464 d.$2,186

Answers

Answer:

Unitary cost= $24

Explanation:

Giving the following information:

Total direct material= $13,116

Direct labor= $22,560

Factory overhead= $16,788

Number of units= 2,186

First, we need to calculate the total cost:

Total cost= 13,116 + 22,560 + 16,788

Total cost= $52,464

Now, the unitary cost:

Unitary cost= total cost / number of units

Unitary cost= 52,464 / 2,186

Unitary cost= $24

Fox Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the period, the Corporation estimated manufacturing overhead would be $18,000 and direct labor-hours would be 15,000. The actual figures were $19,500 for manufacturing overhead and 16,000 direct labor-hours. The cost records for the period will show:

Answers

Answer:

See below

Explanation:

Given the information above, we will calculate the predetermined overhead rate first.

Predetermined overhead rate = Estimated manufacturing overhead / Estimated direct labor

= $18,000 / 15,000

= $1.2

Then,

Manufacturing overhead = Predetermined overhead rate × Actual direct labor hours

= $1.2 × 16,000

= $19,200

Then,

Cost records for the period = Manufacturing overhead - Actual manufacturing overhead

= $19,200 - $19,500

= $300 over applied

22.On January 1, 2021, Amazon purchased a $64,000 office equipment and expected its useful economic life of 5 years. At the end of year 5th, the company expected to sell the equipment for $4,000. It is now December 31, 2021. Which of the following entries are needed to be made before preparing financial statements?
a. Debit Office equipment $64,000; Credit Cash $64,000
b. Debit Depreciation expense - Office equipment $64,000; Credit Cash $64,000
c. Debit Depreciation expense - Office equipment $12,000; Credit Accumulated depreciation – Office equipment $12,000
d. Debit Accumulated depreciation – Office equipment $12,000; Credit Depreciation expense - Office equipment $12,000

Answers

Answer:

C.

Explanation:

64000-4000 (salvage value)=60000

60000/5=12000 (annual depreciation)

depreciation expense.        12000

   Accumulated depreciation.     12000

An investment that costs $105,000 today is expected to produce the following cash inflows over each of the next five years: $20,000; $25,000; $23,000; $22,000; $21,000. What is the IRR (compounded annually) for this investment

Answers

Answer: 1.89%

Explanation:

You can use Excel to find the IRR here:

Investment amount should be first as shown and should be in negative.

The cash flows will then follow each other by year.

Use the =IRR formula to select all the cells and the IRR will show.'

IRR here = 1.89%

Discuss the six HRM practices from which companies can choose for implementing their strategy. Illustrate by specific examples.

Answers

Answer:

Explanation:

Bạn ơi có câu trả lời ko cho mình xin với

You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are .80, 1.18, 1.19, and 1.36, respectively. What is the portfolio beta

Answers

Answer:

The Portfolio beta is 1.1045

Explanation:

The computation of the portfolio beta is given below:

Stock          Beta       Investment (Weight)       Weighted Beta

Stock Q      0.8         0.3                                   0.2400

Stock R       1.18       0.25                                  0.2950

Stock S       1.19       0.25                                  0.2975

Stock T        1.36      0.2                                    0.2720

Portfolio beta                                                  1.1045

Correctly complete the following statement. We may be more likely to consider using qualitative forecasting techniques when Select one: a. a lot of historical (quantitative) demand data exists. b. we are faced with a short-term, operational decision-making problem. c. the relevant environment is likely to be quite stable (less variable) over the forecast horizon. d. the forecast horizon is long (e.g., more than three to five years).

Answers

Answer:

b

Explanation:

There are two types of forecasting method

1. Qualitative forecasting

2. Quantitative forecasting

Qualitative forecasting can be described as when subjective judgement or non quantifiable information in forecasting.

When is qualitative forecasting suitable ?

It is used when historical data in unavailable. this method is suitable when it is predicted that future result would depart from what historical data may suggest

Advantages of Qualitative forecasting

it is flexible It can be used when data available is ambiguous or unclear

Disadvantage of Qualitative forecasting

It is subjective.

Quantitative forecasting can be described as forecasting using historical data

Supply-side economists believe that a reduction in the tax rate a. always decrease government tax revenue. b. would decrease consumption. c. provides no incentive for people to work more. d. shifts the aggregate supply curve to the right.

Answers

Answer: D. shifts the aggregate supply curve to the right.

Explanation:

Supply side economics refers to the macroeconomic theory which states that the economic growth in an economy can be improved by the reduction in taxes and decrease in regulations.

Such Economists believe that this is vital as the consumers will benefit as there'll be an increase in the supply of goods from the manufacturers. Also, there'll be reduction in prices due to less taxes being paid. Also, there'll be an increase in employment.

You expect to receive $5,400 two years from now, $6,300 three years from now, and $10,900 six years from now. What is the future value of these cash flows seven years from now if the interest rate is 7.4 percent, compounded annually

Answers

Answer:

Total FV= $27,805.2

Explanation:

Giving the following information:

You expect to receive $5,400 two years from now, $6,300 three years from now, and $10,900 six years from now.

Interest rate= 7.4%

To calculate the Future Value, we need to use the following formula:

FV= Cf*(1 + i)^n

Cf1= 5,400*(1.074^5)= 7,716.41

Cf2= 6,300*(1.074^4)= 8,382.19

Cf3= 10,900*1.074= 11,706.6

Total FV= $27,805.2

The following labor standards have been established for a particular product: Standard labor-hours per unit of output 8.7 hours Standard labor rate $12.50 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 6,500 hours Actual total labor cost $78,650 Actual output 900 units What is the labor efficiency variance for the month

Answers

Answer:

the labor efficiency variance for the month is $16,625 favorable

Explanation:

The computation of the labor efficiency variance for the month is given below:

= Standard labor rate × (actual hours - actual output × standard hours per unit)

= $12.5 × (6,500 hours - 900 units × 8.7 hours)

= $16,625 Favorable

Hence, the labor efficiency variance for the month is $16,625 favorable

The same is relevant

Tariffs are a tax placed on ✔ imported goods.
Tariffs are used to give domestically produced goods ✔ an advantage in the market.
As a result of tariffs, imported goods become ✔ more expensive for consumers

Answers

Answer:

Imported, an advantage, more.

Explanation:

This is done to discourage the use of foreign items and use of domestically made products. This helps the domestic companies to get their advantage in profit and sales. Thereby making the imported goods more expensive and discourages their use.

Answer:

Tariffs are a tax placed on  

✔ imported

goods.

Tariffs are used to give domestically produced goods  

✔ an advantage

in the market.

As a result of tariffs, imported goods become  

✔ more

expensive for consumers

Explanation:

Shareholders may prefer the compensation package that includes stock options because the options give the CEO the incentive to maximize the price of the company's stock, thus benefiting the shareholders. A fixed salary, regardless of stock price performance, can lead to a CEO who is willing to do the minimum necessary to maintain the job, but who is not motivated to work extra hard for shareholders.

a. True
b. False

Answers

Answer: True

Explanation:

There exists a problem known as the Agency Problem between managers and the shareholders of a company. The manager is the agent and the shareholders are the owners. Sometimes, it has been shown that the agent might act in their best interests as opposed to be best interests of the owners of the business.

To solve this, the manager should be made an owner as well and one way to do so is to give them stock options. This way, they will be motivated to work hard for the owners because they will benefit as well.

During March, XYZ Inc. transferred $50,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $56,000. The journal entries to record these transactions would include a:

Answers

Answer:

Date   Journal entries             Debit          Credit

          Finished Goods          $50,000

              Work in Process                          $50,000

          Cost of Goods Sold $56,000

               Finished Goods                          $56,000

Perteet Corporation's relevant range of activity is 6,600 units to 13,000 units. When it produces and sells 9,800 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.30 Direct labor $ 3.70 Variable manufacturing overhead $ 1.80 Fixed manufacturing overhead $ 3.10 Fixed selling expense $ 0.70 Fixed administrative expense $ 0.40 Sales commissions $ 0.50 Variable administrative expense $ 0.55 If 7,300 units are produced, the total amount of manufacturing overhead cost is closest to:

Answers

Answer:

Total overhead cost= $43,520

Explanation:

Giving the following information:

Variable manufacturing overhead $ 1.80

Fixed manufacturing overhead $ 3.10

First, we need to calculate the total fixed overhead:

Total fixed overhead= 3.1*9,800 = $30,380

Now, the total overhead cost for 7,300 units:

Total variable overhead= 7,300*1.8= 13,140

Total fixed overhead= 30,380

Total overhead cost= $43,520

Match each current trend with the advantage it provides for the global
economy

Reduction of
trade barriers

?
Facilitates international
business and trade
Allows for a greater
mobility of goods and
labor

Industrialization

?
Improved
communication

Reduces production and
transportation costs

Development of
infrastructure

Enables economic growth
in developing countries

Answers

Answer:

Find answers below.

Explanation:

1. Reduction of trade barriers: allows for a greater mobility of goods and labor.

Some examples of trade barriers are import license, quotas, subsidies, embargo, currency devaluation, local content requirements, tariffs, etc.

A tariff can be defined as tax levied by the government of a country on goods and services imported from another country.

2. Industrialization: enables economic growth in developing countries.

Industrialization can be defined as a strategic process which typically involves the development of various industries in a country by the large-scale introduction of mechanized equipments and use of technology for the manufacturing of goods and services that meets the need or requirements of consumers.

3. Improved communication: facilitates international business and trade.

Basically, when there is an effective and efficient level of communication between two or more countries, it would help to facilitate and enhance the exchange of goods and services between the countries.

4. Development of infrastructure: reduces production and transportation costs.

Typically, when there are good infrastructural development such as roads, electricity, etc., in a society it would ease the movement of goods and services, as well as the cost of production and transportation.

a. What is the total cost for a basket of goods that includes 210 gallons of gas, 55 pizzas, 40 6-packs, and 2 textbooks

Answers

Answer:

Total Cost Base year = $815Last year Total cost = $1,464.35

Explanation:

In the base year, the total cost was:

= (210 * 1.30) + (55 * 3.60) + (40 * 3.90) + (2 * 94)

= 273 + 198 + 156 + 188

= $815

Last year, the total cost was:

= (210 * 1.60) + (55 * 7.65) + (40 * 6.64) + (2 * 221)

= 336 + 420.75 + 265.60 + 442

= $1,464.35

Notice that the total cost increased last year from the base year. This is the effect of inflation. Things get more expensive overtime.

If a company is using past email responses as a segmentation strategy, the best approach for individuals who have not responded to multiple email offers is to:_________
a. offer them free merchandise if they place an offer
b. offer free shipping on any order
c. send an email inquiry requesting an update on their contact information
d. drop them from the email list

Answers

Answer: a. offer them free merchandise if they place an offer

Explanation:

When a customer is not replying via email, the best way to get them to be responsive again is to offer them some form of special that would allow them to make savings on a purchase of goods.

One such method would be by offering them free merchandise if they make an offer. Chances are that they would become responsive so as to take advantage of this offer.

Your home insurance provides for replacement value for personal property losses. A microwave is stolen. It cost $258 two years ago and has an expected life of six years. A comparable microwave costs $366 today. What amount will the insurance company pay

Answers

Answer: $366

Explanation:

Replacement Cost Coverage refers to the valuation methods for the establishment of the value of an insured property which is used in knowing the amount that an insurer will

have to pay in case there is a loss and in such case, the insurance company will have to pay the costs at the present price to replace the damaged product.

Since the comparable microwave costs $366 today, therefore the insurance company will pay $366.

If the demand for donuts is elastic, then a decrease in the price of donuts will a. not change total revenue of donut sellers. b. There is not enough information to answer this question. c. decrease total revenue of donut sellers.

Answers

Answer:

increase the total revenue of donut sellers.

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases  

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

If demand is elastic and price is reduce, the percentage reduction in price would be less than the total increase in quantity demanded. As a result, there would be an increase in total revenue.

When the management team reviewed its government contract on office chairs, they noticed that in order to bid on the project, at least 37 percent of the value of the office chairs had to be produced in the United States. This stipulation is an example of a(n)

Answers

Answer:

local content requirement.

Explanation:

In the case when the management team is reviewed the government contract so they notice that minimum 37% of the office chairs value should be generated so this stipulation represent the local content requirement as under this clause, the firm is needed to source the goods portion from the local producers

Therefore the above term should be the answer

The accountant for Sysco Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $ 819,000 Net income for the year 230,000 Cash dividends declared for the year 42,000 Retained earnings balance at the end of the year 1,007,000 Cash dividends payable at the beginning of the year 10,000 Cash dividends payable at the end of the year 11,000 What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows

Answers

Answer: $41000

Explanation:

The amount of cash dividends paid that should be reported in the financing section of the statement of cash flows will be calculated thus:

Beginning dividend = $10000

Add: Dividend declared = $42000

Less: Ending dividend payable = $11000

Cash dividend paid = $41000

"ng liquidity​) Aylward Inc. currently has ​$ in current assets and ​$ in current liabilities. The​ company's managers want to increase the​ firm's inventory, which will be financed by a​ short-term note with the bank. What level of inventories can the firm carry without its current ratio falling belo"

Answers

Answer: $209,500

Explanation:

Current ratio = Current assets / Current liabilities

They plan to increase current assets by increasing inventory. They plan to do this by using a short term note which is a current liability. Both the numerator and the denominator will therefore increase.

Assume the maximum inventory increase to be:

2.20 = (2,161,000 + x) / (868,000 + x)

2.20 * 868,000 + x = 2,161,000 + x

1,909,600 + 2.20x = 2,161,000

2.20x - x = 2,161,000 - 1,909,600

1.20x = 251,400

x = 251,400 / 1.2

x = $209,500

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 common size percentages for cost of goods sold using Net sales as the base.
2017 2016
Net sales $522,200 $423,400
Cost of goods sold 219,400 135,440
Operating expenses 79,990 $77,090
Net earnings 40,420 28,670
a. 42.0% for 2017 and 32.0% for 2016.
b. 7.7% for 2017 and 6.8% for 2016.
c. 123.3% for 2017 and 100.0% for 2016.
d. 57.3% for 2017 and 50.2% for 2016.
e. 174.4% for 2017 and 199.2% for 2016.

Answers

Answer:

a. 42.0% for 2017 and 32.0% for 2016

Explanation:

Common size % for cost of goods sold = Cost of goods sold/Net sales

For 2017

= $219,400 / $522,200

= 0.4201456

= 42%

For 2016

= $135,440 / $423,400

= 0.31988663

= 31.99%

What expenses typically come first in the "Expenses" section of an income statement? a. Non-operating expenses b. Irregular expenses c. Selling, general and administrative expenses d. Tax expenses

Answers

Answer:

c. Selling, general and administrative expenses

Explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

The expense recognition principle is an accounting principle which is typically used on accrual basis accounts and it states that expenses incurred by an individual or business entity should be recognized and matched in the same period with respect to the revenues they are related to.

Selling, general and administrative expenses typically come first in the "Expenses" section of an income statement.

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