Answer:
1. $18,200 per quarter
2. 1-Jan-21
Dr Lease Receivable $138,287
Dr Cost of Goods Sold $94, 000
Cr Inventory of Equipment $94,000
Cr Sales Revenue $138,287
Dr Cash $18,200
Cr Lease Receivable $18,200
1-Apr-21
Dr Cash $18,200
Cr Lease Revenue $1,801
Cr Lease Receivable $16,399
Explanation:
1. Calculation to Show how International Machines determined the $18,200 quarterly lease payments
First step is to find the Present value of annuity at period start
Lease term=n = 2 x 4 quarters
Lease term=n= 8 periods
Fair value of asset = $138,287
Implicit interest rate, i = 6%, quarterly rate = 6%/4 Implicit interest rate= 1.5%
Present value of annuity at period start at 1.5%, 8 periods
Present value of annuity at period start = 7.5982
Now let determine the quarterly payments
Quarterly payments= $138,287/7.5982
Quarterly payments = $18,200 per quarter
Therefore the quarterly lease payments is $18,200
2) Preparation of the appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021.
1-Jan-21
Dr Lease Receivable $138,287
Dr Cost of Goods Sold $94, 000
Cr Inventory of Equipment $94,000
Cr Sales Revenue $138,287
(To record lease at its beginning)
Dr Cash $18,200
Cr Lease Receivable $18,200
(To record lease at its beginning)
1-Apr-21
Dr Cash $18,200
Cr Lease Revenue $1,801
Cr Lease Receivable $16,399
(To record second lease payment)
Calculation of lease revenue as on April 1, 2021
Lease revenue = ($138,287 – $18,200) x 1.5%
Lease revenue= $120,087×1.5%
Lease revenue= $1,801
Lease receivable = $18,200 – $1,801
Lease receivable = $16,399
Rodriguez Company pays $352,755 for real estate with land, land improvements, and a building. Land is appraised at $250,000; land improvements are appraised at $50,000; and a building is appraised at $200,000. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.
Answer and Explanation:
The computation and the journal entry is shown below;
a. The allocation of the total cost among the three assets is shown below:
(a) (b) (a × b)
Appraise value Total appraised Total cost of Apportioned
value cost
Percentage acquisition
Land $250,000 50% $352,755 $176,377.5
Land
improvemnts $50,000 10% $352,755 $35,275.5
Building $200,000 40% $352,755 $141,102
Total $500,000
b. The journal entry to record the purchase is shown below:
Land $176,377.5
Land improvements $35,275.5
Building $141,102
To Cash $352,755
(To record the purchase)
The asset is debited as it rise the assets and cash is credited as it decreased the assets
Arendelle Enterprises has inventory of $667,000 in its stores as of December 31. It also has two shipments in-transit that left the suppliers' warehouses by December 28. Both shipments are expected to arrive on January 5. The first shipment of $128,000 was sold f.o.b. destination and the second shipment of $80,000 was sold f.o.b. shipping point. What amount of inventory should Arendelle report on its balance sheet as of December 31
Answer:
$747,000
Explanation:
Calculation to determine What amount of inventory should Arendelle report on its balance sheet as of December 31
December 31 Inventory $667,000
Add Second shipment f.o.b. shipping point of $80,000
December 31 Inventory $747,000
($667,000+$80,000)
Therefore What amount of inventory should Arendelle report on its balance sheet as of December 31 is $747,000
During 2018, Jacobsen wrote off $18,000 in receivables and recovered $6,000 that had been written off in prior years. Jacobsen's December 31, 2017, allowance for doutbful accounts was $40,000. What is the appropriate year-end adjusting entry Jacobson must use to record bad debts expense and update the allowance for doubtful accounts on December 31, 2018
Answer: Debit: Bad debt expense $21400
Credit: Allowance for doubtful debt $21400
Explanation:
Based on the information given, the bad debt expense will be:
= 49400- (40000-18000+6000)]
= 49400 - 28000
= 21,400
The bad debt expenses of $21400 will be debited
The Allowance for doubtful Accounts of $21400 will be credited.
(To record bad debts expense)
Suppose an American business owner purchases chocolates from Belgium in order to sell them in her shops. This would be entered as a ____________ item under the ___________________ section of the U.S. current account. Consider the goods and services balance. According to the table, the United States is running a trade ____________ .
The current account balance suggests that U.S. current account transactions (exports and imports of goods and services, as well as inflow and outflow of investment income and transfers) created outpayments of foreign currencies from the United States that were __________________the inpayments of foreign currencies to the United States.
Any surplus or deficit in one account must be offset by deficits or surpluses in other balance-of-payments accounts. Because the current account is in ____________ , the excess of foreign currency held by Americans must either be loaned to foreigners or used to buy foreign stocks or bonds. All of these transactions are then recorded in the _______________account. Since any imbalance in one account automatically leads to an equal, but opposite, imbalance in the other, the balance of payments is always _____________
Answer:
Debit
U.S. merchandise imports
Surplus
equal to
Surplus
current
zero
Explanation:
The trade deficit or surplus is based on the exports and imports of the country. When the imports are higher than exports then there will be trade deficit in the current account. In the given scenario the case is other way round, here imports are less than exports which suggests that there is a trade surplus which is offset by other accounts and balance of payment turn out to be zero.
Marshall Motor Homes currently sells 1,160 Class A motor homes, 2,170 Class C motor homes, and 1,600 pop-up trailers each year. It is considering adding a midrange camper and expects that if it does so the firm can sell 800 of them. However, if the new camper is added, the firm expects its Class A sales to decline by 8 percent while the Class C camper sales decline to 1,950 units. The sales of pop-ups will not be affected. Class A motor homes sell for an average of $179,000 each. Class C homes are priced at $64,500, and the pop-ups sell for $5,700 each. The new midrange camper will sell for $26,900. What is the erosion cost of the new camper
Answer:
$30,801,200
Explanation:
Calculation to determine the erosion cost of the new camper
Erosion cost (new camper) = [0.08 × 1,160 × $179,000] + [(2,170 − 1,950) × $64,500]
Erosion cost (new camper)=$16,611,200+$14,190,000
Erosion cost (new camper) = $30,801,200
Therefore the erosion cost of the new camper will be $30,801,200
Fill in the blanks with the words given below.
a. Cancer
b. malignant tumor
c. benign tumor
d. metastasis
e. carcinoma
1. A________is a lump of abnormal cells that, although growing out of control, remains at its original site.
2. A________is an abnormally growing mass of cells that is actively spreading through the body.
3. A_________ is the spread of cancer cells from their site of origin to other sites in the body.
4. An individual with a malignant tumor is said to have_________
5. The most common type of cancer is a_______ this type always originates in tissues that line .
Answer:
1. Benign tumor.
2. Malignant tumor.
3. Metastasis.
4. Cancer
5. Carcinoma
Explanation:
A tissue can be defined as a group of cells that are structurally similar and in close proximity. Tissues are generally responsible for performing specific functions in living organisms such as humans, animals and plants. Therefore, tissues in living organisms function together as a unit.
A tumor can be defined as an abnormal mass of tissue formed when various body cells grow and divide more than its required or fail to when necessary (required). Thus, it usually degenerate into cancerous growths (cancer).
Some of the characteristics and features of tumors and cancer include the following;
1. A benign tumor is a lump of abnormal cells that, although growing out of control, remains at its original site.
2. A malignant tumor is an abnormally growing mass of cells that is actively spreading through the body.
3. A metastasis is the spread of cancer cells from their site of origin to other sites in the body.
4. An individual with a malignant tumor is said to have cancer.
5. The most common type of cancer is a carcinoma this type always originates in tissues that line.
Duck, an accrual basis corporation, sponsored a rock concert on December 29, 2020. Gross receipts were $300,000. The following expenses were incurred and paid as indicated:
Expense Payment Date
Rental of coliseum $25,000 December 21, 2020
Cost of goods sold:
Food 30,000 December 30, 2020
Souvenirs 60,000 December 30, 2020
Performers 100,000 January 5, 2021
Cleaning the coliseum $10,000 February 1, 2021
Performers Cleaning the coliseum Because the coliseum was not scheduled to be used again until January 15, the company with which Duck had contracted did not perform the cleanup until January 8-10, 2020. a. Calculate Duck's net income from the concert for tax purposes for 2019. If an amount is zero, enter "0".
Gross receipts 300,000 ✓
Coliseum rental 25,000
Food 30,000
Souvenirs 60,000
Performers 100,000
a. Calculate Duck's net income from the concert for tax purposes for 2019. If an amount is zero, enter "0". Gross receipts 300,000 Less: Coliseum rental 25,000 Food 30,000 Souvenirs 60,000 Performers 100,000 Cleaning costs Total expenses 215,000 Net income for 2019 85,000
b. What is the true cost to Duck if it had to defer the $100,000 deduction for the performers until 2020? Assume a 5% discount rate and a 21% marginal tax rate in 2019 and 2020. The present value factor for a single sum at 5% for one year is 0.9524. If required, round your answers to the nearest dollar. The present value of the 2020 tax savings is and the cost of the deferral to Duckiss.
Answer:
Duck Corporation
Rock Concert
a) Income Statement for the year ended December 31, 2020:
Gross receipts $300,000
Less: Coliseum rental 25,000
Food 30,000
Souvenirs 60,000
Performers 100,000
Total expenses 215,000
Net income for 2019 85,000
b) The true cost is $116,240.
Explanation:
a) Data and Calculations:
Rental of coliseum $25,000 December 21, 2020
Cost of goods sold:
Food 30,000 December 30, 2020
Souvenirs 60,000 December 30, 2020
Performers 100,000 January 5, 2021
Cleaning the coliseum $10,000
b) The Cleaning expense is excluded because the services had not been rendered as at December 31. The inclusion of the Performers' compensation is necessary because the services had been enjoyed and incurred as at December 31.
c) The true cost = the Present value of the $100,000 performers' compensation plus additional tax expense of $21,000 ($100,000 * 21%) that would have been deducted.
= $116,240 ($95,240 + $21,000)
The efficient market hypothesis suggests that: Multiple Choice while individuals can be irrational, collectively they will not. because individuals are rational, collectively they are also rational. irrationality must a part of every economic model. asset price bubbles are efficient.
Answer: asset price bubbles are efficient.
Explanation:
The efficient market hypothesis simply states that all information are reflected by the share prices.
The efficient market hypothesis suggests that asset price bubbles are efficient. We should note they economic bubbles take place when the price of assets increases more then their true economic value but late falls.
At a movie theater box office, all tickets are sequentially prenumbered. At the end of each day, the beginning ticket number is subtracted from the ending number to calculate the number of tickets sold. Then, ticket stubs collected at the theater entrance are counted and compared with the number of tickets sold. Which of the following situations does this control detect?
a. Some customers presented tickets purchased on a previous day when there wasn't a ticket taker at the theater entrance (so the tickets didn't get torn.)
b. A group of kids snuck into the theater through a back door when customers left after a show.
c. The box office cashier accidentally gives too much change to a customer.
d. The ticket taker admits his friends without tickets.
. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. 6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter.
Question Completion:
Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 38,500 October 28,500 August 87,000 November 15,000 September 56,000 December 15,500 The selling price of the beach umbrellas is $14 per unit. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 65% in the month following sale 5% uncollectible Sales for June totaled $504,000. The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month’s production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be: June 30 91,550 feet September 30 ? feet Gilden costs $0.60 per foot. One-half of a month’s purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $49,290. Required: 1.
Answer:
Milo Company
July Aug. Sept. Total
1. Estimated sales $539,000 $1,218,000 $784,000 $2,541,000
2. Cash collections $489,300 $715,750 $1,026,900 $2,231,950
July Aug. Sept. Oct.
3. Production units 45,775 72,350 51,875 26,475
July Aug. Sept. Total
4. Quantity of Gilden (feet) 236,250 248,450 156,700 641,400
5. Cost of Purchases $141,750 $149,070 $94,020 $384,840
6. Cash disbursements for raw
material purchases $120,165 $145,410 $121,545 $387,120
Explanation:
a) Data and Calculations:
Selling price of the beach umbrellas = $14 per unit
June July Aug. Sept. Oct. Nov. Dec.
Estimated
sales 38,500 87,000 56,000 28,500 15,000 15,500
Sales $504,000 539,000 1,218,000 784,000 399,000 210,000 217,000
Sales Collection:
June July Aug. Sept. Total
Sales on credit 539,000 1,218,000 784,000 $2,541,000
Sales Collection:
30% month of sale 161,700 365,400 235,200 762,300
65% month following 327,600 350,350 791,700 1,469,650
5% uncollectible
Total collections $489,300 $715,750 $1,026,900 $2,231,950
July August September October
Beginning Inventory $75,600 $80,850 $182,700 $117,600
Ending Inventory 80,850 182,700 117,600 59,850
Sales 539,000 1,218,000 784,000 399,000
Finished Goods Inventory:
June July Aug. Sept. Oct. Nov. Dec.
Estimated
sales 36,000 38,500 87,000 56,000 28,500 15,000 15,500
Ending 5,775 13,050 8,400 4,275 2,250
Available 41,775 51,550 85,400 60,275 30,750
Beginning 5,400 5,775 13,050 8,400 4,275
Production 36,375 45,775 72,350 51,875 26,475
Raw materials inventory:
June July Aug. Sept. Oct.
Production units 36,375 45,775 72,350 51,875 26,475
Production needs 145,500 183,100 289,400 207,500 105,900
Ending inventory 91,550 144,700 103,750 52,950
Available materials 237,050 327,800 393,150 260,450
Beginning inventory 91,550 144,700 103,750 52,950
Purchases 236,250 248,450 156,700
Cost of Purchases $141,750 $149,070 $94,020
Payment for purchases:
Accounts payable $49,290
50% month of purchase 70,875 74,535 47,010
50% following purchase 70,875 74,535
Total payments $120,165 $145,410 $121,545
Explain the effects of low price-guarantee on the price.
Answer:
Low price guarantees have adverse effects on consumer behavior. These strategies can cause consumers to become suspicious of the offer and may avoid making the purchase all together.
Low price guarantee is a policy where the seller offer a price is guaranteed to match or beat any other lower price in the market.
Usually, the low price guarantees does persuade the consumers to make purchase, but, it can also have adverse effects on consumer behavior at times.
The strategy of low price-guarantee on the price of the product can cause the consumers to become suspicious and thus, may lead to a decision to avoid making the purchase.
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Vaughn, Inc. had net sales in 2020 of $1,410,300. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $348,200 debit, and Allowance for Doubtful Accounts $2,940 credit. If Vaughn estimates that 10% of its receivables will prove to be uncollectible. Prepare the December 31, 2020, journal entry to record bad debt expense.
Answer:
Date Account Title Debit Credit
Dec. 31 2020 Bad Debt expense $31,880
Allowance for Doubtful Accounts $31,880
Explanation:
Bad debt expense for the period:
= (Estimate of uncollectible receivables) - Allowance for Doubtful accounts credit balance
= (348,200 * 10%) - 2,940
= $31,880
Do airlines practice price discrimination LOADING... ? Explain. Airlines A. engage in price discrimination by charging business travelers and leisure travelers different prices . B. do not engage in price discrimination because they charge lower prices to passengers who will stay at their destination over a Saturday night. C. engage in price discrimination by maintaining the same price on seats even if seats will not be sold . D. do not engage in price discrimination because the marginal cost of flying one additional passenger is low . E. do not engage in price discrimination because their passengers have similar demands.
Answer:
A. engage in price discrimination by charging business travelers and leisure travelers different prices.
Explanation:
Yes, airlines practice price discrimination. They engage in price discrimination by charging business travelers and leisure travelers different prices for the same distance travelled.
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.
Price discrimination refers to the situation in which a business firm sells an identical product to different consumers at different selling price based on reasons that are not in any way associated or related with its manufacturing cost.
The Miller Manufacturing Company has two divisions. The Cutting Division prepares timber at its sawmills. The Assembly Division prepares the cut lumber into finished wood for the furniture industry. No inventories exist in either division at the beginning of 2019. During the year, the Cutting Division prepared 60,000 cords of wood at a cost of $660,000. All the lumber was transferred to the Assembly Division, where additional operating costs of $6 per cord were incurred. The 600,000 boardfeet of finished wood were sold for $2,500,000. Required: Determine the operating income for each division if the transfer price is $9 per cord.
Answer and Explanation:
The computation of the operating income in the case when the transfer price is $9 per cord
Particular Cutting Assembly
Revenue $540,000 $2,500,000
(60,000 × $9)
Cost of service
Incurred $660,000 $360,000
(60,000 × $6)
Transfered in $0 $540,000
Total $660,000 $900,000
Operating income -$120,000 $1,600,000
PLEASE HELP!! Imagine you are applying for a job as a babysitter or as a grass-cutter. Write a cover letter that tells the family why you are qualified for the job. Use a proper business letter writing format
I am a devoted babysitter. I have plenty of experience with children. I know how to cook, I am great with tools. I am very independent and have plenty of potentials. I hope you can trust me with your kids or your yard.
What two factors are necessary for demand?
good or service and its availability in the market.
Answer:
Desire for a good or service and its availability in the market.
Given the information below, answer the following two questions. Firm A Firm B Q 1000 1000 P 1 1 V 0.7 0.2 FC 200 700 A given change in Q will result in a larger change in EBIT for Firm ___ A. A B. B C. More information is needed to answer this question
Answer:
Firm A and Firm B
C. More information is needed to answer this question
Explanation:
a) Data and Calculations:
Firm A Firm B
Q 1000 1000
P 1 1
V 0.7 0.2
Contr 0.3 0.8
FC 200 700
EBIT 100 100
b) More information is certainly required to answer this question. Specifically, the direction of the given change in Q is not indicated. The answer will become clearer with this information. The question to ask is this: is the given change in Q an increase or a decrease?
what are tresholds in auditing?
Answer:
:)
Explanation:
The materiality threshold in audits refers to the benchmark used to obtain reasonable assurance that an audit does not detect any material misstatement that can significantly impact the usability of financial statements.
Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two cost pools: materials handling and setup. The collected data follow:
Standard Model Deluxe Model
Number of machine hours 26,500 31,500
Number of material moves 625 925
Number of setups 85 575
Total estimated overhead costs are $313, 020, of which $183, 750 is assigned to the material handling cost pool and $179, 180 is assigned to the setup cost pool.
Required:
1. Calculate the overhead assigned to each product using the traditional cost system.
2. Calculate the overhead assigned to each product using ABC.
Answer:
Results are below.
Explanation:
a)
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 313,020 / 58,000
Predetermined manufacturing overhead rate= $5.4 per machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Standard= 5.4*26,500= $143,100
Deluxe= 5.4*31,500= $170,100
b)
First, we need to calculate the allocation rates:
Material handling= 183,750 / 1,550= $118.55 per material moves
Setup= 179,180 / 660= $271.48 per setup
Now, we can allocate overhead:
Standard= 118.55*625 + 271.48*85= $97,169.55
Deluxe= 118.55*925 + 271.48*575= $265,759.75
Motorcycle Manufacturers, Inc. projected sales of 51,100 machines for the year. The estimated January 1 inventory is 6,460 units, and the desired December 31 inventory is 7,130 units. What is the budgeted production (in units) for the year
Answer:
51,770 units
Explanation:
With regards to the above, the budgeted production (in unit) for the year is computed as;
= Sales - Beginning inventory + Ending inventory
Given that ;
Sales = 51,100
Beginning inventory = 6,460
Ending inventory = 7,130
Budgeted production in units for the year = 51,100 - 6,460 + 7,130 = 51,770 units
The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation – equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/15) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 Equipment 210,000 What is the amount that would be reported for stockholders’ equity at December 31, 2015?
Answer:
Postal Service
The amount that would be reported for Stockholders' Equity at December 31, 2015 is:
= $130,000.
Explanation:
a) Trial Balance
December 31, 2015:
Cash $15,000
Accounts receivable 11,000
Supplies 4,000
Prepaid insurance (12-month) 6,000
Equipment 210,000
Accounts payable $ 18,000
Accumulated depreciation – equipment 28,000
Note payable, due 6/30/16 70,000
Common stock 42,000
Retained earnings (1/1/15) 60,000
Dividends 14,000
Service revenue 133,000
Advertising expense 21,000
Depreciation expense 12,000
Insurance expense 3,000
Rent expense 17,000
Salaries and wages expense 32,000
Supplies expense 6,000
Totals $351,000 $351,000
Income Statement for the year ended December 31, 2015
Service revenue $133,000
Advertising expense 21,000
Depreciation expense 12,000
Insurance expense 3,000
Rent expense 17,000
Salaries and wages expense 32,000
Supplies expense 6,000 $91,000
Net income $42,000
Statement of Retained Earnings
For the year ended December 31, 2015
Retained earnings (1/1/15) $60,000
Net income 42,000
Dividends (14,000)
Retained earnings (December 31, 2015) $88,000
Equity:
Common stock $42,000
Retained earnings 88,000
Total equity $130,000
The manager of the Quick Stop Corner convenience store (which is open 360 days per year) sells four cases of Stein soda each day (1440 cases per year). Order costs are $8.00 per order. The lead time for an order is three days. Annual holding costs are equal to $57.60 per case. If the manager orders 16 cases each time she places an order, how many orders would she place in a year
Answer:
90 orders she would place in a year
Explanation:
The total annual cases of Stein soda that the manager buys are 1,440 cases. If she were to place 16 cases in a single order then we would divide the total cases bought in a year by the cases bought in a single order to determine the number of orders the manager would place in a year. As shown below:
No. of orders placed in a year = Annual Total Cases bought / Cases purchased in single order
No. of orders placed in a year = 1,440 / 16
No. of orders placed in a year = 90 orders
An essay about umntu ngumntu ngabantu
Batista Company management wants to maintain a minimum monthly cash balance of $19,900. At the beginning of April, the cash balance is $19,900, expected cash receipts for April are $244,400, and cash disbursements are expected to be $253,300. How much cash, if any, must be borrowed to maintain the desired minimum monthly balance
Answer:
the amount must be borrowed is $8,900
Explanation:
The computation of the amount must be borrowed is shown below:
Opening cash balance $19,900
Add: cash receipts $244,400
Less: cash disbursements -$253,300
Cash balance after disbursements $11,000
Minimum monthly cash balance $19,900
Amount to be borrowed $8,900
hence, the amount must be borrowed is $8,900
Using the information below compute the M1 money supply. Category Amount Currency and coin held by the public $ Checking account balances $ Traveler's checks $10 Savings account balances $ Small denomination time deposits $5,000 Money market deposit accounts in banks $1,000 Noninstitutional money market fund shares $2,000 The M1 money supply is equal to: $ nothing
Answer: $2610
Explanation:
Money supply simply means the total amount of money that is in a particular economy at a point in time. Based on the information given, the M1 money supply will be:l the addition of the currency and coin held by the public, the checking account balance and the traveler's checks. This will be:
= $800 + $1800 + $10
= $2610
Therefore, the M1 money supply is $2610.
Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $130,500, allowance for doubtful accounts of $925 (credit) and sales of $1,055,000. If uncollectible accounts are estimated to be 7% of accounts receivable, what is the amount of the bad debts expense adjusting entry
Answer:
the amount of bad debt expense for the adjusting entry is $8,210
Explanation:
The computation of the amount of bad debt expense for the adjusting entry is shown below:
= Unadjusted trial balance × estimated percentage - credit balance of allowance for doubtful accounts
= $130,500 × 7% - $925
= $9,135 - $925
= $8,210
Hence, the amount of bad debt expense for the adjusting entry is $8,210
The cost-plus approach: Multiple Choice uses an assumed reasonable profit margin to determine the stand-alone price. refers to contracts where the contractor is not expected to recover all costs incurred in completing the project. is not allowed under ASC Topic 606 guidance for revenue recognition. refers to contracts that are modified from their original terms during the course of the contract.
Answer:
Uses an assumed reasonable profit margin to determine the stand-alone price.
Explanation:
Is the pricing method in which a resonable profit margin is added to the total product cost to determine the sale price of a product.
For Example
Product A Incurred a total cost of $20 to produce one unit. The company XYZ wants to earn 20% profit margin on the cost of the product, hence the price will be $24 ( $20 x ( 1 + 20% ).
The properly formatted question is as follow
The cost-plus approach:
Uses an assumed reasonable profit margin to determine the stand-alone price.
refers to contracts where the contractor is not expected to recover all costs incurred in completing the project.
is not allowed under ASC Topic 606 guidance for revenue recognition.
refers to contracts that are modified from their original terms during the course of the contract.
The following information pertains to Lance Company.
1. Cash balance per bank, July 31, $8,732.
2. July bank service charge not recorded by the depositor $45.
3. Cash balance per books, July 31, $8,768.
4. Deposits in transit, July 31, $3,500.
5. $2,023 collected for Lance Company in July by the bank through electronic funds transfer. The accounts receivable collection has not been recorded by Lance Company.
6. Outstanding checks, July 31, $1,486.
Required:
Prepare bank reconciliation at July 31, 2022.
Answer and Explanation:
The preparation of the bank reconciliation statement is presented below:
Balance as per bank $8,732.00
Add: Deposit in transit $3,500.00
Less: Outstanding checks -$1,486.00
Adjusted bank balance $10,746.00
Balance as per books $8,768.00
Add: EFT received from customer $2,023.00
10791.00
Less: Service charges -$45.00
Adjusted book balance $10,746.00
The Lance Company's Bank Reconciliation , as at July 31, 2022 is shown in the attached image below.
Bank reconciliation is the process of comparing and reconciling the cash balance recorded in a company's books (the "book balance") with the balance reported by the bank in its statement (the "bank balance"). It aims to identify and resolve any discrepancies between the two balances, ensuring that the company's financial records accurately reflect its actual cash position. The purpose of bank reconciliation is to ensure the accuracy and reliability of the company's financial records.
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Assume you are a hiring manager selecting between two finalist candidates, Candidate A and Candidate B. The successful candidate will earn an annual salary of $250,000. Candidate A will generate $500,000 in revenue with 85% probability and $300,000 in revenue with 15% probability. Candidate B will generate $500,000 in revenue with 50% probability and $250,000 inrevenue with 50% probability.a.What is the expected net revenue of Candidate A
Khalid, who is single, reports the following items for 2020: Salary $40,000 Interest income on U.S. Treasury bonds 8,000 Loss on theft of securities (60,000) Interest income on New York state bonds 12,000 What is Khalid's NOL for 2020
Answer:
Particulars Amount
Salary $40,000
Interest expenses $8,000
AGI $48,000
Less:
Itemized deduction ($60,000)
Personal exemption ($3,950)
Taxable Income ($15,950)
Taxable Income ($15,950)
Personal exemption ($3,950)
Net Operating Loss $12,000
Note: Interest on New York state bonds of $12,000 is an exemption
