On January 1, Year 1, the Hoverman Corporation made amendments to its defined benefit pension plan, resulting in $150,000 of past service costs. The plan has 100 active employees with an average expected remaining working life of 10 years. There currently are no retirees under the plan. Required: Determine the amount of past service costs to be amortized in Year 1 and subsequent years under (a) IFRS and (b) U.S. GAAP.

Answers

Answer 1

Answer:

Check the explanation

Explanation:

a)

In IFRS according to IAS 19 all past service cost is recognized in the net income in the period in which amendment (change) is made by entity for defined benefit pension, it does not matter what is the status of the employees who will benefit the change. So in Year 1 $150000 will be expended completely and in subsequent years the amount is $0

Year 1 =$150000

Subsequent years= $0

b) In US GAAP the past service cost is recorded in Accumulated other comprehensive income in the year of amendment. It is amortized over the future working life of the participants.

Year 1 is year of adoption hence $0 is amortized because $150000 is included in Accumulated other comprehensive income.

Subsequent years: (150000/10=15000) $15000 will be amortized for each year for 10 years.


Related Questions

Peng Company is considering an investment expected to generate an average net income after taxes of $2,600 for three years. The investment costs $54,000 and has an estimated $7,200 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.)

Answers

Answer:

NPV = $-42,124.72

Explanation:

The new present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 =  $-54,000

Cash flow each year in year 1 and 2 = $2,600

Cash flow in year 3 = $2,600 +  $7,200 = $9,800

I = 10%

NPV = $-42,124.72

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.6 ounces $ 4.00 per ounce $ 30.40 Direct labor 0.5 hours $ 10.00 per hour $ 5.00 Variable overhead 0.5 hours $ 5.00 per hour $ 2.50 The company reported the following results concerning this product in June. Originally budgeted output 3,000 units Actual output 3,100 units Raw materials used in production 20,000 ounces Purchases of raw materials 17,400 ounces Actual direct labor-hours 470 hours Actual cost of raw materials purchases $ 45,000 Actual direct labor cost $ 13,000 Actual variable overhead cost $ 3,400 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for June is:

Answers

Answer:

Variable overhead rate variance  $1,050  unfavorable

Explanation:

Variable overhead rate variance is the difference between the standard variable overhead cost allowed for the actual hours worked  and the actual variable overhead incurred for the period

                                                                                             $

470 hours should have cost (470× $ 5.00)                       2,350          

but did cost                                                                         3,400      

Variable overhead rate variance                                     1050  unfavorable

       Variable overhead rate variance  $1,050  unfavorable                

Tasbet Company reported net income of $ 360 comma 000 for the current year. Included in the computation of net income​ was: Depreciation expense $ 70 comma 000 Amortization of a patent ​32,000 Income from an equityminusmethod investment 31 comma 000 Dividends received on equityminusmethod investment 0 Amortization of a bond discount 17 comma 000 Paid a dividend on preferred stock ​80,000 What is the amount of net cash provided by operating activities that would be reported as a result of these​ transactions?

Answers

Answer:

$448,000.00

Explanation:

net cash flow provided by operating activities=net income+depreciation expense+amortization of patent+amortization of bond discount-income from equity investment

net income is $360,000

depreciation expense is $70,000

amortization of patent is $32,000

amortization of bond discount is $17,000

income from equity investment is $31,000

dividend paid to preferred stock is excluded since it relates to financing activities of Tasbet Company

net cash flow provided by operating activities=$360,000+$70,000+$32,000+$17,000-$31,000=$448,000.00  

In the late 1990s, the United States experienced very high GDP growth, record low unemployment rates, and virtually nonexistent inflation. Based on the conclusions of the AD/AS model, this combination of good economic results can be explained by a __________.
a. rightward shift of the aggregate demand.
b. leftward shift of the aggregate demand.
c. rightward shift of the short- or long-run aggregate supply.
d. leftward shift of the short- or long-run aggregate supply.

Answers

Answer:

d. leftward shift of the short- or long-run aggregate supply.

Explanation:

A smaller labor force would usually lead to a reflection in the leftward shift in both short run aggregate supply and potential GDP ( gross domestic product) of the economy. What this means is it would lead to a lower level of equilibrium with GDP ( gross domestic product) and a higher price level.

What does the phrase "Revenue is recognized at the point of sale" mean? a.Revenue is recorded in the accounting records when the goods are received from a supplier and reported on the income statement when sold to the customer. b.Revenue is recorded in the accounting records when the goods are sold to a customer and reported on the income statement when the cash payment is received from the customer. c.Revenue is recorded in the accounting records and reported on the income statement when goods are sold and delivered to a customer. d.Revenue is recorded in the accounting records and reported on the income statement when the cash is received from the customer.

Answers

Answer: C

Revenue is recorded in the accounting records and reported on the income statement when goods are sold and delivered to a customer.

Explanation:

The term revenue recognition at the point of sale refers to the process of recording revenue from manufacturing and selling activities at the time of sale. The revenue recognition principle states a company can record revenue when two conditions are met. They must be realized or realizable, and earned.

g Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $276,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 3% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,200 before adjustment?

Answers

Answer:

accounts receivable = $276,000

total credit sales = $1,000,000

3% of accounts receivable will not be decollete = $276,000 x 3% = $8,280

if allowance for doubtful accounts has a credit balance of $2,200, you must add = $8,280 - $2,200 = $6,080

the adjusting entry should be:

Dr Bad debt expense 6,080

    Cr Allowance for doubtful accounts 6,080

Since allowance for doubtful accounts is a contra asset account it has a credit balance that reduces the value of accounts receivable.

Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,880 hours and the total estimated manufacturing overhead was $516,368. At the end of the year, actual direct labor-hours for the year were 21,700 hours and the actual manufacturing overhead for the year was $516,368. Overhead at the end of the year was:

Answers

Answer:

$4,248 underapplied

Explanation:

The computation of Overhead at the end of the year is shown below:-

Predetermined overhead rate = Actual manufacturing overhead ÷ Estimated Direct labor hours

= $516,368 ÷ 21,880

= 23.6 per hour

Actual overhead applied = Predetermined overhead rate × Actual direct labor-hours

= 23.6 × 21,700

= $512,120

Overhead underapplied = Manufacturing overhead - Actual overhead applied

= $516,368 - $512,120

= $4,248 underapplied

A machine cost $1,238,000 on April 1, 2020. Its estimated salvage value is $139,200 and its expected life is 4 years. Calculate the depreciation expense by straight-line for 2020. (Round answer to 0 decimal places, e.g. 5,275.) Depreciation expense $ Calculate the depreciation expense by double-declining balance for 2021. (Round answer to 0 decimal places, e.g. 5,275.) Depreciation expense $ Calculate the depreciation expense by sum-of-the-years'-digits for 2021. (Round answer to 0 decimal places, e.g. 5,275.) Depreciation expense $ Which method would result in the smallest income amount for 2021

Answers

Answer:

The depreciation expense by straight-line for 2020: $206,025The depreciation expense by double-declining balance for 2021: $619,000The depreciation expense by sum-of-the-years'-digits for 2021: $329,640

Explanation:

Under straight-line method, depreciation expense is (cost - residual value) / No of years = ($1,238,000 - $139,200) / 4 years = $274,700 yearly depreciation expense.

Depreciation expense by straight-line for 2020 will be (April 1, 2020 - Dec. 31, 2020):  $274,700 / 12 x 9 = $206,025.

The double-declining method is otherwise known as the reducing balance method and is given by the formula below:  

Double declining method = 2 X SLDP X BV

SLDP = straight-line depreciation percentage

BV = Book value

SLDP is 100%/4 years = 25%, then 25% multiplied by 2 to give 50% or simply 1/2

Depreciation expense under double-declining method at December 31, 2021: $1,238,000 x 1/2 = $619,000

Under the sum-of-the-years'-digits, the depreciation expense for 2021 will be calculated as follows: 3 / 10 = 30%.

10 was derived by 4 + 3 + 2 + 1 for Year 2020, 2021, etc

($1,238,000 - $139,200) x 30% = $329,640

A company uses the percent of receivables method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable $ 382,000 debit Allowance for uncollectible accounts 570 credit Net Sales 870,000 credit All sales are made on credit. Based on past experience, the company estimates that 5% of receivables are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared

Answers

Answer:

$18,530

Explanation:

The computation of the amount debited to the bad debt expense is shown below:

= Account receivable × estimated uncollectible percentage - credit balance of allowance for uncollectible accounts

= $382,000 ×  5% - $570

= $19,100 - $570

= $18,530

We simply applied the above formula so that the amount debited to bad debt expense could come

Micro Miller Company’s budgeted sales for April were estimated at $700,000, sales commissions at 4% of sales, and the sales manager's salary at $80,000. Shipping expenses were estimated at 1% of sales and miscellaneous selling expenses were estimated at $1,000, plus 0.5% of sales. Determine the budgeted selling expenses on a flexible budget for April.

Answers

Answer:

$119,500

Explanation:

Solution:

Recall that

The budgeted sales for Micro Miller company = $700,000,

Sales commissions of = 4%

The salary of sales manager = $80,000.

Now,

Since Budgeted Sales is $700,000

Then

sales commissions is calculated as follows:

Sales Commission=0.04*700000(A)= 28000

Thus,

Sales Manager's Salary(B) = $80,000

Hence,

The shipping expenses = 0.01*700000 = $7000

Miscellaneous selling expenses becomes

Fixed = 1000

Variable =3500 700000 * 0. 5 = 119500

The budgeted selling expenses on a flexible budget for April is $119,500.

The calculation is as follows:

Sales commission $28,000  (4% of $700,000)

Sales manager salary  $80,000

Shipping expenses  $7,000  (1% of $700,000)

Miscellaneous selling expenses

Fixed  $1,000

Variable  $3,500  (0.5% of $700,000)

Budgeted selling expenses  $119,500

Therefore we can conclude that The budgeted selling expenses on a flexible budget for April is $119,500.

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Exercise 24-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $ 60,000 $ 40,000 $ 70,000 $ 125,000 $ 35,000 $ 330,000 Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal place.)

Answers

Answer:

3.08 years

Explanation:

The computation of payback period is shown below:-

Payback period = Year up to which cumulative cash flow are negative + (Cumulative cash flow in period in A  ÷ cash flow of immediately year succeeding the period in A )

Year    Cash flow      cumulative cash flow

0          ($180,000)        ($180,000)

1            $60,000          ($120,000)

                            ($180,000 - $60,000)

2           $40,000           ($80,000)

                           ($120,000 - $40,000)

3           $70,000           ($10,000)

                           ($80,000 - $70,000)

4          $125,000           $115,000

(it will be end here because it excess from here)

Now we will put it into formula

Pay back period = 3 + (10,000 ÷ 125,000)

= 3 + 0.08

= 3.08 years

Which of the following would cause the supply of pesos to decrease, ceteris paribus? Ford opens automobile assembly plant in Mexico Interest rates increase in the United States Mexican GDP increases Tourism in Mexico decreases due to an outbreak of the flu Interest rates increase in Mexico

Answers

Answer:

Ford opens automobile assembly plant in Mexico.

Explanation:

If the United States increase their investment in Mexico by for example setting up a new Ford assemble plant in mexico, the supply of Mexican pesos to the foreign exchange market and the dollar price of the peso will decrease.

Answer: E

Explanation: Interest Rates increase in Mexico.

true or false Every risk an individual faces can be insured

Answers

Answer:

true

Explanation:

beacuse the faces of industrtions

Answer: False

Explanation:

Because not everyone has insurance

Harrison Corporation is studying a project that would have an eight-year life and would require a $300,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project: Sales $500,000 Less cash variable expenses 200,000 Contribution margin 300,000 Less fixed expenses: Fixed cash expenses $150,000 Depreciation expenses 37,500 187,500 Net operating income $112,500 The company's required rate of return is 10%. The payback period for this project is closest to:

Answers

Answer:

The payback period for this project is closest to 2 years

Explanation:

Initial investment = $300,000

Sales = $500,000

Cash variable expenses = ($200,000)

Contribution margin = 300,000

Fixed cash expenses = $150,000

Depreciation expenses = $37,500

Total Fixed expenses: $150,000 + $37,500 = ($ 187,500 )

Net operating income = $112,500

Annual cash inflows = Net operating income + Depreciation

= $112,500 + $37,500

= $150,000

Payback period = Initial investment ÷ Annual cash inflows

= $300,000 ÷ $150,000 = 2 years

7.The firm has an inventory period of 84.6 days, an accounts payable period of 43.2 days, and an accounts receivable period of 41.7 days. Management is considering an offer from their suppliers to pay within 10 days and receive a discount of 2 percent. If the new discount is taken, the accounts payable period is expected to decline by 30.4 days. What will be the new operating cycle given the change in the payables period

Answers

Answer: 126.3 days.

Explanation:

The Operating Cycle essentially refers to how long it takes a business to convert inventory to cash. The entire period between production, to selling to recovering money from Receivables is incorporated here.

The formula therefore is,

= Days Sales in inventory + Days Sales Receivables

= 84.6 + 41.7

= 126. 3 days

Which assertions about statement 1 and statement 2 is true? Statement 1: 10,000 bonds sold by Echo Corporation were bought by a variety of investors. If Echo received $10 million from the sale of these bonds, then bonds were more likely sold on the secondary market than on the primary market. Statement 2: Bonds issued by Foxtrot have a face value of $1,000 and pay annual coupons with the next coupon due in 1 year. If the price of the bond is greater than $1,000, then the bond’s coupon rate is more than its YTM.

Answers

Answer: E. Statement 1 is false and statement 2 is true.

Explanation:

Statement 1 is false because when bonds are sold in the secondary market, the issuing company does not get anything from it. That is because sales in the secondary market are between bond holders and those who would like to buy the bond. For the company to make money from a bond issue, they would have to issue it in the Primary Market where it would come directly from them.

Statement 2 is true because when the coupon rate of a bond is higher than it's YTM, it signals that the bond is a PREMIUM bond which means that it is selling at a rate above Par. It is a measure showing that the bond is not very risky therefore investors charge less on the bond than the coupon rate. If the Coupon rate was lower than the YTM that would mean that investors consider the bond risky and so are charging more to hold it and this would reduce the price of the bond below it's face value.

An employee earns $5,550 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $184 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $152 and contributes $76 to a retirement plan each month. What is the amount of net pay for the employee for the month of January

Answers

Answer:

$4,713.425

Explanation:

The computation of amount of net pay for the employee for the month of January is shown below:-

Deductions = (Gross earning × Social security tax rate) + (Gross earning × Medicare tax rate) + Federal income taxes + Health insurance + Contribution of retirement plan

=  ($5,550 × 6.2%) + ($5,550 × 1.45%) + $184 + $152 + $76

= $344.1 + $80.475 + $184 + $152 + $76

= $836.575

Net pay = Gross earning - Deductions

= $5,550 -  $836.575

= $4,713.425

Therefore for computing the net pay we simply applied the above formula.

Each unit of finished product requires 3 feet of raw materials. The company maintains raw materials inventory equal to 2,000 feet plus 10% of the next month's expected production needs. The raw material used in Dustman Manufacturing Corporation's product costs $4.50 per foot. What is the value of raw material that Dustman Manufacturing should plan on purchasing for the month of February?

Answers

Answer: $99,000

Explanation:

Given Data:

Finished products = 1 unit requires 3 feet of material

Raw material inventory = 2000 units + 10% for next month.

Cost of raw materials = $4.50/foot

Therefore:

Since Dustman manufacturing maintains an inventory of 2000 units + 10% for next month.

Total units needed for February would be

= 20,000 units + 10% * 20,000

= 20,000 + 2000

= 22,000 units

Value of raw materials for February

= 22000 units * $4.50

= $99,000

Discussion Questions What project management tasks should Kelvin perform before his next meeting? What change management tasks should Kelvin perform before his next meeting, and how do these tasks fit within the project management process? Had you been in Kelvin’s place, what would you have done differently to prepare for this meeting?

Answers

Answer:

The overview of that same given problem is outlined in the following portion on the explanation.

Explanation:

(1)...

Kelvin will organize a meeting that comprises each trustee of suspense to keep them informed of the mission design communicate, advise to involve all those who may be concerned about the undertaking. All due respect, identity management is the responsibility of everyone in the organization.

(2)...

Kelvin became evidently up to date in ventures. His entitlements with either the beginning of the explanation of his undertaking indicate that he organized without grabbing the task's approval from alternate collaborators.

His key priorities would be to construct a point-by-point business plan as well as assign portions of something to other selection makers. By splitting the task, Kelvin would have the freedom to focus on his project managing operation, whilst the corresponding chiefs might have become experts in interpreting the job, the sets of capabilities assigned to the execution of the task, the start and end deadlines of the contract, the calculation including its effort needed for both the completion costs as well as the identification of circumstances between as well as between chores.

(3)...

Reconsidering organizational change assignments seems to be certainly just something Kelvin requires to reconstitute already when he ends up going with his next conference.

Such adjustments that I will make comprise of revamping the framework of job breakup, as well as internal engagement before and after the development's initial stages. Mostly during the conference, he specifies the idea of his strategy, like:

Tags provided for activities. List among all-time limits. Description of weekly modifications It gets insulin resistance to its management strategy after the presentation.

Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 8.3 grams $ 2.90 per gram Direct labor 0.4 hours $ 29.00 per hour Variable overhead 0.4 hours $ 7.90 per hour The company produced 6,100 units in January using 40,210 grams of direct material and 2,470 direct labor-hours. During the month, the company purchased 45,300 grams of the direct material at $2.60 per gram. The actual direct labor rate was $28.30 per hour and the actual variable overhead rate was $7.70 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for January is:

Answers

Answer:

Manufacturing overhead rate variance= $494 favorable

Explanation:

Giving the following information:

Variable overhead 0.4 hours $ 7.90 per hour

The company produced 6,100 units in January using 2,470 direct labor-hours.

The actual variable overhead rate was $7.70 per hour.

To calculate the variable overhead rate variance, we need to use the following formula:

Manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

Manufacturing overhead rate variance= (7.9 - 7.7)*2,470

Manufacturing overhead rate variance= $494 favorable

Your client has $80,000 invested in stock A. She would like to build a two-stock portfolio by investing another $80,000 in either stock B or C. She wants a portfolio with an expected return of at least 15% and as low a risk as possible, the standard deviation must be no more than 25%. Expected Return Standard Deviation Correlation With A A 18% 30% 1.0 B 17% 25% 0.3 C 15% 15% 0.4_____

Answers

Answer: Please see below for answer

Explanation:

Expected Return  Standard Deviation   Correlation With A  

 A 18%                         30%                        1.0  

B     17%                       25%                         0.3

C   15%                     15%                              0.4_____

Expected return of A (RA) = 18%

Expected return of B (RB) = 17%

Standard Deviation of A (σA) = 30%

Standard Deviation of B (σB) = 25%

Weight of A (WA) = 50% (Since equal amount of $80,000 is being invested)

Weight of B (WB) = 50%

Correlation = 0.3

Portfolio Returns = WARA + WBRB = (18%*50%) + (17%*50%) = 17.5%

Portfolio Standard Deviation = (WA2 * σA2 + WB2 * σB2 + 2*(WA)*(WB)*CorrelationAB* σA* σB)(1/2)

= [(50%2 X 30%2) + (50%2 X 25%2) + (2 X 50% X 50%X 0.3 X 30% X 25%)](1/2)

=0.0025 +0.015625+SQR 0.01125

=0.0025+0.015625+0.1061=0.1241= 12.4%

If Invested in Stock C

Expected return of A (RA) = 18%

Expected return of C (RC) = 15%

Standard Deviation of A (σA) = 30%

Standard Deviation of C (σC) = 15%

Weight of A (WA) = 50% (Since equal amount of $80,000 is Being invested)

Weight of C (WC) = 50%

Correlation = 0.4

Portfolio Returns = WARA + WCRC = (18%*50%) + (15%*50%) = 16.5%

Portfolio Standard Deviation = (WA2 * σA2 + WC2 * σC2 + 2*(WA)*(WC)*CorrelationAC* σA* σC)(1/2)

= [(50%²X 30%²) + (50%² X 15%²) + (2 X 50% X 50%X 0.4 X 30% X 15%)]^1/2

=  0.0025+0.005625+ SQR 0.009= 0.1029= 10.29%= 10.3%

The  expected return and standard deviation  if invested in Stock B is 17.5% and  12.4% while that of  STOCK C is 16.5% and 10.2 % but the client wants  expected return of at least 15% and at low risk as possible with standard deviation not more than 25%, it is advised that the client invest in stock C as the values obtained are more towards her choice.

All of the following are arguments in favor of social responsibility except: Select one: a. Corporate action to cure social problems makes some government regulation of corporate activity unnecessary. b. Results of social action are difficult to measure in terms of the bottom line. c. Societal improvement is good for business. d. It is cheaper to prevent problems than to cure them.

Answers

Answer:

Option B                                    

Explanation:

In simple words, Social accountability requires that companies will behave in a way that promotes community in order to increase the shareholder interest.  lnvestors as well as customers looking for projects which are not really successful but also commit to the health of people and the ecosystem are becoming progressively crucial for public accountability.  

Thus, from the above we can conclude that the correct option is B.  

Social responsivity is the ethical framework that suggest that an individual has an obligation to work. Also to cooperate with the individuals and the organizations to work.

CSR is the corporate social responsibility is a good business sense is the responsibility of the business to take care and contribute to the economic development of the nation.  Hence as a result of which the social actions are evaluated in the context of the bottom line.

Hence the option B is correct.

Learn more about the arguments in favor of social responsibility.

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Which is a short-term consequence of making a late payment on your bill

Answers

Answer:

Which is a short-term consequence of making a late payment on your bill? There will be a late fee added to the bill.

The short term consequences are the effects experienced for a short time. The short term consequence of default in the bill payment is the addition of late fees.

What is a bill?

The bill can be given as the statement regarding the money owned by the user for the goods and the services he uses.

The bill payment can be for the services such as electricity, water, food and many more. The short term consequence that can be related with the bill is one which can be resolved and not make the major loss to the individual.

The short term payment for the lack of paying the bill is the addition of the late fees.

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C Corporation is investigating automating a process by purchasing a machine for $792,900 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $132,500 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $21,100. The annual depreciation on the new machine would be $88,100. The simple rate of return on the investment is closest to (Ignore income taxes.):

Answers

Answer:

The simple rate of return= 53.2%

Explanation:

Annual Return from the old machine 132,500 - 88,100= 44,400

Annual return from the sale of the old machine =21,100/9=2433.333333

Total annual return - 2433.33 + 44,400  =46833.33

Average investment = $(792,900 + 0)/9 = 88100

Simple average return = average annul return/ Average investment

Average investment = (Initial cost + salvage value)/2

Simple average return = (46,833.33/ 88,100)  ×  100 = 53.159

The simple rate of return= 53.2%

The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company.

Account Title Debits Credits
Cash $91,000
Accounts receivable 186,000
Inventory 298,000
Prepaid expenses 174,000
Equipment 346,000
Accumulated depreciation $123,000
Investments 166,000
Accounts payable 73,000
Interest payable 33,000
Deferred revenue 93,000
Income taxes payable 43,000
Notes payable 265,000
Allowance for uncollectible accounts 29,000
Common stock 413,000
Retained earnings 189,000
Totals $1,261,000 $1,261,000

Additional information:

1. Prepaid expenses include $146,000 paid on December 31, 2021, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility.
2. Investments include $43,000 in Treasury bills purchased on November 30, 2021. The bills mature on January 30, 2022. The remaining $123,000 is an investment in equity securities that the company intends to sell in the next year.
3. Deferred revenue represents customer prepayments for magazine subscriptions. Subscriptions are for periods of one year or less.
4. The notes payable account consists of the following:
a. a $53,000 note due in six months.
b. a $134,000 note due in six years.
c. a $78,000 note due in three annual installments of $26,000 each, with the next installment due August 31, 2022. The common stock account represents 413,000 shares of no par value common stock issued and outstanding. The corporation has 826,000 shares authorized.

Required:
Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2021.

Answers

Answer:

A balance sheet for Weismuller publishing for December 31 2021 was prepared and recorded in the explanation section below

Explanation:

Solution

COMPANY: WEISMULLER PUBLISHING Balance Sheet At December 31 2021 Assets

Current assets:

Cash and cash equivalents ($91,000 + $43000)        $134000

Short term investments ($166,000 - $43000)             $123000

The net accounts receivable ($186,000 =$29,000)    $175,000

Inventory                                                                         $298,000

Prepaid expense [174,000-(14600/2)]                           $101,000

The total current assets                                                $813,000

Note: Kindly find an attached copy of the [art of the complete solution to this question below

Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O’Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2016, O’Donnell invests a building worth $130,000 and equipment valued at $140,000 as well as $60,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances.

To entice O'Donnell to join this partnership, Reese draws up the following profit and loss agreement:

- O'Donnell will be credited annually with interest equal to 10 percent of the beginning capital balance for the year
- O'Donnell will also have added to his capital account 15 percent of partnership income each year (without regard for the preceding interest figure) or $7,000, whichever is larger. All remaining income is credited to Reese.
- Neither partner is allowed to withdraw funds from the partnership during 2013. Thereafter, each can draw $5,000 annually or 20 percent of the beginning capital balance for the year, whichever is larger.
The partnership reported a net loss of $8,000 during the first year of its operation. On January 1, 2014, Terri Dunn becomes a third partner in this business by contributing $10,000 cash to the partnership. Dunn receives a 20 percent share of the business's capital. The profit and loss agreement is altered as follows:
- O'Donnell is still entitled to (1) interest on his beginning capital balance as well as (2) the share of partnership income just specified.
- Any remaining profit or loss will be split on a 5:5 basis between Reese and Dunn, respectively.

Partnership income for 2014 is reported as $64,000. Each partner withdraws the full amount that is allowed. On January 1, 2015, Dunn becomes ill and sells her interest in the partnership (with the consent of the other two partners) to Judy Postner. Postner pays $75,000 directly to Dunn. Net income for 2015 is $64,000 with the partners again taking their full drawing allowance On January 1, 2016, Postner withdraws from the business for personal reasons. The articles of partnership state that any partner may leave the partnership at any time and is entitled to receive cash in an amount equal to the recorded capital balance at that time plus 10 percent

a. Prepare journal entries to record the preceding transactions on the assumption that the bonus (or no revaluation) method is used. Drawings need not be recorded, although the balances should be included in the closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest dollar amount.)

b. Prepare journal entries to record the previous transactions on the assumption that the goodwill (or revaluation) method is used. Drawings need not be recorded, although the balances should be included in the closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest dollar amount.)

Answers

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Calculate the contribution to total performance from currency, country, and stock selection for the manager in the example below. All exchange rates are expressed as units of foreign currency that can be purchased with 1 U.S. dollar. (Do not round intermediate calculations. Round your answers to 2 decimal places. Input all amounts as positive values.) EAFE Weight Return on Equity Index E1/E0 Manager's Weight Manager's Return Europe 0.2 11 % 1.2 0.32 10 % Australasia 0.4 18 0.7 0.4 22 Far East 0.4 16 1.4 0.28 22

Answers

Answer:

Check the explanation

Explanation:

Currency selection: EAFE/ Manager weight × Currency appreciation(E1/E0 -1)

EAFE: [0.50×(1.1-1)] + [0.20 × (1.2-1)] + [0.30 × (1.3-1)] = 18.0%

Manager: [0.40×(1.1-1)] + [0.55 × (1.2-1)] + [0.05 × (1.3-1)]= 16.5%

Loss of 1.5% relative to EAFE

Country selection:

EAFE/ Manager weight × Return on Equity Index

EAFE: 0.5×12% + 0.2 × 16% + 0.30 × 17% = 14.3%

Manager: 0.4×12% + 0.55 × 16% + 0.05 × 17% = 14.45%

Loss of 0.15% relative to Manager

stock selection : (Manager’s return - Return on Equity Index) × Manager weight

[ (14% - 12%) × 0.4] + [ (16% - 16%) × 0.55] + [(16% - 17%) × 0.05] = -7.5%

Loss of 7.5% relative to EAFE

Grant Company gathered the following reconciling information in preparing its July bank reconciliation: Cash balance per books, 7/31 $3,500 Deposits in transit 150 Notes receivable and interest collected by bank 850 Bank charge for check printing 20 Outstanding checks 2,000 NSF check 170 The adjusted cash balance per books on July 31 is a. $4,160. b. $4,010. c. $2,310. d. $2,460.

Answers

Answer:

a. $4,160.

Explanation:

The bank reconciliation is one done between the balance per the books and balance per the bank statement. This is usually as a result of transactions known as reconciling items.

These are items that have either been recognized in books but yet to be recorded by the bank or vice versa, transactions recorded wrongly by one of the parties etc.

The adjusted cash book balance is one that contains the necessary adjustments to transactions captured in the bank statement but yet to be recorded in the books.

The adjusting items are

Notes receivable and interest collected by bank 850 Bank charge for check printing 20NSF check 170

Hence the adjusted cash balance

= $3500 + $850 - $20 - $170

= $4,160

Library, Inc. has 2,500 shares of 4%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2017, and December 31, 2018. The board of directors declared and paid a $3,000 dividend in 2017. In 2018, $18,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2018?

Answers

Answer:

preferred stocks = 2,500 stocks x 4% x $50 par value = $5,000 preferred dividends per year

common stock = 50,000 stocks outstanding of $1 par value

in 2017, $3,000 in dividends are distributed, all to preferred stocks

In 2018, $18,000 in dividends are distributed, $7,000 to preferred stock ($2,000 cumulative from last year and $5,000 from this year) and $11,000 are distributed to common stockholders.

In 2018, each preferred stock received = $7,000 / 2,500 stocks = $2.80 per preferred stock. Each common stockholder received $11,000 / 50,000 = $0.22 per common stock.

Data collected from selected major metropolitan areas in the eastern United States show that 5% of individuals living within the city limits move to the suburbs during a one-year period, while 2% of individuals living in the suburbs move to the city during a one-year period.

Prepare the matrix of transition probabilities.

Answers

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