On May 31, the Cash account of Teasel had a normal balance of $5,400. During May, the account was debited for a total of $12,600 and credited for a total of $11,900. What was the balance in the Cash account at the beginning of May?
a. A $0 balance.
b. A $6,100 debit balance.
c. A $6,100 credit balance.
d. A $4,700 debit balance.
e. A $4,700 credit balance.

Answers

Answer 1

Answer:

d. A $4,700 debit balance.

Explanation:

Note that the cash account is an asset account that a debit increases and a  credit reduce it, hence, the  balance at the beginning of May would be increased by debit entry and decreased as a result of the credit entry as shown thus:

closing balance=beginning balance+debit-credit

closing balance=$5,400

beginning balance=unknown

debit=$12,600

credit=$11,900

$5400=X+$12,600-$11,900

X=$5,400-$12,600+$11,900

X=$4,700(debit)


Related Questions

Rosina purchased one 15-year bond at par value when it was initially issued. This bond has a coupon rate of 7 percent and matures 13 years from now. If the current market rate for this type and quality of bond is 7.5 percent, then Rosina should expect: the bond issuer to increase the amount of all future interest payments. the yield to maturity to remain constant due to the fixed coupon rate. to realize a capital loss if she sold the bond at today's market price. today's market price to exceed the face value of the bond. the current yield today to be less than 7 percent.

Answers

Answer:

to realize a capital loss if she sold the bond at today's market price.

Explanation:

Given that

NPER is 13

RATE is 7.5%

PMT is 7% of $1,000

Future value be $1,000

We need to find out the present value

So,

The current price of the bond is:

=PV(7.5%,13,7%*1000,1000)

=$959.37

Now if she wants to sell the bond now, so the value should be less than the face value due to which there should be the capital loss  

explain the term CEO in an organisation​

Answers

Answer:

The chief executive officer (CEO) is the top position in an organization and is responsible for implementing existing plans and policies, ensuring the successful management of the business and setting future strategy. The CEO is ultimately responsible for the success or failure of the organization.

Sanford Co. sells $500,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021.

Required:
Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end.

Answers

Answer:

Sanford Co.

Bond Amortization Schedule  

Period     PV           PMT                Interest                FV

1          $468,951.03         $25,000.00         $28,137.06         $472,088.09

2        $472,088.09         $25,000.00        $28,325.29          $475,413.38

Year #1 end

3        $475,413.38         $25,000.00         $28,524.80          $478,938.18

4        $478,938.18         $25,000.00         $28,736.29         $482,674.47

Year #2 end

5      $482,674.47         $25,000.00         $28,960.47         $486,634.94

6     $486,634.94         $25,000.00          $29,198.10          $490,833.04

Year #3 end

7    $490,833.04          $25,000.00        $29,449.98         $495,283.02

8    $495,283.02         $25,000.00         $29,716.98         $500,000.00

Year #4 end

Explanation:

a) Data and Calculations:

Face value of bonds = $500,000

Proceeds from bonds = $468,951

Bonds Discounts = $31.049

Coupon interest rate = 10%

Effective interest rate = 12%

N (# of periods)  8

I/Y (Interest per year)  12

PMT (Periodic Payment)  25000

FV (Future Value)  500000

Results

PV = $-468,951.03

Sum of all periodic payments $200,000.00

Total Interest $231,048.97

Petrox Oil Co. is considering a project that will have fixed costs of $12,000,000. The product will be sold for $37.50 per unit and will incur a variable cost of $12.80 per unit.

Given Petrox's cost structure, it will have to sell __________ units to break even on this project (Q_BE).

Petrox Oil Co.'s marketing sales director doesn't think that the market for the firm's goods is big enough to sell enough units to make the company's target operating profit of $15,000,000. In fact, she believes that the firm will be able to sell only about 150,000 units. However, she also thinks the demand for Petrox Oil Co.'s product is relatively inelastic, so the firm can increase the sale price. Assuming that the firm can sell 150,000 units, what price must it set to meet the CFO's EBIT goal of $15,000,000?

a. $192.80
b. $221.72
c. $241.00
d. $202.44

Answers

Answer:

Fixed costs = $12,000,000

Selling price = $37.50

Variable cost = $12.80

hope this helps

At the given cost structure, Petrox have to sell 485,830 units to break-even on this project .The selling price to to be set to meet the profit of $15,000,000 is  $192.80. Thus, the correct answer is option A.

What is break-even ?

The break-even point occurs when total cost and total revenue are equal. Though opportunity costs have been paid and capital has received the risk-adjusted, expected return, there is no net loss or gain. In short, all necessary costs are met, and there is no profit or loss.

The break even units is calculated as,

Break-even units = Fixed Cost  / Contribution Margin

                             = Fixed Cost / Sale Price - Variable Cost

                              = $12,000,000/ $37.50-$12.80

                                = 485,830 units

The price that needed to be set is calculated as,

Target units=Fixed Costs+ Target EBIT/selling price-variable cost

Assume selling price is X

150,000= ($12,000,000+$15,000,000) / X-12.80

150,000=27,000,000 / X-12.80

150,000× (X-12.80)=27,000,000

X - 12.80=27,000,000 / 150,000

X-12.80 = 180

X = 180+12.80

X= $192.80

Therefore, the break-even units is 485,830 and the the price to be set is $192.80 to meet the CFO's EBIT goal of $15,000,000.

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Pine Street Inc. makes unfinished bookcases that it sells for $58.09. Production costs are $37.97 variable and $10.12 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $73.08. Variable finishing costs are expected to be $6.64 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases.

Answers

Answer:

Pine Street should sell finished bookcases.

Explanation:

                                  Differential analysis

                                 Sell unfinished  Process further  Net income

                                                                                        Increase (decrease)

Sale price per unit        58.09                    73.08                  14.99

Cost per unit

Variable                         37.97                     44.61                  -6.64

Fixed                              10.12                      10.12                      0

Total                              48.09                     54.73                  8.35

Net income per unit      10                         18.35                  8.35

So, the book cases should be sold after processed further.

Entries for Discounted Note Payable A business issued a 90-day note for $57,000 to a creditor on account. The note was discounted at 8%. Assume a 360-day year.
a. Journalize the entry to record the issuance of the note. For a compound transaction, if an amount box does not require an entry, leave it blank. If necessary, round to one decimal place. Accounting numeric field
b. Journalize the entry to record the payment of the note at maturity.

Answers

Answer:

A. Dr Accounts payable 55,830

Dr Interest expense 1170

Cr Notes payable 57,000

B. Dr Notes payable 57,000

Cr Cash 57,000

Explanation:

A. Preparation of the journal entry to record the issuance of the note.

Dr Accounts payable 55,830

(57,000-1170)

Dr Interest expense (57,000*8%*90/360) 1170

Cr Notes payable 57,000

(To record the issuance of the note)

B. Preparation of the journal entry to record the payment of the note at maturity.

Dr Notes payable 57,000

Cr Cash 57,000

(to record the payment of the note at maturity)

MC Qu. 120 Levelor Company's flexible budget shows... Levelor Company's flexible budget shows $10,640 of overhead at 75% of capacity, which was the operating level achieved during May. However, the company applied overhead to production during May at a rate of $2.20 per direct labor hour based on a budgeted operating level of 6,050 direct labor hours (90% of capacity). If overhead actually incurred was $11,106 during May, the controllable variance for the month was:

Answers

Answer: $466 Unfavorable

Explanation:

The Controllable variance is found by the formula:

= Flexible budget overhead - Actual Overhead incurred

= 10,640 - 11,106

= -$466

As this is a negative, it is an Unfavorable variance because it shows that actual overhead was higher than planned.

How is a monopolistically competitive market similar to a perfectly competitive​ market? A. Producers with market power set their own prices. B. Both have differentiated products with close substitutes. C. There are no restrictions on the entry of new firms. D. Both have homogeneous products with no close substitutes. Which of the following common features do monopolistically competitive markets and monopolies​ share? A. Barriers restrict new firms from entering. B. Consumers with market power set prices. C. Firms face​ downward-sloping demand curves. D. Producers with no market power set their own prices.

Answers

Answer:

c

c

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopolistic competition has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants  

When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero

If firms are earning negative economic profit, in the long run, firms leave the industry.  This drives economic profit to zero

in the long run, only normal profit is earned

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.

An example of a monopoly is a utility company

Factory overhead costs may include all of the following EXCEPT: Group of answer choices selling costs. indirect labor costs. factory rent. indirect material costs.

Answers

Answer:

selling costs

Explanation:

Factory overhead costs are the cost associated with running a manufacturing facility. Factory overhead is also known as manufacturing overhead or work overhead.

Examples of factory overhead include

indirect labor costs

factory rent

indirect material costs.

depreciation of plants and machinery

Sales and administrative cost

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Janine, currently enrolled in a 3-star plan,
discovers there is 5-star plan available where
she lives. She asks her agent, Josh, to enroll
her in the 5-star plan. Josh can advise Janine
of each of the following except:
Josh should tell Janine that she can only change her current plan to a 5-
star plan during the Annual Election Period.
Josh should tell Janine that she can only use the 5-Star SEP once per
calendar year.
Josh should tell Janine that she can change her current plan to a 5-star

Answers

Answer:

Janine and Josh

Josh can advise Janine  of each of the following except:

Josh should tell Janine that she can only change her current plan to a 5-

star plan during the Annual Election Period.

Explanation:

The Special Election Period (SEP) for the 5-star Medicare Plan lasts one week, that is, between Nov. 30 and Dec. 8.  However, there is an Annual Enrollment Period (AEP) that lasts from October 15th to December 7th.  During the annual enrollment period, any plan holder can change her Medicare plan, depending on its availability in her area.

Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers issued $65,000,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of $73,100,469. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
Required:
For all journal entries with a compound transaction, if an amount box does not require an entry, leave it blank.
1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.
2. Journalize the entries to record the following:
a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.)
b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.)
3. Determine the total interest expense for Year 1. Round to the nearest dollar.
4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest?
5. Compute the price of $73,100,469 received for the bonds by using the present value tables

Answers

Answer:

Rodgers Corporation

Journal Entries:

1.  July 1, Year 1:

Debit Cash $73,100,469

Credit Bonds Payable $65,000,000

Credit Bonds Premium $8,100,469

To record the issuance of bonds at a premium.

2. a) December 31, Year 1:

Debit Interest Expense $3,494,976.55

Debit Amortization $405,023.45

Credit Cash $3,900,000.00

To record the first semi-annual interest payment, including amortization.

b) June 30, Year 2:

Debit Interest Expense $3,494,976.55

Credit Amortization $405,023.45

Credit Cash $3,900,000.00

To record the second semi-annual interest payment, including amortization.

3. The total interest expense for Year 1 is $3,494,976.55

4. Yes.  The bonds are issued at a premium.  So the bond proceeds will always be greater than the face amount, and the contract rate (coupon rate) will always be greater than the market (effective) rate.

5. The price of $73,100,469 received for the bonds by using the present value tables is $1,124.62 ($73,100,469/65,000) per $1,000.

Explanation:

a) Data and Calculations:

Face value of bonds issued = $65,000,000

Price received from the issue  $73,100,469

Premium received =                   $8,100,469

Period of maturity = 10 years

Coupon interest rate = 12%

Market (effective) interest rate = 10%

Payment of interest = semiannually on December 31 and June 30

Analysis of Journal Entries:

1.  July 1, Year 1:

Cash $73,100,469 Bonds Payable $65,000,000 Bonds Premium $8,100,469

2. a) December 31, Year 1:

Interest Expense $3,494,976.55 Amortization $405,023.45 Cash $3,900,000.00

b) June 30, Year 2:

Interest Expense $3,494,976.55 Amortization $405,023.45 Cash $3,900,000.00

N (# of periods)  20

I/Y (Interest per year)  10

PMT (Periodic Payment)  3900000

FV (Future Value)  65000000

Results

PV = $73,100,439

Sum of all periodic payments = $78,000,000.00

Total Interest $69,899,569

and​ Associates, a law​ firm, paid $30000 for 12​ months' rent in advance on October 1 of the current year. The​ company's fiscal​ year-end is December 31. Prepare the journal entries for the rent payment on October 1 and the necessary adjusting journal entry on December 31. Omit explanations

Answers

Answer and Explanation:

The journal entries are shown below:

On Oct 1

Rent expense Dr $30,000

      to cash $30,000

(being cash paid)

Here rent expense is debited as it increased the expense and credited the cash as it decreased the assets

On Dec 31

Rent expense Dr ($30,000 × 9 ÷ 12) $22,500

     To prepaid rent $22,500

(being rent expense is recorded)

Here ent expense is debited as it increased the expense and credited the prepaid rent as it decreased the assets

Professional service organizations include __________.

Answers

Answer:

Accenture, Ernst and Young, KPMG, Deloitte.

At December 31, Hawke Company reports the following results for its calendar year.

Cash sales $1,432,910
Credit sales $3,376,000

In addition, its unadjusted trial balance includes the following items.

Accounts receivable $1,022,928 debit
Allowance for doubtful accounts $11,560 debit

Required:
Prepare the adjusting entry for this company to recognize bad debts

Answers

The adjusting entries for acknowledging the bad debts would be:

a). Bad Debts Expense                  $50 640

Allowance for Doubtful Accounts                     $50 640

b). Bad Debts Expense                 $48089.1

Allowance for Doubtful Accounts                     $48089.1

Bad debts:

Bad debts are described as debts that are unable to be recovered from their respective debtors.

The key reasons for this could be:

The debtor is bankrupt and cannot pay the amount.The debtor flees away and thus, can't be compelled to pay.

The given amounts are obtained as follows:

a). Given that,

Bad debts is 1.5% of credit sales.

Credit Sales = $3,376,000

Bad debts = 1.5% of $3,376,000

∵ Bad debts = 1.5/100 * $3,376,000

= $50 640

b). Given that,

Bad debts = 1 % of total sales.

Total Sales = Credit sale + Cash sale

= $3,376,000 + $1,432,910

= $4808910

Bad debts = 1% of 4808910

∵ Bad debts = 1/100 * $4808910

= $48089.1

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. produces 1000 packages of fruit sushi per month. The sales price is $5 per pack. Variable cost is $1.50 per unit, and fixed costs are $1800 per month. Management is considering adding a chocolate coating to improve the value of the product by making it a dessert item. The variable cost will increase from $1.50 to $1.90 per unit, and fixed costs will increase by 10%. The CEO wants to price the new product at a level that will bring operating income up to $4000 per month. What sales price should be charged

Answers

Answer:

$7.88

Explanation:

The computation is given below:

Sales price is

= ( Total sales revenue ÷ packages sold)

And,

Total sales revenue is

= ( Total Cost + Operting income )

And,  

Total Cost = ( Variable Cost + Fixed cost)

Now

Variable cost = 1,000 packages × $1.90 per unit

= $1,900

And,

Fixed cost = $1,800 × 110%

= $1,980

so

Total cost = $1,900 + $1,980

= $3,880

Now  

Total sales revenue is

= $3,880 + $4,000

= $7,880

 Now  

Sales price = $7,880 ÷ 1,000 packages

= $7.88

If the government changed the per-unit tax from $5.00 to $2.50, then the price paid by buyers would be $7.50, the price received by sellers would be $5, and the quantity sold in the market would be 1.5 units. Compared to the original tax rate, this lower tax rate would

Answers

Answer: Decrease government revenue and decrease deadweight loss from the tax.

Explanation:

Decrease gov rev and decrease deadweight loss from the tax.

At AB, the government revenue will be:

= Quantity × Tax rate

= 1 × 5

= 5

The deadweight loss will be:

Deadweight Loss= 0.5 × Change in quantity × Change in Price

= 0.5 × (9-4) × (2-1)

= 0.5 × 5 × 1

= 2.5

At CD,

the government revenue will be:

= 1.5 × 2.5

= 3.75

The deadweight loss will be:

= 0.5 × (7.5-5) × (2-1.5)

= 0.5 × 2.5 × 0.5

= 0.625

Based on the calculation above, both the government revenue and the deadweight loss decreases.

John, a bachelor, after reading a book on home making, suddenly becomes twice as productive in doing household chores. This will likely make his indifference curves (between income on the vertical axis and household time on the horizontal axis) become :__________

Answers

Answer:

steeper

Explanation:

An indifference curve is a line that represent the goods combinations between the consumer that become indifferent. The indifference curve should be steep when the marginal rate of subsitution is high and the person would gave up a high amount of y in order to received very little of x

So as per the given situation, the indifference curve should become steeper

QS 8-9 Revenue and capital expenditures LO C3 Paid $40,000 cash to replace a motor on equipment that extends its useful life by four years. Paid $200 cash per truck for the cost of their annual tune-ups. Paid $175 for the monthly cost of replacement filters on an air-conditioning system. Completed an addition to a building for $225,000 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record transactions a and d.

Answers

Answer:

1. a = Capital expenditure

b = Revenue expenditure

c = Revenue expenditure

d = Capital expenditure

2. Journal Entries

a. Debit Equipment $40,000

Credit Cash $40,000

To record a replacement on equipment that extends its useful life by four years.

d. Debit Building $225,000

Credit Cash $225,000

To record the payment for additional building completed.

Explanation:

a) Data and Analysis:

a. Equipment $40,000 Cash $40,000

to replace a motor on equipment that extends its useful life by four years.

b. Tune-ups Expenses $200 Cash $200

c. Repairs Expenses $175 Cash $175

d. Building $225,000 Cash $225,000

Could I Industries just paid a dividend of $1.15 per share. The dividends are expected to grow at a rate of 18 percent for the next six years and then level off to a growth rate of 7 percent indefinitely. If the required return is 15 percent, what is the value of the stock today

Answers

Answer: $26.56

Explanation:

Present value of stock = Dividend in year 1 / (1 + required rate of return) + Dividend in year 2 / (1 + required rate of return)² + Dividend in year 3 / (1 + required rate of return)³ + Dividend in year 4 / (1 + required rate of return)⁴ + Dividend in year 5 / (1 + required rate of return)⁵ + Dividend in year 6 / (1 + required rate of return)⁶ + Terminal value /  (1 + required rate of return)⁶

Terminal value = ( Dividend in year 6 * (1 + growth rate) / ( required rate of return - growth rate)

= (1.15 * (1 + 18%)⁶ * (1 + 7%) ) / (15% - 7%)

= $41.5225

Present value of stock:

= (1.15 * 1.18) / (1 + 15%) + (1.15 * 1.18²) / (1 + 15%)² + (1.15 * 1.18³) / (1 + 15%)³ + (1.15 * 1.18⁴) / (1 + 15%)⁴ + (1.15 * 1.18⁵) / (1 + 15%)⁵ + (1.15 * 1.18⁶) / (1 + 15%)⁶ + (41.5225) / (1 + 15%)⁶

= $26.55585976

= $26.56

Russell Inc. had sales of $2,210,000for the first quarter of 2017. In making the sales, the company incurred the following costs and expenses.
Variable Fixed
Cost of goods sold $921,000 $441,000
Selling expenses 71,000 46,000
Administrative expenses 87,000 99,000
Prepare a CVP income statement for the quarter ended March 31, 2017.

Answers

Answer:

A Cost-Volume-Profit statement is used to show just how the different costs incurred contribute to the expenses. It divides the costs into variable and fixed costs for better analysis.

Sales                                                                               $2,210,000

Variable Costs:

Cost of Goods sold                                   $921,000

Selling expenses                                       $ 71,000

Admin expenses                                      $87,000

Total variable costs                                                       ($1,079,000)

Contribution margin                                                      $1,131,000

Fixed costs:

Cost of goods                                          $441,000

Selling expenses                                     $ 46,000

Admin expenses                                    $ 99,000

Total fixed costs                                                           ($586,000)

Net operating income                                                  $545,000

Stealth Company's December 31, 2021 and 2020, financial statements are presented below: 2021 2020 Accounts receivable $ 29,500 $ 42,000 Inventory 30,000 39,000 Net sales (all credit) 196,000 197,000 Cost of goods sold 124,000 110,000 Total assets 429,000 409,000 Total stockholders' equity 250,000 227,000 Net income 39,500 33,000 Stealth Company's 2021 receivables turnover ratio is:_______.

Answers

Answer:

5.48 times

Explanation:

Calculation to determine what Stealth Company's 2021 receivables turnover ratio is

Using this formula

Receivables turnover ratio= 2021 Net sales/(2021 Accounts receivable+2021 Accounts receivable)/2

Let plug in the formula

Receivables turnover ratio= $196,000($29,500 +$42,000)/2

Receivables turnover ratio= $196,000/($71,500/2)

Receivables turnover ratio= $196,000/$35,750

Receivables turnover ratio= 5.48 times

Therefore Stealth Company's 2021 receivables turnover ratio is 5.48 times

For each of the following scenarios, indicate which of the four basic tax planning variables (entity, character, time period, jurisdiction) impacts after-tax value.

a. Aloha Corporation is considering building a new manufacturing facility in either State U or State P. State U has a 10 percent state income tax rate. State P has a 15 percent state income tax rate, but offers a tax holiday for new business investment that would exempt up to $250,000 of Aloha’s earnings from state income tax for the first five years of operations in State P.
b. Mary wishes to help her nephew, Gill, pay his college tuition. Instead of giving Gill cash, Mary gives him bonds earning $10,000 annual interest income. Mary’s marginal tax rate is 35 percent and Gill’s marginal tax rate is 15 percent.
c. Congress has recently enacted a decrease in corporate tax rates that will take effect at the beginning of next year. Grant Company, a cash basis taxpayer, is planning to pay expenses prior to year-end in order to maximize its tax savings in the current year.
d. Will has $50,000 to invest in the stock market. He is considering two alternatives. Stock A pays annual qualifying dividends of 6 percent. Stock B pays no dividends but is expected to increase in value at a rate of 5 percent per year. Will would hold either investment for a minimum of four years. Will’s marginal tax rate on ordinary income is 35 percent.

Answers

Answer:

Letter D is the answer

Explanation:

trust me bro

Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter:
a. As of December 31 (the end of the prior quarter), the company's general ledger showed the following account balances:
Cash 42,000
Accounts receivable 201,600
Inventory 58,050
Buildings and equipment (net) 352,000
Accounts payable 85,725
Common stock 500,000
Retained earnings 67,925
653,650 653,650
b. Actual sales for December and budgeted sales for the next four months are as follows:
December (actual) 252,000
January 387,000
February 584,000
March 298,000
April 195,000
c. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales.
d. The company's gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.)
e. Monthly expenses are budgeted as follows: salaries and wages, $17,000 per month; advertising, $57,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $42,420 for the quarter.
f. Each month's ending inventory should equal 25% of the following month's cost of goods sold.
g. One-half of a month's inventory purchases is paid for in the month of purchase; the other half is paid in the following month.
h. During February, the company will purchase a new copy machine for $1,200 cash. During March, other equipment will be purchased for cash at a cost of $71,000.
i. During January, the company will declare and pay $45,000 in cash dividends.
j. Management wants to maintain a minimum cash balance of $30,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.
Required
Using the data above, complete the following statements and schedules for the first quarter:
1. Schedule of expeted cash collections:
Hillyard Company Schedule of Expected Cash Collections
January February March Quarter
Cash sales 77,400 77,400
Credit sales 201,600 201,600
Total collections 279,000 279,000
2-a. Merchandise purchases budget:
Hillyard Company Merchandise Purchases Budget
January February March Quarter
Budgeted cost of goods sold 232,200* 350,400
Add desired ending inventory 87,600†
Total needs 319,800 350,400
Less beginning inventory 58,050
Required purchases 261,750
*$387,000 sales x 60% cost ratio = $232,200.
†$350,400 × 25% = $87,600.
2-b. Schedule of expected cash disbursements for merchandise purchases:
Hillyard Company Schedule of Expected Cash Disbursements for Merchandise Purchases
January February March Quarter
December purchases 85,725
January purchases 130,875 130,875
February purchases
March purchases
Total cash disbursements for purchases
3. Cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.)
Hillyard Company Cash Budget
January February March Quarter
Beginning cash balance 42,000
Add cash collections 279,000
Total cash available 321,000
Less cash disbursements:
Purchases of inventory 216,600
Selling and administrative expenses 104,960
Purchases of equipment
Cash dividends 45,000
Total cash disbursements 366,560
Excess (deficiency) of cash (45,560)
Financing:
Borrowings
Repayments
Interest
Total financing
Ending cash balance
4. Prepare an absorption costing income statement for the quarter ending March 31.
Hillyard Company Income Statement For the Quarter Ended March 31
Cost of goods sold
Selling and administrative expenses:
5. Prepare a balance sheet as of March 31.
Hillyard Company Balance Sheet March 31
Assets
Current assets:
Total current assets
Total assets
Liabilities and Stocholders' Equity
Current liabilities
Stockholders' equity
Total liabilities and stockholders' equity

Answers

Answer:

1. Schedule of Cash Collection:

Particulars: January February March Quarter

Cash Sales $77,400 $77,400 $118,200 $273,000

Credit Sales $201,600 $201,600 $472,800 $876,000

Total Collections $279,000 $279,000 $591,000 $1,149,000

Explanation:

Cash sales are 20% of total sales where as remaining 80% sales are credit sales. Cash collection schedule prepared will display the actual cash collected from sales. The sales made on credit are collected in the following month.

A manufacturing company has the following budgeted overhead costs: Indirect materials: $0.50 per unit; Utilities: $0.25 per unit; Supervisory salaries: $60,000; Building rent: $80,000. If the company expects to produce 200,000 units using 100,000 hours of direct labor, the standard overhead rate will be $

Answers

Answer:

Predetermined manufacturing overhead rate= $1.45 per unit

Explanation:

First, we will calculate the variable overhead per unit:

Unitary variable overhead= Indirect materials + Utilities

Unitary variable overhead= 0.5 + 0.25

Unitary variable overhead= $0.75 per unit

Now, the total fixed overhead, and fixed overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Total fixed overhead= Supervisory salaries + Building rent

Total fixed overhead= 60,000 + 80,000

Total fixed overhead= $140,000

Predetermined manufacturing overhead rate= 140,000 / 200,000

Predetermined manufacturing overhead rate= $0.7 per unit

Finally, the total predetermined overhead rate:

Predetermined manufacturing overhead rate= 0.75 + 0.7

Predetermined manufacturing overhead rate= $1.45 per unit

On January 1, 2020, Sandhill Co., a calendar-year company, issued $2320000 of notes payable, of which $580000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2020, is:

Answers

Answer:

Current liabilities $2320000; Long-term Debt, $1740000

Explanation:

Calculation to determine what The proper balance sheet presentation on December 31, 2020, is:

Current Liabilities will be $2320000 of notes payable

Hence,

Current liabilities $2320000

Long -term Debt =$2320000-$580000

Long -term Debt=$1740000

Therefore The proper balance sheet presentation on December 31, 2020, is:

Current liabilities $2320000; Long-term Debt, $1740000

Your grandfather has offered you a choice of one of the three following alternatives: $11,500 now; $5,700 a year for five years; or $71,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.

Required:
a. Assuming you could earn 9 percent annually, compute the present value of each alternative.
b. Which alternative should you choose?

Answers

Answer:

1. $11,500

2. $22,171.01

3. $46,145.13

option 3. This is because it has the highest present value

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

option 2

Cash flow each year from year 1 to 5 = $5,700

I = 9

PV = 22,171,01

OPTION 3

Cash flow in year 5 = 71,000

I = 9

PV = 46,145.13

To determine PV using a financial calculator take the following steps:

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  

Glen Inc. and Armstrong Co. have an exchange with no commercial substance. The asset given up by Glen Inc. has a book value of $72,000 and a fair value of $96,000. The asset given up by Armstrong Co. has a book value of $120,000 and a fair value of $114,000. Boot of $24,000 is received by Armstrong Co.What amount should Armstrong Co. record for the asset received

Answers

Answer:

the amount that should be recorded as the asset is $96,000

Explanation:

The computation of the amount that should be recorded as the asset is given below:

Book value of assets given up = $72,000

Add : cash paid in exchange. $24,000

Amount recorded as an asset should be $96,000

We simply added the book value and the cash paid amount for an exchange

Therefore the amount that should be recorded as the asset is $96,000

Mr. and Mrs. Hennesy met with their adviser and concluded that they would need $40,000 per year after they retire in order to live comfortably. They plan to retire 10 years from now and expect to enjoy 20-year of happy retirement before they go to the great beyond. How much should they deposit now in a bank account paying 9 percent to reach financial happiness during retirement

Answers

Answer:

Mr. and Mrs. Hennesy

They should deposit $337,928.65 now.

Explanation:

a) Data and Calculations:

Amount required per year after retirement = $40,000

Period of years during retirement = 20 years

Total amount required for 20 years = $800,000 ($40,000 * 20)

Interest rate = 9%

N (# of periods)  10

I/Y (Interest per year)  9

PMT (Periodic Payment)  0

FV (Future Value)  800000

Results

PV = $337,928.65

Total Interest $462,071.35

Several years ago Doug invested $27,250 in stock. This year he gave his daughter Tina the stock on a day it was valued at $24,500. She promptly sold it for $23,450. Assume Doug is not married and does not support Tina, who is 28.

Required:
a. Determine the amount of the taxable gift.
b. Calculate the amount of taxable gain or loss, if any, for Tina.

Answers

Answer:

B

Explanation:

and i thinks it B

The taxable gift is equal to the fair market value of the gift as of the day it was given, less any relevant exclusions or deductions. There are no indications that any limitations or deductions apply in this situation, and the fair market value of the gift is $24,500.

What is fair market value or FMV?

The projected value of an asset, if it were sold right now on the open market, is its fair market value (FMV). FMV is frequently used to value property in real estate, but it is also used to establish the fair market value of shares of stock in companies and other financial assets.

The gift's worth at the time it is delivered is the sole factor that counts. Pay attention to the fact that fair market value, which is what a buyer would pay, is different from the cash value, which is the amount an insurance would pay to replace the item. The difference between cash value and fair market value is typically caused by depreciation.

Therefore, the taxable gift is $24,500.

Learn more about fair market value here:

https://brainly.com/question/14002494

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Total Cost Logistics Model takes into consideration ______. A. all of the transportation cost B. all of the handling cost C. all of fixed assets D. all of the inventory carrying cost

Answers

Answer:

Total Cost Logistics Model takes into consideration:

A. all of the transportation cost

B. all of the handling cost

D. all of the inventory carrying cost

Explanation:

The total cost logistics model includes all the logistics factors (transportation costs, inventory carrying costs, and administration costs). Logistics can be divided into procurement logistics, production logistics, sales logistics, recovery logistics, and recycling logistics.

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