,Answer: $147,599.30
Explanation:
Lease payment = Interest component + Principal component
Year 1:
Interest = 10% * 170,000
= $17,000
Principal component = 27,667 - 17,000
= $10,667
Lease payable will drop to:
= Lease balance - Principal component
= 170,000 - 10,667
= $159,333
Year 2:
Interest = 10% * 159,333
= $15,933.30
Principal component = 27,667 - 15,933.30
= $11,733.70
Lease payable balance will drop to:
= 159,333 -11,733.70
= $147,599.30
Department M had 3,000 units 59% completed in process at the beginning of June, 12,800 units completed during June, and 1,000 units 32% completed at the end of June. What was the number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories? a.11,350 units b.13,120 units c.9,800 units d.14,120 units
Answer:
Department M
The number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories is:
a. 11,350 units
Explanation:
Beginning work in process units = 3,000
Degree of completion = 59%
Work to be done during June on the beginning WIP = 1,230 units (3,000 * 41%)
Units started and completed during June = 9,800 Units (12,800 - 3,000)
Ending work in process, equivalent units = 320 (1,000 * 32%)
Total equivalent units of production for conversion costs for June, using the FIFO method are = 11,350 units
On June 1, 2019, Cain Company, a new firm, paid $4,300 rent in advance for a five-month period. The $4,300 was debited to the Prepaid Rent account. On June 1, 2019, the firm bought supplies for $7,250. The $7,250 was debited to the Supplies account. An inventory of supplies at the end of June showed that items costing $2,950 were on hand. On June 1, 2019, the firm bought equipment costing $44,160. The equipment has an expected useful life of 8 years and no salvage value. The firm will use the straight-line method of depreciation. Prepare end-of-June adjusting entries for Cain Company.
Answer:
S/N Account and Explanation Debit Credit
1. Rent expense $860
($4,300 / 5 month)
Prepaid rent $860
(To record adjusted rent expense)
2. Supplies expense $4,300
($7,250 - $2,950)
Supplies $4300
(To record adjusted supplies)
3. Depreciation expense $460
(($44,160/8)/12)
Accumulated depreciation $460
(To record depreciation)
Suppose that the price of labor is $7 for a firm, while the price of capital for a firm is $10. Also suppose that the Marginal Product of Labor is 20, while the Marginal Product of Capital is 30. What is the best advice for this profit-maximizing firm?
Answer:
The best advice for this profit-maximizing firm is:
Use more capital than labor.
Explanation:
a) Data and Calculations:
Price of labor = $7
Price of capital = $10
Marginal product of labor = 20
Marginal product of capital = 30
Productivity of labor = Output/Input
= 20/7
= 2.86
Productivity of capital = Output/Input
= 30/10
= 3
b) Capital is more productive than labor. The productivity of capital is 3 when compared to the productivity of labor, that is 2.86.
On December 31, the trial balance of Cubico Company included the following accounts with debit balances: Prepaid Advertising $1,500 Advertising Expense 5,400 If it is determined that the cost of advertising applicable to future periods is $3,300, the correct adjusting entry would:_____.
A. Debit Advertising Expense $1,800; credit Prepaid Advertising $1,800.
B. Debit Prepaid Advertising $1,800; credit Advertising Expense $1,800.
C. Debit Prepaid Advertising $3,300; credit Advertising Expense $3,300.
D. Debit Advertising Expense $3,300; credit Prepaid Advertising $3,300.
Answer:
Cubico Company
The correct adjusting entry would be:
B. Debit Prepaid Advertising $1,800; credit Advertising Expense $1,800.
Explanation:
a) Data and Calculations:
Debit balances on December 31:
repaid Advertising $1,500
Advertising Expense 5,400
Determined future advertising cost = $3,300
The correct adjusting entry would be:
B. Debit Prepaid Advertising $1,800; credit Advertising Expense $1,800.
This will increase the prepaid advertising by $1,800 to $3,300 ($1,500 + $1,800) and reduce the advertising expense by $1,800 to $3,600 ($5,400 - $1,800).
Compute the current ratio and acid-test ratio for each of the separate cases. Camaro GTO TorinoCash $ 2,000 $110 $1,000Short-term investments 50 0 580Current receivables 350 470 700Inventory 2,600 2,420 4,230Prepaid expenses 200 500 900Total current assets $ 5,200 $3,500 7,410Current liabilities $ 2,000 $1,000 3,800
Answer:
The Current and Acid Test ratios help show whether a company will be able to pay of its current obligations with its current assets.
Current Ratio:Camero : GTO
= Current Assets / Current liabilities = 3,500 / 1,000
= 5,200 / 2,000 = 3.50
= 2.60
Torino
= Current assets / Current liabilities
= 7,410 / 3,800
= 1.95
Acid-Test ratioCamero
= (Current Assets - Inventory - Prepaid expenses) / Current liabilities
= (5,200 - 2,600 - 200) / 2,000
= 1.20
GTO
= (3,500 - 2,420 - 500) / 1,000
= 0.58
Torino
= (7,410 - 4,230 - 900) / 3,800
= 0.60
The Wood Valley Dairy makes cheese to supply to stores in its area. The dairy can make 250 pounds of cheese per day (365 days per year), and the demand at area stores is 180 pounds per day. Each time the dairy makes cheese, it costs $125 to set up the production process. The annual cost of carrying a pound of cheese in a refrigerated storage area is $12. Determine the optimal order size and the minimum total annual inventory cost.
Answer: 1. 1170 units
2. $14039
Explanation:
The optimal order size will be:
= ✓2AO/C
where,
A = Annual demand = 180 × 365 days = 65,700
O = Ordering cost = 125
C = Carrying cost = 12
EOQ = ✓(2AO/C)
= ✓(2 × 65700 × 125/12)
= ✓ 1368750
= 1170 units
Therefore, the optimal order size is 1170 units.
2. The minimum total annual inventory cost will be calculated as:
C = (Q /2)(H) +(D/Q)(S)
where,
Q = 1170 pounds
H = holding cost = $12
D = annual demand = 65,700
S =set up cost = $125
Therefore, the minimum total annual inventory cost will be:
C = (Q /2)(H) +(D/Q)(S)
C = {(1170) /2] × 12} + {(65,700 /1170) × 125}
= 7020 +7019
= 14,039
Therefore, the minimum total annual inventory cost is $14,039.
Jax Recording Studio purchased $7,800 in electronic components from Music World. Jax signed a 60-day, 8% promissory note for $7,800. Music World's journal entry to record the collection on the maturity date is:
Answer:
Interest revenue = $7800*8%/360*60
Interest revenue = $104
Date Journal Entry Debit Credit
Cash $7,904
Notes Receivable $7,800
Interest Revenue $104
On whom the trade bill drawn ?
The bill of exchange is drawn by the seller of the goods and is accepted by the buyer.
"Rogue Corp. has sales of $4,250,000; the firm's cost of goods sold is $2,500,000; and its total operating expenses are $600,000. The firm's interest expense is $250,000, and the corporate tax rate is 40%. What is Rogue's tax liability"
Answer:
$360,000
Explanation:
Calculation to determine Rogue's tax liability
Step 1 is to calculate the gross profit
Using this formula
Gross profit=Sales - Cost of Goods Sold
Let plug in the formula
Gross profit=$4,250,000-$2,500,000
Gross profit=$1,750,000
Step 2 is to calculate operating income
Using this formula
Operating income=Gross Profit -Total operating expenses
Let plug in the formula
Operating income=$1,750,000-$600,000
Operating income=$1,150,000
Step 3 is to calculate the EBT
Using this formula
EBT=Operating income - Interest expense
Let plug in the formula
EBT=$1,150,000-$250,000
EBT=$900,000
Now let calculate the Tax liability
Using this formula
Tax liability=EBT x Corp Tax
Let plug in the formula
Tax liability=$900,000*$40%
Tax Liability=$360,000
Therefore Rogue's tax liability is $360,000
How many BTU's are in a ton
Answer:
12.000
Explanation:
Because 1 ton equals 12,000 BTU.
For example, 48,000 BTU equals 4 tons, and 60,000 BTU equals 5 tons.
The real interest rate is Group of answer choices the percentage increase in money that the lender receives on a loan. the percentage increase in purchasing power that the lender receives on a loan. also called the after-tax interest rate. usually higher than the nominal interest rate.
Answer:
he percentage increase in purchasing power that the lender receives on a loan.
Explanation:
Interest rate is the rate earned on deposits or the rate charged on loans.
Interest rate could be real or nominal
Nominal interest rate is real interest rate plus inflation rate
Real interest rate is interest rate that has been adjusted for inflation
The higher the real interest rate, the higher the increase in purchasing power of the lender
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
Which of the following is important in determining the extent of competition in an industry?
a. the minimum level of short run average total costs of production
b. the minimum efficient scale of production relative to market demand
c. whether or not the industry product is differentiated or standardized
d. the level of market demand for the industry's product
On January 1, Parson Freight Company issues 7.0%, 10-year bonds with a par value of $4,500,000. The bonds pay interest semiannually. The market rate of interest is 8.0% and the bond selling price was $4,194,222. The bond issuance should be recorded as:
Answer: Debit Cash $4,194,222; Debit Discount on bonds payable $305,778; Credit Bonds payable $4,500,000
Explanation:
Based on the information given in the question, the journal entry will be prepared as follows:
Debit Cash $4,194,222
Debit Discount on bonds payable $305,778
Credit Bonds payable $4,500,000
Note that the discount on Bonds Payable was calculated as:
= $4,500,000 - $4,194,222
= $305,778
Suppose you invest $210,000 in an annuity that returns 6 annual payments, with the first payment one year from now and each subsequent payment growing by 5%. At an interest rate of 8%, how much is the first annual payment you receive?
Answer:
$40,510.82
Explanation:
Present value = $210,000
Number of annual payments (n) = 6
Growth rate (g) = 5% or 0.05
Interest rate (r) = 8% or 0.08
Amount of first annual payment = [Present value * (r - g)] / [1 - {(1 + g)/(1 + r)}^n]
Amount of first annual payment = [210,000 * (0.08-0.05)] / [1 - [(1+0.05) / (1+0.08)]^6]
Amount of first annual payment = [210,000*0.03] / [1 - (0.972222)^6]
Amount of first annual payment = 6,300 / [1 - 0.844486]
Amount of first annual payment = 6,300 / 0.155514
Amount of first annual payment = 40510.82217678151
Amount of first annual payment = $40,510.82
So, the amount of the first annual payment you will receive is $40,510.82.
Tercer reports the following for one of its products. Direct materials standard (4 lbs. $2 per lb.) Actual direct materials used (AQ) Actual finished units produced Actual cost of direct materials used $8 per finished unit 300,000 lbs. 60,000 units $535,000 AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price.
Compute the direct materials price and quantity variances and classify each as favorable or unfavorable.
Answer:
Results are below.
Explanation:
Giving the following information:
Direct materials standard (4 lbs. $2 per lb.)= $8 per finished unit
Actual direct materials used (AQ)= 300,000
Actual finished units produced= 60,000
Actual cost of direct materials used= $535,000
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2 - 1.783)*300,000
Direct material price variance= $65,100 favorable
Actual price= 535,000 / 300,000= $1.783
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (4*60,000 - 300,000)*2
Direct material quantity variance= $120,000 unfavorable
If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is credited when a customer's account is written off as uncollectible
Answer: Accounts Receivable account
Explanation:
Normally, when writing off a bad debt, an allowance for doubtful debts account is created from which the bad debts can be written off. However, some use the direct method of writing off accounts receivable.
The direct method involves removing the bad debt from the Accounts receivable when it happens by crediting the Accounts Receivable account to reduce it and debiting the Bad Debt expense account.
Oceanic, a venture capital firm, has the opportunity to invest in one of two firms that are in the process of globalizing. Macmillan, an air-conditioner manufacturer, faces intense pressure from its home market. Rent a Swag, a dog-toy manufacturer, has encountered little competition in its country of origin. In which company should Oceanic invest?
a. Macmillan, because air conditioners cost more to ship than dog toys do
b. Macmillan, because firms that face stiff competition at home tend to do better abroad
c. Rent a Swag, because firms that face little or no competition at home tend to do better abroad
d. Rent a Swag, because dog toys cost less to ship than air conditioners do
Answer: B. Macmillan, because firms that face stiff competition at home tend to do better abroad
Explanation:
Following the information given, it can be deduced that Oceanic should invest in Macmillan, because firms that face stiff competition at home tend to do better abroad.
The fact that Macmillan, which is an air-conditioner manufacturer, faces intense pressure from its home market will have resulted in the company making quality sure conditioners in order to sustain the pressure and have an edge over its local competitors. Therefore, the company will do better abroad as a result of this.
The correct option is B.
One of your friends has opened a new wholesale electronics business and wants your help figuring out some inventory issues they are facing.
One night last week, there seemed to be fewer HD televisions in the warehouse than they expected. The last time they were in the warehouse was
a week earlier, and they hadn't noticed anything amiss.
As they looked around, they saw that the evening warehouse worker was filling the last orders of the day. The delivery driver and day warehouse
worker were gone for the day, and the delivery van keys were on the desk that the warehouse workers shared. The doors to the loading dock were
open, as was the door to the office area where the accountant, two customer service specialists, and the owner worked.
Knowing that you are familiar with accounting principles, they asked for your help in figuring out how to prevent this in the future.
Answer:
Hence,
When control is missing the wrongdoings happen at a quick pace because the barrier in their work involves an end. there's no check on the operations and hence many wrongdoings happen without coming into the eyes of management. control helps within the analysis of wrongdoings by comparing with the standards and checks. Hence without control, it's hard to depict the extent of wrongdoings within the organization.
Explanation:
Role of control
Internal controls are policies and procedures put in situ by management to make sure that, among other things, the company’s financial statements are reliable. Some internal controls relevant to an audit include bank reconciliations, password control systems for accounting software, and inventory observations.
Internal controls provide reasonable assurance about achieving objectives regarding:
.Effectiveness and efficiency of operations
.Reliability of financial reporting
.Safeguarding of assets
.Compliance with applicable laws and regulations
How does the labor-leisure trade-off determine the supply of labor? A. The supply of labor is no different than the supply of any other good or service in that it is primarily affected by production costs. In the case of labor, the dominant production cost is the cost incurred to acquire employable skills. The supply of labor is upward-sloping because higher wages are required to cover the expense of gaining more skills. B. An increase in the wage rate is an increase in the opportunity cost of leisure, and can therefore be expected to reduce the amount of leisure one wishes to consume. Choosing less leisure is equivalent to supplying more labor, thus yielding a positive relationship between the wage rate and the amount of labor supplied. C. Individuals typically trade off working versus leisure in an unplanned, unsystematic way. As a result, the supply of labor exhibits a bit of randomness, showing that higher wages sometimes increase the quantity of labor time supplied and sometimes decrease the quantity of labor time supplied. D. When an individual chooses an amount of leisure to consume, he is simultaneously choosing a quantity of labor to supply. Since leisure is a normal good, an increase in the wage induces more consumption of leisure and therefore a smaller quantity of labor supplied.
Answer:
B
Explanation:
Because wants are unlimited and the resources available to satisfy these wants are limited, economic agents must undergo trade-off
Trade-off is the opportunity cost of taking a particular decision
Opportunity cost of the next best option forgone when one alternative is chosen over other alternatives
According to the law of supply, if wage rate increases the supply of labour would increase. If wage rate increases, the number of hours that labour would want to work would increase. Thus, there is a positive relationship between wage rate and labour supply. The supply curve for labour is positively sloped. Because time is finite, as the number of hours labour works increases, labour would have less time for leisure.
In the manufacture of 9,200 units of a product, direct materials cost incurred was $171,600, direct labor cost incurred was $114,200, and applied factory overhead was $45,400. What is the total conversion cost? a.$171,600 b.$331,200 c.$159,600 d.$45,400
Answer: c. $159,600
Explanation:
Conversion cost is the cost that the business incurs to transform raw materials into finished goods or at least the next stage of the good.
Direct labor is necessary to transform the good and they do so using factory overheads. Conversion cost is therefore calculated as follows:
= Direct Labor Cost + Factory overhead
= 114,200 + 45,400
= $159,600
Is scented candle harmful to dogs?
Answer:
Scented candles are not harmful to dogs for normal use, but high concentrations in a confined space for a long time would have an impact on the dog's sense of smell.
Because the candles you use will cause a lot of burnt smoke which is harmful to dogs. And aromatherapy ingredients contain a lot of chemical substances. If the windows are opened, it will be ok, if not the more chemical substances accumulate, the more it will be harmful to dogs, or even to the health of people.
Here are several ways to avoid the harm caused by aromatherapy to dogs:
Do not ignite the two types of aromatherapy in a short time or at the same time, to avoid the two types of aromatherapy, which are mutually ineffective and produce toxic gas.
Try not to light candles in a closed bedroom when you sleep.
Keep air circulation.
Keep all kinds of aromatherapy out of reach of dogs.
Use Home Lights scented candles in the right way.
Explanation:
https://hlcandles.com/
The two most important goals for government policy involve a trade-off between __________ and __________. A. big government; small government. B. taxation; government spending. C. direct regulation; indirect regulation. D. equity; efficiency.
Answer:
D
Explanation:
if a trial balance totals do not agree, the difference must be entered in a. nominal account b. the profit and loss account C. the capital account d. the suspense account
Answer:
d. the suspense account
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP).
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
In Financial accounting, if a trial balance totals do not agree, the difference must be entered in the suspense account
Radford Inc. manufactures a sugar product by a continuous process, involving three production departments—Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $386,100, $135,100, and $88,800, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $21,600, and work in process at the end of the period totaled $26,600.
a. Journalize the entries to record the flow of costs into the Refining Department during the period for (1) direct materials, (2) direct labor, and (3) factory overhead. .
b. Journalize the entry to record the transfer of production costs to the second department, Sifting.
Answer:
a. S/n Account Titles Debit Credit
1 Work in progress - Refining Department $386,100
Material $386,100
2 Work in progress - Refining Department $135,100
Wages Payable $135,100
3 Work in progress - Refining Department $88,800
Factory Overhead-Refining Department $88,800
b. Cost of Transfer = Opening WIP cost + Material + wages + Factory Overhead - Closing WIP Cost
Cost of Transfer = 21,600 + 386,100 + 135,100 + 88,800 - 26,600
Cost of Transfer = $605,000
Date Account Titles Debit Credit
Work in progress - Shifting Department $605,000
Work in progress - Refining Department $605,000
MC Qu. 119 Alexis Co. reported the following information... Alexis Co. reported the following information for May: Part A Units sold 5,800units Selling price per unit$950 Variable manufacturing cost per unit 600 Sales commission per unit - Part A 95 What is the contribution margin for Part A
Answer:
the contribution margin per unit for part A is $1,479,000
Explanation:
The computation of the contribution margin for part A is shown below:
Contribution margin per unit is
= $950 - $600 - $95
= $255
Now for contribution margin per unit for part A is
= 5,800 units × $255
= $1,479,000
Hence, the contribution margin per unit for part A is $1,479,000
A small business owner visits his bank to ask for a loan. The owner states that she can repay a loan at $1,500 per month for the next 3 years and then $500 per month for three years after that. If the bank is charging customers 10 percent APR, how much would it be willing to lend the business owner?
Answer:
The bank will be willing to lend $ 28,800 to the business owner.
Explanation:
Given that a small business owner visits his bank to ask for a loan, and the owner states that she can repay a loan at $ 1,500 per month for the next 3 years and then $ 500 per month for three years after that, since the bank is charging customers 10 percent APR, to determine how much the business owner would be willing to lend the following calculation must be performed:
1500 x 12 x 3 + 500 x 12 x 3 = X
18000 x 3 + 6000 x 3 = X
54000 + 18000 = X
72000 = X
10 x 6 = 60
100 - 60 = 40
100 = 72000
40 = X
40 x 72000/100 = X
28800 = X
Therefore, the bank will be willing to lend $ 28,800 to the business owner.
MC Qu. 147 Luker Corporation uses a process... Luker Corporation uses a process costing system. The company had $165,500 of beginning Finished Goods Inventory on October 1. It transferred in $842,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $163,200. The entry to account for the cost of goods manufactured during October is:
Answer:
Debit cost of goods sold $844,300
Credit finished goods inventory $844,300
Explanation:
Based on the information given The Appropriate journal entry to account for the cost of goods manufactured during October is:
Debit cost of goods sold $844,300
Credit finished goods inventory $844,300
($165,500 + $842,000 - $163,200 = $844,300)
(To record cost of goods manufactured)
odson Company manufactures a product with a standard direct labor cost of 2.3 hours of labor per unit at $10.60 per hour. Last month, 170 units were produced using 90 hours at $11.60 per hour. What was the company's labor quantity variance
Answer:
Direct labor time (efficiency) variance= $3,190.6 favorable
Explanation:
To calculate the direct labor quantity variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (391 - 90)*10.6
Direct labor time (efficiency) variance= $3,190.6 favorable
Standard quantity= 2.3*170= 391
For March, sales revenue is $1,000,000, sales commissions are 5% of sales, the sales manager's salary is $80,000, advertising expenses are $65,000, shipping expenses total 1% of sales, and miscellaneous selling expenses are $2,100 plus 1% of sales. Total selling expenses for the month of March are
Answer:
$217,100
Explanation:
total selling expenses = sales commission + sales manager's salary + shipping expense + advertising expenses + miscellaneous selling expenses
sales commissions = 50,000
advertising expenses = 65,000
shipping expenses = 10,000
sales manager's salary= 80,000
miscellaneous selling expenses = 10,000 + 2100
2018
Feb. 2 Recorded credit sales of $97,000. Ignore Cost of Goods Sold.
Nov. 1 Loaned $18,000 to Jess Price, an executive with the company, on a one-year, 7% note.
Dec. 31 Accrued interest revenue on the Price note. 2019
Nov. 1 Collected the maturity value of the Price note.
Required:
Journalize the entries.
Answer:
Feb 6
Dr Account receivable $97,000
Cr Sales revenue $97,000
Jul 1
Dr Notes receivable $18,000
Cr Cash $18,000
Dec 31
Dr Interest receivable $630
Cr Interest revenue $630
July 1
Dr Cash $19,260
Cr Notes receivable $18,000
Cr Interest receivable $630
Cr Interest revenue $630
(To record collection)
Explanation:
Preparation of the journal entries
Feb 6
Dr Account receivable $97,000
Cr Sales revenue $97,000
(To credit sales)
Jul 1
Dr Notes receivable $18,000
Cr Cash $18,000
(To record loan given)
Dec 31
Dr Interest receivable ($18000*7%*6/12) $630
Cr Interest revenue $630
(To record accrued interest)
July 1
Dr Cash $19,260
($18,000+$630+630)
Cr Notes receivable $18,000
Cr Interest receivable $630
Cr Interest revenue $630
(To record collection)
