Answer:
Cowboy Company
Closing Entries:
Debit Fees Earned 156,000
Credit Income Summary 156,000
To close the revenue account to the income summary.
Debit Income Summary 75,750
Credit:
Wages Expense 35,000
Rent Expense 20,100
Supplies Expense 7,800
Utilities Expense 3,600
Depreciation Expense 9,000
Interest Expense 250
To close the expenses to the income summary.
Debit Net Income 80,250
Credit Cowboy, Capital 80,250
To close the income summary to the Capital account.
Explanation:
a) Data and Calculations:
Cowboy Company
Adjusted Trial Balance
December 31, 2020
ACCOUNT NAME DEBIT CREDIT
Cash 156,750
Accounts Receivable 4,500
Prepaid Rent 7,800
Building 145,000
Accumulated Depreciation - Building 65,000
Accounts Payable 5,500
Salaries Payable 1,300
Interest Payable 2,000
Unearned Revenue 24,000
Notes Payable 60,000
Cowboy, Capital 98,000
Cowboy, Withdrawals 22,000
Fees Earned 156,000
Wages Expense 35,000
Rent Expense 20,100
Supplies Expense 7,800
Utilities Expense 3,600
Depreciation Expense 9,000
Interest Expense 250
Totals 411,800 411,800
Patty took a cash advance of $1,500. Her new credit card charges an Annual Percentage Rate of 21%. The transaction fee for the cash advance is 3% of the amount of the advance, with a minimum fee of $35. This fee is added to the total cash advance, and accrues interest.
Hint: calculate 3% of 1,500. Add that 3% to the original cash advance of 1,500. This becomes your charged amount.
If Patty makes monthly payments of $65:
What is the total amount Patty will end up paying for the cash advance?
Hardy Company manufactures a single product by a continuous process involving two production departments. The records indicate that $140,000 of direct materials were issued to and $200,000 of direct labor was incurred by Department 1 in the manufacture of the product. The factory overhead rate is $25 per machine hour; machine hours were 5,000 in Department 1. Work in process inventory in the department at the beginning of the period totaled $35,000; and work in process inventory at the end of the period was $25,000.
The transfer of production costs to Department 2.
Instructions:
Prepare entries to record (a) The flow of costs into Department 1 for (1) direct materials (2) direct labor (3) overhead (b) The transfer of production costs to Department 2.
Answer:
Hardy Company
Journal Entries:
Department 1:
1. Debit Work in Process $140,000
Raw materials $140,000
To record the issuance of direct materials to Department 1.
2. Debit Work in Process $200,000
Credit Payroll $200,000
To record the direct labor cost incurred by Department 1.
3. Debit Work in Process $125,000
Credit Factory overhead $125,000
To record the overhead applied in Department 1 ($25 * 5,000).
4. Debit Work in Process (Department 2) $475,000
Credit Work in Process (Department 1) $475,000
To record the transfer of production costs to Department 2.
Explanation:
a) Data and Analysis:
1. Work in Process $140,000 Raw materials $140,000
2. Work in Process $200,000 Payroll $200,000
3. Work in Process $125,000 Factory overhead $125,000 ($25 * 5,000)
4. Work in Process (Department 2) $475,000 Work in Process (Department 1) $475,000
Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 22,000 machine hours of activity, total maintenance costs averaged $33.40 per hour. When activity jumped to 25,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $30.40.On the basis of this information, the variable cost per machine hour was:___________A. $8.40.B. $22.00.C. $25.00.D. $30.40.E. $33.40.
Answer:
Variable cost per unit= $8.4
Explanation:
First, we need to calculate the total cost for each level of machine hours:
Low activity level:
Total cost= 22,000*33.4= $734,800
High activity level:
Total cost= 25,000*30.4= $760,000
Now, we can determine the variable and fixed costs:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (760,000 - 734,800) / (25,000 - 22,000)
Variable cost per unit= $8.4
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 760,000 - (8.4*25,000)
Fixed costs= $550,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 734,800 - (8.4*22,000)
Fixed costs= $550,000
The Lime Corporation has obtained the following sales forecast data:
July August September October
Cash sales $ 80,000 $ 70,000 $ 50,000 $ 60,000
Credit sales $ 240,000 $ 220,000 $ 180,000 $ 200,000
The regular pattern of collection of credit sales is 20% in the month of sale, 70% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts. The budgeted cash receipts for October would be:_________
a. $188.000
b. $248,000
c. $226,000
d. $278,000
e. none of above
Answer:
b. $248,000
Explanation:
The computation of the cash receipts for October would be
Particulars October
Cash sales $60000
August credit Sales $22000 (10% of $220,000)
September Credit Sales $126000 (70% of $180,000)
October credit Sales $40000 (20% of $200,000)
Budgeted cash receipt $248000
Hence, the correct option is b.
A structure that organizes worldwide operations primarily based on function and secondarily on product is called: a global area division. a global functional division. a multinational matrix structure. a global product division.
Answer:
a global functional division.
Explanation:
In a global functional structure, the MNC activities are to be organized among the particular functions that are related to the production, finance, marketing etc. Here the developments are establishment that would have the responsibility worldwide for the particular function
So as per the given situation, the above should be the answer
Suppose a chair manufacturer finds that the marginal rate of technical substitution (MRTS) of capital for labor in her production process is substantially than the ratio of the wage rate for assembly-line labor (w) to the rental rate on machinery (r). How should she alter her use of labor and capital to minimize the cost of production? Holding output constant, the chair manufacturer should use ▼ less more labor and ▼ more less capital.
Answer:
The chair manufacturer should use less labor and more capital.
Explanation:
Note: This question is not complete because the important word less is omitted. The complete question is therefore provided before answering the question as follows:
Suppose a chair manufacturer finds that the marginal rate of technical substitution (MRTS) of capital for labor in her production process is substantially less than the ratio of the wage rate for assembly-line labor (w) to the rental rate on machinery (r). How should she alter her use of labor and capital to minimize the cost of production? Holding output constant, the chair manufacturer should use [less/more] labor and [more/less] capital.
Explanation of the answer is now provided as follows:
The marginal rate of technical substitution (MRST) is the amount by which the quantity of one input must be reduced when one more unit of another input is used to keep output constant.
In order to minimize cost of production while holding output constant, when the MRTS of capital for labor is substantially greater than the ratio of w to r, it implies that less capital and more labor should be used; but when the MRTS of capital for labor is substantially less than the ratio of w to r, it implies that more capital and less labor should be used.
Based on the above explanation, the chair manufacturer should use less labor and more capital.
Identify and explainthe benefits and problems associated with high economic growth
Answer:
Kindly check explanation
Explanation:
High economic growth is usually the aim of several economic policies whichnmost countries try to employ. The reason for this is no other than the numerous benefits attached to it which includes;
Increase in GDP : With growth in the economy of a country, trading within and outside these countries will rise, leading to increase in revenue earned and hence, the gross domestic product. This will pave the way for :
Infrastructural development : The development of infrastructure and standard society will be on the horizon as the economy grows. There is enough capital to embark on infrastructural development which will serve the populees
Other benefits include ; Trade and investment opportunities ; Increase in foreign direct investment and employment level will increase.
High economic growth also has it's drawbacks which include ;
Higj Immigration level ; Businesses and individuals are always on the lookout for areas with good investment opportunity in which an high income society is usually a main target. With increasing immigration, overcrowding may result.
Also, Investment cost may begin to rise, coupled with increase in foreign investment influx, the local market may be at risk of being able to compete.
Which of the following is a component of the talent acquisition function of HR management?
Group of answer choices
Recruiting
Training
Career planning
Orientation
Answer:
Recruiting
Explanation:
Recruitment is the process of hiring individuals in an organization to accomplish the tasks assigned. It is the process carried by the Human Resource Management in an organization. The HR management is responsible to organize and manage the human talents and recruit them respectively. The talent are recognized by the team and are hired to meet the goals of the organization.
Suppose that $1 lottery tickets have the following probabilities and values: 1 in 5 to win a free ticket (worth $1), 1 in 100 to win $5, 1 in 100,000 to win $1000, and 1 in 10 million to win $1 million. What is the expected value of a lottery ticket to the consumer
Answer:
$0.36
Explanation:
Expected value of the lottery ticket = (p1 x a1) + (p2 x a2) + (p3 x a3) + (p4 x a4)
p1 = probability of winning $1 = 1/5 = 0.2
a1 = $1
p2 = probability of winning $5 = 1/100 = 0.01
a2 = $5
p3 = probability of winning $1000 = 1/100,000 = 0.00001
a3 = $1000
p4 = probability of winning $1 million = 1/10,000,000 = 0.0000001
a4 = $1 million
(0.2 x 1) + (0.01 x 5) + (0.00001 x 1000) + (1,000,000 x 0.00001) = $0.36
An educational institution has total direct labor and material costs of $1964 per student. Its fixed costs are $352,800. Total revenues for the year were $1,800,000. It had 800 students in the past year. How many students should they accept in the next year to break even assuming the variable cost margins are equal to this year, and assuming fixed costs are to increase by $19,000 due to increased rent for expansion? (round to the nearest whole number).
Answer:
1300 students
Explanation:
The computation of the no of students to be accepted for break even is given below:
Fixed cost is
= $352,800 + $19,000
= $371,800
Revenue per student is
= $1,800,000 ÷ 800
= 2250
And,
Variable cost per student = 1964
So,
Contribution margin = Revenue - Variable cost
= $2,250 - $1,964
= $286
Break even point is
= Fixed cost ÷ Contribution margin per unit
= 371800÷ 286
= 1300 students
The business cycle measures fluctuations in the long-run trend growth rate of GDP. fluctuations in the profit of businesses. fluctuations in consumption. short-run fluctuations in economic activity. fluctuations in the average tax rate paid by businesses.
Answer: short-run fluctuations in economic activity.
Explanation:
The business cycle helps explain fluctuations in economic activity within a period of time which makes it a short run measure. The cycle consists of expansion phases and recession phases which show that economic activity seems to expand and then go into a recession overtime.
The lowest point in the recession is called the depression and when this happens, the economy hits rock bottom and starts to expand after some time. This is what happened with the Great Depression and the Great Recession. The height of the expansion is the peak and here, the economy is at its most successful.
Martinez Company's ending inventory includes the following items. Product Units Cost per Unit Market per Unit Helmets 30 $ 58 $ 62 Bats 23 112 80 Shoes 44 103 99 Uniforms 48 44 44 Compute the lower of cost or market for ending inventory applied separately to each product.
Answer:
Inventory Units CPU MV per unit Total Cost Total MV LCM
Helmets 30 58 62 1740 1860 1740
Bats 23 112 80 2576 1840 1840
Shoes 44 103 99 4532 4356 4356
Uniforms 48 44 44 2112 2112 2112
Inventory Valuation 10048
Trader M places a System Order to buy 100 shares of ABC stock at a price two cents below the best non-Nasdaq participant on the same side of the market. This is what type of order
Answer:
Limit order
Explanation:
There are various types of orders placed on nasdaq. These order include, market orders, limit order, All or none order, Immediate or cancel order and like wise. When a buyer places an order to buy the stock below current market price, this is type of limit order.
Gary Marks is paid on a monthly basis. For the month of January of the current year, he earned a total of $9,138. FICA tax for Social Security is 6.2% on the first $128,400 of earnings each calendar year and the FICA tax for Medicare is 1.45% of all earnings. The 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 amount of Federal Income Tax withheld from his earnings was $1,516.27. What is the amount of the employer's payroll taxes expenses for this employee
Answer:
$ 1,119.06
Explanation:
It is given that :
Gary Marks total earning = $ 9,138
The social security tax = 6.2%
The Medicare tax = 1.45%
We known, the FUTA and the SUTA must only be applied to the first $7000 earned from Gary's pay.
So, the employer's payroll taxes expenses = Social security + Medicare + FUTA + SUTA
= ($9,138 x 6.2%) + ($9,138 x 1.45%) + ($7000 x 0.6%) + ($7000 x 5.4%)
= 566.56 + 132.5 + 42 + 378
= $ 1,119.06
Therefore, the amount of the employer's payroll taxes expenses is $1,119.06
On January 1, 2019, Eagle Company borrows $23,000 cash by signing a four-year, 9% installment note. The note requires four equal payments of $7,099, consisting of accrued interest and principal on December 31 of each year from 2019 through 2022. Prepare the journal entries for Eagle to record the note's issuance and the four payments
Answer:
See below
Explanation:
January 01, 2019
Cash Dr $23,0000
______________Notes payable Cr $23,000
December 31, 2019
Interest expense Dr $2,070
($23,000 × 9%)
Notes payable Dr $5,029
____________________Cash Cr. $7,099
December 31, 2020
Interest expense Dr $1,617
($23,000 - $5,029) × 9%
Notes payable Dr $5,082
_________________ Cash Cr $7,099
December 31, 2021
Interest expense Dr $1,160
($23,000 - $5,029 - $5,082) × 9%
Notes payable Dr $5,939
___________________ Cash Cr $7,099
December 31, 2022
Interest expense Dr $626
($23,000 - $5,029 - $5,082 - $5,939) × 9%
Note payable Dr $6,473
_____________________ Cash Cr $7,099
The following data are from the financial statements of the Riverton Company.
Current assets $55,000
Total liabilities $95,000
Total assets 125,000
Net income 18,000
Current liabilities 25,000
Sales 275,000
Answer:
then what i have to found
Ajax Inc. was formed on April 25 and elected a calendar year for tax purposes. Ajax paid $13,200 to the attorney who drew up the articles of incorporation and $7,100 to the CPA who advised the corporation concerning the accounting and tax implications of its organization. Ajax began business operations on July 15. To what extent can Ajax deduct its $20,300 organizational costs on its first tax return
Answer: $5510
Explanation:
For organizations cost up to $50,000, there'll be a deduction of $5000. The remaining non deductible expense will then be spread out for 180 months. Here, the non deductible cost will be:
= ($13200 + $7100) - $5000
= $20300 - $5000
= $15300
The capitalized cost will then be:
= $15300 / 180
= $85 per month.
Since there's an ammortization of 6 months from July, then the capitalized cost will be:
= $85 × 6
= $510
Therefore, the amount that should be deducted on its first tax return will be:
= $5000 + $510
= $5510
During a team meeting, a team member asks about the measurements that will be used on the project to assess performance. The team member feels that some of the measures related to the activities assigned to him are not valid measurements. The project is BEST considered to be in what part of the project management process?
Answer:
The answer is "Executing".
Explanation:
In this inquiry, it is stated that certain of the measurements used to evaluate a team member's efforts are deemed invalid. As a result, he'll have to work during the project's executing phase, when project deliverables are created and project participants execute the majority of the labor. During this team meeting, one of the members inquires about the project's performance measurements, that's why Executing is the correct choice.
On November 1, 20Y9, Lexi Martin established an interior decorating business, Heritage Designs. During the month, Lexi completed the following transactions related to the business:
Nov. Lexi transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $27,100.
1Paid rent for period of November 1 to end of month, $3,300.
6Purchased office equipment on account, $12,840.
8Purchased a truck for $30,500 paying $7,000 cash and giving a note payable for the remainder.
10Purchased supplies for cash, $1,740.
12Received cash for job completed, $7,500.
15Paid annual premiums on property and casualty insurance, $2,300.
23Recorded jobs completed on account and sent invoices to customers, $12,410.
24Received an invoice for truck expenses, to be paid in November, $1,400.
Enter the following transactions on Page 2 of the two-column journal:Nov. 29 Paid utilities expense, $4,500. 29 Paid miscellaneous expenses, $1,000. 30 Received cash from customers on account, $9,000. 30 Paid wages of employees, $6,800. 30 Paid creditor a portion of the amount owed for equipment purchased on November 6, $3,000. 30 Paid dividends, $2,500. how it do Journal
Answer:
looks good no mistakes and uh b if this is a question
Setting a passing score for whites at 80 out of 100 and a passing score of 60 out of 100 for minority applicants in an admission test is an example of race norming.
A. True
B. False
Answer: True
Explanation:
Race norming simply refers to the practice whereby two different cut off test scores are set for employment which is based on race. Race-norming, is also referred to as the within-group score conversion and it has to do with the adjustment of test scores in order to account for the ethnicity of the test-taker.
Since a passing score for whites was set at 80 out of 100 while a passing score of 60 out of 100 was set for the minority applicants, then it's an example of race norming.
How are changes in U.S. demographics affecting the workplace relative to demographic changes in our traditional competitors
Answer:
The changes in demographics are affecting the workplaces in both positive and negative manner. With continuous immigration of workforce from Asian countries and neighbor countries like Mexico, America is facing some serious crises of jobs shortage.
On the other hand, due to such import of human resource companies are able to get best talent inn hand to operate their activities.
Kuley plans to retire in 8 years with $263,700 in her account, which has an annual return of 8.17 percent. If she receives annual payments of X, with her first payment of X received in 8 years and her last payment of X received in 15 years, then what is X, the amount of each payment
Answer:
Kuley
If she receives annual payments of X, with her first payment of X received in 8 years and her last payment of X received in 15 years, then the amount of each payment is:
X = $50,944.35
Explanation:
a) Data and Calculations:
Amount in savings account in 8 years' time = $263,700
Annual return rate = 8.17%
Period of savings from Year 8 to Year 15 = 7 years
Annual payments = X
X = $50,944.35
From an online financial calculator, the payment is determined as follows:
N (# of periods) 7
I/Y (Interest per year) 8.17
PV (Present Value) 263700
FV (Future Value) 0
Results
PMT = $50,944.35
Sum of all periodic payments $356,610.45
Total Interest $92,910.45
What is the present value of an investment that will pay $2,000 at the end of the year when interest is compounded annually at 5.10%
Answer:
the present value of an investment is $1,902.94
Explanation:
The computation of the present value of an investment is given below:
present value
= Future value ÷ (1 + rate of interest)^time period
=$2,000 ÷ (1+.051)^1
= $2,000 ÷ 1.051
= $1902.94
Hence, the present value of an investment is $1,902.94
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land 5 years ago for $9,639,708 in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $3,650,288. An engineer was hired to study the land at a cost of $810,081, and her conclusion was that the land can support the new manufacturing facility. The company wants to build its new manufacturing plant on this land; the plant will cost $6,880,840 million to build, and the site requires $529,656 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?
Answer:
the proper cash flow amount is $11,060,784
Explanation:
The computation of the proper cash flow amount is shown below:
= land value + plant value + grading value
= $3,650,288 + 6,880,840 + $529,656
= $11,060,784
Hence, the proper cash flow amount is $11,060,784
So the same should be considered and relevant
Cyclical unemployment arises when:______.
a. the agriculture sector completes the cycle of planting, cultivating, and harvesting the nation's food supply.
b. labor unions strike for higher wages.
c. the business cycle enters an expansionary phase.
d. business activity in the macroeconomy declines.
Answer:
D
Explanation:
types of unemployment
structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.
The geologist lost his hob permanently due to increase in wages (polices)
Frictional unemployment: the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.
Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.
Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom
Winner Corporation acquired 80 percent of the common shares and 70 percent of the preferred shares of First Corporation at underlying book value on January 1, 20X9. At that date, the fair value of the noncontrolling interest in First's common stock was equal to 20 percent of the book value of its common stock. First's balance sheet at the time of acquisition contained the following balances:
Total Assets $600,000 Total Liabilities $90,000
Preferred Stock 100,000
Common Stock 150,000
Retained Earnings 260,000
Total Assets $600,000 Total Liabilities and
Equities $600,000
The preferred shares are cumulative and have a 10 percent annual dividend rate and are four years in arrears on January 1, 20X9. All of the $5 par value preferred shares are callable at $6 per share. During 20X9, Shovel reported net income of $100,000 and paid no dividends.
Required information
Based on the preceding information, what is First's contribution to consolidated net income for 20X9?
a. $80,000
b. $100,000
c. $90,000
d. $50,000
Answer:
b. $100,000
Explanation:
Based on the information given , the FIRST'S CONTRIBUTION TO CONSOLIDATED NET INCOME for 20X9 will be NET INCOME amount of $100,000 because During the year 20X9, the company reported NET INCOME of $100,000 in which they paid no dividends.
Therefore First's contribution to consolidated net income for 20X9 is $100,000
MC Qu. 120 Dallas Company uses a job order... Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $4,160,000 (260,000 hours at $16/hour) and that factory overhead would be $1,560,000 for the current period. At the end of the period, the records show that there had been 240,000 hours of direct labor and $1,260,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead rate
Answer:
See below
Explanation:
Per the given details, predetermined overhead is be calculated as seen below
Predetermined overhead = (Estimated factory overhead / Estimated direct labor hour) × 100
Estimated factory overhead = $1,560,000
Estimated direct labor hour = 260,000
Predetermined overhead = )$1,560,000 / 260,000) × 100
Predetermined overhead rate = 600%
The focus on establishing relationships with all customers has given way to a more targeted effort to seek higher-value customers.
A. True
B. False
Use the following selected balance sheet and income statement information for Caroline Supply Co. (in millions) to compute asset turnover (AT) to the nearest hundredth of a percent.
Operating profit before tax Earnings without interest expense (EWI) Average total assets Sales Tax rate on operating profit
$58,300 $93,400 $360,600 $1,135,420 35%
Answer:
3.15 times
Explanation:
Asset turnover = Sales revenue / Average total assets
Asset turnover = $1,135,420 / $360,600
Asset turnover = 3.15 times
Avery Company has two divisions, Polk and Bishop. Polk produces an item that Bishop could use in its production. Bishop currently is purchasing 26,000 units from an outside supplier for $16 per unit. Polk is currently operating at less than its full capacity of 630,000 units and has variable costs of $9 per unit. The full cost to manufacture the unit is $12. Polk currently sells 460,000 units at a selling price of $18 per unit.
a. What will be the effect on Avery Company’s operating profit if the transfer is made internally?
b. What is the minimum transfer price from Polk’s perspective?
c. What is the maximum transfer price from Bishop’s perspective?
Answer:
a. The effect is that Avery Company’s operating profit will increase by $182,000 if the transfer is made internally.
b. Minimum transfer price = $9
c. Maximum transfer price from Bishop’s perspective = $16.
Explanation:
a. What will be the effect on Avery Company’s operating profit if the transfer is made internally?
To determine this, fixed cost is ignored because it considered irrelevant. Therefore, we have:
Profit per unit = Purchase price from outside - Variable cost of production internally = $16 - $9 = $7
Total increment in operating profit = Current purchase unit of Bishop * Profit per unit = 26,000 * $7 = $182,000
Therefore, Avery Company’s operating profit will increase by $182,000 if the transfer is made internally.
b. What is the minimum transfer price from Polk’s perspective?
Since Polk is currently operating at less than its full capacity, this implies that it will not incur additional fixed cost to produce current purchase units of Bishop. Therefore, only its variable cost of $9 will have to recovered. By implication, we have:
Minimum transfer price = Variable cost = $9
c. What is the maximum transfer price from Bishop’s perspective?
Any price that is higher than $16 at which Bishop is currently purchasing from an outside supplier will result in a loss for Bishop and the increment profit of $182,000 will be lost by Avery Company. This therefore implies that:
Maximum transfer price from Bishop’s perspective = Price at which Bishop is currently purchasing from an outside supplier = $16
