Answer:
The Dulac Box
Productivity is now approximately:____.
= 75 boxes/hr
Explanation:
a) Data and Calculations:
Number of shifts per day = 2
Each shift works 8 hours
Total hours worked each day = 16 hours
Number of cypress packing boxes produced each day = 1,000
Productivity per hour = 62.5 boxes/hr (1,000 boxes/16 hours)
Increase in productivity from the use of new technology = 20%
Therefore, the number of cypress packing boxes produced each day will increase by 20% to 1,200 boxes (1,000 * 1.2)
New Productivity per hour = 75 boxes/hr
Presented here are selected transactions for the Cullumber Company during April. Cullumber uses the perpetual inventory system. April 1 Sold merchandise to Mann Company for $4,200, terms 2/10, n/30. The merchandise sold had a cost of $3,000. 2 Purchased merchandise from Wild Corporation for $8,500, terms 1/10, n/30. 4 Purchased merchandise from Ryan Company for $1,100, n/30. 10 Received payment from Mann Company for purchase of April 1 less appropriate discount. 11 Paid Wild Corporation for April 2 purchase. Journalize the April transactions for Cullumber Company
Answer:
Cullumber Company
Journal Entries:
April 1 Debit Accounts receivable (Mann Company) $4,200
Credit Sales revenue $4,200
To record the sale of goods on credit terms, 2/10, n/30.
Debit Cost of goods sold $3,000
Credit Inventory $3,000
To record the cost of goods sold.
April 2 Debit Inventory $8,500
Credit Accounts payable (Wild Corporation) $8,500
To record the purchase of goods on credit terms, 1/10, n/30.
April 4 Debit Inventory $1,100
Credit Accounts payable (Ryan Company) $1,100
To record the purchase of goods on credit terms, n/30.
April 10 Debit Cash $4,116
Debit Cash Discounts $84
Credit Accounts receivable (Mann Company) $4,200
To record the receipt of cash on account, including discounts.
April 11 Debit Accounts payable (Wild Corporation) $8,500
Credit Cash $8,415
Credit Cash Discounts $85
To record the payment on account, including discounts.
Explanation:
a) Data and Analysis:
April 1 Accounts receivable (Mann Company) $4,200 Sales revenue $4,200 terms 2/10, n/30.
Cost of goods sold $3,000 Inventory $3,000
April 2 Inventory $8,500 Accounts payable (Wild Corporation) $8,500 terms 1/10, n/30.
April 4 Inventory $1,100 Accounts payable (Ryan Company) $1,100 n/30.
April 10 Cash $4,116 Cash Discounts $84 Accounts receivable (Mann Company) $4,200
April 11 Accounts payable (Wild Corporation) $8,500 Cash $8,415 Cash Discounts $85
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
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:
Total machine-hours
Total fixed manufacturing overhead cost
Variable manufacturing overhead per machine-hour 31,400 $219,800 4
Recently. Job T687 was completed with the following characteristics:
Number of units in the job 10
Total machine-hours
Direct materials
Direct labor cost $ 580 $1,160
The total job cost for Job T687 is closest to: (Round your intermediate calculation to 2 decimal places)
Answer:
$1960
Explanation:
The computation of the total cost is shown below:
Total variable overhead estimated is
= (4 × 31400)
= $125600
Now
total overhead estimated is
= Total variable overhead estimated + Total fixed overhead estimated
= $125600 + 219800
= $345400
Now predetermined overhead rate is
= $345400 ÷ 31400
= $11 per machine hour
Now total overhead applied is
= (11 × 20)
= $220
So, total job cost is
= Direct material + Direct labor + Total overhead
= (580+1160+220)
= $1960
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
A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $22,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $445. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense
Answer:
The appropriate answer is "$22,305".
Explanation:
The given values are:
Estimated uncollectible,
= $22,750
Credit balance in allowance,
= $445
Now,
The bad debt expense will be:
= [tex]Estimated \ uncollectible-Credit \ balance \ in \ allowance[/tex]
By substituting the values, we get
= [tex]22750-445[/tex]
= [tex]22305[/tex] ($)
ohn and Lisa form a partnership to operate a restaurant. Lisa signs a two-year lease on a space for the restaurant without consulting John. Under the legal concept of ________, John and the partnership are responsible for this lease, although it was only signed by Lisa.
Answer:
General Partnership
Explanation:
The legal concept of General Partnership obliges two or more signing partners -Lisa and John in this case- to share all assets, all liabilities, and to be responsible for all matters related to the business, regardless of who signs a contract, or contracts new debt, or acquires a new asset, and so on.
So under this legal concept, even if John did not sign the lease, he is still legally responsible for it.
In deciding who should chair the wellness committee, several members identified Ian, a tall, handsome 40-ish staff accountant with a lively sense of humor, as someone who would do a good job. It is possible that the committee members were operating under which leadership approach?
a. Traits approach
b. Situational approach
c. Functional approach
d. Relational approach
Answer:
a. Traits approach
Explanation:
It is correct to state that the committee members were operating under the leadership traits approach, which corresponds to the collective perception of an individual's personality through their personal characteristics that are outstanding and that make them stand out among other individuals.
As in the case of Ian, who was perceived by many members as a person with a lively sense of humor, as someone who would do a good job.
The expected average rate of return for a proposed investment of $4,250,000 in a fixed asset, using straight-line depreciation, with a useful life of 20 years, no residual value, and an expected total net income of $8,500,000 over the 20 years is:_________ (round to two decimal points).
a. 10.00%
b. 20.00%
c. 40.00%
d. 1.00%
Answer:
A
Explanation:
Average rate of return is a capital budgeting method. It is used to determine if a firm should invest in a project or should not invest in a project
average rate of return = average net income / average cost of investment
average net income = (total net income - depreciation) / useful life
(8,500,000 - $4,250,000) / 20 = 212,500
Average cost of investment =( beginning book value of the investment - ending book value of the investment) / 2
($4,250,000 - 0) / 2 = 2,125,000
ARR = 212,500 / 2125,000 = 0.1 = 10%
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.
In order to successfully carry out an acquisition, the managers at Pink Inc. prepared a list of potential target companies that it could purchase. In the next step, the managers evaluated each prospective company in depth to understand their methods of operations, processes, procedures, strengths, and limitations in order to choose the best target company. This process of evaluating the companies is best known as:___________.
A- Due diligence
B- Market intelligence
C- Consultation
D- Market evaluation
Answer:
A- Due diligence
Explanation:
Due diligence is an investigation, audit or the review that to be performed in order to confrim the facts within the consideration. It needs the examination of the financial records prior entered into the upcoming transaction with the other party
So as per the given situation, the first option is correct
what is mextura give one example
Answer:
A mixture is a substance made by combining two or more different materials in such a way that no chemical reaction occurs. A mixture can usually be separated back into its original components. Some examples of mixtures are a tossed salad, salt water and a mixed bag of M&M's candy.
Answer:
Mextura is a hybrid font, which combines elements of sansserif and black letter types.
To decrease the money supply, the Federal Reserve could a. decrease the required reserve ratio. b. conduct an open market purchase of U.S. Treasury securities. c. increase the discount rate. d. forbid the reselling of U.S. Treasury securities.
Answer: c. increase the discount rate.
Explanation:
The discount rate of a country is the rate at which the central bank in that country loans money out to the financial institutions.
When this rate is low, more financial institutions will borrow money as opposed to when it is high. Banks borrowing money increases the money supply in the economy so if the Federal Reserve wants to reduce money supply, it should increase the discount rate which would dissuade banks from borrowing from the Fed thereby limiting money supply.
1992 governance was introduce as
Answer:
By kingdoms the governance was introduce
Four major breakfast cereal companies share a majority of the cereal market: Kellogg, Post, General Mills, and Quaker. This is an example of
Answer:
Oligopoly
Explanation:
An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.
Hence, it is a market structure that is distinguished by several characteristics, one of which is either similar or identical products and dominance by few firms.
The characteristics of an oligopolistic market structure are;
I. Mutual interdependence between the firms.
II. It's a market that is typically controlled by many small firms.
III. Difficult entry to new firms.
In this scenario, four major breakfast cereal companies share a majority of the cereal market (identical or similar products) such as Kellogg, Post, General Mills, and Quaker. Thus, this is an example of an oligopoly.
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
A bond has annual coupons, $1000 par value, 2 years to maturity, 8% coupons and a 6% yield. Calculate the Macaulay Duration. The settlement date (purchase date) is 1/1/2030 and maturity date is 1/1/2032.
Give your answer to two decimal place.
Answer:
The answer is "1.93 years".
Explanation:
[tex]Macaula \ \ duration \ \ \ \ \ \ \ \ \ \ 1000 \times 8\%\\\\[/tex]
[tex]years \ \ \ \ cash \ flows \ \ \ \ pv\ of \ 6\%\ \ \ \ present \ value \ \ \ \ current \ value \ \ \ \ pv/current \ value \ \ \ \frac{pv}{cp}\times t[/tex][tex]\$80.00\ \ \ \ \ \ \ 0.9434 \ \ \ \ \ \ \ \$75.472 \ \ \ \ \ \ \ \$1,036.67 \ \ \ \ \ \ \ 0.0728 \ \ \ \ \ \ \ 0.0728\\\\\$ 1,080.00 \ \ \ \ \ \ \ 0.8900 \ \ \ \ \ \ \ \$961.196 \ \ \ \ \ \ \ \$1,036.67 \ \ \ \ \ \ \ 0.9272 \ \ \ \ \ \ \ 1.8544\\\\[/tex]
[tex]\$ 1,036.668 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1.92772\\\\[/tex]
that's why the Macaula duration is 1.93 years.
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
Changes in the products for which a nation has a comparative advantage create sectoral shocks leading to an increase in frictional unemployment. a. True b. False
Answer: False
Explanation:
Frictional unemployment is a natural unemployment that results when people enter the labor force for the first time and when people move from one job to another. It is therefore not caused by sectoral shocks and every economy, even the best performing ones, will have frictional unemployment.
The unemployment that results from sectoral shocks is cyclical unemployment. This one is not natural and results from the business cycle and shocks to the economy.
Boats and Bait has 78,000 shares outstanding that sell for a price of $74 per share. The stock has a par value of $2 per share. The company's balance sheet shows capital surplus of $185,000 and retained earnings of $225,000. If the company declares a stock dividend of 17.5 percent, what is the new common stock value on the balance sheet?
Answer:
$183,300
Explanation:
The computation is shown below:
Value of common stock value on the balance sheet prior to the stock dividend is
= No of stock outstanding × Face value per share
= 78,000 × $2
= $156,000
Now
New shares to be issued is
= 78,000 × 0.175
= 13,650 shares
So,
Total shares outstanding after stock issue is
= 78,000 + 13,650
= 91,650 shares
Now the value of common stock after stock dividend is
= 91,650 × $2
= $183,300
Manner Inc. has incurred the following overhead costs over a 6 week period: Calculate the approximate fixed cost component of Manner's overhead costs using the high-low method. Group of answer choices $408. $470. $258. $250. $542.
Answer:
250 dollars
Explanation:
Variable cost = 1190-710/94-46
= 480/48
= 10 dollars
Fixed cost = 1190-(10*94)
= 1190-940
= 250 dollars
Fixed cost = 710-(10*46)
= 710-460
= 250 dollars
2019 2018 2017 2016 2015 Sales $ 282,880 $ 270,800 $ 252,600 $ 234,560 $ 150,000 Cost of goods sold 128,200 122,080 115,280 106,440 67,000 Accounts receivable 18,100 17,300 16,400 15,200 9,000 Compute trend percents for the above accounts, using 2015 as the base year.
Answer:
Sales
2019 Net Sales = 188.59%
2018 Net Sales = 180.53%
2017 Net Sales = 168.4%
2016 Net Sales = 156.37%
Cost of Goods Sold
2019Cost of Goods Sold = 191.34%
2018 Cost of Goods Sold = 182.21%
2017 Cost of Goods Sold = 172.06%
2016 Cost of Goods Sold = 158.87%
Accounts Receivable:
2019 Accounts Receivable = 201.11%
2018Accounts Receivable = 192.22%
2017Accounts Receivable = 182.22%
2016Accounts Receivable = 168.89%
Explanation:
Computation forn trend percents for the above accounts, using 2015 as the base year:
FOR SALES:
2019:
Net Sales = Sales 2019 / Sales 2015*100
Net Sales = $282,880 / $150,000 * 100
Net Sales = 188.59%
2018:
Net Sales = Sales 2018 / Sales 2015*100
Net Sales = $270,800 / $150,000 * 100
Net Sales = 180.53%
2017:
Net Sales = Sales 2017 / Sales 2015*100
Net Sales = $252,600 / $150,000 * 100
Net Sales = 168.4%
2016:
Net Sales = Sales 2016 / Sales 2015*100
Net Sales = $234,560 / $150,000 * 100
Net Sales = 156.37%
COST OF GOODS SOLD:
2019:
Cost of Goods Sold = Cost of Goods Sold 2019 / Cost of Goods Sold 2015 *100
Cost of Goods Sold = $128,200 / $67,000 * 100
Cost of Goods Sold = 191.34%
2018:
Cost of Goods Sold = Cost of Goods Sold 2018 / Cost of Goods Sold 2015 *100
Cost of Goods Sold = $122,080 / $67,000 * 100
Cost of Goods Sold = 182.21%
2017:
Cost of Goods Sold = Cost of Goods Sold 2017 / Cost of Goods Sold 2015 *100
Cost of Goods Sold = $115,280 / $67,000 * 100
Cost of Goods Sold = 172.06%
2016:
Cost of Goods Sold = Cost of Goods Sold 2016 / Cost of Goods Sold 2015 *100
Cost of Goods Sold = $106,440 / $67,000 * 100
Cost of Goods Sold = 158.87%
ACCOUNTS RECEIVABLE:
2019:
Accounts Receivable = Accounts Receivable 2019 / Accounts Receivable 2015 * 100
Accounts Receivable = $18,100 / $9,000 * 100
Accounts Receivable = 201.11%
2018:
Accounts Receivable = Accounts Receivable 2018 / Accounts Receivable 2015 * 100
Accounts Receivable = $17,300 / $9,000 * 100
Accounts Receivable = 192.22%
2017:
Accounts Receivable = Accounts Receivable 2017 / Accounts Receivable 2015 * 100
Accounts Receivable = $16,400 / $9,000 * 100
Accounts Receivable = 182.22%
2016:
Accounts Receivable = Accounts Receivable 2016 / Accounts Receivable 2015 * 100
Accounts Receivable = $15,200 / $9,000 * 100
Accounts Receivable = 168.89%
Three years ago, Kuley invested $32,200. In 2 years from today, he expects to have $50,300. If Kuley expects to earn the same annual return after 2 years from today as the annual rate implied from the past and expected values given in the problem, then in how many years from today does he expect to have exactly $87,200
Answer:
8.17 years(closest to 8 years )
Explanation:
The future value of $50,300, would be accumulated after 5 years of having made the investment(3 years+2 years=5 years)
As a result, we can determine the annual rate of return based on the future value in year 5 using the future value formula below:
FV=PV*(1+r)^n
FV=future value=$50,300
PV=amount invested initially=$32,200
r=unknown=annual rate of return
n=5 years
$50,300=$32,200*(1+r)^5
$50,300/$32,200=(1+r)^5
$50,300/$32,200 can be rewritten as ($50,300/$32,200)^1
($50,300/$32,200)^1=(1+r)^5
divide index on both sides by 5
($50,300/$32,200)^(1/5)=1+r
r=($50,300/$32,200)^(1/5)-1
r=9.33%
Our next task is to determine how long( in years) it takes to accumulate a future value of $87,200 from today's point, which means we need to determine the value of the investment today( 3 years after making the investment)
FV=$32,200*(1+9.33%)^3
FV=value of investment today=$42,079.82
Lastly, we can ascertain when $42,079.82 today would become $87,200
$87,200=$42,079.82*(1+9.33%)^n
n=number of years=unknown
$87,200/$42,079.82=(1+9.33%)^n
$87,200/$42,079.82=1.0933^n
take log of both sides
ln ($87,200/$42,079.82)=n ln(1.0933)
n=ln ($87,200/$42,079.82)/ln(1.0933)
n=0.72863604/0.08920065
n=8.17 years( from today, approx 8 years)
In a sandwich shop, 3 workers are able to make 45 sandwiches in an hour during the lunch rush. When a 4th worker is added, the team is able to make 57 sandwiches. Calculate the marginal product of adding the 4th worker.
Answer:
12
Explanation:
Calculation to determine the marginal product of adding the 4th worker
Using this formula
MP=ΔTPΔL
Let plug in the formula
ΔTP=57−45
ΔTP=12
Therefore The marginal product of adding the 4th worker is 12 sandwiches.
A company developed the following per unit standards for its products: 2.30 pounds of direct materials at $5.7 per pound. Last month, 2500 lbs of direct materials were purchased for $5900. The direct materials price variance for last month was
Answer: $5,010 Favorable
Explanation:
Direct materials price variance is calculated by the formula:
= (Standard Price - Actual Price) * Quantity Purchased
Actual price = Amount pounds were purchased for / Pounds purchased
= 5,900 / 2,500
= $2.36
Direct materials price variance = (5.7 - 2.36) * 2,500
= $5,010 Favorable
Making a Decision as Chief Financial Officer: Contingent Liabilities
For each of the following situations, determine whether the company should (a) report a liability on the balance sheet, (b) disclose a contingent liability, or (c) not report the situation. Justify and explain your conclusions.
1. An automobile company introduces a new car. Past experience demonstrates that lawsuits will be filed as soon as the new model is involved in any accident The company can be certain that at least one jury will award damages to people injured in an accident.
2. A research scientist determines that the company’s best-selling product may infringe on another company’s patent. If the other company discovers the infringement and suit, your company could lose millions.
3. As part of land development for a new housing project, your company has polluted lake. Under state law, you must clean up the lake once you complete development project will take five to eight years to complete. Current estimates indicate it will cost $2 to $3 million to clean up the lake.
4. Your Company has just been notified that it lost a product liability lawsuit for $1 million that it plans to appeal. Management is confident that the company will on appeal, but the lawyears belive that it will lose.
5. A key customer is unhappy with the quality of a major construction project. The company belives that the customer is being unreasonable but, to maintain goodwill, has decided to do $250,000 in next year.
Answer:
sry need points
Explanation:
Assume General Electric (GE) has about 10.3 billion shares outstanding and the stock price is $37.10. Calculate the market value for GE. (Approximately)
Answer: $382 billion
Explanation:
The market capitalization refers to the total market value of the equity of a firm and this is calculated as the firm's stock market price multiplied by the number of shares that's outstanding. This will be:
= 10.3 billion × $37.10
= $382 billion
Therefore, the market value for GE is $382 billion.
During the year, Wright Company sells 500 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 40 $ 68 $ 2,720 May. 5 Purchase 270 71 19,170 Nov. 3 Purchase 220 76 16,720 530 $ 38,610 Calculate ending inventory and cost of goods sold for the year, assuming the company uses specific identification. Actual sales by the company include its entire beginning inventory, 250 units of inventory from the May 5 purchase, and 210 units from the November 3 purchase.
Answer:
Wright Company
Cost of goods sold = $36,430
Ending inventory = $2,180
Explanation:
a) Data and Calculations:
Date Transaction Number of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 40 $ 68 $ 2,720
May. 5 Purchase 270 71 19,170
Nov. 3 Purchase 220 76 16,720
Total available for sale 530 $ 38,610
Specific identification of Sales of 500 units:
Cost of goods sold:
Jan. 1 Beginning inventory 40 $ 68 $ 2,720
May. 5 Purchase 250 71 17,750
Nov. 3 Purchase 210 76 15,960
Total 500 $36,430
Cost of goods sold = $36,430
Ending inventory:
May. 5 Purchase 20 71 $1,420
Nov. 3 Purchase 10 76 760
Total 30 $2,180
Ending inventory = $2,180
Service Pro Corp (SPC) is preparing adjustments for its September 30 year- end. For the following transactions and events, show the September 30 adjusting entries that SPC would make
a. Prepaid Insurance shows a balance of zero at September 30, but Insurance Expense shows a debit balance of $2,340, representing the cost of a three-year fire insurance policy purchased on September 1 of the current year.
b. On August 31 of this year, Cash was debited and Service Revenue was credited for $ 1,500. The $ 1,500 related to fees for a three- month period beginning September 1 of the current year.
c. The company’s income tax rate is 20%. After making the above adjustments, SPC’s net income before tax is $ 10,000. No income tax has been paid or recorded.
Answer:
1 . Dr Prepaid Insurance $2,275
Cr Insurance Expense $2,275
2. Dr Service Revenue $1,000
Cr Deferred Revenue $1,000
3. Dr Income Tax Expense $2,000
Cr Income Tax Payable $2,000
Explanation:
Preparation of the journal entries
1 . Dr Prepaid Insurance $2,275
Cr Insurance Expense $2,275
($2,340 - $2,340 × 1 months ÷ 36 months
= $2,340 - $65
= $2,275)
2. Dr Service Revenue $1,000
Cr Deferred Revenue $1,000
($ 1,500 × 2 months ÷ 3 months
= $1,000)
3. Dr Income Tax Expense $2,000
Cr Income Tax Payable $2,000
(.20*$10,000)
What would be the return on total assets of a firm if net income is $50,000, total sales are $100,000, and total assets are $175,000
Answer: 28.6%
Explanation:
The return on the total asset of a firm will be calculated as the net income divided by the total asset and this will be:
=Net income / Total assets
=50,000/175,000
=28.6%
Therefore, return on total asset is 28.6%
A Brazilian steel manufacturer started selling certain categories of steel in the United States. However, the Brazilian manufacturer is selling the steel at a price significantly lower than it sells the same product back in Brazil. This practice may be a violation of U.S. law.
a) true
b) false
Answer:
This practice may be a violation of U.S. law.
a) true
Explanation:
To protect local industries from unfair competition from other countries, the US enforces antidumping and countervailing laws. The laws seek to investigate, prevent, and impose adequate tariffs on imported goods that are priced lower in the U.S. market than in the exporting country's market or imported goods that are subsidized by the exporting country's government.
