Answer and Explanation:
1. The computation of net sales is shown below:-
Net sales = Gross Sales - Sales Returns - Sales Discounts
= $31,320 - $784 - ($$31,320 - $784) × 2%)
= $31,320 - $784 - $610.72
= $29,925.28
2. The preparation of multistep income statement is shown below:-
Income Statement
Net sales revenue $29,925.28
Cost of Goods Sold $16,840
($17,400 - $560)
Gross Profit $13,085.28
Selling and Administrative
Expenses $3,132
Income from Operations $9,953.28
Other Income / Expense
Gain on sale of land $2,240
($8,640 - $6,400)
Interest Expense $240 $2,000
Net income $11,953.28
An analysis and aging of the accounts receivable of Raja Company at December 31 reveal these data: Accounts receivable: $800,000 Allowance for doubtful accounts per books before adjustment (credit): $50,000 Amounts expected to become uncollectible : $65,000 What is the cash realizable value of the accounts receivable at December 31, after adjustment? Select one: a. $685,000. b. $750,000. c. $800,000. d. $735,000.
Answer:
The correct option is D,$735,000
Explanation:
The cash realizable value of accounts receivable for the year is the accounts receivable of $800,000 less the amount expected to become uncollectible in the current year which $65,000.
The realizable value of accounts receivable =$800,000-$65,000=$735,000
The allowance for doubtful accounts before adjustment was already dealt with in previous year,I mean the difference between last year allowance and this year was accounted for by posting $15,000 into allowance account thereby leading a closing balance of $65,000.
The following information relates to the pension plan for the employees of Turner Co.: 1/1/20 12/31/20 12/31/21 Projected benefit obligation 9,765,000 10,458,000 14,007,000 Fair value of plan assets 8,925,000 10,920,000 12,054,000 AOCI – net (gain) or loss -0- (1,512,000) (1,680,000) Settlement rate (for year) 11% 11% Expected rate of return (for year) 8% 7% Turner estimates that the average remaining service life is 16 years. Turner's contribution was $1,323,000 in 2021 and benefits paid to retired employees was $987,000. The amount of AOCI (net gain) amortized in 2021 is
Answer:
The amount of AOCI (net gain) amortized in 2021 is $26,250
Explanation:
In order to calculate the calculate the amount of AOCI (net gain) amortized in 2021 we would have to use the following formula:
amount of AOCI (net gain) amortized in 2021=(AOCI net gain 12/31/20-Corridor amount for 2021)/Average remaining service life
AOCI net gain 12/31/20=$1,512,000
Corridor amount for 2021=$1,092,000=10,920,000*10%
Average remaining service life=16
Therefore, AOCI (net gain) amortized in 2021=($1,512,000-$1,092,000)/16
AOCI (net gain) amortized in 2021=$26,250
The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead (a) 486,144 (b) 405,120 Bal. 81,024 Work in Process Bal. 10,880 (c) 754,000 298,500 90,500 (b) 405,120 Bal. 51,000 Finished Goods Bal. 39,000 (d) 662,000 (c) 754,000 Bal. 131,000 Cost of Goods Sold (d) 662,000 The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows: Work in Process, ending $ 24,480 Finished Goods, ending 62,880 Cost of Goods Sold 317,760 Overhead applied $ 405,120 For example, of the $51,000 ending balance in work in process, $24,480 was overhead that had been applied during the year. Required: 1. Identify reasons for entries (a) through (d). 2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. 3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.
Answer and Explanation:
As per the data given in the question,
1.
a) Cost of goods manufactured.
b) Cost of goods sold.
c) Overhead cost applied to work in process
d) Actual manufacturing overhead cost.
2. Journal Entry
Manufacturing overhead A/c Dr. 81,024
To cost of goods sold A/c. 81,024
3.
Work in process ending $24,480 =6.04%
Finished goods ending $62,880 =15.52%
Cost of goods sold $317,760 =78.44%
Total cost $405.120 =100%
To calculate overhead allocation :
Work in process ending = ($81,024× 6.04%) =$4,894
Finished goods ending = ($81,024 × 15.52%) =$12,575
Cost of goods sold = ($81,024 × 78.44%) = $63,355
Total cost = $81,024
Journal Entry
Manufacturing overhead A/c Dr. 81,024
To work in process A/c. $4,893
To finished goods A/c. $12,575
To cost of goods sold A/c. $63,555
Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,800 direct labor-hours will be required in August. The variable overhead rate is $1.20 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,560 per month, which includes depreciation of $8,790. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
Answer:
Total cash= $101,130
Explanation:
Giving the following information:
Estimated direct labor hours= 7,800
The variable overhead rate is $1.20 per direct labor-hour.
The company's budgeted fixed manufacturing overhead is $100,560 per month, which includes depreciation of $8,790.
We need to deduct the depreciation expense because it is not a cash disbursement.
Cash disbursement:
Variable overhead= 7,800*1.2= $9,360
Fixed overhead= (100,560 - 8,790)= $91,770
Total cash= $101,130
Oklahoma enacts a law requiring all businesses in the state to donate 10 percent of their profits to Protestant churches that provide services to indigent persons. Price-Lo Mart files a law suit to block the enforcement of the law. The court will probably decide that this law violates: a. the Free Exercise clause. b. the Supremacy clause. c. the Equal Protection clause. d. the Establishment clause.
Answer: d. the Establishment clause.
Explanation:
The Establishment Clause was put in place as a limitation by the United States Congress to prevent excesses or stop it from passing legislation forcing an establishment, religion, which broadly made it illegal for the government to promote theocracy or promote a specific religion with taxes. As this is the case with the state asking business to donate 10% of their profit to Protestant.
Answer:
The establishment clause.
Explanation:
Establishment clause, also called establishment-of-religion clause, clause in the First Amendment to the U.S. Constitution forbidding Congress from establishing a state religion. It prevents the passage of any law that gives preference to or forces belief in any one religion. It is paired with a clause that prohibits limiting the free expression of religion.
As the citizenry became more diverse, however, challenges arose to existing laws and practices, and eventually, the Supreme Court was called upon to determine the meaning of the establishment clause.
Though not explicitly stated in the First Amendment, the clause is often interpreted to mean that the Constitution requires the separation of church and state.
If all goes according plan, Robo-Tech will soon have access to a new valuable external financing resource, that it can use to finance it future growth potential. To Do a. For Robo-Tech, what are the advantages of being a publicly listed company? b. For Robo-Tech, what are the disadvantages of being a publicly listed company? c. If Robo-Tech prefers that its shares trade on a centralized exchange, what listing exchanges make the most sense for Robo-Tech and why? d. Once Robo-Tech has sold its shares to the public does it care whether capital markets are efficient? In other words, how does market efficiency affect Robo-Tech?
Answer:
The overview of the offer problem is listed in the segment below on the explanation.
Explanation:
Becoming a publicly traded business gives access to that information or fund that it wants to expand. Shareholders can receive cash if a payout is not received, without getting the right to refer the organization to bankruptcy proceedings.Making it public gives the business the opportunity to even get a come back through his as well as her hard work. The proprietor can consolidate his and perhaps her business plan by releasing information. In reality, it's hard to evaluate the corporation's worth without making it public.So that the above is the right answer.
Answer:
????
Explanation:
As of December 31, 2019, Sheridan Company had $3500 of raw materials inventory. At the beginning of 2019, there was $3000 of materials on hand. During the year, the company purchased $315000 of materials; however, it paid for only $252500. How much inventory was requisitioned for use on jobs during 2019
Answer: $314,500
Explanation:
When calculating how much of a material of any sort was used, the following formula should be used,
= Beginning inventory + Purchases - Ending inventory
This is the same formula largely used to calculate Cost of Goods sold.
Here, the figure to be concerned about is the actual materials used not the ones paid for.
Plugging in figures into the formula then,
= 3,000 + 315,000 - 3,500
= $314,500
Thus $314,500 was the inventory requisitioned for use on jobs during 2019.
The corporate charter of Andromeda Co. authorized the issuance of 21 million, $1 par common shares. During 2021, its first year of operations, Andromeda had the following transactions: January 1 sold 6 million shares at $26 per share June 3 purchased 13 million shares of treasury stock at $29 per share December 28 sold the 4 million shares of treasury stock at $31 per share What amount should Andromeda report as additional paid-in capital in its December 31, 2021, balance sheet
Answer:
$158 million
Explanation:
The computation of total additional paid in capital is shown below:-
Paid in capital in excess of par value-Common Stock = ($26 - 1) × 6 million
= 25 × 6 million
= $150 million
Paid in capital from sale of treasury Stock = ($31 - $29) × 4 million
= $8 million
Total additional paid in capital = Paid in capital in excess of par value-Common Stock + Paid in capital from sale of treasury Stock
= $150 million + $8 million
= $158 million
So, for computing the total additional paid in capital we simply applied the above formula.
a doctor works in a....
Answer:
Clinic or Hospital
Explanation:
:)
Your bagel shop uses both capital and labor in the production of bagels. In this production process capital and labor are substitutes. If you install a new oven and the marginal product of capital increases, you will:
a. reduce the number of workers you employ
b. increase the number of workers you employ
c. reduce the amount of capital you are using not make any changes since you are already maximizing profit
Answer:
The answer is option A) reduce the number of workers you employ
Explanation:
Installing a new oven is capital intensive. So, for a business person to incur an additional capital cost to aid the efficiency of production, something has to give.
In this case, where capital and labor are substitutes, installing a new oven will drastically reduce the workload thereby necessitating a reduction in the number of workers.
By implication, the cost of paying wages which is a recurrent expenditure will reduce. In the long run and if the oven is maintained, it will e a very cost effective option.
Installing a new oven also suggests a marginal increment in capital.
On November 27, the board of directors of Armstrong Company declared a $.50 per share dividend. The dividend is payable to shareholders of record on December 7 on December 24. Armstrong has 25,500 shares of $1 par common stock outstanding at November 27. Journalize the entries needed on the declaration and payment dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
On November 27
Debit Retained earnings $12,750
Credit Dividend payable $12,750
(To record the dividend declared)
On December 24
Debit Dividend payable $12,750
Credit Cash $12,750
(To record dividend paid)
Explanation:
Dividends on gains on shares bought by the shareholders. They arise due to appreciation in share price and improvement in company's net income.The dividend payable was calculated as $.5 x 25,500 shares = $12,750.Dividends are usually paid out of retained earnings.The dividend payable account is debited when payment is to be made.Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.90 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 1.10 pounds. Materials cost $4 per pound, but Stefani always takes the 2.00% cash discount all of its suppliers offer. Freight costs average $0.40 per pound. Direct labor. Each unit requires 1.60 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly pay rate of Stefani’s employees is $10.90. Payroll taxes and fringe benefits are an additional $3.20 per hour. Manufacturing overhead. Overhead is applied at a rate of $7.60 per direct labor hour. Compute Stefani’s total standard cost per unit
Answer:
$58.49 per unit
Explanation:
According to the scenario, computation of the given data are as follow:-
We can calculate the total standard cost by using following formula:-
Material Cost Per Unit = Material Cost × (1 - Cash Discount Rate) + Freight Average Cost
= $4 × (1 - 0.02) + .40
= $4 × 0.98 + .40
= $4.32 per pound
Material Used Per Unit = Each Unit Product Contain Material + Average Waste and Spoilage Per Unit Produced
= 3.90 + 1.10
= 5
Direct Material Cost= Material Cost Per Unit × Material Used Per Unit
= $4.32 × 5
= $21.6 per unit
Cost Per hour = Average hour Pay Rate + Payroll Taxes and Fringe Benefits Cost
= $10.90 + $3.20
= $14.1
Direct Labor hour = Cost Per hour × Each Unit Required hour
= $14.1 × (1.60 + 0.10)
= $14.1 × 1.70
= $23.97 per unit
Manufacturing Overhead
= Overhead Applied Rate Per Direct Labor hour × Each Unit Required Hour
= $7.60 × (1.60 + 0.10)
= $7.60 × 1.70
= $12.92 per unit
Total Standard Cost Per Unit = Direct Material Cost + Direct Labor Cost + Manufacturing Overhead
= $21.6 + $23.97 + $12.92
= $58.49 per unit
The Computation of Stefani's total standard cost per unit will give result of $58.49 per unit.
Total Standard Cost
To Calculate Total Standard Cost we need to add Direct Material Cost, Direct Labor Cost and Manufacturing Overhead.
A. Direct Material Cost = Material Cost Per Unit × Material Used Per Unit
Material Cost Per Unit = Material Cost × (1 - Cash Discount Rate) + Freight Average Cost
= $4 × (1 - 0.02) + .40
= $4.32 per pound.
Material Used Per Unit = Each Unit Product Contain Material + Average Waste and Spoilage Per Unit Produced
= 3.90 + 1.10
= $5
Direct Material Cost = $4.32 × 5 = $21.6 per unit.
B. Direct Labor Cost
It equals to Cost Per hour × Each Unit Required hour.
Cost Per hour = Average hour Pay Rate + Payroll Taxes and Fringe Benefits Cost
= $10.90 + $3.20
= $14.1
Direct Labor Cost = $14.1 × (1.60 + 0.10) = $23.97 per unit
C. Manufacturing Overhead
It equals to Overhead Applied Rate Per Direct Labor hour × Each Unit Required Hour
= $7.60 × (1.60 + 0.10)
= $12.92 per unit.
Total Standard Cost Per Unit = A + B + C = $21.6 + $23.97 + $12.92
= $58.49 per unit
Learn More about Standard Cost here:
https://brainly.com/question/25279292
Aquatic Equipment Corporation decided to switch from the LIFO method of costing inventories to the FIFO method at the beginning of 2021. The inventory as reported at the end of 2020 using LIFO would have been $59,000 higher using FIFO. Retained earnings at the end of 2020 was reported as $770,000 (reflecting the LIFO method). The tax rate is 35%. Required: 1. Calculate the balance in retained earnings at the time of the change (beginning of 2021) as it would have been reported if FIFO had been used in prior years. 2. Prepare the journal entry at the beginning of 2021 to record the change in accounting principle.
Answer:
1. The balance in retained earnings at the time of the change is $808,350
2. The journal entry at the beginning of 2021 to record the change in accounting principle woud be as follows:
Inventoty $59,000
Retained Earnings $38,350
Tax Payable $20,650
Explanation:
1. In order to calculate the balance in retained earnings at the time of the change (beginning of 2021) as it would have been reported if FIFO had been used in prior years we would have to make the following calculation:
balance in retained earnings at the time of the change=Begining Retained earnings of 2021+Adjusted net income
Adjusted net income=Ending inventory higher by amount×(1-tax rate)
Adjusted net income=$59,000×(1-0.35)
Adjusted net income=$38,350
balance in retained earnings at the time of the change=$770,000+$38,350
balance in retained earnings at the time of the change=$808,350
2. The journal entry at the beginning of 2021 to record the change in accounting principle woud be as follows:
Inventoty $59,000
Retained Earnings $38,350
Tax Payable $20,650= $59,000×0.35
Information on Carney Company's fixed overhead costs follows: Overhead applied $ 361,200 Actual overhead 387,300 Budgeted overhead 372,000 Required: What are the fixed overhead price and production volume variances? (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)
Answer:
The Fixed overhead price is "U" (unfavorable) and the The fixed overhead production volume is "U" (unfavorable)
Explanation:
Solution
Given that:
Fixed overhead price Variance is computed as:
Fixed overhead price Variance = Actual - Budgeted
= 387,300 - 372,000
= 15,300 U
Thus,
The Fixed overhead production volume variance is computed as:
Fixed overhead production volume variance = = Budgeted - applied
= 372,000 - 361,200
= 10,800 U
Dan Bumblauskas is the owner of a small Iowa company that produces electric knives used to cut fabric. The annual demand is for 10 comma 500 knives, and Dan produces the knives in batches. On average, Dan can produce 190 knives per day; during the production process, demand has been about 70 knives per day. The cost to set up the production process is $85, and it costs Dan $1.10 to carry a knife for 1 year. How many knives should Dan produce in each batch?
Answer:
1,012.36 knives produced in each month
Explanation:
Data provided in the question
Annual demand = 10,500
Ordering cost = $85
Holding cost = $1.10
Daily demand = 70 knives per day
Production knives per day = 190 knives
Based on the given information, we need to apply the formula which is shown below:[tex]Economic\ order\ quantity = \sqrt{\frac{2\times annual\ demand \times ordering\ cost}{holding\ cost} \times 1 - \frac{daily\ demand}{production}[/tex]
[tex]Economic\ order\ quantity = \sqrt{\frac{2\times 10,500 \times\$85}{\$1.10} \times 1 - \frac{70}{190}[/tex]
= 1,012.36 knives produced in each month
We simply applied the above formula to find out the knives produced in each batch
A company produces a single product. Last year, fixed manufacturing overhead was $30,000, variable production costs were $48,000, fixed selling and administration costs were $20,000, and variable selling administrative expenses were $9,600. There was no beginning inventory. During the year, 3,000 units were produced and 2,400 units were sold at a price of $40 per unit. Under variable costing, net operating income would be
Answer:
Net operating income= (2,000)
Explanation:
Giving the following information:
fixed manufacturing overhead was $30,000
variable production costs were $48,000
fixed selling and administration costs were $20,000
variable selling administrative expenses were $9,600.
During the year, 3,000 units were produced and 2,400 units were sold for $40 per unit.
First, we need to calculate the unitary product variable cost:
Unitary product cost= 48,000/3,000= $16
Income statement:
Sales= 2,400*40= 96,000
Total variable cost= (2,400*16) + 9,600= (48,000)
Contribution margin= 48,000
fixed manufacturing overhead= (30,000)
fixed selling and administration costs were= (20,000)
Net operating income= (2,000)
g Based on the Keynesian model, one reason to support government spending increases over tax cuts as a tool for stimulating the economy is: Group of answer choices the government-spending multiplier is smaller than the tax multiplier. the government-spending multiplier is larger than the tax multiplier. tax cuts do not cause the budget deficit to increase. increases in government spending do not cause the budget deficit to increase.
Answer:
The answer is: The multiplier of public spending is greater than the tax multiplier.
Explanation:
Unemployment is caused by insufficient global demand. Therefore, to combat unemployment, aggregate demand (Da) will have to be increased, and for this, according to Keynes' formula, the following components must be acted on:
-Increase demand for consumer goods (C)
To stimulate consumption, taxes will have to be reduced, thus causing an increase in the disposable income of families.
-Increase the demand for investment goods (I)
This increase will be achieved by reducing the cost of money; in other words, lowering interest rates, thus encouraging companies to invest.
-Increase public sector demand (G)
It comes from the increase in public spending by the State (more roads, more hospitals).
-Increase the demand of international markets (X-M)
To promote exports, the exchange rate will have to be reduced. Increasing exports boosts domestic production.
The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. If Burkett Corporation is able to achieve the budgeted level of sales, its margin of safety in dollars would be?
Sales (50,000 units) $1,000,000
Costs:
Direct materials $270,000
Direct labor 240,000
Fixed factory overhead 100,000
Variable factory overhead 150,000
Fixed marketing costs 110,000
Variable marketing costs 50,000 920,000
Pretax income $80,000
Answer:
Margin of safety= $275,862
Explanation:
Giving the following information:
Sales (50,000 units) $1,000,000
Costs:
Direct materials $270,000
Direct labor 240,000
Fixed factory overhead 100,000
Variable factory overhead 150,000
Fixed marketing costs 110,000
Variable marketing costs 50,000
First, we need to calculate the total variable costs and total fixed costs:
Total variable costs= 270,000 + 240,000 + 150,000 + 50,000
Total variable costs= 710,000
Total fixed costs= 100,000 + 110,000= 210,000
Now, we need to determine the break-even point in dollars:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 210,000 / [(1,000,000 - 710,000)/1,000,000]
Break-even point (dollars)= 210,000/0.29
Break-even point (dollars)= 724,138
Finally, the margin of safety in dollars:
Margin of safety= (current sales level - break-even point)
Margin of safety= 1,000,000 - 724,138
Margin of safety= $275,862
Selected information from Illikon Corporation's accounting records and financial statements for 2021 is as follows ($ in millions): Cash paid to acquire equipment $ 120 Cash paid to acquire land 54 Treasury stock acquired with cash and then retired 75 Dividend revenue received 66 Gain from the sale of buildings 78 Proceeds from sale of buildings 135 In its statement of cash flows, Illikon should report net cash outflows from investing activities of:
Answer:
$39
Explanation:
According to the scenario, computation of the given data are as follows:
We can calculate the Net cash outflow by using following formula:
Net cash outflow from investing activities to be reported = Cash paid to acquire equipment + Cash paid to acquire land - Proceeds from sale of building
By putting the value in the formula, we get
= $120 + $54 - $135
= $39
Hence, Net cash outflow from investing activities to be reported is $39.
Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing.
Current Machine New Machine
Original purchase cost $15,300 $25,100
Accumulated depreciation $6,200 ------
Estimated annual operating costs $24,800 $19,800
Remaining useful life 5 years 5 years
If sold now, the current machine would have a salvage value of $10,800. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years.
Should the current machine be replaced?
Answer:
The current machine should be replaced. It costs more plus the overhead costs to maintain the current machine than it would cost to maintain the new machine.
The analysis is as follows:
Explanation:
1. Cost Analysis of Current Machine:
Book value of equipment = $9,100 ($15,300 - $6,200)
Annual Operating Costs for 5 years = $124,000 ($24,800 x 5)
Total cost = $133,100 ($9,100 + $124,000)
2. Cost Analysis for New Machine:
Purchase cost = $25,100
Annual operating costs for 5 years = $99,000 ($19,800 x 5)
Total cost for 5 years = $124,100 ($25,100 + $99,000)
Since both machines have no salvage value at the end of 5 years, it makes sense to purchase the new machine with a cost saving of $9,000 ($133,100 - $124,100) plus the overtime cost that will be eliminated.
Financial statement data for the years ended December 31 for Parker Corporation are as follows: Current Year Prior Year Sales $2,595,600 $2,409,498 Fixed assets (net): Beginning of year $901,070 $820,000 End of year 829,330 901,070 a. Determine the fixed asset turnover ratio for the current and prior years. Round your answers to one decimal place. Current Year: Prior Year: b. Does the change in fixed asset turnover ratio from the prior year to the current year indicate a favorable or unfavorable trend
Answer:
we need to calculate the Average Fixed assets for both the periods.
Average Fixed Assets = (Fixed Assets at the beginning + Fixed assets at the ending period)/2
Current Year = ($901070+829330)/2
= 1730400/2
=$865200
Prior Year = $820000+901070
= 1721070/2
= $860535
Fixed Assets Turnover = Sales/Average Fixed Assets
Current year = $2595600/865200
= 3
Prior Year = $2409498/860535
= 2.8
b) There is an increase in the Fixed asset turnover which indicates an increase in efficiency of using fixed assets to generate sales.
Answer:
a. Current year 1.5 Prior year 1.4
b. Yes it indicates a favorable trend as it shows that sales of $1.50 was generated for every $1 invested in current year as against $1.40 for every $1 invested in prior year.
Explanation:
Fixed Asset turnover is the ratio of revenue to average Fixed assets of a company.
It is a financial indicator that shows how much revenue a company generates in an accounting period for each $ 1 invested in assets (fixed asset in this case).
Average assets in the
current year
= $901,070 + $829,330
= $1,730,400
Prior year
= $820,000 + $901,070
= $1,721,070
As such fixed assets turnover for
current year
= $2,595,600/$1,730,400
= 1.5
prior year
= $2,409,498/$1,721,070
= 1.4
In conducting the audit procedures for the search for unrecorded liabilities, the materiality/scope for this area was accessed by the auditors at $5,000. Adjustments are only recorded for individual items equal to or exceeding materiality. The company fiscal year end is December 31, 2019 and the last day of fieldwork is estimated to be February 1, 2020. Below is an item from the check/cash disbursement register, which is not recorded in the accounts payable subsidiary ledger at December 31, 2019. Daniel Breen, Esquire Check Number 1334 Check Date 1/6/2020 Amount $6,000 Nature of the Expenses: Corporate legal services for December 2019 Required: Determine if this check/cash disbursement is recorded in the proper accounting period. This transaction requires an accounting adjustment to the financial statements for the fiscal year ending 12/31/2019 - If you believe that statement is correct - answer "Yes" This transaction does NOT require an accounting adjustment to the financial statements for the fiscal year ending 12/31/2019 - If you believe that statement is correct - answer "No."
Answer:
"No."
This transaction does NOT require an accounting adjustment to the financial statements for the fiscal year ending 12/31/2019 - If you believe that statement is correct - answer "No."
Explanation:
The check disbursement does not require an adjustment to the financial statements for the fiscal year ending 12/31/2019, because the check is dated 1/6/2020.
Adjusting entries are changes to the journal entries which tries to match transactions to their correct accounting periods. A check dated January 6, 2020 does not belong to the fiscal year ending December, 2019.
Adjusting entries are usually for Accrued Revenue, Accrued Expenses, Deferred Revenue, Prepaid Expenses, and Depreciation Expenses.
A company sold $12,000 worth of bicycles with an extended warranty. The company’s experience is that warranty expense averages 2% of sales. The current period’s entry to record the warranty expense is: Multiple Choice Debit Warranty Expense $240; credit Cash $240. Debit Prepaid Warranties $240; credit Warranty Expense $240. Debit Estimated Warranty Liability $240; credit Cash $240. Debit Sales Allowances $240; credit Estimated Warranty Liability $240. Debit Warranty Expense $240; credit Estimated Warranty Liability $240.
Answer:
Debit Warranty Expense $240; credit Estimated Warranty Liability $240.
Explanation:
The Journal entry is shown below:-
Warranty expenses Dr, $240
To Estimated warranty liability $240
(Being warranty expense is recorded)
When the company sells warranty items, the warranty expenses & warranty liability will only be considered in the selling year.
Working note:-
Warranty expenses & Estimated warranty liability to be recognize = Sales × Estimated percentage of warranty work
= $12,000 × 2%
= $240
The current period’s entry to record the warranty expense is Debit Warranty Expense $240; credit Estimated Warranty Liability $240.
The Journal entry is as below:-
Warranty expenses Dr, $240 (2% of $12,000)
To Estimated warranty liability $240
(Being warranty expense is recorded)
Therefore we can conclude that The current period’s entry to record the warranty expense is Debit Warranty Expense $240; credit Estimated Warranty Liability $240.
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Andrews Corporation has income from operations of $253,000. In addition, it received interest income of $25,300 and received dividend income of $28,900 from another corporation. Finally, it paid $13,000 of interest income to its bondholders and paid $47,400 of dividends to its common stockholders. Using the 2013 corporate tax schedule, what is the firm’s federal income tax? Round your intermediated and final answers to the nearest cent. $
Answer:
$107,122
Explanation:
corporate tax rate during 2013 = 39.1%
Andrews Corporation net taxable income:
from operations $253,000from interests $25,300from dividends $28,900 - dividends received deductions $20,230 = $8,670Deductions on net taxable income*:
interest paid to bondholders = $13,000Net taxable income = $286,970 - $13,000 = $273,970
federal income tax = $273,970 x 39.1% = $107,122
*Dividends are paid with retained earnings which include after tax net income. They are not tax deductible.
On January 1, 2021, Hoosier Company purchased $940,000 of 10% bonds at face value. The bond market value was $985,000 on December 31, 2021. Required: Prepare the appropriate journal entry on December 31, 2021, to properly value the bonds assuming the bonds are classified as: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Trading securities. Securities available-for-sale. Held-to-maturity securities.
Answer:
1.
Dr Bonds 940,000
Cr Cash 940,000
Dr Fair Value adjustment 45,000
Cr Net Unrealized holding gains & losses 45,000
2.
Dr Fair Value adjustment 45,000
Cr Net Unrealized holding gains & Losses 45,000
3.
Dr Investment in bonds 985,000
Cr Discount on bond investment 45,000
Cr Cash 940,000
Explanation:
Hoosier Company Journal entries
1.
Dr Bonds 940,000
Cr Cash 940,000
Dr Fair Value adjustment 45,000
($985,000-$940,000)
Cr Net Unrealized holding gains & losses 45,000
2.
Dr Fair Value adjustment 45,000
Cr Net Unrealized holding gains & Losses 45,000
3.
Dr Investment in bonds 985,000
Cr Discount on bond investment 45,000
Cr Cash 940,000
Foreman Mining purchased land containing a copper deposit for $2,640,000 on January 7, 2021. The company expects to mine 770,000 tons of copper over the next 10 years, and the land is expected to have a residual value of $1,408,000. The company has also purchased mining equipment for $570,000 that will be used only at this site over the 10 years with an estimated residual value of $54,100. By the end of the first year, the company has mined and sold 61,000 tons of copper. What is the cost attributed to copper inventory for 2021, assuming the company uses the units-of-production method?
Answer:
$138,470
Explanation:
cost of mine = $2,640,000
residual value of the land = $1,408,000
cost of equipment = $570,000
residual value = $54,100
it should contain 770,000 tons of copper
units of production depreciation method:
depreciation of mine = ($2,640,000 - $1,408,000) / 770,000 tons of copper = $1.60 per ton of copperdepreciation of equipment = ($570,000 - $54,100) / 770,000 tons of copper = $0.67 per ton of coppertotal depreciation per ton of copper = $1.60 + $0.67 = $2.27since 61,000 tons were extracted, then the depreciation expense = 61,000 x $2.27 = $138,470
Joe Jenkins, the owner of Jenkins Manufacturing, is considering whether to produce a new product. Joe will be selling the product for a price of $70 per unit. If he uses the current equipment, Joe estimates the fixed costs per year to be $40,000 and variable costs for each unit produced to be $50. However, Joe is considering the purchase of new equipment that would produce the product more efficiently. Joe’s fixed cost would be raised to $60,000 per year, but the variable cost would be reduced to $25 per unit. If Joe's demand forecast is 900 units, should Joe produce the product using the existing or the new equipment? Produce using the existing equipment. Produce using the new equipment. Does not matter, which equipment is used. The product should not be produced at all.
Answer:
Jenkins Manufacturing
Joe should produce using the new equipment.
Explanation:
a) Costs incurred using the old equipment:
Variable costs = $45,000 ($50 x 900)
Fixed costs = $40,000
Total costs = $85,000
Operating Loss = $22,000 ($63,000 - 85,000)
b) Costs incurred using the new equipment:
Variable costs = $22,500 ($25 x 900)
Fixed costs = $60,000
Total costs = $82,500
Operating Loss = $19,500 ($63,000 - 82,500)
Production using the new equipment would reduce the operating loss by $2,500.
The company should produce by using the new equipment.
Based on thw information given, the cost that's incurred using the old equipment will be
Variable costs = ($50 x 900) = $45,000
Fixed costs = $40,000
Total costs = Fixed cost + Variable cost
= $40000 + $45,000
= $85,000
Operating Loss will be:
= ($63,000 - 85,000) = -$22000
The costs incurred using the new equipment will be:
Variable costs = ($25 x 900) = $22,500
Fixed costs = $60,000
Total costs = $60000 + $22500 = $82,500
Operating Loss = ($63,000 - 82,500) = -$19,500
Based on the calculation, the company should produce by using the new equipment.
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Anderson Steel Company began 2018 with 550,000 shares of common stock outstanding. On March 31, 2018, 140,000 new shares were sold at a price of $50 per share. The market price has risen steadily since that time to a high of $55 per share at December 31. No other changes in shares occurred during 2018, and no securities are outstanding that can become common stock. However, there are two agreements with officers of the company for future issuance of common stock. Both agreements relate to compensation arrangements reached in 2017. The first agreement grants to the company president a right to 42,000 shares of stock each year the closing market price is at least $53. The agreement begins in 2019 and expires in 2022. The second agreement grants to the controller a right to 47,000 shares of stock if she is still with the firm at the end of 2026. Net income for 2018 was $5,200,000.
Required:
Compute Anderson Steel Company's basic and diluted EPS for the year ended December 31, 2018. (Enter your answers in thousands.)
Answer:
EPS = $7.94
diluted EPS = $7.94, since there are no diluted shares in 2018
Explanation:
January 2018 = 550,000 common stocks
March 31 = 140,000 new shares issued = 105,000 weighted stocks
net income = $5,200,000
EPS = net income / weighted common stocks = $5,200,000 / (550,000 + 105,000) = $5,200,000 / 655,000 stocks = $7.939 ≈ $7.94 per stock
there are no diluted shares since the agreement with the president of the board starts in 2019, and we are calculating the EPS for 2018. The same applies to the controller, since her agreement starts in 2026.
Which of the following statements about public speaking skills is most accurate?
a. Effective speaking skills are important for all employees.
b. Individuals are born with the ability to speak effectively in public.
c. The fear of public speaking cannot be conquered.
d. Recruiters rank effective public speaking skills low on their list of most sought-after skills desired in employees.
Answer:
a
Explanation:
For the employees to be successful in their respective fields ,one of the most essential skill required to succeed is public speaking. Public speaking is about communicating your idea or thoughts in public in an effective ways. It is all about being able to make the other people understand our thoughts.
All other options are absurd as far public speaking skills are concerned.
Riegel Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2014, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below.
Item D Item E Item F Item G Item H Item I
Estimated selling price $120 $110 $95 $90 $110 $90
Cost 75 80 80 80 50 36
Cost to complete 30 30 25 35 30 30
Selling costs 10 18 10 20 10 20
Using the LCNRV rule, determine the proper unit value for statement of financial position reporting purposes at December 31, 2014, for each of the inventory items above.
Answer:
The answer is 75 that is what i put and got it correct
