Answer:
Debit Salaries Expense $1,160 and credit Salaries Payable $1,160
Explanation:
Preparation of the month-end adjusting entry to record the salaries earned but unpaid
Based on the above information given the month-end adjusting journal entry to record the salaries earned but unpaid is:
Debit Salaries Expense $1,160
Credit Salaries Payable $1,160
( 2days * 2 workers *$290 per day = $1,160)
(To record the salaries earned but unpaid)
Suppose the United States and Japan have the following production possibility tables:
Japan United States
Bolts of Cloth Tons of Wheat Bolts of Cloth Tons of Wheat
1,000 0 500 0
800 100 400 200
600 200 300 400
400 300 200 600
200 400 100 800
0 500 0 1,000
a. Draw each country’s production possibility curve.
b. In whatgooddoesthe United States have a comparative advantage?
c. Is there a possible trade that benefits both countries?
d. Draw their combinedproduction possibility curve. L04
Answer:
a) attached below
b) Wheat production
c) Yes there is a possible trade that benefits both countries
d) attached below
Explanation:
Opportunity cost can be expressed as
= Value/cost of alternative / value/cost of chosen alternative
a) Draw each country's production possibility curve
attached below
b) United state have a comparative advantage in Wheat production because of lower opportunity cost
c) The possible trade that would benefit both countries is when both countries trade on goods that they have lower comparative opportunity cost
i.e. Japan producing just Bolt cloths while United states produce Wheat alone
d) combined production possibility curve
attached below
Tax Savings. John and Cheryl just borrowed $30,000 on a home equity line of credit. The interest rate for the loan is 6.75% for the entire year, and they took out the loan on May 1. John and Cheryl are in the 28% tax bracket. What will be their tax savings for the first year ending December 31st
Answer:
$378
Explanation:
Interest expenses in current year = Amount of borrowing*Interest rate*8 month/12 months
Interest expenses in current year = $30,000 * 6.75% * 8/12
Interest expenses in current year = $1,350
Tax saving on interest expenses = Interest expenses * Tax rate
Tax saving on interest expenses = $1,350 * 28%
Tax saving on interest expenses = $378
So, their tax savings for the first year ending December 31 will be $378.
Hector is opening an appliance store. He has estimated a monthly profit goal based on his anticipated expenses and earning goals and uses it to set product prices. Hector is implementing a ________ pricing strategy.
Answer:
target return on investment (ROI)
Explanation:
THESE ARE THE OPTIONS FOR THE QUESTION BELOW
A) penetration
B) price skimming
C) target return on investment (ROI)
D) competitor-based
E) value
From the question, we are informed about the Hector who is opening an appliance store. He has estimated a monthly profit goal based on his anticipated expenses and earning goals and uses it to set product prices. Hector is implementing a target return on investment (ROI) pricing strategy.
Target return on investment pricing model can be regarded as one in which price is determined by investor/Business based on what the business owner intend to make from his/her capital that is invested in the business. An investor can calculate Target return ccalculated as the money invested in a venture along as the profit that investor intend to see as return, which is been adjusted for the time value of money. As regards to return-on-investment method, It is required by the investor work in backward direction so as to to reach a current price for target return pricing.
Green is self-employed as a human resources consultant and reports on the cash basis for income tax purposes. Select the appropriate tax treatment on Form 1040 (U.S. Individual Income Tax Return) for personal life insurance premiums paid by Green.
a. Fully deductible on Form 1040 to arrive at adjusted gross income
b. Reported in Schedule A, Itemized Deductions (deductibility subject to threshold of 7.5% of adjusted gross income)
c. Reported in Schedule A, Itemized Deductions (deductibility subject to threshold of 2% of adjusted gross income)
d. Not deductible
Answer:
Green (Self-Employed Human Resources Consultant)
The appropriate tax treatment on Form 1040 (U.S. Individual Income Tax Return) for personal life insurance premiums paid by Green is:
d. Not deductible
Explanation:
Green can claim business insurance premiums (regarded as business expenses by the IRS) and healthcare insurance premiums (regarded as medical expenses by the IRS) as deductions, but his personal life insurance premiums are considered as personal expenses. They are not tax-deductible. The IRS regards the payments for life insurance premiums as it regards the purchase of any other product or service for personal consumption.
The position in a craft union in which the holder is the chief administrator of the union hiring hall is the
Answer:
e. international union representative
Explanation:
Union representatives played a vital role with respect to supporting the employees for reporting to the union leaders when they are on the place of their peers. It acted as the main liason between the employers & employees as in this they support the employees and guidem them via the challenges that took place during the work
So at the time when the craft union position where the holder be the chief administrator of the union hiring hall so it should be the international union representative
Anthony Walker plans to invest $28,400 a year at the end of each year for the next seven years in an investment that will pay him a rate of return of 9.8 percent. How much money will Anthony have at the end of seven years
Answer:
267,785.95
Explanation:
28400 X (1.098)^7 = 267,785.95
An economist wants to study the effect of income on savings. He collected data on 120 identical twins. Which of the following methods of estimation is the most suitable method, if income is correlated with the unobserved family effect, i.e.a) random effects estimationb) nonlinear least squared estimationc) least Squares Dummy Variable (LSDV) approachd) ordinary least squares estimation
Answer:
The correct option is c) least Squares Dummy Variable (LSDV).
Explanation:
Dummy variables can be used in dynamic panel data models to explain the effect of each individual unit of a cross section that is unobserved but accurately characterizes the model of relation. The individual effect is assumed to be fixed across time in each individual in the least squares dummy variable (LSDV) estimation. If the unobserved effect and the explanatory variables are correlated, the assumption of fixed effects gives more exact estimators than the assumption of random effects.
Therefore, the most suitable method, if income is correlated with the unobserved family effect is least Squares Dummy Variable (LSDV).
This implies that the correct option is c) least Squares Dummy Variable (LSDV).
You are an investment manager and one of your clients is a famous soccer player. She is promised to be paid $5million three years from now. What is the present value of this cash flow today
Answer:
$4,153,268.86
Explanation:
The below is missing from the question:
Your discount rate for real cash flows is 5% APR, compounded monthly and you are expecting inflation of 1.2% per year (APR, annual compounding).
We need to convert the real interest rate to an effective annual rate as shown thus:
EAR=(1+APR/n)^n-1
APR=5%
number of times interest is compounded annually=12
EAR=(1+5%/12)^12-1
EAR=5.12%
Nominal Discount rate = [(1+ Real Discount rate)*(1+Inflation Rate)] - 1
Nominal Discount rate =(1+5.12%)*(1+1.2%)-1
Nominal discount rate=6.38%
Present value=future value/(1+nominal discount rate)^3
future value=$5,000,0000
nominal discount rate=6.38%
n=3 years
PV=$5,000,000/(1+6.38%)^3
PV= $4,153,268.86
EPS, P/E Ratio, and Dividend Ratios The Stockholders' Equity section of the balance sheet for Balla Enterprises at the end of 2017 appears as follows: 8%, $100 par, cumulative preferred stock, 200,000 shares authorized, 50,000 shares issued and outstanding $5,000,000 Additional paid-in capital on preferred 2,500,000 Common stock, $5 par, 500,000 shares authorized, 400,000 shares issued and outstanding 2,000,000 Additional paid-in capital on common 18,000,000 Retained earnings 37,500,000 Total stockholders' equity $65,000,000 Net income for the year was $1,350,000. Dividends were declared and paid on the preferred shares during the year, and a quarterly dividend of $0.40 per share was declared and paid each quarter on the common shares. The closing market price for the common shares on December 31, 2017, was $27.65 per share.
Required:
1. Compute the following ratios for the common stock:
When required, round earnings per share and price/earnings ratio answers to two decimal places. For dividend payout and dividend yield ratios, round raw calculations to 4 decimal places, but enter each answer as a percentage to two decimal places; for example, .17856 rounds to .1786 and would be entered as 17.86, indicating 17.86%.
a. Earnings per share $
b. Price/earnings ratio to 1
c. Dividend payout ratio %
d. Dividend yield ratio %
2. Before recommending the stock of Balla to a client, as a financial adviser, you would like to know:
future earnings growth.
risk of the stock.
general economic trends and how they affect the company.
all of these.
Answer:
Balla Enterprises
1. Ratios for the common stock:
a. Earnings per share = Net income after preferred dividend/ Outstanding common stock shares
= $2.38
b. Price/Earnings ratio
= 11.62x
c. Dividend payout ratio
= 67.23%
d. Dividend Yield = Dividend per share/Market price per share
= 5.79%
2. Before recommending the stock of Balla to a client, as a financial adviser, you would like to know:
all of these.
Explanation:
a) Data and Calculations:
Balla Enterprises
The Stockholders' Equity section of the balance sheet at the end of 2017 8%, $100 par, cumulative preferred stock:
200,000 shares authorized
50,000 shares issued and outstanding $5,000,000
Additional paid-in capital on preferred 2,500,000
Common stock, $5 par, 500,000 shares authorized,
400,000 shares issued and outstanding 2,000,000
Additional paid-in capital on common 18,000,000
Retained earnings 37,500,000
Total stockholders' equity $65,000,000
Net income for the year = $1,350,000
Dividends:
Preferred stock = $400,000 ($5,000,000 * 8%)
Earnings after preferred dividend = $950,000 ($1,350,000 -$400,000)
Common stock = $640,000 ($0.40 * 4 * 400,000)
Closing market price of common stock on Dec. 31, 2017 = $27.65
1. Ratios for the common stock:
a. Earnings per share = Net income after preferred dividend/ Outstanding common stock shares
= $2.38 ($950,000/400,000)
b. Price/Earnings ratio = Market price of common stock/Earnings per share
= 11.62x ($27.65/$2.38)
c. Dividend payout ratio = Dividend per share/Earnings per share
= $1.60/$2.38
= 0.6723
= 67.23%
d. Dividend Yield = Dividend per share/Market price per share
= $1.60/$27.65
= 0.0579
= 5.79%
2. Before recommending the stock of Balla to a client, as a financial adviser, you would like to know:
all of these.
Economics
Assume there is a new international trade agreement that allows foreign countries to sell their products in the US, what can we predict will happen?
Answer:
1 + 1 = 3 thats the correct answer of your question
Wolfe Company had the following beginning inventory and purchases during 2018 Date Transaction Number of units Unit Cost 1/1 Beginning inventory 2,000 $22.00 4/12 Purchase No. 1 2,300 $26.00 7/11 Purchase No. 2 800 $28.00 10/5 Purchase No. 3 1,250 $30.00 Wolfe sold 4,100 units Determine the amount of ending inventory and cost of goods sold using the following methods: Method Ending inventory Cost of Goods Sold LIFO FIFO Weighted average
Answer:
Wolfe Company
The amount of:
LIFO FIFO Weighted Average
Ending inventory $50,500 $65,100 $58,005
Cost of goods sold $113,200 $98,600 $105,698
Explanation:
a) Data and Calculations:
Date Transaction Number of units Unit Cost Cost Value
1/1 Beginning inventory 2,000 $22.00 $44,000
4/12 Purchase No. 1 2,300 $26.00 59,800
7/11 Purchase No. 2 800 $28.00 22,400
10/5 Purchase No. 3 1,250 $30.00 37,500
Total inventory available 6,350 $163,700
Wolfe sold 4,100
Ending Inventory 2,250
LIFO
Ending Inventory = $50,500 (250 * $26 + 2,000 * $22)
Cost of goods sold:
4/12 Purchase No. 1 2,050 $26.00 53,300
7/11 Purchase No. 2 800 $28.00 22,400
10/5 Purchase No. 3 1,250 $30.00 37,500
Total cost of goods sold = 4,100 $113,200
FIFO:
Ending Inventory = Cost of goods available for sale - Cost of goods sold
= $65,100 ($163,700 - $98,600)
Cost of goods sold:
1/1 Beginning inventory 2,000 $22.00 $44,000
4/12 Purchase No. 1 2,100 $26.00 54,600
Total cost of goods sold = $98,600
Weighted average:
Weighted average cost = $25.78 ($163,700/6,350)
Ending inventory = $58,005 (2,250 * $25.78)
Cost of goods sold = $105,698 (4,100 * $25.78)
Pinacle Corp. budgeted $242,600 of overhead cost for the current year. Actual overhead costs for the year were $204,330. Pinacle's plantwide allocation base, machine hours, was budgeted at 51,060 hours. Actual machine hours were 56,680. A total of 102,310 units was budgeted to be produced and 98,000 units were actually produced. Pinacle's plantwide factory overhead rate for the current year is: a.$4.00 per machine hour b.$4.75 per machine hour c.$2.00 per machine hour d.$2.37 per machine hour
Answer:
Predetermined manufacturing overhead rate= $4.75 per machine hour
Explanation:
Giving the following information:
Pinacle Corp. budgeted $242,600 of overhead cost for the current year.
Estimated machine hours= 51,060 hours
To calculate the predetermined overhead rate, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 242,600 / 51,060
Predetermined manufacturing overhead rate= $4.75 per machine hour
The Rent It Company declared a dividend of $.60 a share on October 20th to holders of record on Monday, November 1st. The dividend is payable on December 1st. You purchased 100 shares of this stock on Wednesday, October 27th. How much dividend income will you receive on December 1st as a result of this declaration
Answer:
the dividend income that should be received is $60
Explanation:
The computation of the dividend income is shown below:
= Dividend per share × number of shares of the stock purchased
= $0.60 × 100 shares
= $60
hence, the dividend income that should be received is $60
Basically we applied the above formula so that the correct value could come
g When a court awards custody of a child to one parent and not the other, this is an example of: Group of answer choices all of the answers are correct monetary relief monetary damages equitable relief
Answer:
equitable relief
Explanation:
A court refers to an enclosed space such as a hall or chamber where legal practitioners (judges, lawyers or attorneys and a jury) converge to hold judicial proceedings.
A lawyer refers to an individual who has obtained a law degree and is saddled with the responsibility of giving legal advice, initiate and execute lawsuits for his or her clients. These legal practitioners are saddled with the legal responsibility of listening to evidence and give a verdict about legal cases.
An equitable relief also referred to as equitable remedy can be defined as judicial remedies granted to an aggrieved person by a court of equity, requiring that the other party act or refrain from indulging in a specific act because ordinary legal remedies couldn't provide the aggrieved party sufficient (adequate) restitution for an offense commited against him or her. Thus, an equitable relief (remedy) is an injunction granted by a court of equity requiring a party to a contract to either act (mandamus or specific performance) or refrain from indulging in a particular act.
In this context, when a court of competent jurisdiction awards or grants custody of a child to one parent rather than awarding it to the other, this is an example of equitable relief.
In conclusion, an equitable relief or remedy is typically a nonmonetary judgement granted by a court of equity when ordinary legal remedies fail to provide sufficient (adequate) restitution to an aggrieved party.
In a 150 pax of guest dining in a restaurant, how will your facility be designed to accommodate that number of guests?
Answer:
To build the facility having compartments over one another.
Explanation:
The facility will be designed in a three compartment that are present on one another so then it will accommodate more number of guests. The building of compartment over one another can enable us to accommodate three times more people on the same piece of land so we can conclude that making the facility in the form of building over one another can accommodate more number of people.
During January, Dream House Builders, Inc. incurred $550 of actual indirect materials costs, as supported by materials requisitions.
Required:
Draw the journal entry.
Answer and Explanation:
The journal entry is given below:
Factory overhead Dr $550
To Raw material inventory $550
(being the actual indirect material cost is recorded)
Here the factory overhead is debited as it increased the expense while the raw material inventory is credited as it decreased the assets
Select the correct answer
What is a federal budget
A
an evaluation of the government's current revenue sures
an estimate of the government's total revenue and spending
a calentation of the amount needed to make the government debt free
a comparison of the government's foreign and domestie earnings
Resol
Next
B) an estimate of the government's total revenue and spending
Number of Output Marginal Product Office Rent Labor Cost TotalCost
Workers boxes of Labor (dollars) (dollars)
0 0 --
1 220 400 200
2 250 800
3 680
4 160 1,200
5 940 1,000
6 980 1,600
Suzette's Fancy Packaging subcontracts with Sunshineland Pecans to box dried fruit and nuts for Suzette's mail order business. Suzette rents space for her factory for $400 a week in a nearby strip mall. She can hire temporary workers for $200 a week. Table 11-5 above shows her output and cost data. Use the table to answer questions a-e.
a. Complete the table.
b. In the last week of summer Suzette closes her business to go on a family vacation. What are her costs during that week?
c. In one week Suzette exactly breaks even. If her revenue for the week is $1,200, how many boxes of fruit and nuts did she produce?
d. Judging from the marginal product of labor data, would you say that Suzette had to settle for increasingly unproductive workers? Explain your answer.
e. Suzette has received an order for 1,500 boxes of nuts per week for the next 3 months. If she expects the trend in the marginal product of labor will continue in the same direction, what do you think she should do? Should she not commit until she can move to a larger space or should she just hire more workers? Explain your answer.
Answer:
a.
Number of Output Marginal Product Office Rent Labor Cost Total Cost
Workers boxes of Labor (dollars) (dollars) (dollars)
0 0 - -
1 220 220 400 200 600
2 470 250 400 400 800
3 680 210 400 600 1,000
4 840 160 400 800 1,200
5 940 100 400 1,000 1,400
6 980 40 400 1,200 1,600
b. The costs during the week of summer vacation are: $400
c. She produced 840 boxes.
d. Yes. Suzette settled for increasingly unproductive workers as the marginal product of labor continued to decline. The cost of paying the workers remained at a flat rate of $200 per week without the corresponding output to show for the labor cost.
e. Suzette will need to hire more workers. However, their average productivity needs to be improved greatly to limit the total labor costs.
Explanation:
a) Data and Calculations:
Number of Output Marginal Product Office Rent Labor Cost Total Cost
Workers boxes of Labor (dollars) (dollars) (dollars)
0 0 - -
1 220 220 400 200 600
2 470 250 400 400 800
3 680 210 400 600 1,000
4 840 160 400 800 1,200
5 940 100 400 1,000 1,400
6 980 40 400 1,200 1,600
________ is the process of coordinating all messages, media and activities used by an organization to communicate with the market across different communication methods
Answer:
integrated Marketing communication
Explanation:
This method is used by firms and companies to brand their communications and also in their coordination. It makes sure that all the various forms of communications are well linked together. This would create a unified communication channel for the consumer during their interactions with the enterprise. the aspects it integrates includes, advertising, public relations, social media and promotion of sales.
In (Noon) Company, direct materials are added at the beginning of the production process. Conversion costs are incurred evenly throughout the production process. Before inspection, some units are spoiled due to undetectable materials defects. Inspection occurs when units are 60% converted. Spoiled units generally constitute 6% of the good units. Data for December 2019 are as follows: WIP, beginning inventory 12/1/2019 Direct materials 22,500 units (100% complete) Conversion costs (55% complete) Started during December 76,700 units Completed and transferred out 12/31/2019 72,500 units WIP, ending inventory 12/31/2019 18,400 units Direct materials (100% complete) Conversion costs (65% complete) What is the number of normal spoilage units?
Answer:
Following are the responses to the given question:
Explanation:
Statement In December the computation of typical spoiling units shall be shown:
Particulars Units
WIP Inventory Start on 12 January 2019 22,500
Departments began in December 76,700
Total stock available for both the month 99,200
Less: transferred units on 31 December 2019 72,500
Inventory of Less: WIP on 31 December 2019 18,400
Inventory of Balance (Normal Spoilage units) 8,300
gThe following data are available for Martin Solutions, Inc. Year 2 Year 1 Sales $1,139,600 $1,192,320 Beginning inventory 80,000 64,000 Cost of goods sold 500,800 606,000 Ending inventory 72,000 80,000 Required: Assume a 365-day year. Determine for each year:
Answer and Explanation:
The computation is shown below;
For Year 1
Average inventory = (Beginning inventory + Ending inventory)÷ 2
= ($64,000 + $80,000) ÷ 2
= $72,000
Inventory turnover = Cost of goods sold ÷ Average inventory
= $606,000 ÷ 72,000
= 8.4 times
Days in inventory = 365 ÷ Inventory turnover ratio
= 365 ÷ 8.4
= 43.5 days
For Year 2
Average inventory = (Beginning inventory + Ending inventory) ÷ 2
= ($80,000 + $72,000) ÷ 2
= $76,000
Inventory turnover = Cost of goods sold ÷ Average inventory
= $500,800 ÷ 76,000
= 6.6 times
Days in inventory = 365 ÷ Inventory turnover ratio
= 365 ÷ 6.6
= 55.3 days
For each of the following transactions below, prepare the journal entry (if one is required) to record the initial transaction and then prepare the adjusting entry, if any, required on September 30, the end of the fiscal year. (Credit account titles are automatically indented when the 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.)
(a) On September 1, paid rent on the track facility for three months, $213,000.
(b) On September 1, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totaled $840,000.
(c) On September 1, borrowed $300,000 from First National Bank by issuing a 6% note payable due in three months.
(d) On September 5, programs for 20 racing days in September, 25 racing days in October, and 25 racing days in November were printed for $3,500.
(e) The accountant for the concessions company reported that gross receipts for September were $160,000. Eight percent is due to the track and will be remitted by October 10.
Answer and Explanation:
the journal entries are as follows:
a Prepaid rent $213,000
To cash $213,000
(To record prepaid rent)
Adjusting entry:
Rent expense $71,000 ($213,000 ÷ 3)
Prepaid rent $71,000
(To record September rent expense)
b Cash $840,000
To unearned sales revenue $840,000
(To record cash received on season sales)
Adjusting entry:
Unearned sales revenue ($840,000 ÷ 12) $70,000
Sales revenue $70,000
(To record sales revenue recognised)
c Cash $300,000
Note payable $300,000
(To record note payable issued on borrowed amount )
Adjusting entry:
Interest expense ($300,000 × 6% ÷ 12) $1,500
Interest payable $1,500
(To record interest payable due)
d Prepaid advertising 3,500
To Cash 3,500
(To record cash paid for advertising)
Adjusting entry:
Advertising expense ($3,500 ÷ 60) × 20 $1,167
To prepaid advertising $1,167
e No entry
Adjusting entry:
Accounte receivable ($160,000 × 8%) $12,800
Sales revenue $12,800
(To record amout due)
There are several attempts to explain Marvels Success via competetive strategy but they fall flat: competitve strategy, with this specific case neither predicts nor explains the outcome why?
Answer:
It has been a well known fact that competitive strategy creates a unique value for a target set of movie customers. However, it is not able to predict nor explain the outcome due to the fact that Marvel only focused on trying to compete to be the best in comic and superhero films which thus resulted in basically a case whereby there was a competition in which one participant wins totally and another loses without gaining any objectives and thus they were not able to win.
Explanation:
This question is taken from a book titled "The Marvel Way: Restoring a Blue Ocean". It was written by W. Chan Kim, Renee Mauborgne, Michael Olenick. The central theme of the book was about one of the greatest turnarounds in modern business history by the then Marvel CEO with the name Peter Cuneo who was responsible for turning the business around and succeeded in launching a blue ocean.
From the question, neither predicts nor explains the outcome because;
It has been a well known fact that competitive strategy creates a unique value for a target set of movie customers. However, it is not able to predict nor explain the outcome due to the fact that Marvel only focused on trying to compete to be the best in comic and superhero films which thus resulted in basically a case whereby there was a competition in which one participant wins totally and another loses without gaining any objectives and thus they were not able to win.
Theo quan điểm hiện đại khi tiếp cận chi phí chất lượng, chi phí chất lượng thấp nhất là khi
Answer:
Translate in English please!!!!!!!!!!!!!
Scenario 34-1. Take the following information as given for a small, imaginary economy: When income is $10,000, consumption spending is $6,500. When income is $11,000, consumption spending is $7,250. Refer to Scenario 34-1. The marginal propensity to consume (MPC) for this economy is
Answer:
0.75
Explanation:
Marginal Propensity to Consume (MPC) is the change in consumption due to change in income
Change in consumption = $7,250 - $6,500 = $750
Change in income = $11,000 - $10,000 = $1,000
MPC = Change in consumption / Change in income
MPC = 750 / 100
MPC = 0.75
The following labor standards have been established for a particular product: Standard labor hours per unit of output 4.4 hours Standard labor rate $ 17.70 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 6,200 hours Actual total labor cost $ 110,360 Actual output 1,300 units Required: a. What is the labor rate variance for the month? b. What is the labor efficiency variance for the month?
Answer:
Results are below.
Explanation:
To calculate the direct labor rate variance, we need to use the following formula:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (17.7 - 17.8)*6,200
Direct labor rate variance= $620 unfavorable
Actual rate= 110,360/6,200= $17.8
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (1,300*4.4 - 6,200)*17.7
Direct labor time (efficiency) variance= $8,496 unfavorable
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:
1. Cash balance according to the company’s records at August 31, $24,270.2. Cash balance according to the bank statement at August 31, $32,278.3. Checks outstanding, $14,668.4. Deposit in transit, not recorded by bank, $7,170.5. A check for $58 in payment of an account was erroneously recorded in the check register as $580.6. Bank debit memo for service charges, $12.A. Prepare a bank reconciliation, using the format shown in
B. If the balance sheet were prepared for Creative Design Co. on August 31 what amount should be reported for cash?
C. Must a bank reconciliation always balance (reconcile)
A) NoB) Yes.
Amount DescriptionsAdjusted balanceBank service chargeBank error in charging check as $58 instead of $580Bank error in charging check as $580 instead of $58Deposit in transit, not recorded by bankError in recording check as $58 instead of $580Error in recording check as $580 instead of $58Outstanding checksTotal adjustments
Answer:
Creative Design Co.
A. Bank Reconciliation Statement as of August 31:
Balance as per bank statement $32,278
Deposit in transit, $7,170
Checks outstanding, ($14,668)
Balance as per adjusted cash bal. $24,780
B. The amount that should be reported for cash is $32,278.
C. B) Yes. A bank reconciliation must always balance (reconcile), otherwise, the purpose of the reconciliation is defeated.
Explanation:
a) Data and Calculations:
1. Cash balance according to the company’s records at August 31, $24,270.
2. Cash balance according to the bank statement at August 31, $32,278
3. Checks outstanding, $14,668
4. Deposit in transit, not recorded by bank, $7,170
5. A check for $58 in payment of an account was erroneously recorded in the check register as $580.
6. Bank debit memo for service charges, $12
Cash Book Adjustment:
August 31 balance $24,270
add overstatement of check 522
less bank charges 12
Adjusted balance $24,780
A cost-cutting project will decrease costs by $66,100 a year. The annual depreciation will be $15,750 and the tax rate is 35 percent. What is the operating cash flow for this project?
Answer:
$48,478
Explanation:
Calculation to determine What is the operating cash flow for this project
Operating cash flow = [$66,100 ×(1 -.35)] + [$15,750 ×.35]
Operating cash flow = [$66,100 ×.65)+5,513.
Operating cash flow = 42,965+5,513
Operating cash flow = $48,478
Therefore the operating cash flow for this project will be $48,478
Novak Financial Services performs bookkeeping and tax-reporting services to startup companies in the Oconomowoc area. On January 1, 2020, Novak entered into a 3-year service contract with Walleye Tech. Walleye promises to pay $10,900 at the beginning of each year, which at contract inception is the standalone selling price for these services. At the end of the second year, the contract is modified and the fee for the third year of services is reduced to $8,700. In addition, Walleye agrees to pay an additional $21,800 at the beginning of the third year to cover the contract for 3 additional years (i.e., 4 years remain after the modification). The extended contract services are similar to those provided in the first 2 years of the contract.
Required:
a. Prepare the journal entries for Tyler in 2019 and 2020 related to this service contract.
b. Prepare the journal entries for Tyler in 2020 related to the modified service contract, assuming a prospective approach.
c. Repeat the requirements for part (b), assuming Tyler and Walleye agree on a revised set of services (fewer bookkeeping services but more tax services) in the extended contract period and the modification results in a separate performance obligation
Answer: See explanation
Explanation:
a. 1 jan 2020
Debit Cash $10,900
Credit Unearned revenue $10,900
31st dec 2020
Debit Unearned revenue $10,900
Credit Service revenue $10,900
1 jan 2020
Debit Cash $10,900
Credit Unearned revenue $10,900
31st dec 2020
Debit Unearned revenue $10,900
Credit Service revenue $10,900
b. 1 Jan 2021
Debit Cash $30500
Credit Unearned revenue $30500
31st dec 2020
Debit Unearned revenue $7,625
Credit Service revenue $7,625 ($30500/4)
c. 1 Jan 2020
Debit Cash $30500
Credit Unearned revenue $30500
31st Dec 2020
Debit Unearned revenue $8,700
Credit Service revenue $8,700
The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to a.Paid-In Capital from Preferred Stock for $750,000 b.Preferred Stock for $500,000 and Retained Earnings for $250,000 c.Preferred Stock for $500,000 and Paid-In Capital in Excess of Par—Preferred Stock for $250,000 d.Preferred Stock for $750,000
Answer:
b) Preferred Stock for $500,000.00 and Paid-In Capital in Excess of Par-Preferred Stock for $250,000.00
Explanation:
Based on the information given The Appropriate journal entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to PREFERRED STOCK FOR $500,000.00 and PAID-IN CAPITAL IN EXCESS OF PAR-PREFERRED STOCK FOR $250,000.00
Dr Cash $750,000
(10,000 shares *$75)
Cr Preferred Stock for $500,000.00
(10,000 shares *$50)
Cr Paid-In Capital in Excess of Par-Preferred Stock for $250,000.00
($750,000-$500,000]
