Answer:
See the journal entries below.
Lease receivable = $235,757.58
Explanation:
Before the journal entries are prepared, the present value of the annual rentals or lease receivable is first calculated using the formula for calculating the present value of an ordinary annuity due since the annual rentals is payable each December 31, beginning December 31, 2019 as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) * (1 + r) …………………………………. (1)
Where;
PV = Present value annual rentals or lease receivable = ?
P = Annual rentals = $52,800
r = Interest rate = 6%, or 0.06
n = number of years the lease agreement covered = 5
Substitute the values into equation (1), we have:
PV = $52,800 * ((1 - (1 / (1 + 0.06))^5) / 0.06) * (1 + 0.06)
PV = $235,757.58
The journal entries will now look as follows:
Date Account Tittle Debit ($) Credit ($)
31-Dec-19 Lease Receivable 235,757.58
Cost of Goods Sold 156,000.00
Sales Revenue 235,757.58
Inventory 156,000.00
(To record the lease.)
31-Dec-19 Cash 52,800.00
Lease Receivable 52,800.00
(To record the receipt of lease payment.)
On January 1, 2021, Wooten Technology Associates sold computer equipment to the Denison Company. Delivery was made on January 1, 2021, but payment for the equipment of $10,100 is not due until December 31, 2021. Assuming that Wooten views the time value of money to be a significant component of this transaction and that an 12% interest rate is applicable. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) How much sales revenue would Wooten recognize on January 1, 2021
Answer: $9,017.89
Explanation:
Wooten will recognize the present value of $10,100 as it is to be paid to them in a year and the company sees time value of money as a significant component.
= 10,100 * Present value interest factor, 12%, 1 period
= 10,100 * 0.89286
= $9,017.886
= $9,017.89
Stock A's beta is 1.7 and Stock B's beta is 0.7. Which of the following statements must be true about these securities? (Assume market equilibrium.) a. The expected return on Stock B should be greater than that on A. b. Stock B must be a more desirable addition to a portfolio than A. c. Stock A must be a more desirable addition to a portfolio than B. d. When held in isolation, Stock A has more risk than Stock B. e. The expected return on Stock A should be greater than that on B.
Answer:
D
Explanation:
Systemic risk is measured by beta. In the CAPM equation, beta is a positive function of required return, so the higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors.
required return = risk free return + beta x ( market risk premium)
The appropriateness of adding a stock to a portfolio cannot be determined by looking at the stock alone. the stock has to be looked at in context with the total portfolio
The following partial information is taken from the comparative balance sheet of Levi Corporation: Shareholders’ equity 12/31/2021 12/31/2020 Common stock, $5 par; 27 million shares authorized; 22 million shares issued and 19 million shares outstanding at 12/31/2021; and ____million shares issued and ____shares outstanding at 12/31/2020. $ 110 million $ 95 million Additional paid-in capital on common stock 527 million 394 million Retained earnings 204 million 164 million Treasury common stock, at cost, 3 million shares at 12/31/2021 and 1 million shares at 12/31/2020 (79 million) (57 million) Total shareholders’ equity $ 762 million $ 596 million What was the average price (rounded to the nearest dollar) of the additional shares issued by Levi in 2021?
Answer:
$29.6 million per share
Explanation:
Additional share issued = (Issued and shares outstanding 2021 + Additional paid-in capital on common stock 2021) - (Issued and shares outstanding 2020 + Additional paid-in capital on common stock 2020)
Additional share issued = (110 million + 527 million) - (95 million + 394 million)
Additional share issued = 637 million - 489 million
Additional share issued = $148 million
Average price paid = Additional share issued / $5
Average price paid = $29.6 million per share
Calculate Cost of Goods Manufactured for 2019 using the following information. Direct Materials, Jan. 1, 2019 $ 40,000 Work-in-Process, Dec. 31, 2019 69,000 Direct Labor 48,500 Finished Goods, Dec. 31, 2019 105,000 Finished Goods, Jan. 1, 2019 128,000 Manufacturing Overhead 72,500 Direct Materials, Dec. 31, 2019 43,000 Work-in Process, Jan. 1, 2019 87,000 Purchases of Direct Material 75,000
Answer:
$234,000
Explanation:
Calculation to determine the Cost of Goods Manufactured for 2019
First step is to calculate the direct materials used in production
Direct materials used in production=$40,000+$75,000-$43,000
Direct materials used in production=$72,000
Second step is to calculate the COGM
COGM=$87,000+$72,000+$48,500+$72,500-$69,000
COGM=$211,000
Now let calculate the COGS
COGS=$128,000+$211,000-$105,000
COGS=$234,000
Therefore the Cost of Goods Manufactured for 2019 is $234,000
Answer:
sry need to answer (points) :(
Explanation:
Hampton Company reports the following information for its recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data Sales $ 71,000 Accounts receivable increase $ 8,000 Expenses Inventory decrease 4,000 Cost of goods sold 42,000 Salaries payable increase 1,000 Salaries expense 10,000 Depreciation expense 5,000 Net income $ 14,000
Required: Prepare the operating activities section of the statement of cash flows for Hampton Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
See below
Explanation:
Statement of cash flow from operating activities using the indirect method.
Net income
$14,000
Adjustment for non cash items:
Depreciation expense
$5,000
Adjustments for changes in working capital:
Increase in accounts receivables
($8,000)
Decrease in inventory
$4,000
Increase in salaries payable
$1,000
Net cash from operating activities
$16,000
Which of the following is an example of frictional unemployment? A former mayor doing volunteer work A former mayor doing volunteer work A factory worker who loses her job because of recession A factory worker who loses her job because of recession A college student working part-time at the campus bookstore A college student working part-time at the campus bookstore A college graduate interviewing for two available positions A college graduate interviewing for two available positions An architect whose job is replaced by computer software that designs buildings
Answer:
A college graduate interviewing for two available positions
Explanation:
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.
An architect whose job is replaced by computer software that designs buildings is an example of structural unemployment. Structural unemployment i 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.
A factory worker who loses her job because of recession is an example of cyclical recession. Cyclical unemployment occurs as a result of fluctuations in the economy.
Suppose two workers could be hired, F and G, and they take the same time to complete tasks as the current five workers. F and G can be assigned to work on the same pair of tasks as one of the current workers. For example, F could be assigned tasks T1 and T2 (just like worker A) while G is assigned T5 and T6 (just like worker C). They cannot be assigned tasks that are currently assigned to two workers. For example, F cannot be assigned to tasks T2 and T3 (because they are currently being done by workers A and B). What is the capacity of this process with workers F and G included ( toothbrushes per minute)?
Answer:
Explanation:
The missing table is attached below.
Recall that:
The capacity of the interaction is controlled by the capacity of the bottleneck workers.
The extra resources accessible ought to be added to workers with the most noteworthy preparing times.
For this situation, they are Worker A and Worker E.
Summing up of resources halves the handling times for Worker A and E.
SO;
Worker Old time(sec) New time (sec) Capacity
A 65 32.5 1.85
B 35 35 1.71
C 25 25 2.40
D 30 30 2.00
E 60 30 2.00
Along these lines, the new capacity of the framework is characterized by new bottleneck B.
So the capacity of the cycle is 60/35 = 1.71 toothbrush per each minute
Precision Company estimates its machine-hour requirements for the four quarters to be 35,000 hours, 20,000 hours, 15,000 hours, and 30,000 hours respectively. The variable manufacturing overhead rate is $4 per machine-hour. The fixed manufacturing overhead is $50,000 per quarter, which includes $20,000 of depreciation expense. Knowledge Check 01 What is the budgeted variable manufacturing overhead for the year
Answer:
Total estimated overhead costs for the period= $400,000
Explanation:
Giving the following information:
Total machine-hours= 35,000 + 20,000 + 15,000 + 30,000
Total machine-hours= 100,000
Predetermined variable overhead rate= $4 per machine hour
To calculate the estimated variable overhead for the period, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
4 = total estimated overhead costs for the period / 100,000
total estimated overhead costs for the period= 100,000*4
total estimated overhead costs for the period= $400,000
A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product A under activity-based costing
Answer: $3 per unit
Explanation:
Here's the complete question:
company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Activity Cost Pool Budgeted Activity
Budgeted Cost. Product A Product B
Activity 1 $ 87,000. 3,000. 2,800
Activity 2 $ 62,000 4,500 5,500
Activity 3 $ 93,000 2,500 5,250
Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product A under activity-based costing?
Activity 1 (87000/5800 × 3000) = 45000
Activity 2 (62000/10000 × 4500) = 27900
Activity 3 (93000/7750 × 2500) = 30000
Total overhead cost = 102900
Since Unit = 34300, the overhead cost per unit will then be:
= $102900 / 34300
= $3 per unit
Concord Corporation has issued 110,000 shares of $4 par value common stock. It had authorized 492,000 shares. The paid-in capital in excess of par value on the common stock is $259,000. The corporation has reacquired 6,400 shares at a cost of $52,000 and is currently holding those shares. It also had accumulated other comprehensive income of $68,000. The corporation also has 1,600 shares issued and outstanding of 10%, $103 par value preferred stock. It authorized 9,200 shares. The paid-in capital In excess of par value on the preferred stock is $29,900. Retained earnings is $369,000.
Prepare the stockholders' equity section of the balance sheet.
Answer and Explanation:
The preparation of the stockholder equity section of the balance sheet is presented below:
Preferred stock (1,600 shares × $103) $164,800
Common stock (110,000 shares × $4) $440,000
Paid in capital in excess of par- preferred stock $29,900
Paid in capital in excess of par- common stock $259,000
Retained earnings $369,000
Accumulated other comprehensive income $68,000
Less: treasury stock -$52,000
Stockholder equity $1,278,700
Define scale of preference and difine economics
Answer:
scale of preference is the only tool in economics that can determine the real demand for certain goods.
Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $100 Units in beginning inventory 0 Units produced 8,800 Units sold 8,400 Units in ending inventory 400 Variable costs per unit: Direct materials $ 15 Direct labor $ 57 Variable manufacturing overhead $ 3 Variable selling and administrative expense $ 7 Fixed costs: Fixed manufacturing overhead $132,000 Fixed selling and administrative expense $ 8,500 What is the net operating income (loss) for the month under variable costing
Answer:
$10,700
Explanation:
The unit product cost = $15 + $57 + $3 = $75
Sale revenue = $100 × 8,400 = $840,000
Less :Variable cost
Variable cost of goods sold = 8,400 × $75 = $630,000
Variable selling and administrative = 8,400 × $7 = $58,800
Contribution margin = $151,200
Fixed manufacturing overhead = $132,000
Fixed selling and administrative expenses = $8,500
Net operating income = $10,700
A lottery has a grand prize of $320,000, four runner-up prizes of $32,000 each, twelve third-place prizes of $8000 each, and twenty-five consolation prizes of $800 each. If 1,600,000 tickets are sold for $1 each and the probability of any one ticket winning is the same as that of any other ticket winning, find the expected return on a $1 ticket. (Round your answer to two decimal places.)
Answer: -$0.65
Explanation:
Probability of winning the $320,000 = 1 / 1,600,000
Probability of winning the $32,000 = 4 / 1,600,000
Probability of winning the $8,000 = 12 / 1,600,000
Probability of winning the $800 = 25 / 1,600,000
Probability of losing your $1 = (1,600,000 - 25 - 12 - 4 - 1) / 1,600,000 = 1,599,958 / 1,600,000
Expected return = (1 * 320,000/1,600,000) + (4 * 32,000/1,600,000) + (12 * 8,000/1,600,000) + (25 * 800/ 1,600,000) - (1,599,958 * 1 / 1,600,000)
= -0.64747375
= -$0.65
On April 1, Griffith Publishing Company received $2,628 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The subscriptions started immediately. What is the amount of revenue that should be recorded by Griffith Publishing Company for the first year of the subscription assuming the company uses a calendar-year reporting period
Answer:
Year 1 $657
Year 2 $876
Year 3 $876
Year 4 $219
Explanation:
Calculation to determine the amount of revenue that should be recorded by Griffith Publishing Company for the first year of the subscription assuming the company uses a calendar reporting period
First step is to calculate the amount of revenue per month
Revenue per month=$657. ($2,628/36)=
Revenue per month= $73 per month
Now let calculate amount of revenue that should be recorded by Griffith Publishing Company for the first year of the subscription
Year 1= $73 * 9
Year 1 = $657
Year 2 =$73 * 12
Year 2= $876
Year 3= $73 * 12
Year 3= $876
Year 4= $73 * 3
Year 4 = $219
Therefore amount of revenue that should be recorded by Griffith Publishing Company for the first year of the subscription are:
Year 1 $657
Year 2 $876
Year 3 $876
Year 4 $219
Chamberlain Co. wants to issue new 17-year bonds for some much-needed expansion projects. The company currently has 12.2 percent coupon bonds on the market that sell for $1,434.96, make semiannual payments, and mature in 17 years. What coupon rate should the company set on its new bonds if it wants them to sell at par
Answer:
The company should set the coupon rate on its new bonds at current yield to maturity of 4.81% if it wants them to sell at par.
Explanation:
There is a need to first calculate the yield to maturity (YTM) using the following RATE function in Excel:
YTM = RATE(nper,pmt,-pv,fv) * Number of semiannuals in a year = RATE(nper,pmt,-pv,fv)*2 .............(1)
Where;
YTM = yield to maturity = ?
nper = number of periods = number of years to maturity * number of semiannuals in a year = 17 * 2 = 14
pmt = semiannual coupon payment = face value * (annual coupon rate / number of semiannuals in a year) = 1000 * (12.2% / 2) = 61
pv = present value = current bond price = 1434.96
fv = face value of the bond = 1000
Substituting the values into equation (1), we have:
YTM = RATE(14,61,-1434.96,1000)*2
Inputting =RATE(14,61,-1434.96,1000)*2 into excel (Note: as done in the attached excel file), the YTM is obtained as 4.81%.
Therefore, the company should set the coupon rate on its new bonds at current yield to maturity of 4.81% if it wants them to sell at par.
A pump has failed in a facility that will be completely replaced in 3 years. A brass pump costing $6000 installed will last 3 years. However, a used stainless steel pump that should last 3 more years has been sitting in the maintenance shop for a year. The pump cost $13,000 new. The accountants say the pump is worth $7000 now. The maintenance supervisor says that it will cost an extra $500 to reconfigure the pump for the new use and that he could sell it used (as is) for $4000.
(a) What is the book cost of the stainless steel pump?
(b) What is the opportunity cost of the stainless steel pump?
(c) How much cheaper or more expensive would it be to use the stainless steel pump rather than a new brass pump?
a. $1500 cheaper
b. $1500 more expensive
c. $7500 cheaper
d. $7500 more expensive
Answer:
A. $7,000
B. $4,000
Explanation:
(a) Based on the information given the book cost of the stainless steel pump will be $7,000 reason been that we were told that the pump is worth the amount of $7,000 now.
(B) Based on the information given the opportunity cost of the stainless steel pump will be $4,000 reason been that we were told that the pump future Salvage worth in which the pump could likely be sold is $4,000
(c) Calculation for How much cheaper or more expensive would it be to use the stainless steel pump rather than a new brass pump
Based on the information given to make use of a new brass pump will cost the amount of $6,000 and in a situation where the stainless steel pump is been use the total value will be the pump present value of the amount of $7,000 in addition with the value to reconfigure the pump of the amount of $500 which indicate that the stainless steel pump is more expensive Calculated as:
More expensive=($7,000+$500)-$6,000
More expensive=$7,500-$6,000
More expensive=$1,500
Therefore the stainless steel pump is MORE EXPENSIVE with the amount of $ 1500 more expensive than the new brass pump.
To ensure a full line of outdoor clothing and accessories, the marketing department at Teddy Bower insists that they also sell waterproof hunting boots. Unfortunately, Teddy Bower has no expertise in manufacturing those kinds of boots. Therefore, Teddy Bower contacted several Taiwanese suppliers to request quotes and $38 per pair of boots was the best quote. Due to competition, Teddy Bower knows that it cannot sell these boots for more than $54. However, all remaining boots can be sold off at a 50% discount at the end of the season. What is the underage cost Cu
Answer:
Undergo cost is $14
Explanation:
Undergo cost of Teddy Bower is $16 ( $54 - $38)
Undergo cost the total cost for a company which is not to be recovered from the sales. The undergo cost for Teddy Bower is $14 since the company has asked for quote from different suppliers and they quoted the maximum of $38 per pair of boots. The company has best and maximum quote of $54 above which the company predicts it can not sell the pair of boots.
Consider an economy with two types of firms, S and I. S firms always move together, but I firms move independently of each other. For both types of firms there is a 70% probability that the firm will have a 20% return and a 30% probability that the firm will have a -30% return. The standard deviation for the return on an portfolio of 20 type S firms is closest to ________.
Answer: 23%
Explanation:
First calculate the expected return:
= (70% * 20%) + (30% * (-30%))
= 5%
Then use that to calculate variance:
Variance:
= (70% * (20% - 5%)²) + (30% * (-30% - 5%)²)
= 5.25%
Standard Deviation:
= √5.25%
= 23%
Edward and Tony are fraternity brothers. Edward has a dinner party to celebrate getting a new job. Tony helps Edward out with the dinner party, coming 3 hours before, helping with cooking, buying the ingredients for the dinner, and party set up, and staying after, to help with clean up after. The next day, Edward promises Tony that Edward will pay Tony $100 because of all the help Tony provided the day before at the dinner party. Is Edward's promise enforceable? Why or why not?
Answer:
Edward's promise is not enforceable. Tony had already performed the act. He did not perform based on Edward's promise. He performed because of their fraternal brotherhood.
Explanation:
This situation looks like a unilateral contract whereby Edward makes a promise to Tony to pay him $100. However, we observe that Tony did not perform his actions in consideration of this reward. He performed because they were fraternity brothers. Therefore, Tony cannot enforce Edward's promise in any court. It is only left for Edward to fulfill his promise as a gentleman, not because he is legally obliged to.
Classify the following as fixed or variable costs:
1. Advertising expenditure
2. Fuel
3. Interest on company-issued bonds
4. Shipping charges
5. Payments for raw materials
6. Real estate taxes
7. Executive salaries
8. Insurance premiums
9. Wage payments
10. Depreciation and obsolescence charges
11. Sales taxes
12. Rental payments on leased office machinery
a. variable cost
b. fixed cost
Answer and Explanation:
The classification is as follows:
1. Advertising expenditure - Variable cost
2. Fuel - Variable cost
3. Interest on company-issued bonds - fixed cost
4. Shipping charges - variable cost
5. Payments for raw materials - variable cost
6. Real estate taxes - fixed cost
7. Executive salaries - fixed cost
8. Insurance premiums - fixed cost
9. Wage payments - variable cost
10. Depreciation and obsolescence charges - fixed cost
11. Sales taxes - variable cost
12. Rental payments on leased office machinery - fixed cost
In accounting, fixed costs are outlays that don't change over time, regardless of the volume of outputs. Costs that fluctuate in direct proportion to changes in the volume or level of company activity are referred to as variable costs. Fixed costs must be paid even if there is no output.
Both variable and fixed expenses are incurred by businesses during the production process.
The amount of product generated determines the fluctuation in variable costs.Raw materials, labor, and commissions are examples of variable expenses.Regardless of the level of production, fixed expenses stay constant.The fixed or variable costs are classified as follows:
1. Advertising expenditure - Variable cost
2. Fuel - Variable cost
3. Interest on company-issued bonds - fixed cost
4. Shipping charges - variable cost
5. Payments for raw materials - variable cost
6. Real estate taxes - fixed cost
7. Executive salaries - fixed cost
8. Insurance premiums - fixed cost
9. Wage payments - variable cost
10. Depreciation and obsolescence charges - fixed cost
11. Sales taxes - variable cost
12. Rental payments on leased office machinery - fixed cost
Therefore, Both variable and fixed expenses are incurred by businesses during the production process.
Learn more about fixed or variable costs here,
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Explain the positive and negative aspects of entrepreneurship. Draw evidence to support your claim from two other sources.
Answer:
Advantage #1: A flexible schedule – both in terms of when and where you work. ...
Advantage #3: It's exciting and fulfilling. ...
Advantage #4: The salary makes sense. ...
Disadvantage #1: You wear a lot of hats. ...
Disadvantage #2: You are always at work.
Explanation:
The positive (advantages) and negative aspects (disadvantages) of entrepreneurship are enumerated below:
Control: Entrepreneurship offers the entrepreneur a sense of being in charge and being the captain of the ship. With freedom of control comes increased risk of business failure.Responsibility: The entrepreneur is responsible for her income for life sustenance. There is no more reliance on a period paycheck. The entrepreneur can decide to delight her customers or to scare them away.Flexibility: The entrepreneur enjoys flexibility in work schedule. She works at her own pace. The downside is that your customers dictate when you work. The workload may increase more than your capacity to handle. Thus, flexibility does not happen always until you have established the business properly.Profit-making: As the business makes profits, the entrepreneur is entitled to receive all. When it makes losses, the entrepreneur similarly bears all.Thus, there are numerous benefits in being an entrepreneur. But there are also negative aspects of entrepreneurship.
Read more about entrepreneurship at https://brainly.com/question/21012374 and https://brainly.com/question/24497797
Vic, who was experiencing financial difficulties, was able to adjust his debts as follows:
a. Vic is an attorney. Vic owed his uncle $25,000. The uncle told Vic that if he serves as the executor of the uncle's estate, Vic's debt will be canceled in the uncle's will.
The $25,000 debt cancellation is Vic's gross income when the uncle dies.
b. Vic borrowed $80,000 from First Bank. The debt was secured by land that Vic purchased for $100,000. Vic was unable to pay, and the bank foreclosed when the liability was $80,000, which was also the fair market value of the property.
Vic has a $ gain as a result of the foreclosure.
c. The Land Company, which had sold land to Vic for $80,000, reduced the mortgage on the land by $12,000.
The $12,000 reduction in the debt is Vic's gross income because the debt reduction was made by the seller of the property.
Answer:
Explanation:
From what I can tell, you've already answered the question underneath it
What is market price?
A. The Quantity of a good or service the consumers are willing to buy.
B. The price consumers are willing to pay
C. The point where supply and demand intersect.
D. The quantity of a good or service at businesses are willing and able to provide
ohnson Inc. is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 95,000 and estimated factory overhead is $617,500. The following information is for September of the current year. Job A was completed during September, and Job B was started but not finished. September 1, inventories Materials inventory $ 8,600 Work-in-process inventory (All Job A) 33,400 Finished goods inventory 72,500 Material purchases 120,500 Direct materials requisitioned Job A 76,000 Job B 39,000 Direct labor hours Job A 5,300 Job B 3,100 Labor costs incurred Direct labor ($8.50/hour) 71,400 Indirect labor 14,600 Supervisory salaries 7,100 Rental costs Factory 8,100 Administrative offices 2,900 Total equipment depreciation costs Factory 9,150 Administrative offices 3,250 Indirect materials used 13,100 Required: 1. What is the total cost of Job A
Answer:
$188,900
Explanation:
The computation of the total cost of JOb A is shown below:
= Work in process + material requistioned + direct labor + applied overhead
= $33,400 + $76,000 + 5,300 × $8.50 + 5,300 × $617,500 ÷ 95,000
= $33,400 + $76,000 + $45,050 + $34,450
= $188,900
The following transactions were completed by the company. The company completed consulting work for a client and immediately collected $6,700 cash earned. The company completed commission work for a client and sent a bill for $5,200 to be received within 30 days. The company paid an assistant $2,000 cash as wages for the period. The company collected $2,600 cash as a partial payment for the amount owed by the client in transaction b. The company paid $940 cash for this period's cleaning services. Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)
Answer:
The impact of each transaction on individual items of the accounting equation is as follows:
1. Cash $6,700 Consulting Revenue $6,700:
Assets (Cash +$6,700) = Liabilities + Equity (Retained Earnings $6,700)
2. Accounts Receivable $5,200 Commission Revenue $5,200:
Assets (Accounts Receivable +$5,200) = Liabilities + Equity (Retained Earnings $5,200)
3. Wages Expense $2,000 Cash $2,000:
Assets (Cash -$2,000) = Liabilities + Equity (Retained Earnings -$2,000)
4. Cash $2,600 Accounts Receivable $2,600:
Assets (Cash +$2,600 Accounts Receivable -$2,600) = Liabilities + Equity
5. Cleaning Expense $940 Cash $940:
Assets (Cash -$940) = Liabilities + Equity (Retained Earnings -$940)
Explanation:
a) Data and Calculations:
Accounts affected by each transaction:
1. Cash $6,700 Consulting Revenue $6,700
2. Accounts Receivable $5,200 Commission Revenue $5,200
3. Wages Expense $2,000 Cash $2,000
4. Cash $2,600 Accounts Receivable $2,600
5. Cleaning Expense $940 Cash $940
b) The accounting equation is Assets = Liabilities + Equity. It is the basis of accounting, debit and credit sides of accounts or the double-entry system of accounting. It is always in balance with each business transaction when they are properly recorded in the journals and correctly posted to the general ledger.
Assuming beginning work in process is zero, the equivalent units of production computed using fifo versus weighted average will have the following relationship:
1. FIFO equivalent units will be greater than weighted-average equivalent units.
2. FIFO equivalent units will be less than weighted-average equivalent units.
3. Weighted-average equivalent units are always greater than fifo equivalent units.
4. Weighted-average equivalent units will be equal to fifo equivalent units.
Answer:
4. Weighted-average equivalent units will be equal to FIFO equivalent units.
Explanation:
Equivalent units of production is been applied to the work-in-process inventory when an accounting period comes to an end. It can be regarded as expression that gives amount of work done which was recorded by a manufacturer over a units of output which was partially completed after an accounting period. For instance, if there are 100 units that are in process, then 40% of processing cost is expended , then we can say there are 40 equivalent units of production. It should be noted that the if beginning work in process is zero, the equivalent units of production computed using fifo versus weighted average will have a relationship in such a way that Weighted-average equivalent units will be equal to FIFO equivalent units.
.
Choose the correct category for the items from Sun Company's perspective.
1) Real Assets
2) Financial Assets
a. Land purchased by Sun Company from a local finance company
b. Sun Company's administration building, which houses the finance department
c. Sun Company's inventories of raw materials
d. Accounts receivable: money owed to Sun Company by other companies who have purchased products on credits
e. Sun Company's corporate checking accounts
Answer:
a. Land purchased by Sun Company from a local finance company
1) REAL ASSETS, the land exists as a physical asset regardless of the company's transaction.
b. Sun Company's administration building, which houses the finance department
1) REAL ASSETS, the building exists as a physical asset regardless of the company's transaction.
c. Sun Company's inventories of raw materials
1) REAL ASSETS, the inventories exists as a physical asset regardless of the company's transaction.
d. Accounts receivable: money owed to Sun Company by other companies who have purchased products on credits
2) FINANCIAL ASSETS, accounts receivable is a financial concept, not a physical asset
e. Sun Company's corporate checking accounts
2) FINANCIAL ASSETS, checks is a financial concept that represent money, not a physical asset
roles performed by
managers
Answer:
honesty, truth, trustworthy, kind, believe, self-respect
Explanation:
Al of these are the quality of a manager
Answer:
Managing the business and making sure that everything works smoothly and efficiently.
Exercise 6-11A Record transactions using a perpetual system (LO6-5) DS Unlimited has the following transactions during August. August 6 Purchases 60 handheld game devices on account from GameGirl, Inc., for $150 each, terms 3/10, n/60. August 7 Pays $350 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GamerGirl four game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 40 game devices purchased on August 6 for $170 each to customers on account. The total cost of the 40 game devices sold is $6,070.00.
Answer and Explanation:
The journal entries are shown below:
On Aug 6
Inventory (60 × $150) $9,000
To Accounts Payable $9,000
(being inventory purchased on account is recorded)
On Aug 7
Inventory Dr $350
To Cash $350
(Being freight charges paid in cash)
On Aug 10
Accounts Payable $600 (4 × $150)
To Inventory $600
(Being returned inventory is recorded)
On Aug 14
Accounts Payable ($9,000 - $600) $8,400
To Inventory ($8,400 × 3%) $252
To Cash $8,148
(Being cash paid is recorded)
On Aug 23
Accounts Receivable ($170 × 40) $6,800
To Sales revenue $6,800
(Being sales is recorded)
Cost of goods sold $6,070
To Inventory $6,070
(Being cost is recorded)
There are only two consumers in a market, Harry and Hermione. Harry is willing to buy 12 magic wands when the price is $20 per wand and 8 magic wands when the price is $30 per wand. Hermione is willing to buy 15 magic wands when the price is $20 per wand and 10 magic wands when the price is $30 per wand. Given that these are the only two individuals in the market, what is the market demand for wands when the price of wands is $30
Answer:
The answer is 14
Explanation:
Market demand is the certain product need that is required by the consumers at a specific price. The market demand, when the price of the wand is $30, is 18.
What is market demand?Market demand is a specific number of services or products that customers or the consumer purchase at a fixed specific value in the market.
As in the above case in the market, only two consumers are present and the formula for the market demand is given by adding the demands all together sold at the specific price.
At the price, $30, Harry is willing to buy 8 magic wands and Hermione is willing to buy 10 magic wands. Form this the two demands can be added as there are only two consumers, resulting in the market demand being 18.
Therefore, the market demand at $30 is 18.
Learn more about market demand here:
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