Answer: $60,650
Explanation:
Operating cashflows by indirect method:
Net Income $3,500
Add:
Depreciation $46,000
Decrease in Accounts Receivable $12,000
Increase in Accounts Payable $ 9,700 $67,700
Less:
Increase in inventory ($9,900)
Decrease in Tax payable ($650) ($10,550)
Total $60,650
Decrease in accounts receivable = 42,000 - 30,000 = $12,000
Increase in Acc. Payable = 40,400 - 30,700 = $9,700
Increase in inventory = 65,000 - 55,100 = $9,900
Decrease in Tax payable = 3,200 - 2,550 = $650
When the accounts of Sunland Inc. are examined, the adjusting data listed below are available on December 31, the end of the annual period.
1. Interest has accrued on a $28,800, 6% note payable, issued on May 1.
2. On September 1, Rent Revenue was credited for $7,800, representing revenue from a subrental for a 6-month period beginning on that date.
3. Purchase of supplies for $2,110 during the year was recorded in the Supplies Expense account. On December 31, supplies of $540 are on hand.
Prepare the adjusting entry for each item. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 2. 3.
Prepare the reversing entry for each item where appropriate. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit
Answer:
Sunland Inc.
Adjusting Journal Entries:
Account Titles and Explanation Debit Credit
Interest Expense $1,152
Interest Payable $1,152
To record accrued interest for 8 months.
Rent Revenue $2,600
Deferred Revenue $2,600
To record deferred rent revenue for 2 months.
Supplies Expense $1,570
Supplies $1,570
To record supplies expense for the period.
Explanation:
a) Data and Calculations:
1. Interest Expense $1,152 Interest Payable $1,152 ( $28,800 * 6% * 8/12)
2. Rent Revenue $2,600 Deferred Revenue $2,600 ($7,800 * 2/6)
3. Supplies Expense $1,570 Supplies $1,570 ($2,110 - $540)
b) The above adjusting journal entries are made in order to reverse the earlier entries made. The purpose is to bring the accounts in line with the accrual concept and the matching principle of generally accepted accounting principles. These require that expenses and revenues for the period are matched and recognized whether or not cash is exchanged.
Hoffman Corporation issued $65 million of 5%, 20-year bonds at 104. Each of the 65,000 bonds was issued with 15 detachable stock warrants, each of which entitled the bondholder to purchase, for $26, one share of $1 par common stock. At the time of sale, the market value of the common stock was $31 per share and the market value of each warrant was $4. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Dr Cash $ 67.6 million
Dr Discount on bonds payable
$ 1.3 million
Cr Bonds payable 65million
Cr Equity-stock warrants outstanding $3.9million
Explanation:
Preparation of the journal entry to record the issuance of the bonds
Dr Cash $ 67.6 million
(65,000,000 * 104/100 = $ 67.6 million)
Dr Discount on bonds payable
$ 1.3 million
($65million+$3.9 million-$67.6million)
Cr Bonds payable 65 million
Cr Equity-stock warrants outstanding $3.9million
($4× 15 warrants × 65,000 bonds = $3.9million)
(Being To record issuance of bonds)
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semi-annual interest payment. The bond rate is 6.6% per year payable semi-annually. You plan to hold the bond for 4 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 3% per year compounded semi-annually, what will be your minimum selling price for the bond?
Answer:
Minimum selling price for the bond = $11350.38
Explanation:
Given - You have just purchased a municipal bond with a $10,000 par
value for $9,500. You purchased it immediately after the previous
owner received a semi-annual interest payment. The bond rate is
6.6% per year payable semi-annually. You plan to hold the bond for
4 years, selling the bond immediately after you receive the interest
payment. If your desired nominal yield is 3% per year compounded
semi-annually.
To find - What will be your minimum selling price for the bond?
Proof -
Formula for Bond value is -
Bond value = [tex]\frac{Coupon Amount}{( 1+ Interest rate)^{1} } + \frac{Coupon Amount}{( 1+ Interest rate)^{2} } + \frac{Coupon Amount}{( 1+ Interest rate)^{3} } + .....\frac{Coupon Amount}{( 1+ Interest rate)^{n} }[/tex]
As given,
Coupon Rate = 6.6%
⇒Coupon Rate for semi-annual = 3.3%
and hereby time period becomes double i.e 8 years.
Now,
Interest rate = 3%
For semi-annual , interest = 1.5%
Now,
Coupon amount = 10,000×3.3% = 330
Now,
Bond value = 330 ×PVIF(1.5% , 8) + 10,000×IVAF(1.5%, 8)
= 330×7.486 + 10,000×0.888
= 11350.38
∴ we get
Minimum selling price for the bond = $11350.38
Which one of the following is the reason that bonds may sell at a discount or premium?
A. The market yield rate fluctuated between the time the bond agreement was written and the date the bonds were actually issued to investors
B. Market conditions caused the coupon rate of interest to change between the time the bond agreement was written and the date the bonds were actually issued to investors
C. The bond issuer failed to consider the market yield rate when the bond agreement was created
D. The bond issuer adjusted the coupon rate to match that of other bond issues
Answer:
A. The market yield rate fluctuated between the time the bond agreement was written and the date the bonds were actually issued to investors
Explanation:
Interest rate changes and changes in the market price of outstanding bonds have an inverse relationship. If the market rate of interest is more than coupon rate than the bonds are sold at discount to match the market interest rate and if the coupon rate is more than market rate than bonds are sold at premium for match the market rate of interest.
Coupon rates one decided than there is no change in the life time of the bonds but market rate are always changing and because of this the bonds are sell at discount or premium.
akashi plans to save $30,000 per year until he retires. His first savings contribution to his retirement account is expected in 1 year from today. Takashi plans to retire in 6 years from today, immediately after making his last $30,000 contribution to his retirement account. He then plans to be retired for 6 years. Takashi expects to earn 8.0 percent per year in his retirement account, both before and during his retirement. If Takashi receives equal annual payments from his retirement account during his retirement with the first of these annual retirement payments received in 1 year after he retires and the last of these annual retirement payments received in 6 years after he retires, then how much can Takashi expect each of his annual retirement payments to be
Answer:
$47,605.83
Explanation:
future value of Takashi's savings = $30,000 x 7.3359 (FVIFA, 8%, 6 periods) = $220,077
the value of each distribution payment = $220,077 / 4.6229 (PVIFA, 8%, 6 periods) = $47,605.83
These are ordinary annuities, therefore, so we can find their annuity factors using a table.
Waupaca Company establishes a $410 petty cash fund on September 9. On September 30, the fund shows $120 in cash along with receipts for the following expenditures: transportation costs of merchandise purchased, $59; postage expenses, $74; and miscellaneous expenses, $144. The petty cashier could not account for a $13 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory.
Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $440.
1-Prepare the journal entry to establish the Petty Cash fund.
2-Record the reimbursement of the petty cash fund.
3-Record the increase of the petty cash fund.
Date General Journal Debit Credit
Oct 01
Answer:
1. Sep 09
Dr Petty cash $410
Cr Cash $410
2. Sep 30
Dr Merchandise inventory $59
Dr Postage expense $74
Dr Miscellaneous expenses $144
Dr Cash short and over $13
Cr Cash $290
3. Oct 01
Dr Petty cash $30
Cr Cash $30
Explanation:
1-Preparation of the journal entry to establish the Petty Cash fund
Sep 09
Dr Petty cash $410
Cr Cash $410
2- Preparation of the journal entry to Record the reimbursement of the petty cash fund.
Sep 30
Dr Merchandise inventory $59
Dr Postage expense $74
Dr Miscellaneous expenses $144
Dr Cash short and over $13
Cr Cash $290
($59+$74+144+$13)
3- Preparation of the journal entry to Record the increase of the petty cash fund
Oct 01
Dr Petty cash $30
Cr Cash $30
($410-$440)
The export business in China is growing. Uncle George, who has just returned from a trade expo in Shanghai, has informed you that the port authority of Ningbo expects the demand to reach the same level as Shanghai. The port authority of Ningbo is now deciding how to change its system to accommodate this surge in demand. They have two options, (a) to retire their existing x-ray machine and buy an x-ray machine similar to the one used by the Shanghai port, or (b) to buy another x-ray machine similar to the one they already own and therefore operate the system with two similar machines. Both the options will cost the port authority of Ningbo the same. Purely from the perspective of reducing lead-time, is (a) or (b) better for you? Please show your detailed analysis.
Answer:
Assuming that the capacity of the new X-ray machine is the same as the capacity of two older machines, the difference results from the number of units waiting in line (queue). You would need two different groups of workers to move the containers into the correct position if you use the two older machines, while you need only one group to move them to the new machine. This decreases lead time since coordinating work also requires time, it might be a short time, but it is more time at the end of the day.
BBB Leasing purchased a machine for $390,000 and leased it to Jack Tupp Auto Repair on January 1, 2021. Lease description: Quarterly rental payments $24,408 at beginning of each period Lease term 5 years (20 quarters) No residual value; no BPO Economic life of machine 5 years Implicit interest rate 10% Fair value of asset $390,000 What is the balance in the lease payable account after the April 1, 2021, lease payment
Answer:
$350,324
Explanation:
total lease liability = $390,000
since the first payment is made on January 1, the carrying of lease liability = $390,000 - $24,408 = $365,592
the interest expense for the 3 months = $365,592 x 10% x 3/12 = $9,139.80 ≈ $9,140
carrying value of lease liability after second payment = $365,592 - ($24,408 - $9,140) = $365,592 - 15,268 = $350,324
define securitization.
Answer:
The conversion of an asset, especially a loan, into marketable securities, typically for the purpose of raising cash by selling them to other investors.
Assume that on September 1 Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September these transactions occurred.
Sept. 6 Purchased calculators from Green Box Co. at a total cost of $1,620, terms n/30.
9 Paid freight of $50 on calculators purchased from Green Box Co.
10 Returned calculators to Green Box Co. for $38 credit because they did not meet specifications.
12 Sold calculators costing $520 for $690 to University Book Store, terms n/30.
14 Granted credit of $45 to University Book Store for the return of one calculator that was not ordered. The calculator cost $34.
20 Sold calculators costing $570 for $760 to Campus Card Shop, terms n/30.
Answer:
Sept. 6 Purchased calculators from Green Box Co. at a total cost of $1,620, terms n/30.
Dr Inventory 1,620
Cr Accounts receivable 1,620
9 Paid freight of $50 on calculators purchased from Green Box Co.
Dr Inventory 50
Cr Cash 50
10 Returned calculators to Green Box Co. for $38 credit because they did not meet specifications.
Dr Accounts payable 38
Cr Inventory 38
12 Sold calculators costing $520 for $690 to University Book Store, terms n/30.
Dr Accounts receivable 690
Cr Sales revenue 690
Dr Cost of goods sold 520
Cr Inventory 520
14 Granted credit of $45 to University Book Store for the return of one calculator that was not ordered. The calculator cost $34.
Dr Sales revenue 45
Cr Accounts receivable 45
Dr Inventory 34
Cr Cost of goods sold 34
20 Sold calculators costing $570 for $760 to Campus Card Shop, terms n/30.
Dr Accounts receivable 760
Cr Sales revenue 760
Dr Cost of goods sold 570
Cr Inventory 570
Find the amount to which $600 will grow under each of these conditions: 8% compounded annually for 3 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ 8% compounded semiannually for 3 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ 8% compounded quarterly for 3 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ 8% compounded monthly for 3 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ 8% compounded daily for 3 years. Assume 365-days in a year. Do not round intermediate calculations. Round your answer to the nearest cent.
Answer:
Future values:
a. $755.83
b. $759.19
c. $760.95
d. $762.14
e. $762.75
Explanation:
a) Data and Calculations:
Present value = $600
Conditions:
1. 8% compounded annually for 3 years:
N (# of periods) = 3
I/Y (Interest per year) = 8
PV (Present Value) = $600
PMT (Periodic Payment) = $ 0
FV = $755.83
Total Interest = $155.83
2. 8% compounded semiannually for 3 years.
N (# of periods) = 6
I/Y (Interest per year) = 4
PV (Present Value) = $600
PMT (Periodic Payment) = $ 0
FV = $759.19
Total Interest $159.19
3. 8% compounded quarterly for 3 years.
N (# of periods) = 12
I/Y (Interest per year) = 2
PV (Present Value) = $600
PMT (Periodic Payment) = $ 0
FV = $760.95
Total Interest $160.95
4. 8% compounded monthly for 3 years.
N (# of periods) = 36
I/Y (Interest per year) = 0.66667%
PV (Present Value) = $600
PMT (Periodic Payment) = $0
FV = $762.14
Total Interest = $162.14
5. 8% compounded daily for 3 years. Assume 365-days in a year.
N (# of periods) = 1,095
I/Y (Interest per year) = 0.02192%
PV (Present Value) = $600
PMT (Periodic Payment) = $0
FV = $762.75
Total Interest $162.75
Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $345,000, and budgeted direct labor hours were 23,000. The average wage rate for direct labor is expected to be $30 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow:
Job 39 Job 40 Job 41 Job 42
Beginning balance $26,200 $32,800 $16,700 $0
Materials requisitioned 18,000 21,000 8,400 13,300
Direct labor cost 9,100 18,100 3,050 4,200
Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 110 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month.
Required:
1. Calculate the overhead rate based on direct labor cost.
% of direct labor cost
2. Set up a simple job-order cost sheet for all jobs in process during June. If an amount is zero, enter "0".
Naranjo Company
Job-Order Cost Sheets
Job 39 Job 40 Job 41 Job 42
Balance, June 1 $ $ $ $
Total $ $ $ $
3. What if the expected direct labor rate at the beginning of the year was $20 instead of $25? What would the overhead rate be?
New budgeted direct labor cost = $
New overhead rate = % of direct labor cost
How would the cost of the jobs be affected?
Answer:
1. Budgeted direct labor cost = Average wage rate for direct labor * Budgeted direct labor hours
Budgeted direct labor cost = $30 * 23,000
Budgeted direct labor cost = $690,000
Overhead rate = Budgeted overhead costs/Budgeted direct labor cost
Overhead rate = $345,000 / $690,000
Overhead rate = 0.5
Overhead rate = 50%
2. Applied Overhead = Direct labor cost * Overhead rate
Job 39 Job 40 Job 41 Job 42
Beginning balance $26,200 $32,800 $16,700 $0
Material requisitioned $18,000 $21,000 $8,400 $13,300
Direct labor cost $9,100 $18,100 $3,050 $4,200
Applied Overhead $4,550 $9,050 $1,525 $2,100
Total Cost $57,850 $80,950 $29,675 $19,600
3. Budgeted direct labor cost = Average wage rate for direct labor * Budgeted direct labor hours
Budgeted direct labor cost = $20 * 23,000
Budgeted direct labor cost = $460,000
Overhead rate = Budgeted overhead costs/Budgeted direct labor cost
Overhead rate = $345,000 / $460,000
Overhead rate = 0.75
Overhead rate = 75%
What does O + A + C = K stand for and mean in the legal "Formula" for contracts?
please helpppp
Answer:
O Stands for offer , A stands for acceptance , C stands for consideration , K stands for contract . An offer requirement, a contract and acceptance have it’s own thing.
Explanation:
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $433,200; materials of $418,000 and direct labor of $228,000. During the year Adams incurred $457,200 in materials costs, $451,600 in overhead costs and $232,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.
a. $10,800 overapplied.
b. $18,400 overapplied.
c. $10,800 underapplied.
d. $18,400 underapplied.
Answer:
see below
Explanation:
Given that cost incurred = $457,200
Overhead
= $457,200 - $433,200
The market for bell peppers is perfectly competitive and currently has an equilibrium price of $3 and the number of bell pappers traded is 6. Suppose the government imposes a price floor of $1 on this market. What will be the size of the shortage in this market
Well, the price would increase by 1 dollar, so the shortage would be 2 less.
There should be no shortage.
What is a price floor?
It is the minimum price where the producer should charge also at the same time it should be binding and considered effective. In the case when the price floor should be above the equilibrium price so it should be the surplus while on the other hand if the price floor is below the equilibrium price so that means it is no surplus. Also, the shortage is not possible
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Westan Corporation uses a predetermined overhead rate of $23.10 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $277,200 of total manufacturing overhead for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead costs of $266,000 and 12,600 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead that would have been applied to all jobs during the period.
Answer:
the applied manufacturing overhead is $291,060
Explanation:
The computation of the applied manufacturing overhead is shown below:
= Predetermined overhead rate × total direct labor hours
= $23.10 × 12,600
= $291,060
Hence, the applied manufacturing overhead is $291,060
Difine the following
1 operetional cost
2 social cost and
3 complementary goods
Answer:
1. expenses related to the operation of a business
2.sum of the private costs resulting from a transaction
3. complementary good is a good whose appeal increases with the popularity of its complement.
Jan is a music teacher at an elementary school. She writes a play for her students to perform.
The next year, she learns that another elementary school copied and is performing the same
play. Jan never registered or published the play. Which of the following is true?
O A. Jan can sue for copyright infringement.
B
None of the above
O c.
Jan can sue for an injunction to stop the other school from performing her play
OD
Jan can't do anything since she didn't publish the play
O E.
Jan can't do anything since she didn't register her copyright
Answer:
E.
Explanation:
E. because if she report it people will say she listen to the play and copied it to make it look like her's.
Organizations and agencies are a result of _______ in environmental protection issues.
a.
contingency plans
b.
hunting regulations
c.
government involvement
d.
all of the above
Please select the best answer from the choices provided
A
B
C
D
Answer:the answer is C I think
Explanation:
The organizations and agencies are a result of government involvement in environmental protection issues. Thus option (C) is correct.
What is an environment?An environment is the natural or human-made surroundings in which something exists or operates. It can refer to the physical, biological, social, or cultural context that influences and shapes the behavior, development, and well-being of living organisms or systems.
The environment can refer to the natural world, including the air, water, soil, and climate that sustain life on Earth. It can also refer to the built environment, such as cities, buildings, and infrastructure, that humans have constructed and inhabit.
The government involvement in environmental protection issues led to result in formation of organizations and agencies. Therefore, option (C) is correct.
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When an import tariff is imposed on an intermediate good, producers of this immediate good in the nation will ____________ while the producers that use the intermediate good as an input will ________. Get better off, get better off Get better off, get worse off Get worse off, get better off Get worse off, get worse off
Answer:
get better off
get worse off
Explanation:
Import are goods or services produced in other countries that are brought into a country.
Import tariff is a form of tax imposed on imported goods. import tariff increases the price of import. the purpose of import is to discourage import
Intermediate good are goods used in the production of finished. An example of an intermediate good is raw materials
When an import tariff is imposed on an intermediate good, producers that use the intermediate goods would be worse off because the price of intermediate goods needed for production would increase as a result of the tariff. This would increase their cost of production and reduce their profit margins
While the producers of the intermediate good in the country would be better off because they would face less foreign competition. Also, they would benefit from the increased price of the intermediate good. This would increase their profit margins.
The 2021 income statement of Adrian Express reports sales of $20,710,000, cost of goods sold of $12,600,000, and net income of $1,980,000. Balance sheet information is provided in the following table.
ADRIAN EXPRESS
Balance Sheets
December 31, 2021 and 2020
2021 2020
Assets
Current assets:
Cash $840,000 $930,000
Accounts receivable 1,775,000 1,205,000
Inventory 2,245,000 1,675,000
Long-term assets 5,040,000 4,410,000
Total assets $ 9,900,000 $8,220,000
Liabilities and Stockholders' Equity
Current liabilities $ 2,074,000 $1,844,000
Long-term liabilities 2,526,000 2,584,000
Common stock 2,075,000 2,005,000
Retained earnings 3,225,000 1,787,000
Total liabilities and stockholders' equity
$9,900,000 $8,220,000
Industry averages for the following profitability ratios are as follows:
Gross profit ratio 45 %
Return on assets 25 %
Profit margin 15 %
Asset turnover 8.5 times
Return on equity 35 %
Required:
1. Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.)
2. Do you think the company is more profitable or less profitable than the industry average?
More profitable
Less profitable
Answer:
Adrian Express
1. Five Profitability Ratios:
Gross profit ratio: = 39.2%
Return on assets = 20%
Profit margin = 9.6%
Asset turnover = 2.1 times
Return on equity = 37.4%
2. I think the company is:
Less profitable
than the industry average.
Explanation:
a) Data and Calculations:
Sales Revenue $20,710,000
Cost of goods sold $12,600,000
Gross profit $8,110,000
Net income $1,980,000
ADRIAN EXPRESS
Balance Sheets
December 31, 2021 and 2020
2021 2020
Assets
Current assets:
Cash $840,000 $930,000
Accounts receivable 1,775,000 1,205,000
Inventory 2,245,000 1,675,000
Current assets $4,860,000 $3,810,000
Long-term assets 5,040,000 4,410,000
Total assets $ 9,900,000 $8,220,000
Liabilities and Stockholders' Equity
Current liabilities $ 2,074,000 $1,844,000
Long-term liabilities 2,526,000 2,584,000
Common stock 2,075,000 2,005,000
Retained earnings 3,225,000 1,787,000
Total Equity 5,300,000 3,792,000
Total liabilities & stockholders' equity $9,900,000 $8,220,000
Industry averages for the following profitability ratios are as follows:
Gross profit ratio 45 %
Return on assets 25 %
Profit margin 15 %
Asset turnover 8.5 times
Return on equity 35 %
Gross profit ratio: = Gross profit/Sales * 100
= $8,110,000/$20,710,000 * 100
= 39.2%
Return on assets = Net income/Assets * 100
= $1,980,000/$9,900,000 * 100
= 20%
Profit margin = Net Income/Sales * 100
= $1,980,000/$20,710,000 * 100
= 9.6%
Asset turnover = Sales/Total Assets
= $20,710,000/$9,900,000 = 2.1 times
Return on equity = Net Income/Total Equity * 100
= $1,980,000/$5,300,000 * 100
= 37.4%
c. In 2018, preferred shareholders elected to convert 4.58 million shares of preferred stock ($39 million book value) into common stock. Rather than issue new shares, the company granted 4.58 million shares held in treasury stock to the preferred shareholders, with a total cost of $33 million. Prepare a journal entry to illustrate how this transaction would have been recorded. (Hint: use the cost per share for 2018 determined in b.) Enter answers in millions. Round to the nearest million.
Answer:
Dr Preferred stock 39
Cr Treasury stock 33
Cr Additional paid in capital 6
Explanation:
Since the value of preferred stock is lower than the value of treasury stock, then the difference must be recorded as additional paid in capital. Additional paid in capital = $39,000,000 - $33,000,000 = $6,000,000
Sheridan Incorporated factored $133,800 of accounts receivable with Skysong Factors Inc. on a without-recourse basis. Skysong assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable for possible adjustments. Prepare the journal entry for Sheridan Incorporated and Skysong Factors to record the factoring of the accounts receivable to Skysong. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
Sheridan Incorporated journal entry
Dr Cash 123,096
Dr Loss on sale receivables 2,676
Dr Due from factor 8,028
Cr Account receivable $133,800
Skysong Factors journal entry
Dr Account receivable 133,800
Cr Due to customer 8,028
Cr Interest revenue 2,676
Cr Cash 123,096
Explanation:
Preparation of the journal entry for Sheridan Incorporated and Skysong Factors to record the factoring of the accounts receivable to Skysong
Sheridan Incorporated journal entry
Dr Cash 123,096
(133,800-2,676-8,028)
Dr Loss on sale receivables 2,676
(2%*$133,800)
Dr Due from factor 8,028
(6%*$133,800)
Cr Account receivable $133,800
Skysong Factors journal entry
Dr Account receivable 133,800
Cr Due to customer 8,028
(6%*$133,800)
Cr Interest revenue 2,676
(2%*$133,800)
Cr Cash 123,096
(133,800-2,676-8,028)
Suppose recent regulatory reforms relating to credit rating agencies are perceived to improve the reliability and accuracy of credit ratings of corporate bonds. Imagine further that you manage a corporation interested in issuing new bonds, in addition to past issues by the firm that already trade in the market. Identify one way in which your firm might lose and one way in which it might gain from these regulatory reforms. Explain.
Answer:
If the new reforms bring increase confidence of the investors then the company will have to incur lower borrowing costs as the investor will be available and vice versa.
Explanation:
Suppose that previously our company's credit rating was overrated. Due to recent regulatory reforms, my company achieved a lower credit rating and hence the investor confidence in our company dropped significantly. Now the investor is not interested to invest in my company and to urge them to invest in the company, they will be offered higher interest. If the reforms are going to impact our credit rating adversely then the borrowing cost will increase and vice versa.
Furthermore, Core Principle 3 says that the decsion making of the investor is based on the information that is readily available to him. This means if the reforms increase the access of the borrower through improved credit rating then it will be favourable for the company in terms of lower borrowing costs. If the reforms decrease the access of the borrower through depreciating credit rating then it will adversely affect the company in terms of lower borrowing costs and lower investment access.
Fixed manufacturing costs are $51 per unit, and variable manufacturing costs are $153 per unit. Production was 81,000 units, while sales were 76,140 units. a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. b. Determine the difference in variable costing and absorption costing operating income.
Answer:
Part a.
Yes, variable costing operating income is less than or greater than absorption costing.
Part b.
$247,860
Explanation:
The difference between variable costing operating income and absorption costing operating income lies in the fixed costs deferred in inventory.
The profit in both method is the same if and only if there is no inventory. That means units produced equal units sold (Production = Sales)
The absorption costing method includes fixed manufacturing cost in determining product costs whereas the variable costing method only accounts for variable manufacturing cost.
When the units produced are greater than units Sold (Production > Sales) , Fixed Costs in Inventory increases this means absorption profits will be greater than Variable costing profit as Fixed costs in inventory value reduces cost of sales in absorption costing.
Difference in variable costing and absorption costing operating income.
Difference = (81,000 - 76,140) x $51
= $247,860
Acquired $70,000 cash from the issue of common stock. Purchased $61,000 of inventory on account. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,870 paid in cash. Sold inventory on account that cost $51,000 for $97,000. Freight cost on the goods sold in Event 4 was $1,020. The goods were shipped FOB destination. Cash was paid for the freight cost. Customer in Event 4 returned $4,540 worth of goods that had a cost of $2,320. Collected $79,540 cash from accounts receivable. Paid $56,200 cash on accounts payable. Paid $3,020 for advertising expense. Paid $4,050 cash for insurance expense. Required a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA. b. Record each event in a horizontal statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash, and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)
Answer:
Net Income = $33,820
Assets = Liabilities + Stockholders' Equity = $108,620
Explanation:
Note: This question is not complete as the introductory paragraph and the numbering are omitted. The complete question is therefore provided before answering the question as follows:
The Pet Store experienced the following events for the Year 1 accounting period:
1. Acquired $70,000 cash from the issue of common stock.
2. Purchased $61,000 of inventory on account.
3. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,870 paid in cash.
4. Sold inventory on account that cost $51,000 for $97,000.
5. Freight cost on the goods sold in Event 4 was $1,020. The goods were shipped FOB destination. Cash was paid for the freight cost.
6. Customer in Event 4 returned $4,540 worth of goods that had a cost of $2,320.
7. Collected $79,540 cash from accounts receivable.
8. Paid $56,200 cash on accounts payable.
9. Paid $3,020 for advertising expense.
10. Paid $4,050 cash for insurance expense.
Required:
a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA.
b. Record each event in a horizontal statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash, and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)
The explanation of the answer is now given as follows:
a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA.
Period costs are costs that include selling and asministrative costs which are not related to cost of producing a product.
Product costs can be described as costs of creating or producing a product that is meant for sale to customers.
Therefore, we have:
Event Cost
1 . NA
2. Product costs
3. Product costs
4. NA
5. NA
6. NA
7. NA
8. NA
9. Period costs
10. Period costs
b. Record each event in a horizontal statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash, and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)
Note: See the attache excel file for the horizontal statements.
In the attached excel file, Retained Earnings is equal to the balance of the Net Income which is equal to $33,820.
Under the horizontal statements in the attached excel, an evidence to show that Assets is equal to Liabilities Plus Stockholders' Equity. That is:
Assets = Liabilities + Stockholders' Equity = $108,620
which of the following is an example of greenwashing
Answer:
An example of greenwashing is the American multinational oil and gas corporation ExxonMobil indicating they were reducing greenhouse gas emissions while they were actually increasing
Explanation:
The example of greenwashing is a food company changes its packaging to look more natural in order to sell more.
In greenwashing, company do creates a small product that is eco-friendly to draw customers into their store.
Example: A doormat company sells one product made out of recycled material. The recycled material is overpriced but still makes them look good.
Unilever is also one type of business going green with an eco friendly strategy.
Conclusively, Greenwashing is simply the use of deceptive marketing techniques to persuade consumers that an organization's products and vision are environmentally-friendly.
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https://brainly.com/question/20574940
The full question is below
Which of the following is an example of greenwashing
A. A large office starts a recycling campaign to cut down on waste.
B. An event company uses recycled paper products instead of plastic
products.
C. A hair product company cuts back on certain chemicals.
D. A food company changes its packaging to look more natural in order to sell more.
bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 5,600 direct labor-hours will be required in August. The variable overhead rate is $5.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $69,440 per month, which includes depreciation of $15,680. 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:
$84,000
Explanation:
The computation of August cash disbursement for manufacturing overhead is seen below;
Direct labor hour
5,600
Variable overhead per hour
$5.4
Variable manufacturing overhead
$30,240
Fixed manufacturing overhead
$69,440
Total manufacturing overhead
$99,680
Less: Depreciation
$15,680
Cash disbursement for manufacturing overhead
$84,000
Many employment contracts have mandatory arbitration clauses.
False
True
Sheffield Corp. sells its product for $70 per unit. During 2019, it produced 60000 units and sold 50000 units (there was no beginning inventory). Costs per unit are: direct materials $15, direct labor $12, and variable overhead $1. Fixed costs are: $720000 manufacturing overhead, and $90000 selling and administrative expenses. The per unit manufacturing cost under absorption costing is
Answer:
$40
Explanation:
Calculation to determine what The per unit manufacturing cost under absorption costing is
The per unit manufacturing cost under absorption costing= $15 + $12 + $1 + ($720,000 / 60,000)
The per unit manufacturing cost under absorption costing= $15 + $12 + $1 +$12
The per unit manufacturing cost under absorption costing= $40
Therefore The per unit manufacturing cost under absorption costing is $40