Answer:
AAA Appliance Repair Services
January Ending Adjusting Entries:
1. Debit Rent Expense $2,000
Credit Prepaid Rent $2,000
To record the rent expense for the month of January 2019.
2. Debit Supplies Expense $6,000
Credit Supplies $6,000
To record the supplies expense for the month of January 2019.
3. Debit Depreciation Expense $250
Credit Accumulated Depreciation $250
To record the depreciation expense for the month of January 2019.
4. Debit Advertising Expense $200
Credit Prepaid Advertising $200
To record the advertising expense for the month of January 2019.
Explanation:
a) Data and Transaction Analysis:
1. Rent Expense $2,000 Prepaid Rent $2,000
2. Supplies Expense $6,000 Supplies $6,000 ($7,600 - $1,600)
3. Depreciation Expense $250 Accumulated Depreciation $250 ($15,000/5 * 1/12)
4. Advertising Expense $200 Prepaid Advertising $200 ($600/3)
Do It! Review 9-2a On January 1, 2017, Salt Creek Country Club purchased a new riding mower for $17,500. The mower is expected to have a 10-year life with a $600 salvage value. What journal entry would Salt Creek make on December 31, 2017, if it uses straight-line depreciation
Answer:
Salt Creek should make a journal entry to record full one year depreciation expenses relating to the mower at 31st December 2017 as followed;
Dr Depreciation expenses - Machinery $1,690
--------Cr Accumulated depreciation - Machinery $1,690
Explanation:
Depreciation refers to the fall in the value of an asset. The annual depreciation expenses relating to Mower would be calculated as;
Annual depreciation expense = (Initial cost of Mower - Estimated salvage value) / Expected useful life.
= ($17,500 - $600) / $10
= $16,900 / $10
= $1,690
Since the Mower is purchased on January 1st, 2017, at 31st December 2017, Salt creek should make a entry to record full year depreciation expense.
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.
A municipal bond has yield to maturity of 4.83 percent. An investor with a marginal tax rate of 35 percent is indifferent between this municipal bond and an otherwise identical taxable corporate bond. What is the yield to maturity of the corporate bond
Answer: 7.43%
Explanation:
The yield to maturity simply refers to the total return that is expected on a bond as long as the bond is held till it matures.
In this case, since the investor is indifferent between this municipal bond and an otherwise identical taxable corporate bond, the yield to maturity of the corporate bond will be:
4.83% = Corporate bond YTM × ( 1- 35%)
4.83% = Corporate bond YTM × 65%
Corporate bond YTM = 4.83% / 65%
Corporate bond YTM = 0.0483/0.65
Corporate bond YTM = 7.43%
The yield to maturity of the corporate bond is 7.43%
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%
What term is used for the extent to which an individual within an organization displays different behaviors in different situations?
Answer: distinctiveness
Explanation:
The options to the question include:
A. Continuity
B. Integrity
C. stability
D. flexibility
E. distinctiveness
The term that is used for the extent to which an individual within an organization displays different behaviors in different situations is refered to as distinctiveness.
Distinctiveness is the quality that one possesses which makes one standout and different from others. It allows the individual to be easily recognized due to the different behaviors displayed.
A consumer derives utility from goods A and B according to the following utility function: U(A, B) = A1/4B 3/4 . The price of good A is $12 per unit and the price of good B is $9 per unit. The consumer has a total budget of $180. What is the utility maximizing bundle for the consumer?
Answer:
3.75 units of A, and 15 units of B
Explanation:
U(A, B) = A¹/⁴ x B³/⁴
A = $12
B = $9
A' = 1/4 x $180 = 45
B' = 3/4 x $180 = 135
Utility is maximized when $45 is spent in A, meaning that $45 / $12 = 3.75 units are purchased.
Utility is maximized when $135 is spent in B, meaning that $135 / $9 = 15 units are purchased.
A company expects to pay a dividend of $3.50 per share one year from today. the dividend is expected to grow at 30 percent per year for three years. Thereafter, the dividend will grow at 4 percent per year in perpetuity. if the appropriate discount rate for the stock is 13 percent, what is the price of the stock today
Answer: $70
Explanation:
Price = Present value of year 1 dividend + Present value of year 2 dividend + Present value of year 3 dividend + Present value of year 4 dividend + Present value of year 4 price
Year 4 price = Year 4 dividend / ( Required return - Growth rate after 3 years)
= (3.50 * 1.30³ * 1.04) / (13% - 4%)
= $88.856
Price = (3.50 / (1 + 13%)) + ( (3.50 * 1.3) / 1.13²) + ( (3.50 * 1.3²) / 1.13³) + ( (3.50 * 1.3³) / 1.13⁴) + 88.856/1.13⁴
= $69.97
= $70
During April, the first production department of a process manufacturing system completed its work on 330,000 units of a product and transferred them to the next department. Of these transferred units, 66,000 were in process in the production department at the beginning of April and 264,000 were started and completed in April. April's beginning inventory units were 65% complete with respect to materials and 35% complete with respect to conversion. At the end of April, 88,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion.
Weighted average: Costs assigned to output and inventories LO C2
The production department had $918,775 of direct materials and $723,261 of conversion costs charged to it during April. Also, its beginning inventory of $185,284 consists of $142,285 of direct materials cost and $42,999 of conversion costs.
1&2. Using the weighted-average method, compute the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department’s output.
Answer:
total units completed = 330,000
beginning WIP = 66,000
ending WIP = 88,000
total EUP conversion costs = 330,000 + (88,000 x 30%) = 356,400
total EUP materials = 330,000 + (88,000 x 80%) = 400,400
total conversion costs = $723,261 + $42,999 = $766,260
total materials costs = $918,775 + $142,285 = $1,061,060
conversion cost per EUP = $766,260 / 356,400 = $2.15
materials cost per EUP = $1,061,060 / 400,400 = $2.65
Taylor Company began manufacturing operations on January 2, 20X1. During 20X1 Taylor reported pre-tax book income of $150,000 and had taxable income of $200,000. Taylor had a temporary difference relating to accrued product warranty costs which are expected to be paid as follows: 20X2$30,00020X3$15,00020X4$5,000 The enacted tax rates are 21% for 20X1 and 20X2; and 25% for 20X3 and 20X4. The deferred tax asset at the end of 20X1 is:
Answer:
$11,300
Explanation:
The computation of the deferred tax asset is shown below:
= 21%(20X2 Expense) + 25%(20X3 and 20X4 Expense)
= 21%($30,000) + 25%($15,000) + 25%($5,000)
= $6,300 + $3,750 + $1,250
= $11,300
Waterway Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. WATERWAY RESORT TRIAL BALANCE AUGUST 31, 2020 Debit Credit Cash $25,300 Prepaid Insurance 10,200 Supplies 8,300 Land 28,000 Buildings 128,000 Equipment 24,000 Accounts Payable $10,200 Unearned Rent Revenue 10,300 Mortgage Payable 68,000 Common Stock 104,700 Retained Earnings 9,000 Dividends 5,000 Rent Revenue 84,200 Salaries and Wages Expense 44,800 Utilities Expenses 9,200 Maintenance and Repairs Expense 3,600 $286,400 $286,400 Other data: 1. The balance in prepaid insurance is a one-year premium paid on June 1, 2020. 2. An inventory count on August 31 shows $445 of supplies on hand. 3. Annual depreciation rates are (a) buildings (4%) (b) equipment (10%). Salvage value is estimated to be 10% of cost. 4. Unearned Rent Revenue of $4,172 was earned prior to August 31. 5. Salaries of $365 were unpaid at August 31. 6. Rentals of $843 were due from tenants at August 31. (Use Accounts Receivable account.) 7. The mortgage interest rate is 8% per year.
Question Completion:
Journalize the adjusting entries for the three months of 2020.
Answer:
Waterway Resort
Adjusting Journal Entries:
No. Date Account Titles and Explanation Debit Credit
1. Aug. 31 Insurance Expense $2,550
Prepaid Insurance $2,550
To record insurance expense for the three months' period.
2. Aug. 31 Supplies Expense $7,855
Supplies $7,855
To record supplies expense for the three months' period.
3. Aug. 31 Depreciation Expense - Building $1,280
Accumulated Depreciation - Building $1,280
To record depreciation expense for the three months' period.
3. Aug. 31 Depreciation Expense-Equipment $540
Accumulated Depreciation - Equipment $540
To record depreciation expense for the three months' period.
4. Aug. 31 Unearned Rent Revenue $4,172
Rent Revenue $4,172
To record rent revenue earned.
5. Aug. 31 Salaries Expense $365
Salaries Payable $365
To record accrued salaries expense.
6. Aug. 31 Accounts Receivable $843
Rent Revenue $843
To record accounts receivable due.
7. Aug. 31 Interest Expense $1,360
Interest Payable $1,360
To record mortgage interest expense.
Explanation:
a) Data and Calculations:
WATERWAY RESORT TRIAL BALANCE AUGUST 31, 2020
Debit Credit
Cash $25,300
Prepaid Insurance 10,200
Supplies 8,300
Land 28,000
Buildings 128,000
Equipment 24,000
Accounts Payable $10,200
Unearned Rent Revenue 10,300
Mortgage Payable 68,000
Common Stock 104,700
Retained Earnings 9,000
Dividends 5,000
Rent Revenue 84,200
Salaries and Wages Expense 44,800
Utilities Expenses 9,200
Maintenance and Repairs Expense 3,600
Totals $286,400 $286,400
b) Adjusting transactions:
1. Insurance Expense $2,550 Prepaid Insurance $2,550 ($10,200 * 3/12)
2. Supplies Expense $7,855 Supplies $7,855 ($8,300 - $445)
3. Depreciation Expense - Building $1,280 Accumulated Depreciation - Building $1,280 ($128,000 * 4% * 3/12)
3. Depreciation Expense - Equipment $540 Accumulated Depreciation - Equipment $540 ($24,000 -$2,400 * 10% * 3/12)
4. Unearned Rent Revenue $4,172 Rent Revenue $4,172
5. Salaries Expense $365 Salaries Payable $365
6. Accounts Receivable $843 Rent Revenue $843
7. Interest Expense $1,360 Interest Payable $1,360 ($68,000 * 8% * 3/12)
which of the following articles of the US Consitution created the executive branch
Answer:
Article II
Explanation:
Article 2 of the constitutions vests executive power to the President of the USA
Consider an economy described by the following equations: Y = C + I + G, G = 2,000 T = 2,000 C = 250 + 0.75YD I = 750 a) Is there a government budget deficit, budget surplus, or balanced budget? A. budget deficit B. budget surplus C. balanced budget b) Calculate the equilibrium value of Y. Y = $ nothing c) What is the value of autonomous consumption (c0)? autonomous consumption = $ nothing d) What is the value of MPC? What is the value of MPS? MPC = nothing MPS = nothing e) Calculate the value of APC and the value of APS. Round your answers at 2 decimal places. APC = nothing APS = nothing f) Calculate private saving, public saving and national saving. Private Saving = $ nothing Public Saving = $ nothing National Saving = $ nothing
Answer: See explanation
Explanation:
a. This is a balanced budget. A balanced budget is when the government expenditure and the revenue generated are thesame. In this case, government expenditure (G) and revenue gotten from taxes (T) are both 2000.
b. The equilibrium value of Y will be:
Y = C + I + G
Y = 250 + 0.75(Y - 2000) + 750 + 2000
Y = 250 + 0.75Y - 1500 + 750 + 2000
Y - 0.75Y = 1500
0.25Y = 1500
Y = 1500/0.25
Y = 6,000
c. The value of the autonomous consumption (c0) will be:
c0 = 250
d. MPC = 0.75 ,
Note that MPS = 1 - MPC
= 1 - 0.75
= 0.25
e APC = C/YD
= 3250/4000
= 0.8125
APS = S/YD
= 750/4000
= 0.1875
f. Private Saving = 750
Public saving = 0
Then, the National Saving will be:
= Public savings - private savings
= 750 - 0
= 750
Desjarlais Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.
Activity Cost Pools Activity Rate
Setting up batches $ 87.25 per batch
Assembling products $ 6.38 per assembly hour
Processing customer orders $ 53.91 per customer order
Data concerning two products appear below:
Product S96U Product Q06F
Number of batches 34 45
Number of assembly hours 105 820
Number of customer orders 17 29
Required:
a. How much overhead cost would be assigned to Product S96U using the company's activity-based costing system?
b. How much overhead cost would be assigned to Product QO6F using the company's activity-based costing system?
Answer:
Results are below.
Explanation:
To allocate overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
S96U:
Setting up batches= 87.25*34= $2,966.5
Assembling products= 6.38*105= $669.9
Processing customer orders= 53.91*17= $916.47
Total allocated costs= $4,552.87
QO6F:
Setting up batches= 87.25*45= $3,926.25
Assembling products= 6.38*820= $5,231.6
Processing customer orders= 53.91*29= $1,563.39
Total allocated costs= $10,721.24
The City of Lora issued $5,000,000 of general government, general obligation, 8%, 20-year bonds at 103 on April 1, 2017 20X7, to finance a major general government capital project. Interest is payable semiannually on each October 1 and April 1 during the term of the bonds. In addition, $250,000 of principal matures each April 1. If Lora's fiscal year-end is December 31, what amount of debt service expenditures should be reported for this DSF for the 20X7 fiscal year
Answer:
$200,000
Explanation:
The value of the government obligation = $5,00,000, 8%, 20 years bonds payable at 103
Interest expenses = $5,000,000 * 8/100 * 6/12 = $200,000.
Thus, $200,000 will be reported as debt service expenses in the fiscal year 20X7.
Suppose the town of Boone has a total population of 70,000 people. Of those, 65,000 people are employed. There are 1,000 full-time students who are not employed or actively seeking work. The rest of the people are out of work but have been actively seeking work within the past four weeks.
Instructions: In part a, round your answer to 1 decimal place. In part b, enter your answer as a whole number.
a. What is Boone’s unemployment rate?
percent
b. Suppose there are 1,000 people who are unemployed as a result of frictional unemployment and 2,000 people who are unemployed as a result of cyclical unemployment. How many people are unemployed as a result of structural unemployment?
Answer:
A. 5.8%
B. 1,000
Explanation:
Calculation for Boone’s unemployment rate
Unemployment rate=[(70,000-1,000)-65,000]/(70,000-1,000)*100
Unemployment rate=(69,000-65,000)/69,000*100
Unemployment rate=4,000/69,000*100
Unemployment rate=5.8%
Therefore Boone’s unemployment rate will be 5.8%
B. Calculation for How many people are unemployed as a result of structural unemployment
Unemployed people=[(70,000-1,000)-65,000]-1,000-2,000
Unemployed people= 4,000 - 1,000 - 2,000
Unemployed people=1,000
Therefore the numbers of people that are are unemployed as a result of structural unemployment will be 1,000
At December 31, 2020 and 2021, Oriole Company had outstanding 4000 shares of $100 par value 6% cumulative preferred stock and 18800 shares of $10 par value common stock. At December 31, 2020, dividends in arrears on the preferred stock were $13000. Cash dividends declared in 2021 totaled $44600. What amounts were payable on each class of stock
Answer:
See below
Explanation:
2020 2021
Allocation to preferred stock
Nil 44,600
Remainder to common stock
Nil 20,000
Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,400 units. The costs and percentage completion of these units in beginning inventory were:
Cost Percent Complete
Materials costs $6,700 65%
Conversion costs $7,800 45%
A total of 8,500 units were started and 6,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
Cost
Materials costs $126,500
Conversion costs $208,000
The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The cost per equivalent unit for conversion costs for the first department for the month is closest to:_____.
a. $18.42.
b. $19.02.
c. $19.91.
d. $17.60.
Answer: $27.14
Explanation:
First find the ending inventory:
= Beginning inventory + Units started - units transferred
= 1,400 + 8,500 - 6,900
= 3,000 units
Conversion EUP = Units transferred + (50% * ending inventory)
= 6,900 + (35% * 3,000)
= 7,950 units
Conversion cost per EUP:
= (Beginning conversion cost + month conversion cost) / EUP
= (7,800 + 208,000) / 7,950
= $27.14
The options are probably for another variant of this question.
Companies recognize revenue when goods or services are transferred to customers for the amount the company expects to be entitled to receive in exchange for those goods or services. That core principle is implemented by (1) identifying a contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price of the contract, (4) allocating that price to the performance obligations, and (5) recognizing revenue when (or as) each performance obligation is satisfied.
Answer:
1. Identifying a contract with a customer.
First step is to identify that a contract has been made with a customer to supply some form of goods or service.
2. Identifying the performance obligations in the contract.
Second step is to identify what is required of the company by the customer via the contract.
3. Determining the transaction price of the contract.
After identifying the performance obligations, the company must now decide the price they can satisfy these obligations with.
4. Allocating that price to the performance obligations.
Company should then allocate the price to the performance obligations to properly trace costs and revenue.
5. Recognizing revenue when (or as) each performance obligation is satisfied.
As each obligation is satisfied, the company will be able to know what revenue to recognize because they assigned prices to each obligation.
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
The president of the Micro Brewing Corporation asks you, as the company economist, to forecast changes in consumer beer purchases associated with a proposed price change. You conduct a survey and find that if the price of a six-pack increases from $5.50 to $7.50, the quantity demanded will decrease from 2200 units to 1800 units a month. Should the Micro Brewing Corporation raise its price? Explain the economic basis for this recommendation to the president
Answer:
It is more profitable to raise the selling price by $2.
Explanation:
To determine whether the company should raise the selling price, we need to determine the effect on income. The best option is the one with the higher sales revenue.
Sales revenue= selling price * number of units
Current:
Sales revenue= 5.5*2,200= $12,100
Proposal:
Sales revenue= 7.5*1,800= $13,500
It is more profitable to raise the selling price by $2.
Fort Corporation had the following transactions during its first month of operations
1. Purchased raw materials on account, $85,000. 2. Raw Materials of $30,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,000 was classified as indirect materials. 3. Factory labor costs incurred were $175,000 of which $145,000 pertained to factory wages payable and $30,000 pertained to employer payroll taxes payable. 4. Time tickets indicated that $145,000 was direct labor and $30,000 was indirect labor. 5. Overhead costs incurred on account were $198,000. 6. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 7. Goods costing $115,000 are still incomplete at the end of the month; the other goods were completed and transferred to finished goods. 8. Finished goods costing $100,000 to manufacture were sold on account for $130,000.
Journalize the above transactions for Fort Corporation. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit No. Account Titles and Explanation
1.
2.
3.
4.
5.
6.
7.
8.
Answer:
Account title and description Debit Credit
Raw materials inventory $85,000
Accounts Payable $85,000
Account title and description Debit Credit
Work in Process $24,000
Manufacturing overhead $6,000
Raw materials inventory $30,000
Account title and description Debit Credit
Factory Labor $175,000
Factory wages payable $145,000
Payroll taxes payable $30,000
Account title and description Debit Credit
Work in process Inventory $145,000
Manufacturing overhead $30,000
Factory Labor $175,000
Account title and description Debit Credit
Manufacturing overhead $198,000
Accounts payable $198,000
Account title and description Debit Credit
Work in process Inventory $217,500
Manufacturing overhead $217,500
Working
= 145,000 * 150% = $217,500
Account title and description Debit Credit
Finished goods Inventory $271,500
Work in process Inventory $271,500
Working
= 24,000 + 145,000 + 217,500 - 115,000 = $271,500
Account title and description Debit Credit
Account receivables $130,000
Sales $130,000
Cost of goods sold $100,000
Finished goods Inventory $100,000
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
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.
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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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.
The following were selected from among the transactions completed by Babcock Company during November of the current year. Babcock uses the net method under a perpetual inventory system.
Nov. 3 Purchased merchandise on account from Moonlight Co., list price $89,000, trade discount 30%, terms FOB destination, 2/10, n/30.
4 Sold merchandise for cash, $38,210. The cost of the goods sold was $20,810.
5 Purchased merchandise on account from Papoose Creek Co., $51,550, terms FOB shipping point, 2/10, n/30, with prepaid freight of $730 added to the invoice.
6 Returned $14,000 ($20,000 list price less trade discount of 30%) of merchandise purchased on November 3 from Moonlight Co.
8 Sold merchandise on account to Quinn Co., $15,010 with terms n/15. The cost of the goods sold was $10,190.
13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
14 Sold merchandise on VISA, $231,570. The cost of the goods sold was $142,060.
15 Paid Papoose Creek Co. on account for purchase of November 5.
23 Received cash on account from sale of November 8 to Quinn Co.
24 Sold merchandise on account to Rabel Co., $54,800, terms 1/10, n/30. The cost of the goods sold was $33,850.
28 Paid VISA service fee of $3,580.
30 Paid Quinn Co. a cash refund of $6,420 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,140.
Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTSBabcock CompanyGeneral Ledger
ASSETS
110 Cash
121 Accounts Receivable-Quinn Co.
122 Accounts Receivable-Rabel Co.
125 Notes Receivable
130 Inventory
131 Estimated Returns Inventory
140 Office Supplies
141 Store Supplies
142 Prepaid Insurance
180 Land
192 Store Equipment
193 Accumulated Depreciation-Store Equipment
194 Office Equipment
195 Accumulated Depreciation-Office Equipment
LIABILITIES
211 Accounts Payable-Moonlight Co.
212 Accounts Payable-Papoose Creek Co.
216 Salaries Payable
218 Sales Tax Payable
219 Customer Refunds Payable
221 Notes Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
521 Delivery Expense
522 Advertising Expense
524 Depreciation Expense-Store Equipment
525 Depreciation Expense-Office Equipment
526 Salaries Expense
531 Rent Expense
533 Insurance Expense
534 Store Supplies Expense
535 Office Supplies Expense
536 Credit Card Expense
539 Miscellaneous Expense
710 Interest Expense
Answer and Explanation:
The journal entries are shown below:
On Nov 3
Merchandise Inventory $62,300 ($89,000 × (1-30%))
To Accounts Payable-Moonlight Co $62,300
(Being inventory purchased on account)
On Nov 4
Cash $38,210
To Sales $38,210
(Being cash is recorded)
Cost of goods sold $20,810
To Merchandise Inventory $20,810
(Being cost of inventory is recorded)
On Nov 5
Merchandise Inventory $52,280 ($51,550 + $730)
To Accounts Payable-Papoose Creek $52,280
(Being inventory purchased on account)
On Nov 6
Accounts Payable-Moonlight Co. $14,000
To Merchandise Inventory $14,000
(Being returned goods is recorded)
On Nov 8
Accounts Receivable-Quinn Co $ 15,010
To Sales $15,010
(Being sales is recorded)
Cost of goods sold $10,190
To Merchandise Inventory $10,190
(Being cost of inventory is recorded)
On Nov 13
Accounts Payable-Moonlight Co. 48,300 (62,300- 14,000)
To Cash 47,334
To Merchandise Inventory 966 ($48,300 × 2%)
(being cash paid is recorded)
On Nov 14
Cash $231,570
To Sales $231,570
(Being cash is recorded)
Cost of goods sold $142,060
To Merchandise Inventory $142,060
(Being cost of inventory is recorded)
On Nov 15
Accounts Payable-Papoose Creek $52,280
To Cash $51,249
To Merchandise Inventory 1,031 ($51,550 ×2%)
(Being cash paid is recorded)
On Nov 23
Cash $15,010
To Accounts Receivable-Quinn Co $15,010
(Being cash collection is recorded)
On Nov 24
Accounts Receivable-Rabel Co. $54,800
To Sales $54,800
(being sales is recorded)
Cost of goods sold $33,850
To Merchandise Inventory $33,850
(Being cost of inventory is recorded)
On Nov 28
VISA service fees $3,580
To Cash $3,580
(Being cash paid is recorded)
On Nov 30
Sales returns and allowances $6,420
To Cash 6,420
(Being sales return is recorded)
Merchandise Inventory 3,140
To Cost of goods sold $3,140
(Being returned inventory is recorded)
The daily cost of producing pizza in New Haven is C(Q) = 4Q + (Q2/40); the marginal cost is MC = 4 + (Q/20). There are no avoidable fixed costs. What is the market supply function if there are 10 firms making pizza? If 20 firms are making pizza? What is the market supply curve under free entry? [HINT: As the first step, find the AC and show that AC is at its minimum when Q = 0.]
Answer:
[tex]q_{10}[/tex] = 200P - 800
[tex]q_{20}[/tex] = 400P - 1600
Explanation:
let the supply function be : P = MC
P = 4 + Q/20
therefore Q = 20P - 80 ( supply function )
For 10 firms
Q = 10( 20P - 80 ) = 200P - 800
for 20 firms
Q = 20(20P - 80 ) = 400P - 1600
next determine market supply curve under free entry
AC = 4 + Q/40
Hence ; when Q = 0 , AC = 4 and this is for unlimited number of firms
Umatilla Bank and Trust is considering giving Splish Brothers Inc. a loan. Before doing so, it decides that further discussions with Splish Brothers Inc.’s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $247,680. Discussions with the accountant reveal the following.
1. Splish Brothers Inc. sold goods costing $50,590 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
2. The physical count of the inventory did not include goods costing $100,920 that were shipped to Splish Brothers Inc. FOB destination on December 27 and were still in transit at year-end.
3. Splish Brothers Inc. received goods costing $25,880 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count.
4. Splish Brothers Inc. sold goods costing $54,220 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Splish Brothers Inc. physical inventory.
5. Splish Brothers Inc. received goods costing $43,380 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $247,680.
Determine the correct inventory amount on December 31.
Answer:
the correct inventory amount is $284,400
Explanation:
The computation of the correct inventory amount is shown below:
= End year balance + FOB shipping point + fob destination - fob destination
= $247,680 + $25,880 + $54,220 - $43,380
= $284,400
Hence, the correct inventory amount is $284,400
Clearsound uses Alpha Electronics and La Paz Company to buy two electronic components used in the manufacture of its cell phones: Component 125X and Component 30Y. Consider two activities: testing components and reordering components. After the two components are inserted, testing is done to ensure that the two components in the phones are working properly. Reordering occurs because one or both of the components have failed the test and it is necessary to replenish component inventories. Activity cost information and other data needed for supplier costing are as follows:
I. Activity Costs Caused by Suppliers (testing failures and reordering as a result)
Activity Costs
Testing components $1,200,000
Reordering components 300,000
II. Supplier Data
Alpha Electronics La Paz Company
125X 30Y 125X 30Y
Unit purchase price $10 $26 $12 $28
Units purchased 120,000 84,400 15,000 15,000
Failed tests 1,500 780 10 10
Number of reorders 60 40 0 0
Required:
Determine the cost of each supplier by using ABC. Round Test and Reorder rates to the nearest dollar, and final answers to the nearest cent.
Alpha Electronics La Paz Company
125X 30Y 125X 30Y
Unit cost: $ $ $ $
Answer:
Clearsound
The cost of each supplier, using ABC:
Alpha Electronics La Paz Companyl
125X 30Y 125X 30Y
Unit cost $18.02 $32.24 $12.35 $28.35
Explanation:
a) Data and Calculations:
Activity Costs
Testing components $1,200,000
Reordering components $300,000
Total costs = $1,500,000
II. Supplier Data
Alpha Electronics La Paz Company Total
125X 30Y 125X 30Y
Unit purchase price $10 $26 $12 $28
Units purchased 120,000 84,400 15,000 15,000
Total costs of units $1,200,000 $2,194,400 $180,000 $420,000
Failed tests 1,500 780 10 10 2,300
Number of reorders 60 40 0 0 100
Activity Rates:
Failed tests $1,200,000/2,300 = $521.74
Reordering $300,000/100 = $3,000
Alpha Electronics La Paz Companyl
125X 30Y 125X 30Y
Unit purchase price $10 $26 $12 $28
Units purchased 120,000 84,400 15,000 15,000
Total costs of units $1,200,000 $2,194,400 $180,000 $420,000
Testing components 782,610 406,957 5,217 5,217
Reordering 180,000 120,000
Total costs $2,162,610 $2,721,357 $185,217 $425,217
Unit cost $18.02 $32.24 $12.35 $28.35
Brian has a job. The first place he should look for health care coverage is because the costs will probably be the for the generous terms and coverage. Darnell does not have a job. He is a member of the alumni association of his alma mater. Darnell will probably find better coverage for a lower cost through plans offered by because plans spread the costs and risks among more people than plans do. To begin their research, Brian and Darnell should look at in order to .
Answer:
the company he works for
lowest
most
his alumni association
group
individual
indemnity and managed care plans
be thorough
Explanation:
Shen has a job. The first place he should look for health care coverage is his employer because the costs will probably be the most affordable for the generous terms and coverage. Yakov does not have a job. He is a member of the alumni association of his alma mater. Yakov will probably find better coverage for a lower cost through plans offered by health insurance exchanges because these plans spread the costs and risks among more people than individual plans do. To begin their research, Shen and Yakov should look at the websites of health insurance providers in order to compare different plans, costs, and coverage options.
In their pursuit of health care coverage, Shen and Yakov have distinct options based on their employment status. With a job, Shen's best initial choice lies with his employer-provided health insurance, likely offering affordable premiums and comprehensive coverage. Conversely, Yakov's absence of employment leads him to explore health insurance exchanges
As an alumnus, he may access plans with better coverage at lower costs since these plans distribute expenses and risks across a larger pool of individuals. Both should commence their research by reviewing the official websites of local health insurance providers, where they can compare various plans to make informed decisions that align with their specific needs and financial capabilities.
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------------The given question is incomplete, the complete question is:
"FILL IN THE BLANK WITH THE CORRECT WORDS:
Shen has a job. The first place he should look for health care coverage is _____ because the costs will probably be the ______ for the generous terms and coverage. Yakov does not have a job. He is a member of the alumni association of his alma mater. Yakov will probably find better coverage for a lower cost through plans offered by ________ because ________ plans spread the costs and risks among more people than _______ plans do. To begin their research, Shen and Yakov should look at _______ in order to _____________."---------------