Answer:
Rippelmeyer Kennel
The net operating income in the planning budget for May would be closest to:
= $30,740.
Explanation:
a) Data and Calculations:
Budgeted tenant-days = 3,600
Actual tenant-days = 3,550
Actual results for May:
Revenue $73,540
Wages and salaries $16,170
Expendables 19,735
Facility expenses 18,125
Administrative expenses 7,600
Total expenses $61,630
Net operating income $11,910
Fixed element Variable element Total
per month per tenant day
Revenue $34.80 $125,280
Wages and salaries $3,900 $6.00 $25,500
Expendables 400 9.70 35,320
Facility expenses 9,400 4.50 25,600
Administrative expenses 7,400 0.20 8,120
Total expenses 21,100 20.40 $94,540
Net Operating Income $30,740
An analyst compiled the following information for U Inc. for the year ended December 31, 2018: Net income was $1,700,000. Depreciation expense was $400,000. Interest paid was $200,000. Income taxes paid were $100,000. Common stock was sold for $200,000. Preferred stock (8% annual dividend) was sold at par value of $250,000. Common stock dividends of $50,000 were paid. Preferred stock dividends of $20,000 were paid. Equipment with a book value of $100,000 was sold for $200,000. Using the indirect method, what was U Inc.'s net cash flow from operating activities for the year ended December 31, 2018?
Answer:
Net cash from operating activities=$2,100,000
Explanation:
The net cashflow from operating activities represent how much a business generates doing its ordinary course of business.
It is the net income adjusted for all non-cash items like depreciation e.t.c
Net cash from operating activities = 1,700,000 + 400,000= $2.100,000
Net cash from operating activities=$2,100,000
The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2017 were as follows: Static Budget Victor House-Mate Total Number sold 20,000 80,000 100,000 Contribution margin $4,600,000 $15,200,000 $19,800,000 Actual Results Victor House-Mate Total Number sold 21,500 64,500 86,000 Contribution margin $6,665,000 $14,190,000 $20,855,000 What is the total sales-mix variance closest to in terms of the contribution margin
Answer:
The Fortise Corporation
The total sales-mix variance closest to $1,055,000 in terms of the contribution margin.
Explanation:
a) Data and Calculations:
Static Budget Victor House-Mate Total
Total Number sold 20,000 80,000 100,000
Contribution margin $4,600,000 $15,200,000 $19,800,000
Actual Results Victor House-Mate Total
Number sold 21,500 64,500 86,000
Contribution margin $6,665,000 $14,190,000 $20,855,000
Variance
Number sold 1,500 F 15,500 U 14,000 U
Contribution margin $2,065,000 F $1,010,000 U $1,055,000 F
HELP ME PLEASE!!
When practicing a speech, you should attempt to make your voice as deep as you physically can.
A.
True
B.
False
your answer is FALSE
Never-Die Battery manufactures batteries for industrial and consumer use. The company purchased a commercial package policy (CPP) to cover its property exposures. In addition to common policy conditions and declarations, the policy contains a building and personal property coverage form and an equipment breakdown protection coverage form. The policy also contains the causes-of-loss broad form. With respect to each of the following losses, indicate whether or not the loss is covered.
a. An explosion occurred that damaged the building where finished batteries are stored.
b. Because of the explosion, the company incurred expenses for expedited shipping of replacement parts for machines used to manufacture the batteries.
c. The explosion injured several employees who received emergency treatment at a local hospital.
d. An automatic sprinkler system accidentally discharged in the finished goods building. Some recently manufactured batteries were ruined because of water damage and corrosion.
Answer:
a. An explosion occurred that damaged the building where finished batteries are stored. COVERED.
The policy covers their property exposures which includes a building and property coverage which means that damage to the building will be covered.
b. Because of the explosion, the company incurred expenses for expedited shipping of replacement parts for machines used to manufacture the batteries. COVERED.
There is a coverage for equipment breakdown as well and because some machines were damaged in the explosion, they will need to be replaced and as they qualify as broken down, they will be covered.
c. The explosion injured several employees who received emergency treatment at a local hospital. COVERED.
With business and property insurance, employees are covered in the policy when they incur injuries related to business operations so these employees are covered.
d. An automatic sprinkler system accidentally discharged in the finished goods building. Some recently manufactured batteries were ruined because of water damage and corrosion. COVERED.
The sprinkler is considered equipment so in breaking down its effects are covered by the equipment breakdown so this is covered as well.
Kathy is 42 years old and has been diagnosed with a rare case of early onset Alzheimer's disease. While there are drugs that can control her condition, there is no known cure. When she reads a newspaper article that a claimed cure has been discovered in Sweden, she requests the drug from her doctor who informs her that the drug is not legal in the United States and cannot be purchased outside of Sweden. Kathy files a lawsuit in federal court to allow her to purchase and use the drug. The federal district court determines that the case must be suspended and referred to the Food and Drug Administration for initial review and determination. What is the doctrine that the district court justice is following?
A. Determining proper standing
B. Exhaustion of remedies
C. Primary jurisdiction
D. Judicial delegation
E. Judicial review
Answer:
e I think if not I'm sorry
The district court justice's judicial review doctrine. Thus option (C) is correct.
What is court?A court is any person or institution with the jurisdiction to arbitrate legal disputes between parties and administer justice in civil, criminal, and administrative affairs in conformity with the rule of law. A court, often known as a court of law, is a person or group of people with the legal jurisdiction to hear and settle disputes in civil, criminal, ecclesiastical, or military issues.
The District Court handles significant criminal offenses including burglaries, offenses, assaults, serious fraud, commercial theft, and assaults. Additionally, the District Court has unrestricted jurisdiction over claims for damages for personal injury and adjudicates civil claims up to $750,000.
Therefore, Thus option (C) is correct.
Learn more about the court here:
https://brainly.com/question/13375489
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Expansionary monetary policy occurs when: Group of answer choices a central bank acts to decrease the money supply in an effort to stimulate the economy. Congress and the president increase taxes in an effort to stimulate the economy. Congress and the president decrease taxes in an effort to stimulate the economy. a central bank acts to increase the money supply in an effort to stimulate the economy.
Answer: A central bank acts to increase the money supply in an effort to stimulate the economy.
Explanation:
When a country is seeing an expansionary monetary policy, it means that the Central bank in the country is increasing the money supply in order to stimulate the economy and increase aggregate production in the economy.
Increasing money supply would lead to more people having cash which would reduce the cost of borrowing money since everyone now has more savings. As the cost of borrowing is less, more entities borrow for investment which would then lead to increased production and economic growth.
Robert and Mary file a joint tax return for 2020 with adjusted gross income of $34,000. Robert and Mary earned income of $20,000 and $14,000, respectively, during 2020. In order for Mary to be gainfully employed, they pay the following child care expenses for their 4-year-old son, John: Union Day Care Center for John $1,700 Wilma (Robert's mother) for babysitting John $1,000 What is the amount of the child and dependent care credit they should report on their tax return for 2020 (assume no tax liability limitation)
Direct Materials Variances
The following data relate to the direct materials cost for the production of 2,100 automobile tires:
Actual: 58,400 lbs. at $1.95 $113,880
Standard: 56,600 lbs. at $2.00 $113,200
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Price variance $
Quantity variance $
Total direct materials cost variance $
Answer and Explanation:
The computation is given below:
We know that
Direct Material Price variance = (Actual Price - Standard Price) × 58400
= ($1.95 - $2) × 58400
= $2,920 Unfavourable
Direct Material Quantity variance = (Standard Quantity - Actual Quantity) ÷ Standard Price
= (56,600 - 58,400) × 2
= $3,600 Unfavourable
and,
Direct Material Cost variance = Standard Cost - Actual Cost
= $113,200 - $113,880
= $680 Unfavourable
Hemisphere Electric may purchase equipment to manufacture a new line of wireless devices for home appliance control. The first cost of the equipment will be $90,000, and the life of the equipment is estimated to be 6 years with a salvage value of $10,000. Different people in marketing have provided revenue estimates that the devices will generate. The estimates range from a low of $10,000 to a high of $20,000, with an average of $16,000 per year. If the MARR is 7% per year, use PW to determine if these different estimates will change the decision to purchase the equipment.
The present worth of low estimate range is $___.
The present worth of average estimate range is $___.
The present worth of high estimate range is $___.
The $10,000 revenue estimate____to select the purchase.
The $16,000 revenue estimate____the purchase.
The $20,000 revenue estimat____the purchase.
Answer:
hi how are you doing today Jasmine
Droz's Hiking Gear, Inc. has found that its common equity capital shares have a beta equal to 2.5 while the risk-free return is 9 percent and the expected return on the market is 14 percent. It has 7-year semiannual maturity bonds outstanding with a price of $787.22 that have a coupon rate of 8 percent. The firm is financed with $120,000,000 of common shares (market value) and $80,000,000 of debt. What is the after-tax weighted average cost of capital for Droz's, if it is subject to a 30 percent marginal tax rate
Answer:
see explanation
Explanation:
Weighted Average Cost of Capital (WACC) is the cost of a firm from permanent sources of capital pooled together.
WACC = Cost of equity x Weight of equity + Cost of Debt x Weight of Debt + Cost of Preference Stock x Weight of Preference Stock
where,
Cost of equity = Return on Risk free rate + Beta x Risk Premium
= 9.00 % + 2.5 x (14.00 % - 9.00%)
= 21.50 %
Cost of debt :
similar
N = 7 x 2 = 14
p/yr = 2
pmt = ($787.22 x 8%) ÷ 2 =
fv = $787.22 x number of bonds
pv = $80,000,000
Always use the after tax cost of debt :
after tax cost of debt = interest x ( 1 - tax rate)
Which of the following is NOT one of the four factors of production?
1. Entrepreneurship
2. Natural resources
3. Human Resources
4. Production Resources
What function do regulations like the General Data Protection Regulation (GDPR)
serve?
Answer:
This regulation is called the EU General Data Protection Regulation or GDPR, and is aimed at guiding and regulating the way companies across the world will handle their customers' personal information and creating strengthened and unified data protection for all individuals within the EU.
Explanation:
An all equity capitalized firm (i.e., no debt in the capital structure) is expected to produce a cash flow in the amount of $900,000 in its first year of operation. Cash flow is expected to grow at 2% annually for the foreseeable future each year thereafter. If the firm's investors require a 10% return, what is the estimated Market Value of the Firm
Answer:
Explanation:
Cash flow at end of year 1 = $900,000
Growth rate = 2%
Required rate of return = 10%
Estimated Market value = Cash flow at end of year 1 / (Required rate of return - Growth rate}
Estimated Market value = $900,000 / (0.10 - 0.02)
Estimated Market value = $900,000 / 0.08
Estimated Market value = $11,250,000
So, the the estimated Market Value of the Firm is $11,250,000
Flax Co. acquired 80% percent of the voting common stock of Levinson Corp. on January 1, 2021. During the year, Flax made sales of inventory to Levinson. The inventory cost Flax $275,000 and was sold to Levinson for $420,000. Levinson held $84,000 of the goods in its inventory at the end of the year. The amount of intra-entity gross profit for which recognition is deferred, and should therefore be eliminated in the consolidation process at the end of 2021, is: Multiple Choice $23,200. $67,200. $145,000. $116,000. $29,000.
Answer:
$29,000
Explanation:
Calculation to determine what The amount of intra-entity gross profit for which recognition is deferred, and should therefore be eliminated in the consolidation process at the end of 2021, is:
Intra-Entity Gross Profit= ($84,000 ÷ $420,000) *20%
Intra-Entity Gross Profit= ($84,000 ÷ $420,000) *20%
Intra-Entity Gross Profit = $29,000
The 2020 accounting records of Novak Corp. reveal these transactions and events.
Payment of interest $10,000 Collection of accounts receivable $190,100
Cash sales 50,800 Payment of salaries and wages 57,100
Receipt of dividend revenue 18,800 Depreciation expense 16,300
Payment of income taxes 16,900 Proceeds from sale of vehicles 12,100
Net income 38,400 Purchase of equipment for cash 22,800
Payment of accounts payable Loss on sale of vehicles 2,900
for merchandise 115,600 Payment of dividends 14,200
Payment for land 73,300 Payment of operating expenses 28,300
Required:
Prepare the cash flows from operating activities section using the direct method.
Answer:
Statement of Cash Flows (Direct Method)
For Year Ended December 31, 2020
Particulars Amount
Cash Flows from operating activities:
Cash Receipts from:
Customers ($50800+ $190100) $240,900
Dividend Revenue $18,800 $259,700
Less: Cash payments:
For Interest -$10,000
For Income Taxes -$16,900
To suppliers for Merchandise -$115,600
For Salaries and wages -$57,100
For Operating Expenses -$28,300 -$227,900
Net Cash provided by operating activities $31,800
Statement Of Owner's Equity Jay Pembroke started a business in April. Prepare a Statement of Owner's Equity using the following balances for April transactions. Cash $12,165 Accounts Receivable 1,811 Office Supplies 4,747 Prepaid Insurance 1,492 Accounts Payable 346 Jay Pembroke, Capital 17,536 Jay Pembroke, Drawing 100 Service Fees 3,033 Rent Expense 600 You will need to calculate the net income for April.
Answer:
$2,433
Explanation:
Net Income = Sales - Expenses
where,
Sales = $3,033
and
Expenses = $600
therefore,
Net Income = $3,033 - $600 = $2,433
Onslow Co. purchases a used machine for $240,000 cash on January 2 and readies it for use the next day at an $10,000 cost. On January 3, it is installed on a required operating platform costing $2,000, and it is further readied for operations. The company predicts the machine will be used for six years and have a $28,800 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.
1. Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is used for all costs incurred.
Record the the costs of $10,000 cash incurred on the used machine
Record the costs of $2,000 for an operating platform
2
2. Prepare journal entries to record depreciation of the machine at December 31.
(a) Its first year in operation.
(b) The year of its first disposal
Answer:
A. 2-Jan
Dr Machinery $240,000
Cr Cash $240,000
3-Jan
Dr Machinery $10,000
Cr Cash $10,000
3-Jan
Dr Machinery $2,000
Cr Cash $2,000
B. Dec 31
Dr Depreciation expense- machinery $37,200
Cr Accumulated Depreciation- machinery $37,200
Dec 31
Dr Depreciation expense- machinery $37,200
Cr Accumulated Depreciation- machinery $37,200
Explanation:
A. Preparation of the journal entries to record the machine's purchase and the costs to ready and install it
2-Jan
Dr Machinery $240,000
Cr Cash $240,000
(Being machinery purchased)
3-Jan
Dr Machinery $10,000
Cr Cash $10,000
(Being expenses paid for machinery readies)
3-Jan
Dr Machinery $2,000
Cr Cash $2,000
(Being installation charges paid)
B. Preparation of journal entries to record depreciation of the machine at December 31.
Dec 31
Dr Depreciation expense- machinery $37,200
Cr Accumulated Depreciation- machinery $37,200
[($252,000 - $28,800) / 6]
($240,000+$10,000+$2,000=$252,000)
Dec 31
Dr Depreciation expense- machinery $37,200
Cr Accumulated Depreciation- machinery $37,200
[($252,000 - $28,800) / 6]
Consider the following $1000 par value zero-coupon Treasury bonds: Bond Years to Maturity Yield to Maturity A 1 4.00% B 2 4.50% C 3 5.11% D 4 5.86% E 5 6.25% The expected 2-year interest rate three years from now should be __________. Enter your answer in percent to the nearest hundredth, for example if your answer is .25432, enter 25.43.
Answer: 7.98%
Explanation:
This deals with spot rates and forward rates. The 2 year interest rate three years from now is the 2 year forward rate, 3 years from now.
It can be calculated through the relationship below:
(1 + 5 year spot rate)⁵ = (1 + third year spot rate)³ * (1 + 2 year forward rate)²
(1 + 6.25%)⁵ = (1 + 5.11%)³ * (1 + 2 year forward rate)²
1.35408 = 1.161267 * (1 + 2 year forward rate)²
(1 + 2 year forward rate)² = 1.35408 / 1.161267
1 + 2 year forward rate = √1.16603675
2 year forward rate = √1.16603675 - 1
= 7.98%
At a price of $35, there would be Select one: a. excess demand, and the price would tend to fall from $35 to a lower price. b. a shortage, and the price would tend to rise from $35 to a higher price. c. excess supply, and the price would tend to fall from $35 to a lower price. d. a surplus, and the price would tend to rise from $35 to a higher price.
Answer: c. excess supply, and the price would tend to fall from $35 to a lower price.
Explanation:
At $35 there is excess supply because this is a price that most consumers are not willing to pay but most suppliers are willing to sell.
Supply at $35 = 600
Quantity demanded at $35 = 200
This would lead to prices falling as suppliers try to sell the excess supply. The prices would ideally keep falling till the equilibrium price is reached which is $25. At this point, the quantity demanded and supplied will be equal to each other.
The Lunch Counter is expanding and expects operating cash flows of $32,500 a year for seven years as a result. This expansion requires $28,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $2,800 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 14 percent
Answer:
$109,688.89
Explanation:
According to the scenario, computation of given data are as follows,
Formula for Net present value are as follows,
NPV = -Investment in fixed asset - Net working Capital + Operating cashflow × ( 1 - [tex](1+r)^{-n}[/tex]) ÷ r + Net working capital ×[tex](1+r)^{-n}[/tex]
Where, r = rate of return
n = number of years
By putting the value, we get
NPV = -28,000 - 2,800 + 32,500 × ( 1 - [tex](1+0.14)^{-7}[/tex]) ÷ 0.14 + 2,800 × [tex](1+0.14)^{-7}[/tex]
By solving the above equation, we get
NPV = $109,688.89
When a partnership is formed, assets contributed by the partners should be recorded on the partnership books at their: Group of answer choices fair market value at the time of the contribution. assessed values for property tax purposes. original costs to the partner contributing them. book values on the partners' books prior to their being contributed to the partnership.
Answer:
When a partnership is formed, assets contributed by the partners should be recorded on the partnership books at their:
fair market value at the time of the contribution.
Explanation:
This fair market value of the assets contributed by each partner provides the best measurement value at which assets contributed in a partnership should be recorded. The asset class is debited while the partner's capital account is credited with this fair market value and not the book or cost value.
The following information relates to the only product sold by Harper Company. Sales price per unit $ 45 Variable cost per unit 27 Fixed costs per year 247,000 a. Compute the contribution margin ratio and the dollar sales volume required to break even. b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars).
Answer and Explanation:
The computation is shown below
a.
For Contribution Margin ratio
We know that
Contribution margin per unit = Sale price per unit - Variable cost per unit
= $45 - $27
= $18
Now
Contribution margin ratio = Contibution Margin per unit ÷ Sale price per unit
= $18 ÷ $45
= 0.4
Now
Break even sales dollar
Break even sales = Fixed Cost ÷ Contribution margin ratio
= $247,000 ÷ 0.4
= $617,500
b.
For Margin of Safety
The Margin of safety = Actual sales - Break Even Sales
where,
Actual sales(in $) = 20000 × 45
= $900,000
So, Margin of safety is
= $900,000 - $617,500
= $282,500
what's the meaning of GDP?
what's the meaning of GDP?
It means Gross domestic product.
Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.
Gross domestic product tracks the health of a country's economy. It represents the value of all goods and services produced over a specific time period within a country's borders. ... Investors can use GDP to make investments decisions—a bad economy means lower earnings and lower stock prices.
Raymond has a complex question. He would like to use the database to answer the question. He should__
conduct a search
complete a questionnaire
sort
conduct a query
Answer:
conduct a query.
Explanation:
I think it's between search and query.
For Year 2, the Sacramento Corporation had beginning and ending Retained Earnings balances of $179,225 and $199,900, respectively. Also during Year 2, the board of directors declared cash dividends of $19,900, which were paid during Year 2. The board also declared a stock dividend, which was issued and required a transfer in the amount of $15,500 to paid-in capital. Total expenses during Year 2 were $36,916. Based on this information, what was the amount of total revenue for Year 2
Answer:
$92,991
Explanation:
The computation of the amount of total revenue is shown below;
As we know that
Ending retained earnings = Beginning retained earning - dividend + net income
$199,900 = $179,225 - $19,900 - $15,500 + net income
So, the net income is $56,075
Now the total revenue is
= Net income + expense
= $56,075 + $36,916
= $92,991
The Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department had 3,840 liters in beginning work in process inventory (30% complete). During the period 64,880 liters were completed. The ending work in process was 5,160 liters (70% completed). All inventories are costed by the first-in, first-out method. What is the total equivalent units for direct materials (using the FIFO method) if materials were added at the beginning of the process
Answer:
Total equivalent units of materials = 64,652
Explanation:
Equivalent units are useful to apportion cost between work in progress and completed units. They are notional whole units which represent incomplete work
Equivalent Units = Degree of work completed (%) × inventory units
Fully worked = 64,880- 3,840= 61,040
Items units workings Equivalent units
Opening inventory 3,840 3840× 70% = 2,688
Fully worked 61,040 61,040× 100 = 61,040
Closing WIP 5,160 5,160× 70% = 3,612
Total equivalent units of materials 64,652
Total equivalent units of materials =64,652
COLUMN A
COLUMN B
1.1.1 The tenant has paid R45 500, which includes rent | A Materiality
for one month of the following year. Only
R42 000 is recorded in the Income Statement.
1.1.2 Although the cost prices of the stock items are B Prudence
fluctuating the stock is recorded at cost,
assuming that it will be sold some time in future
1.1.3 The partners' salaries must be reflected
Matching
separately from salaries and wages
1.1.4 Land and building is recorded at the original D Going-
B purchase price of RI 200 000
concern
1.1.5 Money lost due to theft of stock is written off even | E historical cost
though there is a possibility that it may be
recovered in future
A recovered in future
Answer:
a
Explanation:
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On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances:
Accounts Debit Credit
Cash $ 24,300
Accounts Receivable 5,700
Supplies 3,600
Land 55,000
Accounts Payable $ 3,700
Common Stock 70,000
Retained Earnings 14,900
Totals $ 88,600 $88,600
During January 2021, the following transactions occur:
January 2 Purchase rental space for one year in advance, $7,500 ($625/month).
January 9 Purchase additional supplies on account, $4,000.
January 13 Provide services to customers on account, $26,000.
January 17 Receive cash in advance from customers for services to be provided in the future, $4,200.
January 20 Pay cash for salaries, $12,000.
January 22 Receive cash on accounts receivable, $24,600.
January 29 Pay cash on accounts payable, $4,500.
The following information is available on January 31.
Rent for the month of January has expired.
Supplies remaining at the end of January total $3,300.
By the end of January, $3,575 of services has been provided to customers who paid in advance on January 17.
Unpaid salaries at the end of January are $5,450.
1. Record the purchase of rental space for one year in advance, $7,500 ($625/month).
2. Record the purchase of additional supplies on account, $4,000.
3. Record the providing of services to customers on account, $26,000.
4. Record the receipt of cash in advance from customers for services to be provided in the future, $4,200.
5. Record the payment of cash for salaries, $12,000.
6. Record the receipt of cash on accounts receivable, $24,600.
7. Record the payment of cash on accounts payable, $4,500.
8. Record the adjusting entry for rent. Rent for the month of January has expired.
9. Record the adjusting entry for supplies. Supplies remaining at the end of January total $3,300.
10. Record the adjusting entry for services provided to customers who paid in advance. By the end of January, $3,575 of services has been provided to customers who paid in advance on January 17.
11. Record the adjusting entry for salaries payable. Unpaid salaries at the end of January are $5,450.
12. Record the entry to close the revenue accounts.
13. Record the entry to close the expense accounts
Answer:
Dynamite Fireworks
1. January 2
Debit Prepaid Rent $7,500
Credit Cash $7,500
To record the purchase of rental space in advance ($625/month).
2. January 9
Debit Supplies $4,000
Credit Accounts Payable $4,000
To record the purchase of additional supplies on account.
3. January 13
Debit Accounts Receivable $26,000
Credit Service Revenue $26,000
To record the provision of services to customers on account.
4. January 17
Debit Cash $4,200
Credit Deferred Revenue $4,200
To record the receipt of cash in advance for future services.
5. January 20
Debit Salaries Expense $12,000
Credit Cash $12,000
To record the payment of salaries.
6. January 22
Debit Cash $24,600
Credit Accounts Receivable, $24,600
To record the receipt of cash on account.
7. January 29
Debit Accounts Payable, $4,500
Credit Cash $4,500
To record the payment on account.
Adjustments on January 31.
8. Debit Rent Expense $625
Credit Prepaid Rent $625
To record the rent expense for January.
9. Debit Supplies Expense $4,300
Credit Supplies $4,300
To record the supplies expense for January.
10. Debit Deferred Revenue $3,575
Credit Service Revenue $3,575
To record revenue for services provided.
11. Debit Salaries Expense $5,450
Credit Salaries Payable $5,450
To accrue unpaid salaries at the end of January.
12. Debit Service Revenue $29,575
Credit Income Summary $29,575
To close the revenue account to the income summary.
13. Debit Income Summary $22,375
Credit:
Salaries Expense $17,450
Rent Expense $625
Supplies Expense $4,300
To close the expense accounts to the income summary.
Explanation:
a) Data and Calculations:
Accounts Debit Credit
Cash $ 24,300
Accounts Receivable 5,700
Supplies 3,600
Land 55,000
Accounts Payable $ 3,700
Common Stock 70,000
Retained Earnings 14,900
Totals $ 88,600 $88,600
Transactions and Analysis:
January 2 Prepaid Rent $7,500 Cash $7,500 ($625/month).
January 9 Supplies $4,000 Accounts Payable $4,000
January 13 Accounts Receivable $26,000 Service Revenue $26,000
January 17 Cash $4,200 Deferred Revenue $4,200
January 20 Salaries Expense $12,000 Cash $12,000
January 22 Cash $24,600 Accounts Receivable, $24,600
January 29 Accounts Payable, $4,500 Cash $4,500
Adjustments on January 31.
Rent Expense $625 Prepaid Rent $625
Supplies Expense $4,300 Supplies $4,300
Deferred Revenue $3,575 Sales Revenue $3,575
Salaries Expense $5,450 Salaries Payable $5,450
A study by the Environmental Protection Agency looked at the costs and benefits of the Clean Air Act from 1970 to 1990. This study found that a middle-range estimate of health and other benefits of cleaner air were valued at $22 trillion. This amount was about __________________ than the costs of reducing pollution, which was around $500 billion, in the same period.
Answer: d. 44 times higher
Explanation:
The benefits of cleaner air was $22 trillion and the cost of reducing pollution was $500 billion.
The number of times that you would have to multiply this cost of reducing pollution to get to the benefits of cleaner air is:
= 22 trillion / 500 billion
= 22,000 billion / 500 billion
= 44 times higher
Lucci Inc. is a retailing firm specializing in high-end merchandise. Each of Lucci's stores uses the retail inventory method by applying the average-LCM alternative. The information below pertains to one department within its Scottsdale, Arizona store. You will use this information to determine ending inventory and cost of goods sold for financial reporting purposes. Assume no inventory shrinkage, and a periodic inventory system.
Beginning inventory of merchandise
Cost, $40,000
Retail, $360,000
Purchases during the period
Cost, $1,000,000
Retail, $10,000,000
Transportation in, $50,000
Transportation out, $32,000
Purchase returns
Cost, $20,000
Retail, $196,000
Net additional markups, $800,000
Net markdowns, $500,000
Sales, $9,800,000
Using the information above, compute the amounts to be reported in the financial statements for ending inventory and cost of goods sold for the department. The spreadsheet below has been started for you. Line items have been entered in column A. In columns B and C, enter appropriate amounts as well as intermediate subtotals directly below the amounts leading to the subtotal. Include the cost to retail calculation as well as your two amounts for financial statement reporting. Round the cost to retail ratio to four decimal places and include the "0" preceding the decimal point. Enter 0 where no other entry is appropriate.
A1 lock copy cut paste
A B C
1 Line Item Description Cost Retail
2 Beginning inventory $40,000
3 Purchases
4 Transportation in
5 Purchases returns
6 Net purchases
7 Net additional markups
8 Cost to retail ratio components
9 Net markdowns
10 Sales
11 Ending inventory, retail
12 Set up Calculation
13 Cost to retail ratio
14 Ending inventory, cost
15 Cost of goods sold
Answer:
1 Line item description Cost Retail
2 Beginning inventory 40000 360000
3 Purchases 1000000 10000000
4 Transportation in 50000
5 Purchase returns -20000 -196000
6 Net purchases(3+4+5) 1030000 9804000
7 Net additional markups 800000
8 Cost to retail ratio 1070000 10964000
component(2+6+7)
9 Net markdowns -500000
10 Sales -9800000
11 Ending inventory,retail(8+9+10) 664000
Setup calculation:
Cost to retail ratio = Cost to retail ratio component at cost/Cost to retail ratio component at retail
= 1070000/10964000
= 0.097592
= 9.76%
Ending inventory,cost = Ending inventory,retail*Cost to retail ratio
= 664000*9.76%
= $64806
Cost of goods sold = Sales*Cost to retail ratio
= 9800000*9.76%
= $956480