Answer:
Saludable Company
Consumption Ratios= Amount of Activity per driver /Total Driver Quantity
Scented Cards Regular Cards Total
A B C
Inspection hours 1,080 720 1800
Setup hours 420 180 600
Machine hours 960 2,880 3840
Number of moves 2,880 720 3600
Consumption Ratios
Scented Cards Regular Cards
A/ C B /C
Inspection hours 1,080/1800 720/1800
0.6 0.4
Setup hours 420/600 180/600
0.7 0.3
Machine hours 960/3840 2,880/3840
0.25 0.75
Number of moves 2,880/3600 720/3600
0.8 0.2
2. Diverse products consume activities in different amounts. When they are different product line with diversification the product cost may vary than the actual costs IF ABC is not used. ABC helps removal of un necessary amounts allocated and assigns actual costs incurred.
The Scented cards are more costly than the Regular card. If machine hours are used as the only driver,Scented cards cards would receive 21% of the overhead, and Regular cards would receive 79% of the overhead. This shows that Scented cards are under costed and Regualr Cards are over costed if ABC is not used.
3. Activity Rate= Activity Cost/ Cost Driver
Activity
Inspecting products /Inspection hours= $45,000/1800= 25 $ per inspection hour
Setting up equipment/Setup hours= 28,500/600= $ 47.5 per setup hour
Machining/Machine hours = 30,720/3840 = $8 per machine hour
Moving materials /Number of moves=16,200/3600 = $ 4.5 per move
4. Activity Rate= Activity Cost/ Cost Driver
$ 20= $ 45000/ Hours
Hours = $ 45000/20 = 2250 inspection hours are expected for the coming year.
On November 1, 2017, Rodgers Enterprises sold merchandise with a cost of $7,000 for $25,000, FOB destination, with payment terms of 2/10, n/40. The company paid transportation costs of $100. Customer returns on this sale were $5,000 (with a cost of $2,500). The merchandise was returned on November 6. The company received the payment for the balance amount on November 10, 2017. Calculate the net sales revenue. Group of answer choices $19,600 $20,000 $4,500 $20,100
Answer:
The net sales revenue is $19,600
Explanation:
In order to calculate the net sales revenue we would have to make the following calculation:
Net Sales Revenue=Sales Revenue-Sales Returns and Allowances-Sales Discounts
Sales Revenue=$25,000
Sales Returns and Allowances= $5,000
Sales Discounts [($25,000-$5,000)*2%]= $400
Net Sales Revenue=$25,000-$5,000 -$400
Net Sales Revenue=$19,600
The net sales revenue is $19,600
Pablo Management has two employees, each of whom earns $120 per day. They are paid on Fridays for work completed Monday through Friday of the same week. Near year-end, the two employees worked Monday, December 31, and Wednesday through Friday, January 2, 3, and 4. New Year’s Day (January 1) was an unpaid holiday. Prepare the year-end adjusting entry for wages expense and record payment of the employees’ wages on Friday, January 4.
Answer:
December 31:
To record accrued wages for one day : (2 workers × $120) =$240
January 4:
To record accrued and current wages.
Wages expenses = 2 workers × 3 days × $120 =$720
Cash =2 workers × 4 days ×$120= $960
Balance=$240
1.)December 31
Wages expenses $240
Wages payable $240
2.)January 4 General Journal
Wages payable $240 (Debit)
Wages expenses $720 (Credit)
Cash $960
The Bensington Glass Company entered into a loan agreement with the firm's bank to finance the firm's working capital. The loan called for a floating rate that was 25 basis points (0.25 percent) over an index based on LIBOR. In addition, the loan adjusted weekly based on the closing value of the index for the previous week and had a maximum annual rate of 2.24 percent and a minimum of 1.71 percent. Calculate the rate of interest for weeks 2 through 10.
As the data in incomplete, lets consider the data found on the net for the same question
DATE LIBOR
week 1 1.98%
week 2 1.64%
week 3 1.54%
week 4 1.31%
week 5 1.57%
week 6 1.69%
week 7 1.66%
week 8 1.94%
week 9 1.92%
(This data in not given in the question. If some values differ from this data, just change the that value in the method below and you'll get your answer)
Answer:Floating rate = 0.25%
Maximum rate = 2.24%
Minimum rate = 1.71%
General formula for for finding rate of interest of a week
Week Rate = Previous Week's Rate (LIBOR from table) + Floating Rate
Lets find the values:
Week 2 rate = Week 1 rate + 0.25% = 1.98% + 0.25% = 2.23%
Week 3 rate = Week 2 rate + 0.25% = 1.64% + 0.25% = 1.89%
Week 4 rate = Week 3 rate + 0.25% = 1.54% + 0.25% = 1.79%
Week 5 rate = Week 4 rate + 0.25% = 1.31% + 0.25% = 1.56%
Week 5 rate is lower than the minimum rate, rate of Week 5 can be taken as minimum rate
Week 5 rate = 1.71%
Week 6 rate = Week 5 rate + 0.25% = 1.57% + 0.25% = 1.82%
Week 7 rate = Week 6 rate + 0.25% = 1.69% + 0.25% = 1.94%
Week 8 rate = Week 7 rate + 0.25% = 1.66% + 0.25% = 1.91%
Week 9 rate = Week 8 rate + 0.25% = 1.94% + 0.25% = 2.19%
Week 10 rate = Week 9 rate + 0.25% = 1.92% + 0.25% = 2.17%
Question 8 (2 points)
Which level of critical thinking have you reached when you are able to recall
something you know about the subject matter at hand?
a) Comprehension
b) Analysis
c) Knowledge
d) Application
Answer:
d) Application
Explanation:
Critical thinking can be defined as the ability of an individual to establish clear and reflective thinking on any subject, whose focus is on making their own decisions and finding out what they want to believe in, rather than just accepting what they see or it is heard as an absolute truth.
Therefore, the most appropriate alternative to this question, about what is the level of critical thinking achieved when you can remember
something you know about a subject, is the application level.
Applying information occurs when a person makes use of information previously learned and understood, therefore the application of information on a new subject, helps in transferring solutions from one problem to solving another problem.
On October 1, 2018, Iona Bell Co. issued stock options for 300,000 shares to a division manager. The options have an estimated fair value of $3 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 6% in three years. Bell initially estimates that it is not probable the goal will be achieved, but then after one year, Bell estimates that it is probable that divisional revenue will increase by 6% by the end of 2020. Bell will:
a. record compensation expense of zero in 2019 and in 2020
b. record compensation expense of $300,000 in 2019 and $300,000 in 2020.
c. record compensation expense of $450,000 in 2019 and $450,000 in 2020.
d. record compensation expense of $600,000 in 2019 and $300,000 in 2020.
Answer: d. record compensation expense of $600,000 in 2019 and $300,000 in 2020.
Explanation:
In 2019, with 2 years left on the on the incentive, the Iona Bell's estimate has changed from not believing that the target could be reached to believing that it could.
This will move their estimate for Compensation from 0 in 2018 to (300,000 * $3) $900,000 at the end of 2020.
They will have to account for it across the 2 remaining years.
In 2019, with 2 years out of 3 elapsed, they will apportion it in this manner ,
= 900,000 * 2/3 - $0 (previous year's estimate)
= 600,000 - 0
= $600,000
In 2020 with the third year elapsed, they will apportion it as such,
= 900,000 * 3/3 - $600,000 (previous year's estimate)
= $300,000
The correct option is therefore Option D.
Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $325,000 and machine hours to be 25,000. Actual manufacturing overhead and machine hours were $372,000 and 26,000, respectively. Required: 1. Compute the predetermined overhead rate. 2. Compute applied manufacturing overhead. 3. Compute over- or underapplied manufacturing overhead.
Answer:
Instructions are below.
Explanation:
Giving the following information:
The estimated total overhead= $325,000
Estimated machine hours= 25,000
Actual manufacturing overhead and machine hours were $372,000 and 26,000, respectively.
First, we need to calculate the predetermined manufacturing overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 325,000/25,000
Predetermined manufacturing overhead rate= $13 per machine-hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 13*26,000= $338,000
Finally, we determine the under/over allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 372,000 - 338,000= $34,000 underallocated
What are Google’s key policies and actions that help it reduce its environmental footprint? How does the company integrate the idea of creating a "better web that’s better for the environment" with its strategies for creating profit and value. How do these initiatives help build competitive advantage for Google?
Explanation:
Google is a multinational that provides a range of online products and services, such as ads, search engines and cloud computing.
As one of the largest companies in the world, Google has a responsibility to attest to important values for today's society, such as sustainability.
The company develops several ecological programs that use resources to support renewable energy, in addition to reducing the use of carbon, which makes sustainability one of the essential prerequisites for the company's operations.
These good environmental protection practices bring several competitive benefits to Google, as the company becomes better positioned with consumers and investors, which suggests a gain in greater market share and reliability.
On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available: Beginning inventory, January 1: $4,700 Net sales: $76,000 Net purchases: $74,000 The company's gross margin ratio is 20%. Using the gross profit method, the estimated ending inventory value would be:
Answer:
The estimated ending inventory by the gross profit method is $19,900
Explanation:
In order to calculate the estimated ending inventory value we would have to calculate first the following:
Step 1- Calculating Gross profit:
Gross profit ratio = Gross profit/ Sales
20% = Gross profit/ $76,000
Gross profit = $76,000 x 20%
Gross profit = $76,000 x 20%
Gross profit = $15,200
Step 2- Calculating Cost of Goods sold (COGS):
Sales - COGS = Gross profit
$76,000 - COGS = $15,200
COGS = $76,000 - $15,200
COGS = $60,800
Step 3- Calculating Ending Inventory:
COGS = Beginning inventory + Inventory purchases - Ending inventory
$60,800 = $4,700 + $76,000 - Ending inventory
$60,800 = $80,700 - Ending inventory
Ending inventory = $80,700 -$60,800
Ending inventory = $19,900
Therefore, the estimated ending inventory by the gross profit method is $19,900.
Firm A and Firm B are the only two companies that sell mail-order DVD rental subscriptions. For several years, Firm A priced its subscriptions below average variable cost. Firm B tried to compete by also selling subscriptions below average variable cost, but went bankrupt and exited the market. Several months after Firm B exited the market, Firm A raised prices by 40 percent and is currently earning large, positive economic profits. Based only on this information, an argument can be made that:____________.
A. the mail-order DVD rental subscription market is a monopolistically competitive market.
B. Firm A engaged in predatory pricing.
C. Firm B must have made bad business decisions because it went bankrupt.
D. Firm B engaged in predatory pricing.
E. FirmA and Firm B must have had a collusive agreement
Answer:
B. Firm A engaged in predatory pricing.
Explanation:
Since Firm A and B are the only two companies that sell this good
Firm A decided to price its subscriptions below average variable cost that is it lowered it's prices which made Firm B to also lower it's own, but they went bankrupt and exited the market. Firm A then raised prices by 40% and is currently earning large, positive economic profits.
Based on this, Firm A engaged in predatory pricing.
Predatory pricing is a marketing or pricing strategy that has to do with lowering the cost of goods and services for a short-term, in order to make competitors lower their price, making them to go bankrupt in the process and thereby exiting the market.
Assume a $1,000 face value bond has a coupon rate of 8.5 percent, pays interest semi-annually, and has an eight-year life. If investors are willing to accept a 10 percent rate of return on bonds of similar quality, what is the present value or worth of this bond
Answer:
Explanation:
In order to calculate he present value or worth of this bond we woulñd have to make the following calculations:
Face value (FV) $ 1,000.00
Coupon rate 8.50%
Number of compounding periods per year 2
Interest per period (PMT) $ 42.50
Number of years to maturity 8
Number of compounding periods till maturity (NPER) 16
Market rate of return/Required rate of return per period (RATE) 5.00%
Therefore, Bond price= PV(RATE,NPER,PMT,FV)*-1
Bond present worth=$918.72
The present value or worth of this bond is $918.72
The present value of this bond is $572.
Data and Calculations:
N (# of periods) = 16 (8 years x 2) or semi-annually
I/Y (Interest per year) = 8.5%
PMT (Periodic Payment) = 50
Face Value of bond = $1,000
Acceptable rate of return = 10%
Semi-annual interest = $50 ($1,000 x 10% x 1/2)
Results:
The present value of the bond = $572.02
The sum of periodic payments = $800.00 ($50 x 16)
Total Interest = $227.98
Thus, the present value of the bond is $572.
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Steinberg Corporation and Dietrich Corporation are identical firms except that Dietrich is more levered. Both companies will remain in business for one more year. The companies' economists agree that the probability of the continuation of the current expansion is 80 percent for the next year and the probability of a recession is 20 percent. If the expansion continues, each firm will generate earnings before interest and taxes (EBIT) of $3.5 million. If a recession occurs, each firm will generate earnings before interest and taxes (EBIT) of $1.9 million. Steinberg's debt obligation requires the firm to pay $980,000 at the end of the year. Dietrich's debt obligation requires the firm to pay $2 million at the end of the year. Neither firm pays taxes. Assume a discount rate of 10 percent.
a. What is the value today of Steinberg's debt and equity?
b. What is the value today of Dietrich's debt and equity?
c. Steinberg’s CEO recently stated that Steinberg’s value should be higher than Dietrich’s because the company has less debt and therefore less bankruptcy risk. Do you agree or disagree with this statement?A. DisagreeB. Agree
Answer:
a. What is the value today of Steinberg's debt and equity?
$2,890,909b. What is the value today of Dietrich's debt and equity?
$2,890,909c. Steinberg’s CEO recently stated that Steinberg’s value should be higher than Dietrich’s because the company has less debt and therefore less bankruptcy risk. Do you agree or disagree with this statement?
A. Disagree: a company's value is determined by by its operating income (EBIT), not by there capital structure (M&M theory).Explanation:
economic expansion 80% chance, EBIT $3.5 million
economic recession 20% chance, EBIT $1.9 million
expected EBIT = (3.5 x 0.8) + (1.9 x 0.2) = $2.8 million + $0.38 million = $3.18 million
Steinberg's debt obligations $980,000 at the end of next year
Dietrich's debt obligations $2,000,000 at the end of next year
total company value = $3.18 million / (1 + 10%) = $2,890,909
If your company’s product is dry soup mixes and canned soups, would a multidomestic strategy, a transnational strategy, or a global strategy seem to be more advisable? Multiple Choice transnational strategy since processed food companies compete in two or more countries simultaneously multidomestic strategy since customer needs and preferences vary greatly in the soup industry A transnational approach is appropriate. Country-to-country customization to accommodate differences in taste preferences is necessary. multidomestic as local market conditions preclude a uniform, coordinated worldwide strategic approach global strategy since local managers need little latitude in decision-making
Answer:
A transnational approach is appropriate. Country-to-country customization to accommodate differences in taste preferences is necessary.
Explanation:
When selling a product in the international market place between different countries or communities, three approaches can be used.
The transnational, multidomestic and the global strategy.
Global strategy is when a product is not modified but rather same product and service is sold to different countries.
Transnational approach involves modification of the product to meet a countrie's peculiar needs. It is more personalised.
In this scenario the transnational approach is better because not everyone will have same preference of soup.
Customising soups to meet varied needs will make it sell more.
For the year ending December 31, 2020, Monty Corp. reports net income $130,000 and cash dividends $81,000. Determine the balance in retained earnings at December 31 assuming the balance in retained earnings on January 1, 2020, was $215,000. (List items that increase retained earnings first.)
Answer:
The balance in retained earnings at December 31 is $264,000.00
Explanation:
The balance in retained earnings at December 31 can be computed using the below ending retained earnings formula:
ending retained earnings=beginning retained earnings+net income-dividends
beginning retained earnings was the opening balance of retained earnings at January 1 2020 which was $215,000
net income for the year is $130,000
dividends of $81,000 were paid
ending retained earnings=$215,000+$130,000-$81,000=$ 264,000.00
Which type of supply chain structure tends to minimize the risk of catastrophic supply chain quality risks, similar to the kind Mattel experienced with lead paint in toys:__________.
A) A relational value chain
B) A price driven market mechanism
C) A vertically integrated supply chain
D) A modular value chain
Answer:
The correct answer is the option C: A vertically integrated supply chain.
Explanation:
To begin with, a vertically integrated supply chain is the one that the companies choose in order to have a higher management over the whole supply chain and that is because the principal company who uses that strategy is the one who will give the orders and manage the other firms of the supply chain with the purpose of establishing better results by avoinding catastrophic risks that can happen. That is why, a vertically integrated supply chain tends to minimize the risks inside the chain.
During 2017, Eaton Co. introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to dollar sales are 4% within 12 months following sale and 6% in the second 12 months following sale. Sales and actual warranty expenditures for the years ended December 31, 2017 and 2018 are as follows:
Actual Warranty
Sales Expenditures
2017 $ 400,000 $8,000
2018 600,000 14,000
$1,000,000 $22,000
At December 31, 2018, (assuming the accrual method) what amount should be reported as an estimated warranty liability?
Why are warranties recorded as an expense in the year of the sale, i.e., what accounting principle applies?
Answer:
1. $82,000
2. Accrual / Matching Principle
Explanation:
The two year warranty against defects is known as an Assurance Type Warranty.
With Assurance Type Warranty, there is no option on the customer to take the warranty or not. Therefore this is not a separate performance obligation.
Assurance Type Warranty are accounted for in terms of IAS 37 Provisions.
At December 31, 2018, the Warranty Expense is calculated as follows :
Sales 2017 : $ 400,000 × 6% = $ 24,000
Sales 2018 : $ 600,000 × 12% = $ 72,000
Total = $ 96,000
Journal
Warranty Expense $ 96,000 (debit)
Warranty Provision $ 96,000 (credit)
When Warranty Claim is Subsequently received in 2018 the entries will be as follows :
Journal
Warranty Provision $14,000 (debit)
Cash $14,000 (credit)
Thus Warranty Liability will be : $ 96,000 - $14,000 = $82,000
Mallory Furniture buys two products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 100 cubic feet of storage space, and each medium shelf costs $300 and requires 90 cubic feet of storage space. The company has $75,000 to invest in shelves this week, and the warehouse has 18,000 cubic feet available for storage. Profit for each big shelf is $300 and for each medium shelf is $150. a) Which of the following is not a feasible purchase combination? A) 0 big shelves and 200 medium shelves B) 0 big shelves and 0 medium shelves C) 150 big shelves and 0 medium shelves D) 100 big shelves and 100 medium shelves
Answer:
The answer is D
Explanation:
Solution:
Recall that:
Malloy Furniture purchases two products: Big shelves B and Medium shelves M
The cost of big shelf is =$500
The space required = 100 cubic feet
The cost of each medium shelf is =$300
Storage space = 90 cubic feet,
Now,
Since the values 100 and 90 is greater than 18000 cubic feet available for storage, what is required would be 100 big shelves and 100 medium shelves
Mack's Bar sent Olive Outlet an order for 200 cases of olives to be shipped "as soon as possible." The day Olive Outlet receives Mack's order, it does not have 200 cases of olives in stock, so it sends Mack's Bar 140 cases of olives and 60 cases of onions. Olive Outlet notifies Mack's Bar that they are shipping the onions in lieu of olives. Later that day, Mack's Bar phones Olive Outlet and tries to revoke the offer. According to the Uniform Commercial Code (UCC), which of the following statements holds true to this situation?
A. Olive Outlet has accepted and breached the contract.
B. Mack's Bar must reject the shipment as the goods are nonconforming.
C. Mack's Bar must accept the shipment as they were notified.
D. Olive Outlet's shipment is considered a counteroffer.
business-law
Answer:
D) Olive Outlet's shipment is considered a counteroffer.
Explanation:
Depending on how Mack reacts to Olive's shipment, this can be considered either:
A. Olive Outlet has accepted and breached the contract. D. Olive Outlet's shipment is considered a counteroffer.Since Mack simply decided to reject Olive's shipment and revoke their initial offer, Olive's actions would be considered a counter offer. Olive did not have to accept Mack's offer in first place since an order to promptly ship goods invites the seller to ship the goods promptly or promise to do so as soon as possible. Olive did not have to ship the goods, since no contract was made.
Since Olive decided to ship other goods, it can be considered a counter offer which Mack is free to accept or reject. Since he chose to reject it, there is nothing Olive can do about it.
New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $5.30 per share exactly 9 years from today. After that, the dividends are expected to grow at 3.9 percent forever. If the required return is 12.1 percent, what is the price of the stock today?
Answer:
The multiple choices are:
$64.63 '
$23.12
$30.24
$47.59
$25.92
The correct option is $25.92
Explanation:
The price of the stock today is the present of dividend of $5.30 payable in nine years' time and present value of the dividend terminal value:
present of dividend=dividend/discount factor
where discount factor=(1+r)^n
r is the required rate of return of 12.1%
n is the number of years which is 9
present value of dividend=$5.30/(1+12.1%)^9=$ 1.90
Terminal value=dividend*(1+g)/(r-g)
g is the dividend growth rate of 3.9%
r is the required return of 12.1%
terminal value=$5.3*(1+3.9%)/(12.1%-3.9%)=$ 67.15
Present value of terminal value=$ 67.15/(1+12.1%)^9=$ 24.02
Sum of both present values=$ 24.02 +$1.90=$25.92
You were left $100,000 in a trust fund set up by your grandfather. The fund pays 6.5% interest. You must spend the money on your college education, and you must withdraw the money in 4 equal installments, beginning immediately. How much could you withdraw today and at the beginning of each of the next 3 years and end up with zero in the account
Answer:
The answer is 27,408.71
Explanation:
Solution
Recall that:
You were left with a trust fund of =$100,00
Interest rate = 6.5%
Money with drawled = 4 installments
Now,
The step to take is to find you could withdraw currently at the start of each of the next 3 years with a zero account to end up with.
Now,
100, 00 = X (1 - (1.065)^-4/.065/1.065
We now solve for X
Thus
X =7,408.71
By applying or using a financial calculator
We arrange it to an annuity due setting - [2nd] [BGN] then [2nd] [Set] this will set it to mode "BGN"
So,
N = 4
I/Y = 6.5
PV = -100,000
FV = 0
CPT PMT
The payments are known to to be 27,408.71
Note : Kindly find an attached copy of the Financial calculator below
The amount you can withdraw is $29,190.27 per installment.
Data and Calculations:
Amount in trust fund = $100,000
Interest rate on the fund = 6.5%
Number of equal instalments to withdraw = 4
N (# of periods) = 4
I/Y (Interest per year) = 6.5%
PV (Present Value) = $100,000
FV (Future Value) = $0
Schedule of Withdrawals:
Period PV PMT Interest Future Value
1 $100,000.00 $-29,190.27 $6,500.00 $77,309.73
2 $77,309.73 $-29,190.27 $5,025.13 $53,144.58
3 $53,144.58 $-29,190.27 $3,454.40 $27,408.71
4 $27,408.71 $-29,190.27 $1,781.57 $0.00
Results:
PMT = $29,190.27
Sum of all periodic payments = $116,761.10
Total Interest = $16,761.10
Thus, the amount to withdraw per installment is $29,190.27.
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Buffalo Corporation has used the accrual basis of accounting for several years. A review of the records, however, indicates that some expenses and revenues have been handled on a cash basis because of errors made by an inexperienced bookkeeper. Income statements prepared by the bookkeeper reported $27,700 net income for 2019 and $34,300 net income for 2020. Further examination of the records reveals that the following items were handled improperly.
Rent was received from a tenant in December 2016. The amount, $1,030, was recorded as revenue at that time even though the rental pertained to 2017.
Answer:
Corrected net income for 2019 = 23,750.
Corrected net income for 2020 = $36,210
Explanation:
For the year 2019, below are the particulars and the amount recorded for each particulars.
Net income => $27,700.
Rent received in 2019 => - $1,030.
Salaries and Wages not accrued, 12/31/18 => - $1190.
Salaries and Wages not accrued, 12/31/19 => - $1290.
Inventory of Supplies, 12/31/18 = - 1430.
Inventory of Supplies, 12/31/19 = 990
Corrected net income = 23,750.
For the year 2020, below are the particulars and the amount recorded for each particulars.
Net income => $34,300.
Rent received in 2020 => $1,030.
Salaries and Wages not accrued, 12/31/2020 => - $ 870
Salaries and Wages not accrued, 12/31/19 => $1290.
Inventory of Supplies, 12/31/19 = - 990.
Inventory of Supplies, 12/31/20 = 1450.
Corrected net income = $36,210
Partial-Year Depreciation Equipment acquired at a cost of $105,000 has an estimated residual value of $12,000 and an estimated useful life of 10 years. It was placed into service on May 1 of the current fiscal year, which ends on December 31.A. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method.
Depreciation
Year 1 $6,200
Year 2 $9,300B. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method.
Depreciation
Year 1 $
Year 2 $
Answer and Explanation:
A. The computation of he depreciation for the current fiscal year and for the following fiscal year using the straight-line method is shown below:-
= (Original cost - residual value) ÷ (estimated useful life)
= ($105,000 - $12,000) ÷ (10 years)
= $9,300
For the current year, the depreciation expense is
= $9,300 × 8 months ÷ 12 months
= $6,200
The 8 months are calculated from May 1 to December 31
And, for the following fiscal year , the depreciation expense is $9,300
B. The computation of depreciation for the current fiscal year and for the following fiscal year using the double-declining-balance method is shown below:-
But before that
Rate of depreciation under double declining depreciation = 2 × (1 ÷ Life) × 100
= 2 × (1 ÷ 10) × 100
= 20%
1st Year depreciation = Equipment cost × Rate of depreciation under double declining depreciation × Beginning may ÷ Ending December
= $105,000 × 20% × 8 ÷ 12
= $14,000
2nd year depreciation = Depreciation on $105,000 for the four months at 20%
= Equipment cost × Rate of depreciation under double declining depreciation × Remaining months ÷ Ending December
= $105,000 × 20% × 4 ÷ 12
= $7,000
and now we calculate the 20% on balance in machinery for 8 months.
Balance = Equipment cost - 1st Year depreciation - 2nd Year depreciation
= $105,000 - $14,000 - $7,000
= $84,000
Depreciation = Balance Rate of depreciation under double declining depreciation × Beginning may ÷ Ending December
= $84,000 × 20% × 8 ÷ 12
= $11,200
Total depreciation in year 2 = 2nd year depreciation + Depreciation
= $7,000 + $11,200
= $18,200
1. Based on the straight-line method, the Depreciation Expense for the current fiscal year is $6,200 ($9,300 x 8/12).
2. Based on the straight-line method, the Depreciation Expense for the following fiscal year is $9,300 ($93,000/10).
3. Based on the double-declining-balance method, the Depreciation Expense for the current fiscal year is $14,000.
4. Based on the double-declining-balance method, the Depreciation Expense for the following fiscal year is $18,200.
Data and Calculations:
Cost of equipment = $105,000
Estimated residual value = $12,000
Estimated useful life = 10 years
Date of put into use = May 1
Depreciable amount = $93,000 ($105,000 - $12,000)
Annual depreciation expense based on the straight-line method = $9,300 (93,000/10)
Double-declining=balance method:
Depreciation rate = 20% (100/10 x 2)
Depreciation for the first year = $14,000 ($105,000 x 20% x 8/12)
Reduced balance after the first year = $91,000 ($105,000 - $14,000)
Depreciation for the second year = $18,200 ($91,000 x 20%)
Learn more: https://brainly.com/question/24339347
If you enter the teaching profession, you will have no money for vacations; and if you do not enter the teaching profession, you will have no time for vacations. Since you must either enter or not enter the teaching profession, it follows that either you will have no money or no time for vacations.
a. True
b. False
Answer:
True
Explanation:
This is an example of Constructive dilemma. It is a true rule of inference of propositional logic. It infers that, if P implies Q and R implies S and either P or R is true, then either Q or S has to be true. Therefore entering the teaching profession, means no money for vacations; and not entering the teaching profession, means no time for vacations. If you must either enter or not enter the teaching profession, it follows that either you will have no money or no time for vacations.
What was the two important information in the financial position that is useful to financial users?
Answer:
1)balance sheet
2)income statement
Explanation:
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.
Activity Cost Activity Base
Procurement $383,000 Number of purchase orders
Scheduling 211,000 Number of production orders
Materials handling 425,500 Number of moves
Product development 710,900 Number of engineering changes
Production 1,420,000 Machine hours
Number of Purchase Orders Number of Production Orders Number of Moves Number of Engineering Changes Machine Hours Number of Units
Disk drives 4,200 450 1,260 11 2,500 2,100
Tape drives 1,600 125 500 6 8,000 4,200
Wire drives 12,200 800 4,200 20 11,100 2,500
The activity-based cost for each disk drive unit is:_________
Answer:
$297.18
Explanation:
The computation of the activity based cost for each disk drive unit is shown below:
Particulars Disk drive
Procurement = $89,366.67
{$383,000 × 4,200 ÷ (4,200 + 1,600 + 12,200)}
Scheduling = $69,054.55
{$211,000 × 450 ÷ (450 + 125 + 800}}
Material handling = $89,954.70
{$425,500 × 1,260 ÷ (1,260 + 500 + 4,200)}
Product development = $211,348.65
{$710,900 × 11 ÷ (11 + 6 + 20)
Production = $164,351.85
{$1,420,000 × 2,500 ÷ (2,500 + 8,000 + 11,100)}
Total $624,076.42
Divided by Disk drive Unit 2,100
Activity based cost for
each disk drive unit is $297.18
Ned went to the supermarket to buy bread and ice cream, While he was in the
checkout line, he added a candy bar and some chewing gum to his shopping
cart. Which two products were impulse purchases?
A. The bread and ice cream
B. The candy bar and chewing gum
C. The candy bar and ice cream
D. The bread and chewing gum
Answer:
An impulse purchase is an item that was bought, but not previously planned. In Ned's example, he did not plan to buy a candy bar and the chewing gum. Thus, they are impulse purchases.
The correct answer is B.
Seth owns a local business that provides email updates on surf conditions. He is the only supplier of these email updates in Santa Barbara and Goleta, which gives him a monopoly in both cities. The marginal cost of producing another update is zero (and we'll ignore fixed costs). The inverse demand for these updates in Santa Barbara is p = 74-q and the inverse demand in Goleta is p = 39 - 4q. Suppose Seth charges different uniform prices in SB and Goleta. If Seth sets each price such that he is maximizing his total profits, what are Seth's total profits?
Answer:
Seth's total profits is $1,535.359
Explanation:
According to the given data we have the following:
MC = 0 and we will ignore fixed costs
Therefore TC = 0
Demand function in Santa barbara is
p = 74 - q
MR = 74 - 2q
Since Seth sets different uniform prices in two markets to maximizes his profit therefore ,
MR = MC
74 - 2q = 0
2q = 74
q=37
p = 74 - 37 = 37
Profit = pq - TC
= 37*37 - 0
= $1,369
Inverse demand finction Goleta is
p = 39 - 4q
MR = 39 - 8q
MR = MC
39 - 8q = 0
8q = 39
q = 4.875
p = 39 - 4.875 = 34.125
Profit = pq - TC
= 34.125*4.875 - 0
= $166.359
Therefore, Seth's total profits = $1,369 + $166.359
Seth's total profits= $1,535.359
Seth's total profits is $1,535.359
The following balances appear on the books of Sarah Simmons Enterprises: Retained Earnings, $29,600; Dividends, $10,500; Income Summary, $0; Service Revenue, $24,500; Salaries Expense, $6,200; Rent Expense, $3,500; and Advertising Expense, $2,000. All accounts have normal balances.Requirements1. Open a T-account for each account, and insert its adjusted balance as given (denote as Adj. Bal.) at December 31.2. Post the closing entries to the accounts, denoting posted amounts as Clos.3. Compute the ending balance of Retained Earnings.
Answer:
A. T Account balance $19,100
B. $31,600
C.$31,600
Explanation:
Sarah Simmons Enterprises
A.
T-account account
Dr Cr
Dr C/o 10500 Cr Beginning balance 29,600
Cr C/o 10500
Cr Balance 19,100
b.
Simmons enterprise retained earnings ending balance will be:
Retained earnings 29,100
Less Dividends 10,500
Balance 19,100
Add (10,500+2,000) 12,500
Balance 31,600
C. Ending balance of Simmons, Capital will be 31,600 just as in ( b) where the retained earnings ending was 31,600
A Record transactions, post to the Cash T-account, and prepare the statement of cash flows (LO4-7) [The following information applies to the questions displayed below.] Rocky owns and operates Balboa's Gym located in Philadelphia. The following transactions occur for the month of October: 1. October 2 Receive membership dues for the month of October totaling $8,500. 2. October 5 Issue common stock in exchange for cash, $12,000. 3. October 9 Purchase additional boxing equipment for $9,600, paying one-half of the amount in cash and issuing a note payable to the seller for the other one-half due by the end of the year. 4. October 12 Pay $1,500 for advertising regarding a special membership rate available during the month of October. 5. October 19 Pay dividends to stockholders, $4,400. 6. October 22 Pay liability insurance to cover accidents to members for the next six months, starting November 1, $6,900. 7. October 25 Receive cash in advance for November memberships, $5,600. 8. October 30 Receive, but do not pay, utilities bill for the month, $5,200. 9. October 31 Pay employees' salaries for the month, $7,300.
Answer:
1. October 2 Receive membership dues for the month of October totaling $8,500.
Dr Cash 8,500
Cr Service revenue 8,500
2. October 5 Issue common stock in exchange for cash, $12,000.
Dr Cash 12,000
Cr Common stock 12,000
3. October 9 Purchase additional boxing equipment for $9,600, paying one-half of the amount in cash and issuing a note payable to the seller for the other one-half due by the end of the year.
Dr Equipment 9,600
Cr Cash 4,800
Cr Notes payable 4,800
4. October 12 Pay $1,500 for advertising regarding a special membership rate available during the month of October.
Dr Advertising expense 1,500
Cr Cash 1,500
5. October 19 Pay dividends to stockholders, $4,400.
Dr Retained earnings 4,400
Cr Dividends payable 4,400
Dr Dividends payable 4,400
Cr Cash 4,400
6. October 22 Pay liability insurance to cover accidents to members for the next six months, starting November 1, $6,900.
Dr Prepaid insurance 6,900
Cr Cash 6,900
7. October 25 Receive cash in advance for November memberships, $5,600.
Dr Cash 5,600
Cr Unearned revenue 5,600
8. October 30 Receive, but do not pay, utilities bill for the month, $5,200.
Dr Utilities expense 5,200
Cr Accounts payable 5,200
9. October 31 Pay employees' salaries for the month, $7,300.
Dr Wages expense 7,300
Cr Cash 7,300
Cash account
Debit Credit
8,500 4,800
12,000 1,500
5,600 4,400
6,900
7,300
1,200
Balboa's Gym
Cash Flow Statement
October 31, xx
Cash flow from operating activities:
Cash inflows:
Cash from October membership dues $8,500
Cash from November memberships $5,600
Total cash inflows $14,100
Cash outflows:
Advertisement expense ($1,500)
Prepaid insurance ($6,900)
Employees' salaries ($7,300)
Total cash outflows ($15,700)
Cash flow from operating activities ($1,600)
Cash flow from investing activities:
Purchase of new equipment ($4,800)
Cash flow from financing activities:
Issuance of common stock $12,000
Dividends paid ($4,400)
Cash flow from investing activities $7,600
Net increase in cash $1,200
Complete the following table by selecting the redistributive philosophy that matches each statement. Statement Utilitarianism Libertarianism Liberalism The government should punish crimes and enforce voluntary agreements, but not redistribute income. The government should choose policies deemed to be just, as evaluated by an impartial observer behind a "veil of ignorance." The government should choose policies to maximize the total utility of everyone in society. Suppose that Neha believes that the government should aim to raise the welfare of the poorest people in society, because if we all started in the exact same position in life and then created rules and laws to obey as a society, people would be concerned about ending up at the bottom of the income distribution. Which redistributive philosophy is consistent with Neha's view.
a. Liberalismb. Libertarianismc. Utilitarianism
Answer: Please see below.
Explanation:
The government should punish crimes and enforce voluntary agreements, but not redistribute income----libertarianism
The government should choose policies deemed to be just, as evaluated by an impartial observer behind a "veil of ignorance.----liberalism
The government should choose policies to maximize the total utility of everyone in society--
utilitarianism
---Nehas philosophy here as an impartial observer is void of self interest and is of the opinion that if government be just and equal in it's redistribution by raising the welfare of the poorest people in society, then people will strive to avoid being at the bottom of income distribution, this means that Nehas philosophy seeks policies that are just and therefore is consistent with -liberalism.
Use the following information for the Quick Study below.
[The following information applies to the questions displayed below.]
Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix’It uses the perpetual inventory system).
Merchandise inventory $ 45,300 Sales returns and allowances $ 5,000
T. Nix, Capital 130,300 Cost of goods sold 109,500
T. Nix, Withdrawals 7,000 Depreciation expense 11,800
Sales 162,100 Salaries expense 40,000
Sales discounts 4,400 Miscellaneous expenses 5,000
A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $43,400.
Answer:
Nix’It Company’s Journal entries
July 31
Dr Sales 162,100
Cr Incomes summary 162,100
(To close sales revenue to income summary recorded)
July 31
Dr Income summary 175,600
Cr Sales returns and allowances $ 5,000
Cr Cost of goods sold 109,600
Cr Depreciation expense 11,800
Cr Salaries expense 40,000
Cr Sales discounts 4,400
Cr Miscellaneous expenses 5,000
(To close expenses account recored)
Explanation:
Cost of goods sold+( Merchandise inventory still available-Merchandise inventory)
109,500+(45,400-45,300)
=109,500+100
=109,600
