Answer:
All Interest earned on a note receivable was not recorded.
Effect: Assets and stockholders' equity overstated
Explanation: An omitting of interest earned on a note receivable will result to an understatement of assets and stockholders’ equity
Depreciation on equipment was not recorded.
Effect: Assets understated and stockholders' equity overstated
Explanation: An omitting of depreciation on equipment will result to an overstatement of assets and stockholders’ equity
No adjustment was made for supplies used up during the month
Effect: Assets overstated and stockholders' equity
Explanation: An omitting of supplies adjustment will result to an overstatement of assets and stockholders’ equity
An attorney has earned 1/2 of a retainer fee that was received and recorded last month. No adjustment was recorded for the amount earned.
Effect: Assets and stockholders' equity understated
Explanation: An omitting of retainer fee adjustment will result to an overstated liabilities and understated stockholders’ equity
Property taxes are paid annually. The estimated monthly amount for the taxes was not recorded.
Effect: Liabilities and stockholders equity understated
Explanation: An omitting of property tax adjustment entry will result to an understated liabilities and overstated stockholders’ equity
Wages are paid every Friday for the 5-day work week. The month ended on Monday and no adjustment was recorded.
Effect: Liabilities and stockholders' equity overstated
Explanation: An omitting of outstanding wages adjustment entry will result to an understated liabilities and overstated stockholders’ equity.
Services provided to customers on the last day of the month were not billed
Effect: Asset and stockholders' equity understated
Explanation: An omitting for bill of services provided to customers on the last day of the month will result to an understatement of assets and stockholders’ equity
A tenant paid 6 months' rent in advance when he moved in on the first day of the month. No entry was made on the last day of the month
Effect: Liabilities understated and stockholders' equity overstated
Explanation: An omitting of prepaid rent adjustment entry will result to an overstated liabilities and understated stockholders’ equity
The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 17 percent a year for the next 4 years and then decreasing the growth rate to 6 percent per year. The company just paid its annual dividend in the amount of $2.40 per share. What is the current value of one share of this stock if the required rate of return is 7.90 percent?
Answer:
$196.91
Explanation:
The computation of the current value is shown below:
D1 = ($2.4 × 1.17) = 2.808
D2 = ($2.808 × 1.17) = 3.28536
D3 = (3.28536 × 1.17) = 3.8438712
D4 = (3.8438712 × 1.17) = 4.4973293
Now
Value after year 4 is
= (D4 × Growth rate) ÷ (Required return - Growth rate)
= (4.4973293 × 1.06) ÷ (0.079 - 0.06)
= 250.903635
Now the current value is
= Future dividend and value × Present value of discounting factor
=$2.808 ÷ 1.079 + 3.28536 ÷ 1.079^2 + 3.8438712 ÷ 1.079^3 + 4.4973293 ÷ 1.079^4 + 250.903635 ÷ 1.079^4
= $196.91
had $35 million in sales last year. Its cost of goods sold was $25 million and its average inventory balance was $3 million. What was its average days of inventory
Answer: 43.8 days
Explanation:
Average days of school inventory can be calculated as:
= Average inventory balance/(Cost of goods sold/365)
= $3million/($25 million/365)
= $3 million/$68493.15
= 43.8 days
Sheet Company reported the following net income and dividends for the years indicated: Year Net Income Dividends 20X5 $ 35,000 $ 12,000 20X6 45,000 20,000 20X7 30,000 14,000 Pillow Corporation acquired 75 percent of Sheets common stock on January 1, 20X5. On that date, the fair value of Sheet net assets was equal to the book value. Pillow uses the equity method in accounting for its ownership in Sheet and reported a balance of $259,800 in its investment account on December 31, 20X7. Required: a. What amount did Pillow pay when i
Answer:
A. $211,800
B. $282,400
C. $70,600
D. $ 86,600
Explanation:
A. Calculation for the amount that True pay when it purchased Exacto’s shares
Balance in investment account, December 31, 20x7$259,800
Cumulative earnings since acquisition$110,000
Less Cumulative dividends since acquisition(46,000)
Total$64,000
($110,000-46,000)
×Proportion of stock held by True Corporation 0.75
=Total amount debited to Investment account(48,000)
(64,000*0.75)
Purchase amount on January 1, 20X5$211,800
($259,800-$48,000)
B. Calculation for the fair value of Exacto’s net assets on January 1, 20X5
True Corporation’s Purchase amount$211,800
÷True Corp.’s percentage 0.75
=Fair Value of Exacto Company’s Net Assets$282,400
($211,800÷0.75)
C. Calculation for What amount was assigned to the NCI shareholders on January 1, 20X5
Fair Value of Exacto Company’s Net Asset$282,400
×Exacto Company’s percentagex0.25
=NCI’s portion$70,600
($282,400×0.25)
D. Calculation forWhat amount will be assigned to the NCI shareholders
True Corp’s investment balance$259,800
True Corp’s percentage÷0.75
=Fair Value of Exacto’s Net Assets 20X7 $346,400
×Exacto Company’s percentage 0.25
=NCI’s Portion, December 31, 20X7$ 86,600
($346,400×0.25)
How are productive resources
allocated among people and
businesses in the United States?
Answer:
see below
Explanation:
America is a good example of a free-market economy. In this type of market, productive resources are allocated through the interaction of a willing buyer and a willing seller. In a market economy, Mutual beneficial exchange of resources through trade is relied upon to solve economic problems. An Individual's self-interest is viewed as a benefit to society.
In a free-market economy like in America, purchasing power determines who owns resources. Resource owners are motivated by profits and other self-interest to engage in production. The forces of supply and demand control activities in a Free Market. Consumers decide what will be produced. In market economies, operation and acquisition of resources is by the freely and self-directed interaction between consumers and producers.
Kepler Company Comparative Income Statements This Year Last Year Sales $ 950,000 $ 900,000 Less: Cost of goods sold 500,000 490,000 Gross margin $ 450,000 $ 410,000 Less: Selling and administrative expenses 275,000 260,000 Operating income $ 175,000 $ 150,000 Less: Interest expense 12,000 18,000 Income before taxes $ 163,000 $ 132,000 Less: Income taxes 65,200 52,800 Net income $ 97,800 $ 79,200 Less: Dividends (common) 27,800 19,200 Net income, retained $ 70,000 $ 60,000 Also, assume that for last year and for the current year, the market price per share of common stock is $2.98. In addition, for last year, assets and equity were the same at the beginning and end of the year. Required: Note: Round all answers to two decimal places. 1. Compute the following for each year: This Year Last Year a. Return on assets % % b. Return on stockholders' equity % % c. Earnings per share $ $ d. Price-earnings ratio e. Dividend yield % % f. Dividend payout ratio
Kepler Company
Comparative Balance Sheets
This Year Last Year
Assets
Current assets:
Cash $ 50,000 $100,000
Accounts receivable, net 300,000 150,000
Inventory 600,000 400,000
Prepaid expenses 25,000 30,000
Total current assets $ 975,000 $680,000
Property and equipment, net 125,000 150,000
Total assets $1,100,000 $830,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 400,000 $290,000
Short-term notes payable 200,000 60,000
Total current liabilities $ 600,000 $350,000
Long-term bonds payable, 12% 100,000 150,000
Total liabilities $ 700,000 $500,000
Stockholders' equity:
Common stock
(100,000 shares) 200,000 200,000
Retained earnings 200,000 130,000
Total liabilities and
stockholders' equity $1,100,000 $830,000
Answer:
Kepler Company
a. Return on assets = Net Income/Total Assets
= $ 97,800/$1,100,000 $ 79,200/$830,000
= 8.89% = 9.54%
b. Return on stockholders' equity = Net Income/Stockholders' equity
= $ 97,800/$400,000 $ 79,200/$330,000
= 24.45% = 24%
c. Earnings per share = Net Income/Outstanding common shares
= $ 97,800/100,000 $ 79,200/100,000
= $0.98 = $0.79
d. Price-earnings ratio = Market price/Earnings per share
= $2.98/$0.98 = $2.98/$0.79
= 3.04 times = 3.77 times
e. Dividend yield = Dividend per share/price per share
= $0.28/$2.98 = $0.19/$2.98
= 9.40% = 6.38%
f. Dividend payout ratio = Total dividends/Net Income
= $27,800/$97,800 = $19,200/$79,200
= 28.43% = 24.24%
Explanation:
Kepler Company
Comparative Income Statements
This Year Last Year
Sales $ 950,000 $ 900,000
Less: Cost of goods sold 500,000 490,000
Gross margin $ 450,000 $ 410,000
Less: Selling and
administrative expenses 275,000 260,000
Operating income $ 175,000 $ 150,000
Less: Interest expense 12,000 18,000
Income before taxes $ 163,000 $ 132,000
Less: Income taxes 65,200 52,800
Net income $ 97,800 $ 79,200
Less: Dividends (common) 27,800 19,200
Net income, retained $ 70,000 $ 60,000
During 20x1, Orca Corp. decided to change from the FIFO method of inventory valuation to the weighted-average method. Inventory balances under each method were as follows:________.
FIFO Weighted-average
January 1, 20x1 $71,000 $77,000
December 31, 20x1 $79,000 $83,000
Orca's income tax rate is 30%.
In its 2005 financial statements, what amount should Orca report as the cumulative effect of this accounting change?
a) $2,800
b) $4,000
c) $4,200
d) $6,000
Answer:
Orca Corp.
The cumulative effect of this accounting change in estimate is:
That the cost of goods sold will be reduced by:
b) $4,000
Explanation:
a) Data and Calculations:
FIFO Weighted-average Difference
January 1, 20x1 $71,000 $77,000 $6,000
December 31, 20x1 $79,000 $83,000 $4,000
Orca's income tax rate is 30%.
Note that the difference in the cost of the beginning inventory does not have any effect in the current period's financials. It was an estimate that was done previously and Orca does not need to restate its financials for the previous year because of the change. The accounting change only affects the current period.
Ramirez Company is completing the information processing cycle at its fiscal year-end on December 31. Following are the correct balances at December 31 for the accounts both before and after the adjusting entries.
Trial Balance, December 31 of the Current Year
Before After
Adjusting Entries Adjusting Entries
Items Debit Credit Debit Credit
a. Cash $ 13,600 $ 13,600
b. Accounts receivable 430
c. Prepaid insurance 720 480
d. Equipment 169,880 169,880
e. Accumulated depreciation, $ 41,400 $ 46,700
equipment
f. Income taxes payable 1,920
g. Common stock and 110,000 110,000
additional paid-in capital
h. Retained earnings, January 1 15,680 15,680
i. Service revenue 72,500 72,930
j. Salary expense 55,380 55,380
k. Depreciation expense 5,300
l. Insurance expense 240
m. Income tax expense 1,920
$ 239,580 $ 239,580 $ 247,230 $ 247,230
Compute the amount of net income assuming that it is based on the amounts (a) before adjusting entries and (b) after adjusting entries.
Answer:
Please solution below
Explanation:
Computation of the amount of net income based on;
Adjusting entries (Amounts before)
Sales revenue.
$72,500
Less Expenses;
Depreciation exp.
Nil
Insurance expense
Nil
Salary expense
($55,380)
Income tax expense
Nil
Net income
$17,120
Adjusting entries(Amounts after)
Service revenue
$72,930
Less expenses:
Depreciation expense
($5,300)
Insurance expense
($240)
Salary expense
($55,380)
Income tax expense
($1,920)
Net income
$10,090.
•Note: The net income value of $10,090 after adjusting the entries is correct because all revenue and expenses were factored, in arriving at the figure, while the net income value of $17,120 before adjusting the entries, is incorrect due to the fact that it does not take cognizance of revenue of $430 and expenses of $7,460.
Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon.
Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
Statement Price Control Binding or Not
The government prohibits gas stations from selling gasoline for more than $2.50 per gallon.
The government has instituted a legal minimum price of $3.40 per gallon for gasoline.
There are many teenagers who would like to work at gas stations, but they are not hired due to minimum-wage laws.
Answer:
Price ceiling binding
price floor binding
Price floor binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
The maximum price ($2.50) is less than the equilibrium price($3) . So it is a binding price ceiling
The minimum price ($3.40) is greater than the equilibrium price($3) . So it is a binding price floor
Creswell Corporation's fixed monthly expenses are $30,000 and its contribution margin ratio is 63%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $92,000?
a. $27,960.b. $62,000.c. $57,960.d. $4,040.
Answer:
Net income= $27,960
Explanation:
Giving the following information:
Fixed costs= $30,000
contribution margin ratio= 0.63
Sales= $92,000
First, we need to calculate the total contribution margin:
Total contribution margin= 92,000*0.63= 57,960
Now, the net income:
Net income= 57,960 - 30,000
Net income= $27,960
At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $15.00 per unit:
Transactions Units Amount
Inventory, January 1 500 $2,500
Purchase, January 12 620 4,340
Purchase, January 26 100 900
Sale (380)
Sale (210)
Between FIFO or LIFO, which method would produce the more favorable cash flow?
Answer:
FIFO method decreases COGS and increases net income, but both methods will result in a similar cash flow ($8,850).
Explanation:
cost of goods sold using FIFO:
380 x $5 = $1,900
(120 x $5) + (90 x $7) = $1,230
total = $3,130
profit = (590 x $15) - $3,130 = $5,720
cost of goods sold using LIFO:
(100 x $9) + (280 x $7) = $2,860
210 x $7 = $1,470
total = $4,330
profit = (590 x $15) - $4,330 = $4,520
assuming that the company does not incur any operating costs:
Cash flow from operating activities (using FIFO):
Net income $5,270
adjustments to net income:
Decrease in inventory $3,130
Net cash flow $8,850
Cash flow from operating activities (using LIFO):
Net income $4,520
adjustments to net income:
Decrease in inventory $4,330
Net cash flow $8,850
What is the definition of punctual? a. To be accurate. b. Adapting to your surroundings. c. Being on time. d. Having the ability to do more than one task at a time.
Answer:
c. Being on time.
Explanation:
Punctual is strictly adhering to the time set. A punctual person is never late for meetings or events. It's on time.
Punctual in making payments means the payments were not delayed. Punctuality refers to the ability to follow a schedule or a timetable.
Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $107,000 in sales during the second quarter of this year. If it began the quarter with $18,700 of inventory at cost and purchased $72,700 of inventory during the quarter, its estimated ending inventory by the gross profit method is:
Answer:
$16,500
Explanation:
The computation of the estimated ending inventory is given below:
As We know that
Cost of goods sold = Beginning inventory + purchase made - ending inventory
And, the
Sales - gross profit = Cost of goods sold
So,
$107,000 - $107,000 × 30% = Cost of goods sold
Therefore, the cost of goods sold is
= $107,000 - $32,100
= $74,900
And, finally the ending inventory is
$74,900 = $18,700 + $72,700 - ending inventory
$74,900 = $91,400 - ending inventory
So, the ending inventory is
= $91,400 - $74,900
= $16,500
Felicia works for a news organization as a reporter. For the most part her work is solitary, and she only has brief communications via email or telephone with her editor (her boss) when she submits her stories. While Felicia is a good news reporter, the economy has taken a downfall and the organization likely will have to lay off some employees. Felicia is most likely to perceive this situation as:
Answer:
The correct answer is: Personal threat
Explanation:
Analyzing the above scenario, Felicia is considered more likely to perceive this situation as a personal threat.
This is due to her job function, which is a good news reporter, and with the economy declining and the organization will probably have to fire some employees, she feels threatened personally, as she is more likely to realize that the economic situation negative will directly influence the good news that she sends to the news agency, so she feels that this situation is threatening to the performance of her work and the agency may fire her because there is no good news for publication.
Charter Company, which uses the perpetual inventory method, purchases different letters for resale. Charter had a beginning inventory comprised of seven units at $4 per unit. The company purchased five units at $6 per unit in February, sold seven units in October, and purchased two units at $7 per unit in December. If Charter Company uses the LIFO method, what is the cost of its ending inventory
Answer:
Ending inventory cost= $34
Explanation:
Giving the following information:
Beginning inventory= 7 units for $4 per unit.
Purchased= 5 units for $6
Sold= 7 units
Purchased= 2 units for $7 each
Under the LIFO (last-in, first-out) method, the cost of ending inventory is calculated using the cost of the firsts units incorporated into inventory. The perpetual inventory system recognizes sales after it happens.
Ending inventory:
Beginning inventory= 7*4= 28
Purchased= 5*6= 30
Sold= (5*6) + (2*4)= (38)
Purchased= 2*7= 14
Ending inventory cost= $34
The following are the typical classifications used in a balance sheet:
a. Current assets
b. Investments and funds
c. Property, plant and equipment
d. Intangible assets
e. Other assets
f. Current liabilities
g. Long-term liabilities
h. Paid-in-capital
i. Retained earnings
Required:
For each of the following 2016 balance sheet items, use the letters above to indicate the appropriate classification category.
(If the item is a contra account, select the appropriate letter with a minus sign.)
Item Category
1. Accrued interest payable
2. Franchise
3. Accumulated depreciation
4. Prepaid insurance, for 2017
5. Bonds payable, due in 10 years
6. Current maturities of long-term debt
7. Note payable, due in three months
8. Long-term receivables
9. Restricted cash (used to retire bonds in 10 years)
10. Supplies
11. Machinery
12. Land, in use
13. Deferred revenue
14. Copyrights
15. Preferred revenue
16. Land, held for speculation
17. Cash equivalents
18. Wages payable
Answer and Explanation:
The categorizaton is shown below:
1. f. Current liabilities
2. d. Intangible assets
3. c. Property, plant, and equipment
4. a. Current assets
5. g. Long Term liabilities
6. f Current Liabilities
7. f Current Liabilities
8. b Investment and funds
9. b Investment and funds
10. a. Current assets
11. c. Property, plant, and equipment
12. c. Property, plant, and equipment
13. f. Current liabilities
14. d. Intangible assets
15. h paid in capital
16. b Investment and funds
17. a. Current assets
18. f Current Liabilities
Gemstone Products located in New York City, is one of the world's largest producers of beauty and related products. The company's consolidated balance sheets for the 2016 and 2015 fiscal years included the following ($ in thousands): 2016 2015 Current assets: Receivables, less allowances of $133,425 in 2016 and $89,025 in 2015 $ 461,900 $ 441,500 A disclosure note accompanying the financial statements reported the following ($ in thousands) Year Ended 2016 2015 (In thousands) Calculation of account receivables, net: Receivables $ 595,325 $ 530,525 Less: allowance for doubtful accounts (123,125 ) (77,825 ) Less: reserve for product returns (10,300 ) (11,200 ) Trade accounts receivable, net: $ 461,900 $ 441,500 Assume that the company reported bad debt expense in 2016 of $192,500 and had products returned for credit totaling $187,225 (sales price). Net sales for 2016 were $5,653,800 ($ in thousands). Required: 1. What is the amount of accounts receivable due from customers at the end of 2016 and 2015
Answer:
Required:
1. What is the amount of accounts receivable due from customers at the end of 2016 and 2015?
2. What amount of accounts receivable did Gemstone write off during 2016?
3. What is the amount of Gemstone's gross sales for the 2016 fiscal year?
1. Particulars 2016 2015
Accounts receivables (Net) $461,900 $441,500
Add: Allowances $133,425 $89,025
Accounts receivables (gross) $595,325 $530,525
2. Particulars Amount
Allowance for doubtful accounts: Beginning balance $77,825
Add: Bad debt expenses $192,500
Less: Closing balance end of the year $123,125
Bad debts written off in 2016 $147,200
3. Particulars Amount
Balance, end of the year $10,300
Add: Actual returns $187,225
Less: Balance, beginning of the year $11,200
Estimated sales returns $186,325
Gross sales for the year = Net sales + Estimated sales returns
Gross sales for the year = $5,653,800 + $186,325
Gross sales for the year 2016 = $5,840,125
Nancy Smith is the sole shareholder and employee of White Corporation, a calendar year C corporation that is engaged exclusively in accounting services. During the current year, White has operating income of $320,000 and operating expenses (excluding salary) of $150,000. Further, White Corporation pays Nancy a salary of $100,000. The salary is reasonable in amount and Nancy is in the 32% marginal tax bracket regardless of any income from White. Assuming that White Corporation distributes all after-tax income as dividends, how much total combined income tax do White and Nancy pay in the current year
Answer:
$63,325
Explanation:
Calculation for how much total combined income tax do White and Nancy pay in the current year
First step is to compute Corporate income tax
Since The Corporation is a personal service corporation which means that 35% flat tax rate will be applies to the Corporation taxable income which is calculated as:
Corporate income tax=($320,000-$100,000-$150,000)*35%
Corporate income tax=$70,000*35%
Corporate income tax=$24,500
Second step is to find the after-tax income that was distributed to Nancy
After-tax income = ($70,000 – $24,500)
After-tax income=$45,500
Third step is to compute for the income tax incur by Nancy on the salary income and on the dividend income
Income tax on salary income=($100,000×32%)
Income tax on salary income=$32,000
Income tax on dividend income=($45,500 ×15%)
Income tax on dividend income= $6,825
Total tax=$32,000+$6,825
Total tax=$38,825
Last step is to compute the total combined income tax
Total combined income tax =$24,500+$38,825
Total combined income tax= $63,325
Therefore the total combined income tax that White and Nancy pay in the current year will be $63,325
On December 31, 2020, Coolwear, Inc. had a balance in its prepaid insurance account of $59,400. During 2021, $97,000 was paid for insurance. At the end of 2021, after adjusting entries were recorded, the balance in the prepaid insurance account was $47,500. Insurance expense for 2021 was:
Answer:
$108,900
Explanation:
Opening balance in the prepaid insurance account = $59,400
Paid for insurance = $97,000
Balance in insurance account at the end = $47,500
Total amount paid ;
= Opening balance in the prepaid insurance account + paid for insurance
= $59,400 + $97,00
= $156,400
Insurance expense for 2021;
= Total amount paid - Balance at the end in the prepaid insurance account
= $156,400 - $47,500
= $108,900
Direct Materials Purchases Budget Pasadena Candle Inc. budgeted production of 775,000 candles for the January. Wax is required to produce a candle. Assume 11 ounces of wax is required for each candle. The estimated January 1 wax inventory is 17,900 pounds. The desired January 31 wax inventory is 14,300 pounds. If candle wax costs $1.80 per pound, determine the direct materials purchases budget for January. (One pound = 16 ounces.) Round all computed answers to the nearest whole number. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Pasadena Candle Inc. Direct Materials Purchases Budget For the Month Ending January 31 Pounds of wax required for production: Total units available Total pounds to be purchased Unit price $ Total direct materials to be purchased in January $
Answer:
952,583
Explanation:
Note: The desired December 31 wax inventory is 14,300 pounds. If candle wax costs $1.80 per pound, determine the direct materials purchases budget for January is the correct words
Pasadena Candle Inc.
Direct Materials Purchases Budget
For the Year Ending December 31
Pounds of wax required for production:
Candles (775,000*11/16) 532,813
Add: Desired ending inventory, 14,300
December 31
Total units available 547113
Less :Estimated beginning inventory, 17,900
January 1
Total pounds to be purchased 529,213
Total direct materials to be purchased = Total pounds to be purchased * Unit price
Total direct materials to be purchased = 529,213 * $1.80
Total direct materials to be purchased = 952,583
Lambda Computer Products competed for and won a contract to produce two prototype units of a new type of computer that is based on laser optics rather than on electronic binary bits. The first unit produced by Lambda took 5,000 hours to produce and required $250,000 worth of material, equipment usage, and supplies. The second unit took 4,250 hours and used $237,500 worth of materials, equipment usage, and supplies. Labor is $20 per hour. Use Exhibit 6.5. a. Lambda was asked to present a bid for 10 additional units as soon as the second unit was completed. Production would start immediately. What would this bid be
Answer:
$2,731,672.50
Explanation:
first unit produced by lambda took 5,000 hours to produce and required $250,000 worth of material, equipment usage, and supplies
the second unit took 4,250 hours and used $238,500 worth of materials, equipment usage, and supplies
learning rate = time needed to produce second unit / time needed to produce first unit = 4,250 hours / 5,000 hours = 85%
materials and equipment usage rate = $237,500 / $250,000 = 95%
using the attached table of cumulative values, we can determine the cumulative improvement factors needed to solve this question:
Lambda's accumulated cost for producing 10 more computers
work hours = 4,250 x 7.116 (85% and 10 units) x $20 per hour = $604,860materials and equipment = $238,500 x 8.955 (95% and 10 units) = $2,126,812.50total = $604,860 + $2,126,812.50 = $2,731,672.50On June 1, Royal Corp. began operating a service company with an initial cash investment by shareholders of $3,206,000. The company provided $8,200,000 of services in June and received full payment in July. Royal also incurred expenses of $2,645,000 in June that were paid in August. During June, Royal paid its shareholders cash dividends of $490,000. What was the company's income before income taxes for the two months ended July 31 under the following methods of accounting
Answer:
Cash Basis= $8,200,000
Accrual Basis= $5,555,000
Explanation:
Calculation for the company's income before income taxes for the two months ended July 31
Based on the information given we were told that the company provided the amount of $8,200,000 of services in the month of June and received full payment of the amount in the month of July which means that the CASH BASIS will be $8,200,000
Cash Basis= $8,200,000
Calculation for Accrual Basis
Using this formula
Accrual Basis= Cash received - Incurred expenses
Accrual Basis= $8,200,000-$2,645,000
Accrual Basis= $5,555,000
Therefore the company's income before income taxes for the two months ended July 31 under the Cash Basis and Accrual Basis methods of accounting will be :
Cash Basis= $8,200,000
Accrual Basis= $5,555,000
Comparing with unemployment rate with employment rate, which of the following is NOT correct? a. Unemployment rate takes the group of "out of labor force" into account. b. Compared with unemployment rate, employment rate is better because it concerns the hidden unemployment in the out of labor force group. c. Compared with employment rate, unemployment rate in a labor market usually has a larger variation. d. It has limitation because some policy shocks unrelated to unemployment or labor market situation such changes in fertility and school enrollment rates, will affect the number of the employment rate as well.
Answer:
b. Compared with unemployment rate, employment rate is better because it concerns the hidden unemployment in the out of labor force group.
Explanation:
Remember, the employment rate is used to determine the degree to which the labor force (people willing to work) in a particular economy are able to find work.
Hence, it does not concern itself or takes into account the hidden unemployment in the out of the labor force group, but only those people willing to work are considered.
"Aldrich and Co. sold goods to Donovan on credit.The amount owed grew steadily, and finally Aldrichrefused to sell any more to Donovan unless Donovansigned a promissory note for the amount due.Donovan did not want to but signed the notebecause he had no money and needed more goods.When Aldrich brought an action to enforce the note,Donovan claimed that the note was not bindingbecause it had been obtained by economic duress.Was he correct? [Aldrich & Co. v. Donovan, 778 P.2d397 (Mont.)"
Answer and Explanation:
Economic duress happens when one party X in a contract makes demands from the other party Y which party Y has to fulfill or party X terminates the contract.
No there was no economic duress here since Aldrich had a right to demand that Donovan sign a promissory note in order to protect his claim in case of default from Donovan. Therefore Donovan signed not because he was under duress but because he needed financial assistance.
Prepare any necessary general journal entries.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit June 30 enter an account title to record miscellaneous expenses enter a debit amount enter a credit amount enter an account title to record miscellaneous expenses enter a debit amount enter a credit amount (To record bank service charges) June 30 enter an account title for the journal entry to correct error in recording deposit on June 20 enter a debit amount enter a credit amount enter an account title for the journal entry to correct error in recording deposit on June 20 enter a debit amount enter a credit amount (To correct error in recording deposit on June 20) June 30 enter an account title to record EFT transfer enter a debit amount enter a credit amount enter an account title to record EFT transfer enter a debit amount enter a credit amount (To record EFT transfer) June 30 enter an account title to record NSF check enter a debit amount enter a credit amount enter an account title to record NSF check enter a debit amount enter a credit amount (To record NSF check)
Answer:
Necessary General Journal Entries:
Date Account Titles and Explanation Debit Credit
June 30 Miscellaneous Expenses $200
Cash Account $200
To record bank service charges.
June 20 Cash Account $300
Accounts Receivable $300
To correct error in recording deposit on June 20.
June 30 Cash Account $400
Accounts Receivable $400
To record EFT transfer received from XYZ Co. on account.
June 30 Accounts Receivable $500
Cash Account $500
To record NSF check received from Zoma Inc.
Explanation:
Company B's general journal is used to record business transactions as they occur initially. The entries identify the accounts involved and the required entries to be made as they are supposed to appear in the general ledger. Accounts to be debited are entered first before accounts to be credited for each transaction.
If invests $12,672.32 now and she will receive $30,000 at the end of 10 years, what annual rate of interest will she be earning on her investment
Answer:
Rate of interest (r) = 9%
Explanation:
Given:
Amount invested (P) = $12,672.32
Future amount (A) = $30,000
Number of year (n) = 10
Find:
Rate of interest (r)
Computation:
A=P(1+r)ⁿ
30,000 = 12,672.32(1+r)¹⁰
2.3673=(1+r)¹⁰
1.090 = (1+r)
r = 0.09 or 9%
Rate of interest (r) = 9%
On January 1, 20Y8, Crabb & Co. sold land to ASP, Inc. and accepted a two-year, $500,000 face value note as payment. 6% interest is due each December 31. ASP’s market rate of borrowing is 12%. Crabb originally purchased the land for $80,000 in 20Y1. REQUIRED Answer the following questions regarding the exchange. Round all amounts to the nearest whole dollar. 1. Was the note issued at a discount or a premium? Discount 2. What is the fair market value of the land at the date of exchange? $449,297 3. What is the gain or loss on the sale of the land? $369,297 4. How does this transaction affect Crabb & Co.’s balance sheet on the date of the exchange? Please include account names, dollar values, and whether the account increased or decreased.
Answer:
1. Discount
2. $449,298.47
3. $369,298.47 gain
4. land reduces by $80,000, investment increases by $449,298.47, reserves increases by $369,298.47
Explanation:
Question 1
Using the formula below
[tex]Price=\frac{I_{1}}{1+r} +\frac{I_{2}+F}{(1+r)^{2}}[/tex]
where
I = interest rate, which is 6% of 500,000 = 30,000
F = Face value, 500,000
r = borrowing cost = 12%
Therefore, the price of the note at the time it was used for payment was
[tex]Price=\frac{30,000}{1.12} +\frac{30,000+500,000}{(1.12)^{2}}[/tex]
= $449,298.47.
As the price is lower than the face value of the note, the note was issued at a discount.
Question 2
The fair market value of the note is $449,298.47, the compute price in question 1.
Question 3
The gain/loss on the sale of the land
= sale price - purchase price
= $449,298.47 - 80,000
= $369,298.47.
Question 4
The transaction would affect Crabb & Co's balance sheet as follows.
Asset side:
land reduces by $80,000
investment increases by $449,298.47
Equity & liabilities side:
reserves increases by $369,298.47
Where can you find an image database of free and simple graphics in many
slide presentation programs?
A. The new slide button
B. Users of slide software do not have access to simple and free
graphics.
C. Clip art
D. The View tab on your toolbar
SUBMIT
Clip art is where you can find an image database of free and simple graphics in many slide presentation programs. Hence, option C is appropriate.
What is Clip Art?A sort of graphic art is clip art (also known as clipart or clipart). Premade visuals known as pieces are being used to highlight any medium. The clip art is widely utilized today and is available in numerous print and electronic formats. But nowadays, the majority of clip art is produced, shared, and employed digitally.
To be placed into a document, clip art is artwork or a picture created by multiple artists to match a variety of different categories, such as humans, animals, schools, etc. For instance, Microsoft Word includes several 100 different clip art images that may be quickly and easily added to a document.
Infographics, periodicals, mobile application icons, corporate presentations, trademarks and logos, websites, and presentations all employ clip art pictures. Because they include drawings and visual components, people employ clip art. They are time-savvy because they have been pre-designed. Hence, option C is correct.
Learn more about Clip art here:
https://brainly.com/question/1889758
#SPJ2
Answer:
Clip
Explanation:
Subway, the sandwich shop, is run by Jim, Tim and Kim. When a customer arrives, Jim spends 5 minutes taking order from the customer. After this, Tim prepares bread and Kim prepares filling for the order. These activities are performed in parallel, and take 7 and 10 minutes respectively. Jim then assembles the bread and filling, which takes 5 minutes of his time. Finally, Tim spends 5 minutes in delivering the order and taking payment. What is the minimum time for an order to be completed in the process
Answer:
22 minutes minimum time
Explanation:
In the given scenario Subway sandwich shop has given its processes and time of each process.
We are to calculate the minimum time it will take to process a order. So we add all the times
Below is breakdown of the process time
Jim take orders 5 minutes
Tim prepares bread and Kim prepares filling for the order 7 - 10 minutes. We use 7 minutes since we are looking for minimum time.
Jim then assembles the bread 5 minutes
Time delivers order and takes payment 5 minutes
Total time = 5 + 7 + 5 + 5 = 22 minuites
Acme-Jones Corporation uses a weighted-average perpetual inventory system. August 2, 40 units were purchased at $27 per unit. August 18, 24 units were purchased at $29 per unit. August 29, 42 units were sold. What was the amount of the cost of goods sold for this sale?
Answer:Cost of goods sold=$1,165.5
Explanation:
Using the weighted-average perpetual inventory system.
August 2 =40 units x $27per unit = $1080
August 18=24units x $29 per unit = $696
Weighted average cost per unit = (1080 + 696)/64 = $27.75per unit
Therefore, Cost of goods sold = $27.75 x 42 = $1,165.5
If the liabilities of a company increased $110,000 during a period of time and equity in the company decreased $37,000 during the same period, what was the effect on the assets?
Answer:
Increase of $73,000
Explanation:
As we know that
The accounting equation is
Assets = Liabilities + Owner's Equity
So it can be said that
Change in Assets = Change in Liabilities + Change in Owner's Equity
Change in Assets = Increase of $110,000 + Decrease of $37,000
Change in Assets = Increase of $73,000
hence, the impact of the asset is $73,000 and the same is to be considered
