Answer:
$21,687.5
Explanation:
Premium on bonds payable = $21,800 - $20,000 = $1,800
Interest payments = 8 years X 2 semiannual interest payments per year = 16 payments
Premium ammortisation = $1,800 / 16 = $112.5
Carrying value of the bond = $21,800 - $112.5 = $21,687.5
The following data are available for product no. CK74, manufactured and sold by Ruby Corporation:Maximum capacity with present facilities 11,000 unitsTotal fixed cost (per period) $ 851,400Variable cost per unit $ 120.00Sales price per unit $ 186.0010. Required informationThe number of units of CK74 that Ruby must sell to break- even is:a. 12,900.b. 4,577.c. 7,095.d. 6,050.
Answer:
Break-even point in units= 12,900 units
Explanation:
Giving the following information:
Total fixed cost (per period) $ 851,400
Variable cost per unit $ 120
Sales price per unit $ 186
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 851,400 / (186 - 120)
Break-even point in units= 12,900 units
Pan Corporation is a company that manufactures and sells baking forms. On 1/1/20, the company purchases a piece of manufacturing equipment for $2,500,000 cash. The expected residual value is $260,000 and the useful life is 5 years. The company expects to produce 8,000,000 forms with the equipment – 2,500,000 forms in 2020; 2,000,000 forms in 2021; 1,500,000 forms in 2022; 800,000 forms in 2023, and 1,200,000 forms in 2024.
Required:
Use the Straight-Line method to find depreciation from 2020 to 2024
Answer:
2020 $700,000
2021 $560,000
2022 $420,000
2023 $224,000
2024 $336,000
Explanation:
Depreciation charge=cost-residual value*number of forms produced in the year/total expected forms.
2020 depreciation=($2,500,0000-$260,000)*2,500,000/8,000,000=$700,000
2021 depreciation=($2,500,0000-$260,000)*2,000,000/8,000,000=$560000
2022 depreciation=($2,500,0000-$260,000)*1,500,000/8,000,000=$420000
2023 depreciation=($2,500,0000-$260,000)*800,000/8,000,000=$224000
2024 depreciation=($2,500,0000-$260,000)*1200,000/8,000,000=$336000
Hadley Bear, Inc. uses a periodic inventory system. At the end of the January 31, 2017, the accounting records for the most popular item in inventory showed the following: Transactions Units Unit Cost Beginning Inventory, Jan 1 350 $1 Purchases January 10 450 $4 Purchase, January 30 200 $7 Hadley Bear sells the units for $20 each. At the end of the period, Hadley Bear has 180 units remaining in inventory. What is the cost of goods sold if Hadley Bear uses the average cost method?
Answer:
COGS= $3,280
Explanation:
Giving the following information:
Beginning Inventory= 350 units for $1 each
Purchases January 10= 450 $4
Purchase, January 30= 200 $7
At the end of the period, Hadley Bear has 180 units remaining in inventory.
First, we need to calculate the number of units sold:
Units sold= total units - ending inventory in units
Units sold= 1,000 - 180
Units sold= 820 units
Now, the average cost:
Average cost= (1 + 4 + 7)/3= $4
COGS= 4*820= $3,280
In order to ensure that a company's ethics code will encourage ethical decision making and behavior, companies need to accomplish two objectives. The first is to communicate the codes to others both within and outside the company. The second is to develop practical ethical standards and procedures specific to the company's line of business.
a) true
b) false
Answer:
a) true.
Explanation:
The option here is chosen to be true because every ethic code is directed to ensure ethical decisions and this case or generally when you provide a clear, comprehensive ethical code for your company, it raises its standard of operation as it enlightens people.
This is to the general public, especially everyone that has business dealings with your company. It should be stated clearly above it that it should be well digested by anyone who intends to work or visit the site or environs. Also these ethics should be seriously be followed religiously by the working staffs of the company, so as to be emulated by other visitors and new intakes.
The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 4,500 per day. FSF supplies hot dogs to local restaurants at a steady rate of 310 per day. The cost to prepare the equipment for producing hot dogs is $60. Annual holding costs are 45 cents per hot dog. The factory operates 295 days a year.
a. Find the optimal run size. (Do not round intermediate calculations. Round your answer to the nearest whole number) Optimal run size
b. Find the number of runs per year.(Round your answer to the nearest whole number) Number of runs
c. Find the length (in days) of a run. (Round your answer to the nearest whole number) Run length (in days)
Answer:
a. The Optimal run size is 5,086 hot dogs
b. The Number of runs per year is 18
c. The Run length is 1 day
Explanation:
a. According to the given data we have the following:
Daily production, p = 4500 per day
Daily demand, u = 310 per day
Number of working days in a year, Tyear = 295 days
Annual demand, D = Daily demand x number of working days; D = 310 x 295; D = 91450
Setup cost, S = $60
Annual holding cost, H = $0.45 per hot dog
So, Optimal run-size can be calculated as follows:
Q* = √ 2 x annual demand x Setup cost / holding cost per unit per year x √daily production / daily production - daily demand
Q* = √2DS / H x √p / p-u
Q* = (√ 2 x 91450 x 60 / 0.45) x (√ 4500 / 4500 - 310)
Q* = (√24386667) x (√1.07)
Q* = (4938.29) x (1.03)
Q* = 5086.44 = 5,086
Therefore, Optimal run size is 5,086 hot dogs
b) The Number of runs per year can be calculated as follows:
Cycle time = Q / u
Cycle time = 5086 / 310 = 16 days
Number of runs = Tyear / cycle time
Number of runs = 295 / 16 = 18
The Number of runs per year is 18
c) The Run length or run time can be calculated as follows:
Run time = Q / p
Run time = 5086 / 4500
Run time = 1.13 = 1
Run length is 1 day
A piece of equipment was acquired on January 1, 2018, at a cost of $36,000, with an estimated residual value of $6,000 and an estimated useful life of six years. The company uses the double-declining-balance method. What is its book value at December 31, 2019
Answer:
Book value at 31 December 2019 = 16000
Explanation:
The double declining balance method is an accelerated form of depreciation. Under this method,the asset is depreciated more in the initial years and less in the later years of estimated useful life.
The formula for depreciation expense per year under this method is,
Depreciation expense = 2 * [(Cost - Accumulated depreciation) / estimated useful life]
Depreciation expense 2018 = 2 * [(36000 - 0) / 6]
Depreciation expense 2018 = 12000
Depreciation expense 2019 = 2 * [(36000 - 12000) / 6]
Depreciation expense 2019 = 8000
Book Value = Cost - Accumulated depreciation
Book Value = 36000 - (12000 + 8000)
Book value at 31 December 2019 = 16000
Anna is separated from her boyfriend, John, while she studies economics and he goes to art school. Even though she wants to call John, Anna is very rational. She realizes that the more she spends on her phone bill, the less money she has left to purchase other goods and services. Anna's demand schedule for phone call to John is given in the table below.
Price (per month) Quantity (Calls per month)
$18 20
14 24
10 28
6 32
2 36
Required:
Using the multipoint curve drawing tool, draw Anna's demand curve for phone calls given the demand schedule above. Properly label your curve.
Answer:
Kindly check attached picture for drawing of Anna demand curve
Harry Smith owns a metal- producing firm that is an unregulated monopoly. After considerable experimentation and research, he finds that the firm’s marginal cost curve can be approximated by a straight line, MC= 60 +2Q, where MC is marginal cost (in dollars) and Q is output. The demand curve for the product is P =100 - Q, where P is the product price (in dollars) and Q is output.A. If Smith wants to maximize profit, what output should he choose? B. What price should he charge?
Answer:
1. 10 units
2. 90 dollars
Explanation:
1. Total revenue = P x Q
= (100 - Q) x Q
= 100 - Q^2
Marginal revenue = dTR/dQ
=100 - 2Q
MR = MC
100 - 2Q = 60 + 2Q
100 - 60 = 4Q
40 = 4Q
Q = 10 units
2. Putting price of Q = 10 in the price equation
P = 100 - Q
P = 100 - 10
Price = 90
The yield to maturity on 1-year zero-coupon bonds is currently 8.5%; the YTM on 2-year zeros is 9.5%. The Treasury plans to issue a 2-year maturity coupon bond, paying coupons once per year with a coupon rate of 12%. The face value of the bond is $100. a. At what price will the bond sell? (Do not round interme
Answer:
$104.47
Explanation:
As per the data given in the question,
Face value = $100
Coupon rate = 12%
Annual coupon = Coupon rate × Face value
= $100 × 12%
= $12
Price = Annual coupon ÷ coupon bond for year 1st + total value ÷ yield to maturity for second year
= $12 ÷ 1.085 + $112 ÷ 1.095^2
= $104.47
Hence, Bond will be sold in $104.47
The 1.085 and 1.095 is come from
= 1 + 8.5%
= 1.085
And,
= 1 + 9.5%
= 1.095
Symon's Suppers Co. has announced that it will pay a dividend of $4.39 per share one year from today. Additionally, the company expects to increase its dividend by 4.2 percent annually. The required return on the company's stock is 11.4 percent. What is the current share price?
Answer:
The current share price is $60.97
Explanation:
The values given are
Symon's super corporation is expected to pay a dividend of $4.39
The company expects to increase its dividend by 4.2percent every year
The required return on the company's stock is 11.4 percent
Therefore, the current share price is
= 4.39/( 11.4/100 + 4.2/100 )
= 4.39/( 0.114 - 0.042)
= 4.39/(0.072)
= 60.97
Thus, the current share price is $60.97
Below is the cash flow of project Alpha. (EOY: end of year) EOY Cash Flow 0 -$200,000 1 $25,000 2 $25,000 3 $50,000 4 $50,000 5 $50,000 6 $50,000 7 $50,000 What is the payback period of this project
Answer:
Payback= 5 years
Explanation:
Giving the following information:
Cash Flow:
0 -$200,000
1 $25,000
2 $25,000
3 $50,000
4 $50,000
5 $50,000
6 $50,000
The payback period is the time required to cover for the initial investment:
Payback= -200,000 + (25,000 + 25,000 + 50,000 + 50,000 + 50,000)
Payback= 5 years
The purpose of many business messages is to make a request or to reply to previously received communication.
Familiarize yourself with the organization of these messages so you can communicate your purpose and achieve a positive outcome.
Read the scenario, and then answer the question.
The office manager asks you for advice on how to structure a request message with numerous questions.
What advice would you give?
Put a question mark after a disguised command.
Ask easy yes or no questions.
Place the most important question first or begin with a summary.
Read the following request message, and then answer the question.
To: Customer Support
From: Helen Martin
Subject: Warranty Information for Netbook Computer
Dear Customer Service,
I need this information by noon tomorrow at the latest. My team has an important presentation to give, and my netbook crashed while we were working on the presentation. I can’t find the warranty information anywhere. So I have a few questions.
Where is my warranty information? How long does it normally take to repair these machines? Do I have to mail the netbook to you, or can I bring it to your local repair shop?
Will you please answer these questions in a timely manner? Thank you in advance for your help.
Regards,
Helen Martin
What is the best revision for the opening of this message?
My team has an important presentation to give, and my netbook crashed while we were working on the presentation. I have to get it repaired soon.
My netbook computer crashed, and I have a few questions regarding repair and warranty information.
I need my questions answered quickly. My netbook crashed, and I can’t find the warranty information anywhere.
In addition to making requests, you will have to respond to requests in the business world.
Answer:
The best revision is :
My team has an important presentation to give, and my netbook crashed while we were working on the presentation. I have to get it repaired soon.
Explanation:
The best revision is :
My team has an important presentation to give, and my netbook crashed while we were working on the presentation. I have to get it repaired soon.
because this includes a summary of the issue encountered this highlights the importance of netbook to be repaired soon as the presentation must be due in a near future and then finally asking for a repair which is mentioned to be required soon.
Pandora invested in the Box Mutual Fund by purchasing 1,000 shares on November 9, Year 1. On the first day of every month, the Box Fund pays a dividend that Pandora elects to have reinvested into the Box Fund. On average, Pandora received five additional shares per month. On December 15, Year 2, Pandora sold off her entire interest in the Box Fund (1,065 total shares). How many of the Box Fund shares sold by Pandora will qualify for the long-term holding period
Answer:
Pandora
Box Fund shares qualifying for the long-term holding period:
Total shares qualifying = 1,010
This is made up of:
Initial shares bought on Nov. 9 = 1,000
Reinvested shares on Dec. 1 5
Reinvested shares on Jan. 1 5
The remaining 55 (1,065 - 1,010) shares qualify for short-term holding periods as they lasted less than one year.
Explanation:
A long-term holding period is one year or more with no expiration. This implies that investment, including dividends paid into the account, that has a holding of less than one year will be a short-term hold.
The holding period of an investment is used to determine the taxing of capital gains or losses.
Euclid Corporation processes a patented chemical, P-1, and produces two outputs, P-11 and P-12. In August, the costs to process P-1 are $165,000 for materials and $270,000 for conversion costs. P-11 has a sales value of $648,000 and P-12 has a sales value of $162,000. Required Using the net realizable value method, assign costs to P-11 and P-12 for August.
Answer:
$348,000 and $87,000
Explanation:
According to the scenario, computation of the given data are as follow:-
We can calculate the assign cost for august by using following formula:-
Total Joint Cost = P1 Material Cost + P1 Conversion Cost
= $165,000 + $270,000
= $435,000
Cost Assigned to P11
= Sales Value of P11 ÷ (Sales Value of P11 + Sales Value of P12) × Total Joint Cost
= $648,000 ÷ ($648,000 + $162,000) × $435,000
= $648,000 ÷ $810,000 × $435,000
= 0.8 × $435,000
= $348,000
Cost Assigned to P12
= Sales Value of P12 ÷ (Sales Value of P11 + Sales Value of P12) × Total Joint Cost
= $162,000 ÷ ($648,000 + $162,000) × $435,000
= $162,000 ÷ $810,000 × $435,000
= 0.2 × $435,000
= $87,000
The joint cost is the cost of two or more products to make a single product. It includes the product cost like direct material, direct labor, etc
What is a summary jury trial?
A. An abbreviated trial that leads to a nonbinding jury verdict.
B. An unabbreviated trial that leads to a binding jury verdict.
C. An unabbreviated trial that leads to a nonbinding jury verdict.
D. An abbreviated trial in which only a few witnesses are called to the stand.
E. Both an abbreviated trial that leads to a nonbinding jury verdict and an abbreviated trial in which only a few witnesses are called to the stand.
Answer:i say E
Explanation:
Because no matter what you would still have to attend the jury trial
Platt Company produces one product, a putter called PAR-putter. Platt uses a standard cost system and determines that it should take one hour of direct labor to produce one PAR-putter. The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $500,000 comprised of $200,000 of variable costs and $300,000 of fixed costs. Platt applies overhead on the basis of direct labor hours. During the current year, Platt produced 85,000 putters, worked 89,000 direct labor hours, and incurred variable overhead costs of $160,000 and fixed overhead costs of $300,000.
1. Compute the pre-determined variable overhead rate and the pre-determined fixed overhead rate.
Variable Overhead Rate
Fixed Overhead Rate
2. Compute the applied overhead for Platt for the year.
Applied Overhead
3. Compute the total overhead variance
Total Overhead Variance
Answer:
Instructions are below.
Explanation:
Giving the following information:
The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $500,000 comprised of $200,000 of variable costs and $300,000 of fixed costs.
Platt produced 85,000 putters, worked 89,000 direct labor hours, and incurred variable overhead costs of $160,000 and fixed overhead costs of $300,000.
First, we need to calculate the estimated overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Variable= 200,000/100,000= $2 per direct labor hour
Fixed= 300,000/100,000= $3 per direct labor hour
Total= $5
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 89,000*5= $445,000
Finally, the total overhead variance:
TOTAL OVERHEAD VARIANCE = Actual Factory Overhead - Standard Factory Overhead
TOTAL OVERHEAD VARIANCE= 460,000 - 445,000
TOTAL OVERHEAD VARIANCE = $15,000 unfavorable
Baden Company has gathered the following information. Units in beginning work in process 0 Units started into production 44,400 Units in ending work in process 8,200 Percent complete in ending work in process: Conversion costs 40 % Materials 100 % Costs incurred: Direct materials $79,920 Direct labor $65,500 Overhead $110,186Instructions (a) Compute equivalent units of production for materials and for conversion costs. (b) Determine the unit costs of production. (c) Show the assignment of costs to units transferred out and in process.
Answer:
Explanation:
Materials Conversion Cost
Units transferred out = (44,400-8,200) = 36,200 36,200
Units in ending work in progress(8200*40%) 8200 3280
equivalent units of production 44,400 39,480
b)
Units cost of production
Costs incurred (65,500+110,186) 79,220 175,686
units of production 44,400 39,480
1.78 4.45
C)
Units transferred out = 36,200 *1.78 = 64,436
36,200*4.45 = 161,090
225,526
Units in ending work in progress - (8200*1,78)+(3280*4.45)
=14,596+14,596 = $29,192
Examine the relationship between total spending by government and consumers in a nation and the location of the countries gdp on the business cycle
Answer and Explanation:
Consumer as well as government overall expenditure seems to be a significant determinant of economic growth during a market. Unless the overall spending increases, the demand changes positively.Hence, just before the total individual and corporate expenditure in something like a firm increases, it demonstrates that perhaps the country's affairs cycle is going to expand, and then when total expenditure drops significantly, it illustrates that the financial sector's business period is going via compression.So that it is the right answer.
Cron Corporation is planning to issue bonds with a face value of $700,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Cron uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent.
1. What was the issue price on January 1 of this year ?2. What amount of interest expense should be recorded on June 30 and December 31 of this year?3. What amount of cash should be paid to investors June 30 and December 31 of this year?4. What is the book value of the bonds on June 30 and December 31 of this year?
Answer:
issue $700,000 in 5 year bonds that pay 13% semiannual coupons (coupon = $45,500)
market interest rate 12%, so bonds will be sold at a premium
1) What was the issue price on January 1 of this year?
issue price = present value of face value + present value of interest payments
present value of face value = $700,000 / (1 + 6%)¹⁰ = $390,876present value of annuity = $45,500 x {1 - [1 / (1 + 6%)¹⁰]} / 6% = $334,884issue price = $390,876 + $334,884 = $725,760
journal entry to record issuance of the bonds:
Dr Cash 725,760
Cr Bonds payable 700,000
Cr Premium on bonds payable 25,760
2) What amount of interest expense should be recorded on June 30 and December 31 of this year?
amortization of bond premium June 30 = ($725,760 x 6%) - ($700,000 x 6.5%) = $43,546 - $45,500 = -$1,954
Journal entry June 30th, first coupon payment:
Dr Interest expense 43,546
Dr Premium on bonds payable 1,954
Cr Cash 45,500
amortization of bond premium December 31 = ($727,714 x 6%) - ($700,000 x 6.5%) = $43,663 - $45,500 = -$1,837
Journal entry December 31st, second coupon payment:
Dr Interest expense 43,663
Dr Premium on bonds payable 1,837
Cr Cash 45,500
3) What amount of cash should be paid to investors June 30 and December 31 of this year?
$45,500 per coupon payment
4) What is the book value of the bonds on June 30 and December 31 of this year?
Book value on June 30th:
Bonds payable $700,000
Premium on bonds payable $23,806
Book value on December 31st:
Bonds payable $700,000
Premium on bonds payable $21,969
1. Issue price = $390,876 + $334,884 = $725,760
2. Amortization of bond premium June 30 = -$1,954
3. $45,500 per coupon payment
Prepare the journal entry
When the Issue $700,000 in 5 year bonds that pay 13% semiannual coupons (coupon is = $45,500)
Then the market interest rate is 12%, so bonds will be sold at a premium
1) The issue price is = present value of face value + present value of interest payments
After that, present value of face value is = $700,000 / (1 + 6%)¹⁰ = $390,876
Then, present value of annuity = $45,500 x {1 - [1 / (1 + 6%)¹⁰]} / 6% = $334,884
Now, issue price is = $390,876 + $334,884 = $725,760
The journal entry to record issuance of the bonds:
Dr Cash 725,760
Cr Bonds payable 700,000
Cr Premium on bonds payable 25,760
2) The amortization of bond premium June 30 is = ($725,760 x 6%) - ($700,000 x 6.5%) = $43,546 - $45,500 = -$1,954
Then, The Journal entry June 30th, first coupon payment:
Dr Interest expense 43,546
Dr Premium on bonds payable 1,954
Cr Cash 45,500
Now, amortization of bond premium December 31 is = ($727,714 x 6%) - ($700,000 x 6.5%) = $43,663 - $45,500 = -$1,837
Then, prepare the Journal entry December 31st, second coupon payment:
Dr Interest expense 43,663
Dr Premium on bonds payable 1,837
Cr Cash 45,500
3) $45,500 per coupon payment
4) The Book value on June 30th:
Bonds payable $700,000
Premium on bonds payable $23,806
Book value on December 31st:
Bonds payable $700,000
Premium on bonds payable $21,969
Find more information about Journal entry here:
https://brainly.com/question/8913038
Sara King and Ray Lee are copartners in Kingslee Company. The partnership agreement provides for (1) salary allowances of $6,000 to King and $4,000 to Lee, (2) interest allowances of 10% on capital balances at the beginning of the year, and (3) dividing the remainder equally. Capital balances on January 1 were King $30,000, and Lee $20,000. In 2017, partnership net income is $20,000. The division of net income to Sara King partner.
A. Prepare a schedule showing the distribution of net income.
B. Journalize the allocation of net income.
Answer: Please see below for answer
Explanation:
A)Schedule for The distribution of income
Net income = $20,000
the division of net income
Sara King Ray Lee Total
salary allowance $6,000 $4000 $10,000
interest on each capital partner"s allowance
10% of 30,000 for Sara $3000
10% of 20000 for Ray $2000
total interest allowance $5,000
Total $9,000 $6,000 $15,000
Remaining income = $20,000 -$15,000 =$5,000
Sara = 50% x 5,000 2,500
Ray = 50% x 5,000 $2500
Total remainders $5,000
Total $11,500 $8,500 $20,000
b)Journal for allocation of net income to partners capital
Account Debit Credit
Income summary $20,000
Sara King $11,500
Ray lee $8,500
The two processes that must occur before moving forward to planning the project are:
a. Collect requirements and define scope
b. Train project manager and select project
c. Identify project deliverables and prepare scope statement
d. Identify stakeholders and develop project charter
Answer:
Two processes before moving forward to planning the project are:
d. Identify stakeholders and develop project charter.
a. Collect requirements and define scope
Explanation:
Project Planning is an important first step to executing a project to achieve desired objectives. But, before the proper project planning is started, there are processes that make planning projects easier and smoother. First, the stakeholders must be identified to enable the development of project charter. A project charter describes a project, identifies the objects, how the objectives and the project will be carried out, and the stakeholders. Second, project requirements must be collected. These help to define the scope of the project.
As of December 31, 2020, the equipment had a salvage value of $4,000 and is expected to produce 100,000 additional units over its remaining useful life. Urithiru uses an activity-based depreciation method and the equipment produced 24,000 units in 2021. At December 31, 2021, the fair value of the equipment is $16,000 and the undiscounted expected future net cash flow is $18,000.
How much impairment loss or loss recovery would be recognized at 12/31/2021?
Answer:
Hi, the question you have provided has missing information, however important principles are explained below :
Impairment loss is the excess of Carrying Amount of an asset over its Recoverable Amount.
Carrying Amount
Carrying Amount = Cost - Accumulated Depreciation
The question has missing information on the cost of the equipment.
However the formula to calculate depreciation is :
Depreciation Expense = (Cost - Salvage Value) × Activity during the year / Estimated Total Activity
Recoverable Amount
Is the higher of :
Fair Value less Costs to sale or,Value in use (discounted expected future net cash flow)The question provided an undiscounted expected future net cash flow of $18,000 which needs to be discounted using the company`s cost of capital to get the Value in use.
Then determine the recoverable amount.
Test for Impairment
If Carrying Amount > Recoverable Amount, then the asset is impaired
Journal Entry
Debit : Impairment loss expense with the amount of impairment (the excess)
Credit : Accumulated Impairment loss with the amount of impairment (the excess)
On February 1, 2021, Rosalind Corp. lends cash and accepts a $3,800 note receivable that offers 10% interest and is due in six months. How much interest revenue will Rosalind Corp. report during 2021? (Do not round intermediate calculations.)
Answer:
$190
Explanation:
Interest Revenue is the form of income which is earned by lending some money or investing in debt securities.
As the Note is issued on February 1, 2021 and it will expire on August 1, 2021.
As both dates lies in 2021, so all the interest earned from note receivable will be reported as interest revenue.
Interest Revenue = $3,800 x 10% x 6/12 = $190
Morris Company applies overhead at 20% of direct labor costs. Actual overhead costs for the year totaled $380,000, and actual direct labor costs totaled $1,800,000. At year-end, the balance in the Factory Overhead account is a:
Answer:
$20,000 debit balance
Explanation:
Overhead is meant to absorbed at 20% of direct labor costs
absorbed overhead=20%*direct labor costs
direct labor costs is $1,800,000
absorbed overhead as a percentage of labor costs=20%*$1,800,000=$360,000
Balance in factory overhead account=actual overhead-overhead absorbed
actual overhead is $380,000
balance in factory overhead account=$380,000-$360,000=$20,000
The balance in factory overhead account is $20,000 debit balance since the amount absorbed is less than actual,an additional cost of $20,000 needs to be recognized
production generated the following activity in Chopper Chassis Company's Work-in-Process Inventory account: LOADING...(Click the icon to view the activity.) Additionally, Chopper has completed Jobs 142 and 143, with total costs of $ 46 comma 000 and $ 50 comma 000, respectively. Read the requirementsLOADING.... Requirement 1. Prepare the journal entry for production completed in June. (Prepare a single journal entry for this event. Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit June C
Answer:
Finished Goods : Job 142 $ 46,000 (debit)
Finished Goods : Job 143 $ 50,000 (debit)
Work In Process : Job 142 $ 46,000 (credit)
Work In Process : Job 143 $ 50,000 (credit)
Explanation:
During Production all Costs Incurred are accumulated in the Work In Process Account.
Once the Production is Complete and Jobs are Transferred to Finished Goods, the Costs in Work In Process Account is De-recognized. Consequently Costs are recognized in Finished Goods Inventory for Valuation purposes.
These cost would later form part of Cost of Sales when the Jobs are Finally Sold to the Customer.
On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 24,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2021, Brisbane purchased 16,000 shares of common stock on the open market as treasury stock paying $32 per share. Brisbane sold 5,200 treasury shares on September 30, 2021, for $37 per share. Net income for 2021 was $172,905. Also outstanding during the year were fully vested incentive stock options giving key officers the option to buy 42,000 common shares at $32. The market price of the common shares averaged $42 during 2021.
Required: Compute Brisbane's basic and diluted earnings per share for 2021.
Answer:
Basic Earnings per share = $0.81
Diluted Earnings per share = $0.59
Explanation:
Basic Earnings per share = Earnings Attributable to Holders of Common Stock / Weighted Average Number of Common Stocks
Earnings Attributable to Holders of Common Stock Calculation :
Net income $172,905
Less Preference Dividend (24,000× $50×7%) ($84,000)
Earnings Attributable to Holders of Common Stock $88,905
Weighted Average Number of Common Stocks Calculation :
Common Stocks 1 January 2021 100,000
Add Common Stocks February 28, 2021 13,333
Less Common Stocks September 30, 2021 (3,640)
Weighted Average Number of Common Stocks 109,693
Basic Earnings per share = $88,905 / 109,693
= $0.81
Diluted Earnings per share = Adjusted Earnings Attributable to Holders of Common Stock / Adjusted Weighted Average Number of Common Stocks
Adjusted Earnings Attributable to Holders of Common Stock Calculation :
Net income $172,905
Less Preference Dividend (24,000× $50×7%) ($84,000)
Earnings Attributable to Holders of Common Stock $88,905
Adjusted Weighted Average Number of Common Stocks Calculation :
Weighted Average Number of Common Stocks 109,693
Add incentive stock options 42,000
Adjusted Weighted Average Number of Common Stocks 151,693
Diluted Earnings per share = $88,905 / 151,693
= $0.59
Income Statement The revenues and expenses of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned $900,000 Office expense 300,000 Miscellaneous expense 15,000 Wages expense 450,000 Prepare an income statement for the year ended May 31, 20Y6. Paradise Travel Service Income Statement For the Year Ended May 31, 20Y6 $ Expenses: $ Total expenses $
Answer:
Net income is $135,000
Explanation:
The below is the Paradise Travel Service Income Statement For the Year Ended May 31, 20Y6 .
Fees earned $900,000
less:
Office expense $300,000
miscellaneous expense $15,000
wages expense $450,000
Total expense for the year ($765,000)
Net income $135,000
The net income is computed by deducting office,miscellaneous and wages expenses from the total fees earned during the year,hence the resulting net income thereafter is $135,000.
The net income would be added to opening balance of retained earnings in order to compute the closing retained earnings for the year
At the end of the current year, $59,500 of fees have been earned but have not been billed to clients. a. Journalize the adjusting entry to record the accrued fees. If an amount box does not require an entry, leave it blank. b. If the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary?
Answer:
a.
Cash $59,500 (debit)
Deferred Revenue $59,500 (credit)
Being Fees Earned But not Billed to Customers
b.
Yes adjusting entry would be necessary. Because there has been movement of cash
Explanation:
The Accrual Principle states that transactions are recorded as they occur not as they are paid.
The Effect of the transaction in the question is to Increase the Assets of Cash while Recognizing the Liability that the company has to the customer in Deferred Revenue.
At the later date when the Company Bills the Clients, the Deferred Revenue would be Eliminated and the Revenue Account be Recognized.
Gilberto Company currently manufactures 70,000 units per year of one of its crucial parts. Variable costs are $1.80 per unit, fixed costs related to making this part are $70,000 per year, and allocated fixed costs are $35,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $2.90 per unit guaranteed for a three-year period.
Calculate the total incremental cost of making 70,000 and buying 70,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?
Answer:
The company should continue making the unit. It is cheaper than buying by $7,000.
Explanation:
Giving the following information:
Variable costs are $1.80 per unit
fixed costs= $70,000 per year
Purchasing price per unit= $2.90
I will assume that the fixed costs (not allocated) are avoidable.
First, we need to calculate the total cost of making the unit:
Total cost= 70,000*1.8 + 70,000= $196,000
Buying:
Total cost= 70,000*2.9= $203,000
The company should continue making the unit. It is cheaper than buying by $7,000.
If an economy’s GDP falls, then it must be the case that the economy’s Group of answer choices income and saving fall. income and market value of all production both fall. income falls and market value of all production rises income rises and market value of all production falls.
Answer: Income and saving fall
Explanation:
A fall or contraction in the Gross Domestic Product (GDP) of a nation leads to business earnings decreasing and by extension the wages of people as businesses would have to cut back.
As people's income falls, they will have to consume more of their income in order to afford their needs and wants. This will leave less of their income remaining for Savings so these fall as well.
