Answer:
Socialism; a sociaty that is regulated by the community as a whole
Following are the merchandising transactions for Dollar Store:Nov. 1 Dollar Store purchases merchandise for $1,500 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1.5 Dollar Store pays cash for the November 1 purchase.7 Dollar Store discovers and returns $200 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund.10 Dollar Store pays $90 cash for transportation costs for the November 1 purchase.13 Dollar Store sells merchandise for $1,600 with terms n/30. The cost of the merchandise is $800.16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $160 and cost $80: the items were not damaged and were returned to inventory.Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method.
The journal entries are shown below.
Journal entries;No Date General Journal Debit Credit
1 1-Nov Merchandise invnetory 1,500
Accounts payable 1,500
2 5-Nov Accounts payable 1,500
Merchandise inventory 30
cash 1470
3 7-Nov Cash 196
Merchandise inventory 196
4 10-Nov Merchandise inventory 90
cash 90
5 13-Nov Accounts receivable 1,600
Sales 1,600
6 cost of goods sold 800
Merchandise inventory 800
7 16-Nov Sales return and allowance 160
Accounts receivable 160
8 merchandise inventory 80
cost of goods sold 80
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A compay operates plants in both the United States (where capital is relatively cheap and labor is reltively expensive) and Mexico (where labaor is relatively cheap and capital is relatively expensive) Under what circumstances will the inpupt choice be relatively similar?
Answer: The input choice will be relatively similar when prices and the marginal product of both capital and labor are equal.
Explanation:
For a cost minimizing output, it is required for a firm to employ resoruces where the MPl/Pl = MPk/Ok
Note that:
MPl = marginal product of labor
Pl = labor price
MPk = marginal product of capital
Pk = capital price
A firm that has cheap capital resources will employ more capital likewise the company that has cheap labor resources will employ more of labor.
The input choice will be relatively similar when prices and the marginal product of both capital and labor are equal.
The period manufacturing costs of a company is comprised of $2,000,000 in direct materials, $1,000,000 in direct labor, and $500,000 in overhead, resulting in 7,000 units of product. Manufacturing operations is consisted of two processes, machining and assembly. Machining takes up 40% of direct materials, 60% of direct labor, and 50% of overhead. Provide a hybrid manufacturing cost statement, containing combined activity based costing and process costing.
Answer:
The Direct material cost per unit is = 285.714 per unit
The Direct labor per unit is= 142.857 per unit
The Overhead cost per unit is = 71.4285 per unit
Explanation:
Solution
We recall that:
The total direct material= $2000000
The total direct labor= $1000000
The units in products = 7000 units
The total Overheads= $500000
Now,
The direct materials on machinery is = $ 800,000(40%)
The direct labor on machinery is= $ 600,000(60 %)
The machinery on overheard is = $ 250,000(50 %)
The direct materials on assembly is = $ 1200,000
The Direct labor on assembly is = $ 400,000
The Overhead on assembly is = $ 250,000
Thus,
The hybrid manufacturing cost statement is represented or shown below
Particular Machinery (40%)in $ Assembly (60%)in $ Total in $
Now,
Particular = Direct material,
Machinery (40%)in $ = 800000
Assembly 60% in $ = 1200000
Total in $ =2000000
Grand total = 1650000
Particular = labor
Machinery (40%)in $ = 600000
Assembly 60% in $ = 400000
Total in $ = 1000000
Grand total = 1850000
Particulars = Overhead
Machinery (40%)in $ =250000
Assembly 60% in $ = 250000
Total in $ = 500000
Grand total = 3500000
Thus,
The Direct material cost per unit = 2000000/7000 = 285.714 per unit
The Direct labor per unit = 1000000/700 = 142.857 per unit
The Overhead cost per unit = 500000/7 = 71.4285 per unit
Cutter Enterprises purchased equipment for $57,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $5,700. Using the double-declining-balance method, depreciation for 2021 and the book value at December 31, 2021, would be: Multiple Choice $20,520 and $33,780 respectively. $22,800 and $34,200 respectively. $20,520 and $36,480 respectively. $22,800 and $28,500 respectively.
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Purchasing price= $57,000
Useful life= five-year
Residual value= $5,700.
To calculate the depreciation expense under the double-declining balance, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= 2*[(57,000 - 5,700)/5]
Annual depreciation= $20,520
Book value= 57,000 - 20,520
Book value= $36,480
Frank and Bob are equal members in Soxy Socks, LLC. When forming the LLC, Frank contributed $57,000 in cash and $57,000 worth of equipment. Frank's adjusted basis in the equipment was $42,000. Bob contributed $57,000 in cash and $57,000 worth of land. Bob's adjusted basis in the land was $23,000. On 3/15/X4, Soxy Socks sells the land Bob contributed for $65,000. How much gain (loss) related to this transaction will Bob report on his X4 return
Answer:
The gain (loss) related to this transaction will Bob report on his X4 return is $38,000
Explanation:
Solution
Given that
The value of land = 57,000
Less: Bob's Adjusted Basis in the land is = -$23,000
The Built in Gain allocated to BOB = $34,000
Now,
The consideration in sales = $65,000
Less: Land Value is = -57000
Both members gain to be allocated= 8000
Hence,
The Total Gain Allocated to BOB is = 34000+(8000*50%) =
34000 = 4000
= 38,000
Note: The original $34000 of built-in gain on the contributed land must be given to the contributing partner which is Bob.
The remaining $8000 of gain must be shared equally between Bob and Frank.
So, Bob will report $38000 gain ($34,000 + (50% × $8,000)) from this transaction on his returns
The following data apply to Grullon-Ikenberry Inc. (GII): Value of operations $1,000, Short-term investments $100, Debt $300, Number of shares 100; The company plans on distributing $50 million as dividend payments. What will the intrinsic per share stock price be immediately after the distribution?pital-budget-850-000-wants-maintain-target-capital-structure-35-debt-65--q3670174
Answer:
1) $6.32
2) $7.50
3) $6.65
4) $7.35
The correct option is the second one ,$7.50
Explanation:
The value of operations is $1,000
If dividends of $50 million is paid,such cash would be paid would be gotten from short-term investments of $100 million since it is easily convertible to cash without losing a significant portion of its value,hence the short term investments reduce to $50 million
$ million
Value of operations $1000
plus value of non-operating assets $50
Value of firm $1050
less value of debt ($300)
Intrinsic value of the firm $750
Intrinsic value of share=$750/100=$7.5
The intrinsic value per share is the total value attributable to common stock divided by the number of common stock in issue.
a semiannual interest of 3.5%. Any money he invests would have to be left in the fund for at least five years if he wanted to withdraw it without penalty. a) What is the nominal interest rate on this investment? b) What is the annual effective interest rate? c) If James deposits $8,000 in the fund now, how much will it be worth in five years?
Answer:
Results are below.
Explanation:
Giving the following information:
The semiannual interest of 3.5%.
A) We need to calculate the nominal interest rate:
Nominal interest rate= 0.035/2= 0.0175
B) Real interest rate:
Real interest rate= (1.0175^2) - 1= 0.03531
It compounds interest twice a year. Therefore, is higher
C) Investment= $8,000
We will use the following formula:
FV= PV*(1+i)^n
n= 10
i= 0.175
PV= 8,000
FV= 8,000*(1.0175^10)
FV= $9,515.56
As sales exceed the break‑even point, a high contribution‑margin percentag________.
a. increases profits slower than does a low contribution-margin percentage.
b. increases profits faster than does a low contribution-margin percentage.
c. decreases profits at the same rate as a low contribution-margin percentage.
d. increases profits at the same rate as a low contribution-margin percentage.
Answer: b. increases profits faster than does a low contribution-margin percentage
Explanation:
Contribution Margin refers to the amount of sales left after the Variable Costs of a good has been removed from it. That means Contribution Margin is simply Sales less Variable Costs. It helps to check how much is left to deal with Fixed Costs and how much profit remains after.
The Break-Even Point in sales refers to the point where Total Costs is equal to Total Revenue. At this point both variable costs and fixed costs have been covered by the Revenue.
If you get to this Break-Even Point then, that means you don't have to worry about Fixed Costs anymore and your only worry is the Variable Costs which are present per good. At this point therefore, a Higher Contribution Margin percentage tells that Variable Costs are quite less than sales, this would enable a company to gain profit faster because Fixed Costs are out of the way and anything made over Variable Costs now is Profit.
5x+2y=2
2x+y-z=0
2x+3y-z=3
Answer:
happy be happy hggh
Explanation:
On January 2, 2021, Crane Company issued at par $9300 of 7% bonds convertible in total into 1000 shares of Crane's common stock. No bonds were converted during 2021. Throughout 2021, Crane had 1000 shares of common stock outstanding. Crane's 2021 net income was $4100, and its income tax rate is 25%. No potentially dilutive securities other than the convertible bonds were outstanding during 2021.
Crane's diluted earnings per share for 2021 would be _________ (rounded to the nearest penny)
Answer:
$2.29 per share
Explanation:
According to the scenario, computation of the given data are as follow:-
We can calculate the diluted earnings per share by using following formula:-
If Bonds Are Converted Net of Tax, Saving in Interest = ( Issued at Par × Rate of Bond) × (1 - Income Tax Rate)
= ( $9,300 × 0.07) × (1 - 0.25)
= $651 × 0.75 = $488.25
If Bonds Converted, Total Earnings = Net Income + Saving in interest
= $4,100 + $488.25
= $4,588.25
Total of outstanding share = 1,000 + 1,000 = 2,000
Diluted Earnings Per Share For 2021 = Total Earnings ÷ Total of Outstanding Share
= $4,588.25 ÷ 2,000
= $2.29 per share
Moki Hunt recently purchased Swift Waters Adventures, a kayaking and canoeing rental business near the Salt River in Arizona. Swift Waters Adventures had been in operation for five years and was located in an ideal area. Even though the winters in the area can be cold, kayaking and canoeing activities are generally popular year-round. After two months of operation, it became clear why the previous owners had sold the business. While the business appeared to be ideally located, sales were extremely disappointing.
Before administering the questionnaire, Moki discovered through talking to other sports rental businesses that, although retired males made up a small percentage of the area's population, they often rented kayaks and canoes. In light of this, Moki decided to include a minimum of 25 percent retired males in his sample. The final choice of respondents was left up to the interviewers. This sampling method is known as ____ sampling.
a. quota
b. stratified
c. random
d. representative
e. area
Answer:
a. quota
Explanation:
Quota sampling can be described as a non-probability sampling method whereby a specific attribute possessed by respondents are looked for by the researchers, and then a tailored sample which represents a proportion or percentage of the population of interest is taken.
Therefore, the decision by Moki to include a minimum of 25 percent retired males in his sample is an example of quota sampling.
In a democratic capitalist environment the price mechanism automatically becomes the planning tool for its homeostasis; what is the significance of the public sector in this environment?
Answer:
In a market economy, the price mechanism is indeed the primary coordinator of the decisions of buyers and sellers, because the price for goods and services adjust to an equilibrium point, where demand and supply are equal.
However, the public sector still has two important functions in this enviroment:
Correcting market failures - a market failure is a situation in which the market does not produce a good outcome. An example of market failure is pollution. Market failures can be corrected by government intervention, for example, by setting anti-pollution regulations.Providing public goods - some public goods are not provided by the private sector because they are not profitable. The public sector can therefore step in and provide this type of goods.Cellular Access Inc., is a cellular telephone service provider that reported net operating profit after tax (NOPAT) of $ 250$250 million for the most recent fiscal year. The firm had depreciation expenses of $ 100$100 million, capital expenditures of $ 200$200 million, and no interest expenses. Working capital increased by $ 10$10 million. Calculate the free cash flow for Cellular Access for the most recent fiscal year.
Answer:
Therefore, the free cash flow for Cellular Access for the most recent fiscal year is $ 140 million
Explanation:
Given;
Net operating profit after tax (NOPAT) = $ 250
Depreciation expenses = $100 million
Capital expenditures = $200 million
Net working capital increment = $10 million
Free Cash Flows = net operating profit after tax + Depreciation - capital expenditure - Increase in net working capital
Free Cash Flows = ($250 + $100 - $200 - $10) million Free Cash Flows = $ 140 million
On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April:
Opened a business bank account with a deposit of $46,000 in exchange for common stock.
Purchased office supplies on account, $3,180.
Received cash from fees earned for managing rental property, $8,940.
Paid rent on office and equipment for the month, $3,910.
Paid creditors on account, $1,450.
Billed customers for fees earned for managing rental property, $7,240.
Paid automobile expenses for month, $870, and miscellaneous expenses, $430.
Paid office salaries, $2,750.
Determined that the cost of supplies on hand was $1,880; therefore, the cost of supplies used was $1,300.
Paid dividends, $2,610.
Required:
1. Indicate the effect of each transaction and the balances after each transaction:
For those boxes in which no entry is required, leave the box blank.
For those boxes in which you must enter subtractive or negative numbers use a minus sign.
2. Stockholders’ equity is the right of stockholders (owners) to the assets of the business. These rights are increased by issuing common stock and revenues and decreased by dividends and expenses.
3. Determine the net income for April.
$
4. How much did April’s transactions increase or decrease stockholders’ equity?
Increased by $
Answer:
Morgan Jones
1. Effect of each transaction and the balances after each transaction:
a) Assets are increased by $46,000 and Equity is increased by $46,000.
Balances: Cash $46,000 and Common Stock $46,000
b) Assets are increased by $3,180 and Liabilities are increased by $3,180.
Balances: Office Supplies $3,180 and Accounts Payable $3,180
c) Assets are increased by $8,940 and Equity is increased by $8,940
Balances: Cash $54,940 and Retained Earnings $8,940
d) Assets are reduced by $3,910 and Equity is reduced by $3,910
Balances: Cash $51,030 and Retained Earnings $5,030
e) Assets are reduced by $1,450 and Liabilities are reduced by $1,450
Balances: Cash $49,580 and Accounts Payable $1,730
f) Assets are increased by $7,240 and Equity is increased by $7,240
Balances: Accounts Receivable $7,240 and Retained Earnings $12,270
g) Assets are reduced by $4,050 and Equity is reduced by $4,050
Balances: Cash $45,530 and Retained Earnings $8,220
Automobile Expenses = $870
Miscellaneous Expenses = $430
Office Salaries = $2,750
Total $4,050
h) Assets are reduced by $1,300 and Equity is reduced by $1,300
Balances: Office Supplies $1,880 and Retained Earnings $6,920
i) Assets are reduced by $2,610 and Equity is reduced by $2,610
Balances: Cash $42,920 and Retained Earnings $4,310
2. Stockholders' Equity:
Common Stock $46,000
Retained Earnings $4,310
Total Equity = $50,310
3. Net Income for April = $6,920
4. How much April's transactions increased or decreased stockholder' equity: increased by $4,310
Explanation:
a) Effect of transactions: Each transaction affects at least two accounts, one or two of assets and one or two of liabilities and equity. The accounting equation is represented by assets = liabilities + equity. This equation is always in balance by each transaction because of the double effects of each transaction.
b) Assets are the resources owned by the entity while liabilities and equity represent resources supplied by creditors and those belonging to the stockholders in the form of resources supplied to and generated by the entity. At each point in time, the assets belong proportionately to either the creditors (liabilities) or the stockholders (equity).
National Income Accounts (dollar figures are in billions)
Expenditures for consumer goods and services $2,850
Exports $300
Government purchases of goods and services $810
Social Security taxes $295
Net investment $510
Indirect business taxes $445
Imports $450
Gross investment $700
Corporate income taxes $190
Personal income taxes $875
Corporate retained earnings $210
Net foreign factor income $0
Government transfer payments to households $780
Net interest payments to households $20
On the basis of Table 5.2, GDP is:_______.
A) $2,090 billion.
B) $4,210 billion.
C) $4,400 billion.
D) $4,020 billion.
Answer:
B) $4,210 billion.
Explanation:
We will use the expenditure approach to calculate GDP. The formula is:
GDP = Consumption + Investment + Government Spending + Net Exports (Exports - Imports)
Now we take from the question the relevant information:
Consumption
Expenditures for consumer goods and services $2,850
Investment
Gross investment $700
Government Spending
Government purchases of goods and services $810
Net Exports
Exports $300
Imports $450
Net Exports: ($150)
Now, we plug these amounts into the formula:
GDP = $2,850 + $700 + $810 + ($150)
GDP = $4,240 Billion
A person may be willing to pay more than the fundamental value of a stock today if he or she believes that someone else will pay even more for it in the near future. When many people purchase stocks based on this reasoning, the stock market can develop:
Answer:
A speculative bubble
Explanation:
A speculative bubble is simply said to be a sharp increase in the value of an asset within a known industry, commodity e.t.c. due to the wide speculation that a property will be more valuable in the near future, there will be a spike in that commodity since a lot of people want to purchase it. This bubble exist in different sectors especially in the stock market and in the economy
Management now needs to determine the number of engines to be produced in each plant in each month, as well as the number of engines each plant should sell to each assembly plant in June and July. Define decision variables and formulate to problem to maximize the total profit (total sales revenue minus sum of production costs, inventory costs, backordering costs, and shipping costs).
Answer:
yes
Explanation:
shhshsh I am not sure if you are not the intended recipient you are not the intended recipient
Bridgeport Company reported the following amounts in the stockholders’ equity section of its December 31, 2016, balance sheet.Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000Common stock, $5 par (110,000 shares authorized, 22,000 shares issued) 110,000Additional paid-in capital 132,000Retained earnings 419,000Total $861,000During 2017, Bridgeport took part in the following transactions concerning stockholders’ equity.1. Paid the annual 2016 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2016.2. Purchased 1,700 shares of its own outstanding common stock for $41 per share. Bridgeport uses the cost method.3. Reissued 600 treasury shares for land valued at $28,400.4. Issued 480 shares of preferred stock at $103 per share.5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $44 per share.6. Issued the stock dividend.7. Declared the annual 2017 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2018.A) PREPARE THE JOURNAL ENTRIES TO RECORD TRANSACTIONS ABOVEB) Prepare the December 31, 2017, stockholders’ equity section. Assume 2017 net income was $312,000.
Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:
Ending Balance Beginning Balance
Cash $80,800 $96,800
Accounts receivable 65,400 70,400
Inventory 87,800 80,000
Total current assets 234,000 247,200
Property, plant, and equipment 234,000 224,000
Less accumulated depreciation 78,000 56,000
Net property, plant, and equipment 156,000 168,000
Total assets $390,000 $415,200
Accounts payable $51,200 $91,000
Income taxes payable 39,800 51,200
Bonds payable 96,000 80,000
Common stock 112,000 96,000
Retained earnings 91,000 97,000
Total liabilities and stockholders’
equity $390,000 $415,200
During the year, Ravenna paid a $9,600 cash dividend and it sold a piece of equipment for $4,800 that had originally cost $10,800 and had accumulated depreciation of $7,200. The company did not retire any bonds or repurchase any of its own common stock during the year.
1. What is the combined amount and direction (+ or) of the inventory and accounts payable adjustments to net income in the operating activities section of the statement of cash flows?2. If the company debited income tax expense and credited income taxes payable $1,180 during the year, what is the total amount of the debits recorded in the Income Taxes Payable account?3. What is the amount and direction (+ or) of the income taxes payable adjustment to net income in the operating activities section of the statement of cash flows?4. Would the operating activities section of the company’s statement of cash flows contain an adjustment for a gain or a loss? What would be the amount and direction (+ or ) of the adjustment?
Answer:
1. Adjustment = - $46,800
2. Debits = $12,580
3. Adjustment = - $12,580
4. Yes : Adjustment = - $1,200
Explanation:
Required 1.
Prepare an Analysis of Cash Movement
Increase In Inventory ($7,000)
Decrease in Accounts payable ($39,800)
Combined Effect ($46,800)
Required 2
Open a Income tax Payable Account
Debit :
Closing Balance $39,800
Cash (Balancing figure) $12,580
Totals $52,380
Credit:
Opening Balance $51,200
Profit and Loss $1,180
Totals $52,380
Conclusion : Debit relate to the payment of Income taxes
Required 4.
Open an Equipment Disposal Account
Debit :
Cost $10,800
Profit and Loss (gain on sale) $1,200
Totals $12,000
Credit:
Accumulated Depreciation $7,200
Cash $4,800
Totals $12,000
Conclusion : Gain on Sale of Equipment is an Non - Cash item that needs an Adjustment in the Cash flow statement.
Wilturner Company incurs $85,000 of labor related directly to the product in the Assembly Department, and $34,000 of labor related to the Assembly Department as a whole, and $21,000 of labor for services that help production in both the Assembly and Finishing departments. The amount of direct labor and factory overhead respectively are:
Answer:
Direct labor= $85,000
Manufacturing overhead= $55,000
Explanation:
Giving the following information:
Wilturner Company incurs $85,000 of labor related directly to the product in the Assembly Department, and $34,000 of labor related to the Assembly Department as a whole, and $21,000 of labor for services that help production in both the Assembly and Finishing departments.
Manufacturing overhead is the number of production costs that can't be directly linked toa specific product. It includes indirect labor.
Direct labor= $85,000
Manufacturing overhead= 34,000 + 21,000= $55,000
When modeling the flow of income and expenditures in an economy the two principal participants are households (consumers) and firms (producers). The normal flow of resources would be that a firm would produce goods and services and the households would consume that good or service. Where else can the income of a household flow
Answer:
It must be found that the income of a home flows in a very habitual way day by day because the expenses that are generated in the daily living are many.
Regardless of the number of family members that make up a household, the flow of income will always correspond to a good or benefit to satisfy a basic or secondary need.
Explanation:
Other income that can flow from a household are those that are made through bank transactions, for scholarship payments, credit cards, or other types of transactions that allow households to make a profit.
Trew Company plans to issue bonds with a face value of $902,000 and a coupon rate of 6 percent. The bonds will mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds are sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1). Determine the issuance price of the bonds assuming an annual market rate of interest of 7.5 percent.
Answer:
$807,992
Explanation:
issue $902,000 with a 6% semiannual coupon and 10 year maturity. coupon payment = $27,060
if the annual market interest rate = 7.5%, the bonds should be sold at a discount:
issue price = present value of face value + present value of interest payments
present value of face value = $902,000 / (1 + 3.75%)²⁰ = $431,961present value of annuity = $27,060 x {1 - [1 / (1 + 3.75%)²⁰]} / 3.75% = $376,031issue price = $431,961 + $376,031 = $807,992
the journal entry should be:
Dr Cash 807,992
Dr Discount on bonds payable 94,008
Cr Bonds payable 902,000
The issuance price of the bonds is $807,992.
The calculation is as follows:Issue price = present value of face value + present value of interest payments
Here
Present value of face value is
= $902,000 ÷ (1 + 3.75%)^20
= $431,961
And,
The present value of annuity is
= $27,060 × {1 - [1 ÷ (1 + 3.75%)^20]} ÷ 3.75%
= $376,031
So, the issue price is
= $431,961 + $376,031
= $807,992
Therefore we can conclude that The issuance price of the bonds is $807,992.
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The following are selected 2015 transactions of Pedigo Corporation.
Jan. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite.
May 1 Purchased for $75,000 a patent with an estimated useful life of 5 years and a legal life of 20 years.
Required:
Prepare necessary adjusting entries at December 31 to record amortization required by the events above.
Answer:
Explanation:
The necessary adjusting entries at December 31 to record amortization required by the events above has been prepared.
It should also be noted that due to the goodwill having an indefinite life, no entry was made to amortize the goodwill.
It should be noted that the amortization expense was gotten as:
Annual amortization = $75,000/5
= $15,000
2015 amortization= $15,000 × 8/12months
= $15,000 × 2/3
= $30,000/3
= $10,000
Kindly check the attached file forthe adjusting entries
You accepted a new job with starting salary of $52,000 per year. The salary is expected to increase 4% each year. Now it is time to make a retirement plan for the next 39 years you expect to work. Your retirement fund has an annual interest rate of 5%, and You plan to deposit 10% of your annual salary into the account. (Hint: Be sure to move all values to the same point in time for equivalency.)
Answer:
FV= $1,607,145.61
Explanation:
Giving the following information:
Annual deposit= $5,200
Growth rate= 4%
Interest rate= 5%
Number of years= 39 years
First, we will include the growing rate in the interest rate:
Interest rate= 0.05 + 0.04= 0.09
Now, we can calculate the final value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {5,200*[(1.09^39)-1]/0.09]
FV= $1,607,145.61
MOSS COMPANY
Selected Balance Sheet Information
December 31, 2019 and 2018
2019 2018
Current assets Cash $ 90,150 $ 32,300
Accounts receivable 30,500 43,000
Inventory 65,500 55,200
Current liabilities Accounts payable 41,400 31,200
Income taxes payable 2,600 3,300
MOSS COMPANY
Income Statement
For Year Ended December 31, 2019
Sales $ 539,000
Cost of goods sold 353,600
Gross profit 185,400
Operating expenses Depreciation expense $ 47,000
Other expenses 127,500 174,500
Income before taxes 10,900
Income taxes expense 6,600
Net income $ 4,300
Use the information above to calculate cash flows from operating activities using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
cash flows from operating activities is $63,000
Explanation:
Cash flow from Operating Activities
Net income before taxes 10,900
Adjustments for Non - Cash Items
Depreciation expense 47,000
Adjustments for Changes in Working Capital
Decrease in Accounts receivable 12,500
Increase in Inventory -10,300
Increase in Accounts payable 10,200
Cash Generated From Operations 70,300
Income tax Paid (3,300+6,600- 2,600) -7,300
Net Cash from Operating Activities 63,000
Therefore, cash flows from operating activities is $63,000
Lion Company's direct labor costs for the month of January were as follows: What was Lion's direct labor efficiency variance? Select one: a. $6,000 favorable b. $6,150 favorable c. $6,300 favorable d. $6,450 favorable
Answer:
Direct labor time (efficiency) variance= $6,150 favorable
Explanation:
Giving the following information:
Lion Company's direct labor costs for the month of January were as follows:
Actual total direct labor-hours 20,000
Standard total direct labor-hours 21,000
Direct labor rate variance - unfavorable $3,000
Total direct labor cost $126,000
First, we need to calculate the standard direct labor hour cost.
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 126,000/20,000= 6.3
-3,000= (SR - 6.3)*20,000
-3,000= SR20,000 - 126,000
123,000/20,000= SR
6.15= Standard rate
To calculate the direct labor efficiency variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (21,000 - 20,000)*6.15
Direct labor time (efficiency) variance= $6,150 favorable
Tyare Corporation had the following inventory balances at the beginning and end of May:_______.
May 1 May 30
Raw materials $ 27,500 $ 34,000
Finished Goods $ 77,000 $ 70,000
Work in Process $ 15,500 $ 16,808
During May, $60,500 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 340 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,250 of direct materials cost. The Corporation incurred $42,600 of actual manufacturing overhead cost during the month and applied $40,800 in manufacturing overhead cost. The actual direct labor-hours worked during May totaled:______.
a. $60,500
b. $71,192
c. $54,000
d. $67,000
Answer:
354 hours
Explanation:
Direct material cost = $7,250
Actual manufacturing overhead cost = $40,800
Applied manufacturing overhead cost = $40,800
The given value if work process at end of May(May 30) = $16,808 and & $7,250 was used as direct material cost.
Thus, remaining labor and overhead = $16,808 - $7,250 = $9,558
Given an overhead rate of $12 per hour and labor rate of $15 per hour
Overhead rate + labor rate = $12 + $15 = $27 per hour
Direct labour hours worked =
$9,558 ÷ $27 = 354 hours
Therefore the actual direct labor hours worked during may is 354 hours
None of the given option is correct. They are stated in $ and the values are unrealistic.
Following are Nintendo’s revenue and expense accounts for a recent March 31 fiscal year-end (yen in millions). (Enter answers in millions.) Net sales ¥ 1,888,622 Cost of sales 1,254,981 Advertising expense 118,308 Other expense, net 397,544 Prepare the company's closing entries for its revenues and its expenses.
Answer:
1.
Dr. Net Sales ¥ 1,888,622
Cr. Income Summary ¥ 1,888,622
2.
Dr. Income Summary ¥1,770,833
Cr. Cost of sales ¥ 1,254,981
Cr. Advertising expense ¥ 118,308
Cr. Other expense ¥ 397,544
Explanation:
Closing Entries are passed to close the temporary accounts of a business for the year. These accounts are closed and their balances are transferred to income summary account.
First we will close the the revenue / income accounts and then expenses or cost accounts.
Damon Company receives its monthly bank statement, which reports a balance of $1,875. After comparing this to the company’s cash records, Damon’s accountants determine that deposits outstanding total $3,700 and checks outstanding total $3,950.
Required:
Calculate the reconciled bank balance for cash.
Answer:
The reconciled bank balance for cash is $1,625.
Explanation:
This question centres around bank reconciliation statement preparation. Bank reconciliation is a way of reconciling the bank statement to the cash book balance. Usually, there are discrepancies between the two as a result of direct bank transfers, standing orders, etc. The reconciling items are cleared within the business rule to avoid having aging items in the bank reconciliation.
To reconcile the bank balance for cash, we do the following:
Damon Company
Bank reconciliation statement
Balance per bank statement $1,875
Add: Deposits outstanding $3,700
Less: Checks outstanding ($3,950)
Balance per cash book $1,625
Jack Spratt is the production manager for a manufacturing firm that produces wizzy-gadgets and other items. The annual demand for a particular wizzy-gadget is 1,600 units. The holding cost is $2 per unit per year. The cost of setting up the production line is $25. There are 200 working days per year. The production rate for this product is 80 per day. If his maximum inventory level is 180 units, how many units did he produce each time he started production of the wizzy-gadgets
Answer:
200 units
Explanation:
For computing the number of units produced each time we need to applied the economic order quantity formula which is shown below:
[tex]= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]
where,
Annual demand is 1,600 units
Ordering cost per order is $25
And, the carrying cost or holding cost per unit per year is $2
Now placing these values to the above formula
So, the economic order quantity is
[tex]= \sqrt{\frac{2\times \text{1,600}\times \text{\$25}}{\text{\$2}}}[/tex]
= 200 units
