Answer:
$76105
Explanation:
Total units of purchase made = 715 + 356 = 1071 units
Amount sold during month = 1203
1203 - 1071 = 132
713 at 63 dollars
356 at 65 dollars
132 at 60 dollars
(715*63)+(356*65)+(132*60)
= 45045 + 23140 + 7920
= $76105
Using the LIFO method, the amount of cost of goods sold for the month has been calculated to $76105
Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 52,000 Total fixed manufacturing overhead cost$291,200 Variable manufacturing overhead per direct labor-hour$5.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 20 Total direct labor-hours 100 Direct materials$780 Direct labor cost$5,200 The unit product cost for Job P951 is closest to
Answer:
Unitary cost= $352
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (291,200 / 52,000) + 5
Predetermined manufacturing overhead rate= $10.6 per direct labor hour
Now, we can calculate the total cost of Job P951:
Total cost= 780 + 5,200 + 10.6*100
Total cost= $7,040
Finally, the unitary cost:
Unitary cost= 7,040 / 20
Unitary cost= $352
Liz and Bob just had a baby named Isabelle, and they want to save enough money for Isabelle to go to college. Assume that they start making monthly payments when Isabelle is 5 into an ordinary annuity earning 3.79%, and they calculate that they will need $21,200.00 by the time Isabelle turns 18. How much should they deposit every month so that they reach their goal
Answer:
They should deposit $105 every month so that they reach their goal.
Explanation:
Given - Liz and Bob just had a baby named Isabelle, and they want to
save enough money for Isabelle to go to college. Assume that
they start making monthly payments when Isabelle is 5 into an
ordinary annuity earning 3.79%, and they calculate that they will
need $21,200.00 by the time Isabelle turns 18.
To find - How much should they deposit every month so that they reach
their goal.
Proof -
We know the formula -
Future value = [tex]PMT\frac{(1 + i)^{n} - 1 }{i}[/tex]
Here , we have
i = [tex]\frac{\frac{3.79}{100} }{12} = \frac{{0.0379} }{12}[/tex]
n = 12×(18 - 5) = 156
Future value = 21,200.00
∴ we get
21,200.00 = [tex]PMT\frac{(1 + \frac{0.0379}{12} )^{156} - 1 }{\frac{0.0379}{12} }[/tex]
⇒21,200 = [tex]PMT\frac{(1 + 0.00315834 )^{156} - 1 }{0.00315834 }[/tex]
⇒21,200 = [tex]PMT\frac{(1.00315834 )^{156} - 1 }{0.00315834 }[/tex]
⇒21,200 = [tex]PMT\frac{1.635460826 - 1 }{0.00315834 }[/tex]
⇒21,200 = [tex]PMT\frac{0.635460826}{0.00315834 }[/tex]
⇒21,200 = PMT(201.2008924)
⇒PMT = [tex]\frac{21,200}{201.2008924}[/tex]
⇒PMT = 105.3673259 ≈ $105
∴ we get
They should deposit $105 every month so that they reach their goal.
Calculating the geometric and arithmetic average rate of return) Marsh Inc. had the following end-of-year stock prices over the last five years and paid no cash dividends: Time Marsh 1 $ 2 3 4 5 (Click on the icon in order to copy its contents into a spreadsheet.) a. Calculate the annual rate of return for each year from the above information. b. What is the arithmetic average rate of return earned by investing in Marsh's stock over this period? c. What is the geometric average rate of return earned by investing in Marsh's stock over this period? d. Considering the beginning and ending stock prices for the five-year period are the same, which type of average rate of return (the arithmetic or geometric) better describes the average annual rate of return earned over the period?
Complete Question:
Marsh Inc. had the following end-of-year stock prices over the last five years and paid no cash dividends:
Time Marsh
1 $99
2 141
3 121
4 88
5 99
a. Calculate the annual rate of return for each year from the above information.
b. What is the arithmetic average rate of return earned by investing in Marsh's stock over this period?
c. What is the geometric average rate of return earned by investing in Marsh's stock over this period?
d. Considering the beginning and ending stock prices for the five-year period are the same, which type of average rate of return (the arithmetic or geometric) better describes the average annual rate of return earned over theperiod?
Answer:
Marsh Inc.
a. annual rate of return for each year
Year
2 42. 4%
3 -14.2%
4 -27.3
5 12.5
b. The arithmetic average rate of return earned by investing in Marsh's stock over this period is:
= 3.35%
c. The geometric average rate of return earned by investing in Marsh's stock over this period is:
= -0.7502%
d. Considering the beginning and ending stock prices for the five-year period are the same, the geometric type of average rate of return better describes the average annual rate of return earned over the period.
Explanation:
a) Data and Calculations:
Time Marsh ARR
1 $99
2 141 42. 4% ($42/$99 * 100)
3 121 -14.2% (-$20/$141 * 100)
4 88 -27.3 (-$33/$121 * 100)
5 99 12.5 ($11/$88 * 100)
Sum of ARR = 13.4%
Arithmetic mean = 3.35% (13.4%/4)
Geometric mean = {(1 + 0.424 * 1 - 0.142 * 1 - 0.273 * 1 + 0.125)∧1/4} - 1
= {(1.424 * 0.858 * 0.727 * 1.125)∧1/4} - 1
= {(0.99927)∧1/4} - 1
= 0.2498 - 1
= -0.7502
< 0
Steve's only source of income for the year is a salary of $24,000. He is not married and has one dependent child who is eligible for the child tax credit. Steve's tax liability is $570 before any credits or prepayments are applied. He had $500 withheld from his salary. After applying the earned income credit, what is Steve's refund or balance due
Answer:
$2,678
Explanation:
Calculation for what is Steve's refund or balance due
Refund or balance due=3461 - [(24,000-18,660)*.1598]
Refund or balance due= 2607-(570-500)
Refund or balance due= $2,678
Therefore Steve's refund or balance due is $2,678
Assume the equity method Equity Investment account relating to a subsidiary has a reported balance of $9,036,000, including $864,000 of Goodwill. The fair value of the subsidiary is $8,100,000. The fair value of the subsidiary's individually identifiable net assets is $7,740,000. The subsidiary has only one reporting unit, which is the same as the overall entity.1. For this fact set, determine whether Goodwill is impaired.2. Prepare the required journal entry if you determine Goodwill is impaired.
Answer:
The impairment amount will be "$504,000". A further explanation is below.
Explanation:
The given values are:
Goodwill,
= $864,000
Subsidiary fair value,
= $8,100,000
Subsidiary's individually identifiable net assets,
= $7,740,000
Now,
(1)
The impairment amount will be:
= [tex]Goodwill-(Subsidiary \ fair \ value-Identifiable \ net \ assets)[/tex]
On substituting the values, we get
= [tex]864,000 - (8,100,000- 7,740,000)[/tex]
= [tex]864,000-360,000[/tex]
= [tex]504,000[/tex] ($)
(2)
The journal entry is:
Description Debit Credit
Equity income $504,000
Equity investment $504,000
Sound Software estimates that it will sell LaTeX: NN units of a program after spending LaTeX: aa thousands of dollars on advertising, where LaTeX: N\left(a\right)=-a^2+300a+6N ( a ) = − a 2 + 300 a + 6 when LaTeX: 0\le a\le3000 ≤ a ≤ 300. What is the maximum number of units that can be sold and how much need to be spent on advertising in order to achieve this sales goal?
Answer:
Explanation:
From the given information:
N(a) = -a² +300a + 6
Taking the differential of the above equation with respect to "a"
Then;
N'(a) = - 2a + 300
where;
the Critical points N'(a) = 0
-2a + 300 = 0
-2a = -300
a = -300/-2
a = 150
Now;
N(0) = -(0)² +300(0) + 6
N(150) = (-150)² +300(150) + 6 =22506
N(300) = (-300)² +300(300) + 6 = 6
∴
The max. number of the possible unit that can be sold = 22506
The amount spent on advertising to get to this goal = 150 thousand dollars
what is hospitableness in your own understandings?
Answer: Hospitableness is being able to make someone feel welcomed in your home,Such as asking them if they need a drink,or food etc. Basically anything to make the person feel comfortable.
Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations: Provided $82,000 of services on account. Collected $49,200 cash from accounts receivable. Paid $30,000 of salaries expense for the year. Adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance Current $ 24,272 .01 0-30 1,640 .05 31-60 2,296 .10 61-90 1,968 .30 Over 90 days 2,624 .50 Required a. Record the above transactions in general journal form and post to T-accounts. b. Prepare the income statement for Vulcan Service Co. for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1
Answer:
Vulcan Service Co.
a. Journal Entries:
Debit Accounts Receivable $82,000
Credit Service Revenue $82,000
To record services rendered on account.
Debit Cash $49,200
Credit Accounts Receivable $49,200
To record cash collected on account.
Debit Salaries Expense $30,000
Credit Cash $30,000
To record salaries expense for the year.
2. Debit Bad Debts Expense $2,456.72
Credit Allowance for Uncollectible $2,456.72
To record bad debts expense.
b. Income Statement for year ended December 31, Year 1:
Service Revenue $82,000
Salaries Expense 30,000
Bad Debts expense 2,456.72 32,456.72
Net income $49,543.28
c. The net realizable value of the accounts receivable at December 31, Year 1 is:
Accounts Receivable = $32,800
less Allowance for
uncollectibles 2,456.72
Net realizable value = $30,343.28
Explanation:
a) Data and Calculations:
Accounts Receivable
Account Titles Debit Credit
Service Revenue $82,000
Cash $49,200
Balance 32,800
Service Revenue
Account Titles Debit Credit
Accounts receivable $82,000
Salaries Expense
Account Titles Debit Credit
Cash $30,000
Bad Debts Expense
Account Titles Debit Credit
Allowance for Collectibles $2,456.72
Allowance for Uncollectibles
Account Titles Debit Credit
Bad Debts expense $2,456.72
Cash Account
Account Titles Debit Credit
Accounts receivable $49,200
Salaries expense $30,000
Balance 19,200
Trial Balance as at Year 1:
Account Titles Debit Credit
Cash $19,200
Accounts Receivable 32,800
Allowance for Uncollectibles $2,456.72
Service Revenue 82,000
Salaries Expense 30,000
Bad Debts expense 2,456.72
Totals $84,456.72 $84,456.72
Accounts receivable aging schedule:
Number of Percent Likely to
Days Past Due Amount Be Uncollectible Allowance Balance
Current $ 24,272 .01 $242.72
0-30 1,640 .05 82.00
31-60 2,296 .10 229.60
61-90 1,968 .30 590.40
Over 90 days 2,624 .50 1,312.00
Total $32,800 $2,456.72
se the information below for Harding Company to answer the question that follow. Harding Company Accounts payable $36,681 Accounts receivable 60,524 Accrued liabilities 6,727 Cash 24,556 Intangible assets 40,334 Inventory 71,626 Long-term investments 90,463 Long-term liabilities 79,713 Marketable securities 32,237 Notes payable (short-term) 25,302 Property, plant, and equipment 627,557 Prepaid expenses 2,404 Based on the data for Harding Company, what is the amount of quick assets
Answer:
See below
Explanation:
With regards to the above,
Computation of quick assets is shown below
Quick assets = Account receivable + cash + marketable securities
= $60,524 + $24,556 + $32,237
= $117,317
On June 30, 2021, the High Five Surfboard Company had outstanding accounts receivable of $720,000. On July 1, 2021, the company borrowed $570,000 from the Equitable Finance Corporation and signed a promissory note. Interest at 10% is payable monthly. The company assigned specific receivables totaling $720,000 as collateral for the loan. Equitable Finance charges a finance fee equal to 1.2% of the accounts receivable assigned.
Required: Prepare the journal entry to record the borrowing on the books of High Five Surfboard. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Dr Cash$561,360
Dr Finance charge expense $8,640
Cr Finance arrangement $570,000
Explanation:
Preparation of the journal entry to record the borrowing on the books of High Five Surfboard.
Dr Cash$561,360
[$570,000-($720,000*1.2%)]
$570,000-$8,640
=$561,360
Dr Finance charge expense $8,640
($720,000*1.2%)
Cr Finance arrangement $570,000
(Being to record the borrowing on the books of High Five Surfboard )
A large financial institution is losing market share to savvy upstart companies, and it has asked its top marketing executive to identify the main reasons for their sliding performance. Using textbook concepts, describe three barriers that might cause the marketing executive to poorly identify the problem(s), and include an illustrative example for each barrier.
Answer:
Problems that could be discussed are
1)Stakeholder framing:
2)Perceptual defense
3)Decisive leadership:
4) mental model
Explanation:
alton Corporation is currently selling 104 units of its product. The company is deciding the price that it should charge for a bulk order of 40 units. The variable cost per unit is $200. This order will not involve any additional fixed costs and the company's current sales will not be affected. The company targets a profit of $4,000 on the bulk order. What selling price per unit should the company quote for the bulk order
Answer:
the selling price per unit is $300
Explanation:
The computation of the selling price per unit is shown below;
= Variable cost + profit needed per unit
= $200 + ($4,000 ÷ $40 units)
= $200 + $100
= $300
hence, the selling price per unit is $300
explain the various functions of an entrepreneur
1-year Treasury bill yield is 3.5%. 10-year Treasury bond yield is 4.5%. Expected rate of inflation embedded in both the Treasury bill and bond is 2.0%. Average yield on AAA-rated 10-year corporate bonds is 5.75%. Average yield on BB-rated 10-year corporate bonds is 8%. Liquidity premium on both Treasury bill and bond is zero. Liquidity premium on both AAA-rated and BB-rated bonds are 0.5%. What is the maturity risk premium embedded in the 10-year Treasury bond
Answer: 2.5%
Explanation:
Treasury bonds have no default risk as they are backed by the U.S. government. The premiums that make up the yield are the inflation, liquidity and maturity risk premiums.
Required yield on Treasury bond = Inflation premium + Liquidity premium + Maturity risk premium
4.5% = 2% + 0% + Maturity risk premium
MRP = 4.5% - 2% - 0%
= 2.5%
If in the textile markets we know that two brands, X and Z, are substitutes. Suppose that the supply of X increases and, at the same time, the supply of the Z decreases. Other things being equal, what would be the expectations for the change in the equilibrium quantities in the two markets
Answer:
Equilibrium quantity of X increases and that of z decreases.
Explanation:
If two goods are substitutes then 1 can be used in the place of the other. As supply of Z falls, we would have market demand to be greater than supply. This brings about a price rise. The price rise will make consumers of Z to want it less and opt for a cheaper good X. Increase in the demand for X causes its supply to rise in the market.
So we would have increase in equilibrium quantity of X and that of Z would fall.
3. Consider the following price indexes: 2 pts
2018 Consumer Price index: 251.107 2019 Consumer price Index: 255.651
1. Which year is likely the base year?
2. What is the inflation rate from 2018 to 2019?
Answer:
1. Which year is likely the base year?
The base year is likely to be 2018, because it has the lower consumer price index. This is because most economies show inflation (the gradual increase of the prices overtime within an economy) rather than deflation (the gradual decrease)
2. What is the inflation rate from 2018 to 2019?
Using the consumer price index (CPI) the inflation rate formula is:
Inflation rate = CPI year 2 - CPI year 1 / CPI year 1
in this case, the year 1 is our likely base year, 2018, and year 2 is 2019.
Now, we simply plug the amounts into the formula:
Inflation rate = 255.651 - 251.107 / 251.107 = 0.018 or 1.8%
So the inflation rate from 2018 to 2019 is 1.8%, a rather low number.
*giving brainliest to the first correct answer*
As the money supply increases, interest rates
___ spending to___
A. decrease; increase
B. increase; increase
C. increase; decrease
D. decrease; decrease
HELLPPPPPPPPPPP PLEAEE!!!!!!!!!
Answer:
c
Explanation:
relocation is the moving of people from one place to another
Answer:
relocation
Explanation:
but for me I will say it's called migration
A company must repay the bank a single payment of $20,000 cash in 3 years for a loan it entered into. The loan is at 8% interest compounded annually. The present value of 1 (single sum) at 8% for 3 years is 0.7938. The present value of an annuity (series of payments) at 8% for 3 years is 2.5771. The present value of the loan (rounded) is: Multiple Choice $15,876. $20,000. $25,195. $7,761. $51,542.
Answer:
Present Value of the loan = $19999.36 rounded off to $20000
Explanation:
The present value of loan will comprise of the present value of the principal amount of loan plus the present value of the interest that the loan will charge for the 3 year time period for which it is outstanding. As the interest payments are fixed and occur after equal intervals of time, they are considered an annuity.
To calculate the present value of the loan, we must discount the interest payments using the present value factor of annuity given in the question as 2.5771 and we must discount the principal to present value using the present value factor given in question as 0.7938.
We will first calculate the annual interest payment on loan.
Annual Interest payment = 20000 * 0.08 = 1600
Present value of the Interest payment - annuity = 1600 * 2.5771
Present value of the Interest payment - annuity = $4123.36
Present value of the Principal loan = 20000 * 0.7938
Present value of the Principal loan = $15876
Present Value of the loan = 15876 + 4123.36
Present Value of the loan = $19999.36 rounded off to $20000
The following data are for Guava Company's retiree health care plan for the current calendar year. Number of employees covered 5 Years employed as of January 1 4 (each) Attribution period 20 years EPBO, January 1 $ 60,000 EPBO, December 31 $ 63,600 Interest rate 6 % Funding and plan assets None What is the correct entry to record postretirement benefit expense for the current year
Answer:
Date Account Title Debit Credit
December 31 Postretirement benefit expense $3,900
APBO $3,900
Explanation:
Service cost = Ending EPBO / Attribution period
= 63,600 / 20
= $3,180
Interest cost = Beginning EPBO * Years employed / Attribution period * Interest rate
= 60,000 * 4/20 * 6%
= $720
Postretirement benefit expense = 3,180 + 720
= $3,900
Credit to Accumulated Postretirement Benefit Obligation (APBO).
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Units in beginning inventory 0 Units produced 5,000 Units sold 4,900 Units in ending inventory 100 Variable costs per unit: Direct materials$61 Direct labor$63 Variable manufacturing overhead$26 Variable selling and administrative expense$24 Fixed costs: Fixed manufacturing overhead$105,000 Fixed selling and administrative expense$49,000 What is the variable costing unit product cost for the month
Answer:
$217,600
Explanation:
Calculation for the variable costing unit product cost for the month
Variable selling and administrative expense $117,600
($24 per unit x 4,900 units sold)
Fixed manufacturing overhead $105,000
Fixed selling and administrative expense$49,000
Variable costing total period $217,600
($117,600+$105,000+$49,000)
Therefore the variable costing unit product cost for the month is $217,600
what is commercial bank? in your own words.
The labor force (sum of employed and unemployed workers) is fixed at 120 million. Each month, 2% of the workers who are employed at the beginning of the month lose their job, and 10% of the workers who are unemployed at the beginning of the month find a job. Assume that in January the number of workers without a job (unemployed) are 10 million. How many workers will be unemployed in March, that is, two months later
Answer:
Total number of unemployed (March)= 12,256,000
Explanation:
Giving the following information:
Total labor force= 120 million
Unemployed people (January)= 10 million
Each month, 2% of the workers who are employed at the beginning of the month lose their job, and 10% of the workers who are unemployed at the beginning of the month find a job.
First, we will calculate the unemployed and employed people for February:
New Unemployed= 110,000,000*0.02= 2,200,000
New employed= 10,000,000*0.1= 1,000,000
Total number of unemployed= 10,000,000 + 2,200,000 - 1,000,000= 11,200,000
Total number of employed= 110,000,000 + 1,000,000 - 2,200,000= 108,800,000
Now, for March:
New Unemployed= 108,800,000*0.02= 2,176,000
New employed= 11,200,000*0.1= 1,120,000
Total number of unemployed= 11,200,000 + 2,176,000 - 1,120,000= 12,256,000
Total number of employed= 108,800,000 + 1,120,000 - 2,176,000= 107,744,000
How can the business sector contribute more positively to the economy
Answer:
Small businesses contribute to local economies by bringing growth and innovation to the community in which the business is established. Small businesses also help stimulate economic growth by providing employment opportunities to people who may not be employable by larger corporations.
Explanation:
Hope it helps! Correct me if I am wrong :>
Im sure about my answer :>
If you dont mind can you please mark me as brainlest?
Assume the following information for Windsor Corp. Accounts receivable (beginning balance) $140,000 Allowance for doubtful accounts (beginning balance) 11,490 Net credit sales 938,000 Collections 915,000 Write-offs of accounts receivable 5,900 Collections of accounts previously written off 2,000 Uncollectible accounts are expected to be 7% of the ending balance in accounts receivable.Prepare the entries to record sales and collections during the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
Windsor Corp.
Journal Entries:
Debit Accounts Receivable $938,000
Credit Sales Revenue $938,000
To record sales on account.
Debit Cash $915,000
Credit Accounts Receivable $915,000
To record cash collected from customers.
Debit Allowance for Doubtful Accounts $5,900
Credit Accounts Receivable $5,900
To record uncollectible accounts written off.
Debit Accounts Receivable $2,000
Credit Allowance for Doubtful Accounts $2,000
To reinstate previously written off accounts.
Debit Bad Debts Expenses $3,407
Credit Allowance for Doubtful Accounts $3,407
To record bad debts expense and bring the Allowance for doubtful accounts to a balance of $10,997, being 7% of the accounts receivable ending balance.
Explanation:
a) Data and Analysis:
T-accounts:
Accounts receivable
Accounts Titles Debit Credit
Beginning balance $140,000
Sales revenue 938,000
Cash $915,000
Allowance for doubtful a/cs 5,900
Allowance for
doubtful accounts 2,000
Cash 2,000
Balance 157,100
Totals $1,080,000 $1,080,000
Allowance for Doubtful Accounts:
Accounts Titles Debit Credit
Beginning balance $11,490
Accounts receivable 5,900
Accounts receivable 2,000
Bad Debts Expense 3,407
Balance 10,997
Totals $16,897 $16,897
Allowance = $10,997 (7% of $157,100)
Assume that Toy Craft makes ragdolls. Each ragdoll requires 15 square feet of fabric. If the number of dolls to be produced during the quarter is 20,100, the desired ending inventory of fabric is 12,500 square feet, the beginning inventory of fabric is 23,900 square feet, and the cost of the fabric is $12 per square foot, what is the total cost of fabric purchases
Answer:
Total cost - Purchases = $3,481,200
Explanation:
We first need to find out the requirement for fabric to produce 20100 ragdolls and adjust it for the already available inventory of fabric (beginning inventory) and the desired ending inventory.
The production of 20100 ragdolls will require fabric of,
Fabric required = 20100 * 15 => 301500 square feet
The purchase of fabric in square feet will be,
Production = Beginning Inventory + Purchases - Ending Inventory
301500 = 23900 + Purchases - 12500
301500 + 12500 - 23900 = Purchases
Purchases = 290100 square feet
The total cost of fabric purchases will be,
Total cost - Purchases = 290100 * 12
Total cost - Purchases = $3,481,200
1. Cash balance per bank, July 31, $7,308.
2. July bank service charge not recorded by the depositor $42.
3. Cash balance per books, July 31, $7,392.
4. Deposits in transit, July 31, $2,982.
5. $1,680 collected for Cullumber Company in July by the bank through electronic funds transfer. The accounts receivable collection has not been recorded by Cullumber Company.
6. Outstanding checks, July 31, $1,260.
(a) Prepare a bank reconciliation at July 31, 2010
(b) Journalize the adjusting entries at July 31 on the books
Answer:
Part a
Bank reconciliation at July 31, 2010
Balance as per Bank Statement $ 7,308
Add Outstanding Lodgments $2,982
Less Unpresented Checks ($1,260)
Balance as per Cash Book $9,030
Part b
Adjusting entries at July 31 on the books
Item 2
Debt : Bank service charge $42
Credit : Cash $42
To record the Bank service charge
Item 5
Debt : Cash $1,680
Credit : EFT Payment - Account Receivable $1,680
To record the amount collected on behalf of Cullumber Company
Explanation:
The Bank Reconciliation Statement is used to determine the true Cash Balance at the end of the month.
Updated Cash Book
Debit :
Balance $7,392
Credit Transfer $1,680
Total $9,072
Credit
Bank service charge $42
Balance (Balancing amount) $9,030
Total $9,072
Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred. 9/6 Purchased calculators from Dragoo Co. at a total cost of $1,650, terms n/30. 9/9 Paid freight of $50 on calculators purchased from Dragoo Co. 9/10 Returned calculators to Dragoo Co. for $66 credit because they did not meet specifications. 9/12 Sold calculators costing $520 for $690 to Fryer Book Store, terms n/30. 9/14 Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $34. 9/20 Sold calculators costing $570 for $760 to Heasley Card Shop, terms n/30. Instructions: Journalize the September transactions.
Answer and Explanation:
The journal entries are shown below;
1. Inventory $1,650
Accounts Payable $1,650
(To record purchased on account)
2. Inventory $50
To Cash $50
(To record freight paid)
3. Accounts Payable $66
To Inventory $66
(To record the returned calculator)
4. Accounts Receivable $690
To Sales Revenues $690
(To record sales on the account)
5. Cost of Goods Sold $520
To Inventory $520
(To record cost of goods sold)
6. Sales returns $45
To Accounts Receivable $45
(To record the sales return)
7. Inventory $34
To Cost of Goods Sold $34
(To record the cost return)
8. Accounts Receivable $760
To Sales Revenues $760
(To record the sales on account)
9. Cost of Goods Sold $570
To Inventory $570
(To record the cost of goods sold)
Taxable income and pretax financial income would be identical for Skysong Co. except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income computations have been prepared. Taxable income 2019 2020 2021 Excess of revenues over expenses (excluding two temporary differences) $148,000 $227,000 $96,400 Installment gross profit collected 8,400 8,400 8,400 Expenditures for warranties (5,500 ) (5,500 ) (5,500 ) Taxable income $150,900 $229,900 $99,300 Pretax financial income 2019 2020 2021 Excess of revenues over expenses (excluding two temporary differences) $148,000 $227,000 $96,400 Installment gross profit recognized 25,200 -0- -0- Estimated cost of warranties (16,500 ) -0- -0- Income before taxes $156,700 $227,000 $96,400 The tax rates in effect are 2019, 40%; 2020 and 2021, 45%. All tax rates were enacted into law on January 1, 2019. No deferred income taxes existed at the beginning of 2019. Taxable income is expected in all future years. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019, 2020, and 2021.
Answer:
Explanation:
This question was computed in an Excel SOlver and the result are shown below:
Date Particulars Debit($) Credit($)
31-Dec-19 Income tax expense 62970
Deferred tax asset 4950
Income taxes payable 60360
Deferred tax liability 7560
(To record income tax expense
for the year)
31-Dec-20 Income tax expense 102150
Deferred tax asset 3780
Income taxes payable 103455
Deferred tax asset 2475
(To record income tax expense
for the year)
31-Dec-21 Income tax expense 43380
Deferred tax liability 3780
Income taxes payable 44685
Deferred tax Asset 2475
(TO record income tax expense
for the year)
On June 10, Novak Corp. purchased $8,350 of merchandise on account from Sarasota Company, FOB shipping point, terms 2/10, n/30. Novak pays the freight costs of $560 on June 11. Damaged goods totaling $350 are returned to Sarasota for credit on June 12. The fair value of these goods is $80. On June 19, Novak pays Sarasota Company in full, less the purchase discount. Both companies use a perpetual inventory system.
(a) Prepare separate entries for each transaction on the books of Tuzun Company.
(b) Prepare separate entries for each transaction for Epps Company. The merchandise purchased by Tuzun on June 10 had cost Epps $4,800.
Answer:
On the books of Tuzun Company:
On June 10
Dr Merchandise Inventory $8,350
Cr Accounts payable$8,350
On June 11
Dr Merchandise inventory $560
Cr Cash $560
On June 12
Dr Account payable$350
Cr Merchandise inventory $350
On June 19
Dr Accounts payable $8,000
Cr Cash $7,840
Cr Merchandise Inventory $160
B.
On the books of Epps Company:
On June 10
Dr Accounts receivable $8,350
Cr Service revenue $8,350
(Being service provided is recorded)
Dr Cost of goods sold $4,800
Cr Merchandise inventory $4,800
(Being inventory sold at cost)
On June 12
Dr Accounts receivable $350
Cr Service revenue A/c $350
(Being returned inventory is recorded)
Dr Cost of goods sold $80
Cr Merchandise inventory A/c $80
(Being fair value is recorded)
On June 19
Dr Cash $7,840
Dr Sales discount $160
Cr Accounts receivable A/c $800
(Being payment is received)
Explanation:
A. Preparation of separate entries for each transaction on the books of Tuzun Company.
On the books of Tuzun Company:
On June 10
Dr Merchandise Inventory $8,350
Cr Accounts payable$8,350
(Being inventory purchased on credit)
On June 11
Dr Merchandise inventory $560
Cr Cash $560
(Being freight is paid by cash)
On June 12
Dr Account payable$350
Cr Merchandise inventory $350
(Being returned inventory is recorded)
On June 19
Dr Accounts payable $8,000 ($8,350 - $350)
Cr Cash $7,840
(8000-160)
C Merchandise Inventory $160[ ($8,350 - $350) × 2%]
(Being due amount is paid and the remaining balance is credited to the cash account)
B. Preparation of separate entries for each transaction for Epps Company.
On the books of Epps Company:
On June 10
Dr Accounts receivable $8,350
Cr Service revenue $8,350
(Being service provided is recorded)
Dr Cost of goods sold $4,800
Cr Merchandise inventory $4,800
(Being inventory sold at cost)
On June 12
Dr Accounts receivable $350
Cr Service revenue A/c $350
(Being returned inventory is recorded)
Dr Cost of goods sold $80
Cr Merchandise inventory A/c $80
(Being fair value is recorded)
On June 19
Dr Cash $7,840
Dr Sales discount $160
Cr Accounts receivable A/c $800
(Being payment is received)
