Answer:
P(x)=1.5x-12,000
Explanation:
The profit function equation is:
P(x) = R(x) - C(x)
P(X)= Profit
R(x)= Revenue= 3x
C(x)= cost= fixed costs+variable costs=12,000+1.50x
x= number of pints of ice cream
Then, you can replace the equation with the information given:
P(x)=3x-(12,000+1.50x)
P(x)= 3x-12,000-1.5x
P(x)=1.5x-12,000
According to this, the answer is that the firm's profit function is P(x)=1.5x-12,000.
Answer:
$48,000
Explanation:
The Profit function shows the relationship between the total costs and total revenue accrued in a business. It is given by the formula;
Product Function=Total revenue - Total costs.
The fixed costs in a business are those expenses that must be taken care of no matter the level of production. Variable costs however are dependent on the output of the company.
For the firm producing Gourmet ice-cream,
Total Revenue= $3*40000 pints/month = $120,000
Total costs=Fixed cost +Variable costs
= $12,000 + $40000*(1.5)
= $12,000 + $60,000
= $72000
Therefore,
Product Function= $120,000 - $72000
= $48000
On July 1, ABC Company borrowed $440,000 cash by signing a 10-year, 10% installment note requiring equal payments each June 30 of $71,608. What is the journal entry to record the first annual payment? Multiple Choice Debit Interest Expense $44,000; credit Cash $44,000. Debit Interest Expense $71,608; credit Cash $71,608. Debit Cash $440,000; debit Interest Expense $71,608; credit Notes Payable $511,608. Debit Interest Expense $44,000; debit Interest Payable $27,608; credit Cash $71,608. Debit Interest Expense $44,000; debit Notes Payable $27,608; credit Cash $71,608.
Answer:
Debit Interest Expense $44,000;
Debit Notes Payable $27,608;
Credit Cash $71,608
Explanation:
When loan is acquired it increases cash and becomes a liability for the company. So cash is increased by debiting cash with $ 440,000 and liability is also increased by crediting notes payable. As the cash payment for the first year is $71,608 then it is credited .
The journal entry to record the first annual payment is as follows.
Debit Interest Expense $44,000;
Debit Notes Payable $27,608;
Credit Cash $71,608
Interest Expense = 10 % of $ 440,000= $ 44,000
As part of the Notes Payable is paid the notes payable is debited with an amount of $27,608. And cash is credited with an equal amount paid i.e. $ 71,608
Sellers allow customers to use credit cards for all of the following reasons except: Multiple Choice To be able to charge more due to fees and interest. To increase total sales volume. To avoid having to evaluate a customer's credit standing for each sale. To speed up receipt of cash from the credit sale. To lessen the risk of extending credit to customers who cannot pay.
Answer:
To be able to charge more due to fees and interest.
Explanation:
I believe this is the answer because the aim of a business is to gain as much profit as possible and to provide quality products. So by allowing customers to use credit cards, you are gaining more money from charging fees and interest.
To be willing to charge more than that to cover penalties and charges.
Because accepting credit cards allows sellers to get payments at around a similar time as credit selling. As a result, the vendor could indeed insistence on charging more owing to interest payments.Even though all of the other possibilities are correct, the one in which they seek to impose higher charges is false.
Thus the above response i.e., "option a" is correct.
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Marginal​ cost-benefit analysis and the goal of the firm   Ken​ Allen, capital budgeting analyst for Bally​Gears, Inc., has been asked to evaluate a proposal. The manager of the automotive division believes that replacing the robotics used on the heavy truck gear line will produce total benefits of 568,000​(in today's​ dollars) over the next 5 years. The existing robotics would produce benefits of 446,000 (also in​ today's dollars) over that same time period. An initial cash investment of $227,200 would be required to install the new equipment. The manager estimates that the existing robotics can be sold for $73,000. Show how Ken will apply marginal​ cost-benefit analysis techniques to determine the​ following:
a.  The marginal​ (added) benefits of the proposed new robotics.
b.  The marginal​ (added) cost of the proposed new robotics.
c.  The net benefit of the proposed new robotics.  
d.  What should Ken recommend that the company​do? Why?
e.  What factors besides the costs and benefits should be considered before the final decision is​ made?
Answer:
a.The marginal (added) benefits of the proposed new robotics.
$195,000
b. The marginal (added) cost of the proposed new robotics.
-$227,200c. The net benefit of the proposed new robotics.
loss = -$32,200d. What should Ken recommend that the company do? Why?
Based only on this analysis, the company should keep the old robotics. The new robotics are too expensive and do not generate enough benefits.e. What factors besides the costs and benefits should be considered before the final decision is made?
increases in efficiency and reductions in manufacturing time.Explanation:
Marginal cost benefit analysis refers to analyzing the additional benefits of a new project or activity compared to the benefits generated by an alternative project or activity.
In this case, both alternative should be evaluated as follows:
alternative 1 alternative 2 marginal
keep robotics change robotics benefits
revenue (in $446,000 $568,000 $122,000
today's $)
required invest. $0 -$227,200 -$227,200
old robotics $0 $73,000 $73,000
sales value
marginal benefits / losses -$32,200
Coffee Corporation has 2,000 shares of common stock outstanding. John owns 700 of the shares, John’s grandfather owns 100 shares, John’s father owns 100 shares, John’s ex-wife owns 700 shares, and Redbird Partnership owns 400 shares. John is a 50% partner in Redbird Partnership. How many shares is John deemed to own in Coffee Corporation under the § 318 attribution rules?
a. 700
b. 1,000
c. 1,100
d. 1,700
e. None of the above
Answer:
1,000 shares
Explanation:
The 318 attribution rule states that stock owned directly or indirectly by a partnership is considered to be owned by any partner that owns 5% or more in the business.
This is relevant to family owned businesses and is a way to mark out principal owners of a business in order to avoid tax evasion and fraud.
In this scenario John directly owns 700 of the outstanding shares. But according to the 318 attribution rule, since he he is a 50% partner he owns half of the outstanding 2,000 shares. That is 1,000 shares.
Five consumers have the following marginal utility of apples and pears:
Consumer Marginal Utility of Apples Marginal Utility of Pears
Alex 5 9
Becky 5 10
Clancy 4 8
Eileen 4 10
Hubert 3 4
The price of an apple is $1, and the price of a pear is $2.
Which, if any, of these consumers are optimizing over their choice of fruit?
A) Alex
B) Becky
C) Clancy
D) Eileen
E) Hubert
Answer:
Becky and Clancy are optimizing over their choice of fruit
Explanation:
In order to find which these consumers are optimizing over their choice of fruit we would have to use the following formula:
Marginal utility of apples/Marginal utility of pears=price of apple/price of pear
For Alex =5/9>1/2
For Becky =5/10=1/2
For Clancy =4/8=1/2
For Eileen =4/10<1/2
For Hubert=3/4>1/2
Therefore, only Becky and Clancy are optimizing
A company deposits $2,378 in a bank at the end of every year for 10 years. The company makes no deposits during the subsequent 5 years. If the bank pays 10% interest, how much would be in the account at the end of 15 years?
Answer:
Final Value= $61,037.04
Explanation:
Giving the following information:
Investment= $2,378 in a bank at the end of every year for 10 years.
The company makes no deposits during the subsequent 5 years.
Interest rate= 10%
First, we need to calculate the first 10 years.
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,378*[(1.1^10)-1]} / 0.1
FV= $37,899.20
Now, the 5 years:
FV= PV*(1+i)^n
FV= 37,899.2*(1.1^5)
FV= $61,037.04
"At the end of its third year of operations, the Sandifer Manufacturing Co. had $ 4,597,000 in revenues, $ 3,399,000 in cost of goods sold, $ 448,000 in operating expenses which included depreciation expense of $ 157,000, and a tax liability equal to 34 percent of the firm's taxable income. What is the net income of the firm for the year?"
Answer:
Net Income $ 495,000
Explanation:
The net income represent the amount that would be left after all expenses have been deducted from all the sales revenue.
$
Sales revenue 4,597,000
Cost of goods sold (3,399,000)
Gross profit 1,198,000
Operating expenses (448,000)
Profit before taxes 750,000
Taxes (34%×750,000) (255,000)
Net Income 495,000
Sunland Chemicals Company acquires a delivery truck at a cost of $30,400 on January 1, 2022. The truck is expected to have a salvage value of $3,200 at the end of its 4-year useful life. Compute annual depreciation for the first and second years using the straight-line method.
Answer:
$6,800 and $6,800
Explanation:
The computation of the depreciation expense for the first year and the second year using the straight line method is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($30,400 - $3,200) ÷ (4 years)
= ($27,200) ÷ (4 years)
= $6,800
In this method, the depreciation is the same for all the remaining useful life
Therefore for the first and second year, the same depreciation expense i.e $6,800 should be charged separately in each year
Between April 2011 and April 2016, the price of a U.S. postage stamp increased from $0.41 to $0.46. The price of a U.S. postage stamp has increased approximately ________ in terms of Indian rupees and ________ in terms of Chinese yuan.
Answer:
The price of a U.S. postage stamp has increased approximately 63% in terms of Indian rupees and 10% in terms of Chinese yuan.
Explanation:
the exchange rate between the US dollar and the Indian rupee:
April 2011 = 45.54 Indian rupees per dollar x $0.41 = 18.67 Indian rupees
April 2016 = 66.16 Indian rupees per dollar x $0.46 = 30.43 Indian rupees
change in Indian rupees = (30.43 - 18.67) / 18.67 = 63%
the exchange rate between the US dollar and the Chinese yuan:
April 2011 = 6.61 Chinese yuan per dollar x $0.41 = 2.71 Chinese yuan
April 2016 = 6.48 Chinese yuan per dollar x $0.46 = 2.98 Chinese yuan
change in Chinese yuan = (2.98 - 2.71) / 2.71 = 10%
Evaluating strategies LO C2 If the company raises its selling price to $240 per unit. 1. Compute Hudson Co.'s contribution margin per unit. 2. Compute Hudson Co.'s contribution margin ratio. 3. Compute Hudson Co.'s break-even point in units. 4. Compute Hudson Co.'s break-even point in sales dollars.
Answer:
Instructions are below.
Explanation:
We weren't provided with enough information to answer the requirements. But, I will provide the formulas.
1) Contribution margin:
CM= selling price - unitary variable cost
2) contribution margin ratio:
contribution margin ratio= contribution margin / selling price
3) break-even point in units
Break-even point in units= fixed costs/ contribution margin per unit
4) break-even point in sales dollars:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Kirby just inherited $250,000. He would like to hire a financial advisor to provide financial advice and to manage the inheritance. Kirby has interviewed two potential advisors. The first person indicated that he would not charge for his advice but would charge a 4.50% commission on any mutual funds purchased when managing the $250,000. The second person indicated that she would charge $2,500 to write a financial plan and 1% of any asset she manages. Which advisor should Kirby choose if he wants the $250,000 managed and is interested in minimizing his upfront expenses?
Answer:
First person
Explanation:
A semi-annual coupon bond has a coupon of 6% and its duration is 5.78 years. It trades at a yield of 7%, or a price of $94.54 per $100 face. The comparable Treasury rate is 5%. If the yield curve shifts up across the board by 50 bp and the spread increases to 280 bp, what is the new price of the bond
Answer:
$ 101.39
Explanation:
The new coupon rate would be the treasury rate plus 280bp which is 5%+2.8%=7.8%
The new yield to maturity would be 7%+0.5%=7.5%
Note that 100 basis point is 1%
The new price can be computed using excel pv formula
new price=-pv(rate,nper,pmt,fv)
rate is the semiannual yield i.e 7.5%*6/12=3.75%
nper is the number of semiannual coupons of the bond i.e 5.78*2=11.56
pmt is the semiannual coupon =$100*7.8%*6/12=$3.9
face value is $100
=-pv(3.75%,11.56,3.9,100)=$101.39
On January 1, 2018, Technicians Credit Union (TCU) issued 7 %, 20-year bonds payable with face value of $ 700 comma 000. The bonds pay interest on June 30 and December 31. Read the requirementsLOADING.... Requirement 1. If the market interest rate is 5 % when TCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. The 7 % bonds issued when the market interest rate is 5 % will be priced at ▼ a discount a premium face value . They are ▼ attractive unattractive in this market, so investors will pay ▼ face value less than face value more than face value to acquire them.
Answer:
1. If the market interest rate is 5 % when TCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain.
Since the market rate is lower than the coupon rate, the bonds will be sold at a premium. The issue price should be $875,719, which means that the bonds were sold at 125.1 and the following journal entry must be recorded:
Dr Cash 875,719
Cr Bonds payable 700,000
Cr Premium on bonds payable 175,719
The 7 % bonds issued when the market interest rate is 5 % will be priced at A PREMIUM. They are ATTRACTIVE in this market, so investors will pay MORE THAN FACE VALUE to acquire them.
Explanation:
issued $700,000 of 7%, 20 year bonds, pay semiannual coupons ($24,500 each)
issue price = present value of face value + present value of interest payments
present value of face value = $700,000 / (1 + 2.5%)⁴⁰ = $260,701present value of annuity = $24,500 x {1 - [1 / (1 + 2.5%)⁴⁰]} / 3.5% = $615,018issue price = $875,719
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year.
Cash Receipts Cash Payments
January $525,000 $475,000
February 400,000 350,000
March 450,000 $25,000
According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $40,000 on the last day of each month. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1.
Required:
Prepare monthly cash budgets for January, February, and March.
Answer:
Kayak Co.
Monthly Cash Budgets:
January February March
Bank Loan Balance $80,000 30,800 0
Beginning Cash Balance $40,000 $40,000 $58,592
Cash Receipts 525,000 400,000 450,000
Cash Payments (475,000) (350,000) (25,000)
Loan Interest Repayment (800) (308) 0
Balance 89,200 89,692 483,592
Loan Repayment -49,200 -30,800 0
Minimum Cash Balance 40,000 58,892 483,592
Explanation:
Like all budgets, a cash budget is a financial planning tool for management to forecast the cash receipts and expenditures in order to be well prepared to deal with a cash shortage and excess when they occur. It helps management to assess if the business can be run smoothly with cash resources without liquidity problems.
The ABC Corporation is considering introducing a new product, which will require buying new equipment for a monthly payment of $5,000. Each unit produced can be sold for $20.00. ABC incurs a variable cost of $10.00 per unit. Suppose that ABC would like to realize a monthly profit of $50,000. How many units must they sell each month to realize this profit?
Answer:
5500 units per month must be sold to earn the required profit
Explanation:
The target profit is the amount of profit that a business wants to earn. To calculate the target profit, we can use the break even analysis and include the factor for target profit under its formula and calculate the units and the dollar sales needed to earn the target profit.
In this case, the target profit is $50000 per month.
The break even in units = Fixed cost / contribution margin per unit
Contribution margin per unit = selling price per unit - variable cost per unit
To calculate units required for target profit, we will add the target profit to the fixed cost and divide by the contribution margin per unit
Target profit units = (fixed cost + target profit) / Contribution margin per unit
So,
Contribution margin per unit = 20 - 10 = $10 per unit
Target profit units = (5000 + 50000) / 10
Target profit units = 5500 units per month
Below are the year-end balance sheets for Wolken Enterprises:
Assets 2015 2014
Cash $ 200,000 $ 170,000
Accounts receivable 864,000
700,000
Inventories 2,000,000 1,400,000
Total current assets $3,064,000 $2,270,000
Net fixed assets 6,000,000 5,600,000
Total assets $9,064,000 $7,870,000
Liabilities and equity:
Accounts payable $1,400,000 $1,090,000
Notes payable 1,600,000 1,800,000
Total current liabilities $3,000,000 $2,890,000
Long-term debt 2,400,000 2,400,000
Common stock 3,000,000 2,000,000
Retained earnings 664,000 580,000
Total common equity $3,664,000 $2,580,000
Total liabilities and equity$9,064,000 $7,870,000
Wolken has never paid a dividend on its common stock, and it issued $2,400,000 of 10-year non-callable, long-term debt in 2014. As of the end of 2015, none of the principal on this debt had been repaid. Assume that the company's sales in 2014 and 2015 were the same. Which of the following statements must be CORRECT?
a. Wolken had negative net income in 2015.
b. Wolken repurchased some common stock in 2015.
c. Wolken issued new common stock in 2015.
d. Wolken issued long-term debt in 2015.
e. Wolken increased its short-term bank debt in 2015.
Answer: Wolken issued new common stock in 2015.
Explanation:
From the information that have been provided in the question, we can see that in 2015, the common stock was 3,000,000 while in 2014, the common stock was 2,000,000. This shows that there was an increase of: (3,000,000 - 2,000,000) = 1,000,000 new common stock.
Wolkem did not have a negative me income in 2015 and also didn't issue long term debt in 2015 as he had the same amount of long term debt for 2014 and 2015 which was 2,400,000.
Therefore option C is the correct answer as Wolken issued new common stock in 2015.
Baden Company manufactures a product with a unit variable cost of $100 and a unit sales price of $176. Fixed manufacturing costs were $480,000 when 10,000 units were produced and sold. The company has a one-time opportunity to sell an additional 1,000 units at $140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows.
a. Income would decrease by $8,000.
b. Income would increase by $8,000.
c. Income would increase by $140,000.
d. Income would increase by $40,000.
Answer:
Option d is correct
Increase in income $40,000
Explanation:
$
Sales revenue from Order = (140× 1,000)= 140,000
Variable cost of order ( 100× 1,000) = (100,000)
Increase in income 40,000
Note that the fixed costs of $480,000 was not include in the analysis. This is is so because it would be still incurred whether the order is accepted or not. Hence, it is irrelevant for this decision.
Problems and Applications
The many identical residents of Whoville love drinking Zlurp. Each resident has the following willingness to pay for the tasty refreshment:
Quantity Willingness to Pay (Dollars)
First bottle 5
Second bottle 4
Third bottle 3
Fourth bottle 2
Fifth bottle 1
Further bottles 0
The cost of producing a bottle of Zlurp is $1.50, and the competitive suppliers sell it at this price. (The supply curve is horizontal.)
Each Whovillian will consume ______ bottles and receive a consumer surplus of _______$ . Producing Zlurp creates pollution. Each bottle has an external cost of $1.
Taking this additional cost into account, total surplus per person in the allocation you previously determined decreases to _______$ .
Cindy Lou Who, one of the residents of Whoville, decides on her own to reduce her consumption of Zlurp by 1 bottle.
Cindy's consumer surplus (ignoring the cost of pollution she experiences) is now ______$ . Her decision_____ total surplus in Whoville by _______$ .
Mayor Grinch imposes a $1 tax on each bottle of Zlurp.
Consumption per person is now _______bottles. This yields a per-person consumer surplus of ______$ not including the cost of pollution, a per-person external cost of _____$ , and government revenue of_______ $ per person. Total surplus per person is now ______$ as a result of this policy. (Hint: Total surplus is equal to consumer surplus minus the external cost of pollution plus government revenue.)
Based on your calculations, you_____ support the mayor's policy because it ______welfare compared to before the tax.
Answer and Explanation:
The calculations are shown below:
1) 4 is choosen because the marginal utility should be less than the marginial cost and if he choose beyong this point, the cost of the drink is more than the willingness to pay
2) The consumer surplus is
= (5 - 1.5) + (4 - 1.5) + (3 - 1.5) + (2 - 1.5)
= 8
3) Total surplus decreases to
= Consumer surplus - external cost
= 8 - 4
= 4
4) Cindy's Consumer surplus is
= (5 - 1.5) + (4 - 1.5) + (3 - 1.5)
= 7.5
5) Increases
6) 8 - 7.5 = 0.5
7) Consumption = 3 bottles
8) Consumer surplus is
= (5 - 2.5) + (4 - 2.5) + (3 - 2.5)
= 4.5
9) External cost = 3 × 1 = 3 bottle
10) Government revenue = 3 × 1 = 3 bottle
11) Total surplus is
= Consumer surplus - external cost + government revenue
= 4.5 - 3 + 3
= 4.5
12) would
13) increases
Widget Makers LLC started business January, 01, 2010. They paid a $6,000 premium for insurance coverage on their inventory. The coverage expires June 01, 2010. At this time they renew for the remainder of the year by paying an additional premium of $7,700. What is the quarterly insurance expense that Widget Makers should report for the period ending June 30,2010.
Answer:
$3,500
Explanation:
The quarterly insurance expense to report for the period ending June 30 2010 comprises of two months payment from the first payment and one month portion of the second payment as computed thus:
Insurance for April to May=$6,000*2/5=$2400
Insurance for June=$7,700*1/7=$1100
insurance expense for June=$2,400+$1,100=$3,500
Note that the first payment covers first 5 months while the second one covers the last 7 months
The ____ of a limited liability company establishes the company's method of management, allocation of profits and losses among members, restrictions on the transfer of membership interests, and the process to be followed in dissolving the company.
Answer:
Operating agreement.
Explanation:
A limited liability company (LLC) is a type of legal hybrid-business structure that can combine both partnership and corporation form of business, and the owners are only responsible for its debts with respect to the amount of capital they have invested. The first formal LLC statute was enacted by Wyoming in 1977 based on the Panamanian LLC and the 1982 German Code.
The operating agreement of a limited liability company establishes the company's method of management, allocation of profits and losses among members, member's rights and responsibilities, restrictions on the transfer of membership interests, voting power, and the process to be followed in dissolving the company.
Examples of some limited liability companies are Blockbuster LLC, Chrysler Group LLC, Dougherty & Company LLC, Westinghouse Electric Company LLC etc.
The advantages of a LLC is that it provides it's owners with limited liability, such as business debts. Also, LLC isn't taxed directly by the internal revenue service (IRS) because it isn't regarded as a separate tax business entity.
Transactions related to purchases and cash payments completed by Wisk Away Cleaning Services Inc. during the month of May 20Y5 are as follows:
May 1. Issued Check No. 57 to Bio Safe Supplies Inc. in payment of account, $345.
May 3. Purchased cleaning supplies on account from Brite N’ Shine Products Inc., $200.
May 8. Issued Check No. 58 to purchase equipment from Carson Equipment Sales, $2,860.
May 12. Purchased cleaning supplies on account from Porter Products Inc., $360.
May 15. Issued Check No. 59 to Bowman Electrical Service in payment of account, $145.
May 18. Purchased supplies on account from Bio Safe Supplies Inc., $240.
May 20. Purchased electrical repair services from Bowman Electrical Service on account, $110.
May 26. Issued Check No. 60 to Brite N’ Shine Products Inc. in payment of May 3 invoice.
May 31. Issued Check No. 61 in payment of salaries, $5,600.
Prepare a purchases journal and a cash payments journal to record these transactions. The forms of the journals are similar to those illustrated in the text. Place a check mark (✓) in the Post. Ref. column to indicate when the accounts payable subsidiary ledger should be posted. Wisk Away Cleaning Services Inc. uses the following accounts:
Cash 11
Cleaning Supplies 14
Equipment 18
Accounts Payable 21
Salary Expense 51
Electrical Service Expense 53
Answer:
Wisk Away Cleaning Services Inc.
a) Purchases Journal
Date Description Debit Credit
May 3 Cleaning Supplies 14 $200
Accounts Payable (Brite N’ Shine Products Inc.) 2`1 $200
To record the purchase of cleaning supplies on account.
May 18 Cleaning Supplies 14 $240
Accounts Payable (Bio Safe Supplies Inc.) 21 $240
To record the purchase of cleaning supplies on account.
May 20 Electrical Service Expense 53 $110
Accounts Payable (Bowman Electrical Service) 21 $110
To record the purchase of electrical repair service on account.
b) Cash Payments Journal
Date Description Debit Credit
May 1 Accounts Payable (Safe Supplies Inc.) 21 $345
Cash Account 11 $345
To record the issue of Check No. 57 in payment.
May 15 Accounts Payable (Bowman Electrical Service) 21 $145
Cash 11 $145
To record the issue of Check No. 59 in payment.
May 26 Accounts Payable (Brite N' Shine Products Inc.) 21 $200
Cash 11 $200
To record the issue of Check No. 60 in payment.
May 31 Salaries Expense 51 $5,600
Cash 11 $5,600
To record the issue of Check No. 61 in payment of salaries.
Explanation:
Journals are prepared to record transactions. There are many types of journal. They are classified according to the type of transactions. There are purchases journal, sales journal, general journal, cash journal, etc.
You just received a bonus of $4 comma 000. a. Calculate the future value of $4 comma 000, given that it will be held in the bank for 7 years and earn an annual interest rate of 5 percent. b. Recalculate part (a) using a compounding period that is (1) semiannual and (2) bimonthly. c. Recalculate parts (a) and (b) using an annual interest rate of 10 percent. d. Recalculate part (a) using a time horizon of 14 years at an annual interest rate of 5 percent. e. What conclusions can you draw when you compare the answers in parts (c) and (d) with the answers in parts (a) and (b)?
Answer:
Kindly check attached picture
Explanation:
Kindly check attached picture
A schedule of cost of goods manufactured is also known as a: Multiple Choice Raw materials processed schedule. Factory supplies used schedule. Manufacturing statement. Total finished goods statement. Cost of goods sold schedule.
Answer:
Manufacturing statement
Explanation:
As the schedule for the raw material i.e used during the year is the same for the factory supplies i.e used. The finished goods statement is the statement which only records the actual goods that are finished during the year. And, the cost of goods schedule shows the sold-out schedule of the goods
And,
As we know that
Cost of goods manufactured = Beginning work in process + Raw materials used + direct labor cost + overhead cost - closing work in process
Therefore the cost of goods manufactured schedule is also known as Manufacturing statement
Computer equipment was acquired at the beginning of the year at a cost of $57,000 that has an estimated residual value of $9,000 and an estimated useful life of 5 years. Determine the second-year depreciation using the straight-line method.
Answer:
$9,600
Explanation:
Annual Depreciation = Cost – Residual Value/Useful Life
Using the formula
Cost=$57,000
Residual value =$9,000
Useful life =5years
Hence:
$57,000 – $9,000/5
=$48,000/5
= $9,600
The second-year depreciation will therefore be $9,600
Dextra Computing sells merchandise for $6,000 cash on September 30 (cost of merchandise is $3,900). Dextra collects 5% sales tax.
1. Record the entry for the $6,000 sale and its sales tax.
2. Record the entry that shows Dextra sending the sales tax on this sale to the government on October 15.
3. Record the cost of Sept. 30th sales.
4. Record the entry that shows the remittance of the 5% tax on this sale to the state government on October 15.
5. Record the cash sales and 3% sales tax.
Answer:
1.
Sept - 30
DR Cash $6,300
CR Sales $6,000
CR Sales Tax $300
(To record Cash sales and Tax Payable)
Working
Sales Tax = 6,000 * 5%
= $300
2.
Oct - 15
DR Sales Tax Payable $300
CR Cash $300
(To record remittance of Sales Tax to the State Government)
3.
Sept - 30
DR Cost of Goods Sold $3,900
CR Merchandise Inventory $3,900
(To transfer inventory to Cost of Goods sold)
4. Repeat question for question 2.
5. Repeat question for question 1.
1. Dr. Cash $6300
Cr. Sales $6000
Cr. Sales tax $300
(Being the cash sales and tax payable recorded.)
2. Oct 15
Dr. Sales Tax Payable $300
Cr. Cash $300
(Being remittance of Sales Tax to the State Government is recorded)
Sept. 30
Dr. Cost of Goods Sold $3,900
Cr. Merchandise Inventory $3,900
(Being transfer of inventory to Cost of Goods sold is recorded)
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34. Teller Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $12.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Teller has 3,900 pounds of clay mix in beginning inventory and wants to have 4,500 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month?
Answer:
budgeted manufacturing overhead=$2871
Explanation:
Direct labour hours= budgeted production × standard hours per unit
= 870× 1/4 hour=217.5 hours
Direct labour cost = 217.5 × $12 =$2610
Manufacturing overhead = Overhead absorption rate × direct labour cost
= 110%×2610 =2,871
Budgeted manufacturing overhead=$2871
The Soft Company has provided the following information after year-end adjustments:
• Allowance for doubtful accounts was $11,000 at the beginning of the year and $30,000 at the end of the year.
• Accounts receivable were $80,000 at the beginning of the year and $420,000 at the end of the year.
• Accounts written off as uncollectible totaled $21,000.
• Net sales totaled $2,720,000.
• Sales discounts were $102,000.
How much was Soft's bad debt expense for the year?
a. $1,200
b. $19,800.
c. $21,000.
d. $40,800
Answer:
The allowance for doubtful accounts at end of the year is $30,800, not $30,000
The correct option is D,$40,800
Explanation:
The bad debt expense for the current year is the sum of the ending allowance for doubtful debt plus the amount written off in the year as uncolletible minus the opening balance of allowance for doubtful debt.
Ending balance of allowance for doubtful debts is $30,800
The amount written off as uncollectible is $21,000
opening balance of allowance for uncollectible is $11,000
bad debt expense=$30,800+$21,000-$11,000=$40800
You just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reserves and there are no leaks in the banking system. That is, all money lent by banks gets deposited in the banking system. Round your answers to the nearest dollar. If the reserve requirement is 20 %, how much will your deposit increase the total value of checkable bank deposits
Answer: $20,000
Explanation:
The reserve requirement is a central bank regulation which sets minimum amount of reserves which must be held by a commercial bank.
When reserve requirement = 20%
= 20/100
= 0.20
Total increase in the checkable deposit will be = $4,000 / 0.20= $20,000
instances where' silence is golden ' is applicable
On March 5, Oak Corp. provided services on account to Pine. Oak initially recorded this as an account receivable but it later became apparent Pine could not pay quickly so Oak required Pine to sign a $100,000, 12%, 2-month interest-bearing note. The journal entry required by Oak when Pine signs the note includes
Debit Notes Receivable $100,000; credit Accounts Receivable $100,000.
Debit Notes Receivable $100,000; credit Service Revenue $100,000.
Debit Notes Receivable $102,000; credit Service Revenue $102,000.
Debit Notes Receivable $102,000; credit Accounts Receivable $102,000.
Answer:
The correct option is Debit Notes Receivable $100,000; credit Accounts Receivable $100,000
Explanation:
The journal entry to record when the notes receivable was signed to credit accounts receivable with the original value of the debt and debit same amount to notes receivable as is the case with the first option.
The interest due on the notes of $2,000 ($100,000*12%*2/12) would be recognized when the notes receivable become due for payment not immediately
