Answer:
1. If the price of (x) falls, the budget constraint
c. Rotates outward about the x-intercept.If the price of a good X decreases, but the price of a good Y does not, then a consumer will be able to purchase a larger quantity of good X, but the same quantity of good Y. The Y-intercept will remain the same, but the X-intercept will shift outward.
2. If the prices of all goods increase by the same proportion as income, the quantity demanded of good (x) will
c. Remain unchangedLets say you have $100 and you buy 20 hamburgers. If your income increases to $110 (10% increase), but the price of hamburgers increase to $5.50, then inflation offsets any change in income. You will still be able to buy only 20 hamburgers, so your real income didn't change, only your nominal income changed.
Preston Department Store has a new promotional program that offers a free gift-wrapping service for its customers. Preston's customer-service department has practical capacity to wrap 5,000 gifts at a budgeted fixed cost of $4,950 each month. The budgeted variable cost to gift-wrap an item is $0.35. During the most recent month, the department budgeted to wrap 4,500 gifts. Although the service is free to customers, a gift-wrapping service cost allocation is made to the department where the item was purchased. The customer-service department reported the following for the most recent month:
Department Budgeted Items Wrapped Actual Items Wrapped
Giftware 1000 1200
Women's Apparel 850 650
Fragrances 1000 900
Men's Apparel 750 450
Domestic 900 800
Total 4500 4000
Required:
1. Using the single-rate method, allocate gift-wrapping costs to different departments in these three ways:
a. Calculate the budgeted rate based on the budgeted number of gifts to be wrapped and allocate costs based on the budgeted use (of gift-wrapping services).
b. Calculate the budgeted rate based on the budgeted number of gifts to be wrapped and allocate costs based on actual usage.
c. Calculate the budgeted rate based on the practical gift-wrapping capacity available and allocate costs based on actual usage.
2. Using the dual-rate method, compute the amount allocated to each department when (a) the fixe cost rate is calculated using budgeted costs and the practical gift-wrapping capacity, (b) fixed costs are allocated based on budgeted usage of gift-wrapping services, and (c) variable costs are allocated using the budgeted variable-cost rate and actual usage.
3. Comment on your results in requirements 1 and 2. Discuss the advantages of the dual-rate method.
Answer:
Preston Department Store
1) Using the single-rate method:
a. Calculation of the budgeted rate based on the budgeted number of gifts = Total overhead/budgeted number of gifts
= $6,525/4,500
= $1.45
Allocation of costs based on the budgeted use of gift-wrapping services:
Department Budgeted Items Budgeted Allocation
Wrapped Rate
Giftware 1,000 $1.45 $1,450.00
Women's Apparel 850 $1.45 1,232.50
Fragrances 1,000 $1.45 $1,450.00
Men's Apparel 750 $1.45 $1,087.50
Domestic 900 $1.45 $ 1,305.00
Total 4,500 $1.45 $6,525.00
b. Allocation of costs based on the actual use of gift-wrapping services:
Department Actual Items Budgeted Allocation
Wrapped Rate
Giftware 1,200 $1.45 $1,740.00
Women's Apparel 650 $1.45 $942.50
Fragrances 900 $1.45 $1,305.00
Men's Apparel 450 $1.45 $652.50
Domestic 800 $1.45 $ 1,160.00
Total 4,000 $1.45 $5,800.00
c. Budgeted rate based on the practical gift-wrapping capacity:
= Total budgeted costs/practical gift-wrapping capacity
= $6,700/5,000
= $1.34
Allocation of costs based on the actual use of gift-wrapping services:
Department Actual Items Budgeted Allocation
Wrapped Rate
Giftware 1,200 $1.34 $1,608.00
Women's Apparel 650 $1.34 $871.00
Fragrances 900 $1.34 $1,206.00
Men's Apparel 450 $1.34 $603.00
Domestic 800 $1.34 $ 1,072.00
Total 4,000 $1.34 $5,360.00
2. Using the dual-rate method:
Fixed cost rate = $4,950/5,000 = $0.99
Variable cost rate = $0.35
a) Allocation of costs based on the actual use of gift-wrapping services:
Department Budgeted Items Actual Items Allocation
Wrapped Wrapped Fixed Variable Total
Giftware 1,000 1,200 $990.00 $420 $1,410
Women's Apparel 850 650 841.50 227.5 $1,069
Fragrances 1,000 900 990.00 315 $1,305
Men's Apparel 750 450 742.50 157.5 $900
Domestic 900 800 891.00 280 $1,171
Total 4,000 $5,855
b) Allocation of fixed cost based on budgeted usage of gift-wrapping services:
Fixed cost rate based on budgeted usage = $4,950/4,500 = $1.10
Department Budgeted Items Allocation of
Wrapped Fixed costs
Giftware 1,000 $1,100
Women's Apparel 850 $ 935
Fragrances 1,000 $ 1,100
Men's Apparel 750 $ 825
Domestic 900 $ 990
Total 4,500 $4,950
c) Allocation of variable costs using the budgeted variable-cost rate and actual usage
Variable cost rate = $0.35
Department Actual Items Allocation of
Wrapped Variable costs
Giftware 1,200 $420
Women's Apparel 650 $227.50
Fragrances 900 $ 315
Men's Apparel 450 $157.50
Domestic 800 $280
Total 4,000 $1,400
3. It looks as if the dual-rate method is far better than the single-rate method. But it consumes more time during the allocation process. It is also a bit difficult and confusing.
The dual-rate cost allocation method categorizes costs into fixed costs and variable costs. The dual-rate method gives different cost allocation rates and is a more exact cost allocation method.
Explanation:
Practical capacity = 5,000
Budgeted fixed cost = $4,950
Budgeted variable cost = $0.35
Budgeted units = 4,500
Budgeted variable cost = $1,575 ($0.35 * 4,500)
Total overhead = $6,525 ($4,950 + 1,575)
Predetermined overhead rate = $1.45 ($6,525/4,500)
Department Budgeted Items Actual Items
Wrapped Wrapped
Giftware 1,000 1,200
Women's Apparel 850 650
Fragrances 1,000 900
Men's Apparel 750 450
Domestic 900 800
Total 4,500 4,000
Income statement data for Whirlpool Industries from the company’s 2016 financial statements follow. Use these data to reformulate the income statement for 2014, 2015, and 2016 under the assumption that warranty expense is a constant percentage of revenue across all three years. Specifically, compute the adjustments to: warranty expense, income tax expense, and net income. The company’s tax rate is 30%.
12 Months Ended ($ millions) Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2014
Net sales $23,928 $24,101 $23,082
Warranty expense 366 610 372
Required:
Compute the average warranty expense to net sales rate over the past three years.
1. The computation of the adjustments to warranty expense, income tax expense, and net income and the reformulation of the income statement for 2014, 2015, and 2016 for Whirlpool Industries are as follows:
12 Months Ended ($ millions) Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2014
Net sales $23,928 $24,101 $23,082
Warranty expense 366 610 372
Taxable income $23,562 $23,491 $22,710
Tax expenses (30%) $7,069 $7,047 $6,813
Net income $16,493 $16,444 $15,897
2. The computation of the average warranty expense to net sales rate over the past three years is as follows:
12 Months Ended ($ millions) Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2014
Net sales $23,928 $24,101 $23,082
Warranty expense 366 610 372
Warranty expenses to
net sales rate 1.5296% 2.5310% 1.6116%
Average warranty expenses to net sales rate = 1.89% (5.6722/3)
Data and Calculations:12 Months Ended ($ millions) Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2014
Net sales $23,928 $24,101 $23,082
Warranty expense 366 610 372
Warranty expenses to
net sales rate 1.5296% 2.5310% 1.6116%
Average warranty expenses to net sales rate = 1.89% (5.6722/3)
Thus, the average warranty expense to net sales rate over the past three years is 1.89%.
Learn more about preparing income statements at https://brainly.com/question/24498019
ChowMein Company is the exclusive Montana distributor of lawn mowers for a small manufacturing company. It sells only one model at $600 per unit and for which ChowMein pays $250. ChowMein's other variable costs amount to $50 per unit. Fixed costs are $2,000. In April, ChowMein sold 15 lawn mowers and it sold 20 in May.
Required:
Calculate the following values:
a. Monthly break-even point in sales dollars
b. Monthly break-even point in units
c. Monthly income for April
d. Monthly income for May
e. Margin of safety for April
Answer:
ChowMein Company
a. Monthly break-even point in sales dollars = Fixed Costs/Contribution margin
= $2,000/50%
= $4,000
b. Monthly break-even point in units = Fixed Costs/Contribution per unit
= $2,000/$300
= 6.67 or simply 7 units
c. Monthly income for April:
Sales ($600 * 15) = $9,000
Variable cost ($300 * 15) = $4,500
Contribution = $4,500
Fixed Costs = $2,000
Income = $2,500
d. Monthly income for May:
Sales ($600 * 20) = $12,000
Variable cost ($300 * 20) = $6,000
Contribution = $6,000
Fixed Costs = $2,000
Income = $4,000
e. Margin of Safety for April:
Sales in April minus Break-even Sales
= $9,000 - $4,000
= $5,000
Explanation:
Data and Calculations:
Unit selling price = $600
Unit variable costs = $300 ($250 + 50)
Unit Contribution = $300
Contribution margin = 50% ($300/$600 * 100)
Fixed Costs = $2,000
April sales = 15
May sales = 20
Halpern Corporation is authorized to issue 1,000,000 shares of $3 par value common stock. During 2018, its first year of operation, the company has the following stock transactions.
Jan.1 Paid the state $5,000 for incorporation fees.
Jan.15 Issued 500,000 shares of stock at $6 per share.
Jan.30 Attorneys for the company accepted 500 shares of common stock as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value of $7,000.
July2 Issued 100,000 shares of stock for land. The land had an asking price of $900,000. The stock is currently selling on a national exchange at $8 per share.
Sept.5 Purchased 15,000 shares of common stock for the treasury at $8 per share.
Dec.6 Sold 11,000 shares of the treasury stock at $11 per share.
Required:
Journalize the transactions for Halpern Corporation.
Answer and Explanation:
The Journal entries are shown below:-
1. Organization Expenses Dr, $5,000
To Cash $5,000
(Being Organization Expenses is recorded)
2. Cash Dr, $3,000,000 (500,000 × $6)
To Common Stock $1,500,000 (500,000 × $3)
Paid-In Capital in Excess of Par-Common Stock $1,500,000
(Being cash is recorded)
3. Organization Expenses Dr, $7,000
To Common Stock $1,500 (500 × $3)
Paid-In Capital in Excess of Par-Common Stock $5,500
(Being paid in capital in excess is recorded)
4. Land Dr, $800,000 (100,000 × 8 )
To Common Stock $300,000 (100,000 × $3)
To Paid-In Capital in Excess of Par-Common Stock $500,000
(Being land is recorded)
5. Treasury Stock Dr, $120,000 (15,000 × $8)
To Cash $120,000
(Being treasury stock is recorded)
6. Cash Dr, $121,000 (11,000 × $11)
To Treasury Stock $88,000 (11,000 × $8)
To Paid-In Capital from Treasury Stock $33,000
(Being cash is recorded)
Diamond Bank expects that the Singapore dollar will depreciate against the dollar from its spot rate of $.43 to $.42 in 60 days. The following interbank lending and borrowing rates exist:
Lending Rate Borrowing Rate
U.S. dollar 7.0% 7.2%
Singapore dollar 22.0% 24.0%
Diamond Bank considers borrowing 10 million Singapore dollars in the interbank market and investing the funds in dollars for 60 days.
Required:
a. Estimate the profits (or losses) that could be earned from this strategy.
b. Should Diamond Bank pursue this strategy?
Answer:
a) if you borrow 10 million Singapore dollars today and purchase $4,300,000. You then invest this money and earn $4,300,000 x 7% x 2/12 = $50,167 in interests. At the end of the 60 days you will have $4,350,167.
You can use the $4,350,167 to purchase 10,357,540 Singapore dollars.
At this moment, you will owe 10,000,000 x 24% x 2/12 = 400,000 in interests + 10,000,000 principal = 10,400,000 Singapore dollars
net loss = 10,357,540 - 10,400,000 = 42,460 Singapore dollars
b) No, they shouldn't since they will lose money. The problem with this operation is that the borrowing rate for Singapore dollars are too high (24%) vs a lending rate of 7% in US dollars.
A plastic manufacturing company has made a strategic decision to purchase a fleet of 3- D printers and use these printers to produce small and medium products for customers, instead of using traditional injection-mold techniques. Your Project Manager has projected that the new system will reduce labor costs by $36,000 each year over the next five years (Years 1-5). The purchase price (including installation and testing) of the new 3-D printers is $92,700. At the end of the project, the printers will be sold in the secondary market for $17,500. What is the net present value of this investment if the discount rate is 10.75% per year
Answer:
$51,696.44
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-92,700
Cash flow each year from year 1 to 4 = $36,000
Cash flow in year 5 = r $17,500 + $36,000 = $53,500
I = 10.75%
NPV = $51,696.44
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
A corporate bond with a 5 percent coupon has 10 years left to maturity. It has a credit rating of BBB and a yield to maturity of 8.0 percent. Recently, the firm has gotten into some trouble and the rating agency is downgrading the firm’s bonds to BB. The new appropriate discount rate will be 9 percent. What will be the change in the bond's price, in dollars? Assume interest payments are paid semi-annually and par value is $1,000. (Round your answer to 2 decimal places. Do not include a dollar sign. If the price decreases, use a negative "-" sign. If the price increases, use a "+" sign.)
Answer:
$56.31
Explanation:
The computation of change in the bond's price, in dollars is presented with the help of a spreadsheet that has been attached.
Price at BBB ratings = $796.15
Price at BB ratings = $739,84
Change in bond's price is come from
= $796.15 - $739.84
= $56.31
Hence, the change in the bond price is $56.30 and the same is to be considered
For the current year, Hodges Department Store reported the following data:
Goods available for sale $1,074,450
December 31, inventory balance 85,430
The current replacement cost of inventory on balance sheet data is $91,730. Using the lower-of-cost-or-market rule, what is the cost of goods sold for Hodges
Department Store?
A. 5897,290
O B. $982.720
C. $989,020
D. $898,060
Using the lower-of-cost-or-market rule, what is the cost of goods sold for Hodges is: C. $989,020.
Cost of good soldUsing this formula
Cost of goods sold=Goods available for sale-Inventory balance
Where:
Goods available for sale=$1,074,450
Inventory balance=$85,430
Let plug in the formula
Cost of good sold=$1,074,450-$85,430
Cost of good sold=$989,020
Inconclusion Using the lower-of-cost-or-market rule, what is the cost of goods sold for Hodges is: C. $989,020.
Learn more about Cost of good sold here:https://brainly.com/question/24561653
Federal Trade Commission (FTC) regulations require that: Multiple Choice all used cars be sold with a warranty. used car buyers be informed of whether or not the vehicle comes with a warranty. used cars with over 100,000 miles be sold only by the individual owner, not by a dealer. major repairs must be made on all used cars prior to being offered for sale. the seller of a defective used car pay half the cost of the required repairs.
Federal Trade Commission (FTC) regulations require that used car buyers be informed of whether or not the vehicle comes with a warranty.
What is the Federal Trade Commission
The Federal trade commission is a body that is saddled with the responsibility of enforceing federal consumer protection laws which are aimed at preventing fraud, deception and unfair business practices.
The Commission also prevents federal antitrust laws that guides against anticompetitive mergers and other business practices that could result in higher prices, fewer choices, or less innovation.
Learn more about the FTC at https://brainly.com/question/2376957
Jennifer and Jamar are married and live in a home with their 13-year-old dependent son, Oscar. This year, they had the following tax information. Jamar’s salary $ 60,000 Jennifer’s Qualified Business Income from sole proprietorship 95,000 Dividend income 2,800 Deduction for self-employment tax 6,712 Itemized deductions 19,200 Compute adjusted gross income (AGI) and taxable income.
a. AGI $151,088; taxable income $89,430.
b. AGI $157,800; taxable income $114,000.
c. AGI $157,800; taxable income $133,000.
d. AGI $151,088; taxable income $108,630.
Answer:
d. AGI $151,088; taxable income $108,630.
Explanation:
First we need to calculate Gross Income
Gross Income = Salary Income + Business Income + Dividend Income
Gross Income = $60,000 + $95,000 + $2,800
Gross Income = $157,800
Now Calculate adjusted gross income
Adjusted Gross Income = Gross Income - Self Employment Tax
Adjusted Gross Income = $157,800 - $6,712
Adjusted Gross Income = $151,088
Deduction will be as follow
Higher of
Itemized Deduction = $19,200
Standard deduction = $24,400
So, Standard deduction will be made because it is higher
QBI deduction = $95,000 x 20% = $19,000
Taxable Income = Adjusted Gross Income - Standard Deduction - QBI deduction
Taxable Income = $151,088 - $24,400 - $19,000
Taxable Income = $107,688
WSP Manufacturing produces a pesticide chemical and uses process costing. There are three processing departmentsMixing, Refining, and Packaging. On January 1, the first departmentMixinghad no beginning inventory. During January, fl. oz. of chemicals were started in production. Of these, fl. oz. were completed and fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly through the process. At the end of the month, WSP calculated equivalent units. The ending inventory in the Mixing Department was % complete with respect to conversion costs. With respect to conversion costs, how many equivalent units were calculated for the product that was completed and for ending inventory?
Answer: Product completed: 32,000 equivalent units; Products in ending inventory: 4,800 equivalent units
Explanation:
The question notes that 32,000 fl. oz were completed and the conversion costs were applied evenly so the completed EUP is;
= 32,000 fl. oz.
The EUP for the closing inventory;
Units were 60% complete in respect to Conversion and there are 8,000 units in process.
= 8,000 * 60%
= 4,800 fl. oz
The Werner Corporation uses the weighted-average method in its process costing system. The company recorded 24,400 equivalent units for conversion costs for November in a particular department. There were 4,000 units in the ending work in process inventory on November 30 which were 60% complete with respect to conversion costs. The November 1 work in process inventory consisted of 5,000 units which were 40% complete with respect to conversion costs. A total of 22,000 units were completed and transferred out of the department during the month. The number of units started during November in the department was: rev: 02_21_2018_QC_CS-116232 Multiple Choice 21,000 units 17,000 units 22,000 units 26,000 units
Answer:
21,000 units
Explanation:
The computation of the number of units started during November in the department is shown below:-
Number of units started during November in the department = units completed and transferred out + units in the ending work in process inventory - units in the Beginning work in process inventory
= 22,000 + 4,000 - 5,000
= 21,000 units
Therefore we have applied the above formula.
James uses a random letter and random number generator to create his bank account password. This action helps safeguard his bank account against ______.
a. phishing
B. HACKING
c. dumpster diving
d. skimming
Answer: B. HACKING
Explanation: just did it
James uses a random letter and random number generator to create his bank account password. This action helps safeguard his bank account against "hac-king". The correct option is B.
The hac-king refers to the activity which is performed of compromising digital devices and network by gaining unauthorized access to an account or computer system.
The types of hac-king are as follows, the system, mobile, computer, network, password and the website hac-king. James uses a random letter and random number generator to create his bank account password is hac-ked by the password hac-king.
Therefore, the correct option is B.
To know more about hacking here,
https://brainly.com/question/28311147
#SPJ2
What is the Governance Structures mean
The Green Company, an accrual basis taxpayer, provides business-consulting services. Clients generally pay a retainer at the beginning of a 12-month period. This entitles the client to no more than 40 hours of services. Once the client has received 40 hours of services, Green charges $500 per hour. Green Company allocates the retainer to income based on the number of hours worked on the contract. At the end of the tax year for contracts entered into for the current year, the company had $50,000 of unearned revenues from these contracts. The company also had $10,000 in unearned rent income received this year from excess office space leased to other companies. Based on the above, Green must include in gross income for the subsequent tax year:A. $60,000.B. $50,000.C. $10,000.D. $0.E. None of these.
Answer:
D. $0
Explanation:
Unearned revenues are a liability (permanent account), therefore, they cannot be included in the income statement.
E.g. Journal entry to record unearned service revenue
Dr Cash 50,000
Cr Unearned revenue 50,000
Unearned revenue will continue to be a liability until the earning process is completed, then the liability is cancelled and revenue is recognized.
E.g. Journal entry to record accrued revenue
Dr Unearned revenue 50,000
Cr Service revenue 50,000
Cheryl wants to have $2,000 in
spending money to take on a
trip to Disney World in three
years. How much must she
deposit now in a savings
account that pays 5% to have
the money she needs in three
years?
Answer:
$1, 727.68
Explanation:
Cheryl wants to have $2000 three years from now in an account that pays 5%
The $2000 is equivalent to the Future value when applying the compound interest formula. The present value is the amount she needs to invest now.
Fv= PV (1+5/100)^3
$2000 = PV(1+0.05)^3
$2000 =Pv 1.157625
Pv = $2000/1.157625
Pv= 1,727.68
Cheryl has to invest $1, 727.68
Which of the following industries is most likely to have low equipment utilization?
Answer:
Restaurants
Explanation:
The utilities sector refers to a category of companies that provide basic amenities, such as water, sewage services, electricity, dams, and natural gas.
The maximum dollar amount that can be borrowed using the cash advance provision on a credit card is called the:
Almonds are a crop that grows on trees. Farmers do not need to replant trees every year to produce a crop of almonds. It takes at least five years after planting for trees to bear fruit. Several factors such as weather, disease, and long term projections about price impact the supply of almonds available. Barley is a grass that must be planted each year to produce a crop. The growing season is short, about three to four months. Several factors influence farmers' decisions to plant barley each year, including price, weather, and disease.
Based on this information. Which of the followings are true?
a. Almonds have a more inelastic supply in the short run because little can be done to change production in the short run.
b. It is impossible to infer anything about the price elasticity of supply for these two crops.
c. Barley has a more inelastic supply in the short run because barley is more dependent on price in the short run.
d. The crops have the same price elasticity of supply because they are both agricultural commodities.
Answer: a. Almonds have a more inelastic supply in the short run because little can be done to change production in the short run.
Explanation:
Based on the scenario given in the question, the correct answer will be:
(a) almonds have a more inealstic supply in the short run because little can be done to change production in the short run.
Due to the fact that option the determinants of supply of almonds and barley are mentioned, option (b) isn't correct.
For option (c), the supply of barley isn't inelastic. This can be seen as the output of barley can be increased more than the output of almond.
For option (d), just because they're both agricultural commodities doesn't mean that they'll have same price elasticity of supply.
The true statement should be option a. Almonds have a more inelastic supply in the short run because little can be done to change production in the short run.
Supply:Almonds should have a more inelastic supply in the short run since little could be done to vary the production in the short run. because of this, the other options don; 't have an inelastic supply since barley output should be more than the almond output.
learn more about the supply here: https://brainly.com/question/17975723
The following information pertains to Sunland Company.
1. Cash balance per bank, July 31, $7,688.
2. July bank service charge not recorded by the depositor $47.
3. Cash balance per books, July 31, $7,724.
4. Deposits in transit, July 31, $3,060.
5. $2,376 collected for Sunland Company in July by the bank through electronic funds transfer. The collection has not been recorded by Sunland Company.
6. Outstanding checks, July 31, $695.
Required:
a. Prepare a bank reconciliation at July 31, 2022.
b.Journalize the adjusting entries at July 31 on the books of Sunland Company.
Answer:
A. Adjusted cash balance per bank $10,053
Adjusted cash balance per book $ 10,053
B. July 31
Dr Cash $ 2,376
Cr Accounts Receivable $ 2,376
July 31
Dr Bank service charge $47
Cr Cash $ 47
Explanation:
Preparation of Bank Reconciliation
31-Jul-22
SUNLAND COMPANY
Cash Balance per bank statement $7,688
Add: Deposit in transit $ 3,060
$ 10,748
Less: Outstanding checks $ 695
Adjusted cash balance per bank $ 10,053
Cash balance per books $ 7,724
Add: Electronic fund transfer received $2,376
$10,100
less; Bank service charge $ 47
Adjusted cash balance per books $10,053
B. Preparation of Journal entry
July 31
Dr Cash $ 2,376
Cr Accounts Receivable $ 2,376
(To record electronic fund transfer received by bank)
July 31
Dr Bank service charge $ 47
Cr Cash $ 47
(To record bank service charges )
At Mighty-Tuf Industrial Products Group, 30 percent of its employees are neither a citizen of the parent company nation nor the host nation where they have a manufacturing plant. These employees would be classified as
Employees that are not from the parent country or the host nation are known as third-country nationals.
Who are third-country nationals?These are those employees that do not come from the country the company was founded in, or from the country that the company is operating in.
These employees are usually hired based on competence and not due to internal policies dictating that a certain number of nationals or home citizens must be hired.
Find out more on employee hiring policies at https://brainly.com/question/25907189.
Collections from customers are normally 68 percent in the month of sale, 17 percent in the month following the sale, and 13 percent in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes full advantage of the 1 percent discount allowed on purchases paid for by the tenth of the following month. Purchases for August are budgeted at $70,000, and sales for August are forecasted at $76,000. Cash disbursements for expenses are expected to be $15,800 for the month of August. The company’s cash balance on August 1 was $28,000. Required: Prepare the expected cash collections during August. Prepare the expected cash disbursements during August. Calculate the expected cash balance on August 31.
Answer:
A. $ 72,780
B. $80,150
C. $20,630
Explanation:
A. Preparation of the expected cash collections during August.
Expected collection August
Month Sales Percent Expected collections
June 74,000 69% 51,060
July 78,000 19% 14,820
August 69,000 10% 6,900
Total$ 72,780
2. Preparation of the expected cash disbursements during August.
Expected cash disbursement
during August
July purchases to be paid in August $65000
Less 1% cash discount 650
Net purchases cost$64,350
Add Cash disbursements for expenses 15,800
Total payments$80,150
3. Calculation for the expected cash balance on August
Expected cash balance on 31 August
Balance, 1 August$28,000
Add Expected receipts 72,780
Cash available$100,780
LessExpected payments 80,150
Expected balance, 31 August$20,630
Costs that can be influenced by management at a specific level of management are called
Oa. direct costs
Ob. noncontrollable costs
Oc. controllable costs
Od. variable costs
The controllable costs are the costs that can be influenced by management at a specific level of management.
What are controllable costs?These are the types of costs over which an organization or company have full authority.
This type of cost has to do with a companies marketing budgets and its costs of labor.
Read more on controllable costs here: https://brainly.com/question/1549591
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 30,000 bottles of wine were sold every week at a price of $4 per bottle. After the tax, 25,000 bottles of wine are sold every week; consumers pay $6 per bottle, and producers receive $3 per bottle (after paying the tax). The amount of the tax on a bottle of wine is $ per bottle. Of this amount, the burden that falls on consumers is $ per bottle, and the burden that falls on producers is $ per bottle. True or False: The effect of the tax on the quantity sold would have been smaller if the tax has been levied on consumers. True
Answer:
Explanation:
We were informed from the question that;
BEFORE; the tax, 30,000 bottles of wine were sold every week at a price of $4 per bottle.
AFTER; After the tax, 25,000 bottles of wine are sold every week; consumers pay $6 per bottle and producers receive $3 per bottle (after paying the tax).
✓✓The amount of tax on wine = $6 - $3 = $3 per bottle
✓✓The tax burden on consumers = The amount paid after tax - The amount paid before tax
= $6 - $4
=$2 per bottle
✓✓The tax burden on Producers = Price received before tax - price received after tax
= $4 - $3
=$1 per bottle
Hence, The amount of the tax on a bottle of wine is $3 per bottle. Of this amount, the burden that falls on consumers is $2 per bottle, and the burden that falls on producers is $1 per bottle.
The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers(FALSE)
This is false, since the The tax burden on Producers is $1 per bottle while that of The tax burden on consumer is $2 per bottle.
On October 28, 2021, Zebra Technologies Corporation committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2021, the end of the company's fiscal year. The division's loss from operations for 2021 was $1,940,000. The division's book value and fair value less cost to sell on December 31 were $3,130,000 and $2,300,000, respectively. What before-tax amount(s) should Zebra Technologies Corporation report as loss on discontinued operations in its 2021 income statement
Answer:
$2,770,000
Explanation:
The computation of loss on discontinued operations is shown below:-
Loss on disposal of discontinued division = Book value of assets of discontinued division - Fair value of assets of discontinued division
= $3,130,000 - $2,300,000
= $830,000
Loss on discontinued operations = Loss on operations of discontinued division + Loss on disposal of discontinued division
= $1,940,000 + $830,000
= $2,770,000
Organization Culture Profile (OCP) is a framework that provides an insight into different organization types. Which of the
following does NOT accurately describe OCP in all corporations?
O Innovation
O Detail-oriented
O Outcome-oriented
O Values
The option that doesn't festive Organization Culture Profile is D. Values.
What is Organization Culture Profile?Organization Culture Profile simply means the outcome oriented culture that emphasize results, achievements, as important values.
OCP comprises of dimensions such as respect, outcome orientation, tram oriented, innovation, etc.
Learn more about culture on:
https://brainly.com/question/26455907
Use this information about Department J to answer the question that follow. Department J had no work in process at the beginning of the period. 18,000 units were completed during the period, and 2,000 units were 30% completed at the end of the period. The following manufacturing costs were debited to the departmental work in process account during the period (assume the company uses FIFO and rounds cost per unit to two decimal places): Direct materials (20,000 at $5) $100,000 Direct labor 142,300 Factory overhead 57,200 Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the 18,000 units completed during the period
Answer: $283,140
Explanation:
Total Cost = Materials cost + Conversion cost
Conversion cost per unit = (Direct labor + Factory overhead ) / Equivalent units of production
= (142,300 + 57,200)/ ( 18,000 + (2,000 * 30%))
= 199,500/ 18,600
= $10.73 per unit
Direct material cost is $5 per unit from the question.
Total cost of the 18,000 units;
= (18,000 * 5) + (18,000 * 10.73)
= $283,140
Common stock, par $12 per share, 49,000 shares outstanding. Preferred stock, 8 percent, par $17.5 per share, 7,710 shares outstanding. Retained earnings, $238,000. On January 1, 2019, the board of directors was considering the distribution of a $63,800 cash dividend. No dividends were paid during 2017 and 2018. Required: Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions: The preferred stock is noncumulative. The preferred stock is cumulative. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock
Answer:
a. The Preferred stock is noncumulative.Preferred stock
= 7,710 * 17.5 * 8%
= $10,794
Per share
= 10,794/7,710
= $1.40
Common Shareholders.
= 63,800 - 10,794
= $53,006
Per share
= 53,006/49,000
= $1.08
b. Preferred stock is cumulative.This means that if preferred dividends are not paid in a year, they will be accrued and paid when they can.
Preferred stock
= 7,710 * 3 years (2017,2018,2019)
= $23,130
Per share = 23,130/7,710
= $3
Common stock
= 63,800 - 23,130
= $40,670
Per share
= 40,670/49,000
= $0.83
c. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock?
b. The dividends in arrears on the preferred stock had to be fulfilled before dividends could be paid for the current year.
Celia is a college student who just took her first trip to Las Vegas. While there, she charged $2,000 on her new credit card. When her credit card statement arrived, she noted that there were $3,000 in charges related to her Las Vegas trip! Horrified, she called the credit card company to dispute the excess charges. The credit card company insisted she had charged $3,000 on the card and Celia insisted she had only charged $2,000 on the card. Finally, Celia and the credit card company agreed that Celia would pay $2,500 as full payment of the credit card. Celia promptly sent them a check for $2,500. The following month, the credit card company billed Celia for the remaining $500! Celia sued, arguing that the credit card company had agreed to accept $2,500 as payment in full. The court agreed and ruled in Celia’s favor, holding that the credit card company and Celia had entered into an accord and satisfaction. But what if the facts of the case were different? Select each set of facts below that could change the outcome of the court’s decision.
Answer:
1)Celia actually did charge $3,000 on her credit card and admitted such to the credit card company, but argued she only had $2,500 in her bank account to pay off the credit card.
Telling a bank or a credit card company that you do not have enough money top pay right now will not make them forgive the unpaid balance. They might offer you some type of agreement or schedule for you to pay for the remaining balance (in this case $500). A court will never rule in favor of a borrower just because they do not want to pay the whole balance and will not accept a payment schedule.
3) Celia and the credit card company agreed that Celia would pay $2,500 as full payment of the disputed debt, but Celia never paid the $2,500.
When Celia and the credit card company reached an agreement to settle their dispute, that agreement is binding on both parties. Celia must pay the $2,500 and the credit card company will not charge any more money. But if Celia doesn't make the payment, she is not performing her part and the credit card company can sue her for it, and will probably win.
Explanation:
the options are missing:
Celia actually did charge $3,000 on her credit card and admitted such to the credit card company, but argued she only had $2,500 in her bank account to pay off the credit card. Celia actually did charge $3,000 on her credit card and admitted such to the credit card company. However, Celia had no money, so she offered the credit card company her car in exchange for full payment of the debt and the credit card company accepted. Celia turned over title to her car to the credit card company. Celia and the credit card company agreed that Celia would pay $2,500 as full payment of the disputed debt, but Celia never paid the $2,500. Celia believed she did not charge anything on her credit card during her trip to Las Vegas. The credit card company claims she charged $3,000 to the card while in Las Vegas.You are a tutor for introductory financial accounting. You tell your students "Recording adjusting entries is a critical step in the accounting cycle, and the two major classifications of adjusting entries are prepayments and accruals". Chris, one of the students in the class, says, "I don't understand".
Required:
1. When do prepayments occur? When do accruals occur?
2. Describe the appropriate adjusting entry for (a) prepaid expenses, (c) deferred revenues.
3. What is the effect on (a) net income (b) assets (c) liabilities (d) stockholders' equity of not recording a required adjusting entry for prepayments? For each item, indicate clearly whether the effect will be an Increase, a Decrease, or No Effect. Please present your answers using the template below. I have done Net income as an example. Item Increase Decrease No Effect Net income x Assets Liabilities Stockholders' Equity
4. Describe the appropriate adjusting entry for (a) accrued expenses (c) accrued revenues.
5. What is the effect on (a) net income (b) assets (c) liabilities (d) stockholders' equity of not recording a required adjusting entry for accruals? For each item, clearly indicate whether the effect will be an Increase, a Decrease, or No Effect. Please present your answers using the template below. Item Increase Decrease No Effect Net income Assets Liabilities Stockholders' Equity
Answer:
1 and 2
for e.g., on January 2, you purchase a 1 year insurance policy for $1,200
the journal entry to record this transaction would be:
Dr Prepaid insurance 1,200
Cr Cash 1,200
On June 30, you are preparing the financial statements for the first 6 months of operations. Since 6 months have already passed since you purchased insurance, then you have to accrue 6 months worth of insurance expense:
June 30, adjustment entry
Dr Insurance expense 600
Cr Prepaid insurance 600
3. What is the effect on (a) net income (b) assets (c) liabilities (d) stockholders' equity of not recording a required adjusting entry for prepayments? For each item, indicate clearly whether the effect will be an Increase, a Decrease, or No Effect.
E.g. prepaid insurance is an asset account, and if you do not adjust it in order to determine insurance costs, then your net income will be overstated. Your balance sheet will also be overstated, since assets and retained earnings will be higher than they should be.
(a) net income ⇒ increase
(b) assets ⇒ increase
(c) liabilities ⇒ no effect
(d) stockholders' equity ⇒ increase
4. Describe the appropriate adjusting entry for (a) accrued expenses (c) accrued revenues.
Since I already used a prepaid account as an example, I will now us a deferred revenue account. Suppose that you are the insurance company, and you sell a 1 year policy on January 2.
January 2, sales revenue
Dr Cash 1,200
Cr Deferred revenue 1,200
Deferred revenues are liabilities, since you collected money in exchange for providing future services.
Again on June 30, you are preparing the financial records for the first 6 months. you notice that 6 months have already passed since you sold the policy, so you accrued 6 months worth of revenue.
June 30, adjustment entry
Dr Deferred revenue 600
Cr Revenue 600
5. What is the effect on (a) net income (b) assets (c) liabilities (d) stockholders' equity of not recording a required adjusting entry for accruals? For each item, clearly indicate whether the effect will be an Increase, a Decrease, or No Effect.
(a) net income ⇒ decrease
(b) assets ⇒ no effect
(c) liabilities ⇒ increase
(d) stockholders' equity ⇒ decrease