The complete question is:
A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts:
Accounts receivable $349,000 debit
Allowance for uncollectible accounts 660 debit
Net Sales 794,000 credit
All sales are made on credit. Based on past experience, the company estimates that 0.6% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?
Answer:
A debit of $4,764 to Bad Debt Expense
Explanation:
When a company uses the percentage of sales approach to determine its bad debt expense, it uses an estimated percentage of net sales made to calculate it's debt expense.
In this case there was a net sales of $794,000.
Based on experience about 0.6% of sales are usually uncollectible
Estimated debt expense= Percentage loss * Net sales
Estimated debt expense= 0.006 * 794,000
Estimated debt expense= $4,764
The adjusting entry at year end will involve a debit of $4,764 to Bad Debt Expense
1. Assuming that crowding out is not an issue, if Congress increases business taxes at the same time that the Federal Reserve conducts an open market sale, output and price level are likely to change in which of the following ways?
Output / Price Level
A. Increase / Decrease.
B. Decrease / Increase
C. Indeterminate / Decrease.
D. Decrease / Indeterminate.
E. Decrease / Decrease.
2. The election of a new president resulted in a significant increase in business confidence regarding the economy. How will this new confidence impact the loanable funds market in the short run?
Demand for Loanable Funds / Real Interest Rate
A. Increase / Increase.
B. Increase / Decrease.
C. Increase / No Change.
D. Decrease / Decrease.
E. Decrease / Increase
3. When a bank’s excess reserves increase by $375 after $500 was deposited in the bank, the reserve requirement must be
a. 10 percent.
b. 15 percent.
c. 20 percent.
d. 25 percent.
e. 30 percent.
Answer:
1. E. Decrease/ Decrease
The higher taxes on businesses will reduce output because businesses will have less incentive to produce, and therefore, will produce less.
When the Fed conducts an open market sale, it reduces the money supply. This decreases the price level.
2. A. Increase / Increase.
The higher demand for loanable funds due to increased business confidence will also increase the value of the real interest rate.
3. d. 25 percent.
If the excess reserves are $375, then, the required reserves are $125. And $125 is the 25% of $500.
You are considering adding a new food product to your store for resale. You are certain that, in a month, minimum demand for the product will be 5 units, while maximum demand will be 8 units. (Unfortunately, the new product has a one-month shelf life and is considered to be waste at the end of the month.) You will pay $70/unit for this new product while you plan to sell the product at $100 ($30/unit profit). The estimated demand for this new product in any given month is 5 units (p=0.2), 6 units (p=0.2), 7 units (p=0.4), and 8 units (p=0.2).
Required:
1. Using EMV analysis, how many units of the new product should be purchased for resale?
Answer:
Using EMV analysis, the number of units of the new product should be purchased for resale = Purchase 7.
The maximum EMV of profit you can make is 270.
Explanation:
We can use the following method to solve the given problem
Solution:
Using EMV analysis,
EMV (Purchase 6 for resale)= 6(40)(0.1) + 6(40)(0.4) + 6(40)(0.5)=240
EMV (Purchase 7 for resale) = [6(40)-60](0.1) +7(40)(0.4) + 7 (40)(0.5) = 270
EMV (Purchase 8 for resale) = [6(40)-2(60)] (0.1) + [7 (40) - 60] (0.4) + 8(40)(0.5)= 260
Largest EMV= 270; Choose to purchase 7 units for resale.
Vaughn Service Center just purchased an automobile hoist for $34,000. The hoist has an 8-year life and an estimated salvage value of $3,400. Installation costs and freight charges were $4,200 and $800, respectively. Vaughn uses straight-line depreciation. The new hoist will be used to replace mufflers and tires on automobiles. Vaughn estimates that the new hoist will enable his mechanics to replace 5 extra mufflers per week. Each muffler sells for $77 installed. The cost of a muffler is $38, and the labor cost to install a muffler is $14. (a) Compute the cash payback period for the new hoist. Cash payback period years (b) Compute the annual rate of return for the new hoist. (Round answer to 2 decimal places, e.g. 10.52%.) Annual rate of return %
Answer:
a. Cash payback period years = 6 years
b. Annual rate of return = 9.67%
Explanation:
(a) Compute the cash payback period for the new hoist. Cash payback period years
Total cost of automobile hoist = Purchase cost + Installation costs + freight charges = $34,000 + $4,200 + $800 = $39,000
Weekly profit or cash inflow = (Muffler selling price per unit - Muffler cost per unit - Muffler labor cost per unit) * Number of extra muffler per week = ($77 - $38 - $14) * 5 = $125
Annual cash inflow = $125 * 52 weeks = $6,500
Cash payback period years = Total cost of automobile hoist / Annual cash inflow = $39,000 / $6,500 = 6 years
(b) Compute the annual rate of return for the new hoist
Annual depreciation expenses = (Total cost of automobile hoist - Estimated salvage value) / Useful years = ($39,000 - $3,400) / 8 = $4,450
Expected annual income = Annual cash inflow - Annual depreciation expenses = $6,500 - $4,450 = $2,050
Average investment = (Total cost of automobile hoist + Salvage value) / 2 = ($39,000 + $3,400) / 2 = $21,200
Annual rate of return = Expected annual income / Average investment = $2,050 / $21,200 = 0.0967, or 9.67%
Tamera and Rupert each applied for the same credit card through the same company. Tamera has a positive credit history. Rupert has a negative credit history.
Which compares their credit limits and likely interest rates?
Answer:
Tamera's credit limit is most likely higher than Rupert's, and her interest rate is most likely lower
Explanation:
Credit limit can be defined as the highest or maximum amount of credit that either a financial institution or other lender will tend to extend to a debtor due to a particular line of credit or allow a consumer to spend using a credit card in which the limits are determined by banks, alternative lenders, and credit card companies and are often based on several pieces of information which are related to the borrower.
INTEREST RATE can be defined as the amount that are been charged and said to be expressed as a percentage of the principal, by a lender to a borrower for the use of an assets.
Therefore Tamera's credit limit is most likely higher than Rupert's, and her interest rate is most likely lower because they both
applied for the same credit card through the same company in which Tamera has a positive credit history while Rupert has a negative credit history.
Answer:
The Answer is A in Edge
Explanation:
quiz
Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $3,600,000 par value, mature in four years, and pay 7% interest semiannually on June 30 and December 31.
Required:
a. Record the entry for the issuance of bonds for cash on January 1.
b. Record the entry for the first semiannual interest payment and the second semiannual interest payment.
c. Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).
With practical illustration, discuss how managers can leverage on organizational behaviour components to maximize business success.
Answer:
Within every organisation that is made up of humans, people are usually placed in groups and units. Because these units collectively make up the organisation, it is important to understand how people behave when they are placed in them. The study of the above is referred to as Organisational Behaviour.
When discussing Organisational Behavior, one has to look at the following:
1. People: Every organisation needs the right people to survive. It needs strong leadership and competent people who are culture fit with the ability to key into the vision, mission and objectives of the organisation and run with it with minimal supervision.
Practically speaking, let's assume Tendon LLC is a start-up, the culture of the organisation will most likely reflect the values, habits and tendencies of the CEO. If the CEO values partnerships, integrity, quality, he'd lookout for those qualities in the heads of departments who he'd hire to manage units within the organisation. Those, in turn, will do the same. The extent to which such values are implemented will determine the success of the organisation, to a large extent.
Leadership: Companies that can develop leaders the fastest will eventually win in the market place. For the sake of this explanation, let's say Leadership is the ability to influence others towards the attainment of organisational goals which are ethical and profitable and to make them love doing it.
Strong and quality leadership prevents high attrition rates and ensure cohesion within teams. If Tendon LLC, for instance, enters the market with a stronger team that Reflex LLC who has been in the business for 15 years, the probability that Tendon will kick Reflex out of the market is high. One of the attributes of leaders are they groom other leaders quickly, they share information rather than hoard them, as they share what they know, they learn more and have more to share thus there is a free and increasing flow of knowledge.
Other attributes of good leadership are accountability and ownership mentality. Leaders don't own the business but they show up every day like they own it and put in the work like they would if they own it. Contrast the above with Reflex who has staff that only show up to work because they have to and do only the bit they are required to.
2. Structure: This simply refers to the various formal relationships that have been created within the organisation for the effective working of the same. For example, there is the Accounting Unit, Human Resources Unit, Marketing Unit, Customer Care Unit, Board of Directors, Executive Management etc.
The relationship between each of these units/ roles servers to clarify reporting structures thus removing any ambiguity with the contractual, political and power relationships between the organisation.
3. Technology: Technology in some industries has replaced a lot of jobs. The purpose of technology is to make life and work simpler, easier. However, in certain industries, for instance, robots have taken over the jobs of millions of people. This simply means that the future of organisations cannot exist without technology. Looking at it from the entrepreneur’s perspective, it is cheaper in the long run to have robots. Robots don't take sick and maternity leaves, come late to work or feel bad. They simply get the job done. This means more profit in the long run.
4. Social System:
Where ever there is a group of people, organised towards a common goal, a social system is most likely to emerge. The values, attributes, personality and thinking of the leaders in any organisation will always influence its social system/ culture. Just like it is important to form healthy habits as an individual, an organisation must form social systems that are healthy and critical to the attainment of its organisational objectives.
Automattic Inc --an American company-- for instance, has successfully codified its social system such that as employees are coming on board, this is communicated to them and they sign off on it. Thus, it becomes like a social contract which will guide their behavior during their stay there.
5. Environment
Every organisation must take into cognisance its internal and external environments. If the external environment is conducive for business, then there is one less factor to worry about. If however, just like in recent times, workers cannot come physically to work due to a pandemic, the behaviour of the organisation is altered. If they do not quickly adjust their operations to accommodate this new behaviour, it will translate to the loss of man-hours, loss of value to customers, loss of customers and ultimately an erosion of the bottom line of the business. So is the internal environment. The internal environment must be conducive for employees to work. The environment must be such that encourages and elicits creativity, problem-solving, teamwork and cohesion.
Cheers!
Financial instruments are assets that have a monetary value or record a monetary transaction. To coordinate the exchange of capital between borrowers and lenders, financial instruments trade in the financial markets. These financial instruments can be categorized on the basis of their issuers, maturity, risk, and other factors. Identify the financial instruments based on the following descriptions.
a. Backed by the US government, these financial instruments are fixed-rate debt securities with a maturity of more than one year. They are considered default free but are subject to interest rate risk.
b. Issued by corporations, these unsecured debt instruments are used to fund corporate short-term financing requirements. If issued by a financially strong company, they have less risk.
c. These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated.
d. These financial instruments are contractual agreements that give one party a long-term agreement to use an asset by providing regular payments.
Which of the following instruments are traded in the capital markets? Check all that apply.
a. Common stocks
b. Corporate bonds
c. Preferred stocks
d. Certificates of deposit
e. Long-term bank loans
Answer:
(1)a. U.S Treasury bills.
b. Commercial paper.
c. Money market mutual funds.
d. Leases.
(2)a. Common stocks.
b. Corporate bonds.
d. Certificates of deposit
Explanation:
a. U.S Treasury bills: Backed by the US government, these financial instruments are fixed-rate debt securities with a maturity of more than one year. They are considered default free but are subject to interest rate risk.
b. Commercial paper: Issued by corporations, these unsecured debt instruments are used to fund corporate short-term financing requirements. If issued by a financially strong company, they have less risk.
c. Money Market Mutual Funds: These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated.
d. Leases: These financial instruments are contractual agreements that give one party a long-term agreement to use an asset by providing regular payments.
Capital market instruments are the trade in both stocks and bonds, they're long-term assets.
The following instruments are traded in the capital markets;
• Common stocks.
• Corporate bonds.
• Certificates of deposit.
Crazy Mountain Outfitters Co., an outfitter store for fishing treks, prepared the following unadjusted trial balance at the end of its first year of operations:
Crazy Mountain Outfitters Co.
Unadjusted Trial Balance
April 30, 2019
Debit Balances Credit Balances
Cash 11,400
Accounts Receivable 72,600
Supplies 7,200
Equipment 112,000
Accounts Payable 12,200
Unearned Fees 19,200
John Bridger, Capital 137,800
John Bridger, Drawing 10,000
Fees Earned 305,800
Wages Expense 157,800
Rent Expense 55,000
Utilities Expense 42,000
Miscellaneous Expense 7,000
475,000 475,000
For preparing the adjusting entries, the following data were assembled:
a. Supplies on hand on April 30 were $1,380.
b. Fees earned but unbilled on April 30 were $3,900.
c. Depreciation of equipment was estimated to be $3,000 for the year.
d. Unpaid wages accrued on April 30 were $2,475.
The balance in unearned fees represented the April 1 receipt in advance for services to be provided. Only $14,140 of the services was provided between April 1 and April 30.
Required:
1. Journalize the adjusting entries necessary on April 30. 2019.
2. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters before the adjusting entries.
3. Determine the revenues, expense, and net income of Crazy Mountain Outfitters after the adjusting entries.
4. Determine the effect of the adjusting entries on Retained Earnings.
Answer:
1. Journalize the adjusting entries necessary on April 30. 2019.
Dr Supplies expense 5,820
Cr Supplies 5,820
Dr Accounts receivable 3,900
Cr Earned fees 3,900
Dr Depreciation expense 3,000
Cr Accumulated depreciation 3,000
Dr Wages expense 2,475
Cr Wages payable 2,475
2. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters before the adjusting entries.
unadjusted income statement
Fees Earned $305,800
Wages Expense ($157,800 )
Rent Expense ($55,000 )
Utilities Expense ($42,000 )
Miscellaneous Expense ($7,000)
Net income $44,000
3. Determine the revenues, expense, and net income of Crazy Mountain Outfitters after the adjusting entries.
adjusted income statement
Fees Earned $309,700
Wages Expense ($160,275 )
Rent Expense ($55,000 )
Utilities Expense ($42,000 )
Depreciation expense ($3,000)
Miscellaneous Expense ($12,820)
Net income $36,605
4. Determine the effect of the adjusting entries on Retained Earnings.
Since net income decreases after the adjusting entries, retained earnings will also decrease. Retained earnings are increased by the amount of net income.
During 2018, its first year of operations, Pave Construction provides services on account of $142,000. By the end of 2018, cash collections on these accounts total $101,000. Pave estimates that 25% of the uncollected accounts will be bad debts.
Required:
1. Record the adjustment for uncollectible accounts on December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet Record the adjustment entry for Uncollectible Accounts Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Bad debt expense 10,250 Allowance for uncollectible accounts 10,250
2. Calculate the net realizable value of accounts receivable.
Answer:
1. Record the adjustment for uncollectible accounts on December 31, 2018.
Dr Bad debt expense 10,250
Cr Allowance for doubtful accounts 10,250
Allowance for doubtful accounts is a contra asset account that reduces the amount of accounts receivable and has a credit balance.
2. Calculate the net realizable value of accounts receivable.
net realizable value of accounts receivable = total accounts receivable - allowance for doubtful accounts = $41,000 - $10,250 = $30,750
Explanation:
total services on account $142,000
cash collected $101,000, remaining accounts receivable $41,000
25% of remaining accounts receivable will be uncollectible = $41,000 x 25% = $10,250 in bad debts
Select the correct answer from each drop-down menu.
What caused the adoption of the current Constitution of Virginia?
The current Constitution of Virginia was adopted in 1971. This constitution incorporated the federal (EDUCATION, SPEECH, VOTING) Rights Act and the (CIVIL, CONSUMER, EQUALITY) Rights Act, which were passed to promote racial equality.
Answer: Voting and Civil
Explanation: These rights were in the 1971 constitution to promote racial equality.
Portable Pet Care, Inc., a mobile veterinary clinic, is planning for the future. The company owners (two seasoned veterinarians) have brought together the vice president of marketing and the director of information systems to talk about their expansion campaign, "We come to you!" The talks are in the preliminary stages, so there is no need to concern the finance team at this time because cash flow is currently not a problem. True or false?
Answer:
Your answer is false
Explanation:
this is because if you are looking to hire a vice president you will have to budget for their salary.
How can managers leverage on components of organizational behavior to maximize business success
Answer:
Explanation: 4
Matt and Sarah are selling their home and moving to a new neighborhood. Sarah is going to start college in the fall. She did NOT attend college after high school and is now embarking on her degree. Matt was injured recently in a motorcycle accident and the couple has some very high medical expenses that are coming due. They have considered liquidating their traditional IRAs in order to cover some of these costs. Which types of expenditures can they make from funds in their IRAs without incurring a 10% penalty for early withdrawal?
Answer:
Matt and Sarah can withdraw the following two types of funds: higher education and medical expenses . While they cannot withdraw any funds for their new home that they are moving into because that will cost them the 10% penalty.
Hope that answers the question, have a great day!
The Can Division of Vaughn Manufacturing manufactures and sells tin cans externally for $1.20 per can. Its unit variable costs and unit fixed costs are $0.24 and $0.10, respectively. The Packaging Division wants to purchase 50,000 cans at $0.34 a can. Selling internally will save $0.03 a can. Assuming the Can Division is already operating at full capacity, what is the minimum transfer price it should accept? $0.86 $0.71 $1.17 $0.27
Answer:
Minimum transfer price = $1.17
Explanation:
The Can Division is operating at full capacity, hence it has no excess capacity .
This implies that it can not produce enough to meet both the internal and external buyers.
Since Division X can not accommodate the demands of the Packaging Division at a price lower than the external price, because it will result to a loss in contribution.
To maximize and optimize the group profit
Minimum transfer price = External selling price - savings in internal transfer cost
= $1.20 - 0.03 = $1.17
Minimum transfer price = $1.17
Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income. (If an amount reduces the account balance then enter with negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).)(a) Purchased $173 of supplies for cash.(b) Recorded an adjusting entry to record use of $49 of the above supplies.(c) Made sales of $1,271, all on account.(e) Received $738 from customers in payment of their accounts. Purchased equipment for cash, $2,518.(f) Recorded depreciation of building for period used, $743.
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
Retained Earnings
Particular Cash ($) Net income ($)
a. Purchased supplies for cash -173 -
b. Adjusting entry to record use of supplies - - 49
c. Sales made of all on accounts - 1,271
d. Received customer payment of their accounts 738 -
e. Purchased equipment for cash -2,518 -
f. Depreciation of building for period use - -743
In the first transaction the cash is gone so it would be deducted no impact on net income
In the second transaction there is an adjusting entry the same affect the net income in a negative manner and no impact on cash
In the third transactions sales made which increased the net income and does not have any impact on cash
In the fourth transaction Received payment which increased the cash balance and no impact on net income
In the first transaction the cash is gone so it would be deducted no impact on net income
In the fifth transaction the depreciation is charged so it would decreased the net income and no impact on cash
International Data Systems' information on revenue and costs is relevant only up to a sales volume of 106,000 units. After 106,000 units, the market becomes saturated and the price per unit falls from $16.00 to $9.80. Also, there are cost overruns at a production volume of over 106,000 units, and variable cost per unit goes up from $8.00 to $8.50. Fixed costs remain the same at $56,000.
a. Compute operating income at 106,000 units.b. Compute operating income at 206,000 units.
Answer:
Option A. $792,000
Option B. $211,800
Explanation:
At the level 106,000 Units, the price per unit and variable cost per unit will remain at $16 and $8 per unit.
Option A.
Sales (106,000 Units * $16) $1,696,000
Variable cost (106,000* $8) $848,000
Fixed costs $56000
Operating Profit $792,000
Option B.
When the production exceeds 106,000 units level, the price per unit and variable cost per unit will remain at $9.8 and $8.5 per unit.
Sales (206,000 * $9.8) $2,018,800
Variable cost (206,000 * $8.5) $1,751,000
Fixed costs $56,000
Operating Profit $211,800
The profit has been decreased substantially due to increase in Marginal cost.
Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.
Inputs Standard Quantity or Hours Standard Price or Rate
per Unit of Output
Direct materials
7.60 liters $ 7.20 per liter
Direct labor 0.60 hours 23.70 per hour
Variable manufacturing overhead 0.60 hours $ 6.10 per hour
The company has reported the following actual results for the product for September:
Actual output 9,800 units
Raw materials purchased 75,200 liters
Actual cost of raw materials purchased $ 564,500
Raw materials used in production 74,500 liters
Actual direct labor-hours 5,500 hours
Actual direct labor cost $ 135,302
Actual variable overhead cost $ 29,314
Required:
a. Compute the materials price variance for September.
b. Compute the materials quantity variance for September.
c. Compute the labor rate variance for September.
d. Compute the labor efficiency variance for September.
e. Compute the variable overhead rate variance for September.
f. Compute the variable overhead efficiency variance for September.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Direct materials 7.60 liters $ 7.20 per liter
Direct labor 0.60 hours 23.70 per hour
Variable manufacturing overhead 0.60 hours $ 6.10 per hour
Actual output 9,800 units
Raw materials purchased 75,200 liters
Actual cost of raw materials purchased $ 564,500
Raw materials used in production 74,500 liters
Actual direct labor-hours 5,500 hours
Actual direct labor cost $ 135,302
Actual variable overhead cost $ 29,314
1) To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Actual pirce= 564,500/75,200= 7.51
Direct material price variance= (7.2 - 7.51)*75,200
Direct material price variance= $23,312 unfavorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (7.6*9,800 - 74,500)*7.2
Direct material quantity variance= $144 favorable
2) To calculate the direct labor rate and efficiency variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Standard quantity= 0.6*9,800= 5,880
Direct labor time (efficiency) variance= (5,880 - 5,500)*23.7
Direct labor time (efficiency) variance= $9,006 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 135,302/5,500= 24.6
Direct labor rate variance= (23.7 - 24.6)*5,500
Direct labor rate variance= $4,950 unfavorable
3) To calculate the variable overhead rate and efficiency variance, we need to use the following formulas:
Manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Actual rate= 29,314/5,500= 5.33
Manufacturing overhead rate variance= (6.10 - 5.33)*5,500
Manufacturing overhead rate variance= $4,235 favorable
variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
variable overhead efficiency variance= (0.6*9,800 - 5,500)*6.1
variable overhead efficiency variance= $2,318 favorable
On December 1, 2020, Concord Corporation acquired new equipment in exchange for old equipment that it had acquired in 2017. The old equipment was purchased for $216000 and had a book value of $83720. On the date of the exchange, the old equipment had a fair value of $91000. In addition, Concord paid $286000 cash for the new equipment, which had a list price of $386000. The exchange lacked commercial substance. At what amount should Concord record the new equipment for financial accounting purposes?
Answer:
$369,720
Explanation:
The computation of the amount record the new equipment for financial accounting purpose is shown below:
Book value of new equipment = book value of old equipment + cash given
where,
Book value of old equipment is $83,720
And, the cash paid for new equipment is $286,000
SO, the book value of new equipment is
= $83,720 + $286,000
= $369,720
The information listed below refers to the employees of Lemonica Company for the year ended December 31, 2016. The wages are separated into the quarters in which they were paid to the individual employees.NameSocial Security #1st Qtr.2nd Qtr.3rd Qtr.4th Qtr.TotalRobert G. Cramer . . . . . . . . . . . .000-00-0001$ 5,800$ 5,000$ 5,000$ 5,200$ 21,000Daniel M. English (Foreman) . . .000-00-000313,00013,40013,40013,40053,200Ruth A. Small . . . . . . . . . . . . . . .000-00-19982,0002,3002,3002,4009,000Harry B. Klaus. . . . . . . . . . . . . . .000-00-741311,60011,70011,70011,70046,700Kenneth N. George (Manager) . .000-00-652313,60014,00014,50015,00057,100Mavis R. Jones . . . . . . . . . . . . . .000-00-67891,6001,7001,700-0-5,000Marshall T. McCoy. . . . . . . . . . .000-00-333411,40011,400-0--0-22,800Bertram A. Gompers (President) .000-00-101424,50025,00025,50026,300101,300Arthur S. Rooks. . . . . . . . . . . . . .000-00-7277-0-7001,7001,7004,100Mary R. Bastian . . . . . . . . . . . . .000-00-81118,0008,2008,2008,20032,600Klaus C. Werner . . . . . . . . . . . . .000-00-26232,3002,5002,5002,5009,800Kathy T. Tyler . . . . . . . . . . . . . . .000-00-3534-0--0-11,30011,70023,000Totals . . . . . . . . . . . . . . . . . . . .$93,800$95,900$97,800$98,100$385,600For 2016, State D’s contribution rate for Lemonica Company, based on the experience-rating system of the state, was 2.8% of the first $7,000 of each employee’s earnings. The state tax returns are due one month after the end of each calendar quarter. During 2016, the company paid $2,214.80 of contributions to State D’s unemployment fund. Employer’s phone number: (613) 555-0029. Employer’s State D reporting number: 00596.Using the forms supplied on pages 5-42 to 5-44, complete the following for 2016:a. Date and amount of the FUTA tax payment for the fourth quarter of 2016 (State D is not a credit reduction state). Tax Payment: Date _____________ Amount $____________b. Employer’s Report for Unemployment Compensation, State D—4th quarter only. Item 1 is the number of employees employed in the pay period that includes the 12th of each month in the quarter. For Lemonica Company, the number of employees is eight in October, seven in November, and eight in December. All employees earned 13 credit weeks during the last quarter except for Rooks (8) and Tyler (9).c. Employer’s Annual Federal Unemployment (FUTA) Tax Return—Form 940Indicate on each form the date that the form should be submitted and the amount of money that must be paid. The president of the company prepares and signs all tax forms.
Answer:
a. Due Date – January 31, 2017
b. FUTA tax liability for fourth quarter $2,905
Explanation:
If your FUTA tax for the fourth quarter (plus any deposited amounts from earlier quarters) is more than $500, deposit the entire amount by January 31, 2017. If it is $500 or less, you can either deposit the amount or pay it with your Form 940 by January 31, 2017.
Name
Social Security
4th Qtr.
Taxable Wages ($7,000 or lower)
FUTA tax at 5.4%
Robert G. Cramer
000-00-0001
$ 5,200.00
$ 5,200.00
$ 280.80
Daniel M. English (Foreman)
000-00-0003
$ 13,400.00
$ 7,000.00
$ 378.00
A. Small
000-00-1998
$ 2,400.00
$ 2,400.00
$ 129.60
Harry B. Klaus
000-00-7413
$ 11,700.00
$ 7,000.00
$ 378.00
Kenneth N. George (Manager)
000-00-6523
$ 15,000.00
$ 7,000.00
$ 378.00
Mavis R. Jones
000-00-6789
-0-
$ -
$ -
Marshall T. McCoy
000-00-3334
-0-
$ -
$ -
Bertram A. Gompers (President)
000-00-1014
$ 26,300.00
$ 7,000.00
$ 378.00
Arthur S. Rooks
000-00-7277
$ 1,700.00
$ 1,700.00
$ 91.80
R. Bastian
000-00-8111
$ 8,200.00
$ 7,000.00
$ 378.00
Klaus C. Werner
000-00-2623
$ 2,500.00
$ 2,500.00
$ 135.00
Kathy T. Tyler
000-00-3534
$ 11,700.00
$ 7,000.00
$ 378.00
Total
$ 98,100.00
$ 2,905.20
Since the state experience the lower experience rating system, hence the FUTA tax rate is minimum 5.4%.
A company is considering the purchase of new equipment for $96,000. The projected annual net cash flows are $37,700. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 8% return on investment. The present value of an annuity of $1 for various periods follows: Period Present value of an annuity of $1 at 8% 1 0.9259 2 1.7833 3 2.5771 What is the net present value of this machine assuming all cash flows occur at year-end
Answer:
$1,157
Explanation:
As per the given question the solution of net present value is provided below:-
To reach out the net present value first we will find the present value of annuity
Present value of annuity = Annuity × PVIFA factor of 3 years at 8%
= $37,700 × 2.5771
= $97,156.67
Net present value = Present value of inflows - Present value of outflows
= $97,156.67 - $96,000
= $1,157
So, we have calculated the net present value by using the above formula.
WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows:
Product X Product Y Product Z
Units produced 1,500 2,000 3,000
Per unit sales value at split-off $ 19.00 $ 21.00 $ 24.00
Added processing costs per unit $ 7.00 $ 7.50 $ 7.00
Per unit sales value if processed further $ 29.00 $ 29.00 $ 30.00
The cost of the joint raw material input is $149,000. Which of the products should be processed beyond the split-off point?
Product X Product Y Product Z
A) Yes Yes No
B) No Yes No
C) Yes No Yes
D) No Yes Yes
1. Choice D
2. Choice A
3. Choice B
4. Choice C
Answer:
yes yes NO ( A )
Explanation:
products X,Y,Z
units produced : X = 1500 , Y = 2000, Z = 3000
per unit sales value at split-off : X = $19, Y = $21, Z = $24
Added processing costs per unit : X = $7, Y = $7.50 , Z = $7
per unit sales value if processed further : X = $29, Y = $29, Z = $30
COST OF JOINT MATERIAL INPUT = $149000
To check for products to be processed further we apply
(unit sales value if processed further - per unit sales value at split-off ) - ( added processing cost )
for product X = $29 - $19 - $7 = $3
for product Y = $29 - $21 - $7.5 = $0.50
for product Z = $30 - $24 - $7 = - $1 ( negative value )
products to be processed beyond the split of point would be : X Y
because Z has a negative contribution margin
Use the following information to create an income statement and balance sheet.
Accounts Payable 250,000
Accounts Receivable 230,000
Cash 370,000
Common Stock 100,000
Costs 430,000
Depreciation Expense 40,000
Dividends 73,800
Goodwill 170,000
Interest Expense 60,000
Inventory 80,000
Land 499,770
Line of credit (used) 150,000
Long Term Loan 400,000
Paid in Surplus 225,000
Preferred Stock 75,000
The following information on selected cash transactions for 2021 has been provided by Coronado Industries: Proceeds from sale of land $319000 Proceeds from long-term borrowings 601000 Purchases of plant assets 219000 Purchases of inventories 1028000 Proceeds from sale of Coronado common stock 370000 What is the cash provided (used) by investing activities for the year ended December 31, 2021, as a result of the above information
Answer:
$100,000
Explanation:
Coronado Industries
CASH FLOW STATEMENT
For the year ended December 31, 2021
Cash Flow from Investing Activities:
Proceeds from sale of land $319,000
Less: Purchases of plant assets ($219,000)
Net Cash used in Investing Activity $100,000
Answer:
$100,000
Explanation:
cash flow from investing activities:
cash proceeds from sale of land $319,000
- purchase of plant assets ($219,000)
net cash flow from investing activities = $100,000
Cash flows from investing activities include only those purchases and sales of assets that are used by the company to generate revenue, e.g. plant and equipment, land, investment in stocks in other companies, etc.
What's the total resistance of a circuit that contains three 30 Ω resistors connected in series
Answer:
The total resistance is 90 Ω
Explanation:
When the circuit are connected in the series then we can determined the total resistance of the circuit by the formula that are mention below .
[tex]R=R1+ R2 +R3[/tex] -------Equation 1
Here [tex]R1=R2=R3=30 \ ohm[/tex]
Now putting the value of R1, R2 and R3 in the Equation 1
So
[tex]R=30 + 30 + 30\\[/tex]
Therefore the total resistance of the circuit =90 Ω
Because the liquidity-preference framework focuses on the:
a.short run, it assumes the price level adjusts to bring the money market to equilibrium.
b.short run, it assumes the interest rate adjusts to bring the money market to equilibrium.
c.long run, it assumes the price level adjusts to bring the money market to equilibrium.
d.long run, it assumes the interest rate adjusts to bring the money market to equilibrium.
Answer:
B. Short run, it assumes the interest rate adjusts to bring the money market to equilibrium
Explanation:
This theory is explained to be a model that suggests that an investor should demand a higher interest rate or premium on securities with long-term maturities that carry greater risk because, all other factors being equal, investors prefer cash or other highly liquid holdings.
According to this theory, which was developed by John Maynard Keynes in support of his idea that the demand for liquidity holds speculative power, investments that are more liquid are easier to cash in for full value. Cash is commonly accepted as the most liquid asset. According to the liquidity preference theory, interest rates on short-term securities are lower because investors are not sacrificing liquidity for greater time frames than medium or longer-term securities.
Metlock Industries acquired two copyrights during 2020. One copyright related to a textbook that was developed internally at a cost of $9,300. This textbook is estimated to have a useful life of 3 years from September 1, 2020, the date it was published. The second copyright (a history research textbook) was purchased from University Press on December 1, 2020, for $40,000. This textbook has an indefinite useful life.
Required:
a) How should these two copyrights be reported on Metlock’s balance sheet as of December 31, 2020?
Answer:
The first book will not be reported on the balance sheet, but the second copyright will be reported at the full purcahse price.
Explanation:
1. A textbook that was developed internally: The $9,300 cost incurred must be expensed. As a result of this. the copyright will only be reported on the income statement but not on the balance sheet.
2. The second copyright (a history research textbook): The $40,000 purchase cost of this will be reported on the balnace sheet in full. But there will not be amortization since it has an indefinite useful life.
On January 1, 2018, Ogleby Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for Ogleby to make annual payments of $180,000 at the beginning of each year for five years with title passing to Ogleby at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Ogleby uses the straight-line method of depreciation for all of its fixed assets. Ogleby accordingly accounts for this lease transaction as a finance lease. The minimum lease payments were determined to have a present value of $750,578 at an effective interest rate of 10%.
With respect to this lease, for 2018 Ogleby should record
a. rent expense of $180,000.
b. interest expense of $57,058 and amortization expense of $150,116.
c. interest expense of $57,058 and amortization expense of $107,225.
d. interest expense of $90,000 and amortization expense of $181,956
Show all work including formulas
Answer:
With respect to this lease, for 2018 Ogleby should record interest expense of $57,058 and depreciation expense of $107,225. The right answer is c
Explanation:
According to the given data we have the following:
PV of lease=$750,578
Annual payment=$180,000
Rate of interesr=10%
The interest expense would be calculated as follows:
Interest expense = ( PV of lease - Annual payment ) * Rate of interest
Interest expense = ( $750,578 - $180,000 ) * 10%
Interest expense = $57,058
Therefore, With respect to this lease, for 2018 Ogleby should record interest expense of $57,058 and depreciation expense of $107,225.
Provide some examples of items that would be adjusted directly against equity, rather than being included as part of profit or loss. and explain it. ( words 650 )
Answer:
1.Common Stocks Issues and Repurchases
2.Preference Stocks Issues and Repurchases
3.Dividends Declared
Explanation:
Common Stocks Issues and Repurchases
Common Stockholders have voting rights. The movement in the Stocks must be presented separately in the Statement of Changes in Equity.
Preference Stocks Issues and Repurchases
Preference Stockholders do not have voting rights. The movement in the Stocks must be presented separately in the Statement of Changes in Equity.
Dividends Declared
Dividends Paid are not included in Profit and Loss but in Statement of Changes in Equity.
Payment of Dividends adjusts the Retained Earnings Amount in Statement of Changes in Equity.
A Company processes pine rosin into three products: turpentine, paint thinner, and spot remover. During May, the joint costs of processing were $720,000. Production and sales value information for the month is as follows: Product Units Produced Sales Value at Split-off Point Turpentine 15,000 liters $120,000 Paint thinner 15,000 liters $100,000 Spot remover 7,500 liters $50,000 Determine the amount of joint cost allocated to Paint thinner if the physical-measure method is used.
Answer:
$288,000
Explanation:
As per the given question the solution of the amount of joint cost allocated to Paint thinner is provided below:-
Here, we need to find out the amount of joint cost allocated to Paint thinner so we will find out first total units produced of each product and joint cost allocated to paint thinner which is follow below:-
Total units produced of each product = Turpentine + Paint thinner + Spot remover
= 15,000 liters + 15,000 liters + 7,500 liters
= 37,500
Joint cost allocated to paint thinner = Paint thinner of total units produced ÷ Total units produced of each product
= 15,000 ÷ 37,500
= 40%
Joint cost allocated to Paint thinner = Joint cost of processing × Joint cost allocated to paint thinner
= $720,000 × 40%
= $288,000
To reach the amount of joint cost allocated to Paint thinner we simply multiply the joint cost of processing with joint cost allocated to paint thinner.
Chang Industries has 2,000 defective units of product that already cost $14 each to produce. A salvage company will purchase the defective units as is for $5 each. Chang's production manager reports that the defects can be corrected for $6 per unit, enabling them to be sold at their regular market price of $21. The $14 per unit is a: Multiple Choice Sunk cost. Out-of-pocket cost. Period cost. Incremental cost. Opportunity cost.
Answer:
The correct answer to the following question will be Option A "Sunk cost".
Explanation:
A sunk cost includes money also now invested and therefore not recoverable. In industry, the aphorism that one should "probably waste money to make profits" is expressed in the sunken cost trend.It differs from the potential risks that a company will face, including such inventory purchasing costs as well as drug price choices. 2000 Default units including its drug were already manufactured at $14, this expense was already accrued and seems to be negligibleThe other choices corresponding to the specified situation are not. So the proper answer is Alternative A.