Answer:
a.
Raw Materials $120,000 (debit)
Accounts Payable $120,000 (credit)
b.
Work In Process : Direct Materials $124,200 (debit)
Work In Process : Indirect Materials $1,500 (debit)
Raw Materials $125,700 (credit)
c.
Work In Process : Direct Labor $174,000 (debit)
Work In Process : Indirect Labor $21,400 (debit)
Salaries and Wages Payable $195,400 (credit)
d.
Factory Overheads $54,700 (debit)
Accounts Payable $54,700 (credit)
e.
Work In Process : Depreciation $29,200 (debit)
Accumulated Depreciation $29,200 (credit)
f.
Work In Process : Insurance Expense $7,000 (debit)
Prepaid Insurance $7,000 (credit)
g
Work In Process : Factory Overheads $106, 300 (debit)
Factory Overheads $106, 300 (credit)
h.
Work In Process : Department 1 $362,700 (debit)
Work In Process : Department 1 $362,700 (credit)
Explanation:
Costs accumulate in the Work In Process Account during Manufacturing Process.
Only Factory Overheads Applied are transferred to Work In Process Account during Manufacture.
During transfer from Department 1 to Department 2, De-recognize Manufacturing Cost from Department 1 Work In Process Account into Department 2 Work In Process Account
Chester's balance sheet has $105,038,000 in equity. Further, the company is expecting net income of 3,000,000 next year, and also expecting to issue $4,000,000 in new stock. If there are no dividends paid what will beChester's book value?
Answer:
The answer is $112,038,000
Explanation:
The total equity will be equity brought forward, the net income(retained earnings) and the newly issued shares.
Book value equals asset minus liability which this formula is the same as equity. So in order words book value is also the same as total equity.
Therefore, the book value is:
$105,038,000 + 3,000,000 + $4,000,000
= $112,038,000
An individual purchased a taxable corporate bond at a premium. The bond has a remaining ten year maturity period. For federal income tax purposes, amortization of the premium:________
Available Options Are:
A. Increases investment interest expense
B. Is required
C. Reduces interest income
D. Increases interest income
E. Increases the basis of the bond
Answer:
Option C. Reduces Interest Income
Explanation:
The reason is that when we amortize the premium the carrying value of the bond decreases which decreases the principal amount and thus the interest calculated will also be decreased. The decrease in principal amount is because of the difference between the coupon rate of the bond and the firm's required rate of return.
Hence the amortization of the premium reduces the interest income.
On decemeber 1, 2018 shamrock company receieved $3600 from destiny, Inc. for rent of an office owned by shamrock company. The payment covers the period from December 1, 2018 through February 28, 2019. Shamrock Company recorded this as Deferred Rent Revenue when it was received on December 1. The adjusting entry on December 31 would include a:_________
a. debit to Rent Revenue of $4,800.
b. credit to Rent Revenue of $3,200.
c. debit to Deferred Rent Revenue of $4,800.
d. credit to Deferred Rent Revenue of $3,200.
Answer:
Credit to Rent revenue of $1,200.
Explanation:
Date Account Titles and explanation Debit Credit
Dec 31 Deferred Rent Revenue $1,200
Rent Revenue $1,200
Thus, answer is Credit to Rent revenue of $1,200.
Workings
December - February = 3 month
Deferred Rent Revenue = $3,600 * 1 month / 3 month = $1,200
Blazer Sports Store is preparing to pay its quarterly dividend of $7.75 a share this quarter. The stock closed at $105.64 a share today. What will the ex-dividend stock price be if the relevant tax rate is 19 percent and all else is held constant
Answer:
$99.3625
Explanation:
The computation of ex-dividend stock price is shown below:-
Ex-dividend stock price = Stock closing price - Stock dividend × (1 - tax rate)
= $105.64 - $7.75 × (1 - 19%)
= $105.64 - $7.75 × 0.81
= $105.64 - 6.2775
= $99.3625
Therefore for computing the ex-dividend stock price we simply applied the above formula.
Roberto Corporation was organized on January 1, 2021. The firm was authorized to issue 88,000 shares of $5 par common stock. During 2021, Roberto had the following transactions relating to shareholders' equity: Issued 10,800 shares of common stock at $5.70 per share. Issued 19,300 shares of common stock at $9.70 per share. Reported a net income of $98,000. Paid dividends of $41,000. Purchased 3,500 shares of treasury stock at $11.70 (part of the 19,300 shares issued at $9.70). What is total shareholders' equity at the end of 2021
Answer:Shareholder's equity =$264,820
Explanation:
Purcahse of treasury stock =Shares purchased×price purchased
=3,500 shares×$11.70 per share
=$40,950
Shareholder's equity =Equity capital+Net income− Dividend−Treasury stock
Given
Net income = $98,000
Dividends =$41,000
but Equity capital =Shares issued× the Issued price + Shares issued× the Issued price +....
= 10,800 x $5.70 + 19,300 x 9.70=61,560 + 187,210=$248,770
Shareholder's equity = $248,770 + $98,000 - $41,000 -$40,950= $264,820.
One of the big weaknesses of organization structures that do not have cross-business collaboration is A. making it hard to effectively empower and motivate employees. B. making it difficult to have closely related activities report to a single executive. C. that pieces of strategically relevant activities and capabilities often end up scattered across many departments thus impeding cross-business strategic fits. D. that it impedes the use of outsourcing to parts of the world with lower wages. E. that it makes the firm vulnerable to shareholder lawsuits for not maximizing value creation.
Answer:
Option C, that pieces of strategically relevant activities and capabilities often end up scattered across many departments thus impeding cross-business strategic fits, is the right answer.
Explanation:
Option C is correct because the cross-business collaboration exhibits the process in which the expertise of different departments comes together and then work for the common goal. Generally, the capabilities and relevant activities are scattered in the different departments of the company. Therefore the cross-business team up those scattered abilities. In most of the cases, the team formed includes the people who are efficient and expert in their field. Therefore, option C is right.
Describe how to use project documents to help a team progress through the stages of development.
Answer with Explanation:
The objectives of the project at each stage are defined and well documented. Project documents are very useful in understanding of the issues with the project and how to resolve and when to act. All this is possible if we use the project documents in effective manner which will help in running of project very smoothly.
Furthermore, the project documents also helps the project team to understand what they are expected to perform and what are their next responsibility associated with project. The documentation also helps them to understand what are the set objectives of the project which both as an individual and as a team they have to accomplish.
The management of Green Energy Manufacturing is analyzing variable overhead variances for the fiscal period just ended. The flexible budget called for $176,000 in variable overhead but actual variable overhead was $100,000. In computing the overhead variances, Green’s management discovered that it had used 40,000 pounds of direct material, rather than the budgeted amount of 44,000 pounds. (Pounds of direct material is the single overhead driver of variable overhead). The standard variable overhead rate per pound of direct material is $2.00.
What is Green's variable overhead efficiency variance?
A. $ 8,000 (U)
B. $16,000 (F)
C. $24,000 (U)
D. $ 8,000 (F)
Creative Sound Systems sold investments, land, and its own common stock for $31 million, $15.1 million, and $40.2 million, respectively. Creative Sound Systems also purchased treasury stock, equipment, and a patent for $21.1 million, $25.1 million, and $12.1 million, respectively. What amount should the company report as net cash flows from investing activities
Answer:
Net cash provided from Investing activities is 8,900,000
Explanation:
Statement of cash flows from investing activities
Amount$
Sale of investment 31,000,000
Sale of land 15,100,000
Purchase of equipment -25,100,000
Purchase of patents -12,100,000
Net cash provided from 8,900,000
Investing activities
Suppose you bought a bond with an annual coupon rate of 4.6 percent one year ago for $930. The bond sells for $955 today.
a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?
b. What was your total nominal rate of return on this investment over the past year?
Answer:
a. $71
b. 7.63%
Explanation:
a) The total dollar return is = Increase in Price + the coupon payment
Total dollar return = $955 – 930 + 46
Total dollar return = $71
b) The total percentage return of the bond is = Total dollar return / Previous Bond Price
R = [($955 – 930) + 46] / $930
R = 0.0763
R = 7.63%
The following data are available for the Northwestern Division of Dempsey, Inc. and the single product it makes. Average operating assets $3,000,000
Annual fixed costs 560,000
Unit selling price 40
Variable cost per unit 24
How many units must the division sell each year to achieve an ROI of 16%?
Answer:
65,000 units
Explanation:
Let the number of units be sold = x
Operating Income= Sales- Variable cost – Fixed Cost
Operating Income = 40x - 24x - 560,000
Operating Income = 16x - 560,000
Return on Investment = Operating Income / Net Operating Assets
16% = (16x - 560,000 )/ 3,000,000
480,000 = 16x - 560,000
16x = 480,000 + 560,000
16x = 1,040,000
x = 65,000 units
If a life insurance applicant's answers on the application indicate that he/she is in good health, when in fact the applicant has a disease that he/she is not aware of, the statement on the application is considered:
Answer: d. A representation
Explanation:
A Representation refers to a statement that a person seeking insurance makes on their insurance application that to the best of their knowledge represents the truth in the questions asked.
This is what the applicant in the question did because they did not know that they had a disease that should be disclosed. Representations can be legal grounds to void a statement by an insurance company if information provided is eventually proven wrong.
You decided to buy apples at a grocery store somewhere in the mountains. You buy 5 pounds of apples, which are sold for $1.99/lb. (One pound is the unit of force equal to 0.454 kgx9.80 m/s where g = 9.80 m/s2 is the standard value of the acceleration due to the gravity). You overpaid for the apples, since the value of the acceleration due to the gravity at this mountain location is only gmountain 9.79 mis.
Determine how much you overpaid for your 5 pounds of apples.
Answer:
Amount overpaid = $0.0104 (Approx)
Explanation:
Given:
Quantity of apple = 5 lb
Amount paid = $ 1.99 / lb
Gravity on mountain = 9.79 m/s²
Find:
Amount overpaid
Computation:
Actual mass of apple = 5 (9.79/9.80)
Actual mass of apple = 4.9948
Actual amount = 4.9948 × 1.99
Actual amount = $9.9396
Amount overpaid = Amount paid -Actual amount
Amount overpaid = [5 x 1.99] - $9.9396
Amount overpaid = $0.0104 (Approx)
Under monopolistic competition, a firm's ability to influence the price of the product it sells arises because:
Answer:
The answer is because of product differentiation
Explanation:
Under monopolistic competition, the sellers' product are differentiated from one another and this gives the sellers the power to influence prices.
Like perfect competition, the market has many buyers and sellers, free entry and exit but the major difference between the two is the product differentiation.
For example in the mobile phone market, we have Samsung, Infinix, Iphones, Oppo etc. They are all mobile phones but they are different from from one another in the aspect of specifications. iPhones usually charge highest. There is customers' loyalty in this market.
The following data relates to Spurrier Company's estimated amounts for next year. Estimated: Department 1 Department 2 Manufacturing overhead costs $1,360,000 $3,560,000 Direct labor hours 553,000 DLH 803,000 DLH Machine hours 103,000 MH 37,000 MH What is the company's plantwide overhead rate if direct labor hours are the allocation base? (Round to two decimal places)
Answer:
$3,628 per direct labour hour.
Explanation:
Total manufacturing overhead cost and total direct labour hours
Particulars Dep 1 Dep 2 Total
Manufacturing overhead cost 1,360,000 3,560,000 4,920,000
Direct labour hours 553,000 803,000 1,356,000
Plant-wide overhead rate = Total manufacturing overhead / Total direct labour rate
Plant-wide overhead rate = $4,920,000 / 1,356,000
Plant-wide overhead rate = $3,628
Therefore, the Plant-wide overhead rate is $3,628 per direct labour hour.
g Cole Co. began constructing a building for its own use in January 2021. During 2021, Cole incurred interest of $50,000 on specific construction debt, and $20,000 on other borrowings. Interest computed on the weighted-average amount of accumulated expenditures for the building during 2021 was $40,000. What amount of interest should Cole capitalize
Answer: $40,000
Explanation:
Interest that is accrued as a result of a building should be capitialized to the cost of that building. The amount of interest payment that is due to the building will simply be the interest payment that the company would have avoided incurring had it not undertaken the construction of the building.
This amount is represented by the interest computed on the weighted-average amount of accumulated expenditures which in this case is $40,000 so that is the amount that should be capitalized by Cole Co.
An agent has successfully negotiated a sales contract. Because he is the listing agent, multiple listing service (MLS) rules require him to A) notify the MLS of the status change. B) give a copy of the signed contract to the MLS. C) pay additional MLS fees because of the negotiated contract. D) give a copy of the signed agreement to the broker.
Answer: A) notify the MLS of the status change
Explanation:
The Multiple Listing Service (MLS) is a platform that serves to connect Real Estate professionals and the properties they are trying to sell that way they can each market the other's properties and increase the reach of the listing.
As the listing agent of a property, the agent was the one who posted the listing on the MLS and so when the property is sold, the agent should contact the MLS and let it know that the property has been sold so that they may take appropriate action.
bank pays interest quarterly with an EAR of 9%. What is the periodic interest rate applicable per quarter
Answer:
2.18%
Explanation:
Effective interest rate = (1+i/m)^n - 1
i is stated as interest rate
m is the compounding frequency
Here, the compounding is quarterly and the effective interest rate is 8%
Since one year is equal to 4 quarter, the value of m is equals to 4
Effective interest rate = (1 + i/4)^4 - 1
9% = (1 + i/4)^4 - 1
0.09 + 1 = (1 + i/4)^4
(1.09)^1/4 = 1 + i/4
1 + i/4 = 1.02178
i/4 = 1.02178 - 1
i/4 = 0.2178
i/4 = 2.18%
May Bakery, Inc. reported a prior-period adjustment in 2016.An accounting error caused net income of prior years to be overstated by $6,000.Retained Earnings at December 31, 2015, as previously reported, was $39,000.Net income for 2016 was $72,000, and dividends declared were $23,000.Prepare the company's statement of retained earnings for the year ended December 31, 2016.
Answer:
Particulars Amount
Retained earnings January 1,2016 $39,000
as originally posted
Prior period adjustment $6,000
Retained earnings as adjusted $33,000
Net Income for the year $72,000
$105,000
Dividends declared $23,000
Retained earnings December 31, 2016 $82,000
< Back to Assignment Attempts: Average: / 1 3. Rules versus discretion This question addresses the issue of whether monetary policy should be made by discretionary policy or be implemented according to a set of rules. Which of the following statements reflect arguments in favor of policy by rule rather than discretion? Check all that apply. The time inconsistency of policy problem can be eliminated by having the central bank commit to a particular policy rule. Monetary rules may lead to a lower sacrifice ratio because the public is more confident that the Federal Reserve will keep inflation low. It is impossible for a policy rule to consider all the possible scenarios and specify, in advance, the right policy response. It is better to appoint qualified individuals who will respond to any situation as best they can. Monetary rules reduce the flexibility of the Federal Reserve. Grade It Now Save & Continue Continue without saving
Answer:
Monetary rules may lead to a lower sacrifice ratio because the public is more confident that the Federal Reserve will keep inflation low.The time inconsistency of policy problem can be eliminated by having the central bank commit to a particular policy rule.Explanation:
Monetary Policy by a central bank is what decides how much money will be in an Economy and so can have influence on interest and inflation rates.
There have been some arguments as to whether Central banks like the Fed should use a Rule based approach where monetary policy is in line with set rules vs Discretionary where the Fed can implement monetary policy based on their perception of Economic events.
Some of the arguments presented by proponents for the Rule based approach are;
If certain rules in place to govern monetary policy in terms of inflation keep the inflation rate stable and low, the sacrifice ratio will be lower. The sacrifice ratio refers to the costs of a fluctuating inflation rate on the economy with producers producing less when inflation falls as they wait for it to rise again. If the rate is kept low, the producers would have to produce regardless. If the Fed were to commit to certain rules, policy will be implemented on a consistent basis such as the increase in money supply every period. This would remove the time inconsistency of policy problem.Explain the differences among dealer-broker networks, alternative trading systems, and registered stock exchanges.
Answer:
A dealer-broker networks means that the broker and dealer is a counterpart in all trades,the broker dealer buys stocks from a seller and sells them to a buyer.
Some trading avenues in which broker and dealer is no longer a counterpart in all trades instead buyers can trade directly with sellers is called an Alternative Trading Systems. Broker dealer must register an Alternative Trading Systems with Securities and Exchange Commission (SEC) which imposes more regulatory requirements than the standard broker dealer network. It is costly for broker-dealer to provide the infrastructure for an Alternative Trading Systems, therefore they charged subscription fees.
Registered stock exchanges are registered with Securities and Exchange Commission (SEC), they are more regulated than Alternative Trading Systems and broker dealer network and its major objectives is to promotes orderly trading and fair dissemination of information including price and number of shares and pre-trade information.
A method of allocating merchandise cost that assumes the first merchandise bought was the first merchandise sold is called the
Answer:
First - in - First - Out (FIFO) method
Explanation:
The First - in - First - Out (FIFO) method, assumes that the first goods received by the business will be the first ones to be delivered to the final customer.
It assumes that goods have been used in the order in which they are purchased.
A 12-year capital lease specifies equal minimum annual lease payments. Part of this payment represents interest and part represents a reduction in the net lease liability. The portion of the minimum lease payment applicable to interest expense should:
Answer: Less than in year 8
Explanation:
Here is the complete question:
A 12-year capital lease specifies equal minimum annual lease payments. Part of this payment represents interest and part represents a reduction in the net lease liability. The portion of the minimum lease payment in Year 10 applicable to interest expense should be:
a. Less than in Year 8
b. More than in Year 8
c. The same as in Year 12
d. Less than in Year 12
A capital lease is a type of lease whereby the leader asset are financed by the lessor while the lessee gets all other ownership rights.
Based on the scenario explained in the question, the portion of the minimum lease payment in Year 10 applicable to interest expense should be less than in Year 8.
Why are daily scrums likely to reduce the time that is normally required for new team members to become productive
Answer:
Daily scrums provide the opportunity for the team members to think, reflect on, and adjust the work done on a project. This opportunity helps new team members to learn fast because of the interaction they share with experienced team members. This means that the experience of other team members rob off on the new team members during timeboxed scrums, making them to become more productive.
Explanation:
Scrum is an agile project framework or approach that requires team members to meet regularly to solve emerging problems, reflect on their work through a process of iteration, and map out ways to accomplish tasks quickly. Tasks are also prioritize based on the value that they contribution to the project development.
On January 9, a company pays $5,910 for salaries and wages of which $2,870 was reported as Salaries and Wages Payable on December 31. Give the entry to record the payment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer: Please find answer in explanation column
Explanation:
Journal entry to record payment of Salaries and wages
Dates Account title Debit Credit
Jan 9 Salaries and Wages Payable $2,870
Salaries and Wages Expenses $3,040
Cash $5,910
Calculation
Salaries and wages Expense = Cash -Salaries and Wages Payable
= $5,910- $2,870=$3,040
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $83,110 in assets to launch the business. On October 31, the company’s records show the following items and amounts. Cash $ 13,470 Cash dividends $ 2,200 Accounts receivable 12,940 Consulting fees earned 12,940 Office supplies 2,400 Rent expense 2,640 Land 45,860 Salaries expense 5,920 Office equipment 17,020 Telephone expense 800 Accounts payable 7,820 Miscellaneous expenses 620 Common stock 83,110
Using the above information prepare an october income statement for the business.
Answer:
Ebony Ernst
Income statement for the month ended October 31
Consulting fees earned $12,940
Less Expenses :
Rent expense ($2,640)
Salaries expense ($5,920)
Telephone expense ($800)
Miscellaneous expenses ($620)
Profit or (Loss) $2,960
Explanation:
Income Statement shows the profit or loss resulting from the companies operations.
The Income statement comprises of revenues or income items and expenses items only.
So be careful to consider only these in solving this problem.
The Profit or loss is the final result and is determined by deducting expenses from revenue or income.
Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10; direct labor, $14, variable overhead $3 and fixed overhead, $8. An outside supplier has offered to sell the product to Paxton for $32. Compute the net incremental cost or savings of buying the component.
A. $5.00 savings per unit. eBook
B. $3.00 cost per unit.
C. $0 cost or savings per unit.
D. $5.00 cost per unit.
E. $3.00 savings per unit.
Answer:
D. $5.00 cost per unit.
Explanation:
The computation of the incremental cost or saving of purchasing the component is shown below;
Selling price = $32
And, the making cost is
= Direct material + direct labor + variable overhead
= $10 + $14 + $3
= $27
So, the net incremental cost is
= Selling price - making cost
= $32 - $27
= $5 cost per unit
Hence, the correct option is d.
On October 17, Nikle Company purchased a building and a plot of land for $750,000.
The building was valued at $500,000 while the land carried a value of $250,000.
Nikle paid $300,000 down in cash and signed a note payable for the balance.
Prepare the journal entry for this transaction.
Answer:
Building (debit) $500,000
Land (debit) $250,000
Cash (credit) $300,000
Note payable (credit) $450,000
Explanation:
Recognize the Assets : Building $500,000 and Land $250,000, de-recognized the assets of cash $300,000 and recognize liability arising from the note payable of $450,000.
The combination of firm-specific and valuable _______________ and firm-specific ______________ allows a company to possess a core competency.
Answer:
Resources; productivity.
Explanation:
Core competency can be defined as the set of skills, experience and technical know-how, which an organization possesses and distinguishes them from their competitors (rivals) in the same industry. Basically, measuring the core competence of an organization is beyond its financial assets or physical value. Core competency of an organization is rather the defining capabilities and resources which gives it a competitive advantage over its rivals in the same industry.
Hence, the combination of firm-specific and valuable resources and firm-specific productivity allows a company to possess a core competency. A company that possesses core competence are characterized by;
1. They are not so easy to imitate or not imitable by their rivals in the industry.
2. They have a very large market capital share and as such are able to diversify.
3. A core competent company should be able to provide significant satisfaction or benefits to the consumers of its products.
White House officials often exude more confidence than they actually feel about future prospects for the economy. Why might this be a good strategy? Are there any dangers inherent in it?
Answer:
Following are the answer to this question:
Explanation:
It is a great approach since it encourages and guarantees enhanced investment in infrastructure. Even so, a reduction in the possible future investment funds caused by government confidence will also result in business mistakes or failures throughout the investment process, and that's why the officials of the White House frequently exude a greater level of pride in prospects for the economic system than they feel.