The Clark Sports Camp operates three sports programs: basketball, lacrosse and field hockey. The camp provides a unique opportunity for boys and girls to engage in intensive summer sports activities. Parents often bring their all of children for the six week session. Due to diminishing profits in the basketball program, they are considering eliminating the basketball program. Camp owner Mikey Matheny has asked you to review the income statement, determine the impact on profit from dropping the basketball program and make a recommendation.
Clark Sports Camp Project Income Statement
Total Basketball Lacrosse Field Hockey
Camp Tuition $190,000 $75,000 $65,000 $50,000
Variable Costs $26,000 $12,000 $8,000 $6,000
for Food and Staff
Contribution Margin $ 164,000 $63,000 $57,000 $44,000
Fixed Expenses
Rent - Traceable $25,000 $10,000 $7,500 $7,500
Salaries of Sports $21,000 $10,000 $10,000 $1,000
Program Directors*
Allocated Common $90,000 $41,538 $27,692 $20,769
Fixed Expenses**
Total Fixed Expenses $136,000 $61,538 $45,192 $29,269
Net Operating Income $28,000 $1,462 $11,808 $14,731
(Loss)
*There is NO alternative work for the sports directors, if the sport program is eliminated, the sport program director will be eliminated.
**Common Fixed Costs are allocated based upon the number of campers but will remain constant.
Use the information above to answer questions 1-3.
1. What is the impact on profit if the basketball program is dropped?
2. For partial credit on the problem above, you can upload a spreadsheet here. (You will not receive full credit for the problem shown above if you do not upload a spreadsheet.)
3. Assume now that we are able to eliminate $50,000 of the allocated fixed costs if we drop the basketball program. What do you recommend? Write a memo to Mr. Matheny outlining your recommendation and your reasoning. Be sure to consider all of the stakeholders and use an appropriate decision model.
Answer:
1. Impact on profits:
Contribution Margin = $63,000
Less: Traceable Rent = $10,000
Less: Salary of Director = $10,000
Total avoidable fixed expenses = $20,000
Decrease in Profits = $43,000
Hence, the profits will reduce by $43,000 if the basketball program is eliminated.
3. If the allocated fixed costs can be reduced by $50,000. The program should be dropped since there will be an increase in profits by $7,000 (50,000 - 43,000). The avoidable costs and revenues should be taken into account for the purpose of this decision. If the avoidable costs are more than the revenues, the line should be dropped else not.
Hence, since after considering the reduction in allocated fixed costs, the avoidable costs are greater than revenues, the program should be dropped
For each separate case below, follow the 3-step process for adjusting the accrued expense account: Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record an adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year.
a. Salaries Payable. At year-end, salaries expense of $18,500 has been incurred by the company, but is not yet paid to employees. Interest Payable. At its December 31 year-end, the company owes $400 of interest on a line-of-credit loan. That interest will not be paid until sometime in January of the next year.
b. Interest Payable. At its December 31 year-end, the company holds a mortgage payable that has incurred $1,025 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year.
c. Interest Payable. At its December 31 year-end, the company holds a mortgage payable that has incurred $875 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year.
Answer:
a. Salaries Expense (Dr.) $18,500
Salaries Payable (Cr.) $18,500
b. Interest Expense (Dr.) $85
Interest Payable (Cr.) $85
c. Interest Expense (Dr.) $75
Interest Payable (Cr.) $75
Explanation:
The adjusting entries are made at the month or year end to adjust the transactions that were recorded. The adjustment is usually made for the transaction whose impact is changed at the month end. For the given case the interest amount recorded was for the annual but for monthly recording the interest expense will be divided by 12.
Decorative Concrete produces a concrete overlay for residential and commercial concrete flooring. Customers have complained that one of the products results in excessive cracking. The likelihood the company will incur a loss on this product is probable and the amount of the loss is estimated to be somewhere between $1.1 and $4 million.
1. Should this contingent liability be reported, disclosed in a note only, or both? To be reported To be disclosed Both2. What loss, if any, should Decorative Concrete report in its income statement?3. What liability, if any should Decorative Concrete report in its balance sheet?4. What entry, if any should be recorded in the journal?
Answer:
Decorative Concrete
1. This contingent liability should be disclosed in a note only.
2. Decorative Concrete should not report any loss in its income statement, yet.
3. Decorative Concrete should not report any liability in its balance sheet, yet.
4. No entry should be recorded in the journal.
Explanation:
a) Data and Calculations:
Estimated loss = $1.1 and $4 million
Loss is probable but the loss cannot be reasonably estimated
b) Decorative Concrete cannot reasonably estimate the loss that may arise from the contingent liability. Therefore, it should only disclose the future event in a note to the financial statements. Accounting rules specify that Decorative Concrete should record this event as a contingent liability in its accounts when it is probable that the future event will occur and the amount of the liability can be reasonably estimated. At that time, a specific amount of loss will be recorded (debit) and a specific liability established (credit) in advance of the settlement. In this Decorative's case, only one condition is met.
Discuss whether the human capital and signaling models have different implications for each of the following education policies:
A. Providing financial aid to students for college.
B. Introducing a test that high school students could take to provide reliable measures of task commitment and capacity to work effectively in teams.
C. Increasing the age at which students can drop out of high school from 16 to 17.
Answer:
A. Providing financial aid to the students will have signaling effect for students and they will study with more concentration. The financial aid helps students to focus on their studies rather than financial problems.
Explanation:
B. Test will enable to analyze the capability of students and identify whether the students has interest in certain field of education. The students who score high in the test are selected to study in the college.
C. Increase in age will increase the human capital. More students will be able to join the college. Some students might have lapsed a year due to an injury or illness and they are now been able to join the college despite of their age.
You need an inexpensive, reliable network for about twenty-five computers, all of which will be in two rooms. It is important that the network not entirely depend on one hub or one node. However, nodes will regularly be added and removed from the network, so flexibility is essential. Which topology should you use?
a.bus
b.mesh
c.star
d.ring
Answer:
a.bus
Explanation:
The bus type of topology used in connecting computers is the type whereby the connection is not entirely dependent on each other but still connected to each other in a bus form.The connection is done in such a way that, nodes can be regularly removed from the connection without crippling the whole connection of the computer network.
The answer is
A.) Bus
Doug works as the Heavy Haul Manager for Lone Star Transportation. He is currently working on a wind farm project and deciding which drivers of his team will work on the project and which field supervisors will work on communicating with GE who is building the wind farm. He is also assigning drivers certain sections of the wind turbines to ensure that the parts are delivered in the correct order for the project. Which of the following management functions is Doug undertaking?
A. Scrutinizing.
B. Planning.
C. Organizing.
D. Envisioning.
E. Controlling.
Answer:
C
Explanation:
The following accounts were taken from the unadjusted trial balance of Legislative Results Inc., a congressional lobbying firm. Indicate whether or not each account would normally require an adjusting entry. If the account normally requires an adjusting entry, use the following notation to indicate the type of adjustment:To illustrate, the answer for the first account follows:________.AR—Accrued Revenue Normally requires adjustment (AR).AE—Accrued ExpenseUR—Unearned RevenuePE—Prepaid Expense
Answer:
Note: The full question is attached below
Accounts Receivable - Normally requires adjustment (AR)
Cash - Does not normally require adjustment
Capital - Does not normally require adjustment
Interest Expense - Normally requires adjustment (AE)
Interest Receivable - Normally requires adjustment (AR)
Land - Does not normally require adjustment
Office Equipment - Does not normally require adjustment
Prepaid Rent - Normally requires adjustment (PE)
Supplies - Normally requires adjustment (PE)
Unearned Fees - Normally requires adjustment (UR)
Wages Expense - Normally requires adjustment (AE)
Firms looking to expand globally must address how they plan to enter international markets. Once a company has developed a marketing plan that involves global expansion, they have five major strategic options for how to enter the global marketplace: exporting, licensing, franchising, joint venture, and direct investment.
a. True
b. False
Answer:
True.
Explanation:
Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.
The world trade organization (WTO) is an intergovernmental organization that set rules, policies and regulates global trade across the world.
Also, the United Nations is an intergovernmental organization that is set to foster security, unity, and peace among its member nations across the world.
Firms looking to expand globally must address how they plan to enter international markets. Once a company has developed a marketing plan that involves global expansion, they have five major strategic options for how to enter the global marketplace and these includes;
I. Exporting: this involves the movement of goods and services from a particular country to other foreign countries.
II. Licensing: this involves a company granting another company the legitimate rights to produce its goods and services.
III. Franchising: it is a licensed business relationship consisting of a contractual arrangement between a parent company and another, that allows individuals or an organization access to its knowledge, processes, trademarks in order to provide a service.
IV. Joint venture: it involves two or more businesses coming together to provide goods and services to customers.
V. Direct investment: it is an investment made by an individual or business entity (investor) into an investment market (industry) located in another country.
Decisions about pricing strategies should be set in conjunction with other marketing decisions about product design, packaging, branding, distribution, and promotion. All these marketing decisions are interrelated. Prices must be related to the cost of producing the product and prices are usually set somewhere above cost. But price and cost aren't always related. There are three major approaches to pricing strategy: cost-based, demand-based (target costing), and competition-based. Other pricing strategies include skimming price strategy, penetration strategy, everyday low pricing (EDLP), high-low pricing strategy, bundling, psychological pricing, and demand-oriented pricing. Match each scenario to the strategy it best illustrates.
1. When the Mays family went to Europe, they used a travel agent who worked out a trip that included airfare, hotels, and some tours all for one price.
2. Marquis Suites shows movies in a "living room" atmosphere with comfortable chairs and food and beverage service. It deliberately charges more than other theaters for this experience.
3. Chad is a do-it-yourself guy. He shops at Home Depot because, although they don’t usually run sales, he knows the store will offer the lowest price around on the tools he needs.
4. A major national retailer charges "full retail" for most of the lines it carries but runs "special sales" during which the company lowers its price.
5. When Walmart enters a new geographic area, the company undersells its more well-established competitors and eventually raises its prices once it has a loyal customer base.
6. When Aaron was looking for mortgage lenders, he noticed that one major lender lowered their rates, and several others did the same within a few days.
7. Larry Dietzel, a real estate agent, advised his clients to price their home at $199,900 when they listed with his agency.
8. Overture Audio home theater systems can run as high as $100,000 but there are only a few companies offering the systems.
9. Toyota’s approach to entering the U.S. market was to set a certain net profit margin, then determine what price the company had to offer to get Americans to buy its cars instead of domestic cars.
A. Psychological pricing
B. Bundling
C. Target costing
D. Penetration pricing
E. High-low pricing
F. Competition-based pricing
G. Price leadership
H. Skimming price
I. Everyday low pricing (EDLP)
Answer:
1. When the Mays family went to Europe, they used a travel agent who worked out a trip that included airfare, hotels, and some tours all for one price.
Most Suitable Pricing Strategy: Bundling
2. Marquis Suites shows movies in a "living room" atmosphere with comfortable chairs and food and beverage service. It deliberately charges more than other theaters for this experience.
Most Suitable Pricing Strategy: Competition-based pricing
3. Chad is a do-it-yourself guy. He shops at Home Depot because, although they don’t usually run sales, he knows the store will offer the lowest price around on the tools he needs.
Most Suitable Pricing Strategy: Everyday low pricing (EDLP)
4. A major national retailer charges "full retail" for most of the lines it carries but runs "special sales" during which the company lowers its price.
Most Suitable Pricing Strategy: High-low pricing
5. When Walmart enters a new geographic area, the company undersells its more well-established competitors and eventually raises its prices once it has a loyal customer base.
Most Suitable Pricing Strategy: Penetration pricing
6. When Aaron was looking for mortgage lenders, he noticed that one major lender lowered their rates, and several others did the same within a few days.
Most Suitable Pricing Strategy: Price leadership
7. Larry Dietzel, a real estate agent, advised his clients to price their home at $199,900 when they listed with his agency.
Most Suitable Pricing Strategy: Psychological pricing
8. Overture Audio home theater systems can run as high as $100,000 but there are only a few companies offering the systems.
Most Suitable Pricing Strategy: Skimming price
9. Toyota’s approach to entering the U.S. market was to set a certain net profit margin, then determine what price the company had to offer to get Americans to buy its cars instead of domestic cars.
Most Suitable Pricing Strategy: Target costing
Frances Newberry is the payroll accountant for Pack-It Services of Jackson, Arizona. The employees of Pack-It Services are paid semimonthly. An employee, Glen Riley, comes to her on November 6 and requests a pay advance of $1,650, which he will pay back in equal parts on the November 15 and December 15 paychecks. Glen is married with eight withholding allowances and is paid $58,640 per year. He contributes 3 percent of his pay to a 401(k) and has $25 per paycheck deducted for a Section 125 plan.
Required:
Compute his net pay on his November 15 paycheck.
Answer:
Net pay is $1,201.80
Explanation:
The salary is $58,640 annually
The semi monthly gross salary will be ($58,640 / 24) = $2,443.33
The deductions will be:
Social security 6.2% = $151.49
Medicare 1.45% = $35.42
3% contribution to 401k = $73.30
Section 125 Plan = $25
Advance repayment ($1,650 / 2) = $825
Taxable Income is $2,443.33 - $73.30 - $25 = $2,345.03
Federal Income Tax 1.6% = $37.52
State Income Tax 4% = $93.80
Net pay is ($2,345.03 - $37.52 - $93.80 - $151.49 - $35.42 - $825) = $1,201.80
Green Day Corporation has outstanding 500,000 shares of $10 par value common stock. The corporation declares a 70% stock dividend when the fair value of the stock is $45 per share. Prepare the journal entries for Green Day Corporation for both the date of declaration and the date of distribution.
Date of Declaration:
Dr: Retained Earnings 22,850,000
Cr: Common Stock Dividend Distributable 350,000
Cr: Paid-in Capital in Excess of Par-Common 22,500,000
500,000*45 = 22,500,000
22,500,000+350,000=22,850,000
Date of Distribution:
(70%*500,000) = 350,000
Dr: Common Stock Dividend Distributable 350,000
Cr: Common Stock 350,000
You just took an Uber from home to campus for the first time and were willing to pay $13 for the trip. It was so much easier than driving yourself that you are willing to pay $21 for the same trip tomorrow. Determine if you have violated the law of demand based on your choices, and why or why not that is the case.
Answer:
We do not violate the law of demand based on my choices
Explanation:
We do not violate the law of demand because the preference for the product changed after i experienced the good. Law of demand is not violated as the preference / utility derived from Uber changes after one ride. Now the consumer derives more utility from Uber, so the willingness to pay also increases.
What level of government is most closely associated with zoning?
a.local
b.interstate
c.federal
d.state
Liability Insurance Company writes a substantial amount of commercial liability insurance. A large construction company requests $100 million of liability insurance to cover its business operations. Liability Insurance has a reinsurance contract with Bermuda Re that enables the coverage to be written immediately. Under the terms of the contract, Liability Insurance pays 25 percent of the losses and retains 25 percent of the premium. Bermuda Re pays 75 percent of the losses and receives 75 percent of the premium, less a ceding commission that is paid to Liability Insurance. Based on the preceding,
A. What type of re-insurance contract best describes the re-insurance arrangement that Liability Insurance has with Bermuda Re?
B. If a $50 million covered loss occurs, how much will Bermuda Re have to pay? Explain.
C. Why does Bermuda Re pay a ceding commission to Liability Insurance?
Answer:
Following are the solution to the given points:
Explanation:
For point A:
Its reinsurance scheme which Liability Coverage through Bermuda Re better defines. In this form, primary insurers and reinsurers decide, based on percentage or allocation, to divide the profits and losses.
For point B:
Bermuda Re is paying 75% of the losses. When a protected loss of $50 million comes in Bermuda Re was indeed paying =75% of 50 million = 37.5 million.
For point C:
Bermuda Recharges a responsibility insurance ceding commission and covers the costs sustained in the business through writing.
If the government places a $2 tax per bag of potato chips on the producers, what would the consumers of potato chips observe? a. There would be no change in price and the consumer would not notice. b. The government would tax individuals who bought too many potato chips. c. Consumers would pay the full $2 tax in the form of a price increase. d. The price of potato chips would rise by some amount, but by less than $2.
Answer
d. the price of potato hips would rise by some amount
Explanation:
If the government places a $2 tax per bag of potato chips on the producers, then the price of potato chips would rise by some amount, but by less than $2. Option (d) is correct.
What do you mean by Tax?In order to pay for general government services, goods, and activities, local, state, and federal governments must collect mandated payments or charges from citizens and corporations.
While taxes cause deadweight loss, the exact amount depends on a number of factors. The ability of a provider to deliver the desired goods to the customer and the amount that a consumer is ready to spend on a product are two of the most crucial factors. This is an illustration of the economic principle of supply and demand.
The supply curve shows an upward tendency when the price of potatoes rises by $2 tax because more potatoes are supplied. If a non-price element changes, the supply curve shifts to the right.
Therefore, Option (d) is correct.
Learn more about Tax, here;
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The Marchetti Soup Company entered into the following transactions during the month of June:
a. purchased inventory on account for $160,000 (assume Marchetti uses a perpetual inventory system)
b. paid $43,000 in salaries to employees for work performed during the month
c. sold merchandise that cost $126,000 to credit customers for $215,000
d. collected $195,000 in cash from credit customers.
e. paid suppliers of inventory $140,000.
Assume that the opening balances in each of the accounts is zero except for cash, accounts receivable, and accounts payable that had opening balances of $66,500, $46,000, and $25,000, respectively. (Enter the transaction number in the column next to the amount.) Prepare journal entries for each of the above transactions.
Answer and Explanation:
The journal entries are shown below:
a. Merchandise Inventory Dr $160,000
To Account payable $160,000
(Being inventory purchased on account)
b. Salaries expense Dr $43,000
To Cash $43,000
(Being salaries are paid in cash)
c. Account receivable Dr $215,000
To Service revenue $215,000
(being merchandise sold)
d. Cash Dr $195,000
To Account receivable $195,000
(being collection is recorded)
e. Supplies Dr $140,000
To cash $140,000
(being supplies paid in cash)
Use the following information to answer this question.
Windswept, Inc. 2010 Income Statement ($ in millions)
Net sales $10,700
Less: Cost of goods sold 8,050
Less: Depreciation 380
Earnings before interest and taxes $2,270
Less: Interest paid 104
Taxable Income $2,166
Less: Taxes 650
Net income $1,516
Required:
What amount should be included in the financing section of the 2010 statement of cash flows for dividends paid?
Answer:
See below
Explanation:
The above is an incomplete question, however, from a similar question values of beginning retained earnings, ending retained earnings were given to compute the dividend paid.
Given that;
Beginning retained earnings = $700 million
Ending retained earnings = $450 million
Net income = $1,516 million
Closing retained earning = Beginning retained earning + Net income - Dividends paid
$450 = $700 + $1,516 - Dividends paid
$450 = $2,216 - Dividends paid
Dividends paid = $1,766
A small company wishes to set up a fund that can be used for technology purchases over the next 6 years. Their forecast is for $16,000 to be needed at the end of year 1, decreasing by $2,000 each year thereafter. The fund earns 6% per year. How much money must be deposited to the fund at the end of year 0 to just deplete the fund after the last withdrawal
Answer:
$55,758.47
Explanation:
Money which must be deposited to the fund at the end of year 0:
= 16000/1.06 + 14000/1.06^2 + 12000/1.06^3 + 10000/1.06^4 + 8000/1.06^5 + 6000/1.06^6
= 16000/1.06 + 14000/1.1236 + 12000/1.191016 + 10000/1.26247696 + 8000/1.33823 + 6000/1.41852
= 55758.4640346
= $55,758.47
have you done something mean today lol what did you do
Answer:
lol I pushed my brother he was annoying me
Answer:
Umm no I didn't sorry
Explanation:
What is travel arrangement management?
Answer:
Explanation:
Corporate business travel management manages all aspects of the travel arrangements for an organization's employees. Contracts with airlines, hotel chains, rental car companies, and other business travel management services are arranged by corporate travel management services.
Answer:
Travel management is a specialism, which is based around organising corporate travel, tracking your various travel expenses and devising a comprehensive travel strategy. As a discipline, it is intended to help businesses and their employees to optimise the way they deal with their travel needs.
Explanation:
Name at least 4 of the sources of ethical issues
Answer:
Religion:
Culture:
Law:
Corresponds to Basic Human Needs:
Credibility in the Public:
Credibility with the Employees:
Better Decision Making:
Profitability:
Answer:
Religion:
Culture:
Law:
Basic Human Needs
Explanation:
Ethical challenges and their attendant dilemmas may be caused by failure of personal mentality problems with personal values and organizational goals; organizational goals versus social values and harmful, but popular products.
What Does Ethical Issues Mean?
Ethical issues happen when a given decision, scenario or activity creates a problem with a society's moral principles These conflicts occasionally legally dangerous, since some of the possible ways to solve the issue might breach a particular law.
hope this helps!
-Tobie
Use each of these key terms to best complete the following sentences. Use each term no more than once. Agreeableness
1. Neuroticism
2. Extraversion
3. Conscientiousness
4. Openness
5. Machiavellianism
6. Authoritarianism
a. Ted is willing to listen to new ideas and to change his beliefs and attitudes in response to new information. Ted is likely high in this personality trait.
b. Eduardo tends to be insecure and often has mood swings at work that make his coworkers uncomfortable. Eduardo is likely to be high in this personality trait.
c. Aidan is often late with projects and seems disorganized. He is likely low in this personality trait
d. Betty is sociable, talkative, and one of the first employees to welcome a new hire and offer to show him or her around. Betty is likely high in this personality trait.
Answer:
4
1
3
2
Explanation:
The big 5 personality traits include
Openness - it includes people who are open to new things and enjoy learning new things.
Ted is high on this trait
Extraversion - it includes people who enjoy meeting new people and are very sociable.
Betty is high on this trait
Conscientiousness - includes people that are organised and pay attention to details. Aiden is low on this trait
Agreeableness - includes people that trust people easily and are kind
Neuroticism - includes people that are usually moody or sad
For each of the following transactions, indicate whether it represents an increase in the U.S. gross domestic product (GDP), and, if so, state whether it represents U.S. consumption, investment, government purchases of goods or services, or net exports. If the transaction does not change U.S. GDP explain why not?
a. Ms. Scott buys a used Honda Accordfrom her friend Danielle for $7,500.
b. You spent $12,500 on college tuition this year.
c. Pizza Hut buys 100 pounds of cheese from Wisconsin to make pizzas.
d. Mr. Luong is a Chinese citizen who works as a Chemistry teaching assistant at UC Mercedandearns $16,000 a year in salary.
e. A candy store buys $500 worth of chocolates made in Belgium.
f. Boeing produces 5 airplanes but are unable to sell them.
Answer:
a. No change in GDP.
There will be no change in GDP resulting from this transaction. Resales are considered double counting because the good had already been paid for before and so will inflate GDP.
b. GDP increase by $12,500. U.S. Consumption.
This is a consumption transaction as money is being spent to satisfy the need for education. It will therefore increase GDP by $12,500.
c. No change in GDP.
Intermediate goods to be used in production are not included in GDP to avoid double counting. Only the final value of goods and services are included. This is an intermediate good and so will not be included.
d. Increase in GDP $16,000. Government purchase of goods or services.
Mr. Luong works in a Public University which means that his salary is paid for by the government. This will increase GDP by $16,000 as it represents money spent by Government.
e. Decrease in GDP $500. Net Exports.
As this good was bought from outside the country, it is an import. Imports reduce a country's GDP because they reduce the Net exports. GDP will therefore reduce by $500.
f. Increase in GDP by plane value. Investment.
So long as the goods have already been produced in their final form, they will be part of GDP. They will increase GDP by their value and are a part of Investment.
What requires frequent safety and health inspections
Answer:
OSHA
Explanation:
Urshela Company paid four months insurance on October 1, 2017 for $13,200. Urshela originally recorded the full insurance payment in the prepaid insurance account, Urshela operates on a calendar year basis. What adjusting journal entry would Urshela be required to make at 12/31 to properly recognize insurance expense for the year
999 trillion dollars in a year
. Suppose this year you buy 5% coupon rate, $100 face value bond for $90 that has 3 years left till maturity. Suppose next year market interest rates decrease to 2% and you decide to sell it your bond that year.a) Calculate the selling price of your bond next year. In another words, what price would make your bond competitive when market yields are at 2.0%?
Answer:
$105.83
Explanation:
The computation of the selling price of the bond is as follows
Number of coupons remaining = n = 2
Coupon amount = C = 100 × 5% = $5
Maturity amount = FV = $100
Purchase price = P = $90
Selling price = PV of future payments at 2%
Now
Selling price = S is
= 5 × (P/A,0.02,2) + 100 × (P/F,0.02,2)
= 5 × 1.9416 + 100 × 0.9612
= $105.83
Piekos Corporation incurred $90,000 of actual Manufacturing Overhead costs during June. During the same period, the Manufacturing Overhead applied to Work in Process was $92,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:
Answer:
C. credit to Manufacturing Overhead of $92,000
Explanation:
The journal entry for the application of Manufacturing to Work in Process amounting to $92,000 would be as follows:
Dr. ($) Cr. ($)
Work in Process 92,000
Manufacturing Overhead 92,000
The other options are incorrect either due to wrong particular used or due to incorrect amount such as in option (b) where the Debit to Work in Process is correct but the amount $90,000 is wrong. Hence, the option (c) Credit to Manufacturing Overhead of $92,000 is the correct answer.
Wang Company has established the following overhead cost pools and cost drivers for the month of May: Cost Pool Overhead Costs Cost Driver Levels Purchase orders $ 30,000 50 orders Machine setups 50,000 100 setups Electricity 10,000 10,000 kilowatt hours The following information pertains to the actual consumption of activity resources for two sample jobs completed during May. Job M1 Job M2 Number of units produced 500 1,000 Number of purchase orders 15 10 Number of setups 20 10 Number of kilowatt hours 500 1,000 What is the activity-based overhead rate per purchase ord
Answer:
Purchase order activity rate= $600 per order
Explanation:
Giving the following information:
Cost Pool Overhead Costs Cost Driver Levels
Purchase orders $ 30,000 50 orders
To calculate the activity rate for Purchase orders, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Purchase order activity rate= 30,000 / 50
Purchase order activity rate= $600 per order
Identifying various components that are at higher risks and standardizing it.
a. In Toyota's case it was certain parts across Japanese automakers which was considered as a risk for revenue and disruption of production.
b. Toyota is now sourcing of engines and transmissions in the locally.
c. Toyota brought out fix solutions to the affected vehicles which took mass media and online tools for its advantage and also teams to monitor quality issues.
Answer:
a. Certain parts acquired from Japanese automakers are at lesser risk because the components are standardized.
b. Sourcing engines and transmissions locally is at higher risk as the company has gone toward customization which involves risks and the product will not be standardized.
c. This involves less risk and standardized.
Explanation:
The standardized components will create lesser risk to the company. When the company goes towards customization then there will be risk involved in the components as the customers might not accept the customized components and standardized feature might be more appreciated by the customers.
Assume an investor acquired 100% of the voting common stock of an investee on January 1, 2012 in a transaction that qualifies as a business combination. As a result of the acquisition, the investor recognized no goodwill and no bargain purchase gain in the post-acquisition consolidated financial statements (i.e., all of the resulting Acquisition Accounting Premium relates to identifiable net assets). The investor uses the equity method to account for its pre-consolidation investment in the investee. In addition, there are no intercompany transactions between the investor and investee. The following summarized pre-consolidation financial statement information is for the year ending December 31, 2019
Income Statement Investor Investee
Revenues $2,232,000 $307,200
Income from Investee 141,600 0
Expenses (1,800,000) (156,000)
Consolidated net income 573,600 151 ,200
NCI - -
Net income $573,600 $151,200
Statement of Retained Earnings
Retained earnings, January 1 $720,000 $36,000
Net income 573,600 151 ,200
Dividends declared 60,000 36,000
Retained earnings, December 31 $1,233,600 $151,200
Balance Sheet
Investment in Investee $283,200 $0
All other assets 4,598,400 384,000
Total assets $4,881,600 $384,000
Liabilities $2,880,000 $128,000
Common stock and additional paid-in capital 768,000 84,000
Retained earnings 1,233,600 151 ,200
Total liabilities and equity $4,881,600 $384,000
What amount of "expenses" will appear in the consolidated income statement for the year ending December 31, 2019?
a. $1,800,000
b. $1,956,000
c. $1,975,200
d. $1,965,600
Answer:
d. $1,965,600
Explanation:
The computation of the amount of expense appear in the consolidated income statement is as follows:
= Investor + investee + expenses related to purchase
= $1,800,000 + $156,000 + ($151,200 - $141,600)
= $1,800,000 + $156,000 + $9,600
= $1,965,600
hence, the d option is correct