Answer:
The total Operating income will decrease by $5,000
Explanation:
Note that some word are missing and are inserted as written below:
"Benace Parts and Supply makes a variety of car parts. The company produces 6,000 A90 parts each year. Each A90 sells for $7 and has a contribution margin of $2. Currently, $16,000 of fixed manufacturing overhead is allocated to the A90 product line. If Benace Parts and Supply discontinues the A90 product line, $7,000 of fixed manufacturing overhead costs would be avoided. What would be the impact on total operating income if the A90 product line were to be discontinued? "
Solution:
Loss of Contribution margin if the A90 product line discontinued = Units * Contribution margin per unit
= 6,000 units * $2
= $12,000
Saving of avoidable fixed Overhead = $7,000
Decrease in Total Operating Income = Loss of Contribution margin - Saving of avoidable fixed Overhead
= $12,000 - $7.000
= $5,000 (Decrease)
Hence, the total Operating income will decrease by $5,000
Points: 12©2006 Capsim Management Simulations, Inc.® The Chester company will continue to train their existing workforce at their current level to help reduce turnover and improve productivity next year. Employee training costs have increased to $30 per hour. How much would their training costs per employee be to the nearest dollar? Select: 1Save Answer $2,382 $1,182 $400 $1,200
Answer:
$1,200
Explanation:
Calculation for how much would their training costs per employee be
Using this formula
Training cost per employee = Number of hours × Training cost per hour of employee
Let plug in the formula
Training cost per employee= 40 × $30
Training cost per employee= $1,200
Therefore how much would their training costs per employee be is $1,200.
Mark the incorrect answer. Estimated income tax payments:
a. Need not be filed if the estimated tax, after subtracting withholding, can reasonably be expected to be more than $1,000.
b. May be based on the amount of the tax liability for the prior year.
c. If inadequate, may result in nondeductible penalties.
d. Are made in four installments on April 15, June 15, and September 15 of the tax year and on January 15 of the following year.
Answer:
a. Need not be filed if the estimated tax, after subtracting withholding, can reasonably be expected to be more than $1,000.
Explanation:
Mr. Levy's estimated tax is the tax payment method for his income that is not subject to withholding. This income includes the earnings he receives from self-employment, interest, dividends, rents, and alimony. In addition, if Mr. Levy does not choose to have taxes withheld from his other taxable income, he should also make estimated tax payments.
The following data relate to labor cost for production of 22,000 cellular telephones:
Actual: 4,220 hrs. at $44.50
Standard: 4,160 hrs. at $46.00
Required:
Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance.
Answer:
Results are below.
Explanation:
Giving the following information:
Production= 22,000 units
Actual: 4,220 hrs. at $44.50
Standard: 4,160 hrs. at $46.00
To calculate the direct labor time and rate variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (4,160 - 4,220)*46
Direct labor time (efficiency) variance= $2,760 unfavorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (46 - 44.5)*4,220
Direct labor rate variance= $6,330 favorable
Total variance= 6,330 - 2,760
Total variance= $3,570 favorable
Derst Inc. sells a particular textbook for $39. Variable expenses are $28 per book. At the current volume of 49,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:
Answer:Annual fixed expenses = $ 539,000
Explanation:
Given;
break even point on books sold= $49,000
sales price per unit = $39
variable cost= $28
Using the formulae,
Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales
49,000 =Fixed cost / ( 39-28)
Fixed cost = 49,000 x 11
= $ 539,000
Annual fixed expenses = $ 539,000
At her current level of consumption, Jess gets half as much marginal utility from an additional bagel as from an additional muffin. If the price of muffin is $2 each, then Jess is maximizing her utility if the price of a bagel is:
Answer:
$1
Explanation:
Utility is the satisfaction a person derives from consumption of a product.
Consumers seek to maximise utility when they have choices between products.
They choose products that gives them most satisfaction.
In this scenario gets 0.5 unit satisfaction from consuming a bagel to 1 unit of satisfaction from consuming muffins.
She will maximise utility in bagels when she pays a price that will give her satisfaction of consuming one muffin.
Therefore
0.5 utility on bagel = x
1 utility on muffin = $2
Cross multiply
x = ( 2 * 0.5) ÷ 1
x = $1
So Jess gets same satisfaction from 2 bagels as she gets from $2 of muffin
The accounts receivable turnover is computed as __________ divided by __________. sales; accounts receivable sales; average accounts receivable sales; net income accounts receivable; net income
Answer:
The answer is B. sales; average accounts receivable
Explanation:
Accounts Receivable turnover ratio tells the number of times it takes a business to recover the money he lent its customers inform of selling on credit. An accounts receivable turnover of 17 means the business is using 17 days on average to collect its receivables from customers.
The formula is:
Sales/average accounts receivable.
If a consumer purchases a combination of coffee and football tickets such that Coffee/Coffee = 20 and MU Football tickets/PFootball tickets = 10, to maximize utility, the consumer should by:_________
a. more coffee and more football tickets
b. less coffee and more football tickets
c. less coffee and fewer football tickets
d. more coffee and fewer football tickets
Answer: d. more coffee and fewer football tickets
Explanation:
MU/P refers to the marginal utility gained per dollar of an alternative and rationale consumers are always expected to maximise their utility by picking alternatives that give them more utility as opposed to less.
The MU/P for coffee is 20 whilst that of football tickets in 10. This means that more utility is gained from getting more coffee as opposed to football tickets. The action that would maximise utility would therefore be one where the consumer gets more coffee and fewer football tickets.
You own a stock portfolio invested 16 percent in Stock Q, 24 percent in Stock R, 36 percent in Stock S, and 24 percent in Stock T. The betas for these four stocks are .94, 1.00, 1.40, and 1.85, respectively. What is the portfolio beta?
Answer:
1.3384
Explanation:
The computation of the portfolio beta is shown below:
= Stock Q × beta of stock Q + Stock R × beta of stock R + Stock S × beta of Stock S + Stock T × beta of Stock T
= 0.16 × 0.94 + 0.24 × 1 + 0.36 × 1.4 + 0.24 × 1.85
= 1.3384
We simply applied the above formula to determine the portfolio beta and the same is to be considered
able to purchase a machine to process the dough more efficiently which will increase fixed costs by $500 each month. This will reduce variable costs by $.50 per pizza. What number of pizzas must be sold to maintain the monthly profit of $20,000.
Answer:
Number of pizzas = 6,778 units
Explanation:
The computation of the number of pizzas to be sold for maintaining the monthly profit is shown below:
= (Fixed expenses + target profit) ÷ (Contribution margin per unit)
where,
Fixed expenses = $10,000 + $500 = $10,500
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $10 - ($6 - $0.50)
= $4.50
Now placing these values to the above formula
So, the number of pizzas would equal to
= ($10,500 + $20,000) ÷ ($4.50)
= 6,778 units
A company had revenues of $54,000 and expenses of $43,250 for the accounting period. The company paid $5,950 cash in dividends to the owner (sole shareholder). Which of the following entries could not be a closing entry?
A. Debit Income Summary $10,750; credit Retained Earnings $10,750.
B. Debit Income Summary $54,000; credit Revenues $54,000.
C. Debit Revenues $54,000; credit Income Summary $54,000.
D. Debit Income Summary $43,250, credit Expenses $43,250.
E. Debit Retained Earnings $5,950, credit Dividends $5,950.
Answer:B. Debit Income Summary $54,000; credit Revenues $54,000.
Explanation:
The following entries can be a closing entry
a)To record closing entry of revenue account
Account Debit Credit
Revenues $54,000
Income summary $54,000
b)To record closing entry of expense account
Income summary $43,250
Expenses $43,250
c)To record closing entry of income summary account
Income summary ( $54,000- $43,250) $10,750
Retained earnings $10,750
d) to record the closing entry of dividends account
Retained Earnings $5,950
Dividend $5,950
The entry that could not be a closing entry is B. Debit Income Summary $54,000; credit Revenues $54,000 because income summary account should be credited with the revenue amount of $54,000 as Revenue increases the income of every business.
Discuss this statement: "Internationalization is a relevant strategic option for high-tech venture expansion and growth." What makes this statement true? What facts support this statement?
Answer:
When a firm decides to situate its operations outside of its original geographic boundaries, it is said to have internationalized its operations.
It is right to acquiesce to the position that Internationalization can become a critical growth strategy for a high-tech venture.
Explanation:
Every country/economy in the world operates at different levels of efficiency with various degrees of economic advantages and disadvantages to the businesses. The one singular factor that validates this statement is the Cost of Doing Business.
For example,
by virtue of China's huge population and economic strategies, its low cost of production (which was mainly due to cheap labour) became a great incentive to many tech companies all over the world especially IT.
By relocating production operations to China, many companies got the same quality for far less than they would have if they retained such operations in their home country.
One example of this is Apple. Apple currently has an operation in China which manufactures its iPhones with a production plant that is 230,000 staff strong.
Foxconn which is the name of the manufacturing partner which China uses boasts of the ability to produce half a million iPhones in a day.
On the 30th of July, 2020, USD 59.7 billion was posted by Apply as its earning. This is an 11% growth over its quarterly performance from a year ago of which 60% is accounted for by sales from international economies.
The above facts speak to the relevance/advantages of internationalisation.
Cheers!
A two-year project has sales of $582,960, cash costs of $411,015, and depreciation expense of $68,109. The tax rate is 24 percent and the discount rate is 12 percent. What amount should be used as the annual depreciation tax shield when computing the project's operating cash flow? Ignore bonus depreciation. C) $47,213.34 D) $26,210.01 E) $46,676.30 B) $16,346.16 A) $23,606.67
Answer:
B) $16,346.16
Explanation:
annual operating tax shield = depreciation expense x tax rate = $68,109 x 24% = $16,346.16
when you are calculating the net cash flows, the formula you will follow is:
net cash flow = [(revenues - cash costs - depreciation expense) x (1 - tax rate)] + depreciation expense
net cash flow = [($582,960 - $411,015 - $68,109) x (1 - 24%)] + $68,109 = $147,024.36
When two or more firms form a ________ agreement and set price and quantity in unison, economists refer to them as ________. Group of answer choices
Answer: collusive; cartel
Explanation:
A cartel is formed when independent market participants come together and collude so that they will be able to dominate the market and also maximize their profit. Cartels are usually in the same business.
Therefore, When two or more firms form a collusive agreement and set price and quantity in unison, economists refer to them as cartel.
Where should DoD employees look for guidance on safeguarding classified information?
Answer: E.O. 13526 ; DoDM 5200.01
Explanation:
The Department of Defense(DOD) is a federal agency that is responsible for the coordination and the supervision of everything that is related to national security in the United States.
The Department of Defense employees should look at E.O. 13526 and the DoDM 5200.01 for guidance on safeguarding classified information.
DoD employees should look for guidance on safeguarding classified information primarily within the Department of Defense (DoD) policies and regulations.
How is this so?These policies and regulations provide comprehensive guidelines on the handling, storage, transmission, and protection of classified information.
Specifically, employees can refer to documents such as the DoD Manual 5200.01, "DoD Information Security Program," and DoD Directive 5200.01, "DoD Information Security Program and Protection of Sensitive Compartmented Information."
Also, each branch of the military and specific agencies within the DoD may have their own supplemental guidance and regulations that employees should consult for specific requirements and procedures.
Learn more about classified information at:
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"A customer sells short 200 shares of ABC stock in a margin account. ABC declares a 5% stock dividend. How many shares must be purchased to close out the short position?"
Answer:
210 shares
Explanation:
A customer sells 200 shares of ABC stock in a margin account
ABC declares a 5% stock dividend
=5/100
= 0.05
Therefore, the amount of shares that must be purchased inorder to close out the short position can be calculated as follows
= 200×0.05
= 10
10+200 shares
= 210 shares
Hence 210 shares must be purchased to close out the short position
What is the value today of $1,100 per year, at a discount rate of 8 percent, if the first payment is received 4 years from now and the last payment is received 23 years from today
Answer:
The value today = $8,573.36
Explanation:
The value today of the investment would the present value of annuity of 1,100 receivable discounted at the at the rate of 8%.
The PV of the payment would be done as follows:
The number of payments would be 20 installments. Please be mindful not to say 19. Remember the first the payment occurs in year 4 which is inclusive.
PV = A × 1- ( (1+r)^(-n))/r
A- annual payment
r- rate of return
n- number of years
DATA
A- 1,100
r- 8%
n- 20
PV = 1,100 × 1- (1.08)^(-20)/0.08 = 10,799.96
PV (in year 0) = PV in year 3× (1+r)^(-3)
PV (in year 0) =10,799.96 × 1.08^(-3) = 8,573.36
PV (in year 0) = $ 8,573.36
The value today = $8,573.36
Gains from remeasuring a foreign subsidiary’s financial statements from the local currency, which is not the functional currency, into the parent company’s currency should be reported as a(n):_______
a. Deferred foreign exchange gain.
b. Other comprehensive income" and as a separate component of stockholders’ equity.
c. Extraordinary item, net of income taxes.
d. Part of continuing operations.
Answer:
Gains from remeasuring a foreign subsidiary’s financial statements from the local currency, which is not the functional currency, into the parent company’s currency should be reported as a(n):_______
d. Part of continuing operations.
Explanation:
Gains from the remeasurement of a subsidiary's financial statements from the local currency to the parent company's currency should be reported as part of the continuing operations. It forms part of the current income. They are not deferred. It is translation adjustments that are reported as other comprehensive income, not gains from remeasurement. Remeasurement gains from a subsidiary's local currency to the parent's are also not extraordinary items.
Evaluate online tutorials and online communities in regard to helping users. Create an argument for the approach you find to be the most effective and explain why.
Explanation:
The most effective approach in my opinion is online tutorials, which are tools used to assist users in various subjects.
On the internet there are a variety of online tutorials to teach subjects such as computers, use of electronic devices, technological systems, etc. Its advantage is the detailed teaching methodology that is usually carried out by the step-by-step method.
This learning methodology can be more beneficial in relation to online communities, which may pose some risks to user data and information.
On February 1, 2014, Nelson Corporation purchased a parcel of land as a factory site for $280,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2014. Costs incurred during this period are listed below:
Demolition of old building $20,000
Architect's fees 35,000
Legal fees for title investigation and purchase contract 5,000
Construction costs 1,340,000
(Salvaged materials resulting from demolition were sold for $10,000.)
Nelson should record the cost of the land and new building, respectively, as:_________.
a. $305,000 and $1,365,000.
b. $290,000 and $1,380,000.
c. $290,000 and $1,375,000.
d. $295,000 and $1,375,000.
Answer:
d. The cost of land and building is $295,000 and $1,375,000 respectively
Explanation:
Cost of land = Purchase price + Price for demolishing old building + Legal fee on purchase contract & investigation - Salvage value of demolished material
Cost of land = $280,000 + $20,000 + $5,000 - $10,000
Cost of land = $305,000−$10,000
Cost of land = $295,000
Cost of building = Construction cost + Architect′ s fee
= $1,340,000 + $35,000
= $1,375,000
If a company has excess capacity, increases in production level will increase variable production costs but not fixed production costs.
a. True
b. False
Answer; True
Explanation;
When a company has excess capacity, it means that potentially it could produce more than it is producing at the moment. As this potential already takes into account the fixed costs, this means that given the fixed costs it currently has, more goods could be produced on those same fixed costs and they wouldn't increase.
Increasing production level would therefore only increase variable costs which rise whenever production rises as they are directly related to the production of goods.
I'm having a difficult time with my accounting workbook. I post the adjusting entries, but my balance sheet never equalizes. Can someone point me where i'm going wrong?
1. A supplier shipped $3,000 of ingredients on 12/29/17. Peyton receives an invoice for the goods, as well as a bill for freight for $175, all dated 12/29/17. Goods were shipped FOB supplier’s warehouse.
2. At 12/31/17, Peyton has $200 worth of merchandise on consignment at Bruno’s House of Bacon.
3. On 12/23/17, Peyton received a $1,000 deposit from Pet Globe for product to be shipped by Peyton in the second week of January.
4. On 12/03/2017, a mixer with cost of $2,000, accumulated depreciation $1,200, was destroyed by a forklift. As of 12/23/17, insurance company has agreed to pay $700 in January, 2018, for accidental destruction.
5. Note about later borrowing financials will show loan from parents repaid and use of bank financing.
PEYTON APPROVED
TRIAL BALANCE
As of December 31, 2017
Unadjusted trial balance Adjusting entries Adjusted trial balance
Dr Cr ref Dr Cr ref Dr Cr
Cash 67,520.04 67,520.04
Accounts Receivable 68,519.91 68,519.91
Other Receivable - Insurance Baking Supplies 15,506.70 15,506.70
Merchandise Inventory 1,238.07 1,238.07
Consignment Inventory Prepaid Rent 2,114.55 2,114.55
Prepaid Insurance 2,114.55 2,114.55
Misc. Supplies 170.49 170.49
Baking Equipment 14,000.00 14,000.00
Accumulated Depreciation 1,606.44 1,606.44
Customer Deposit - Accounts Payable 20,262.11 20,262.11
Wages Payable 3,383.28 3,383.28
Interest Payable 211.46 211.46
Notes Payable 5,000.00 5,000.00
Common Stock 20,000.00 20,000.00
Beginning Retained earnings 50,144.84 50,144.84
Dividends 105,000.00 105,000.00
Bakery Sales 327,322.55 327,322.55
Merchandise Sales 1,205.64 1,205.64
Cost of Goods Sold - Baked 105,834.29 105,834.29
Cost of Goods Sold - Merchandise 859.77 859.77
Rent Expense 24,549.19 24,549.19
Wages Expense 10,670.72 10,670.72
Misc. Supplies Expense 3,000.46 3,000.46
Business License Expense 2,045.77 2,045.77
Misc. Expense 1,363.84 1,363.84
Depreciation Expense 677.86 677.86
Insurance Expense 1,091.08 1,091.08
Advertising Expense 1,549.74 1,549.74
Interest Expense 818.31 818.31
Telephone Expense 490.98 490.98
Gain/Loss on disposal of equipment 429,136.32 429,136.32 - - 429,136.32 429,136.32
Answer:
PEYTON APPROVED
TRIAL BALANCE
As of December 31, 2017
Unadjusted Adjusting Adjusted
Trial balance Entries Trial balance
Dr Cr ref Dr Cr ref Dr Cr
Cash 67,520.04 3 1,000 68,520.04
Accounts Receivable 68,519.91 68,519.91
Other Receivable -
Insurance Baking
Supplies 15,506.70 15,506.70
Merchandise
Inventory 1,238.07 1 3,175 1 4,413.07
Consignment
Inventory 2 200 2 200
Prepaid Rent 2,114.55 2,114.55
Prepaid Insurance 2,114.55 2,114.55
Misc. Supplies 170.49 170.49
Baking Equipment 14,000.00 4 2,000 4 12,000.00
Accumulated Depreciation 1,606.44 4 4 406.44
Customer Deposit
- Accounts Payable 20,262.11 20,262.11
Wages Payable 3,383.28 3,383.28
Interest Payable 211.46 211.46
Notes Payable 5,000.00 5,000.00
Common Stock 20,000.00 20,000.00
Beginning Retained
earnings 50,144.84 50,144.84
Dividends 105,000.00 105,000.00
Bakery Sales 327,322.55 327,322.55
Merchandise Sales 1,205.64 1,205.64
Cost of Goods
Sold - Baked 105,834.29 105,834.29
Cost of Goods
Sold -
Merchandise 859.77 859.77
Rent Exp. 24,549.19 24,549.19
Wages Exp. 10,670.72 10,670.72
Misc. Supplies
Expense 3,000.46 3,000.46
Business
License
Expense 2,045.77 2,045.77
Misc.
Expense 1,363.84 1,363.84
Depreciation
Expense 677.86 677.86
Insurance
Expense 1,091.08 1,091.08
Advertising
Expense 1,549.74 1,549.74
Interest
Expense 818.31 818.31
Telephone
Expense 490.98 490.98
Gain/Loss on
disposal of equipment 429,136.32 429,136.32 - - 429,136.32 429,136.32
Explanation:
a) Data and Calculations:
PEYTON APPROVED
TRIAL BALANCE
As of December 31, 2017
Unadjusted trial balance Adjusting entries Adjusted trial balance
Dr Cr ref Dr Cr ref Dr Cr
Cash 67,520.04 67,520.04
Accounts Receivable 68,519.91 68,519.91
Other Receivable - Insurance Baking Supplies 15,506.70 15,506.70
Merchandise Inventory 1,238.07 1,238.07
Consignment Inventory Prepaid Rent 2,114.55 2,114.55
Prepaid Insurance 2,114.55 2,114.55
Misc. Supplies 170.49 170.49
Baking Equipment 14,000.00 14,000.00
Accumulated Depreciation 1,606.44 1,606.44
Customer Deposit - Accounts Payable 20,262.11 20,262.11
Wages Payable 3,383.28 3,383.28
Interest Payable 211.46 211.46
Notes Payable 5,000.00 5,000.00
Common Stock 20,000.00 20,000.00
Beginning Retained earnings 50,144.84 50,144.84
Dividends 105,000.00 105,000.00
Bakery Sales 327,322.55 327,322.55
Merchandise Sales 1,205.64 1,205.64
Cost of Goods Sold - Baked 105,834.29 105,834.29
Cost of Goods Sold - Merchandise 859.77 859.77
Rent Expense 24,549.19 24,549.19
Wages Expense 10,670.72 10,670.72
Misc. Supplies Expense 3,000.46 3,000.46
Business License Expense 2,045.77 2,045.77
Misc. Expense 1,363.84 1,363.84
Depreciation Expense 677.86 677.86
Insurance Expense 1,091.08 1,091.08
Advertising Expense 1,549.74 1,549.74
Interest Expense 818.31 818.31
Telephone Expense 490.98 490.98
Gain/Loss on disposal of equipment 429,136.32 429,136.32 - - 429,136.32 429,136.32
b) The adjustments are made in the Adjusting entries column and referenced accordingly, while the effect is reflected in the adjusted trial balance column.
What other components of security management can be adapted for use in the security management model
Answer:
firewall
Explanation:
Security management model is a term often used in Information Technology (IT) industry that describes the generic steps of what to be done by an organization to ensure a secure environment.
Therefore, a component that could be adapted for use in the security management model is a FIREWALL, which is defined as a kind of network security system that functions as a barrier or guard to trusted internet network, against the incoming and outgoing untrusted external network, like local area network (LAN) and the Internet, which is based on laid down rules dsigned by the IT experts of the organization.
The transactions of Spade Company appear below.
A. Kacy Spade, owner, invested $100,750 cash in the company.
B. The company purchased $10,050 of office equipment on credit.
C. The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction b.
D. The company billed a customer $2,700 as fees for services provided.
E. The company paid $1,225 cash for the monthly rent.
F. The company collected $1,125 cash as partial payment for the account receivable created in transaction.
Required:
1. Prepare general journal entries to record the transactions above for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; K. Spade, Capital; K. Spade, Withdrawals; Fees Earned; and Rent Expense. Use the letters beside each transaction to identify entries.
2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment.
Answer:
Required 1 : General journal entries
A.
Cash $100,750 (debit)
Capital ; K. Spade $100,750 (credit)
B.
Office Equipment $10,050 (debit)
Trade Payable $10,050 (credit)
C.
Trade Payable $10,050 (debit)
Cash $10,050 (credit)
D.
Trade Receivable $2,700 (debit)
Fees Earned $2,700 (credit)
E.
Rent Expense $1,225 (debit)
Cash $1,225 (credit)
F.
Cash $1,125 (debit)
Trade Receivable $1,125 (credit)
Required 2 : Posting Journal Entries to T - Accounts
Cash Account
Debit
Capital ; K. Spade $100,750
Trade Receivable $1,125
Totals $101,875
Credit
Trade Payable $10,050
Rent Expense $1,225
Balance c/d $90,600
Totals $101,875
Capital Account
Debit
Balance c/d $100,750
Totals $100,750
Credit
Cash $100,750
Totals $100,750
Office Equipment Account
Debit
Trade Payable $10,050
Totals $10,050
Credit
Balance c/d $10,050
Totals $10,050
Trade Payable Account
Debit
Cash $10,050
Totals $10,050
Credit
Office Equipment $10,050
Totals $10,050
Trade Receivable Account
Debit
Fees Earned $2,700
Totals $2,700
Credit
Cash $1,125
Balance c/d $1,575
Totals $2,700
Rent Expense Account
Debit
Cash $1,225
Totals $1,225
Credit
Profit and Loss Account $1,225
Totals $1,225
Fees Earned Account
Debit
Trading Account $2,700
Totals $2,700
Credit
Trade Receivable $2,700
Totals $2,700
Explanation:
All transaction are first record in the journal. Be careful to use the account titles provided by the question.
The Posting to general account is the second stage in accounting. Here account balances to be transferred into the trial balance are established.
on january 1 year 1 abc merchandising company was started the company experienced the following events during the first year of operations started the business by the issue common stock for 1000 cash purchased 410 inventory on account how much revenue will abc merchandisng company report
Answer: $390
Explanation:
Revenue for a merchandising business is realized when the business sells some of its goods to customers. This can either be in cash or on account which would mean that the customer did not pay cash but now owes them.
The business sold merchandise costing $350 for $390 on account so this is the amount that they will recognize as revenue.
A worker sets up to begin a painting job. He lays down a drop cloth and makes sure that the floor is even so that the ladder is stable. The worker also makes sure that the area around his painting zone is free of clutter or objects lying on the ground. He then stands with both feet on the top step of the ladder and starts to paint. What does the worker do incorrectly?
Answer:
You should never use the top of a ladder as a step. The employer should correct the worker’s behavior and ensure he knows the proper way to use a ladder.
Explanation:
He is standing at the top. He is not suppose to and OSHA does not approve this.
The following is a summary of information presented on the financial statements of a company on December 31, 2019. Account 2019 2018 Net Sales Revenue Cost of Goods Sold Gross Profit Selling Expenses Net Income Before Income Tax Expense Income Tax Expense Net Income With respect to net income, a horizontal analysis reveals ________. (Round your answer to two decimal places.)
Answer:
Increase in net income of 145.45%
Explanation:
Calculation for what the horizontal analysis reveals with respect to net income
Since we have $54,000 in 2019 and $22,000 in 2018 this means that we are going to calculate for what the Horizontal analysis reveal using this formula
Horizontal analysis = Net income 2019 -Net income 2018/Net income 2018
Let plug in the formula
Horizontal analysis=$54,000-$22,000/$22,000
Horizontal analysis =$32,000/$22,000
Horizontal analysis =1.4545×100
Horizontal analysis =145.45% Increase
Therefore what the horizontal analysis reveals with respect to net income will be an Increase in net income of 145.45%
Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be $180,000, received two years from today. Subsequent annual cash flows will grow at 4 percent in perpetuity. What is the value today of the technology if the discount rate is 11 percent
Answer:
the present value for today is $2,316,602
Explanation:
The computation of the technology value today is shown below:
Present value of the technology is
= (First annual cash flow arisen from the technology) ÷ ( discount rate - growth rate) ÷ (1 + discount rate)
= ($180,000) ÷ (11% - 4%) ÷ (1 + 0.11)
= $2,316,602
Hence, the present value for today is $2,316,602
Part P40 is a part used in the production of air conditioners at Jackson Corporation. The following costs and data relate to the production of Part P40: Number of parts produced annually Fixed costs Variable costs Total cost to produce Jackson Corporation can purchase the part from an outside supplier for per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. If Jackson Corporation makes the part, how much will its operating income be?
Question
Part P40 is a part used in the production of air conditioners at Jackson Corporation. The following costs and data relate to the production of Part P40:
Number of parts produced annually 26,000
Fixed cost $43,000
Variable cost 70,000
Total cost to produce 113,000
Jackson Corporation can purchase the part from an outside supplier for $4.62 per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. If Jackson Corporation makes the part, how much will its operating income be?
Answer:
Change in operating income= $28,620
Explanation:
$
Total variable cost of making 70,000
Total cost of external purchase ($4.62×26,000) 120,120
Extra variable cost from external purchase 50,120
less Savings in fixed overheads(50%×43,000) ( 21,500)
Change in operating income 28,620
Note that the the balance of the fixed cost (50% of $43,000= 21500) were not included because they not relevant for the decision. They would be incurred either way.
Change in operating income= $28,620
g Our company reported the following financial numbers for one of its divisions for the year; average total assets of $5,800,000; sales of $5,375,000; cost of goods sold of $3,225,000; and operating expenses of $1,147,000. Assume a target income of 15% of average invested assets. Compute residual income for the division:
Answer:
Residual income = $133,000
Explanation:
Sales $5,375,000
Less: COGS $3,225,000
Gross profit $2,150,000
Less: Operating expense $1,147,000
Net income $1,003,000
Residual income = Net income - (Average operating assets * return)
Residual income = $1,003,000 - (5,800,000 * 15%)
Residual income = $1,003,000 - $870,000
Residual income = $133,000
The most efficient way to ensure that producers are responsible for products is through
Answer:
labeling
Explanation: