Answer:
Cash book Reconciled balance: $1,539.7
Kameron's bank balance Reconciled balance: $1,539.7
Explanation:
Kameron Gibson’s bank reconciliation
Kameron's checkbook balance: $259.60
Add Direct deposit: $1,320.30
Balance $1,579.9
Less: Teller fee: $17.50
Service charges: $22.70
Total deduct: $40.2
Reconciled balance: $1,539.7
Kameron's bank balance: $954.35
Add Deposit in transit: $721.40
Balance $1,675.75
Less :Outstanding checks (total)
($116.90+$19.15) $136.05
Reconciled balance: $1,539.7
William has an A.A. in general studies, but he does not know what career he wants to pursue. He decides to get a job for a year before going back to school. He wants a job near home in an office. He enjoys collaborating with other employees. William places a lot of value on freedom of thought and action at work. He needs about $50,000 per year.
William interviews at a company as an entry level sales person. He learns that it takes about 15 minutes to drive to the office. His job would be to work in a cubicle on a phone talking to potential clients from a script. The job pays about $50,000 per year with the possibility for performance-based bonuses.
Which factor makes this job a poor fit for William?
a. The company is in a bad location.
b. He wants more freedom in how he makes sales.
c. He is opposed to sales work.
d. The job does not pay enough money.
Answer:
b. He wants more freedom in how he makes sales.
Explanation:
The factor that makes this job an inappropriate fit for William corresponds to the lack of freedom in the way he makes sales, as all the other requirements that Willian wants for the job are met, such as the possibility that his office is only 15 minutes away from his office. home and also the $ 50,000 annual income he wants to raise.
However, in the announcement of the issue, a little bit is said about Willian's personality, who likes to collaborate with other employees and who values freedom of thought and action at work.
So the working conditions offered by the company can be an impediment for Willian to accept the job offer, since his job would be to work in a cubicle on a phone talking to potential clients from a script, and this could conflict with his professional profile, which needs more freedom to be able to express itself and reach its maximum efficiency.
It is concluded that this question shows the importance of an individual looking for a job in a company that identifies with the culture and organizational values, as well as the importance of companies selecting candidates with the most appropriate profile for the company, for that the work develops the capacities and skills of the employee, in order to make the work more motivating and productive.
You have a $5,000 medical bill and health insurance with a $500 deductible. You also have a 80/20 co-insurance, meaning the insurance pays 80% and the insured pays 20%. What is your total out-of-pocket expense for the original $5,000 bill?
Answer:
$1,400
Explanation:
Out-of-pocket expense refers to the payment you have to make for medical attention costs that are not reimbursed by your insurance like deductibles and coinsurance. In this case, you have to pay a $500 deductible and you are also responsible for the 20% of $4,500 that is the remaining amount as the insurance will cover the 80%. The total out of the pocket expense would be equal to the sum of the deductible plus the 20% of the reamining amount:
Out-of-pocket expense= 500+(4,500*20%)
Out-of-pocket expense= 500+900
Out-of-pocket expense= 1,400
According to this, your total out-of-pocket expense for the original $5,000 bill is $1,400.
Answer:
$1,500
Explanation:
Bolster Foods’ (BF) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. The yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. The balance sheet also shows that the company has 10 million shares of stock, and the stock has a book value per share of $5.00. The current stock price is $20.00 per share, and stockholders' required rate of return, rs, is 12.25%. The company recently decided that its target capital structure should have 35% debt, with the balance being common equity. The tax rate is 40%. Calculate WACCs based on book, market, and target capital structures. What is the sum of these three WACCs?
Answer:
Sum of these three WACCs = 30.77%
Explanation:
As per the data given in the question,
We need to do following calculations which are shown below:
Cost of debt =Yield to maturity × (1 - tax rate)
=8% × (1 - 0.40)
= 4.8%
And, the required rate of return is 12.25%
To calculate Book value :
Total value = $25 million +$10 million × $5.00
= $75 million
WACC = (Debt ÷ total value ) × cost of debt + (Equity total value ÷ total value ) × cost of debt
= 25 ÷ 75 × 4.8% + 50 ÷ 75 × 12.25%
= 9.77%
To calculate Market value :
Total value = $27 million + 10 million × $20.00
= $227 million
WACC = 27 ÷ 227 × 4.8% + 200 ÷ 227 × 12.25%
= 11.36%
Now Target capital structure :
Weight of debt = 0.35
Weight of equity = 1 - 0.35 = 0.65
WACC = 0.35 × 4.8% + 0.65 × 12.25%
= 9.64%
Sum of these three WACCs
= 9.77% + 11.36% + 9.64%
= 30.77%
The sum of these three WACCs is 30.77%.
Based on the information given, the book value will be calculated as:
= $25 million + ($10 million × $5.00)
= $25 million + $50 million
= $75 million
The first WACC will be:
= (25 / 75 × 4.8%) + (50/ 75 × 12.25%)
= 9.77%
The second WACC will be:
= (27 / 227 × 4.8%) +( 200 / 227 × 12.25%)
= 11.36%
The third WACC will be:
= (0.35 × 4.8%) + (0.65 × 12.25%)
= 9.64%
Therefore, the sum of these three WACCs will be:
= 9.77% + 11.36% + 9.64% = 30.77%
In conclusion, the correct option is 30.77%.
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You are considering purchasing a warehouse. The cost to purchase the warehouse is $491,000. Renting the equivalent space costs $19,400 per year.
Required:
1. If the annual interest rate is 6.5%, at what rate must rental cost increase each year to make the cost of renting comparable to purchasing? Assume that the rent will be paid at the end of each year.
Answer:
2.55%
Explanation:
Let us think of the rental cost as a growing perpetuity. Therefore Using the formula for the present value of growing perpetuity, we want to find the growth rate g so that:
$491,000=$19,400/6.5%-g
Or
Equivalent 6.5% -$19,400/$491,000
Hence:
6.5% -3.95%
=2.55%
Therefore the rental costs must grow at a rate of 2.55% per year for the cost of renting to be comparable to the cost of purchasing the warehouse.
Bob Areebob is a recognized French horn player. Bob has played as a freelance musician for several major symphonies. Last year Bob went through bankruptcy and in order to pay his rent for a couple of months took out loans from a small savings institution - Avarice Bank - and pledged his french horn as collateral. He was unable to make the first payment on the loan so the bank was getting ready to take the french horn for non-payment. Bob approached the director of the Gilroy Philarmonic International Symphony - Joe Dogooder - for help - asking him to guarantee payment so he does not lose his french horn. Joe agreed to guarantee the payment - partially because Bob is scheduled as the featured performer at the Classic Polka Festival in Gilroy which Joe manages. Joe called Avarice Bank and said if Bob could not pay, he would, and Avarice accepted his guaranty by phone. Bob played for the Polka Festival; it was a big hit and very successful, but immediately after, left town with Sally Swansong, the well-known international Polka singer/dancer, and their whereabouts are unknown. Avarice has contacted Joe and indicated they have not collected from Bob and they expect him to pay the debt. Joe told Avarice they did not have anything in writing from him (though there are witnesses who heard Joe guarantee payment) and he believes he will not be liable for Bob's debt. Avarice has indicated it will file suit for payment against Joe. Discuss both sides of this case, indicating who should prevail and why. Use the Issue: what is the legal issue/dispute? Decision: who should prevail? Support: support for your decision.
ANSWER:
Issue: Oral agreement; without proper documentation of what was agreed upon.
Decision: Avarice will loss the case, and Joe will be set free by the court.
Support: Because Avarice does not have any valid prove to show that Joe accepted to repay Bob loans in case he fails to pay up, the court will assume Avarice is forging a claim on Joe. A withiness only comes to court to testify the validity of a prove. Because Avarice does not have any prove, the witness is as good as nothing.
The court will dismiss the case because Avarice became unethical by granting the request made by Joe without any signed agreement or recorded call conversation.
Edith Engineer travels from city to city to conduct her business. Every other year she buys a used car for about $12,000. The dealer allows about $8000 as a trade-in allowance, with the result that the saleswoman spends $4000 every other year for a car. Edith keeps accurate records, which show that all other expenses for her car amount to $0.223 per mile for each mile she drives. Edith's employer has two plans by which salespeople are reimbursed for their car. Method
A. She will receive all of her operating expenses, and in addition will receive $2000 each year for the decline in value of the automobile. Method
B. She will receive $0.32 per mile but no operating expenses and no depreciation allowance. If Edith travels 18,000 miles per year, which method of computation gives her the larger reimbursement
Answer:
Method A
Explanation:
According to the scenario, computation of the given data are as follow:-
Method A - Actual expenses
Total Reimbursement Amount is
= Car Decline Value + Total Miles of Travel × Per Mile Expenses
= $2,000 + 18,000 miles × $0.223 per mile
= $2,000 + $4,014
= $6,014
Method B - standard Mileage Rate
Total Reimbursement Amount is
= Total Miles of Travel × Per Mile Receive Amount
=18,000 miles × $0.32 per mile
= $5,760
According to the analysis, Plan (A) gives her the larger reimbursement.
Answer:
Answer:
Method A
Explanation:
According to the scenario, computation of the given data are as follow:-
Method A - Actual expenses
Total Reimbursement Amount is
= Car Decline Value + Total Miles of Travel × Per Mile Expenses
= $2,000 + 18,000 miles × $0.223 per mile
= $2,000 + $4,014
= $6,014
Method B - standard Mileage Rate
Total Reimbursement Amount is
= Total Miles of Travel × Per Mile Receive Amount
=18,000 miles × $0.32 per mile
= $5,760
According to the analysis, Plan (A) gives her the larger reimbursement.
Explanation:
Suppose that Greece and Switzerland both produce oil and olives. Greece's opportunity cost of producing a crate of olives is 5 barrels of oil while Switzerland's opportunity cost of producing a crate of olives is 10 barrels of oil.
By comparing the opportunity cost of producing olives in the two countries, you can tell that _______ has a comparative advantage in the production of olives and ________ has a comparative advantage in the production of oil.
Suppose that Greece and Switzerland consider trading olives and oil with each other. Greece can gain from specialization and trade as long as it receives more than ________ of oil for each crate of olives it exports to Switzerland. Similarly, Switzerland can gain from trade as long as it receives more than ________ of olives for each barrel of oil it exports to Greece. Based on your answers to the previous question, which of the following terms of trade (that is, price of olives in terms of oil) would allow both Switzerland and Greece to gain from trade?
a. 2 barrels of oil per crate of olives
b. 12 barrels of oil per crate of olives
c. 9 barrels of oil per crate of olives
d. 1 barrel of oil per crate of olives
Answer:
1) Greece
2) Switzerland
3) 5 barrels of oil
3) 1/10 crates of olive
4) B. 12 barrels of oil per crate.
Explanation:
A) Greece forgoes a lesser amount of oil barrels to make the same amount of olive as Switzerland, so it has a comparative advantage in making olive.
B) Switzerland will save more oil if it doesn't produce olives than Greece would save, so it has a comparative advantage in producing barrels of oil.
C) since Greece produces one crate of olive with 5 barrels of oil, it will only gain in any trade trading more than 5 barrels of oil for every crates of olive.
D) since Switzerland produces 1 crate of olive with 10 barrels of oil, it will only gain in a trade trading 1/10 crates of olive for one barrel of oil.
E) only option B will satisfy both countries.
Maxim manufactures a cat food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variable production costs per bag are $1.80 and total fixed costs are $10,000. The cat food can be sold as it is for $9.00 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,000 cost. The additional processing will yield 10,000 bags of Premium Green and 3,000 bags of Green Deluxe, which can be sold for $8 and $6 per bag, respectively. If Green Health is processed further into Premium Green and Green Deluxe, the total gross profit would be:
Answer:
$68,000
Explanation:
The formula to compute the gross profit is shown below:
Gross profit = Sales revenue - cost of goods sold
where,
Sales revenue = Number of bags in premium green × selling price per unit + number of bags in green deluxe × selling price per unit
= 10,000 × $8 + 3,000 × $6
= $80,000 + $18,000
= $98,000
And, the cost of goods sold is
= variable cost of green health + total fixed cost + additional processing cost
= 10,000 × $1.8 + $10,000 + $2,000
= $18,000 + $12,000
= $30,000
So, the gross profit is
= $98,000 - $30,000
= $68,000
During its first month of operations, Neptune Company (1) borrowed $200,000 from a bank, and then (2) purchased an equipment costing $80,000 by paying cash of $40,000 and signing a long term note for the remaining amount. During the month, the company also (3) purchased inventory for $60,000 on credit, (4) performed services for clients for $120,000 on account, (5) paid $30,000 cash for accounts payable, and (6) paid $60,000 cash for utilities. What is the amount of total assets at the end of the month?
Answer:
$330,000
Explanation:
the journal entries would be:
Dr Cash 200,000
Cr Notes payable - bank 200,000
Dr Equipment 80,000
Cr Cash 40,000
Cr Notes payable 40,000
Dr Merchandie inventory 60,000
Cr Accounts payable 60,000
Dr Accounts receivable 120,000
Cr Service revenue 120,000
Dr Accounts payable 30,000
Cr Cash 30,000
Dr Utilities expense 60,000
Cr Cash 60,000
Assets:
Cash = 200,000 - 40,000 - 60,000 - 30,000 = $70,000Equipment = $80,000Merchandise inventory = $60,000Accounts receivable =$120,000total = $330,000Answer: $330,000
Explanation:
(1) borrowed $200,000 from a bank, and then
(2) purchased an equipment costing $80,000 by paying cash of $40,000 and signing a long term note for the remaining amount.
(3) purchased inventory for $60,000 on credit, (4) performed services for clients for $120,000 on account,
(5) paid $30,000 cash for accounts payable, and (6) paid $60,000 cash for utilities. What is the amount of total assets at the end of the month?
Kindly check attached picture for detailed explanation
The Refining Department of Crystal Cane Sugar, Inc. had 69 comma 000 tons of sugar to account for in December. Of the 69 comma 000 tons, 55 comma 000 tons were completed and transferred to the Boiling Department, and the remaining 14 comma 000 tons were 60% complete. The materials required for production are added at the beginning of the process. Conversion costs are added equally throughout the refining process. The weightedminusaverage method is used. Calculate the total equivalent units of production for conversion co
Answer:
63,400
Explanation:
As per the given question the solution of total equivalent units of production for conversion cost is provided below:-
To reach the equivalent units of production we will find out the units transferred and units of work in progress
Units transferred = Completed and transferred tons × Complete percentage
= 55,000 × 100%
= 55,000
Units of ending work in progress = Remaining tons × Given percentage
= 14,000 × 60%
= 8,400
Equivalent units of production = Units transferred + Units of ending work in progress
= 55,000 + 8,400
= 63,400
A number of costs are listed below that may be relevant in decisions faced by the management of Svahn, AB, a Swedish manufacturer of sailing yachts: Requirement 1 relates to Case 1, and requirement 2 relates to Case 2. Consider the two cases independently. 1. The company chronically has no idle capacity and the old Model B100 machine is the company’s constraint. Management is considering purchasing a Model B300 machine to use in addition to the company’s present Model B100 machine. The old Model B100 machine will continue to be used to capacity as before, with the new Model B300 machine being used to expand production. This will increase the company’s production and sales. The increase in volume will be large enough to require increases in fixed selling expenses and in general administrative overhead, but not in the fixed manufacturing overhead. 2. The old Model B100 machine is not the company’s constraint, but management is considering replacing it with a new Model B300 machine because of the potential savings in direct materials with the new machine. The Model B100 machine would be sold. This change will have no effect on production or sales, other than some savings in direct materials costs due to less waste.
Required: Indicate whether each item is relevant or not relevant in the following situations.
Item Case 1 Case 2
a. Sales revenue
b. Direct materials
c. Direct labor
d. Variabl
e. Depreciation-Model B100 machine
f. Book value-Model B100 machine
g. Disposal value-Model B100 machine
h. Market value-Model B300 machine (cost)
i. Fixed manufacturing overhead (general) .
j. Variable selling expense
k. Fixed selling expense
I. General administrative overhead le manufacturing overhead
Answer:
Explanation:
Case A Case B
a Sales revenue Relevant Not relevant
b Direct Materials Relevant Relevant
c Direct labor Relevant Not relevant
d Variable manufacturing overhead Relevant Not relevant
e Depreciation - Model B100 Machine Not relevant Not relevant
f Book value - Model B100 Machine Not relevant Not relevant
g Disposal Value - Model B100 Machine Not relevant Relevant
h Market Value - Model B300 Machine (Cost) Relevant Relevant
i Fixed Manufacturing overhead(general) Not relevant Not relevant
j Variable selling expense Relevant Not relevant
k Fixed selling expense Relevant Not relevant
l General administrative overhead Relevant Not relevant
Arena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead.The standard cost card for the company’s only product is as follows:Inputs Standard Quantityor Hours Standard Price or Rate Standard CostDirect materials 1.2 pounds $ 5.50 per pound $ 6.60Direct labor 0.90 hours $ 21.00 per hour 18.90Fixed manufacturing overhead 0.90 hours $ 4.50 per hour 4.05Total standard cost per unit $ 29.55The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $81,000 and budgeted activity of 18,000 hours.During the year, the company completed the following transactions:Purchased 35,400 pounds of raw material at a price of $4.60 per pound.Used 32,180 pounds of the raw material to produce 26,900 units of work in process.Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 23,810 hours at an average cost of $20.60 per hour.Applied fixed overhead to the 26,900 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $67,800. Of this total, $3,800 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $64,000 related to depreciation of manufacturing equipment.Completed and transferred 26,900 units from work in process to finished goods.Sold (for cash) 27,100 units to customers at a price of $36.60 per unit.Transferred the standard cost associated with the 27,100 units sold from finished goods to cost of goods sold.Paid $149,000 of selling and administrative expenses.Closed all standard cost variances to cost of goods sold.The company calculated the following variances for the year:Materials price variance $ 31,860 FMaterials quantity variance $ 550 FLabor rate variance $ 9,524 FLabor efficiency variance $ 8,400 FFixed manufacturing overhead budget variance $ 13,200 FFixed manufacturing overhead volume variance $ 27,945 FTo answer the following questions, you will need to record transactions a through i in the worksheet below. This worksheet is similar to the worksheets in your text except that it has been split into two parts to fit on the page. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.Cash Raw Materials Work in Process Finished Goods PP&E (net) = Materials Price Variance Materials Quantity Variance Labor Rate Variance Labor Efficiency Variance FOH Budget Variance FOH Volume Variance Retained Earnings 1/1 $1,200,000 $29,700 $0 $70,920 $505,400 = $0 $0 $0 $0 $0 $0 $1,806,020 a. = b. = c. = d. = e. = f. = g. = h. = i. = 12/31 = The ending balance in the PP&E (net) account will be closest to:A. $505,400B. $441,400C. $396,455D. $501,600
Answer: B.) $441,400
Explanation:
The ending balance in the Property, Plant and Equipment (net) account will be closest to:
The PP&E (net) is the Property, Plant and Equipment net of depreciation.
The sum of the capital balance and capital expenditure during the year, Less the Depreciation during the year.
Opening balance + Capital expenditure during the year - depreciation during the year = $(505,400 + 0 - 64,000) = $441,400
Below are transactions for Wolverine Company during 2021.
a. On December 1, 2021, Wolverine receives $2,100 cash from a company that is renting office space from Wolverine. The payment, representing rent for December and January, is credited to Deferred Revenue.
b. Wolverine purchases a one-year property insurance policy on July 1, 2021, for $10,920. The payment is debited to Prepaid Insurance for the entire amount.
c. Employee salaries of $1,100 for the month of December will be paid in early January 2022.
d. On November 1, 2021, the company borrows $5,500 from a bank. The loan requires principal and interest at 12% to be paid on October 30, 2022.
e. Office supplies at the beginning of 2021 total $810. On August 15, Wolverine purchases an additional $1,500 of office supplies, debiting the Supplies account. By the end of the year, $310 of office supplies remains.
Required:
Record the necessary adjusting entries at December 31, 2018, for Wolverine Company. You do not need to record transactions made during the year. Assume that no financial statements were prepared during the year and no adjusting entries were recorded.
Answer:
Wolverine Company
Journal Adjusting Entries:
a) Debit Deferred Revenue $1,050
Credit Rent Received $1,050
To adjust rent received for December.
b) Debit Insurance Expense $5,460
Credit Prepaid Insurance $5,460
To adjust insurance expense for the year.
c) Debit Wages & Salaries $1,100
Credit Wages & Salaries Payable $1,100
To accrue salaries for the month of December.
d) Debit Interest on Loan Account $110
Credit Interest on Loan Payable $110
To accrue interest on loan for the year.
e) Debit Supplies Expense $2,000
Credit Supplies Account $2,000
To record supplies used during the year.
Explanation:
a) Adjusting entries are end of an account period's journal entries used to accrue income or expenses that occurred but are not accurately recorded or because they do not involve actual cash flows. Adjusting entries ensure that the accrual concept and the matching principle of generally accepted accounting principles are complied with.
b) Journal entries record transactions that occur on a daily basis or at the end of the accounting period. They show the accounts to be credited or debited in the Ledger.
In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were as follows.
Budget Actual
Indirect materials $14,000 $13,500
Indirect labor 19,000 19,500
Utilities 10,000 10,500
Supervision 4,000 4,000
All costs are controllable by the department manager.
Required:
1. Prepare a responsibility report for April for the cost center.
Answer and Explanation:
Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020
Budget Actual Difference
Indirect materials $14,000 $13,500 $500 Favorable
Indirect labor 19,000 19,500 500
Unfavourable
Utilities 10,000 10,500 500 Unfavourable
Supervision 4,000 4,000 0 Neither Favorable nor Unfavourable
Total 47,000 47,500 Unfavourable
Blue Spruce Corp. has had 4 years of net income. Due to this success, the market price of its 460,000 shares of $4 par value common stock has increased from $10 per share to $50. During this period, paid-in capital remained the same at $4,230,000. Retained earnings increased from $1,770,000 to $11,200,000. President E. Rife is considering either a 13% stock dividend or a 2-for-1 stock split. He asks you to show the before-and-after effects of each option on retained earnings.
Required:
1. Stock dividend - retained earnings $ ________
2. 2-for-1 stock split - retained earnings $ ________
Answer and Explanation:
The computation of Stock dividend - retained earnings is shown below:-
Shares Issued as Stock Dividend = Market price shares × Stock dividend percentage
= 460,000 × 13%
= 59,800
1. Stock Dividend = Shares Issued as Stock Dividend × Increased share
= 59,800 × $50
= $2,990,000
Based on the above calculation, the amount after stock dividend is
= $11,200,000 - $2,990,000
= $8,210,000
2. And, After the stock splits the retained earning balance remain the same as it was before the split - $11,200,000
Total Stockholders' Equity does not change - After Stock Split
Scenario 13-3 Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $25 an hour for her home-organization services. One spring day, Ziva spends 10 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of lettuce. Refer to Scenario 13-3.
Ziva's economic profit from farming equals
a. $130.
b. −$130.
c. −$80.
d. $170.
Answer:
c. −$80.
Explanation:
The computation of the economic profit is shown below:
Economic profit = Total revenue - Cost of seeds - Earning foregone
where,
Total sales revenue is $300
Cost of seeds is $130
And, the earning foregone is
= 10 hours × $25
= $250
So, the economic profit is
= $300 - $130 - $250
= -$80
We simply applied the above formula to determine the economic profit
Scott Company had sales of $12,350,000 and related cost of goods sold of $7,500,000 for the year ending December 31, 20Y8. Scott provides customers a refund for any returned or damaged merchandise. Scott Company estimates that customers will request refunds for 0.8% of sales and estimates that merchandise costing $48,000 will be returned in 20Y9. Journalize the adjusting entries on December 31, 20Y8, to record the expected customer returns. If an amount box does not require an entry, leave it blank.
Answer:
Entries to record the expected customer returns :
J1
Trade Receivables $12,350,000 (debit)
Revenue $2,470,000 (credit)
Refund Liability $9,880,000 (credit)
Being Recognition of Revenue from Sale and Refund Liability.
J3
Right of Recovery Asset $48,000 (debit)
Cost of Sales $48,000 (credit)
Being Reduction of the Cost of Sales with Right of Return Items
Explanation:
The full Entries to be made on the Sale transaction are as follows :
J1
Trade Receivables $12,350,000 (debit)
Revenue $2,470,000 (credit)
Refund Liability $9,880,000 (credit)
Being Recognition of Revenue from Sale and Refund Liability.
J2
Cost of Sales $7,500,000 (debit)
Inventory $7,500,000 (credit)
Being Recognition of Cost associated with the sale
J3
Right of Recovery Asset $48,000 (debit)
Cost of Sales $48,000 (credit)
Being Reduction of the Cost of Sales with Right of Return Items
A food worker reheats fried rice
Answer:
d
Explanation:
Two new variables, the market value of the firm (a measure of firm size, in millions of dollars) and stock return (a measure of firm performance, in percentage points), are added to the regression: ModifyingAbove ln (Earnings )with caret equals 3.86 minus 0.28 Female plus 0.37 ln (MarketValue )plus 0.004 Return(Earnings)=3.86−0.28Female+0.37ln(MarketValue)+0.004Return, (0.030.03) (0.040.04) (0.0040.004) (0.0030.003) n = 46,670, Upper R overbar squared R2 = 0.345. If MarketValue increases by 4.644.64%, what is the increase in earnings
Answer:
Explanation:
If Market Value increases by 4.64%, then earnings increase by:
㏑(Earnings) = 0.37 × ㏑(4.64)
= 0.37 × 1.534714
Earnings = Exp (0.56784418)
= 1.76%
If Market Value increases by 4.64%, earnings increase by 1.76%
Walters manufactures a specialty food product that can currently be sold for $21.20 per unit and has 19,200 units on hand. Alternatively, it can be further processed at a cost of $11,200 and converted into 11,200 units of Deluxe and 5,200 units of Super. The selling price of Deluxe and Super are $31.80 and $19.20, respectively. The incremental net income of processing further would be: Multiple Choice $37,760. $48,960. $17,200. $43,200. $11,200.
Answer:
$37,760
Explanation:
The income for the current operation, without further processing, is given by:
[tex]I_1 = 19,200*\$21.20\\I_1=\$407,040[/tex]
If the product is further processed at a cost of $11,200, the company would sell 11,200 units at $31,80 each and 5,200 at $19.20 each, for an income of:
[tex]I_2= 11,200*\$31.80+5,200*\$19.20-\$11,200\\I_2=\$444,800[/tex]
Therefore, the incremental net income of processing further would be:
[tex]\Delta I=I_2-I_1=\$444,800-\$407,040\\\Delta I=\$37,760[/tex]
The incremental net income would be $37,760.
who profits incentives
Answer:
An incentive is a reason or reward for doing a particular task and is central to understanding economics. If there is not a good reason to make a product or provide a service, then no one will make that product or provide that service. One major incentive in any action is the opportunity for a reward.
9. An expenditures incurred on factors of production
A, cost
B, input
C, fixed input
D, variable input
Answer:
A) cost
Explanation:
In economics, the cost of production is defined as the expenditures incurred to obtain the factors of production.
Mar. 29 Received a $30,000, 60-day, 5% note dated March 29 from Karie Platt on account.
Apr. 30. Received a $24,000, 60-day, 8% note dated April 30 from Jon Kelly on account.
May 28. The note dated March 29 from Karie Platt is dishonored, and the customer’s account is charged for the note, including interest.
June 29. The note dated April 30 from Jon Kelly is dishonored, and the customer’s account is charged for the note, including interest.
Aug. 26. Cash is received for the amount due on the dishonored note dated March 29 plus interest for 90 days at 8% on the total amount debited to Karie Platt on May 28.
Oct. 22. Wrote off against the allowance account the amount charged to Jon Kelly on June 29 for the dishonored note dated April 30.
Journalize the above transactions in the accounts of Missouri Gaming Co., which operates a riverboat casino
Answer:
Explanation:
Date Description Post. Ref. Debit Credit Assets Liabilities Equity
1 Mar.29 Notes receivable 30000 30000
2 Accounts receivable-Karie Platt 30000 -30000
3 Apr.30 Notes receivable 24000 24000
4 Accounts receivable-Jon Kelly 24000 -24000
5 May.28 Accounts receivable-Karie Platt 30250 30250
6 Notes receivable 30000 -30000
7 Income Summary ($30000 x 5% x 60/360) 250 250
8 Jun.29 Accounts receivable-Jon Kelly 24320 24320
9 Notes receivable 24000 -24000
10 Income Summary ($24000 x 8% x 60/360) 320 320
11 Aug.26 Cash 30855 30855
12 Accounts receivable-Karie Platt 30250 -30250
13 Income Summary ($30250 x 8% x 90/360) 605 605
14 Oct.22 Allowance for Doubtful Accounts 24320 24320
15 Accounts receivable-Jon Kelly 24320 -24320
163745 163745 1175 0 1175
Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $ 125 for each connector and fixed costs of $ 4 comma 500 per month. ExpertNet's static budget predicted production and sales of 100 connectors in August, but the company actually produced and sold only 77 connectors at a total cost of $ 26 comma 000. ExpertNet's sales volume variance for total costs is
Answer:
Volume variance $2,875 favorable
Explanation:
The volume variance is the difference between the standard cost of the budgeted production units and the actual cost of the actual production units.
$
Standard cost of 100 units:
= 4,500 + (100× 125) 17,000
Actual cost for 77 units ( 4,500 + (77× 125) = 14,125
Volume variance 2,875 favorable
The office product division in Hyacinth Company reported $11,250 net operating income with $75,000 average operating assets this year. The office product division has a new investment opportunity that would increase net operating income by $4,375 with $35,000 additional investment.
1. Which of the following statements is TRUE given that the company's minimum required rate of return is 10%?
Multiple Choice:
O Regardless of whether the division is evaluated on the basis of ROI or Residual income, the manager will not accept the new investment because it is bad for the company.
O If the division is evaluated on the basis of Residual income, the manager of the office product division would not accept the new investment because it is bad for the company.
O If the division is evaluated on the basis of Residual income, the manager of the office product division would accept the new investment because it is good for the division.
O If the division is evaluated on the basis of ROI, the manager of the office product division would accept the new investment because it is good for the division.
O If the division is evaluated on the basis of ROI, the manager of the office product division would not accept the new investment because it is bad for the company.
Answer:
The true statement is that If the division is evaluated on the basis of Residual Income, the manager of the office product division would accept the new investment because it is good for the division
Explanation:
In order to find out which of the following statements is TRUE given that the company's minimum required rate of return is 10%, we would have to calculate the existing residual income and the post investment residual income as follows:
Existing Post Investment
Income $ 11,250 $15,625
Assets $75,000 $110,000
ROI 15% 14%
Charge on capital $ 7,500.0 $11,000.0
Residual Income $3,750.0 $4,625.0
Given that the Existing Residual Income is $3,750.0 and the Post Investment Residual Income is $4,625.0 If the division is evaluated on the basis of Residual Income, the manager of the office product division would accept the new investment because it is good for the division.
What’s businesses can I do online that cost very little to start?
Answer:
A face mask buisness.
Explanation:
You can buy face mask and sell them or sew them with a sewing machine as well. You could make a lot of money.
Some of Intel's financial statement data includes:
2015 2016
Total assets 105,000 125,000
Net income 10,000 11,000
Sales 95,000 100,000
Equity 30,000 32,000
Compute Intel's return on equity (ROE) for 2016.
Answer:
ROE 2016 = 34.375%
Explanation:
ROE or return on equity is a measure of the profitability of the business. It is calculated as a relation of profitability to the equity.
The Dupont equation is an expanded version of calculating the ROE. It is calculated using the Net Profit Margin, the Total assets turnover and the equity multiplier.
The formula for calculating ROE under this method,
ROE = Net Income / Sales * Sales / Total Assets * Total Assets / Equity
ROE (2016) = 11000 / 100000 * 100000 / 125000 * 125000 / 32000
ROE (2016) = 0.34375 or 34.375%
Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,800 client-visits, but its actual level of activity was 3,790 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Fixed element per month Variable element per client-visit Revenue - $ 36.40 Personnel expenses $ 30,500 $ 11.40 Medical supplies 1,700 6.80 Occupancy expenses 8,600 2.90 Administrative expenses 6,900 0.20 Total expenses $ 47,700 $ 21.30 Actual results for November: Revenue $ 138,146 Personnel expenses $ 73,672 Medical supplies $ 28,292 Occupancy expenses $ 19,101 Administrative expenses $ 7,427 The activity variance for personnel expenses in November would be closest to:
Answer:
$114 Favorable
Explanation:
For computation of activity variance for personnel expenses first we will find out the planning budget and flexible budget which is shown below:-
Planning Budget = Fixed element of personnel expenses + (Budgeted Client visit × Variable element per client visit of personnel expenses)
= $30,500 + (3,800 × $11.40)
= $30,500 + $43,320
= $73,820
Flexible Budget = Fixed element of personnel expenses + (Actual Client visit × Variable element per client visit of personnel expenses)
= $30,500 + (3,790 × $11.40)
= $30,500 + $43,206
= $73,706
Activity variance = Planning Budget - Flexible Budget
= $73,820 - $73,706
= $114 Favorable
The method by which consumers acquire products and services
Aquaguard manufactures three models of water purifiers in three separate plants at Taiwan. These plants serve the demand in Europe. All three models sell at a unit price of $100 and the holding cost is 5% of the selling price per month. The monthly demand for these models is normally distributed with the following parameters:
Model 1: Mean 1000, SD 300
Model 2: Mean 1000, SD 300
Model 3: Mean 1000, SD 300
The demand for Model 1 and Model 2 has a correlation coefficient of (-) 0.35, while that for Model 3 is independent of the other two models. The company wishes to make two of the models in one plant by using flexible technology.
Required:
a) Which two models should Aquaguard choose in order to minimize production variability in the new plant? (as measured by the coefficient of variation).
Answer:
Aquaguard may choose any of the two models to minimize the production variability in the new plant.
Explanation:
Model 1: Mean = 1000, Standard Deviation(SD) = 300
Model 2: Mean = 1000, SD = 300
Model 3: Mean = 1000, SD = 300
Coefficient of variation for model 1
C.V = ( SD ÷ Mean) × 100
= ( 300 ÷ 1000 ) × 100
= 30 %
Coefficient of variation for model 2
= ( 300 ÷ 1000 ) × 100
= 30 %
Coefficient of variation for model 3
= ( 300 ÷ 1000 ) × 100
= 30 %
We conclude that all the models have same effect .