Answer:
1. Current BEP is 16,150 units that increases to 21,200 units.
2. Current margin of safety is 19% that falls to 12%
Explanation:
1. Current break-even point = Fixed cost / contribution margin
Fixed cost = $387600
Contribution margin = Sales price - variable cost
= 60 - 36 = $24
Current BEP = 387600 / 24 = 16,150 units
BEP if Maryas ideas are used:
Fixed cost = 57600 + 387600 = $445,200
Contribution margin = 57 - 36 = $21
BEP = 445200 / 21 = 21,200 units
BEP increases to 21,200 units from 16,150 units in case Maryas ideas are used.
2. Current Margin of safety Ratio = Actual sales - BEP / Actual sales
= 20,000 - 16,150 / 20,000
= 3850/20000
= 0.1925 or 19%
Margin if safety if Maryas ideas used = 24000 - 21200 / 24000
= 2800/24000
= 0.1167 or 12%
Margin of safety falls to 12% from 19% if Maryas ideas are used.
3. Current income statement
Sales (20,000 * 60) $1,200,000
less: Variable expense $720,000
(20,000*36)
Contribution margin $480,000
less Fixed expense $387,600
Net income $92,400
Income statement after Maryas ideas
Sales (24,000 * 57) $1,368,000
less: Variable expense $864,000
(24,000*36)
Contribution margin $504,000
less Fixed expense $445,200
Net income $58,800
A firm began the construction of its new manufacturing facility in January of 20x2. The following expenditures were made on construction in that year: Jan. 1 $40,000 Mar. 1 120,000 Oct. 31 96,000 Debt outstanding the entire year: 6%, $60,000 construction loan 4%, $90,000 note payable not related to construction 6%, $90,000 note payable not related to construction Compute interest to be capitalized using the weighted average method.
a. $6,720
b. $12,600
c. $8,400
d. $8,190
Answer:
d. $8,190
Explanation:
Firstly, average accumulated expenditures is ;
= $40,000 + $120,000 ( 10/12) + $960,000 (2/12)
= $156,000
The rate
= ($3,600 + $3,600 + $5,400) / $240,000
= 0.0525
Therefore, Interest capitalized is
= (0.0525) × $156,000
= 8,190
The management of Idaho Corporation is considering the purchase of a new machine costing $430,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for Years 1 through 5 are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability of this investment: Year Income from Operations Net Cash Flow 1 $100,000 $180,000 2 40,000 120,000 3 20,000 100,000 4 10,000 90,000 5 10,000 90,000 The net present value for this investment is
Answer:
NPV $25,200
Explanation:
The computation of the net present value is shown below
Years Cash flow Discount PV
0 -$430,000 1 -$430,000
1 $180,000 0.909 $163,620
2 $120,000 0.826 $99,120
3 $100,000 0.751 $75,100
4 $90,000 0.683 $61,470
5 $90,000 0.621 $55,890
NPV $25,200
The basic economic problem is that consumers have too many products and services to choose from.
a. True
b. False
Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $108 Units in beginning inventory 0 Units produced 8,900 Units sold 8,500 Units in ending inventory 400 Variable costs per unit: Direct materials $ 17 Direct labor $ 59 Variable manufacturing overhead $ 5 Variable selling and administrative expense $ 9 Fixed costs: Fixed manufacturing overhead $133,500 Fixed selling and administrative expense $ 8,700 What is the net operating income for the month under absorption costing
Answer:
Net operating profit= 441,800
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
First, we need to calculate the unitary production cost:
Unitary production cost= 17 + 9 + 5 + (133,500/8,900)
unitary production cost= $46
Now, the income statement:
Sales= 8,500*108= 918,000
COGS= (391,000)
Gross profit= 527,000
Total selling and administrative expense= (8,700 + 9*8,500)= (85,200)
Net operating profit= 441,800
What is an example for empathy and being able to recover quickly from emotional experience?
Answer:
The answer is below
Explanation:
Given that Empathy is a personal experience or ability shown by individuals to understand and share the actual feelings of other individuals.
Examples of Empathy are:
Emotional, Cognitive, and Compassionate
Emotional Regulation is the "ability to recover quickly from the emotional experience." This is a form of emotional intelligence exercised by humans.
Robin is granted 1,500 shares of restricted stock from her employer when the stock is trading at a fair market value of $25 per share. She is anticipating significant appreciation and wishes to minimize her future tax burden. As a result, she makes a Section 83(b) election. Assuming she is in the 35% marginal income tax bracket, how much income tax that will be due on this transaction in the year of election
Answer: $13125
Explanation:
Firstly, we should note that in section 83(B), tax is being paid based on the stock's fair market value. Therefore, the income tax that will be due on this transaction in the year of election will be:
= Number of shares × Price × Tax rate
= 1500 × $25 × 35%
= 1500 × $25 × 0.35
= $13125
1. The federal government is considering selling tracts of federally owned land to private developers and using the revenues to provide aid to victims of an earthquake in a foreign country. How would this policy affect the levels of federal revenues, expenditures, and deficits under a cash accounting system
Answer:
The responses to this question can be defined as follows:
Explanation:
In a currency system, its current amount of the debt is influenced by the cash financial statements, and sales will rise by amount and revenue would be compensated by spending increases on foreign aid. The financial accounting system must realize that its government sold a well-established resource and increased the overall scarcity.
Its capital account weakness relates to an undistorted added money from the currency exchange that would offset a decrease throughout the estimate of the benefits of Congress and lead to an increase in the utilization of the shortfall quickly.
Olaf lives in the state of Minnesota. In 2020, a tornado hit the area and damaged his home and automobile. Applicable information is as follows:
Item Adjusted Basis FMV before FMV after Insurance Proceeds
Home $350,000 $500,000 $100,000 $280,000
Auto 60,000 40,000 10,000 20,000
Because of the extensive damage caused by the tornado, the President designated the area a Federal disaster area. Olaf and his wife, Anna, always file a joint return. Their 2019 tax return shows AGI of $180,000 and taxable income of $145,000. In 2020, their return shows AGI of $300,000 and taxable income (exclusive of the casualty loss deduction) of $225,000. Assume the taxpayers are in the 22% tax bracket in 2019 and the 24% tax bracket in 2020.
Determine the amount of Olaf and Anna's loss and the year in which they should take the loss.
Item
Amount of Loss Home $________
Auto_________
Total loss $__________
Less: statutory floor amount_________
Loss before statutory % of AGI $_________
Amount of loss on last year's return:
Loss $___________
Less: statutory % of AGI_________
Total loss $__________
Amount of loss on current year's return:
Loss $__________
Less: statutory % of AGI_________
Total loss $_________
Olaf and Anna should include the loss on the return, because the tax savings is greater.
Answer:
1. Amount of loss $ 70,000
Home
Auto $10,000
Total loss $80,000
Less - statutary floor amount $100
Loss before statutory % of AGI $79,900
Amount of loss on last year’s return:
Loss $79,900
Less: 10% of AGI 180000*10% $18,000
Total loss $61,900
Amount of loss on current year's return:
Loss $79,900
Less: 10% of AGI $300,000*10% $30,000
Total loss $49,900
2. Olaf and his wife Anna should include the loss on the PRIOR YEAR'S because the tax savings is $1,642 greater.
Explanation:
Calculation to Determine the amount of Olaf and Anna's loss and the year in which they should take the loss
Amount of loss $ 70,000
Home
($350,000-$280,000)
Auto $10,000
($40,000-$10,000=$30,000)
($30,000-$20,000)
Total loss $80,000
($70,000+$10,000)
Less - statutory floor amount $100
Loss before statutory % of AGI $79,900
($80,000-$100)
Amount of loss on last year’s return:
Loss $79,900
($80,000-$100)
Less: 10% of AGI $180,000*10% $18,000
(10%*$180,000)
Total loss $61,900
($79,900-$18,000)
Amount of loss on current year's return:
Loss $79,900
($80,000-$100)
Less: 10% of AGI $300,000*10% $30,000
(10%*$300,000)
Total loss $49,900
($79,900-$30,000)
2. Calculation to determine what Olaf and Anna should include the loss on the return, because the tax savings is greater.
Based on the information given in a situation where Olaf and his wife apply the loss to the prior year which means that rate of 22% will be use for the benefit of the loss
Taxable income = ($145,000 − $61,900)
Taxable income = $ 83,100
Calculation for when Loss is taken on the PRIOR year's return:
Tax savings=(22% × $61,900)
Tax savings= $ 13,618
In a situation where the loss is been applied to the current year which means that the rate of 24 % will be use for the benefit of the loss
Taxable income = ($225,000-$49,900)
Taxable income= $ 175,100
Calculation for the loss is taken on the CURRENT year's return:
Tax savings= (24% × $49,900)
Tax savings =$ 11,976
Therefore based on the above calculation Olaf and his wife Anna should include the loss on the PRIOR YEAR'S return reason been that the tax savings is $1,642 ($13618 − $11976) greater.
One of the requirements for a patent is that the invention be new, or___________ . An invention will not satisfy this requirement if it has already received a ___________or been described in a printed publication, unless the publication was made by __________in the year before filing the patent application. In addition, if the invention was in public use, on__________ , or otherwise available to __________elsewhere in the world, the invention is not patentable.
Answer:
Novel; patent; the inventor; sale; public.
Explanation:
Patent can be defined as the exclusive or sole right granted to an inventor by a sovereign authority such as a government, which enables him or her to manufacture, use, or sell an invention for a specific period of time.
Generally, patents are used on innovation for products that are manufactured through the application of various technologies.
Basically, the three (3) main ways to protect an intellectual property is to employ the use of
I. Trademarks.
II. Patents.
III. Copyright.
One of the requirements for a patent is that the invention be new, or novel. An invention will not satisfy this requirement if it has already received a patent or been described in a printed publication, unless the publication was made by the inventor in the year before filing the patent application. In addition, if the invention was in public use, on sale, or otherwise available to the public elsewhere in the world, the invention is not patentable.
Walker Company prepares monthly budgets. The current budget plans for a September ending inventory of 30,000 units. Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month. Budgeted sales and merchandise purchases for the next three months follow.
Sales (Units) Purchases (Units)
July 180,000 200,250
August 315,000 308,250
September 270,000 259,500
(1) Prepare the merchandise purchases budget for the months of July, August, and September.
Answer:
Merchandise purchases budget explanations only.
Explanation:
Hi, your question has missing information, however i have supplied explanations below.
A purchases budget is required to determine the quantities of purchases required for :
Resale - For MerchandisersUse in Production in case of ManufacturerHere is the structure of the merchandise purchases budget for Walker Company (Merchandiser).
Merchandise purchases budget
Month
Budgeted Sales x
Add Budgeted Inventory x
Total Purchases needed x
Less Budgeted Opening Inventory (x)
Budgeted Purchases x
As stated by the question : Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month.
Ending Inventory = Next months` sales x required percentage
Ending Inventory for one month say July becomes Opening Inventory for the following month (August) for our merchandise purchases budget.
Department S had no work in process at the beginning of the period. It added 14,800 units of direct materials during the period at a cost of $103,600; 11,100 units were completed during the period; and 3,700 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $56,000 and factory overhead was $9,200. The total conversion costs for the period were a.$56,000 b.$9,200 c.$46,800 d.$65,200
Answer:
d.$65,200
Explanation:
Calculation to determine what The total conversion costs for the period were
Direct labor $56,000
Add Factory overhead $9,200
Total conversion costs $65,200
($56,000+$9,200)
Therefore the total conversion costs for the period were $65,200
If equilibrium is achieved in a competitive market the deadweight loss will equal the sum of consumer surplus and producer surplus. the deadweight loss will be the same as the opportunity cost of the last unit of output sold. the deadweight loss will be maximized. there is no deadweight loss.
Answer:
there is no deadweight loss.
Explanation:
In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.
This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
Generally, a perfectly competitive market is characterized by the following features;
1. Perfect information.
2. No barriers, it is typically free.
3. Equilibrium price and quantity.
4. Many buyers and sellers.
5. Homogeneous products.
Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.
Hence, if equilibrium is achieved in a competitive market then, there is no deadweight loss i.e a loss of economic efficiency due to a lack of balance in competing economical influences for goods or services.
On January 1, 2021, Bombay Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for Bombay to make annual payments of $180,000 at the beginning of each year for five years with title passing to Bombay at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Bombay uses the straight-line method of depreciation for all of its fixed assets. Bombay accordingly accounts for this lease transaction as a finance lease. The lease payments were determined to have a present value of $750,578 at an effective interest rate of 10%.
Required:
In 2022, Cullumber should record interest expense of:______
Answer:
In 2022, Cullumber should record interest expense of $57,057.80.
Explanation:
The interest expense can be calculated using the following formula:
Interest expense = (Present value of lease payments - Annual payments at the beginning of each year) * Effective interest rate .................... (1)
Where:
Annual payments at the beginning of each year = $180,000
Present value of lease payments = $750,578
Effective interest rate = 10%
Substituting the values into equation (1), we have:
Interest expense = ($750,578 - $180,000) * 10% = $57,057.80
Therefore, Cullumber should record interest expense of $57,057.80 in 2022.
On average, your firm receives 65 checks a day from customers. These checks, on average, are worth $39.90 each and clear the bank in 1.5 days. In addition, your firm disburses 38 checks a day with an average amount of $89.50. These checks clear your bank in 2 days. What is the average amount of the collection float? $2,473.80 $3,401.00 $3,890.25 $5,101.50 $6,802.00
Answer:
$3,890.25
Explanation:
Calculation to determine the average amount of the collection float
Using this formula
Collection float =Average Checks received ×Average checks worth×Bank checks clearing numbers of days
Let plug in the formula
Collection float =65 x $39.90 x 1.5 days
Collection float = $3,890.25
Therefore the average amount of the collection float will be $3,890.25
Beck Manufacturing reports the following information in T-account form for 2019. Raw Materials Inventory Begin. Inv. 11,600 Purchases 57,000 Avail. for use 68,600 DM used 48,000 End. Inv. 20,600 Work in Process Inventory Begin. Inv. 16,000 DM used 48,000 Direct labor 31,100 Overhead 57,000 Manuf. costs 152,100 Cost of goods manuf. 138,200 End. Inv. 13,900 Finished Goods Inventory Begin. Inv. 17,200 Cost of goods manuf. 138,200 Avail. for sale 155,400 Cost of Goods Sold 136,500 End. Inv. 18,900 Required: 1. Prepare the schedule of cost of goods manufactured for the year. 2. Compute cost of goods sold for the year.
Answer:
Beck Manufacturing
1. Schedule of the Cost of Goods Manufactured for the year:
Beginning WIP Inventory 16,000
Direct Materials used 48,000
Direct labor 31,100
Overhead applied 57,000
Total manufacturing costs 152,100
Less Ending WIP Inventory 13,900
Cost of goods manufactured 138,200
2. Cost of goods sold for the year:
Beginning Finished Goods 17,200
Cost of goods manufactured 138,200
Goods available for sale 155,400
Less Ending Finished Goods 18,900
Cost of Goods Sold 136,500
Explanation:
a) Data and Calculations:
T-account form for 2019.
Raw Materials Inventory
Account Title Debit Credit
Begin. Inv. 11,600
Purchases 57,000
DM used 48,000
End. Inv. 20,600
Avail. for use 68,600 68,600
Work in Process Inventory
Account Title Debit Credit
Begin. Inv. 16,000
DM used 48,000
Direct labor 31,100
Overhead 57,000
Cost of goods manuf. 138,200
End. Inv. 13,900
Manuf. costs 152,100 152,100
Finished Goods Inventory
Account Title Debit Credit
Begin. Inv. 17,200
Cost of goods
manufacture 138,200
Cost of Goods Sold 136,500
End. Inv. 18,900
Avail. for sale 155,400 155,400
People come to different decisions using cost-benefit analysis even under the
same conditions because costs and benefits are both what?
A. Subjective
B. Non-monetary
C. Utilities
D. Absolute
If the United States imports more than it exports, then Group of answer choices the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus. one can infer that the U.S. dollar would be under pressure to depreciate against other currencies. the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus, and one can infer that the U.S. dollar would be under pressure to depreciate against other currencies. none of the options
Answer:
the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus.
Explanation:
A deficit can be defined as an amount by which money, falls short of its expected value.
In Financial accounting, deficit is usually as a result of revenue falling below expenses or expense exceeding revenue at a specific period of time.
For instance, if in a country liabilities exceeds assets or import exceeds export there would be a deficit in the financial account of the country.
This is simply as a result of a country having to import more goods and services than it is exporting to other countries in trade.
Generally, a deficit on the current account is because the value of goods and services exported is lower than the value of goods and services being imported in a particular country.
If the United States imports more than it exports, then the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus (all things being equal) because it is not selling its goods and services to other countries.
Organizations with low turnover and satisfied employees tend to perform better. On the other side of the coin, organizations have to act when an employee's performance consistently falls short. Based on these concepts, organizations may distinguish between involuntary and voluntary turnover, recognize their effects on the organization, develop measures to encourage top performers to stay, and develop ways to manage the separation process fairly. Any organization wants to retain good performers and encourage or force low-performing employees to leave. There are two types of employee turnover. Involuntary turnover occurs when the employer requires employees to leave, often when they would prefer to stay. This action may potentially result in lawsuits and violence. Voluntary turnover occurs when employees initiate the turnover, often when the organization would prefer to keep them. These employees may retire or leave to work with different organizations. Both types of turnovers are costly because of subsequent needs to recruit, hire, and train replacements.
Roll over each of the following items, read the statements, and place them in the appropriate columnin the chart. Each category has three statements.
1. Any reason
2. Workplace violence
3. Better job
4. Retirement
5. Refusing
6. Violating
7. Promise
8. Careers
9. Employee layoff
A. Voluntary Turnover
B. Involuntary Turnover
C. Employee at Will Doctrine
Answer:
Answer is explained in the explanation section below.
Explanation:
Voluntary Turnover:
Better Job: If an employee is offered a better job, he may choose to quit his current position.
Careers: If an employee is career-oriented and wishes to pursue higher education, he will willingly leave his employment.
Retirement: When an employee reaches the legal working age, he retires, which is referred to as voluntary retirement.
Involuntary Turnover:
Workplace Violence: An employer may decide to fire an employee who engages in workplace violence. This is what is known as spontaneous turnover.
Violating: If an employee is found to be in breach of the company's rules, he will be dismissed, resulting in involuntary turnover.
Employee layoffs: Forced turnover occurs when a company's employees are laid off in large numbers.
Employment at-will doctrine:
For some reason: This allows the employer to fire an employee for any cause.
Promise: Neither the employer nor the employee has made any commitments to each other.
Refusing to state the reason for the employee's termination: If the employer refuses to state the reason for the employee's termination,
Fischer Company has outstanding 8,000 shares of $100 par value, 5% preferred stock, and 50,000 shares of $1 par value common stock. The company has $328,000 of retained earnings. At year-end, the company declares and pays the regular $5 per share cash dividend on preferred stock and a $1.80 per share cash dividend on common stock. What is the total dividends paid by Fischer Company
Answer:
The appropriate solution is "$130,000".
Explanation:
The given values are:
No. of common shares outstanding
= 50,000
Dividend per share
= $1.80
No. of preferred shares outstanding
= 8,000
Dividend per share
= $5
Now,
The total dividend on common shares will be:
= [tex]No. \ of \ common \ shared \ outstanding\times Dividend \ per \ share[/tex]
On substituting the values, we get
= [tex]50,000\times 1.80[/tex]
= [tex]90,000[/tex] ($)
The total dividend on preferred stock will be:
= [tex]No. \ of \ preferred \ shares \ outstanding\times Divided \ per \ share[/tex]
On substituting the values, we get
= [tex]8,000\times 5[/tex]
= [tex]40,000[/tex] ($)
Hence,
The total dividend paid by company will be:
= [tex]Total \ dividend \ on \ common \ shares +Total \ dividend \ on \ preferred \ stock[/tex]
= [tex]90,000+40,000[/tex]
= [tex]130,000[/tex] ($)
Thus the above is the correct answer.
Two-Stage ABC for Manufacturing: Reassigning Costs to Cost Objectives National Technology, LTD. has developed the following activity cost information for its manufacturing activities:
Activity Activity Cost
Machine setup $75.00 per batch
Movement 22.00 per batch
0.10 per pound
Drilling 3.00 per hole
Welding 6.00 per inch
Shaping 32.00 per hour
Assembly 18.00 per hour
Inspection 2.00 per unit
Filling an order for a batch of 50 fireplace inserts that weighed 150 pounds each required the following:
Three batch moves .
Two sets of inspections .
Drilling five holes in each unit
Completing 80 inches of welds on each unit .
Thirty minutes of shaping for each unit .
One hour of assembly per unit
Determine the activity cost of converting the raw materials into 50 fireplace inserts
Fireplace Inserts
Activity Cost
Set-up $
Movement
Batch 60V
Weight
Inspection
Drilling
Welding
Shaping
Assembly
Total
Answer:
$27,541
Explanation:
Calculation to Determine the activity cost
Activity Cost
Set-up $75.00
Movement:
Batch 60V $66
(Three batch moves *22.00 per batch)
Weight $750
(150 pounds*0.10 per pound*50)
Inspection $200
(Two sets of inspections*50*2.00 per unit)
Drilling $750
(3.00 per hole*five holes in each unit*50)
Welding $24,000
(6.00 per inch*80*50)
Shaping $800
(32.00 per hour*(30 minutes/60)*50)
Assembly $900
(18.00 per hour*1*50)
Total $27,541
Therefore the activity cost is $27,541
Economic costs of unemployment
Consider a hypothetical economy in which potential output is $200 billion and the natural rate of unemployment is 4%. The current unemployment rate is 5.6%. Since the unemployment rate is greater than the natural rate of unemployment, the economy's actual GDP will be______ potential GDP.
According to Okun's law, the economy's GDP gap is billion. The burden of an increase in the economy-wide unemployment rate can differ widely across regions and across different groups of people. For example, in the United States, the jobless rate among workers with only a high school diploma has tended to be________ than the jobless rate among college graduates.
Answer: less than; higher
Explanation:
Since the unemployment rate is greater than the natural rate of unemployment, the economy's actual GDP will be less than potential GDP.
...the jobless rate among workers with only a high school diploma has tended to be higher than the jobless rate among college graduates.
When the economy is at its natural rate of unemployment, it means that the economy is producing at potential GDP. If however, the unemployment rate is more than this natural rate, it means that the economy is facing a downturn which is causing companies to not employ as much labor. Actual GDP is therefore lower than Potential GDP.
Workers with more specialized skills will usually feel the impact of an increase in unemployment less those with more general skills will. For this reason, college graduates will see less unemployment than those with only a high school diploma.
An accounting clerk for Chesner Co. prepared the following bank reconciliation:
Chesner Co. Bank Reconciliation July 31, 2016
Cash balance according to company's records $6,570
Add:
Outstanding checks $3,150
Error by Chesner Co. in recording Check No. 1056 as $820 instead of $280 540
Note for $10,300 collected by bank, including interest 10,710 14,400
Deduct:
Deposit in transit on August 31 $6,690
Bank service charges 60 6,750
Cash balance according to bank statement $14,220
$20,970
a. From the data prepared by the accounting clerk, prepare a new bank reconciliation for Chesner Co.
b. If a balance sheet were prepared for Chesner Co. on July 31, 2016, what amount should be reported for cash?
Answer:
A. Adjusted balance $17,760
Adjusted balance $17,760
B. $17,760
Explanation:
A. Preparation of a new bank reconciliation for Chesner Co.
Cash balance according to bank statement l
$14,220
Add Deposit in transit on August 31 $6,690
Deduct Outstanding checks $3,150
Adjusted balance $17,760
Cash balance according to company's records $6,570
Add Error by Chesner Co. in recording Check No. 1056 as $820 instead of $280 540
Add Note for $10,300 collected by bank, including interest 10,710
Less Bank service charges 60
Adjusted balance $17,760
B. Based on the above bank reconciliation If a balance sheet were prepared for Chesner Co. on July 31, 2016 the amount that should be reported for cash is $17,760
From the data prepared by the accounting clerk,
b. If a balance sheet were prepared for Chesner Co. on July 31, 2016, what amount should be reported for cash?
What is an easement? What is it called when an easement is obtained against the consent of the landowner? What type of easement can be created by two adjacent landowners where one of them is “landlocked” by the other landowner?
Answer:
1. An easement is the right given to a person by law to utilize a particular part of another person's land.
2. When an easement is obtained against the consent of the landowner it is known as Prescriptive easement.
3. An easement that is created by two adjacent landowners where one is landlocked by the other landowner is called Easement appurtenant.
Explanation:
An easement is the lawful right of a person to use another person's property. Ingress, egress, and drainage are common reasons why an easement might be needed. When a piece of land does not have access to a roadway, then an easement might be required.
Prescriptive easement occurs when a land has been used by another person who is not the legal owner for up to twenty years without the consent/knowledge of the original owner of the land.
Easement appurtenant occurs for example when a person cannot access his own land with passing through another person's land. An easement by necessity can be created in such situations to solve the problem.
Item 5 Required information Skip to question Current Time 0:00 / Duration 6:35 1x The Science Institute has three departments: Biology, Chemistry, and Physics. The institute's controller wants to estimate the cost of operating each department. He has identified several indirect costs that must be allocated to each department including $43,000 of indirect salaries, $4,500 of office supplies, and $36,500 of office rent. There are 500 students in the biology department, 200 in chemistry and 300 in physics (1,000 total students as the allocation base). The amount of cost that should be allocated to the Chemistry Department is
Answer:
$16,800
Explanation:
Calculation to determine The amount of cost that should be allocated to the Chemistry Department is
First step is to calculate the Cost to be allocated
Cost to be allocated = $43,000 + $4,500 + $36,500
Cost to be allocated= $84,000
Second step is to calculate the Allocation base
Allocation base = 500 + 200 + 300
Allocation base = 1,000 total students
Third step is to calculate the Allocation rate using this formula
Allocation rate = Cost to be allocated ÷
Allocation base
Let plug in the formula
Allocation rate= $84,000 ÷ 1,000
Allocation rate = $84 per student
Now let calculate the Allocation to Chemistry Department
Allocation to Chemistry Department = $84 per student x 200
Allocation to Chemistry Department = $16,800
Therefore The amount of cost that should be allocated to the Chemistry Department is $16,800
Lantana Company has provided you with the transactions that occurred during its first month of operations. The Controller has already recorded the transactions to the T-Accounts and has asked you to prepare the classified balance sheet based on the T-Account balances. Use the information included in the Excel Simulation and the Excel functions described below to complete the task
Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell,"-B11" was entered, the formula would output the result from cell B11, or $50,000 in this example.
Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: (plus sign to add), (minus sign to subtract). (asterisk sign to multiply), and/(forward slash to divide). From the Excel Simulation below, if in a blank cellC11+C12" was entered, the formula would add the values from those cells and output the result, or 15,000 in this example. If using the other math symbols the result would output an appropriate answer for its function
SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below, if in a blank cell " SUM(C11,C12.C13)" was entered, the formula would output the result of adding those three separate cells, or 15,500 in this example.
Answer:
To make a balance sheet in Excel from T-accounts data follow the below steps.
Explanation:
To make a balance sheet in Excel from T-accounts data follow the below steps.
Add current assets by giving link to the T-accounts data for example click on the cell where Current assets amount is to be added as "Cash" write = in the cell and click on the amount of cash balance available at the T-accounts.
Apply same to all accounts.
Current assets will include cash and supplies, Current liabilities will include notes payable and accounts payable and non-current assets will include land and equipment and common stocks will be added in equity.
Total current assets total will be calculated by writing "=SUM" then select the cells that needs to added together and press enter.
Apply same to all head accounts.
The Federal Reserve buys $38.00 million in Treasury securities. If the required reserve ratio is 30.00%, and all currency is deposited into the banking system, and banks hold excess reserves of 10%, then the maximum amount the money supply can increase is $_______ million.
Answer:
$95 million
Explanation:
When the Feds buys securities, it is an expansionary monetary policy
Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy
Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank
Required reserves = reserve requirement x deposits
Excess reserves is the extra that it kept by banks
Money supply = deposit / total reserves
total reserves = 30 + 10 = 40%
total increase in money supply = $38 / 0.4 = $95 million
Assume you gave up a $60,000 per year job at an accounting firm to start your own tax preparation business. To simplify, assume your tax personal obligations are the same whether you run your own firm or work for another firm. If your revenue during the first year of business is $75,000, and you incurred $5,000 in expenses for equipment and supplies, how much is your accounting profit
Answer:
Accounting profit= $70,000
Explanation:
Giving the following information:
If your revenue during the first year of business is $75,000, and you incurred $5,000 in expenses for equipment and supplies, how much is your accounting profit
The accounting profit does not include the opportunity cost of leaving the accounting job. In this case, the accounting profit is:
Accounting profit= revenue - costs
Accounting profit= 75,000 - 5,000
Accounting profit= $70,000
How does risk influence the rate of interest?
Answer:
Interest rate risk directly affects the values of fixed income securities. Since interest rates and bond prices are inversely related, the risk associated with a rise in interest rates causes bond prices to fall and vice versa. Interest rate risk affects the prices of bonds, and all bondholders face this type of risk.
Explanation:
Hope this helped Mark BRAINLEST!!
You are considering an investment in 30-year bonds issued by Moore Corporation The bonds have no special covenants. The Wall Street ournal reports that one-year T-bills are currently earning 3.55 percent Your broker has determined the following information about economic activity and Moore Corporation bonds 50 Real interest rate 275 percent Default risk premium-1.05 percent Liquidity risk premium 0.50 percent Maturity risk premium 185 percent What is the inflation premium?
Answer:
0.80%
Explanation:
Calculation for the inflation premium
Using this formula
Expected Inflation premium = i - Real interest rate
Let plug in the formula
Expected Inflation premium = 3.55% - 2.75 %
Expected Inflation premium= 0.80%
Therefore the inflation premium is 0.80%
A large brand runs several companies, including a chain of hotels, an automobile business, and a software development firm. Which data warehouse would help the organization view consolidated results of all the businesses?
A.
distributed
B.
LAN based
C.
virtual
D.
multistage
E.
stationary
Answer:
A.
distributed
Explanation:
In the case of the large brand running several companies, the best data warehouse suitable for them would be distributed type. This is because, it would allow them to house their data separately in the different arms of the business like hotels, automobiles business and software development businesses before the information is linked together and distributed evenly.
The distributed data warehouse allows them to share information among the various arms of the businesses due to the linkage between them.