Answer:
$3.5
Explanation:
As per the situation the computation of earnings per share is shown below:-
Earnings per share = (Net income - Preferred dividends) ÷ Weighted average common shares outstanding
= ($800,000 - $100,000) ÷ 200,000
= $700,000 ÷ 200,000
= $3.5
Therefore for determining the earnings per shares we simply applied the above formula.
Make a list of entrepreneural activities in your own community?
Presented below is information related to Wise Company at December 31, 2017, the end of its first year of operations.
Sales revenue $775,000
Cost of goods sold 350,000
Selling and administrative expenses 125,000
Gain on sale of plant assets 75,000
Unrealized gain on available-for-sale investments
25,000
Interest expense 15,000
Loss on discontinued operations 30,000
Allocation to noncontrolling interest 100,000
Dividends declared and paid 12,000
Compute the following. Ignore income tax effects.
(a) Income from operations $300,000
(b) Net income $330,000
(c) Net income attributable to Wise Company's controlling stockholders $230,000
(d) Comprehensive income $355,000
(e) Retained earnings balance at December 31, 2017 $318,000
Solution:
Sales revenue $775,000
Cost of goods sold 350,000
Gross profit 425,000
Selling administrative expenses 125,000
Income from operations 300,000 (a)
Other revenues and gains
Gain on sale of plant assets 75,000
Other expenses and losses
Income before other expenses and losses 375,000
Interest expense 15,000
Income from continuing operations 360,000
Loss on discontinued operations (30,000)
Net Income 330,000 (b)
Allocation to noncontrolling interest (100,000)
Net income attributable to controlling shareholders $230,000 (c)
Net income $330,000
Unrealized gain on available-for-sale investments 25,000
Comprehensive income $355,000 (d)
Net income $330,000
Dividends (12,000)
12/31/17 Retained earnings $318,000 (e)
Answer and Explanation:
The computation is shown below:
Sales revenue $775,000
Less: Cost of goods sold 350,000
Gross profit 425,000
Less: Selling administrative expenses 125,000
Income from operations 300,000 (a)
b.
Income from operations
Other revenues and gains
Add: Gain on sale of plant assets 75,000
Other expenses and losses
Income before other expenses and losses 375,000
Less: Interest expense 15,000
Income from continuing operations 360,000
Less: Loss on discontinued operations (30,000)
Net Income 330,000 (b)
c.
Net income
Less: Allocation to noncontrolling interest (100,000)
Net income attributable to controlling shareholders $230,000 (c)
d.
Net income $330,000
Add: Unrealized gain on available-for-sale investments 25,000
Comprehensive income $355,000 (d)
e. Retaining earnings opening balance $0
Add: Net income $330,000
Less: Dividends (12,000)
Closing Retained earnings $318,000 (e)
Eva received $60,000 in compensation payments from JAZZ Corp. during 2020. Eva incurred $5,000 in business expenses relating to her work for JAZZ Corp. JAZZ did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $12,400. Based on these facts, answer the following questions: Use Tax Rate Schedule for reference. (Leave no answer blank. Enter zero if applicable.) d. Assume that Eva is considered to be a self-employed contractor. What is her regular tax liability for the year
Answer:
d. Assume that Eva is considered to be a self-employed contractor. What is her regular tax liability for the year
Since Eva's standard deduction is $12,000, then we must assume that we are dealing with income earned during 2018.
Eva's AGI = $60,000 - $5,000 (business expenses) = $55,000 - (7.65% x $55,000 for self employer taxes) - $12,000 (standard deduction) = $38,792.50
Eva's tax liability:
$9,700 x 10% = $97012% x ($38,700 - $9,700) = $3,48022% x ($38,792.50 - $38,700) = $20.35total tax liability = $4,470.35differentiate between piecemeal and time related salary determination methods
Answer:
See below
Explanation:
1. The piecemeal pay method compensates worked based on the quantity of output produced while the time method rewards workers based on the time spent in producing the output. The piecemeal rate system pays per unit of production. The time rate system pays per the number of hours worked.
2. The piecemeal rate system emphasizes the quantity of output compared to the time rate system that focuses on the quality of output.
3.The piecemeal system recognizes and rewards more to efficient and skilled employees, but the time rate system tends to compensate employees in the same cadre equal amounts.
Here, we are required to differentiate between piecemeal and time related salary determination methods.
In Piecemeal salary determination methods, Workers are paid according to the number of products/units produced/action performed while in Time-related salary determination methods, workers are paid in accordance to the amount of time they spend at work/on a task or on the job.
In piecemeal salary determination methods, workers are not remunerated (i.e not paid for work or service) for the number of hours worked, regardless of how long it took to complete the task at hand while in Time-related salary determination methods, orkers with the same experience/qualifications are paid on salary scales regardless of the amount of work done.
Piecemeal salary determination method is mostly used in factories particularly in the textile/technology industries where the labor force is unskilled or sometimes semi-skilled. while Time-related salary determination method is used in many private and public sector businesses as majority of the labor force are skilled.
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Starbucks is a national chain of gourmet cafes, which caters to coffee-drinkers. Many of their customers commute from the suburbs, and several of the stores are located in business districts so they may better accommodate the commuters' needs. Starbucks sells their private brand of coffees, and also accompanied them with fresh baked goods. They have a synergy between their stores and their website, both of which help to maintain an advantage over competing local coffee shops. This is a description of Starbucks:
Answer:
yes this is a description of starbucks?
Yes, Starbucks is described in this Starbucks is a national chain of gourmet cafes
What is the nation?Although the phrases nation, state, and country are sometimes used interchangeably, there is a distinction between them. A state is a self-governing political entity (notice the capital "S"). Country and State are both interchangeable terms. However, a nation is a closely-knit community of people who share a culture.
Starbucks is a national chain of gourmet cafes, which caters to coffee drinkers. Many of their customers commute from the suburbs, and several of the stores are located in business Yes, Starbucks is described in this Starbucks is a national chain of gourmet cafes
Therefore, Yes, Starbucks is described in this Starbucks is a national chain of gourmet cafes
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Southern Rim Parts estimates its manufacturing overhead to be $416,000 and its direct labor costs to be $1,040,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $63,000 for Job 301, $88,000 for Job 302, and $165,000 for Job 303. For the year, actual manufacturing overhead was $409,000 and total direct labor cost was $836,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates. Overhead applied in each of the inventory accounts is as follows:Work-in-process inventory $ 33,440Finished goods inventory 83,600Cost of goods sold 217,360Required:Prepare an entry to prorate the under- or overapplied overhead. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Work-in-process $700 (debit)
Finished goods $1,750 (debit)
Cost of goods sold $4,550 (debit)
Overheads $7,000 (credit)
Explanation:
Southern Rim Parts estimated/ applied overheads are $416,000 and the actual overheads are $409,000.
Conditions :
If Applied Overheads > Actual Overheads, we have an over-applied situation
and
If Applied Overheads < Actual Overheads, we have an under-applied situation
Therefore,
Using the information of Southern Rim Parts, we have an over- applied situation of $7,000 ($416,000 - $409,000).
Allocation of the over- applied overheads of $7,000
Inventory/Category Total Percentage Allocation
Work-in-process inventory $ 33,440 10% $700
Finished goods inventory $83,600 25% $1,750
Cost of goods sold $217,360 65% $4,550
Total $334,400 $7,000
Journal entry to record the the over-applied overheads
Work-in-process $700 (debit)
Finished goods $1,750 (debit)
Cost of goods sold $4,550 (debit)
Overheads $7,000 (credit)
Use the Keynesian cross to predict the impact on equilibrium GDP of a. An increase in government purchases. b. An increase in taxes. c. Equal-sized increases in both government purchases and taxes.
Answer:
An increase in government purchases
Explanation:
The Keynesian cross explains to us that fiscal policy has multiple impacts on income. The reason for this has been explained by many, according to consumption, that higher income is seen to lead to higher consumptions. Keynesian economics (KE) as an idea was developed before the aggregate demand/aggregate supply model was made popular.
The KE was explained using the expenditure-output approach which lays emphases on the total amount of spending in the economy
June 1 T. James, owner, invested $11,500 cash in Sustain Company in exchange for common stock. 2 The company purchased $4,500 of furniture made from reclaimed wood on credit. 3 The company paid $700 cash for a 12-month insurance policy on the re-claimed furniture. 4 The company billed a customer $3,500 in fees earned from preparing a sustainability report. 12 The company paid $4,500 cash toward the payable from the June 2 furniture purchase. 20 The company collected $3,500 cash for fees billed on June 4. 21 T.James invested an additional $10,500 cash in Sustain Company in exchange for common stock. 30 The company received $5,500 cash from a client for sustainability services for the next 3 months.Prepare general journal entries for the above transactions
Answer:
General Journal
June 1
Cash $11,500 (debit)
Common Stock $11,500 (credit)
Received Cash in exchange of common stock
June 2
Furniture $4,500 (debit)
Accounts Payable $4,500 (credit)
Purchased Furniture on credit
June 3
Prepaid Insurance $700 (debit)
Cash $700 (credit)
Paid Insurance in advance
June 4
Accounts Receivable $3,500 (debit)
Fees Earned $3,500 (credit)
Fees earned not yet paid
June 12
Accounts Payable $4,500 (debit)
Cash $4,500 (credit)
Payment made to suppliers
June 20
Cash $3,500 (debit)
Accounts Receivable $3,500 (credit)
Cash receipt from debtors
June 21
Cash $10,500 (debit)
Common Stock $10,500 (credit)
Received Cash In exchange of Common Stock
June 30
Cash $5,500 (debit)
Deferred Revenue $5,500 (credit)
Received Cash for services to be rendered
Explanation:
See the journals and their narrations prepared above.
Answer:
Entries are posted
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
DEBIT CREDIT
1-June (Common Stock issued)
Cash $11,500
Common stock $11,500
2-June (Furniture purchased on Credit)
Furniture $4,500
Accounts Payable $4,500
3-June (Prepaid Insurance Paid)
Prepaid insurance $700
Cash $700
4-June (Revenue earned)
Accounts Receivable $3,500
Service Revenue $3,500
12-June (Paid for Outstanding balance in payables)
Accounts Payable $4,500
Cash $4,500
20-June (Received from Accounts Receivables)
Cash $3,500
Accounts Receivables $3,500
21-June (Common Stock issued)
Cash $10,500
Common stock $10,500
30-June (Advance received for services to be performed in future)
Cash $5,500
Unearned Service Revenue $5,500
name three benefits of being a for-profit business
Answer:
Owner Income
Owner Income
Company Morale
Explanation:
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Toot! TiX Total Users 16,700 23,100 39,800 Revenues $ 2,100,000 $ 1,880,000 $ 3,980,000 Engineering hours 13,600 9,600 23,200 Engineering cost $ 330,000 $ 450,000 $ 780,000 Administrative costs $ 1,671,600 Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the revenue to allocate administrative costs. b. Based on the rates computed in requirement (a), what is the profit for each service?
Answer:
Instructions are below.
Explanation:
First, we need to calculate the revenue proportion:
Toot!= 2,100,000/3,980,000= 0.53
TiX= 1,880,000/3,980,000= 0.47
Now, we can allocate administrative costs:
Toot!= 0.53*1,671,600= $885,948
TiX= 0.47*1,671,600= $785,652
Finally, the total, and unitary profit per product:
Toot!:
Revenues= 2,100,000
Engineering cost= (330,000)
Administrative costs= (885,948)
Total profit= $884,052
Unitary profit= 884,052/16,700= $52.937
TiX:
Revenues= 1,880,000
Engineering cost= (450,000)
Administrative costs= (785,652)
Total profit= $644,348
Unitary profit= 644,348/23,100= $27.894
A loan is being repaid with payments of $395 made at the beginning of each year for 17 years. Determine the effective annual rate of interest charged if the loan amount is $5081.27.
Answer:
3.76%
Explanation:
I did this computation using excels Rate function. I will show you how to do the same in this solution
From our question,
We have:
Loan amount = Present Value(PV) = -5081.27
Payments at periods PMT = $ 395
The Future Value (FV) = 0
We were given Period (NPER) = 17
The Type = 1 because payments are made at the start of each year.
To get rate = RATE (NPER, PMT,PV,FV,Type, Guess)
= RATE(17,395,-5081.27,0,1,0)
= 3.76%
The effective annual rate = 3.76%
t the end of the year, the records of NCIS Corporation provided the following selected and incomplete data: Common stock ($10 par value); no changes in account during the year. Shares authorized: 290,000. Shares issued: _______ (all shares were issued at $14 per share; $2,170,000 total cash collected). Treasury stock: 5,000 shares (repurchased at $18 per share). The treasury stock was acquired after a stock split was announced. Net income: $297,000. Dividends declared and paid: $165,000. Retained earnings beginning balance: $645,000. Required: 1. Complete the following tabulation: 2. Calculate the balance in the Additional paid-in capital account. 3. What is earnings per share (EPS)
Answer:
1. Required tabulation is the Shares Authorized, the Shares Issued and the Shares Outstanding
Shares Authorized = 290,000 shares
Shares Issued
= Total Cash Collected / Price per share
= 2,170,000 / 14
= 155,000 shares
Shares Outstanding
= Shares Issued - Treasury stock
= 155,000 - 5,000
= 150,000 shares
2. Additional paid in capital account
= Gain (loss) above par
Par value is $10 and Stock was sold for $14
= (14 - 10 ) * 155,000
= $620,000
3. Earnings per share
= Net Income/ Shares outstanding
= 297,000/150,000
= $1.98
Kelp Company produces three joint products from seaweed. At the split-off point, three basic products emerge: Sea Tea, Sea Paste, and Sea Powder. Each of these products can either be sold at the split-off point or be processed further. If they are processed further, the resulting products can be sold as delicacies to health food stores. Cost and revenue information is as follows. Sales Value and Additional Costs If Processed Further Product Pounds Produced Sales Value at Split-Off Final Sales Value Additional Cost Sea Tea 9,000 $ 60,000 $ 90,000 $ 35,000 Sea Paste 4,000 80,000 160,000 50,000 Sea Powder 2,000 70,000 85,000 14,000 Required: a-1. Compute the incremental benefit (cost) of further processing to these products. a-2. Which products should Kelp process beyond the split-off point
Answer:
a-1. Compute the incremental benefit (cost) of further processing to these products.
sea tea = ($5,000) losssea paste = $30,000sea powder = $1,000a-2. Which products should Kelp process beyond the split-off point
sea paste and sea powderExplanation:
Sales Value and Additional Costs If Processed Further
Product Pounds Sales value Final sales Additional
produced at split-off value cost
Sea Tea 9,000 $60,000 $90,000 $35,000
Sea Paste 4,000 $80,000 $160,000 $50,000
Sea Powder 2,000 $70,000 $85,000 $14,000
incremental benefit of further processing:
sea tea = ($90,000 - $60,000) - $35,000 = -$5,000
sea paste = ($160,000 - $80,000) - $50,000 = $30,000
sea powder = ($85,000 - $70,000) - $14,000 = $1,000
Wang Company accumulates the following adjustment data at December 31. For each item, indicate the (1) type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) and (2) the status of the accounts before adjustment (overstated or understated). (Enter your answers in alphabetical order.) (1) Type of Adjustment (2) Accounts Before Adjustment (a) Services performed but unbilled totals $600. Select a type of adjustment Select a status of the accounts Select a status of the accounts (b) Store supplies of $160 are on hand. The supplies account shows a $1,900 balance. Select a type of adjustment Select a status of the accounts Select a status of the accounts (c) Utility expenses of $275 are unpaid. Select a type of adjustment Select a status of the accounts Select a status of the accounts (d) Service performed of $490 collected in advance. Select a type of adjustment Select a status of the accounts Select a status of the accounts (e) Salaries of $620 are unpaid. Select a type of adjustment Select a status of the accounts Select a status of the accounts (f) Prepaid insurance totaling $400 has expired. Select a type of adjustment Select a status of the accounts
Answer and Explanation:
The type of adjustment and the status of accounts before the adjustment is shown below:-
Type of adjustment Accounts before adjustment
(a) Accrued revenues Assets understated
Revenues understated
(b) Prepaid expenses Assets overstated
Expenses understated
(c) Accrued expenses Expenses understated
Liabilities overstated
(d) Unearned revenues Revenues understated
Liabilities overstated
(e) Accrued expenses Expenses understated
Liabilities understated
(f) Prepaid expenses Assets overstated
Expenses understated
The Richmond Corporation uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory on August 31 consisted of 18,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 50% complete with respect to labor and overhead. If the cost per equivalent unit for August was $2.75 for materials and $4.25 for labor and overhead, the total cost assigned to the ending work in process inventory was:
Answer:
The correct answer is "$87,750".
Explanation:
In process inventory, the overall cost allocated to the final job would be:
⇒ [tex]Sum \ of \ material +labour \ material[/tex]
⇒ [tex]18000 \ units[/tex]
The unit of ending were 100%
⇒ [tex]2.75 = 45,500[/tex] ($)
Labor = [tex]18000\times 50 \ percent \times 4.25[/tex]
= [tex]38,250[/tex] ($)
In process inventory, the overall cost allocated to the final job would be:
⇒ [tex]Material+Labor[/tex]
⇒ [tex]49,500+38,250[/tex]
⇒ [tex]87,750[/tex] ($)
Cara, who is 42 years old, had some unexpected medical expenses during the year. To pay for these expenses (which were above the 10% of AGI threshold and claimed as itemized deductions on her tax return), she received a $10,000 distribution from her traditional IRA (she has only made deductible contributions to the IRA). Assuming her marginal ordinary income tax rate is 22%, what amount of taxes and/or early distribution penalties will Cara be required to pay on this distribution
Answer: $2,200 income tax; $1,000 early distribution penalty
Explanation:
The IRS allows for withdrawals from the IRA before retirement without penalty if the withdrawal is for unreimbursed medical expenses that do not exceed 10% of the person's AGI.
As the expenses exceeded the 10% AGI threshold , She will owe a penalty of 10% on the withdrawal;
= 10,000 * 10%
= $1,000
She will also have to pay her income tax on this.
= 10,000 * 22%
= $2,200
The use of a debit card is most like:
A firm is considering purchasing two assets. Asset A will have a useful life of 15 years and cost $3 million; it will have installation costs of $400,000 but no salvage or residual value. Asset B will have a useful life of 6 years and cost $1.3 million; it will have installation costs of $180,000 and a salvage or residual value of $300,000. Which asset will have a greater annual straight-line depreciation
Answer:
Asset A provides a greater annual depreciation.
Explanation:
Giving the following information:
Asset A:
Useful life= 15 years
Purchase price= 3,000,000 + 400,000= 3,400,000
Salvage value= 0
Asset B:
Useful life= 6 years
Purchase price= 1,300,000 + 180,000= 1,480,000
Salvage value= 300,000
To calculate the depreciation expense, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Asset A:
Annual depreciation= 3,400,000/15= $226,666.67
Asset B:
Annual depreciation= (1,480,000 - 300,000) / 6
Annual depreciation= $196,666.67
Asset A provides a greater annual depreciation.
You are the new VP for HR of a company that has not been performing well, and everyone including youself, has a mandate to deliver results. The pressure has never been greater. Shareholders are angry after three years of a tough market that has left their company stock losing value every day. Many shareholders disparately need stock performance to pay for their retirement. Working for you is a 52-year-old manager with two kids in college. In previous evaluations, executives told him he was doing fine, when he clearly was not, and his performance is still far below par. At the same time, the executives awarded him impressive annual pay raises. If you are to show others in the company that you are willing to make tough decisions, you feel you must fire this individual. The question is, who is going to suffer --the firm and ultimately, the shareholders, who retirements are in jeopardy --or a nice guy who's been lied to for 20 years? 1. What would you do and why. 2. What factor(s) in this ethical dilemma might influence a person to make a less-than-ethical decision?
Many individual factors affect a person's ethical behavior at work, such as knowledge, values, personal goals, morals and personality. The more information that you have about a subject, the better chance you will make an informed, ethical decision.
For example, what if you had to decide whether to approve building a new company store? What if you did not have the knowledge that the store would disturb an endangered species nest? Without the appropriate knowledge, you could be choosing an unethical path.
Values are an individual's judgment or standard of behavior. They are another individual factor that affects ethical behavior. To some people, acting in an improper way is just a part of doing business. Would you feel that it is ethical to make up lies about your competitor just to win a contract? Some people's standard of behavior will feel that lying for a business financial win is not unethical.
Morals are another individual characteristic that can affect an individual's ethics. Morals are the rules people develop as a result of cultural norms and values and are, traditionally, what employees learn from their childhood, culture, education, religion, etc. They are usually described as good or bad behavior. Would you have good morals if you pushed a product on a customer that you knew was not going to help solve a problem?
Many ethical work situations will also be affected by a person's goals. Which characteristics do you feel are worthy to aspire to? Is financial gain ranked ahead of good character or integrity? If your personal goals are about acquiring wealth no matter what the consequence, then you might act unethical in the future.
Lastly, an employee's personality plays an important factor in determining ethical behavior. Do you enjoy risk or do you prefer the safe route? Individuals who prefer to take risks tend to have a higher chance of unethical conduct at work
Here is an example in the lecture. An American sales manager newly posted to Japan. He cancelled an early morning meeting since there was no such meeting in their US headquarter. Therefore, sales representatives did not need to come into the office every day for an early morning meeting before beginning calls to clients Tokyo. However, he found decline in sales performance soon after he cancelled the meeting. Decline in sales performance after cancellation of early morning meeting is because ____ Group of answer choices sales representatives are motivated mostly by peer pressure brought by early morning meeting, which is due to high collectivism. Japanese clients prefer early morning meeting. the American manager has high sensitivity toward uncertainty.
Answer:
sales representatives are motivated mostly by peer pressure brought by early morning meeting, which is due to high collectivism
Explanation:
By cancelling the meeting, sales representatives would have reduced motivation to get clients. The meeting is a source of motivation to the sales representatives.
The ability to solve problems and make decision is what type of skill? (soft kill or hard skill)
Answer:
I am not sure but i think it is a soft skill.
Explanation:
Gina has $5,000 saved and wants to attend a college with a current tuition of $10,000 a year. She will graduate from high school in five years. Roughly how much more will Martha need to save for one-year's tuition to account for an annual rate of inflation of 3%
Answer
About 60000 for monthly inflation if this is wrong I am truly sorry i just had a bad day
Below are several statements about internal controls.1. The components of internal control are built on the foundation of the ethical tone set by top management. 2. Once every three months, managers need to review operations to ensure that control procedures work effectively. 3. Collusion refers to the act of a single individual circumventing internal control procedures. 4. Detective control procedures are designed to detect errors or fraud that have already occurred, while preventive control procedures are designed to keep errors or fraud from occurring in the first place. 5. Fraud committed by top-level employees is more difficult to detect because those employees more often have the ability to override internal control features. 6. A good example of separation of duties would be having one person collect cash from customers and account for it, while having another person order inventory and maintain control over it. 7. Employee tips historically have been the most common means of detecting employee fraud. 8. Detective controls include reconciling the physical assets of the company with the accounting records and comparing actual performance of individuals or processes against their expected performance. 9. Effective internal controls and ethical employees ensure a company's success.Stae whether the answer to each statement is true or fasle.
Answer:
1. True
2. False
3. False
4. True
5. True
6. False
7. True
8. True
9. False
Explanation:
Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.
The purpose of internal controls is that companies use strong internal controls to guarantee that loss is eliminated as there's an accurate and reliable accounting system.
An internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency.
Hence, internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.
1. True: The components of internal control are built on the foundation of the ethical tone set by top management.
2. False: Once every three months, managers need to review operations to ensure that control procedures work effectively.
3. False: Collusion refers to the act of a single individual circumventing internal control procedures.
4. True: Detective control procedures are designed to detect errors or fraud that have already occurred, while preventive control procedures are designed to keep errors or fraud from occurring in the first place.
5. True: Fraud committed by top-level employees is more difficult to detect because those employees more often have the ability to override internal control features.
6. False: A good example of separation of duties would be having one person collect cash from customers and account for it, while having another person order inventory and maintain control over it.
7. True: Employee tips historically have been the most common means of detecting employee fraud.
8. True: Detective controls include reconciling the physical assets of the company with the accounting records and comparing actual performance of individuals or processes against their expected performance.
9. False: Effective internal controls and ethical employees ensure a company's success.
An entrepreneur who is green focuses on
a. helping others who are in need.
b. conserving resources.
c. operating with integrity.
d. finding societal needs that are not being met by the government.
Hello!
An entrepreneur who is green focuses on environmental issues and the best options for sustainable businesses.
In this question, the best answer is B. "conserving resources."
I hope this helps you! Have a great day!
- Mal
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $390,000. During 2021, Halifax sold merchandise on account for $12,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $370,000 in sales for credit, with $204,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 of merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balance at year end. 2. What is the amount of the year-end refund liability after the adjusting entry is recorded
Answer:
Please find attached solution to the above questions
Explanation:
a. Record actual returns in 2021 of Merchandize that was sold prior to 2021.
b. Record actual returns in 2021 of Merchandize that was sold during 2021
c. Adjust the refund liability to its appropriate balance at year end.
2. What is the amount of the year end refund liability after the adjusting entry is recorded.
Please see detailed solution as attached in respect of the above questions.
Nolan Company's cash account shows a $24,625 debit balance and its bank statement shows $23,541 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $2,894. The June 30 bank statement lists $27 in bank service charges; the company has not yet recorded the cost of these services. In reviewing the bank statement, a $70 check written by the company was mistakenly recorded in the company’s books as $79. June 30 cash receipts of $3,982 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement. The bank statement included a $22 credit for interest earned on the company’s cash in the bank. The company has not yet recorded interest earned. Prepare a bank reconciliation using the above information.
Answer:
Bank Reconciliation Statement as at June 30
Balance as per Bank Statement $23,541
Add Outstanding Lodgements : $3,982
Less Unpresented Checks : ($2,894)
Balance as per Cash Book $24,629
Explanation:
First adjust the Cash Book Balance as follows :
Cash Book (Bank Columns Only)
Debit :
Balance before adjustments $24,625
Correction of Error $9
Interest earned $22
Totals $24,656
Credit :
Bank service charges $27
Adjusted balance (balancing figure) $24,629
Totals $24,656
Then Prepare a Bank Reconciliation Statement :
Bank Reconciliation Statement as at June 30
Balance as per Bank Statement $23,541
Add Outstanding Lodgements : $3,982
Less Unpresented Checks : ($2,894)
Balance as per Cash Book $24,629
Conclusion :
The Cash Balance is $24,629. This amount will be shown in the Balance Sheet under Current Assets Section.
Problem 5-3 Future Value and Multiple Cash Flows [LO 1] Wells, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,060 2 1,290 3 1,510 4 2,250 a. If the discount rate is 6 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the future value at an interest rate of 14 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the future value at an interest rate of 21 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
a. $6,562.52
b. $7,218.32
c.$7,843.64
Explanation:
The present value of the cash flows would be found first and after, the present value has been determined, the future value would be found
Present value can be calculated using a financial calculator
Cash flow in year 1 = $1,060
Cash flow in year 2 = $1,290
Cash flow in year 3 = 1,510
Cash flow in year 4 = $2,250
Present value when interest rate is 6% = $5,198.131267
Present value when interest rate is 14% = $4,273.825287
Present value when interest rate is 21% = $3,659.117655
Now we find the future value
Future value = present value ( 1 + r)^n
r = interest rate
n = number of years
a. $5,198.131267(1.06)^4 = $6,562.52
b. $4,273.825287(1.14)^4 = $7,218.32
c. $3,659.117655 (1.21)^4 = $7,843.64
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
In any industry, ethical behavior is the responsibility of ______.
Answer:
In any industry, ethical behavior is the responsibility of each employee
Answer:
each employee
Hope this helps
Fixed costs are _____.
costs that increase regardless of how much of a good or service is produced
costs that stay the same regardless of how much of a good or service is produced
costs that decrease regardless of how much of a good or service is produced
none of the above
Answer:
costs that stay the same regardless of how much of a good or service is produced
Explanation:
In the short run, fixed costs are the expenses that do not change regardless of the output level. In other words, fixed costs remain a constant amount throughout the financial period. Examples of fixed costs include rent, administrative salaries, insurance, and loan repayments. These amounts will be the same irrespective of production levels.
Fixed costs contrast with variable costs that vary depending on the output level.
Black Cat Corporation manufactures a product with the following full unit costs at a volume of 4,000 units: Direct materials $200 Direct labor 80 Manufacturing overhead (30% variable) 150 Selling expenses (50% variable) 50 Administrative expenses (10% variable) 80 Total per unit $560 A company recently approached Black Cat’s management with an offer to purchase 450 units for $550 each. Black Cat currently sells the product to dealers for $800 each. Black Cat’s capacity is sufficient to produce the extra 450 units. No selling expenses would be incurred on the special order. If Black Cat’s management accepts the offer, profits will: Group of answer choices Decrease by $120,000 Increase by $66,800 Increase by $97,650 Decrease by $24,000
Answer:
Increase by $97,650
Explanation:
Increment Sale $247,500
(450 * $550)
Less Increment cost
Direct materials $90,000
(450 * $200)
Direct labor $36,000
(450 * $80)
Manufacturing overhead $20,250
(450 * $150 * 30%)
Administrative expenses $3,600 $149,850
(450 * $80 * 10%)
Profit will increase by $97,650