Answer:
1.
April 1, Year 1 Note Receivable 470000 Dr
Cash 470000 Cr
2.
December 31, Year 1 Interest receivable 38775 Dr
Interest Revenue 38775 Cr
3.
April 1, Year 2 Cash 521700 Dr
Note Receivable 470000 Cr
Interest Receivable 38775 Cr
Interest Revenue 12925 Cr
Explanation:
1.
The loan was extended on 1 April Year. The note received is an asset for the company and will be recorded as a debit to the note receivable account and a credit to cash as cash is being paid as an extension of loan to the supplier.
2.
The accrual principle states that the revenues and expenses relating to a particular period should be matched and recorded in their respective periods. Thus, on 31 December Year 1, the interest revenue relating to notes receivable for the period from April to December (9 months) will be recorded as a revenue and as a receivable as it will be received when the note matures.
Interest revenue = 470000 * 0.11 * 9/12 = 38775
3.
The amount for the loan and interest on it against the note receivable will be received on April 1 Year 2. The cash will be debited by the amount of note receivable and the interest revenue earned for 12 months on that note. The note receivable account and the interest receivable account will be credited which were assets and the interest revenue that relates to year 2 (3 months from January to march) will be credited against the cash.
Interest revenue Year 2 = 470000 * 0.11 * 3/12 = 12925
Cash = 470000 + 38775 + 12925 = 521700
Employees who report unethical behavior in their own workplace (whistleblowers) are protected by law. However, many are reluctant to draw negative attention to their companies because of loyalty to the company or fear of reprisals. Chances are good you will encounter questionable behavior at your workplace at some point during your career. How you respond will be a measure of your ability to analyze issues and choose the responsible option.
How can you blow the whistle legally and ethically?
A. If you can't find any satisfactory solutions to the problem, change jobs.
B. If you can't find any satisfactory solutions to the problem, accept the situation.
C. If you can't find any satisfactory solutions to the problem, sue the company
Answer:
Try to correct the problem from within the company.
Explanation:
In many cases, the ability to respond more responsibly to a problem in the workplace can be resolved internally. Communicating the unethical problem to the supervisor or a responsible person you trust within the company, can generate a quick and immediate solution for the problem to be solved, before taking the situation to a deeper level, such as a process for example. Because it is not always possible for the supervisor to be aware of all the problems that involve the organizational environment, so communication is the most effective way of trying to solve the problems.
Answer:
Talk to someone you trust for advice
Explanation:
Scarbrough Corp. factored $600,000 of accounts receivable to Duff Corp. on October 1, year 2. Control was surrendered by Scarbrough. Duff accepted the receivables subject to recourse for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts receivable. In addition, Duff charged 15% interest computed on a weighted-average time to maturity of the receivables of fifty-four days. The fair value of the recourse obligation is $9,000. Scarbrough will receive and record cash of
$556,685
$547,685
$538,685
$529,685
Vaughn Manufacturing assigns $4570000 of its accounts receivables as collateral for a $2.99 million loan with a bank. The bank assesses a 3% finance charge on the loan amount and charges interest on the note at 5%. What would be the journal entry to record this transaction?
Debit Cash for $2026800, debit Interest Expense for $89700, debit Due from Bank for $1580000, and credit Accounts Receivable for $4570000.
Debit Cash for $2900300, debit Interest Expense for $89700, and credit Notes Payable for $2990000.
Debit Cash for $2900300, debit Interest Expense for $89700, and credit Accounts Receivable for $2990000.
Debit Cash for $2750800, debit Interest Expense for $239200, and credit Notes Payable for $2990000.
Answer:
Scarbrough will receive and record cash of $538,685
The journal entry to record this transaction would be:
Debit Credit
Cash $2,900,300
Interest Expense $89,700
Notes Payable $2,990,000
Debit Cash for $2900300, debit Interest Expense for $89700, and credit Notes Payable for $2990000
Explanation:
In order to calculate the amount Scarbrough will receive and record cash we would have to make the following calculation:
Scarbrough will receive and record cash=Receivables-Amount of the hold back-Withheld as fee income-Less: Withheld as interest expense
Receivables= $600,000
Amount of the hold back=$600,000 x 5%=$30,000
Withheld as fee income=$600,000 x 3%=$18,000
Withheld as interest expense=$600,000 × 15% × 54/365=$13,315
Therefore, Scarbrough will receive and record cash=$600,000- $30,000-$18,000-$13,315=$538,685
Scarbrough will receive and record cash of $538,685
According to the given data to journal entry to record this transaction would be the following:
Debit Credit
Cash $2,900,300
Interest Expense $89,700
Notes Payable $2,990,000
Interest Expense=$2,990,000 x 3%=$89,700
Match the items below by entering the appropriate code letter in the space provided.A twelve month accounting periodExpenses paid before they are incurredCost less accumulated depreciationDivides the economic life of a business into artificial time periodsA contra asset accountRecognition of revenue when the performance obligation is satisfiedRevenues recognized but not yet receivedExpenses incurred but not yet paidA cost allocation processAn optional tool which facilitates the preparation of financial statements.A temporary account used in the closing process.Balance sheet accounts whose balances are carried forward to the next period.Entries at the end of an accounting period to transfer the balances of temporary accounts to a permanent stockholders’ equity account.Entries to correct errors made in recording transactions.The exact opposite of an adjusting entry made in a previous period.A. Fiscal yearB. Income SummaryC. Revenue recognition principleD. Closing entriesE. Accrued expensesF. Accumulated depreciationG. Book valueH. Prepaid expensesI. WorksheetJ. Accrued revenuesK. Reversing entryL. DepreciationM. Time period assumptionN. Correcting entriesO. Permanent accounts
Answer:
A. Fiscal year: A twelve month accounting period.
H. Prepaid expenses: Expenses paid before they are incurred.
G. Book value: Cost less accumulated depreciation.
M. Time period assumption: Divides the economic life of a business into artificial time periods.
F. Accumulated depreciation: A contra asset account
C. Revenue recognition principle: Recognition of revenue when the performance obligation is satisfied.
J. Accrued revenues: Revenues recognized but not yet received.
E. Accrued expenses: Expenses incurred but not yet paid.
L. Depreciation: A cost allocation process.
I. Worksheet: An optional tool which facilitates the preparation of financial statements.
B. Income Summary: A temporary account used in the closing process.
O. Permanent accounts: Balance sheet accounts whose balances are carried forward to the next period.
D. Closing entries: Entries at the end of an accounting period to transfer the balances of temporary accounts to a permanent stockholders' equity account.
N. Correcting entries: Entries to correct errors made in recording transactions.
L. Reversing entry: The exact opposite of an adjusting entry made in a previous period.
The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, "I don’t have time." You have been asked to prepare a reconciliation and review the procedures with the bookkeeper. The April 30, Current Year, bank statement and the April ledger account for cash showed the following (summarized):
Bank Statement
Checks Deposits Balance
Balance, April 1, 2014 $37400 32,700
Deposits during Apri 1,340 70,100
Interest collected 71,440
Checks cleared during April $45,600 25,840
NSF check-A. B. Wright 270 25,570
Bank service charges 230 25,340
Balance, April 30, 2014 25,340
Cash (A)
Apr. 1 Balance 24,700
Apr Deposits 43,500
Apr. Checks written 42,100
A comparison of checks written before and during April with the checks cleared through the bank showed outstanding checks at the end of April of $4,500. No deposits in transit were carried over from March, but a deposit was in transit at the end of April.
Answer:
Bank balance April 30 $25,340
+ deposits in transit $6,100
- outstanding checks $4,500
Adjusted total $26,940
Account balance April 30 $26,100
+ interests $1,340
- NSF check $270
- bank service fees $230
Adjusted total $26,940
In order to verify that we have reconciled our bank statement correctly, we must compare it to the reconciliation of the cash account. If both balances are the same (in this case $26,940), then we did the reconciliation correctly.
Required journal entries:
to record NSF check
Dr Accounts receivable 270
Cr Cash 270
to record earned interests
Dr Cash 1,340
Cr Interest revenue 1,340
to record bank fees
Dr Bank service fees 230
Cr Cash 230
The Assembly Department of Interface, Inc., manufacturer of computers, had 1 comma 500 units of beginning inventory in September, and 9 comma 000 units were transferred to it from the Production Department. The Assembly Department completed 4 comma 500 units during the month and transferred them to the Packaging Department. The weightedminusaverage method is used. Calculate the total number of units to account for by the Assembly Department.
Answer:
The correct answer is 10,500 Units
Explanation:
Solution:
Given that:
Now
Beginning WIP inventory in September = 1500
Units transferred in from Production Department = 9000
The next step is to calculate the total number of units to account for by the Assembly Department.
Hence,
The WIP inventory beginning in September + The Units transferred in from Production Department
= 1500 + 9000 = 10,500 units
New World Deli exchanged land for a more suitable parcel of land to be used for a new restaurant. New World Deli reported the old land at its original cost of $85,000. According to an independent appraisal, the old land currently is worth $110,000. New World Deli paid $15,000 in cash to complete the transaction. Required:Record the exchange.
Answer: Please refer to Explanation
Explanation:
New World Dell exchanged old land for new land.
In the exchange, the old land was considered to be worth $110,000 according to an independent appraisal and yet New World Dell still had to pay an additional $15,000 to get it. This means that the new land is valued at,
= 110,000 + 15,000
= $125,000
The old land was however recorded at cost for New Dell so the properly recording would be,
DR Land, New $125,000
CR Land, Old $85,000
CR Cash $15,000
CR Gain on Exchange $25,000
(To record Exchange of land)
There is a gain because the old land was valued at $25,000 more than New World Dell had valued it for themselves.
A Company is evaluating rental prices. Historical data show that Friday and Saturday have twice the rentals of other days of the week. The following information pertains to the store's normal operations per week: Average rentals per day on Friday and Saturday 1,350 Average rentals per day on Sunday through Thursday 600 Store hours per day 10 Total units available for rent 10,000 Variable operating costs per hour $43 Marketing costs per week $1,800 Customer service costs per week $250 The store manager wants to charge more for rentals on Friday and Saturday. What is the minimum price that should be charged during peak rental days? (Round your answer to the nearest cent.)
Answer:
$1.01
Explanation:
For computing the minimum price first we need to find the following things which are shown below:
1. Variable operating cost per week.
= Variable operating costs per hour × Store hours per day × number of days
= $43 × 12 hours per day × 7 days
= $3,612
2. Now total cost per week is
Total cost per week = Variable operating costs per week + Marketing costs per week + Customer service costs per week
= $3,612 + $1,900 + $250
= $5,762
3. After calculating, the minimum price is
= Total costs per week ÷ Rental per week
where,
Total cost per week is $5,762
And, the rental per week is
= ($1,350 × 2 days) + ($600 × 5 days)
= $2,700 + $3,000
= $5,700
So, the minimum price is
= $5,762 ÷ $5,700
= $1.01
Nick’s Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $300,000, have an eight-year useful life, and have a total salvage value of $20,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 200,000 Less operating expenses: Commissions to amusement houses $ 100,000 Insurance 7,000 Depreciation 35,000 Maintenance 18,000 160,000 Net operating income $ 40,000 Garrison 16e Rechecks 2017-05-22 Exercise 12-8 Part 2 2a. Compute the simple rate of return promised by the games. 2b. If the company requires a simple rate of return of at least 12%, will the games be purchased?
Answer:
13.33%
Yes , the recent games should be purchased.
Explanation:
Relevant data provided to figure out the simply rate of return is here below:-
Net income = $40,000
Initial investment = $300,000
As per the given question the solution of simple rate of return is provided below:-
Simple rate of return = Net income ÷ Initial investment × 100
= $40,000 ÷ $300,000 × 100
= 0.13333 × 100
= 13.33%
The recent games should be purchased for the reason that simple rate of return exceed least rate of return = Simple rate of return - Least simple rate of return
= 13.33% - 12%
= 1.33%
Crane Co. incurred research and development costs in 2021 as follows: Materials used in research and development projects $ 945000 Equipment acquired that will have alternate future uses in future research and development projects 2950000 Depreciation for 2021 on above equipment 491666 Personnel costs of persons involved in research and development projects 745000 Consulting fees paid to outsiders for research and development projects 295000 Indirect costs reasonably allocable to research and development projects 220000 $5646666 The amount of research and development costs charged to Crane's 2021 income statement should be
Answer:
The amount of research and development costs charged to Crane's 2021 income statement = $2,696,666
Explanation:
Materials used in research and development projects = $945,000
Equipment acquired that will have alternate future uses in future research and development projects = $2,950,000
Depreciation = $491,666
Personnel costs = $745,000
Consulting fees = $295,000
Indirect costs = $220,000
The amount of research and development costs charged to Crane's 2021 income statement would be:
Materials used + Depreciation for 2021 + Personnel costs + Consulting fees + Indirect costs
= $945,000 + $491,666 + $745,000 + $295,000 + $220,000
= $2,696,666
Therefore, the amount of research and development costs charged to Crane's 2021 income statement =$2,696,666
If an email message is going _________of the organization, the writer should include a salutation that can simply state the individual's name.
Options:
1) Inside
2) Outside
3) Inside and Outside
4) All of the Above
Answer:
2) Outside
Explanation:
When writing an email, let's say the email is going outside of the the company, the name, salutation are suppose to be included so as to indicted who the email is meant for, without indicating the name, it would not be known who the email is meant for, since the email is going outside the organization and not within it.
Answer:
1) Inside
Explanation:
When a mail is being sent the salutation used is dependent on if the recipient is internal or external.
A more casual salutation is used for internal recipients like colleagues or team mates, with the first name of the person stated then comma.
For example Hi John,
For external recipients it is more formal. It can be in the format Dear (Title) (Name) and then comma.
For example Dear Mr. Samuel,
Departmental overhead rates LO P2 Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and trimming, before they are ready for packaging. Expected costs and activities for the molding department and for the trimming department for this year follow. (Round "OH rate and cost per unit" answers to 2 decimal places.) Direct Labor hours Machine hours Overhead costs Molding Trimming 52,000 DLH 48,000 DLH 30.500 MH3 , 600 MH 6752,000 $612,000 Data for two special-order parts to be manufactured by the company in this year follow: N Part 270 9.300 units Part XB2B 54,500 units ot units Machine Tours Maldin Terming Direct labor hours Molding Trening 5,100 MH 2.600 MIL 1.020 MH 650 MH 5,500 DL 700D 2,150 DLH , 500D
Required:
1. Compute a departmental overhead rate for the molding department based on machine hours and a department overhead rate for the trimming department based on direct labor hours. Molding 01 Trimming
2. Determine the total overhead cost assigned to each product line using the departmental overhead rates from requirement 1,
3. Determine the overhead cost per unit.
Answer:
Explanation:
Textra Plastics
All Amounts in $
1. Departmental Overhead Rate
Modelling Department
Overhead Costs 730000
Machine Hours worked 30500 MH
Overhead Rate/Machine Hour 23.93 per machine hour
Trimming Department
Overhead Costs 590000
Direct Labor Hours 48000 DLH
Overhead Rate/Machine Hour 12.29 per direct labor hour
2. Total Overhead Cost assigned to each product line
Part A27C Activity Departmental For Total Overhead
Driver OH Rate each Cost
Molding Machine Hours 23.93 Machine Hour 122065.57 = 5,100 MH X 23.93
Trimming Direct Labor Hours 12.29 Direct Labor Hour 8604.17 = 700 DLH X 12.29
Total Overheads 130669.74 For 9,800 units
Overhead per unit 13.33
Part X82B Activity Departmental For Total Overhead
Driver OH Rate each Cost
Molding Machine Hours 23.93 Machine Hour 24413.11 = 1,020 MH X 23.93
Trimming Direct Labor Hours 12.29 Direct Labor Hour 43020.83 = 3,500 DLH X 12.29
Total Overheads 67433.95 For 54,500 units
Overhead per unit
Answer:
1-Departmental Overhead Rate Molding $ 221.38 per machine hour
Trimming Department $ 12.75 per DLH
2- Total overhead cost $140 8395.6
3- Overhead cost per unit.
$ 112.36 per unit of N Part 270
$ 4.96 per unit of Part XB2B
Explanation:
Direct Labor hours Machine hours Overhead costs
Molding 52,000 DLH 30,500 MH 6752,000
Trimming 48,000 DLH 3 , 600 MH $612,000
Total 100,000 DLH 34,100 MH $7364,000
N Part 270 Part XB2B
Units 9,300 54,500
Machine Hours
Molding 5,100 1.020
Trimming 2,600 650
Direct Labor Hours
Molding 5,500 2150
Trimming 700 3,500
We divide the Costs with the cost drivers to get the rates.
1-Departmental Overhead Rate
1) Molding Department = Overhead Costs/ Machine Hours
= 6752,000/ 30,500= $ 221.377= $ 221.38 per machine hour
2) Trimming Department= Overhead Costs/ Direct Labor Hours
=$612,000 /48,000 DLH = $ 12.75 per DLH
Now we multiply the cost drivers with the rates to get the overheads costs.
2- Total overhead cost= $ 1137963 + $ 270432.6= $140 8395.6
N Part 270 =$ 1129038 + $ 8925= $ 1137963
Molding = $ 221.38 *5,100 = $ 1129038
Trimming= $ 12.75 *700= $ 8925
Part XB2B= $ 225807.6 + $ 44625= $ 270432.6
Molding= $ 221.38 *1020 = $ 225807.6
Trimming= $ 12.75 *3500= $ 44625
We divide the overhead cost for each product with the number of units to get the unit costs.
3- Total Overhead Rate N Part 270 = Total Overhead Cost/ Units Produced
=$ 1137963 / 9300 = $ 112.36 per unit of N Part 270
Total Overhead Rate Part XB2B = Total Overhead Cost/ Units Produced
=$ 270432.6/54,500= $ 4.96 per unit of Part XB2B
Coronado manufactures competition stunt kites. In November, Jerry Box prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. January February March Quarter Budgeted unit Sales 24,100 39,300 32,200 95,600 Budgeted ending inventory 7,860 6,440 2,870 2,870 Total units required 31,960 45,740 35,070 98,470 Beginning inventory 4,820 7,860 6,440 4,820 Budgeted production 27,140 37,880 28,630 93,650 Following higher-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had only 2,260 completed kites on hand. He decided that given the brisk sales in December, the company should increase its desired ending inventory level from 20 to 25 percent of the next month's sales volume. Prepare a new production budget for the first quarter. (Round answers to 0 decimal places, e.g. 5,275.) January February March Quarter
Answer:
New Production Budget:
January February March Quarter
Budgeted unit Sales 24,100 39,300 32,200 95,600 Budgeted ending inventory 9,825 8,050 3,588 3,588 Total units required 33,925 47,350 35,788 99,188 Beginning inventory 6,025 9,825 8,050 6,025 Budgeted production 27,900 37,525 27,738 93,163
Explanation:
a) Prepared Production Budget:
January February March Quarter
Budgeted unit Sales 24,100 39,300 32,200 95,600 Budgeted ending inventory 7,860 6,440 2,870 2,870 Total units required 31,960 45,740 35,070 98,470 Beginning inventory 4,820 7,860 6,440 4,820 Budgeted production 27,140 37,880 28,630 93,650
b) Budgeted Ending Inventory changed from 20% to 25% of the next month's sales. The April sales was estimated using the ending inventory of March for the prepared budget. This is calculated as follows:
Sales for April = 2,870/20% = 14,350 units
Therefore, the March ending inventory for the new production budget is equal to 25% of 14,350 = 3,588 units.
c) Production budget is an estimate of the units to be produced based on the sales forecast, desired ending inventory (safety stock to cover for unexpected increases in sales) and the period's beginning inventory level.
Determine whether each survey question is biased or unbiased. If biased, explain your reasoning. Do you prefer watching exciting football games or sitting through choir recitals?
1. biased; the question addresses more than one issue.
2. biased; the question encourages a certain response.
3. unbiased biased; the question causes a strong reaction.
Answer: 2. biased; the question encourages a certain response.
Explanation:
The question is biased because it already makes assumptions of the two activities.
It labels football games as EXCITING whilst asking if one would 'SIT THROUGH' choir recitals which is a way of saying that the choir recitals are BORING.
This question therefore elicits a certain response as most people would go with the Exciting activity so as not to be seen as boring people who would go to choir recitals.
A fast internationalization strategy for better generation has some associated risks. What are these risks?
Answer: Political risks eg High taxes
Economic risks eg fluctuation of exchange in currency.
Please see below for further explanation.
Explanation:
Internationalization strategy is the plan by an organization to expand beyond the domestic market to become globally visible in another country or countries market.
The risks associated Associated when a company, better generation tries to expand globally include
1.)Political risks:Political risk occurs when target countries policies change or fluctuates in such a way to negatively affect a business.
Some of the political risks include
---Instability in foreign country's governments due to corruption
---Government regulations eg High taxation, High tariff quotas
-----Trade barriers etc.
2.Economic Risks here refers to the conditions in the foreign nation's economy that affect a company's financial gains.
Some of the Economic risk include
-fluctuations in the value of currencies exchange.
-Inflation
-Quality of basic infrastructure in terms of electricity, transportation, accessible to water etc as the case may be.
--Labor and differences in wages.
If you can download 10 ring tones for your cell phone
for $15 or you could download 11 ring tones for
your cell phone for $16, then the marginal cost of the
eleventh ring tone is
Answer:
Marginal cost of eleventh ring tone = $1
Explanation:
Given:
Cost of 10 ringtone = $15
Cost of 11 ringtone = $16
Find:
Marginal cost of eleventh ring tone = ?
Computation:
Marginal cost = change in cost / change in quantity
Marginal cost of eleventh ring tone = change in total cost / change in number of ringtone
Marginal cost of eleventh ring tone = ($16 - $15) / (11 - 10)
Marginal cost of eleventh ring tone = $1 / 1
Marginal cost of eleventh ring tone = $1
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available.
Product G Product B
Selling price per unit $150 $180
Variable costs per unit 60 108
Contribution margin per unit $90 $72
Machine hours to produce 1 unit 0.4 hours 1.0 hours
Maximum unit sales per month 550 units 200 units
The company presently operates the machine for a single eight-hour shift for 22 working days each month. Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month. This change would require $9,000 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.)
Required:
1. Determine the contribution margin per machine hour that each product generates.
2. How many units of product G and product B should the company produce if it continues to operate with only one shift? How much total contribution margin does this mix produce each month?
Answer:
Product G Product B
Selling price per unit $150 $180
Variable costs per unit $60 $108
Contribution margin per unit $90 $72
Machine hours to produce 1 unit 0.4 hours 1.0 hours
Maximum unit sales per month 550 units 200 units
1)
Contribution margin per = $90 / 0.4 = $72 / 1
machine hour = $225 = $72
2)
total operating hours per 176 hours
month
units produced 440 units 0 units
contribution margin $39,600 $0
Since Product G generates a much higher contribution margin per machine hour, all the available machine hours (176) should be used to produce it. That would result in 440 units produced and $39,600 generated as contribution margin.
The city of Trenton, New Jersey, passed an ordinance making it unlawful to use any form of sound amplification on the city streets. A city prosecutor, Charles Kovac, mounted an amplifier on a truck through which he played music and spoke on the microphone while driving on city streets. Kovac was tried and convicted in the Trenton Police Court and fined fifty dollars. Kovac appealed, arguing that the ordinance violated his rights of free speech and free assembly, The city claimed that the ordinance served a legitimate governmental function in keeping the city streets safe and orderly and did not prohibit free speech or assembly. How would a court likely rule in regards to the ordinance?
a. The court probably found that the ordinance was unconstitutional as an unreasonable restriction on fundamental rights.
b. The court probably found that the ordinance was unconstitutional under the equal protection clause.
c The court probably found that the ordinance was constitutional under the establishment cause.
d. The court probably found that the ordinance was constitutional as a reasonable restriction on fundamental rights.
Answer: d. The court probably found that the ordinance was constitutional as a reasonable restriction on fundamental rights.
Explanation: Human rights maybe defined as the basic right that all human should be guaranteed by virtue of them being human, while an ordinance is given as a local law. The ruling of the court in regards to the ordinance would be that the ordinance was constitutional as a reasonable restriction on fundamental rights. This is because the ordinance was already in place to keep the city streets safe and orderly to which Charles Kovac flouted and as such was convicted.
Answer:
the answer would be D
Explanation:
The court probably found that the ordinance was constitutional as a reasonable restriction on fundamental rights.
Consider the following situations for Shocker:
a) On November 28, 2021, Shocker receives a $4,500 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited.
b) On December 1, 2021, the company pays a local radio station $2,700 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited.
c) Employee salaries for the month of December totaling $8,000 will be paid on January 7, 2022.
d) On August 31, 2021, Shocker borrows $70,000 from a local bank. A note is signed with principal and 9% interest to be paid on August 31, 2022.
Required:
Record the necessary adjusting entries for Shocker at December 31, 2021. No adjusting entries were made during the year. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
Answer:
a.
Cash $4,500 (debit)
Deferred Revenue $4,500 (credit)
b.
Prepaid Advertising $2,700 (debit)
Cash $2,700 (credit)
c.
Salaries Expense $8,000 (debit)
Salaries Accrued $8,000 (credit)
d.
J1
Cash $70,000 (debit)
Note Payable $70,000 (credit)
J2
Interest Expense $2,100 (debit)
Note Payable $2,100 (credit)
Explanation:
a.
Recognize Cash and Deferred Revenue
b.
Recognize Asset - Prepaid Advertising and De-recognize Cash
c.
Recognize Salaries Expense and Recognize Salaries Accrued Liability
d.
J1
Recognize Cash Asset and Recognize Liability - Note Payable
J2
Recognize Interest income accrued on the Note Payable during September to December.
There are two firms in an industry. The industry demand curve is given by p = 3,600 - 4q. Each firm has one manufacturing plant and each firm i has a cost function C(q_i) = q^2_i, where q_i is the output of firm i. The two firms form a cartel and arrange to split total industry profits equally.
Required:
a) Under this cartel arrangement, they will maximize joint profits if ___________.
Answer:
Under this cartel arrangement, they will maximize joint profits if each of the firms produces 257.14 units and sells at $1,542.88 per unit.
Explanation:
p = 3,600 - 4q ..................................................... (1)
C(q_i) = q_i^2 ………………………………… (2)
MC_i = dC(q_i)/dq = 2q_i ……………………. (3)
Since q = q_1 + q_2, we have:
p = 3,600 - 4(q_1 + q_2)
p = 3,600 - 4q_1 - 4q_2 .................................... (4)
For Firm 1:
TR_1 = p * q_1 = (3,600 - 4q_1 - 4q_2)q_1
TR_1 = 3,600q_1 - 4q_1^2 - 4q_2q_1
MR_1 = dTR_1/dq_1 = 3,600 - 8q_1 - 4q_2
From equation (3), MC_1 = 2q_1
Since at the optimum MC_1 = MR_1, we have:
2q_1 = 3,600 - 8q_1 - 4q_2
10q_1 = 3,600 - 4q_2
q_1 = (3,600 - 4q_2)/10
q_1 = 360 - 0.4q_2 .......... (5)
For Firm 2:
TR_2 = p * q_2 = (3,600 - 4q_1 - 4q_2)q_2
TR_2 = 3,600q_2 - 4q_2q_1 - 4q_2^2
MR_2 = dTR_2/dq_2 = 3,600 - 4q_1 - 8q_2
From equation (3), MC_2 = 2q_2
Since at the optimum MC_2 = MR_2, we have:
2q_2 = 3,600 - 4q_1 - 8q_2
10q_2 = 3,600 - 4q_1
q_2 = (3,600 - 4q_1)/10
q_2 = 360 - 0.4q_1 .......... (6)
a. Calculation of Cournot equilibrium quantities
Substituting equation (6) for q_2 into equation (5), we have:
q_1 = 360 - 0.4(360 - 0.4q_1)
q_1 = 360 – 144 + 0.16q_1
q_1(1 – 0.16) = 216
q_1 = 216 / 0.84
q_1 = 257.14 <------------- Cournot equilibrium quantity for firm 1
Substitute for q_1 in equation (6), we have:
q_2 = 360 - 0.4(257.14)
q_2 = 360 – 102.86
q_2 = 257.14 <------------- Cournot equilibrium quantity for firm 2
b. Calculation of Cournot equilibrium price
Substitute for q_1 and q_2 into equation (4), we have:
p = 3,600 – 4(257.14) – 4(257.14)
p = 1,542.88
Therefore, under this cartel arrangement, they will maximize joint profits if each of the firm produces 25.14 and sells at $1,542.88 per unit.
The buyer for the housewares department purchased 40 blenders which retailed for $200 each. Eight blenders sold at the $200 price. For a special sales event, 32 remaining blenders were marked down to $140 each. Ten of the blenders were sold during the sale, and the remaining 22 blenders were marked back up to the original $200 unit price. All of the remaining blenders sold at the orignal price.
Required:
1. Calculate the total markdown dollars.
Answer:
The total markdown dollars is $1,920
Explanation:
According to the given data 32 remaining blenders were marked down to $140 each.
Therefore, to calculate the total markdown dollars we would have to make the following calculation according to the given data:
the total markdown dollars=32*($200-$140)
the total markdown dollars=32*$60
the total markdown dollars=$1,920
The total markdown dollars is $1,920
The Merchant Company issued 10-year bonds on January 1. The 15% bonds have a face value of $100,000 and pay interest every January 1 and July 1. The bonds were sold for $117,205 based on the market interest rate of 12%. Merchant uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Merchant should record interest expense (round to the nearest dollar) of:__________.
a) $7,032
b) $8,790
c) $14,065
d) $7,500
Answer:
c) $14,065
Explanation:
Because I said so
Sunland Corporation produces outdoor portable fireplace units. The following per unit cost information is available: direct materials $18, direct labor $22, variable manufacturing overhead $13, fixed manufacturing overhead $27, variable selling and administrative expenses $7, and fixed selling and administrative expenses $17. The company's ROI per unit is $16. Compute Sunland Corporation’s markup percentage using absorption-cost pricing. Absorption-cost pricing markup percentage % Compute Sunland Corporation’s markup percentage using variable-cost pricing. (Round answer to 2 decimal places, e.g. 10.50%.) Variable-cost pricing markup percentage %
Answer:
Mark-up;
Absorption costing=20%
Variable costing pricing = 26.7%
Explanation:
Absorption costing values production units using full cost per unit.
Full cost per unit= Direct material cost + Direct Labour cost + Variable production overhead+ Fixed production overhead
Absorption costing =18 + 22+ 27+13= 80
Mark-up = ROi/cost per unit× 100
= 16/80 ×100= 20%
Variable costing pricing
Here products are valued using the variable cost of production.
18 + 22+ 13+ 7= 60
Mark-up = 16/60× 100= 27%
Mark-up;
Absorption costing= 20%
Variable costing pricing =26.7%
On November 1, 2021, Warren Co. adopted a plan to discontinue its barge division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by April 30, 2022. On December 31, 2021, the company's year-end, the following information relative to the discontinued division was accumulated:Operating loss Jan. 1–Dec. 31, 2021 $ 74 million Estimated operating losses, Jan. 1 to April 30, 2022 96 million Excess of fair value, less costs to sell, over book value at Dec. 31, 2021 11 million In its income statement for the year ended December 31, 2021, Warren would report a before-tax loss on discontinued operations of:A. $170 million.B. $159 million.C. $74 million.D. $63 million.
Answer:
C. $74 million
Explanation:
The computation of before-tax loss on discontinued operations is shown below:-
Before-tax loss on discontinued operations = Operating loss (From Jan 1 to 31 Dec 2021)
= $74 million
Here, the assets are not impaired, because the fair value is greater than the book value. So, $74 million can be recorded as it is the operating loss and the same is to be considered
Coronado Family Instruments makes cellos. During the past year, the company made 6,370 cellos even though the budget planned for only 5,500. The company paid its workers an average of $15 per hour, which was $1 higher than the standard labor rate. The production manager budgets four direct labor hours per cello. During the year, a total of 25,000 direct labor hours were worked.
Calculate the direct labor rate and efficiency variances. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
Answer:
Instructions are below.
Explanation:
Giving the following information:
Production= 6,370 cellos
The Budget production= 5,500.
The company paid its workers an average of $15 per hour, which was $1 higher than the standard labor rate.
The production manager budgets four direct labor hours per cello. During the year, a total of 25,000 direct labor hours were worked.
To calculate the direct labor rate and efficiency variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (4*6,370 - 25,000)*14
Direct labor time (efficiency) variance= $6,720 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (14 - 15)*25,000
Direct labor rate variance= $25,000 unfavorable
For each of the following financial ratios that are based on comprehensive annual financial report (CAFR) information by selecting the appropriate letter of the explanation for that ratio. Answers can only be used once.
A. An indicator of interperiod equity.
B. An indicator of the government’s commitment to replacement of capital assets.
C. An indicator of the government’s reliance on revenues it does not directly control.
D. A measure of the degree to which government assets have been funded with debt.
E. An indicator of the government’s ability to pay its 60- to 90-day obligations.
F. A measure of the government’s capacity to issue debt.
G. A measure of capital asset useful service life.
H. A measure of the government’s liquidity.
I. An indicator of taxpayer debt burden.
J. An indicator of the government’s ability to withstand financial emergencies.
Ratio
1. General fund balances/General Fund operating revenues
2. (Cash + short-term investments)/Current liabilities
3. General obligation long-term debt/Assessed valuation
4. Capital outlay from operating funds/Operating expenditures
5. General bonded debt Legal debt limit
6. Accumulated depreciation/Average cost of depreciable assets
7. Net revenues/Total expenses
8. Charges for services/Total revenues
9. Total liabilities/Total assets
10. Current assets/Current liabilities
Answer:
An indicator of interperiod equity.
Net revenues/Total expenses
An indicator of the government's commitment to replacement of capital assets
Capital outlay from operating funds/Operating expenditures
An indicator of the government's reliance on revenues it does not directly control.
. Non-tax revenues/Total revenues
A measure of the degree to which government assets have been funded with debt.
Total liabilities/Total assets
An indicator of the government's ability to pay its 60 to 90-day obligations.
(Cash + short-term investments)/Current liabilities
A measure of the government's capacity to issue debt.
General bonded debt/Legal debt limit
A measure of capital asset useful service life.
Accumulated depreciation/Average cost of depreciable assets
A measure of the government's liquidity.
Current assets/Current liabilities
An indicator of taxpayer debt burden.
General obligation long-term debt/Assessed valuation
An indicator of the government's ability to withstand financial emergencies
General fund balances/Operating revenues
Suppose the following items were taken from the December 31, 2017, assets section of the Boeing Company balance sheet. (All dollars are in millions.)
Inventory $16,933
Patents $12,528
Notes receivable—due after December 31, 2018 5,466
Buildings 21,579 Notes receivable—due before December 31, 2018 368
Cash 9,215
Accumulated depreciation—buildings 12,795
Accounts receivable 5,785
Debt investments (short term) 2,008
Required:
1. Prepare the assets section of a classified balance sheet, listing the current assets in order of their liquidity.
Answer:
Inventory $16,933
Notes receivable—due before December 31, 2018 368
Debt investments (short term) 2,008
Accounts receivable 5,785
Cash 9,215
Explanation:
Current Assets Section consists of Asset items that can be converted into cash within the period of 12 months.
Conversion happens in order of liquidity. Which means how much cash can be realized from conversion of a non-monetary asset in short term.
The order is given as below:
Inventory $16,933
Notes receivable—due before December 31, 2018 368
Debt investments (short term) 2,008
Accounts receivable 5,785
Cash 9,215
At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $95 million attributable to a temporary book-tax difference of $380 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $288 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2021 is $684 million and the tax rate is 25%. Required: 1. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full. 2. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized.
Answer:
See the explanation below.
Explanation:
1. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full.
Details Dr ($'Million) Cr ($'Million)
Income tax expenses 194
Deferred Tax Assets 23
Income Tax Payable 171
To record income tax expense for 2021 and deferred tax assets reversed for temporary differences reversal
Note the calculations:
Amount credited to Deferred Tax Assets = ($380 - $288) * 25% = $23 million
Amount credited to Income Tax Payable = $684 * 25% = $171 million
2. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized.
Details Dr ($'Million) Cr ($'Million)
Income tax expenses 194
Deferred Tax Assets 23
Income Tax Payable 171
To record income tax expense for 2021 and deferred tax assets reversed for temporary differences reversal.
Income tax expenses 54
Valuation Allowance - Deferred Tax Assets 54
To record valuation allowance for deferred tax assets. .
Note the calculations:
Amount credited to Valuation Allowance - Deferred Tax Assets = ($288 * (3/4)) * 25% = $54 miillion.
The term "benchmarking" as it relates to the hotel industry refers to a line-by-line analysis of an operating statement, comparing metrics for hotels of similar size or profile
Answer:
The term "benchmarking" as it relates to the hotel industry refers to comparing metrics for hotels of similar size or profile.
Explanation:
a) Benchmarking is a process wherein a company's products, services, business processes, or performance metrics are compared with a “best in class” competitor. The purpose of benchmarking is to enable organizations to make improvements by adapting specific best practices. A retail shop's metrics can be compared with the leading retail shop in your area. Given the deep insight gathered from benchmarking, this retail shop can decide to alter its line of products, the way it competes in the marketplace, or to undertake some improvements in her business processes.
There are four types of benchmarking, including internal, competitor, functional, and generic. Internal benchmarking is limited to internal processes. Competitor benchmarking compares one company's processes, products, or services to another. Functional benchmarking compares one function of an entity to another entity's. While generic benchmarking compares unrelated companies' processes or functions.
Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit.
Actual Budgeted
Units sold 991,000 1,000,000
Variable costs 1,280,000 1,500,000
Fixed costs 955,000 905,000
Prepare the actual income statement, flexible budget, and static budget.
Answer:
Actual Budgeted
Units sold 991,000 1,000,000
Variable costs 1,280,000 1,500,000
Fixed costs 955,000 905,000
Actual Results Flexible Budget Static Budget
Units sold 991,000 991,000 1,000,000
Revenues $9,910,000 $9,910,000 $10,000,000
Variable costs -$1,280,000 -$1,486,500 -$1,500,000
Contr. margin $8,630,000 $8,423,500 $8,500,000
Fixed costs -$955,000 -$905,000 -$905,000
Operating income $7,675,000 $7,518,500 $7,595,000
The static budget only considers standard revenue (units sold and price) and costs (both variable and fixed). While a flexible budget will be calculated using standard costs but with actual units sold and produced. Both static and flexible budgets use the same fixed costs, only variable costs and revenues differ.
29. The difference between noninterest income and noninterest expenses on a bank's Report of Income is
called:
A. Net Profit Margin
B. Net Interest Income
C. Net Income After Provision for Possible Loan Losses
D. Income or Loss Before Income Taxes
E. Net Noninterest Income