Pastina Company sells various types of pasta to grocery chains as private label brands. The company's fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2018, appears below.
Account Title Debits Credits
Cash 45,650
Accounts receivable 58,000
Supplies 1,850
Inventory 77,000
Note receivable 29,400
Interest receivable 0
Prepaid rent 2,700
Prepaid insurance 0
Office equipment 94,000
Accumulated depreciation—office equipment 35,250
Accounts payable 37,000
Salaries and wages payable 0
Note payable 71,400
Interest payable 0
Deferred revenue 0
Common stock 60,000
Retained earnings 23,000
Sales revenue 233,000
Interest revenue 0
Cost of goods sold 104,850
Salaries and wages expense 20,100
Rent expense 14,850
Depreciation expense 0
Interest expense 0
Supplies expense 1,350
Insurance expense 6,200
Advertising expense 3,700
Totals 459,650 459,650
Information necessary to prepare the year-end adjusting entries appears below.
1) Depreciation on the office equipment for the year is $11,750.
2) Employee salaries and wages are paid twice a month, on the 22nd for salaries and wages earned from the 1st through the 15th, and on the 7th of the following month for salaries and wages earned from the 16th through the end of the month. Salaries and wages earned from December 16 through December 31, 2018, were $1,650.
3) On October 1, 2018, Pastina borrowed $71,400 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years.
4) On March 1, 2018, the company lent a supplier $29,400 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2019.
5) On April 1, 2018, the company paid an insurance company $6,200 for a two-year fire insurance policy. The entire $6,200 was debited to insurance expense.
6) $980 of supplies remained on hand at December 31, 2018.
7) A customer paid Pastina $1,920 in December for 1,600 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue.
8) On December 1, 2018, $2,700 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019, at $1,350 per month.
Answers
Answer:
1) The net income for the period ended December 31, 2018, is 68103.
2)The total liabilities and stockholders equity is 261615.
Explanation:
1) 1920 sales revenue is an unearned revenue since delivery will be made in 2019
Interest payable on note oct 1 :Interest =[tex]71400\times.12\times3/12=2142[/tex] [1 Oct - 31 Dec]
Interest receivable on march 1 :Interest= [tex]29400\times.08\times10/12=1960[/tex] [1 Mar -31 -Dec]
Supplies used = 1850 unadjusted -980 ending inventory = 870
Insurance expired for the period =[tex][6200\times1/2 ] =3100 per year \times 9/12 =2325[/tex] [1april -31 dec ]
Related Questions
g The fundamental limitation of a matrix structure is that it ________. A. introduces more errors in the decision-making process due to the speed of the process B. institutes a dual hierarchy that violates the unity-of-command principle C. isolates upper management from operational levels D. creates a poor organizational culture
Answers
Answer:
The correct answer is the option B: Institutes a dual hierarchy that violates the unity-of-command principle.
Explanation:
To begin with, in the business management field the concept known as "Matrix structure" or matrix management as well is refered to the dynamic way of organizating the company that has the characteristic of having the employees of the business answering directly to two or more superiors of leaders instead of just one. Therefore that in this type of organizational structure sometimes the matters of certain departments tend to interfere or collide with the objectives of others. That is the main reason why it does violates the principle of unity-of-command described in the organizational theory.
On May 25, after the transactions had been posted, Adams discovered that the following entry contains an error. The cash received represents a collection on account, rather than new service fees.
20--
May 23 Cash 101 1,270
Service Fees 401 1,270
Received cash for services previously earned
Correct the error in the general journal using the correcting entry method. If an amount box does not require an entry, leave it blank.
Answers
Answer:
With the correcting entry method, the wrongly posted account will transfer the amount that was to be posted elsewhere to the place it was to be posted in. In this case the posting was to be to Accounts Receivable not Service fees so:
Date Account Title Debit Credit
May 23 Service Fees $1,270
Accounts Receivable $1,270
At the end of business on September 1, the total displayed on the cash register tape shows $1,059 of cash sales for the day. However, when the clerk and the supervisor count the cash in the register, the count reveals that $1,050 was actually collected from customers.
Complete the journal entry.
Answers
Answer:
Date Account Title Debit Credit
Sept. 1 Cash $1,050
Cash short and over $ 9
Sales $1,059
Cash short and over is calculated thus:
= 1,059 - 1,050
= $9.00
Mellilo Corporation issued $4.7 million of 20-year, 9.5 percent bonds on July 1, 2021, at 98. Interest is due on June 30 and December 31 of each year, and all of the bonds in the issue mature on June 30, 2041. Mellilo's fiscal year ends on December 31. Prepare the following journal entries.
Answers
Answer:
On Issue date
July 1, 2021
Debit : Cash $4.606 million
Credit : Bonds Payable $4.606 million
Explanation:
The journal entry on Issue date include a debit of Cash and Credit to Bond Payable at discount price of 98 % ($4.606 million).
Fowler, Inc., just paid a dividend of $2.60 per share on its stock. The dividends are expected to grow at a constant rate of 5.75 percent per year, indefinitely. Assume investors require a return of 12 percent on this stock.
a. What is the current price?
b. What will the price be in four years and in sixteen years?
Answers
Answer:
a. Current price = $43.99
b. We have:
Price in four years = $52.03
Price in sixteen years = $101.76
Explanation:
a. What is the current price?
Using the Gordon Growth Model formula, we have:
Current price = (Dividend just paid * (100% + Dividend growth rate)) / (Rate of return – Dividend growth rate) = ($2.60 * (100% + 5.75%)) / (12% - 5.75%) = $43.99
b. What will the price be in four years and in sixteen years?
Using the Gordon Growth Model formula with an adjustment for number of years, we have:
Price in four years = (Dividend just paid * (100% + Dividend growth rate)^Number of years) / (Rate of return – Dividend growth rate) = ($2.60 * (100% + 5.75%)^4) / (12% - 5.75%) = $52.03
Price in sixteen years = (Dividend just paid * (100% + Dividend growth rate)^Number of years) / (Rate of return – Dividend growth rate) = ($2.60 * (100% + 5.75%)^16) / (12% - 5.75%) = $101.76
Lowden Company has a predetermined overhead rate of 160% and allocates overhead based on direct material cost.During the current period,direct labor cost is $50,000 and direct materials cost is $80,000.How much overhead cost should Lowden Company should apply in the current period?
A) $31,250.
B) $50,000.
C) $80,000.
D) $128,000.
E) $208,000.
Answers
Betty Vinson improperly capitalized line costs at her boss's direction. Which company did she work for
Answers
Answer: WorldCom
Explanation:
The WorldCom scandal of 2002 was the worst one in U.S. history and led to shareholders losing over $30 billion as a result of share prices falling drastically when it was revealed that the company had been making fraudulent accounting entries to look successful when it fact it had been losing money.
Betty Vinson was the company's Director of Corporate Reporting and her boss, CEO Bernie Ebbers, pressured her into making fraudulent entries because it was said that he "didn't want to disappoint Wall Street". This scandal was one of those that directly led to the Sarbanes-Oxley Act being passed.
Item 5At the end of the day, the cash register's record shows $2,050, but the count of cash in the cash register is $2,058. The correct entry to record the cash sales is
Answers
Answer:
Debit Cash $2,058; credit Cash Over and Short $8; credit Sales $2,050
Explanation:
The journal entry is shown below:
Cash Dr $2,058
To cash over and short $8
To sales $2,050
(Being the cash sales is recorded)
Here the cash is debited as it increased the assets and sales is credited as it increased the revenue and the difference is credited to the cash over and short
People with expertise tend to have more influence using ___, whereas those with a strong legitimate power base are usually more successful applying ___.
A. upward appeal; persuasion
B. silent authority; coalition formation
C. persuasion; silent authority
D. silent authority; assertiveness
E. information control; persuasion
Answers
Answer:
C. persuasion; silent authority
Explanation:
Influence tactics can be regarded as steps that can be taken by people in order to exert influence on others in a particular organization, thereby bringing about achieving their goals. If successfully applied, influence tactics can help junior managers or lower level that lack substantial sources of power to be able to exert impact on both behavior and decisions of others within that organization.
Silent Authority can be regarded as silent application of authority, which can be elaborated as when someone complies with a particular request as a result of the requester’s legitimate hierarchical power and role expectations of the target person. This condition is often been referred to as deference to authority. As regards to deference, it takes place, where one comply with ones boss in completion of particular task, let say this task falls within one's job scope and ones boss has the right in making this request, then we can say the influence strategy works without persuasion or negotiation.
As an expert ,one would have broad as well as deep competence in terms of knowledge, experience and skill, with help of practice and education in a specific field. Individuals that has expertise usually have influence with the use of persuasion.
Power provide a person or unit with
opportunity to exert influence as regards organizational outcomes. Influence can be regarded as power in action. It should be noted that People with expertise tend to have more influence using persuasion, whereas those with a strong legitimate power base are usually more successful applying silent authority.
what is balance of trade and balance of payment?
Answers
Answer:
the difference in value between a country's imports and exports.
is an accounting of a country's international transactions for a particular time period.
how to assess a peers written assignment
Answers
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Identify the simplifying assumptions usually made in net present value analysis.
a. AlI cash flows Other than the initial investment occur at the end of periods.
b. All cash flows generated by the investment project are immediately reinvested at a rate of return greater than the discount rate.
c. All cash flows generated by the investment project are immediately reinvested at a rate Of return equal to the discount rate,
d. All cash flows occur at the beginning of the periods,
e. The time value of money is ignored when evaluating investment proposals under the net present value analysis.
Answers
Answer:
a
c
Explanation:
net present value analysis is a capital budgeting method
It is used to analyse the profitability of an investment
Assume each firm within an industry has similar operations and financial structures as the industry as a whole. Which one of these statements related to beta is correct given this assumption?
a. Industry betas are less reliable than firm betas.
b. Firms should use their own betas rather than the industry beta.
c. Betas should be computed on an annual basis.
d. The error in beta estimation for a single security exceeds the error for a portfolio of securities.
e. All firms in the industry will have the same beta.
Answers
Answer: D. The error in beta estimation for a single security exceeds the error for a portfolio of securities.
Explanation:
If each firm within an industry has identical operations and thesame financial structures as the industry as a whole, then the error in beta estimation for a single security exceeds the error for a portfolio of securities.
It should be noted that all the firms in the industry will not have the same beta. Also, betas should not be computed on an annual basis. Therefore, the correct option is D.
Other things equal, compared to using the first-in-first-out (FIFO) inventory cost method, using the last-in-first-out (LIFO) method in a rising price environment will result in a higher:____________
A. quick ratio.
B. inventory turnover ratio.
C. gross profit margin.
Answers
Answer:
B. inventory turnover ratio.
Explanation:
My best guess is that the inventory turnover ratio will be greater when LIFO is used during rising price environment because COGS will be higher and the inventory costs will be lower under LIFO than under FIFO.
Hope its correct.
This article seems to agree to some extent: https://smallbusiness.chron.com/impact-inflation-inventory-turnover-66227.html
Imagine that I start a bar in Clemson. Each year I order $200,000 worth of food, beer and drink which is turned around and sold to customers. I also hire part-time staff, where the combined annual wages add up to $100,000. I also pay rent on my building which is $100,000 a year. Assume these are my only expenses. My bar is unusually successful and I generate $1,000,000 in revenue. How much does my bar contribute to GDP? (Hint: Think about using the national spending approach or the factor income approach. One is easier to use than the other)
a) $1,000,000
b) $1,300,000
c) $1,400,000
d) $1,200,000
Answers
Answer:
The correct option is a) $1,000,000.
Explanation:
Under factor income approach contribution to gross domestic product (GDP) is calculated by adding up wages, rent, interest, and profit.
Using the factor factor income approach, contribution to GDP can be determined as follows:
Purchases = $200,000
Wages = $100,000
Rent on building = $100,000
Expenses = Wages + Rent on building = $100,000 + $100,000 = $200,000
Revenue = $1,000,000
Profit = Revenue - Purchases - Expenses = $1,000,000 - $200,000 - $200,000 = $600,000
Contribution to GDP = Wages + Rent on building + Profit = $200,000 + $200,000 + $600,000 = $1,000,000
This implies that your bar contributes $1,000,000 to GDP. Therefore, the correct option is a) $1,000,000.
On January 1, Year 7, Colorado Corp. purchased a machine having an estimated useful life of 8 years and no salvage value. The machine was depreciated by the double-declining-balance (DDB) method for both financial statement and income tax reporting. On January 1, Year 9, Colorado justifiably changed to the straight-line method for both financial statement and income tax reporting. Accumulated depreciation at December 31, Year 8, was $525,000. If the straight-line method had been used, the accumulated depreciation at December 31, Year 8, would have been $300,000. The retroactive adjustment to the accumulated depreciation account on January 1, Year 9, as a result of the change in depreciation method is
Answers
Answer:
Colorado Corp.
The retroactive adjustment to the accumulated depreciation account on January 1, Year 9, as a result of the change in depreciation method is:
= $0.
Explanation:
a) Data and Calculations:
Accumulated depreciation at December 31, Year 8 based on double declining balance method = $525,000
Accumulated depreciation at December 31, Year 8 based on straight-line method = $300,000
The required adjustment to the accumulated depreciation account = $0 ($525,000 - $525,000)
b) The accumulated depreciation account does not require a retrospective adjustment. It will remain at $525,000 while the company continues to apply the straight-line method going forward. The change is called a change in accounting estimate and not a change in accounting principle that requires retrospective application and adjustment to the previous years' accounts.
The following information pertains to Sampson Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $ 45,000 Accounts receivable (net) 25,000 Inventory 11,000 Property, plant and equipment 210,000 Total Assets $291,000 Liabilities and Stockholders' Equity Current liabilities $ 50,000 Long-term liabilities 90,000 Stockholders' equity—common 151,000 Total Liabilities and Stockholders' Equity $291,000 Income Statement Sales $ 120,000 Cost of goods sold 55,000 Gross profit 65,000 Operating expenses 30,000 Net income $ 35,000 Number of shares of common stock 6,000 Market price of common stock $20 Dividends per share .50 What is the inventory turnover for Sampson? Group of answer choices 3,2 times 5 times 10.9 times 0.20 times
Answers
Answer:
Sampson Company
The inventory turnover for Sampson is:
5 times.
Explanation:
a) Data and Calculations:
Assets
Cash and short-term investments $ 45,000
Accounts receivable (net) 25,000
Inventory 11,000
Property, plant and equipment 210,000
Total Assets $291,000
Liabilities and Stockholders' Equity
Current liabilities $ 50,000
Long-term liabilities 90,000
Stockholders' equity—common 151,000
Total Liabilities and Stockholders' Equity $291,000
Income Statement Sales $ 120,000
Cost of goods sold 55,000
Gross profit 65,000
Operating expenses 30,000
Net income $ 35,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share $0.50
Inventory Turnover = Cost of goods sold/Average Inventory
= $55,000/$11,000
= 5 times
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.30 per unit. Bluebird currently produces and sells 75,000 units at $6.30 each. This level represents 80% of its capacity. Production costs for these units are $3.55 per unit, which includes $1.90 variable cost and $1.65 fixed cost. If Bluebird accepts this additional business, the effect on net income will be:
Answers
Answer:
Increase
Explanation:
If Bluebird accepts this additional business, the effect on net income will be:
You just returned from some extensive traveling.You started your trip with $10,000 in your pocket.You spent 1.32 million pesos in Chile where Ps1 = $.001642.You spent Ps36,000 in Uruguay where Ps1 = $.03526.Then on the way home,you spent Ps29,000 in Mexico where $1 = Ps18.8709.How many dollars did you have left by the time you returned to the U.S.?
A) $3,889.07
B) $4,001.84
C) $4,110.27
D) $5,026.44
E) $4,299.03
Answers
Answer:
Option D = 5026.45
Explanation:
Amount at the start of the trip = $10000
Change the 1 million pesos into dollars, Chile = 1320000 x 0.001642 = 2167.44
Uruguay = 36000 x 0.03526 = 1269.36
Mexico = 29000 / 18.8709 = 1536.75
Dollars left at time return to U.S. = $10000 - 2167.44 - 1269.36 - 1536.75
Dollars left at time return to U.S. = 5026.45
Option D = 5026.44
Assume a market for a normal good is currently in equilibrium. If the government increases the taxes that firms must pay, then:
Answers
Answer:
The supply will decrease.
Explanation:
The supply will decrease because the application of taxes will make selling costly. Thus, when cost increases then producers supply less. Therefore, less quantity will be supplied in the market when tax is imposed and this will increase the prices of products.
Assume that the labor market for retail workers is generally unskilled. If a minimum wage is set in the labor market for retail workers and that this minimum wage is above the equilibrium wage in this particular labor market, then __________ .
Answers
Answer:
there will be a surplus of retail workers in this labor market.
Explanation:
Here we presume that the labor market is not skilled. Now in the case when the minimum wage i.e. set and this wage should be more than the equilibrium wage so that means there is the surplus in the labor market
So as per the given situation, the above statement should be considered and fit to the given scenario
Hence the same is to be considered
Blitz Corp. had total sales of $3,130,000 last year and has 109,000 shares of stock outstanding. The benchmark PS is 1.66 times. What stock price would you consider appropriate
Answers
Answer:
$47.68
Explanation:
Calculation to determine stock price would you consider appropriate
Using this formula
Stock price=(Total sales/Shares of stock outstanding)*Benchmark PS
Let plug to determine
Stock price=($3,130,000/109,000) ×1.66
Stock price=28.72x 1.66
Stock price= $47.68
Therefore the stock price that you would
consider Appropriate is $47.68
Following is information from Intel Corporation for 2016 ($ in millions). Total revenue $59,387 Projected revenue growth rate 5.0% Net operating profit margin (NOPM) 17.3% Net operating assets (NOA) $83,316 Net operating asset turnover (NOAT) 0.74 Projected net operating profit after tax (NOPAT) for 2017 is:
Answers
Answer:
the Projected net operating profit after tax (NOPAT) is $10,788
Explanation:
The computation of the Projected net operating profit after tax (NOPAT) is given below:
= Total revenue × (1 + growth rate) × net operating profit margin
= $59,387 × (1 + 0.05) × 17.3%
= $62,356.35 × 17.3%
= $10,788
Hence, the Projected net operating profit after tax (NOPAT) is $10,788
Jose rents office space for $20,000 per year. He uses the office to fill out tax returns for 1,000 clients per year. If the office rent increases to $25,000 per year, the marginal cost of filling out tax returns will A. increase, but we cannot determine the amount of the increase with the information given. B. increase by $5. C. not change. D. increase by $5,000.
Answers
Answer:
C. Not change
Explanation:
Based on the information given the MARGINAL COST of filling out tax returns will NOT CHANGE reason been that RENT is a FIXED COST because it is not movable which is why RENT
DOES NOT AFFECT MARGINAL COST.
Therefore the marginal cost of filling out tax returns will NOT CHANGE.
What is the present value of a perpetuity that offers to pay $100 next year and every year after the payment grows at 4.3%. Investments with similar risk are offering an 8% annual return.
Answers
Answer:
PV= $2,702.70
Explanation:
Giving the following information:
Cash flow= $100
Growth rate (g)= 4.3%
Discount rate (i)= 8%
To calculate the present value of the perpetuity, we need to use the following formula:
PV= Cf / (i - g)
PV= 100 / (0.08 - 0.043)
PV= 100 / 0.037
PV= $2,702.70
Gerry works 40 hours a week managing Gerry’s Market, without drawing a salary. He could earn $600 a week doing the same work for Jean. Gerry’s Market owes its bank $100,000, and Gerry has invested $100,000 of his own money. If Gerry’s accounting profits are $1,000 per week while the interest on his bank debt is $200 per week, his economic profits are:
Answers
Answer:
The correct response is "$395 per week".
Explanation:
Given:
Salary forgone,
= $600
Dividend forgone,
= $5
Accounting profit,
= $1,000
Now,
The implicit cost will be:
= [tex]Salary \ forgone+Dividend \ forgone[/tex]
By substituting the values, we get
= [tex]600+5[/tex]
= [tex]605[/tex] ($) per week
hence,
The economic profit will be:
= [tex]Accounting \ profit-Implicit \ cost[/tex]
= [tex]1000-605[/tex]
= [tex]395[/tex] ($) per week
In marketing, we use which terms? (needs, wants, or demands). Why?
Answers
Answer:
needs are things that satisfy the basic requirement. Wants are requests directed to specific types of items.
________ would be hurt by unexpected inflation. a. A firm that purchased inputs with a two-year contract b. A worker whose wage increases with inflation c. A worker who signed a two-year wage contract d. A firm who hired a worker on a two-year wage contract
Answers
Answer:
a firm who hired a worker
Explanation:
on a two year wage contract
A firm that hired a worker on a two-year wage contract would be hurt by unexpected inflation. Thus, option D is correct.
What is inflation?Inflation, in financial aspects, aggregates expansions in the stockpile of cash, in cash salaries, or in costs. Expansion is by and large considered an exorbitant ascent in the general degree of costs.
While high expansion is by and large thought to be hurtful, a few financial experts accept that a modest quantity of expansion can assist with driving monetary development.
Inter worker was having job security for at least 2 years but due to inflation, he might not have a job. This is the most unexpected thing that the person could experience. As it will be treated as something that has caused hindrances in his planning.
Therefore, option D is correct.
Learn more about Inflation, here:
https://brainly.com/question/29308595
#SPJ6
A game has a saddle point when the maximin payoff value equals the minimax payoff value. true or false
Answers
Answer:
True
Explanation:
To answer this question, I'll use the following illustration.
Minimax = <10,18,15>
Maximax = <8,4,10>
The payoff of the minimax is 10 (i.e. the smallest) and the payoff of the maximax is 10 (i.e. the largest)
Both payoffs are equal; hence, 10 is the saddle point.
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 18,600 units. The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the cost per equivalent unit for August was $2.90 for materials and $4.40 for labor and overhead, the total cost assigned to the ending work in process inventory was: Multiple Choice $103,044 $81,468 $135,780 $86,676
Answers
Answer:
A. $103,044
Explanation:
Ending work in progress inventory = 18,600 units
Cost of equivalent unit for material = $2.90 per unit
Ending work in progress inventory i= 100% complete for material
Total cost of inventory for material = 18,600 units * $2.90 per unit
Total cost of inventory for material = $53,940
Cost of equivalent unit for labor = $4.40
Ending work in progress = 60% complete for labor
Cost of ending work in progress = $4.40 * 60% * 18,600
Cost of ending work in progress = $49,104
Total cost of ending work in progress inventory = $53,940 + $49,104
Total cost of ending work in progress inventory = $103,044