Answer:
production level 30,000 units
production costs at that level:
direct materials $15 per unit = $450,000direct labor $8 per unit = $240,000variable manufacturing overhead $3 per unit = $90,000fixed overhead $9 per unit = $270,000variable selling expense $4 per unit = $120,000fixed selling expense $6 per unit = $180,000total costs per unit $45 = $1,350,000sales price $50 per unit, profit $5 per unit = $150,000
fixed manufacturing overhead constant between 25,000 - 30,000 units
scenario 1:
due to a recession, sales decrease to 25,000 units:
special order for 5,000 at $42 per unit
additional costs = $10,000 for special machine
without special order with special order
total units sold 25,000 30,000
total revenue $1,250,000 $1,460,000
- variable px costs -$650,000 -$780,000
- fixed ma. overhead -$270,000 -$270,000
gross profit $330,000 $410,000
- variable selling exp. -$100,000 -$115,000
- fixed selling exp. -$180,000 -$180,000
- special machine $0 -$10,000
net profit $50,000 $105,000
profits will increase by $50,000 if the special order is accepted
scenario 2:
normal sales levels 30,000 units, Army wishes to purchase 5,000 units:
special order for 5,000 at production costs + $1.80
additional costs = $10,000 for special machine
without special order with special order
total units sold 30,000 30,000
total revenue $1,500,000 $1,434,000
- variable px costs -$780,000 -$780,000
- fixed ma. overhead -$270,000 -$270,000
gross profit $450,000 $384,000
- variable selling exp. -$120,000 -$100,000
- fixed selling exp. -$180,000 -$180,000
net profit $150,000 $104,000
profits will decrease by -$46,000 if the Army's special order is accepted
The Finishing Department had 5,200 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 15,400 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,200 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing.
Required:
A) How many units were transferred-out during the period?
Answer:
The total amount of units were transferred-out during the period iv 18,400 units
Explanation:
Beginning Work-in-Process = 5,200 incomplete units
Units received from previous department = 15,400 units
Ending Work-in-Process = 2,200 units
Units were transferred-out during the period = beginning Work-in-Process Inventory + units were received - ending Work-in-Process Inventory
Units were transferred-out during the period = 5,200 + 15,400 - 2,200
= 18,400 units
Toan Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month. In September the company completed job S80M that consisted of 23,000 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job S80M shows the following costs:
Beginning balance $ 66,700
Direct materials $494,500
Direct labor cost $158,700
Manufacturing overhead cost applied $269,100
During the month, the actual manufacturing overhead cost incurred was $270,020 and 3,000 completed units from job S80M were sold. No other products were sold during the month.
The unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for September is closest to:
Answer:
$129,000
Explanation:
The computation of the unadjsuted cost of goods sold is shown below:
Before that we need to compute the total cost and cost per unit which are as follows
Total cost
= Beginning balance + Direct materials + Direct labor + Manufacturing overhead cost applied
= $66,700 + $494,500 + $158,700 + $269,100
= $989,000
And, Units completed is 23,000 units
So, the cost per unit is
= Total cost ÷ Number of units completed
= $989,000 ÷ 23,000 units
= $43
And, the number of units sold is 3,000 units
So, the cost of good sold unadjusted is
= Number of units sold × cost per unit
= 3,000 units × $43
= $129,000
A construction company is bidding on a project comprising five high-rise buildings to be erected one after the other. The company considers the purchase of a set of advanced, hydraulically operated tunnel forming systems for $20/sf. The forms are to be used 200 times for the forming of 1,000 sf of walls and 1,000 sf of slabs per use on a series of residential buildings over a period of 4 yr, and then they will be sold. Salvage value is expected to be 10% of original purchase price. No maintenance costs are expected. Labor productivity is estimated at 0.025 labor hr/sf. Hourly wages are $22. Consider 5% annual interest rate. What is the average formwork cost (material
Answer:
Explanation:
The two attached pictures explains the problem and is so explanatory.
XYZ Manufacturing decides to build a new plant. The plant will cost $20 million today and is expected to have a useful life of 20 years. At the end of year 5, 10 and 15, there will be major renovation expenses of $K each time. The plant will produce level returns of $2.5 million at the end of each year for the first 10 years and $5 million at the end of each year for the second 10 years. Find the maximum value of K that XYZ could pay so that the internal rate of return on its investment is at least 12%. (Round your answer to integer)
Answer:
The answer is "$ 3,005,010.27".
Explanation:
Let those cash flows be in millions of dollars
[tex]NPV = -20+(\fatc{2.5}{1.12}+\frac{2.5}{1.12^2}+...+\frac{2.5}{1.12^{10}} +\frac{5}{1.12^9}+\frac{5}{1.12^{10}}+...+\frac{5}{1.12^{20}} - \frac{K}{1.12^5}+\frac{K}{1.12^{10}}+ \frac{K}{1.12^{15}})[/tex]
[tex]\ max \ value \ of \ K \ so, \ NPV = 0\\\\ \Rightarrow -20+(\frac{2.5}{1.12}+\frac{2.5}{1.12^2}+...+\frac{2.5}{1.12^{10}} +\frac{5}{1.12^9}+\frac{5}{1.12^{10}}+...+\frac{5}{1.12^{20}}) - (\frac{K}{1.12^5}+\frac{K}{1.12^{10}}+ \frac{K}{1.12^{15}}) = 0[/tex]
[tex]\Rightarrow -20+\frac{2.5}{0.12}\times(1-\frac{1}{1.12^{10}})+ \frac{1}{1.12^{10}}\times \frac{5}{0.12}\times (1-\frac{1}{1.12^{10}})- 1.072096*K = 0 \\\\\Rightarrow 3.221661 = 1.072096*K \\\\\Rightarrow K = 3.00501 \\[/tex]
The value of k = "$ 3,005,010.27".
Western, Inc. is a technology consulting firm focused on Web site development and integration of Internet business applications. The president of the company expects to incur $ 640,000 of indirect costs this year, and she expects her firm to work 4,000 direct labor hours. Western's systems consultants provide direct labor at a rate of $ 280 per hour. Clients are billed at 160% of direct labor cost. Last month, Western's consultants spent 170 hours on Halbert's engagement.
Compute Western's predetermined overhead allocation rate per direct labor hour.
Answer:
Estimated manufacturing overhead rate= $160 per direct labor hour
Explanation:
Giving the following information:
Estimated overhead= $640,000
Estimated direct labor hours= 4,000
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 640,000/4,000
Estimated manufacturing overhead rate= $160 per direct labor hour
The reported net incomes for the first 2 years of Sarasota Products, Inc., were as follows: 2020, $155,500; 2021, $188,100. Early in 2022, the following errors were discovered.
1. Depreciation of equipment for 2020 was overstated $15,900.
2. Depreciation of equipment for 2021 was understated $37,500.
3. December 31, 2020, inventory was understated $48,400.
4. December 31, 2021, inventory was overstated $15,800.
Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed.
Answer:
Dr retained earnings($21,600+$15,800) $37,400.00
Cr accumulated depreciation $21,600
Cr inventory $15,800
Explanation:
The errors that require adjustment are the overstatement and understatement of depreciation expense as well as the December 2021 overstatement of inventory.
The understatement of inventory in 2020 would have self-corrected itself in 2021 since closing inventory in 2020 deducted from costs of goods available for sale would be introduced as opening inventory in 2021.
net effect of depreciation=understatement -overstatement=$37,500-$15,900=$21,600.00
hence retained earnings would reduce by $21,600.00
for the overstatement of inventory,retained earnings would reduce by $15,800
Sweet Dreams Chocolatiers Ltd. began operations on January 1, 2020. During its first year, the following transactions occurred:
1. Issued common shares for $200,000 cash.
2. Purchased $483,000 of inventory on account.
3. Sold inventory on account for $675,000. The original cost of the inventory that was sold was $405,000.
4. Collected $562,000 from customers on account.
5. Paid $431,000 to suppliers for the inventory previously purchased on account.
6. Bought a delivery vehicle for $39,000 cash.
7. Paid $27,300 for rent, including $2,100 related to the next year.
8. Incurred $20,000 of operating expenses, of which $18,000 was paid.
9. Recorded $2,000 of depreciation on the vehicle.
10. Declared and paid dividends of $8,500.
Requireda. Prepare journal entries to record each of the above transactions.b. Create T accounts and post the journal entries to the T accounts.
Answer:
Explanation:
Journal entry is a record of transaction in their respective accounts using the debit and credit system. Debit entry represents an increase and credit a decrease.
S / NO Particulars Debit Credit
1 Cash 200,000
Share stock 200,000
2 Inventory 483,000
Account payable 483,000
3. Account receivable 675,000
Sales 675,000
Cost of goods 405,000
Inventory 405,000
4 Cash 562,000
Account receivable 562,000
5 Account payable 431,000
Cash 431,000
6 Motor Vehicle 39,000
Cash 39,000
7 Rent 25200
Prepaid rent 2100
Cash 27300
8 Operating Expenses 20,000
Cash 18,000
Operating exp payable 2,000
9 Depreciation 2,000
Motor Vehicle 2,000
10 Dividends payable 8500
Cash 8500
Enviro Company issues 8%, 10-year bonds with a par value of $230,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 1/2. The straight-line method is used to allocate interest expense.1. Using the implied selling price of 87 ½, what are the issuer's cash proceeds from issuance of these bonds?2. What total amount of bond interest expense will be recognized over the life of these bonds?3. What is the amount of bond interest expense recorded on the first interest payment date?
Answer:
Cash proceeds is $201,250.00
Explanation:
The cash proceeds derived from issuing the bonds can be computed as follows:
cash proceeds=87.5%*$230,000=$201,250.00
Total interest expense on the bond is $212,519 as contained in the attached bond amortization schedule
The first payment=$201,250*10%*6/12=$10,063 as it also found in the attached
Motivational theory applications argue for recognizing individual differences. They also suggest paying attention to members of diverse groups. Is this a contradiction? Why or why not? Compare and contrast two motivational theories (one content and one process theory) regarding how they can support diversity within teams.
Explanation:
It is not a contradiction to say that motivational theory advocates the recognition of individual differences and at the same time also suggests paying attention to members of different groups.
This is due to the fact that people have distinct personality, values and skills, which in an organizational environment must be properly recognized and developed so that it can be integrated into a group and contribute to the different characteristics that integrated will assist the organization in reaching its goals. goals and objectives. It is important that the organization observes the strengths of each employee and seeks strategies to develop them to improve individual and collective work and productivity.
The theory of content in motivation is relevant in this context, as it is a theory that focuses on what motivates the human being and enables the process by which organizations are able to analyze and understand what are the main motivational sources of their employees in the company, which adds the benefits of working in a process of continuous improvement that involves satisfaction, motivation, innovation and maintenance of staff.
RATIO CALCULATIONS Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.4x Return on assets (ROA) 6% Return on equity (ROE) 9% Calculate Caulder's profit margin assuming the firm uses only debt and common equity, so total assets equal total invested capital. Round your answer to two decimal places. 4.29 % Calculate Caulder's debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Round your answer to two decimal places. %
Answer:
33.33%
Explanation:
The solution of debt-to-capital ratio is provided below:-
Here, to find out the debt to capital ratio we need to follow some steps which is following below:-
Step 1
Return on equity = Return on assets × (Assets ÷ Equity)
9% = 6% × (Assets ÷ Equity)
(Assets ÷ Equity) = 9% ÷ 6%
= 1.5%
Step 2
Debt ÷ Equity = (Assets ÷ Equity) - 1
= 1.5% - 1
= 0.5%
and finally
Debt-to-capital = 0.5% ÷ (1 + (Debt ÷ Equity)
= 0.5% ÷ (1 + 0.5%)
= 0.5% ÷ 1.5%
= 33.33%
So, we have calculated the debt to capital by using the above formula.
An external competitor to Construction (from another island) is offering to build the new homes for $1300 each. Here are facts about the each of the projects (incline, bridge, campground, new home) Construction is considering:
Revenue Variable Cost Incline $1,400 $600
Bridge $1,500 $950
Campground $2,700 $1,200
New Home ? $700
Island Evaluations only wants to hire one company to build all five homes. In other words, either Construction (internal) will build all five, or the competitor (from another island) will build all five new homes. Island Evaluations plans on selling the homes to new tenants for $2,500 each.
a) What is the minimum transfer price (per home) that Construction would be willing to accept?
b) What is the maximum transfer price (per home) Island Evaluations would be willing to accept?
Answer:
a. The minimum transfer price (per home) that Construction would be willing to accept would be $1,270
b. The maximum transfer price (per home) Island Evaluations would be willing to accept would be $1,300
Explanation:
a. According to the given data If Construction accepts the proposal of Island Evaluations, then it has to foregone the profits which could have been earned if Construction accepted the proposal of local villagers to build an incline, a bridge and a campground.
Hence, minimum transfer price (per home) for Construction should be such that it covers the profit foregone as given above:
Now, profit foregone is calculated as per the table below:
Figures in $
Particulars Revenue Cost Profit
Incline 1400 600 800
Bridge 1500 950 550
Campground 2700 1200 1500
Total 5600 2750 2850
Therefore, the transfer price should be such which can generate a profit of $2,850 for Construction.
Therefore, total revenue which should be generated = Cost of building five new homes + Profit foregone
= 700*5 + 2850 = $6,350
Hence, minimum transfer price (per home) should be = 6350/5 = $1,270
b. The maximum transfer price (per home) that Island Evaluations will be willing to accept is $1,300 per home as quoted by the external competitor from another island.
Shamrock Co. purchased land as a factory site for $456,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months.
The company paid $47,880 to raze the old buildings and sold salvaged lumber and brick for $7,182. Legal fees of $2,109 were paid for title investigation and drawing the purchase contract. Shamrock paid $2,508 to an engineering firm for a land survey, and $77,520 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $1,710, and a liability insurance premium paid during construction was $1,026. The contractor’s charge for construction was $3,123,600. The company paid the contractor in two installments: $1,368,000 at the end of 3 months and $1,755,600 upon completion. Interest costs of $193,800 were incurred to finance the construction.
Determine the cost of the land and the cost of the building as they should be recorded on the books of Martin Buberk Co. Assume that the land survey was for the building.
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
Cost of Land Recorded on The Book of Martin Buberk Co.
Particular Amount ($)
Cost of land 456,000
Add-company paid to raze the old building($47,880-$7,182) 40,698
Add-Title insurance on the property cost 1,710
Add-Legal fees paid 2,109
Total cost of land 500,517
Cost of Building Recorded on the Book of Martin Buberk Co.
Particular Amount ($)
Cost of drawing the factory plans 77,520
Add-Land survey cost 2,508
Add-Liability insurance premium paid during construction 1,026
Add-contractor’s charge for construction 3,123,600
Add-Interest cost 193,800
Total cost of building 3,398,454
We simply applied the above format
Your team consists of 12 members, each in different locations, who are collaborating on a detailed committee report. Your team is in the final phase of the writing process and is making final edits to the report. Because you are each responsible for different aspects of the finalization process, the entire team needs to track changes so that the edits are visible before they are finalized.
Which collaboration tools would be best for this situation? Check all that apply.A. Google DocsB. WikiC. E-mail
Answer: A. Google Docs
Explanation:
Google Docs will be the best solution in this case because it is a cloud computing tool that enables people to work on a document simultaneously across the world. As others are working on the documents, the saves that they make are instantly saved on the document and reflected across all users who have access to the document at the time.
the production manager for the coory soft drink company is considering the production of 2 kinds of soft drinks: regular (R) and diet(D). two of the limited resources are production time 480 minutes per day and sytrum limited to 675 gallons per day. to produce a regular case requires 2 minutes and 5 gallons of syrup, while a diet case needs 4 minutes and 3 gallons of syrup, products for regular soft drink are $3.00 per case and profits for diet soft drink are $2.00 per case. What is the time constraint
Answer:
The time constraint is that you have only 480 minutes available per day to produce either type of soda.
In this case, if you are going to base your production schedule on your time constraint, then you should produce only regular sodas (240 cases). Each case of regular sodas generates $1.50 per minute of machine hour used. While a case of diet soda generates only $0.50 per minute of machine hour. Total revenue generated from he production of regular soda would be $720. If you would produce diet soda, total revenue would be $240.
The problem you face is the materials constraint (syrup), which will allow you to produce only 135 cases of regular soda and 0 cases of diet soda. Total revenue = $405, which is still higher than the revenue generated from diet soda ($240).
Explanation:
2 kinds of soft drinks:
regular (R) diet(D)production time 480 minutes per day
syrup limited to 675 gallons per day
regular case requires 2 minutes and 5 gallons of syrup, while a diet case needs 4 minutes and 3 gallons of syrup
price:
regular $3diet $2regular diet
sales price $3 $2
syrup gallons required 5 3
revenue per syrup gallon $0.60 $0.67
production time required 2 4
revenue per px time $1.50 $0.50
The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 919,000 $ 265,000 $ 400,000 $ 254,000 Variable manufacturing and selling expenses 478,000 116,000 203,000 159,000 Contribution margin 441,000 149,000 197,000 95,000 Fixed expenses: Advertising, traceable 69,700 8,400 40,600 20,700 Depreciation of special equipment 43,200 20,100 7,400 15,700 Salaries of product-line managers 114,600 40,400 38,100 36,100 Allocated common fixed expenses* 183,800 53,000 80,000 50,800 Total fixed expenses 411,300 121,900 166,100 123,300 Net operating income (loss) $ 29,700 $ 27,100 $ 30,900 $ (28,300)*Allocated on the basis of sales dollars.Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out.Required:1a. What is the impact on net operating income by discontinuing racing bikes? (Decreases should be indicated by a minus sign.)Current total total if racing bikes are dropped Difference: Net operating income increase or (Decrease)? ? ? ?? ? ? ?Contribution margin: (loss) ? ? ?Fixed expense: - - -? ? ? ?? ? ? ?? ? ? ?? ? ? ?Total fixed expenses ? ? ?Net operating income (loss) ? ? ?** On the first column insert from the list stated in the bottom with the missing ?**(sales, variable expenses, advertising traceable , depreciation on special equipment, salaries of product managers, common allocated costs) 2a. Prepare a segmented income statement. Totals Dirt Bike Mountain Bikes Racing Bikes? ? ? ? ?? ? ? ? ?Contribution margin (loss) ? ? ? ?Traceable fixed expenses: - - - -? ? ? ? ?? ? ? ? ?? ? ? ? ?Total traceable fixed expenses ? ? ? ?? ? ? ? ?? ? - - -Net operating income (loss) ? - - -** On the first column insert from the list stated in the bottom with the missing ?**(Sales, Variable manufacturing and selling expenses, Advertising, depreciation of special equipment, salaries of the product line managers, product line segment margin, common fixed expenses)
Answer:
Explanation:
Please see answer to the given question in the file attached below
Owen wants to contribute cash or capital gain property or stock to a charitable organization this year. Assume his adjusted gross income for the year will be $150,000 and that he only plans to make one of the following donations.
If he contributes $100,000 cash to a public charity, he can deduct $ __________ this year.
If he contributes property that is worth $80,000 to a public charity, he can deduct $ ___________ .
Or, if he contributes publicly traded stock with a FMV of $60,000 and a basis of $40,000 to a private non-operating foundation, he can deduct $ __________ this year.
Answer:
$90,000; $45,000; $30,000.
Explanation:
In the United States of America, tax payers get reduction in the amount of taxes that they pay when taxpayers donate money to charity. The deductions in tax depends on the charity organization the tax payer is donating to and the kind of property the tax payer is donating.
Below is how it is been deducted;
(1). As regards to public charity, only 60% can be deducted from the adjusted gross income.
(2).As regards to Capital gain property contribution to public charity, only 30% can be deducted from the adjusted gross income.
(3). As regards to Capital gain property contribution to private non operating foundation, only 20% can be
In the question above, the adjusted gross income for the year will be = $150,000 deducted from the adjusted gross income.
Therefore, for (1). 60/100 × $150,000 = $90,000.
(2). 30/100 × 150,000 = $45,000.
(3). 20/100 × 150,000 = $ 30,000.
Testbank Multiple Choice Question 86 Bonita Industries is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6300000 on March 1, $5260000 on June 1, and $8450000 on December 31. Bonita Industries borrowed $3180000 on January 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 8%, 3-year, $6410000 note payable and an 9%, 4-year, $12150000 note payable. What are the weighted-average accumulated expenditures? $8318333 $9720000 $20010000 $11560000
Answer:
$8,318,333
Explanation:
The computation of the weighted average accumulated expenditure is shown below:
Date Amount Capitalization period Weighted Average Accumulated Expenditures
Mar 1 $6,300,000 10 months $5,250,000 ($6,300,000 × 10 months ÷ 12 months)
Jun 1 $5,260,000 7 months $3,068,333.33 ($5,260,000 × 7 months ÷ 12 months)
Dec 31 $8,450,000 0 months $0
Total $8,318,333
We simply multiplied the amount with the capitalization period so that the weighted average accumulated expenditure could come
Based on the following selected data, journalize the adjusting entries as of December 31 of the current year. For a compound transaction, if an amount box does not require an entry, leave it blank. If no entry is required, select "No entry required" and leave the amount boxes blank. a. Estimated uncollectible accounts at December 31, $16,000, based on an aging of accounts receivable. The balance of Allowance for Doubtful Accounts at December 31 was $2,000 (debit).b. The physical inventory on December 31 indicated an inventory shrinkage of $3,300.c. Prepaid insurance expired during the year, $22,820.d. Office supplies used during the year, $3,920.e. A patent costing $48,000 when acquired on January 2 has a remaining legal life of 10 years and is expected to have value for 8 years.f. The cost of mineral rights was $546,000. Of the estimated deposit of 910,000 tons of ore, 50,000 tons were mined and sold during the year.g. Vacation pay expense for December, $10,500.h. Interest was accrued on the $100,000, 9% note receivable received on October 17. Assume 360 days per year.
Answer:
Journal
Adjusting Entries:
a) Debit Uncollectible Expenses $18,000
Credit Allowance for Doubtful Accounts $18,000
To bring the balance to $16,000.
b) Debit Cost of Goods Sold $3,300
Credit Inventory Account $3,300
To record inventory shrinkage.
c) Debit Insurance Expense $22,820
Credit Insurance Prepaid Account $22,820
To record expired insurance for the year.
d) Debit Supplies Expense $3,920
Credit Supplies Account $3,920
To record office supplies used during the year.
e) Debit Patent Amortization Expense $6,000
Credit Patent $6,000
To record impaired value from 10 to 8 years.
f) Debit Cost of Goods Sold (Depletion) $30,000
Credit Mineral Rights $30,000
To record depletion or cost of goods sold.
g) Debit Wages & Salaries $10,500
Credit Wages & Salaries Payable $10,500
To record vacation pay for December.
h) Debit Interest on Notes Receivable $1,875
Credit Interest on Notes $1,875
To record 9% interest accrued for 75 days.
Explanation:
a) The Allowance for Doubtful Accounts will be brought to a balance of $16,000. Since it has a debit balance of $2,000, this is added to get $18,000 which is expensed for the year.
b) Inventory shrinkage increases the cost of goods sold and reduces the inventory account.
c) The expiration of the prepaid insurance means that the amount will be charged to Insurance Expense Account.
d) Office supplies used during the year is an expense.
e) A patent is an intangible asset, which is subject to annual amortization and impairment. Since the asset was acquired on January 2 with a legal life of 10 years, but expected to have a value for 8 years. 8 years is used to calculate the amortization expense instead of 10 years.
f) Mineral Rights are intangible assets, but they are subject to depletion. The depletion represents the cost of goods sold. This is calculated as follows: $546,000 x 50,000/910,000 = $30,000.
g) Vacation pay is part of the Wages & Salaries and should be accrued for the year.
h) Interest on Notes Receivable is calculated as follows: $100,000 x 9% x 75/360 days = $1,875.
i) Adjusting entries are end of the accounting period journal entries used to recognize or accrue income or expenses, which are business transactions that occurred but are not accurately displayed in the records. They balance debits and credits before the financial statements are prepared.
An adjusting entries is a journal entries made at the conclusion of an accounting period in a company's general ledger to note any unrealized revenue or expenses of that period.
Adjusting Entries:
a) Debit Un collectible Expenses $18,000
Credit Allowance for Doubtful Accounts $18,000
(To bring the balance to $18,000)
b) Debit Cost of Goods Sold $3,300
Credit Inventory Account $3,300
(To record inventory shrinkage).
c) Debit Insurance Expense $22,820
Credit Insurance Prepaid Account $22,820
(To record expired insurance for the year.)
d) Debit Supplies Expense $3,920
Credit Supplies Account $3,920
(To record office supplies used during the year).
e) Debit Patent Amortization Expense $6,000
Credit Patent $6,000
(To record impaired value from 10 to 8 years.)
f) Debit Cost of Goods Sold (Depletion) $30,000
Credit Mineral Rights $30,000
(To record depletion or cost of goods sold.)
g) Debit Wages & Salaries $10,500
Credit Wages & Salaries Payable $10,500
(To record vacation pay for December.)
h) Debit Interest on Notes Receivable $1,875
Credit Interest on Notes $1,875
(To record 9% interest accrued for 75 days).
To know more about adjusting entries,refer to the link:
https://brainly.com/question/24135983
You have two clients that are considering trading machinery with each other. Although the machines are different from each other, you believe that an assessment of expected cash flows on the exchanged assets will indicate the exchange lacks commercial substance. Your clients would prefer that the exchange be deemed to have commercial substance, to allow them to record gains. Here are the facts:
Client A Client B
Original cost $104,700 $158,100
Accumulated depreciation 43,600 79,800
Fair value 88,400 115,700
Cash received (paid) 27,300 27,300
Record the trade-in on Client A's books assuming the exchange has commercial substance.
Record the trade-in on Client A's books assuming the exchange lacks commercial substance.
Answer:
the exchange has commercial substance
New Machine at Fair Value $115,700 (debit)
Cash Received $27,300 (debit)
Accumulated Depreciation Asset Given Up $43,600 (debit)
Cost of Asset Given Up $104,700 (credit)
Profit from Exchange $81,900 (credit)
the exchange lacks commercial substance.
New Machine at Carrying Amount of Asset Given up $61,100 (debit)
Cash Received $27,300 (debit)
Accumulated Depreciation Asset Given Up $43,600 (debit)
Cost of Asset Given Up $104,700 (credit)
Profit from Exchange $27,300 (credit)
Explanation:
the exchange has commercial substance
Cost price of Asset acquired is measured at Fair Value of Asset given up.
the exchange lacks commercial substance.
Cost price of Asset acquired is measured at Carrying Amount of Asset given up.
Neosho Corporation's Gauge Division manufactures and sells product no. 24, which is used in refrigeration systems. Per-unit variable manufacturing and selling costs amount to $23 and $7, respectively. The Division can sell this item to external domestic customers for $40 or, alternatively, transfer the product to the company's Refrigeration Division. Refrigeration is currently purchasing a similar unit from Taiwan for $36. Assume use of the general transfer-pricing rule. Required: A. What is the most that the Refrigeration Division would be willing to pay the Gauge Division for unit? B. If Gauge had excess capacity, what transfer price would the Division's management set? C. If Gauge had no cxecss capacity, what transfer price would the Division's management sct? D. Repeat part "C," assuming that Gauge was able to reduce the variable cost of internal transfers b $5 per unit
Answer:
(a) Refrigeration would be willing to pay a maximum of Rate 36 to gauge division for unit. because its outside purchase price. (b) $30 (c) $40 (d) $35
Explanation:
Solution
Given that:
(A) The Refrigeration would be willing to pay a maximum of Rate 36 to gauge division for unit. because its outside purchase price.
(B) If Gauge had excess capacity, The Division's Management set the transfer price would be $30. this is because transfer price be set as sum of Total Outlay cost and Opportunity Cost. So, ($23 + $7) + $0 = $30
(C) iF Gauge had no excess capacity, the transfer price would be $40.
The Calculation of Transfer price is as follows:
($23 + $7) = $30
Add :- ($40 - $23 -$7) = $10
Hence, the transfer Price = $40
(D) If Gauge was able to reduce the variable cost of internal transfers b $5 per unit then Transfer Price Would be $35.
Thus,
The calculation of transfer price is as follows:-
($23 + $7 - $5) = $25
Add :- ($40 - $23 -$7) = $10
The transfer Price = $35
Presented below is information related to Hale Corporation: Share Capital—Ordinary, P1 par P4,300,000 Share premium—Ordinary 550,000 Share Capital—Preference 8 1/2%, P50 par 2,000,000 Share premium—Preference 400,000 Retained Earnings 1,500,000 Treasury Shares—Ordinary (at cost) 150,000 The total contributed capital related to the ordinary shares is
Answer:
$4,850,000
Explanation:
The computation of the total contributed capital related to the ordinary shares is shown below:
= Ordinary share capital + share premium of ordinary share
= $4,300,000 + $550,000
= $4,850,000
We simply added the ordinary share capital and the share premium of ordinary shares so that the total contributed capital could arrive
Squat XFit Inc. reported the following activities and select balance sheet items ($ in millions). You may also view this data in Excel with the SquatFix Activities and Balance Sheet file. Select results during the year ending December 31, 2020 Revenue 453.2 Interest expense 12.5 Depreciation expense 43.2
Stock-based compensation 12.5 Tax rate 40% Net income 134.5 Balances as of: 12/31/2019 12/31/2020 Accounts payable 120.5 130.5 Accounts receivable 74.8 82.4 Common Stock & APIC 146.4 163.5
Deferred revenue 453.0 532.0
Inventory 132.6 143.2
Current portion of debt 214.0 275.0
Net PP&E 212.7 246.0
Pre-paid expenses 50.0 35.0
Treasury stock (112.3) (123.2)
Accrued wages 67.8 72.5
Other comprehensive income 12.1 13.5
Calculate cash flow from operations for the year ending 12/31/2020:
a. $204.7 million
b. $250.7 million
c. $271.3 million
d. $280.7 million
Answer:
b. $250.7 million
Explanation:
Cash flow from operations is obtained from Cash flow from Operating Activity Section when the Indirect Method is used to prepare that section as follows :
Cash flow from Operating Activity
Net income before taxation 134.50
Adjustment for Non- Cash Items :
Depreciation expense 43.20
Adjustment for Working Capital Items :
Increase in Accounts payable 10.00
Increase in Accounts receivable (7.60)
Increase in Inventory (10.60)
Increase in Current portion of debt 61.00
Decrease in Pre-paid expenses 15.00
Increase in Accrued wages 4.70
Cash Generated from Operations 250.20
On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Shoemaker's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to lend $490,000 to its supplier using a 12-month, 10% note.
Required:
The loan of $490,000 and acceptance of the note receivable on April 1, 2021.
The adjustment for accrued interest on December 31, 2021.
Cash collection of the note and interest on April 1, 2022.
Record the above transactions for Shoemaker Corporation. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Record the loan of $490,000 and acceptance of the note receivable on April 1, 2021.
Note: Enter debits before credits.
Date General Journal Debit Credit
April 01, 2021
Record the adjusting entry for accrued interest.
Note: Enter debits before credits.
Date General Journal Debit Credit
December 31, 2021
Record the cash collection.
Note: Enter debits before credits.
Date General Journal Debit Credit
April 01, 2022
Answer:
Shoemarket Corporation
Journal Entries:
April 1, 2021:
Debit Notes Receivable $490,000
Credit Cash Account $490,000
To record the issue of notes.
December 31, 2021:
Debit Interest on Notes Receivable $36,750
Credit Interest on Notes $36,750
To accrue interest on notes for the year.
April 1, 2022:
Debit Cash Account $539,000
Credit Notes Receivable $490,000
Credit Interest on Notes Receivable $36,750
Credit Interest on Notes $12,250
To record cash collection of the note and interest.
Explanation:
a) The acceptance of notes receivable increases the Notes Receivable account and reduces the Cash Account by $490,000.
b) Due to the accrual concept and the matching principle, on December 31, 2021, interest on notes receivable will be accrued. This is calculated as follows:
Interest for 9 months = $490,000 x 10% x 9/12 = $36,750.
c) On April 1, 2022, when the cash collection of the note and interest is made, the Cash received will total $539,000 ($490,000 + 10% Interest for a year). This is worked as $490,000 x 10% = $49,000. But, already interest for 2021 had been accrued. The difference is now accrued in 2022.
d) The entries required are a debit to the Cash Account $539,000, a credit to Interest on Notes Receivable $36,750, to Interest on Notes $12,250, and Notes Receivable Accounts $490,000 respectively.
Answer:
Explanation:
Journal entry is a record of transactions in respective accounts using the debit and entry system. Debit entry represents an inflow and credit entry represents an outflow.
Date General journal Debit Credit
April 2021 Note receivable 490,000
Credit Cash 490,000
Dec. 31 Interest Receivable 36750
(Year end)
Interest revenue 36,750
Cash Collection
April 1 ,2022 Cash 539,000
Note receivable 490,000
( Principal )
Interest receivable (2021) 36750
Interest revenue (2022) 12,250
Workings.
Loan note rate = 10%
Issue date = April 1, 2012
( months to the year end )
Interest receivable = 490,000*10%*9/12 = 36,750
January 1, 2022 - March 31 , 2022 (maturity ) =3 months
Interest revenue = 490000*10%*3/12 = 12,250
Why do you think government bonds usually have a low risk of default?
Answer:
In particular, the explanation government bonds being viewed as a secure option for investment is that they are guaranteed by the administration's absolute faith and confidence. Most shareholders are convinced government of the country won't default itself on debt trustees commitments.
Also if certain issues raised governments holds the power to increase taxes on the investment as well as they have the printing power of currency which makes such investments risk free.
Below is the income statement for Sun Devil Company for the year ending December 31, 20x2: Sales (net) $500,000 Cost of Goods Sold: Beginning Inventory $ 50,000 Purchases 300,000 Goods Available for Sale 350,000 Ending Inventory 40.000 Cost of Goods Sold 310,000 Gross Profit $190.000 Operating Expenses: Wages $35,000 Depreciation 30,000 Advertising 15,000Administrative 5.000 $85,000$105,000 Income from Operations Gain on Sale of Equipment 50.000 Net Income $155 000 The following balances were derived from the balance sheet: December 31 20x2 20x1 Accounts Receivable $100,000 $ 90,000Accounts Payable 30.000 50.000 Prepaid Advertising Expense 5,000 3,000Wages Payable 5,000 4,000 Determine Cash Flows from Operating Activities: a. $164,000 b. $104,000 c. $114,000 d. $94,000
Answer:
The Cash Flows from Operating Activities is $104,000. The right answer is b.
Explanation:
According to the given data, the cash flows from operating activities would be the following:
Sun Devil Company
Statement of cash flow(Partial)
For the year ended December 31,20x2
Operating Activities:
Net income $155,000
Adjust to reconcile net income to
Net cash provided (used)by operating Activities:
Depreciation Expense $30,000
Gain on sale of Equipment -$50000
Account Receivable Increase -$10000
Prepaid Expense Increase -$2000
Wages Payable Increase $1000
Account Payable Decrease -$20000
Total Adjust to reconcile net income to
Net cash provided (used)by operating Activities= -$51000
Therefore, Net cash provided by operating Activities $104,000
VUESTIUNI
occurs when information is shared with some stockholders of the company and not with all of them.
a. Price per share
b. Underwriting
C. Capital gains
d. Insider corruption
e. Insider trading
Answer:
e. Insider trading.
Explanation:
Insider trading occurs when information is shared with some stockholders of the company and not with all of them.
According to the United States of America, Securities and Exchange Commission (SEC); Illegal Insider trading involves the "buying or selling of a security, in breach of a fiduciary duty or other relationship of trust and confidence, on the basis of material, non-public information about the security."
In the stock exchange market, any information that possibly could impact an investor's decision substantially to buy or sell the security is known as material information while informations that is not legally available to the public is non-public information.
A potential investor who has access to insider information would definitely have an advantage or unfair edge over other investors, who obviously don't have same privileges, and could potentially make unfair-large profits.
U.S SEC is very much concerned with maintaining a fair marketplace, thus requiring that all transactions be timely submitted electronically.
Total payroll of Walnut Co. was $1,900,000, of which $330,000 represented amounts paid in excess of $118,500 to certain employees. The amount paid to employees in excess of $7,000 was $1,480,000. Income taxes withheld were $461,000. The state unemployment tax is 1.2%, the federal unemployment tax is .8%, and the F.I.C.A. tax is 7.65% on an employee's salaries and wages to $118,500 and 1.45% in excess of $118,500.
(a) Prepare the journal entry for the salaries and wages paid.
(b) Prepare the entry to record the employer payroll taxes.
Answer:
A.
Dr Salaries and Wages Expense $1,900,000,
Cr Withholding Taxes Payable $461,000,
Cr FICA Taxes Payable 124,890
Cr Cash 1,314,110
B.
Dr Payroll Tax Expense 158,535
Cr FICA Taxes Payable 150,135
Cr FUTA Taxes Payable 3,360
Cr SUTA Taxes Payable 5,040
Explanation:
Walnut Co
A.
Dr Salaries and Wages Expense $1,900,000,
Cr Withholding Taxes Payable $461,000,
Cr FICA Taxes Payable 124,890
Cr Cash 1,314,110
(1,900,000 – $330,000) × 7.65%+ ($330,000 × 1.45%)
=1,570,000×0.0765+4,785
=120,105+4,785
B.
Dr Payroll Tax Expense 158,535
Cr FICA Taxes Payable 150,135
($1900,000 × 7.65%) + ($330,000 × 1.45%)
(145,350+4,785)
Cr FUTA Taxes Payable 3,360
($1,900,000 – $1,480,000) × .8%
420,000×.8%
Cr SUTA Taxes Payable 5,040
($420,000 × 1.2%)
what is socail engineering?
Answer:
Social engineering, in the context of information security, is the psychological manipulation of people into performing actions or divulging confidential information. This differs from social engineering within the social sciences, which does not concern the divulging of confidential information.
Explanation:
Answer:
Explanation:
1. the use of centralized planning in an attempt to manage social change and regulate the future development and behavior of a society.
2.
(in the context of information security) the use of deception to manipulate individuals into divulging confidential or personal information that may be used for fraudulent purposes.
"people with an online account should watch for phishing attacks and other forms of social engineering"
On June 1, 2018, Perfect Performance Cell Phones sold $ 17,000 of merchandise to Ashton Trucking Company on account. Ashton fell on hard times and on July 15 paid only $ 6,000 of the account receivable. After repeated attempts to collect, Perfect Performance finally wrote off its accounts receivable from Ashton on September 5. Six months later, March 5, 2019, Perfect Performance received Ashton's check for $ 11,000 with a note apologizing for the late payment.
Requirements:
1. Journalize the transactions for High Performance Cell Phones using the direct write-off method. Ignore Cost of Goods Sold.
2. What are some limitations that High Performance will encounter when using the direct write-off method?
Answer:
See answers and explanation below.
Explanation:
1. Journalize the transactions for High Performance Cell Phones using the direct write-off method. Ignore Cost of Goods Sold.
Date Details Dr ($) Cr ($)
1 Jun. 18 Account receivable 17,000
Sales revenue 17,000
To record sales to Ashton Trucking Company on account.
15 Jul. 18 Cash 6,000
Account receivable 6,000
To record cash received from Ashton Trucking Company.
5 Sep. 18 Bad debt 11,000
Account receivable 11,000
To record accounts receivable from Ashton written off.
5 Mar. 19 Account receivable 11,000
Bad debt 11,000
To record transfer of bad bad back toaccounts receivable.
5 Mar. 19 Cash 11,000
Account receivable 11,000
To record cash received from Ashton Trucking Company.
2. What are some limitations that High Performance will encounter when using the direct write-off method?
a. It is not in line with the matching principle. This is because bad debt expenses will not be reported in the same period they are incurred and might not be realized as bad expenses until the following period.
b. It can cause inaccurate balance sheet as it does give the actual amount of accounts receivable of a company.
c. It method of recording violates GAAP and financial statements does to present the actual financial performance of the business.
d. It overstates accounts receivable as the full amount of amount owed to the company from credit sales will be reported as accounts receivable.
On January 1, Jackson, Inc.'s WorkminusinminusProcess Inventory account showed a balance of $ 66 comma 000. During the year, materials requisitioned for use in production amounted to $ 71 comma 700, of which $ 66 comma 000 represented direct materials. Factory wages for the period were $ 208 comma 000 of which $ 187 comma 000 were for direct labor. Manufacturing overhead is allocated on the basis of 60% of direct labor cost. Actual overhead was $ 116 comma 110. Jobs costing $ 353 comma 110 were completed during the year. The December 31 balance in WorkminusinminusProcess Inventory is
Answer:
$78,090
Explanation:
The solution of ending balance is provided below:-
Ending balance = Beginning balance + Direct material + Direct labor + Manufacturing overhead - Transfer to finished goods inventory
= $66,000 + $66,000 + $187,000 + ($187,000 × 60%) - $353,110
= $66,000 + $66,000 + $187,000 + $112,200 - $353,110
= $431,200 - $353,110
= $78,090
Therefore, we have calculated ending balance by using the above formula.