Answer:
1. Dr Account receivable $20,500
Cr Service revenue $20,500
2. Dr Interest receivable $450
Cr Interest revenue $450
3. Dr Account receivable $1,420
Cr Service revenue $1,420
Explanation:
Preparation of the adjusting journal entries for each of the following for year ended December 31.
Based on the information given the adjusting journal entries for each of the following for year ended December 31 will be :
1. Dr Account receivable $20,500
Cr Service revenue $20,500
(Being to record Accounts Receivable)
2. Dr Interest receivable $450
Cr Interest revenue $450
(Being to record Interest receivable)
3. Dr Account receivable $1,420
Cr Service revenue $1,420
(Being to record Accounts Receivable)
A time ticket: Multiple Choice Shows the time that a department's employees worked on all jobs, the pay rate of each employee, and the total cost chargeable to each job. Shows the time an employee worked on each job, the pay rate, and the total cost chargeable to each job. Shows the time an employee worked on each job only. Shows the time an employee worked on each job and the total cost chargeable to each job only.
Answer:
Shows the time an employee worked on each job, the pay rate, and the total cost chargeable to each job.
Explanation:
A time ticket is a document that constitutes of the working period of the particular employee. It includes the working period for which the employee has been paid by the company. It constitutes of the initial time of the working day and the ending time of the day. The work hour for which the employee is paid and the cost invoked during the course of the period is also listed in the time ticket.
A new oven will save $100 per year in electricity expense. How much can we afford to pay for this oven if it is expected to last 15 years
Answer:
$557.55
Explanation:
Missing word "The interest rate is 16% per year"
Present Value of annuity of 1 = (1-(1+i)^-n)/i
Where, i = 16%, n=15
Present Value of annuity of 1 = (1-(1+0.16)^-15)/0.16
Present Value of annuity of 1 = 5.575456
Present Value of saving of electricity expense = Annual Saving * Present Value of annuity of 1 = $100.00 * 5.575456 = $557.55. So, the amount we can afford to pay is $557.55
An increase in which of the following will increase the return on equity, all else constant I. Total asset turnover. II. Net income. III. Total assets. IV. Debt-equity ratio. I only. I, II, and III only. I and II only. I, II, and IV only. I, II, III, and IV.
Answer:
I and II only.
Explanation:
Return on equity (ROE) is an example of a profitability ratio.
Profitability ratios measures the ability of a company to earn profits from its assets.
ROE = Net income / Average total equity
If ROE increases, it means that net income increases more than average total equity
Total asset turnover = Revenue / average total assets
(Net Income/ Net profit margin) / Total Assets
All else remaining constant, if ROE increases, it means that revenue also increases more than average total asset
Since Net income is the numerator in ROE, it means it would also increase
Total asset and debt equity ratio is not a component of ROE, so the effect of ROE on them can't be determined
Mr. Brew Cafeteria has computed the indifference point between debt and common equity financing options to be $4 millions of EBIT. EBIT is approximately normally distributed with an expected value of $4.5 million and a standard deviation of $600,000. What is the probability that the equity financing option will be superior to the debt option
Answer: 20.33%
Explanation:
The probability of having the equity financing option having higher figures than debt is the probability of having EBIT lower than the indifference point of $4million. We would use the z-score to find the probability of having a lower EBIT.
z-score = indifference point - expected EBIT/ standard deviation
Which would be; 4000000-4500000/600000= -0.83.
From our table, -0.83 is 20.33%.
Franklin, Inc uses activity-based costing. The company produces X and Y. Information relating to the two products is as follows:
X Y
Units produced 38,000 50,000
Machine-hours 15,000 17,000
Direct labor-hours 16,000 24,000
Materials handling (number of moves) 8,000 12,000
Setups 10,000 14,000
The following costs are reported:
Materials handling $160,000
Labor-related overhead 480,000
Setups 240,000
Labor-related overhead costs assigned to product X are:________
A. $192,000
B. $232,000
C. $288,000
D. $272,500
Answer:
A. $192,000
Explanation:
The computation of the labor related overhead cost is shown below:
= (Labor related overhead cost) ÷ (Total direct labor hours) × direct labor hours of X
= ($480,000) ÷ (16,000 hours + 24,000 hours) × 16,000 hours
= $192,000
hence, the correct option is A.
Sheridan Company has $21000 of ending finished goods inventory as of December 31, 2019. If beginning finished goods inventory was $15000 and cost of goods sold was $50000, how much would Sheridan report for cost of goods manufactured
Answer:
$56,000
Explanation:
The computation of the cost of goods manufactured is shown below:
As we know that
Cost of goods sold = Opening finished goods inventory + cost of goods manufactured - ending finished goods inventory
$50,000 = $15,000 + cost of goods manufactured - $21,000
So, the cost of goods manufactured is
= $50000 + $6,000
= $56,000
Bill operates a proprietorship using the cash method of accounting, and this year he received the following: $130 in cash from a customer for services rendered this year a promise from a customer to pay $194 for services rendered this year tickets to a football game worth $235 as payment for services performed last year a check for $176 for services rendered this year that Bill forgot to cash How much income should Bill realize on Schedule C
Answer:
$541
Explanation:
Calculation for How much income should Bill realize on Schedule C
Income realize on Schedule C=$130 + $235 + $176=
Income realize on Schedule C=$541
Therefore the amount of income that Bill should realize on Schedule C is $541
Steve has been given the charge of managing unskilled labor in the production units of his company. These workers are primarily motivated by financial incentives and other perks such as discount coupons and free movie or lunch days. In this scenario, which of the following power bases should Steve primarily use to influence the workers to improve their productivity?
a. Referent power
b. Expert power
c. Reward power
d. Information power
Answer:
c. Reward power
Explanation:
Reward power is the power to influence employees or to impress employees by giving them some reward for doing certain things. The reward is clear and vague . so correct option is c. Reward powerRoberto and Reagan are both 25-percent owner/managers for Bright Light Incorporated. Roberto runs the retail store in Sacramento, California, and Reagan runs the retail store in San Francisco, California. Bright Light generated a $131,300 profit companywide made up of a $76,800 profit from the Sacramento store, a ($29,500) loss from the San Francisco store, and a combined $84,000 profit from the remaining stores. If Bright Light is taxed as a partnership and it is decided that both Roberto and Reagan will be allocated 70 percent of his own store's profit, with the remaining profits allocated pro rata among all the owners, how much income will be allocated to Reagan in total
Answer: $3,897.50
Explanation:
The profit that is to be shared on a pro rata basis will include:
a. The $84,000 profit from the remaining stores
b. 30% of the profit from Sacramento
c. 30% of the loss from San Francisco
= 84,000 + (0.3 * 76,800) + (0.3 * -29,500)
= $98,190
Reagan is to get 25% of the above as well as 70% of San Francisco losses.
= (0.25 * 98,190) + (0.7 * -29,500)
= 24,547.50 - 20,650
= $3,897.50
On March 25, 2021, Phillips Corporation purchased bonds of Atlas Corporation for $132 million and classified the securities as trading securities. On December 31, 2021, these bonds were valued at $150 million. Three months later, on April 3, 2022, Phillips Corporation sold these bonds for $140 million. As part of the multi-step approach to record the 2019 transaction, Phillips Corporation should first update the fair value adjustment by recording:A. An unrealized holding gain of $28 million in 2019.B. A unrealized holding loss of $10 million in 2019.C. An unrealized holding gain of $8 million in 2019.D. A gain of $8 million in 2019.
Answer:
B. A unrealized holding loss of $10 million in 2022.
Explanation:
By December 31, 2021, the bonds were worth $150 million, resulting in an $18 million unrealized gain. By the time the bonds were sold, their price had deceased to $140 million, which means that $10 million of the $18 million previous gain had been erased. Therefore, the adjusting entry on December 31, 2022, should include the $10 million unrealized loss.
The Winston Company estimates that the factory overhead for the following year will be $868,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 28,000 hours. The total machine hours for the year were 54,800 hours. The actual factory overhead for the year was $1,723,00.
Required:
a. Determine the total factory overhead amount applied.
b. Calculate the overapplied or underapplied amount for the year.
c. Prepare the journal entry to close Factory Overhead into Cost of Goods Sold.
Answer:
I just learn Logic Of ABi Nandan...Then after That I understand every thing...
The journal entry to transfer completed products from production to finished goods inventory includes which two of the following? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
Debit to Finished Goods Inventory ?
Credit to Work in Process Inventory ?
Credit to Finished Goods Inventory ?
Debit to Work in Process Inventory ?
Debit to Raw Materials Inventory ?
Credit to Raw Materials Inventory ?
Answer:
Debit finished goods inventory
Credit Work in Process Inventory
Explanation:
The journal entry that is required to transfer the completed products from the production stage to finished goods inventory which is the amount of goods in the inventory that have been produced and as well is available and ready for customer to buy will includes to Debit finished goods inventory and to Credit Work in Process. Inventory
Debit finished goods inventory
Credit Work in Process Inventory
(Being to record finished goods inventory)
slove for x
11x+3=3x+35
Answer:
x = 4
Explanation:
1. 11x + 3 = 3x+ 35
2. -3x -3 -3x -3
----------------------------
3. 8x = 32
divide 8 from both sides of the equal sign
4. x = 4
Hope that helps
Answer:
11x-3x=35-3
8x=32
x=32:8
Jackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed: Unit sales Budged Actual Product X 22,500 42,000 Product Y 90,000 80,000 Unit contribution margin Product X $4.80 $3.90 Product Y $13.00 $14.00 Unit selling price Product X $13.00 $14.00 Product Y $30.00 $29.00 Industry volume was estimated to be 1,875,000 units at the time the budget was prepared. Actual industry volume for the period was 2,440,000 units. Jackson measures variances using contribution margin. Total sales quantity variance is: $97,280 favorable. $95,190 favorable. $107,920 favorable. $84,500 favorable. $36,400 favorable.
Answer:
$46,500 unfavorable
Explanation:
The computation of the total sales quantity variance is as follows:
Total sales quantity variance
Sales quantity variance is
= (Actual quantity sold - Budgeted quantity) × Budgeted price
For product X, it would be
= (42,000 - 22,500) × $13
= $253,500 favorable
And, For product Y, it is
= (80,000 - 90,000) × $30
= $300,000 unfavorable
So, the total would be
= $300,000 - $253,500
= $46,500 unfavorable
This is the answer but the same would not be provided in the given options
Suppose a student-athlete has the opportunity to earn $600,000 next year playing for a minor league baseball team, $100,000 next year playing for a European professional football team, or $0 returning to college for another year.
The opportunity cost of the student-athlete returning to college next year is $
I entered $100,000 and got it wrong.
Answer:
it's 0
Explanation:
hes returning to college and making zero money
Suppose Nationwide increases the insurance premium they charge for their auto policies by 6 percent. In response, the demand for State Farm auto policies in a small town increases from 1,500 to 1,650. What is the cross-price elasticity of demand for State Farm auto policies in this town?Using the midpoint formula, the cross-price elasticity of demand for State Farm auto policies is _____. (Round to 3 decimal places.)In this instance, auto insurance from Nationwide and auto insurance from State Farm are _____.
Answer:
1.667
Explanation:
% Change in Quantity Demanded in units = (1650 - 1500 / 1500)*100 = (150/1500) * 100 = 10%
% Change in Price = [(1.06x-x)/x]*100 = (0.06/1)*100 = 6%
Cross-price elasticity of demand is given Ec = (% Change in Quantity Demanded of good / % Change in Price of good)
Cross-price elasticity of demand = 10% / 6%
Cross-price elasticity of demand = 0.10 / 0.06
Cross-price elasticity of demand = 1.6666666667
Cross-price elasticity of demand = 1.667
Therefore, the cross-price elasticity of demand of State Farm Auto Policies is 1.667.
Suppose Manuel is the only seller in the market for bottled water and Hubert is the only buyer. The following lists show the value Hubert places on a bottle of water and the cost Manuel incurs to produce each bottle of water:
Hubert's Value Manuel's Costs
Value of first bottle: $10 Cost of first bottle: $1
Value of second bottle: $7 Cost of second bottle: $3
Value of third bottle: $3 Cost of third bottle: $7
Value of fourth bottle: $1 Cost of fourth bottle: $10
The following table shows their respective supply and demand schedules:
Price Quantity Demanded Quantity Supplied
$1 or less 4 0
$1 to $3 3 1
$3 to $7 2 2
$7 to $10 1 3
More than $10 0 4
Use Raphae's supply schedule and Larry's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $5, and $8.
A price of____brings supply and demand into equilibrium.
At the equilibrium price, consumer surplus is_____producer surplus is_____, and total surp is_____.
If Raphael produced and Larry consumed one less bottle of water, total surplus would_____.
if instead, Raphael produced and Larry consumed one additional bottle of water, total surplus would_____.
Answer:
Manuel and Hubert
A price of__$5__brings supply and demand into equilibrium.
At the equilibrium price, consumer surplus is__$2___producer surplus is__$2___, and total surplus is__$4___.
If Manuel produced and Hubert consumed one less bottle of water, total surplus would__$6___.
if instead, Manuel produced and Hubert consumed one additional bottle of water, total surplus would_$6____.
Explanation:
a) Data and Calculations:
Hubert's Value Manuel's Costs
Value of first bottle: $10 Cost of first bottle: $1
Value of second bottle: $7 Cost of second bottle: $3
Value of third bottle: $3 Cost of third bottle: $7
Value of fourth bottle: $1 Cost of fourth bottle: $10
The following table shows their respective supply and demand schedules:
Price Quantity Quantity
Demanded Supplied
$1 or less 4 0
$1 to $3 3 1
$3 to $7 2 2
$7 to $10 1 3
More than $10 0 4
Using Manuel's supply schedule and Hubert's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $5, and $8.
Price Quantity Quantity
Demanded Supplied
$2 3 1
$5 2 2
$8 1 3
At the equilibrium price:
Consumer Surplus = $7 - $5 = $2
Producer Surplus = $5 - $3 = $2
Total surplus is $2 * 2 = $4
If TOMS advertised its shoes differently
Answer:
it might have more sales <3
Explanation:
Sosa Diet Supplements had earnings after taxes of $1,170,000 in 20X1 with 347,000 shares of stock outstanding. On January 1, 20X2, the firm issued 103,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 31 percent.
a. Compute earnings per share for the year 20X1. (Round your answer to 2 decimal places.)
b. Compute earnings per share for the year 20X2. (Round your answer to 2 decimal places.)
Answer:
A. $3.37
B. $3.41
Explanation:
A.Computation for earnings per share for the year 20X1
20X1 Earnings per share= $1,170,000/347,000
20X1 Earnings per share= $3.37
Therefore earnings per share for the year 20X1 will be $3.37
B. Computation for earnings per share for the year 20X2.
First step is to calculate the Earnings available to common stockholders
Earnings available to common stockholders = $1,170,000x (1+.31 )
Earnings available to common stockholders = $1,170,000x 1.31
Earnings available to common stockholders = = $1,532,700
Second step is to calculate the Common shares outstanding
Common shares outstanding = 347,000 + 103,000
Common shares outstanding = 450,000
Now let calculate the earnings per share for the year 20X2
20X2 Earnings per share=$1,532,700/450,000
20X2 Earnings per share = $3.41
Therefore earnings per share for the year 20X2 will be $3.41
The following are the trial balance and the other information related to Brian Consulting Engineer.
BRIAN CONSULTING ENGINEER
TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $29,500
Accounts Receivable 56,200
Allowance for Doubtful Accounts $754
Supplies 2,370
Prepaid Insurance 1,710
Equipment 26,900
Accumulated Depreciation-Equipment 6,232
Notes Payable 7,200
Owner’s Capital 36,778
Service Revenue 117,230
Rent Expense (13 months of rent) 10,595
Salaries and Wages Expense 34,700
Utilities Expenses 1,720
Office Expense 620
Totals $168,255 $168,255
1. Fees received in advance from clients $5,980, which were recorded as revenue.2. Services performed for clients that were not recorded by December 31, $4,558.3. Bad debt expense for the year is $1,328.4. Insurance expired during the year $519.5. Equipment is being depreciated at 10% per year.6. Pearl Perez gave the bank a 90-day, 10% note for $7,200 on December 1, 2017.7. Rent of the building is $815 per month. The rent for 2017 has been paid, as has that for January 2018, and recorded as Rent Expense.8. Office salaries and wages earned but unpaid December 31, 2017, $2,616.Pearl Perez withdrew $16,090 cash for personal use during the year.
1. From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2017.2. Prepare an income statement for 2017.
3. Prepare a classified balance sheet for 2017.
4. Prepare a statement of owner’s equity for 2017.
Answer:
Brian Consulting Engineer
1. Adjusting Entries:
a. Debit Service Revenue $5,980
Credit Unearned Fees $5,980
To record unearned fees.
b. Debit Accounts Receivable $4,558
Credit Service Revenue $4,558
To record services performed for clients.
c. Debit Bad Debt Expense $1,328
Credit Allowance for Uncollectibles $1,328
To record bad debt expense for the year.
d. Debit Insurance Expense $519
Credit Prepaid Insurance $519
To record expired insurance expense.
e. Debit Depreciation Expense- Equipment $2,690
Credit Accumulated Depreciation- Equipment $2,690
To record depreciation expense for the year.
f. Debit Interest Expense $60
Credit Interest Payable $60
To record interest expense for a month.
g. Debit Prepaid Rent $815
Credit Rent Expense $815
To record prepaid rent for January 2018.
h. Debit Salaries & Wages Expense $2,616
Credit Salaries & Wages Payable $2,616
To record accrued salaries and wages.
i. Debit Drawings $16,090
Credit Cash $16,090
To record drawing for personal use.
2. Income Statement for the year ended December 31, 2017:
Service Revenue $115,808
Depreciation Expense-
Equipment 2,690
Rent Expense 9,780
Bad Debt Expense 1,328
Salaries and
Wages Expense 37,316
Utilities Expense 1,720
Office Expense 620
Interest Expense 60
Insurance Expense 519
Suspense 3,879 $57,912
Net Income $57,896
3. Classified Balance Sheet as of the year ended December 31, 2017:
Assets
Current Assets:
Cash $13,410
Accounts Receivable 60,758
Allowance for
Doubtful Accounts 2,082 58,676
Supplies 2,370
Prepaid Insurance 1,191
Prepaid Rent 815 $76,462
Long-term Assets:
Equipment 26,900
Accumulated Depreciation 8,922 $17,978
Total assets $94,440
Liabilities + Equity
Liabilities:
Notes Payable 7,200
Salaries & Wages Payable 2,616
Interest Payable 60
Unearned Fees 5,980 $15,856
Owner’s Capital 36,778
Drawings (16,090)
Net Income 57,896 $78,584
Total Liabilities + Equity $94,440
4. Statement of Owner's Equity as of the year ended December 31, 2017:
Owner’s Capital $36,778
Drawings (16,090)
Net Income 57,896
Owner's Capital, ending $78,584
Explanation:
a) Data and Calculations:
BRIAN CONSULTING ENGINEER
TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $29,500
Accounts Receivable 56,200
Allowance for Doubtful Accounts $754
Supplies 2,370
Prepaid Insurance 1,710
Equipment 26,900
Accumulated Depreciation-Equipment 6,232
Notes Payable 7,200
Owner’s Capital 36,778
Service Revenue 117,230
Rent Expense
(13 months of rent) 10,595
Salaries and
Wages Expense 34,700
Utilities Expense 1,720
Office Expense 620
Totals $????
Adjusted Trial Balance
Debit Credit
Cash $13,410
Accounts Receivable 60,758
Allowance for Doubtful Accounts $2,082
Supplies 2,370
Prepaid Insurance 1,191
Prepaid Rent 815
Equipment 26,900
Accumulated Depreciation-Equipment 8,922
Notes Payable 7,200
Salaries & Wages Payable 2,616
Interest Payable 60
Owner’s Capital 36,778
Drawings 16,090
Service Revenue 115,808
Unearned Fees 5,980
Depreciation Expense-
Equipment 2,690
Rent Expense 9,780
Bad Debt Expense 1,328
Salaries and
Wages Expense 37,316
Utilities Expense 1,720
Office Expense 620
Interest Expense 60
Insurance Expense 519
Suspense 3,879
Totals $179,446 $179,446
The following information is related to Dickinson Company for 2020.
Retained earnings balance, January 1, 2020 $980,000
Sales revenue 25,000,000
Cost of goods sold 16,000,000
Interest revenue 70,000
Selling and administrative expenses 4,700,000
Write-off of goodwill 820,000
Income taxes for 2020 1,244,000
Gain on the sale of investments 110,000
Loss due to flood damage 390,000
Loss on the disposition of the wholesale division (net of tax) 440,000
Loss on operations of the wholesale division (net of tax) 90,000
Dividends declared on common stock 250,000
Dividends declared on preferred stock 80,000
Dickinson Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.
Required:
Prepare a multiple-step income statement and a retained earnings statement.
Answer:
Dickson Company
Multi-step Income Statement for the year ended December 31, 2020:
Sales revenue $25,000,000
Cost of goods sold 16,000,000
Gross profit $9,000,000
Interest revenue 70,000
Total revenue $9,070,000
Selling and
administrative expenses 4,700,000
Write-off of goodwill 820,000 $5,520,000
Income from operations $3,550,000
Gain on the sale of investments 110,000
Loss due to flood damage (390,000)
Income before taxes 3,270,000
Income taxes for 2020 1,244,000
Net Income $2,026,000
Loss on the disposition of
the wholesale division (net of tax) (440,000)
Loss on operations of the
wholesale division (net of tax) (90,000)
Comprehensive Income $1,496,000
EPS = $2.992
Statement of Retained Earnings for the year ended December 31, 2020:
Comprehensive Income $1,496,000
Retained earnings balance, Jan, 1 980,000
Dividends: common stock 250,000
Dividends: preferred stock 80,000 (330,000)
Retained earnings, December 31 $2,146,000
Explanation:
a) Data and Calculations:
Retained earnings balance, January 1, 2020 $980,000
Sales revenue 25,000,000
Cost of goods sold 16,000,000
Interest revenue 70,000
Selling and administrative expenses 4,700,000
Write-off of goodwill 820,000
Income taxes for 2020 1,244,000
Gain on the sale of investments 110,000
Loss due to flood damage 390,000
Loss on the disposition of the wholesale division (net of tax) 440,000
Loss on operations of the wholesale division (net of tax) 90,000
Dividends declared on common stock 250,000
Dividends declared on preferred stock 80,000
b) EPS = $2.992 ($1,496,000/500,000 shares)
The Coffee Shop around the Corner (CS) is famous for its fresh-made muffins. Hank, the owner of CS, knows that the demand for muffins depends very much on the time of the day: The demand is high in the morning decreases in the afternoon hours and is at its lowest in the evening. Hank is having trouble deciding how many muffins to make for each period of the day. He asked you to help him forecast the demand. If you do a good job in forecasting the demand for tomorrow, Hank will pay you to do this job on a recurring basis. The following is the demand data Hank collected in the past three days:
Day 1 2 3
Period Morning Afternoon Evening Morning Afternoon Evening Morning Afternoon Evening
Demand 37 25 9 48 28 14 53 33 17
Using a 5-period moving average, forecast the morning, afternoon and evening demand for muffins on day 4.
Answer:
The Coffee Shop around the Corner (CS)
5-period Moving Average Forecast of Demand
Day 4 Based on Average Educated Guess
Morning 29.8 41
Afternoon 29.8 30
Evening 30.8 19
Explanation:
a) Data and Calculations:
Day 1 Demand 5-period Moving
Average
Morning 37
Afternoon 25
Evening 9
Day 2
Morning 48
Afternoon 28 29.4
Evening 14 24.8
Day 3
Morning 53 30.4
Afternoon 33 35.2
Evening 17 29.0
Day 4
Morning 29.8
Afternoon 29.8
Evening 30.8
b) Given that for the past three days, coffee demand in the evenings had not exceeded 20, we can tweak the evening demand to less than 20 and carry the remainder to the morning when demand is always high. In that case, the demand on day 4 may read more like, Morning 41, Afternoon 30, and Evening 19.
After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Nuclear Landscaping Co.:________.
Felix Godwin, Capital $643,600
Felix Godwin, Drawing 10,500
Fees Earned 356,500
Wages Expense 283,100
Rent Expense 56,000
Supplies Expense 11,500
Miscellaneous Expense 13,000
Journalize the two entries required to close the accounts.
Answer:
April 30
Dr Fees earned 356,500
Cr Income summary356,500
April 30
Dr Income summary 363,600
Cr Wages expense 283,100
Cr Rent expense 56,000
Cr Supplies expense 11,500
Cr Miscellaneous expense 13,000
April 30
Dr Felix Goodwin, capital 7,100
Cr Income summary 7,100
April 3.0
Dr Felix Goodwin, capital 10,500
Cr Felix Goodwin, drawing 10,500
Explanation:
Preparation of the journal entry for the two entries required to close the accounts.
April 30
Dr Fees earned 356,500
Cr Income summary356,500
April 30
Dr Income summary 363,600
(283,100+56,000+11,500+13,000)
Cr Wages expense 283,100
Cr Rent expense 56,000
Cr Supplies expense 11,500
Cr Miscellaneous expense 13,000
April 30
Dr Felix Goodwin, capital 7,100
Cr Income summary 7,100
(363,600-356,500)
April 3.0
Dr Felix Goodwin, capital 10,500
Cr Felix Goodwin, drawing 10,500
TRANSACTIONS
1. Paid $2,100 for utilities.
2. Performed services for $10,500 on account
3. Received $6,500 from charge account customers
4. Paid salaries of $4,500 to employees
5. Paid $8,000 to a creditor on account.
6. Owner invested $90,000 in the business.
7. Purchased $26,700 of supplies on account.
8. Purchased equipment for $21,000 cash
9. Paid $6,000 for rent (in advance).
10. Performed services for $7,800 cash.
Indicate the impact of each of the transactions below on the fundamental accounting equation (Assets Liabilities+Owner's Equity) by placing a "+" to indicate an increase and a "-" to indicate a decrease. The first transaction is entered as an example. (If transaction causes one account to increase and another to decrease within the same classification of the accounting equation, select +/-)
Assets Liabilities +Owner's Equity
Transaction 1
Transaction 2
Transaction 3
Transaction 4
10. Performed services for $7,800 cash.
indicate the impact of each of the transactions below on the fundamental accounting equation (Assets = Liabilities + Owner's Equity) by placing a "+" to indicate an increase and a "-" to indicate a decrease. The first transaction is entered as an example. (If transaction causes one account to increase and another to decrease within the same classification of the accounting equation, select
+1) Assets Liabilities Owner's Equity
Transaction 1
Transaction 2
Transaction 3
Transaction 4
Transaction 5
Transaction 6
Transaction 7
Transaction 8
Transaction 9
Transaction 10
Answer:
Transactions and their Effects on the Accounting Equation
1. Paid $2,100 for utilities.
Assets (Cash -$2100) = Liabilities + Equity (Retained Earnings -$2100)
2. Performed services for $10,500 on account
Assets (Accounts Receivable +$10,500) = Liabilities + Equity (Retained Earnings +$10,500)
3. Received $6,500 from charge account customers
Assets (Cash +$6,500; Accounts Receivable -$6,500) = Liabilities + Equity
4. Paid salaries of $4,500 to employees
Assets (Cash -$4,500) = Liabilities + Equity (Retained Earnings -$4,500)
5. Paid $8,000 to a creditor on account.
Assets (Cash -$8,000) = Liabilities (Accounts payable -$4,500) + Equity
6. Owner invested $90,000 in the business.
Assets (Cash +$90,000) = Liabilities + Equity (Common Stock +$90,000)
7. Purchased $26,700 of supplies on account.
Assets (Inventory +$26,700) = Liabilities + Equity (Retained Earnings +$26,700)
8. Purchased equipment for $21,000 cash
Assets (Equipment +$21,000; Cash -$21,000) = Liabilities + Equity
9. Paid $6,000 for rent (in advance).
Assets (Cash -$6,000; Prepaid Rent +$6,000) = Liabilities + Equity
10. Performed services for $7,800 cash.
Assets (Cash +$7,800) = Liabilities + Equity (Retained Earnings + $7,800)
Explanation:
The effects of transactions on the accounting equation of assets = liabilities + equity demonstrates that each transaction affects two accounts and makes the equation to remain in balance.
On November 1, Jasper Company loaned another company $270,000 at a 8.0% interest rate. The note receivable plus interest will not be collected until March 1 of the following year. The company's annual accounting period ends on December 31. The amount of interest revenue that should be reported in the first year is:
Answer:
The interest revenue that should be reported in the first year, for two months from November to December, on 31 December is $3600.
Explanation:
According to the accrual basis of accounting, the revenues and expenses for a particular period should be recorded in the period to which they relate to rather then when they are received or paid. This means that although the interest will be received on March 1 of the next year, the interest revenue on note receivable for a period of two months from November to December should be recorded in the first year because it has been earned in the first year and it relates to it.
Interest revenue - first year = 270000 * 0.08 * 2/12 = $3600
Skysong Industries collected $92,400 from customers in 2022. Of the amount collected, $22,000 was for services performed in 2021. In addition, Skysong performed services worth $35,200 in 2022, which will not be collected until 2023. Skysong Industries also paid $63,360 for expenses in 2022. Of the amount paid, $26,400 was for expenses incurred on account in 2021. In addition, Skysong incurred $36,960 of expenses in 2022, which will not be paid until 2023.
(a) Compute 2022 cash-basis net income.
(b) Compute 2022 accrual-basis net income. Accrual-basis net income $
Answer:
(a) Compute 2022 cash-basis net income.
Revenue $92,400
Expenses ($63,360)
Net income $29,040
(b) Compute 2022 accrual-basis net income.
Revenue ($92,400 - $22,000 + $35,200) $105,600
Expenses ($63,360 - $26,400 + $36,960) ($73,920)
Net income $31,680
Fox Corporation has provided its contribution format income statement for June. The company produces and sells a single product: sales (2,700 units), $261,900; variable costs, $102,600; contribution margin, $159,300; fixed costs, $136,300; and operating profit, $23,000.If the company sells 3,000 units, its total contribution margin should be closest to _____.A. $25,556
Answer:
Total contribution margin= $177,000
Explanation:
First, we need to calculate the unitary contribution margin:
Unitary contribution margin= total contribution margin / number of units
Unitary contribution margin= 159,300 / 2,700
Unitary contribution margin= $59
Now, the total contribution margin for 3,000 units:
Total contribution margin= 3,000*59
Total contribution margin= $177,000
Ananda owns a clothing store that sells graphic T-shirts. N is the number of shirt she sells each month. the revenue function of her store is our equals 25n the cost function of her store is C equals 10n +900 using a calculator what is the breaking even point of Amanda store
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.
The GDP deflator for this year is calculated by dividing the___using_____by the____using_____and multiplying by 100. However, the CPI reflects only the prices of all goods and services______. Indicate whether each scenario will affect the GDP deflator or the CPI for the United States.
Shows up in the... GDP
Scenario Deflator CPI
A decrease in the price of a Treewood Equipment feller
buncher, which is a commercial forestry machine made
in the U.S. but not bought by U.S. consumers.
An increase in the price of a Japanese-made television
that is popular among U.S. consumers.
Answer:
GDP deflator for this year is calculated by dividing the value of all goods and services produced in the economy using this year's prices by the value of all goods and services produced in the economy using the base year's prices. However, the CPI reflects only the prices of all goods and services bought by the consumers.
1. Scenario: A decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine made in the U.S. but not bought by U.S. consumers
Shows up: In the GDP Deflator not CPI
2. Scenario: An increase in the price of a Japanese-made television that is popular among U.S. consumers.
Shows up: In the CPI not GDP Deflator
Davis acquires 100% of Reynolds in an acquisition . At date of acquisition , Reynolds had in process research and development costs they had spent $300, 000 for 3 years ago and is now recorded on its books at $100, 000 This R and D has not yet reached technological feasibility and no alternative use has been identified. At acquisition date, Reynolds continues to work on this project and the fair value is considered to be $200, 000. How much will Davis recorded this for at acquisition date using the:__________.
a. Acquisition method
b. Purchase method
c. Pooling of interests method
d. Do either of answers a, b, c above differ is this transaction was structured as either a statutory merger or statutory consolidation.
Answer:
a) When an asset is acquired in any form, it is been acquired at the fair market value of that asset which is $200,000. In this case, since the product is not yet technically feasible, so the same amount shall be disclosed in the balance sheet as it is still contingent.
b) When an asset it purchased we look for market value of the asset. So it will be booked at $200,000 but the contingent clause shall not be mentioned here.
c) In case of pooling of interest the book value of the asset i.e $ 1,000,000 shall be the value to be recorded in the books of account.
d) The answers would not differ.