Recording Transactions Using Journal Entries and T-Accounts Receive $40,000 cash in exchange for common stock. Purchase $4,000 of inventory on credit. Sell inventory for $6,000 on credit. Record $4,000 for cost of inventory sold in 3. Collect $6,000 cash from transaction 3. Acquire $10,000 of equipment by signing a note. Pay wages of $2,000 in cash. Pay $10,000 on a note payable that came due. Pay $4,000 cash dividend.

Answer:

a. See the explanation below for the journal entries.

b. each of the following accounts have an ending balance (in red color) after the recording as follows:

Cash, $27,000;

Common stock, $40,000;

Accounts payable, $4,000;

Accounts receivable, $3,000;

Equipment, $10,000.

However, each of the other accounts will have a zero ending balance.

Explanation:

a. Recording Transactions Using Journal Entries

The journal entries will look as follows:

Accounts Name                               Dr ($)                 Cr ($)    

Cash                                               40,000

Common stock                                                         40,000

(To record cash receipts for common stock.)                          

Inventory                                           4,000

Accounts payable                                                      4,000

(To record inventory purchase.)                                              

Account receivable                          6,000

Sales                                                                           6,000

(To record credit sales.)                                                            

Cost of sales                                     4,000

Inventory                                                                     4,000

(To record cost of sales.)                                                            

Cash                                                  3,000

Account receivable                                                    3,000

(To cash collected from credit sales.)                                        

Equipment                                       10,000

Note payable                                                            10,000

(To record purchase of equipment by issuing note.)                

Wages                                               2,000

Cash                                                                            2,000

(To record wages paid in cash.)                                                

Note payable                                   10,000

Cash                                                                            10,000

(To record note due paid.)                                                          

Dividend                                            4,000

Cash                                                                             4,000

(To record cash dividend paid.)                                                  

b. Recording Transactions Using T-Accounts

Note: See the attached excel file for the  T-Accounts.

From the attached excel file, each of the following accounts have an ending balance (in red color) after the recording as follows:

Cash, $27,000;

Common stock, $40,000;

Accounts payable, $4,000;

Accounts receivable, $3,000;

Equipment, $10,000.

However, each of the other accounts will have a no or zero ending balance.

Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the first process. Additional information for the first process follows. During November, the first process transferred 700,000 units of product to the second process. At the end of November, work in process inventory consists of 180,000 units that are 30% complete with respect to conversion. Beginning work in process inventory had $420,000 of direct materials and $139,000 of conversion cost. The direct material cost added in November is $2,220,000, and the conversion cost added is $3,254,000. Beginning work in process consisted of 60,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 60,000 were from beginning work in process and 640,000 units were started and completed during the period. Required: For the first process: 1. Determine the equivalent units of production with respect to direct materials and conversion.

Identify the choice that best completes the statement.
Economic models:_______.
a. cannot be useful if they are based on false assumptions
b. were once thought to be useful, but that is no longer true.
c. must incorporate all aspects of the economy if they are to be useful.
d. can be useful, even if they are not particularly realistic.

Alpha and Beta, two small economies, can produce cheese or butter with the same resource, raw milk. Assuming constant opportunity costs, Alpha can produce either 30 pounds of cheese or 15 pounds of butter per day. Beta can produce either 40 pounds of cheese or 10 pounds of butter per day.

The opportunity cost of producing one pound of butter for Alpha is

a. two-thirds of a pound of cheese.
b. half of a pound of cheese.
c. two pounds of cheese.
d. one pound of cheese.
e. one and a half pounds of cheese

Newhard Company assigns overhead cost to jobs on the basis of 115% of direct labor cost. The job cost sheet for Job 313 includes $17,435 in direct materials cost and $10,100 in direct labor cost. A total of 1,350 units were produced in Job 313. Required: a. What is the total manufacturing cost assigned to Job 313

IF U GET RIGHT U GET BRAINLY

The following information is available pertaining to Iris Division that uses a plantwide overhead rate based on machine hours:
Mixing Dept. Finishing Dept. Total
Overhead $60,000 $150,000 $210,000
Direct labor-hours 7,500 2,500 10,000
Machine-hours 2,500 7,500 10,000
Production information pertaining to Job 101:
Mixing Dept. Finishing Dept. Total
Prime costs $10,000 $0 $10,000
Direct labor-hours 250 0 250
Machine-hours 10 10 20
Units produced 500 0 500
What are the total overhead costs assigned to Job 101? $240, $420, $360, or $180

For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product.

a. Property taxes, factory.
b. Boxes used for packaging detergent produced by the company.
c. Salespersons' commissions.
d. Supervisor's salary, factory.
e. Depreciation, executive autos.
f. Wages of workers assembling computers.
g. Insurance, finished goods warehouses.
h. Lubricants for production equipment.
i. Advertising costs.
j. Microchips used in producing calculators.
k. Shipping costs on merchandise sold.
l. Magazine subscriptions, factory lunchroom.
m. Thread in a garment factory.
n. Billing costs.
o. Executive life insurance.
p. Ink used in textbook production.
q. Fringe benefits, assembly-line workers.
r. Yarn used in sweater production.
s. Wages of receptionist, executive offices.

A company issued 8%, 15-year bonds with a par value of $580,000 that pay interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is:_________
A. Debit Bond Interest Expense $23,200; credit Cash $23,200.
B. Debit Bond Interest Expense $46,400; credit Cash $46,400.
C. Debit Bond Interest Payable $38,667; credit Cash $38,667.
D. Debit Bond Interest Expense $530,000; credit Cash $530,000.
E. No entry is needed, since no interest is paid until the bond is due.

Selected financial data regarding current assets and current liabilities for Queen’s Line, a competitor in the cruise line industry, is provided:($ in millions)Current assets: Cash and cash equivalents $ 331 Current investments 63 Net receivables 230 Inventory 116 Other current assets 135Total current assets $ 875 Current liabilities: Accounts payable $1,025 Short-term debt 694 Other current liabilities 919 Total current liabilities $2,638Required:Calculate the current ratio and the acid-test ratio for Queen’s Line.

Trevor Williams Company borrowed $10,000 from Mike Trout National Bank on May 1, 2019. Interest on the note, which accumulates at 6% annually, is paid when the loan principal is repaid. The loan remains outstanding on June 30 when both the Williams Company’s and the Trout National Bank close their books to prepare financial statements. Other than cash, The Williams Company’s balance sheet shows which of these amounts related to the loan?
a. Reduce June's pre-tax income by $50
b. Reduce June's pre-tax income by $100
c. Increase June's pre-tax income by $100
d. Increase June's pre-tax income by $50

Organization Weighs Use of Open Source Software. You began operating a small general electric contracting company two years ago. Originally, it was just you and your cousin, but it has grown to five licensed electricians, plus one office manager who takes calls from customers, schedules the work, and orders parts and supplies. Your company handles a wide range of work, including installing new circuit breaker panels, rewiring existing electrical systems for renovations and additions, and installing residential light fixtures, security lighting systems, swimming pool lighting, and ceiling fans. Business has really taken off, and your current manual systems and procedures can no longer keep pace. The office manager has been exploring several options and has identified three different software packages designed for small contractors. Each one of the packages includes software designed for managing parts and supplies inventory, scheduling jobs, and invoicing customers. One of the packages also provides the capability to perform accounts receivable and accounts payable functions. Two of the software packages are from large, well-known companies, and both have an initial licensing cost of roughly $550 plus $100 per year for software support. The other software package is open-source software, with no initial cost and no support cost. The office manager is unsure how to proceed, but has your agreement to spend up to $1000 on new software.
Which one of the following should be your next step?
a. Define the basic business functions that you need the software to be able perform.
b. Determine the date by which you need the new software installed and operational.
c. Talk to your cousin Vinnie who is an accountant in a large manufacturing firm.
d. Set an exact limit on how much you are willing to spend on office software.

Holly took a prospective client to dinner, and after agreeing to a business deal, they went to the theater. Holly paid $320 for the meal and separately paid $238 for the theater tickets, amounts that were reasonable under the circumstances. What amount of these expenditures can Holly deduct as a business expense

Sobota Corporation has provided the following partial listing of costs incurred during August: Marketing salaries $ 51,600 Property taxes, factory $ 15,700 Administrative travel $ 104,400 Sales commissions $ 54,700 Indirect labor $ 42,300 Direct materials $ 168,800 Advertising $ 138,000 Depreciation of production equipment $ 41,200 Direct labor $ 90,900 Required: a. What is the total amount of product cost listed above

Department G had 3,600 units 25% completed at the beginning of the period, 11,000 units were completed during the period; 3,000 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period:
Work in process, beginning of period $40,000
Costs added during period:
Direct materials (10,400 units at $8) 83,200
Direct labor 63,000 Factory overhead 25,000
All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. The total cost of the departmental work in process inventory at the end of the period (round unit cost calculations to four decimal places is:______.
All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. What is the total cost of the units started and completed during the period (round unit cost calculations to four decimal places)?
a. $211,200.
b. $20,934.
c. $190,275.
d. $120,060.
Department G had 3,600 units 25% completed at the beginning of the period, 11,000 units were completed during the period; 3,000 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period:
Work in process, beginning of period $40,000
Costs added during period:
Direct materials (10,400 units at $8) 83,200
Direct labor 63,000
Factory overhead 25,000
All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. What is the total cost of 3,600 units of beginning inventory which were completed during the period (round unit cost calculations to four decimal places)?
a. $19,275.
b. $40,000.
c. $62,206.
d. $16,163.

Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December, he performed $38,000 of legal services for a client. Hank typically requires his clients to pay his bills immediately upon receipt. Assume his marginal tax rate is 32 percent this year and will be 37 percent next year, and that he can earn an after-tax rate of return of 12 percent on his investments.
a. What is the after-tax income if Hank sends his client the bill in December?After- tax income ?b. What is the after-tax income if Hank sends his client the bill in January? (Do not round intermediate calculations. Round "PV Factor" to 3 decimal places. Round your answer to 2 decimal places.)after-tax income ?c. Should Hank send his client the bill in December or January?DecemberJanuaryd. What is the after-tax income if Hank expects his marginal tax rate to be 25 percent next year and sends his client the bill in January? (Round "PV Factor" to 3 decimal places. Round your answer to 2 decimal places.)After-tax income ?

Below are transactions for Wolverine Company during 2021.
1. On December 1, 2021, Wolverine receives $4,000 cash from a company that is renting office space from Wolverine. The payment, representing rent for December and January, is credited to Deferred Revenue.
2. Wolverine purchases a one-year property insurance policy on July 1, 2021, for $13,200. The payment is debited to Prepaid Insurance for the entire amount.
3. Employee salaries of $3,000 for the month of December will be paid in early January 2022.
4. On November 1, 2021, the company borrows $15,000 from a bank. The loan requires principal and interest at 10% to be paid on October 30, 2022.
5. Office supplies at the beginning of 2021 total $1,000. On August 15, Wolverine purchases an additional $3,400 of office supplies, debiting the Supplies account. By the end of the year, $500 of office supplies remains.
Required:
Record the necessary adjusting entries at December 31, 2021, for Wolverine Company. You do not need to record transactions made during the year. Assume that no financial statements were prepared during the year and no adjusting entries were recorded.

Career choice, getting/keeping a job, career changes, career advancement skills are examples of

A. employability skills

B. diversity

C. professional image

D. transferable skills

The following information applies to the questions displayed below.]
Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Its unadjusted trial balance as of December 31 follows along with descriptions of items a through h that require adjusting entries on December 31.
Additional Information Items
An analysis of WTI's insurance policies shows that $3,600 of coverage has expired.
An inventory count shows that teaching supplies costing $3,120 are available at year-end.
Annual depreciation on the equipment is $14,400.
Annual depreciation on the professional library is $7,200.
On September 1, WTI agreed to do five courses for a client for $2,500 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $12,500 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees.
On October 15, WTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $11,450 of the tuition has been earned by WTI.
WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
The balance in the Prepaid Rent account represents rent for December
WELLS TECHNICAL INSTITUTE
Unadjusted Trial Balance
December 31
Debit Credit Cash 28,000 Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned training fees T. Wells, Capital T. Wells, Withdrawals Tuition fees earned 10,768 16,155 2,155 32,307 9,693 75,368 17,232 38,113 12,500 68,493 43,078 109,846 40,923 Training fees earned Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense 51,694 Rent expense Teaching supplies expense Advertising expense Utilities expense 23,705 7,539 6,031 296,800 $296,800 Totals Journal entry worksheet 2 1 4 5 6 7 8 An analysis of WTI's insurance policies shows that $3,600 of coverage has expired. Note: Enter debits before credits. Transaction General Journal Debit Credit а. Record entry Clear entry View general journal
General journal entry
b: An inventory count shows that teaching supplies costing $3,120 are available at year-end.
c: Annual depreciation on the equipment is $14,400.
d: Annual depreciation on the professional library is $7,200.
e: On September 1, WTI agreed to do five courses for a client for $2,500 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $12,500 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees.
f: On October 15, WTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $11,450 of the tuition has been earned by WTI.
g: WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
h: WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.

a plan that will enable an organization to make the best use of its resources to meet its objectives is called a​

If the required reserve ratio is 10% and the central bank sells $100,000 of government securities to bank X, then government securities will_______ by ______ and the money supply will _______ *

1) Increase; $100,000; decrease by $1,000,000

2) Increase; $100,000; increase by $100,000

3) Decrease; $100,000; decrease by $100,000

4) Decrease; $100,000; increase by $1,000,000​

A. Finance, or financial management, requires the knowledge and precise use of the language of the field.
Match the terms relating to the basic terminology and concepts of the time value of money on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term.
Term Answer
Description
Discounting A. A schedule or table that reports the amount of principal and the amount of interest that make up each payment made to repay a loan by the end of its regular term.
Time value of money B. A loan in which the payments include interest as well as loan principal.
Amortized loan C. A value that represents the interest paid by borrowers or earned by lenders, expressed as a percentage of the amount borrowed or invested over a 12-month period.
Ordinary annuity D. A process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate.
Annual percentage rate E. The name given to the amount to which a cash flow, or a series of cash flows, will grow over a given period of time when compounded at a given rate of interest.
Annuity due F. A 6% return that you could have earned if you had made a particular investment.
Perpetuity G. A concept that maintains that the owner of a cash flow will value it differently, depending on when it occurs.
Future value H. A series of equal cash flows that occur at the beginning of each of the equally spaced intervals (such as daily, monthly, quarterly, and so on).
Amortization schedule I. A cash flow stream that is generated by a share of preferred stock that is expected to pay dividends every quarter indefinitely.
Opportunity cost of funds J. A series of equal cash flows that occur at the end of each of the equally spaced intervals (such as daily, monthly, quarterly, and so on).
B. Time value of money calculations can be solved using a mathematical equation, a financial calculator, or a spreadsheet. Which of the following equations can be used to solve for the present value of a perpetuity?
PMT/r
FV/(1 + r)nn
PMT x ({1 – [1/(1 + r)nn]}/r)
PV x (1 + r)n

Who prepares, creates, and is solely accountable for the official Financial Statements of a publicly traded company

AdCreate negotiated a rate of 12.5% for a commission system payment with Worry Free Financial for a campaign in 2016. AdCreate arranged for the airing of three ads, during Newshour on CNN, in the first week of the launch campaign. AdCreate's income for these three ads in the first week was $49,375. Based on this information, which of the following is true?
I. The client (Worry Free Financial) paid AdCreate $425,625 for the three ads.
II. AdCreate paid CNN $425,625 for the three ads.
III. AdCreate paid CNN $345,625 for the three ads.
a. Ill only
b. I and ll
c. II only
d. I only

Koch traded Machine 1 for Machine 2 when the fair market value of both machines was $49,750. Koch originally purchased Machine 1 for $75,500, and Machine 1's adjusted basis was $40,250 at the time of the exchange. Machine 2's seller purchased it for $64,750 and Machine 2's adjusted basis was $55,250 at the time of the exchange. What is Koch's adjusted basis in machine 2 after the exchange

Tuna Corporation reported pretax book income of $1,008,000. During the current year, the net reserve for warranties increased by $29,000. In addition, book depreciation exceeded tax depreciation by $108,000. Finally, Tuna subtracted a dividends received deduction of $19,000 in computing its current-year taxable income. Book equivalent of taxable income is:

Presented below is information related to Novak Company at December 31, 2020, the end of its first year of operations.
Sales revenue $291,980
Cost of goods sold 128,220
Selling and administrative expenses 51,800
Gain on sale of plant assets 27,190
Unrealized gain on available-for-sale debt investments 10,240
Interest expense 5,700
Loss on discontinued operations 12,550
Dividends declared and paid 4,600
Compute the following:
A) Income from operations.
B) Net income.
C) Comprehensive income.
D) Retained earnings balance at December 31, 2017.

What requires frequent safety and health inspections

Maria is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Maria has only 20 hours this week that she can devote to training. Each hour she spends swimming is an hour that she can't spend biking or running. Which basic principle of individual choice do these statements best illustrate?

a. Maria has an incentive to spend more time on swimming than on biking or running.
b. People usually exploit opportunities to make themselves better off.
c. Maria can use lime most efficiently by spending the same amounts of time on swimming, biking, and running.
d. People face trade-offs

The Smelting Department of Polzin Company has the following production and cost data for September.
Production: Beginning work in process 2,000 units that are 100% complete as to materials and 20% complete as to conversion costs; units started and finished 9,000 units; and ending work in process 1,000 units that are 100% complete as to materials and 40% complete as to conversion costs.
Manufacturing costs: Work in process, September 1, $15,200; materials added $60,000; labor and overhead $132,000. Polzin uses the FIFO method to compute equivalent units.

Required:
Compute the equivalent units of production for (1) materials and (2) conversion costs for the month of September.

Which of the following is NOT a benefit of putting money in a savings account?
A. You can make frequent withdrawals
B. You can earn interest
C. Its harder to spend the money
D. The money is safe and secure