Answer:
Current ratio = 0.33 times
Acid test ratio = 0.29 times
Explanation:
• Current ratio
Current ratio = Total current assets ÷ Total current liabilities
= $875 ÷ $2,638
= 0.33 times
• Acid test ratio
Acid test ratio = Quick assets ÷ total current liabilities
Where,
Quick assets = Total current assets - Inventory
= $875 - $116
= $759
Recall total current liabilities = $2,638
Therefore,
Acid test ratio = $759 ÷ $2,638
Acid test ratio = 0.29 times
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.
Answer:
Direct materials = 880,000 units Conversion = 754,000 unitsExplanation:
a. Direct materials
Direct materials are added at the beginning of the process which means that the ending WIP is already 100% complete with respect to direct materials.
EUP Direct materials = Finished goods + Closing EUP
= 700,000 + 180,000
= 880,000 units
b. Conversion
= Finished goods + Closing EUP
= 700,000 + (0.30 * 180,000)
= 700,000 + 54,000
= 754,000 units
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.
Answer:
Wolverine Company
Adjusting Journal Entries:
1. Debit Deferred Revenue $2,000
Credit Rent Revenue $2,000
To record rent revenue for December.
2. Debit Insurance Expense $6,600
Credit Prepaid Insurance $6,600
To record the insurance expense for the year.
3. Debit Salaries Expense $3,000
Credit Salaries Payable $3,000
To record the unpaid salaries expense.
4. Debit Interest Expense $250
Credit Interest Payable $250
To accrue interest expense for 2 months.
5. Debit Supplies Expense $3,900
Credit Supplies $3,900
To record the supplies used during the year.
Explanation:
a) Data and Calculations:
1. Rent Revenue = $2,000 ($4,000/2)
2. Insurance Expense = $6,600 ($13,200*6/12)
3. Salaries Expense $3,000 and Salaries Payable $3,000
4. Interest Expense = $250 ($15,000 * 10% * 2/12)
5. Office Supplies:
Beginning balance $1,000
Purchases 3,400
Ending balance 500
Supplies Expense $3,900
b) Adjusting journal entries are made in order to allocate revenue and expenses to the period in which they are earned or incurred. This agrees with the accrual concept and the matching principle of generally accepted accounting principles, which require that revenue and expenses are recognized in the period they occur instead of when cash is exchanged.
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
Answer:
C
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
By choosing to produce one pound of butter, Alpha is forgoing the opportunity to produce one more pound of cheese
Opportunity cost = 30/15 = 2
a plan that will enable an organization to make the best use of its resources to meet its objectives is called a
Answer:Marketing strategy
Explanation:
A marketing strategy refers to a business's entire game plan containing its value proposition that enables it meet its objectives by optimizing its resources which include strategizing for the best of its products, its price,distribution and promotion in a sustainable competitive advantage all geared at gaining prospective consumers and maintaining them as constant customers of its goods or services.
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.
Answer:
a. Define the basic business functions that you need the software to be able to perform.
Explanation:
The main function of a business needs to be determined so that business strategy can be formulated. The office manager has made an agreement to spend up to $1000 on the new software. It is now required to determine the basic functions which are needed in the new software for business functioning.
The following selected information was extracted from the 20x1 accounting records of Lone Oak Products:
Raw material purchases ................................ $ 175,000
Direct labor ......................................................... 254,000
Indirect labor ...................................................... 109,000
Selling and administrative salaries .................. 133,000
Building depreciation ........................................... 80,000
Other selling and administrative expenses ..... 195,000
Other factory costs ............................................. 344,000
Sales revenue ($130 per unit) ........................ 1,495,000
Seventy-five percent of the company’s building was devoted to production activities; the remaining 25 percent was used for selling and administrative functions.
Inventory data:
January1 December31
Raw material 15800 18200
Work in process 35700 62100
Finished goods 111100 97900
The January 1 and December31 finished-goods inventory consisted of 1,350 units and 1,190 units, respectively.
Required:
1. Calculate Lone Oak’s manufacturing overhead for the year.
2. Calculate Lone Oak’s cost of goods manufactured.
3. Compute the company’s cost of goods sold.
4. Determine net income for 20x1, assuming a 30% income tax rate.
5. Determine the number of completed units manufactured during theyear.
Answer:
1. $513,000
2. $913,200
3. $926,400
4. $154,420
5.11340 Units
Explanation:
1. Calculation for Lone Oak’s manufacturing overhead for the year.
Manufacturing overhead
Indirect labor 109,000
Building depreciation (80000*75%) 60,000
Other factory cost 344,000
Manufacturing overhead $513,000
2. Calculation for Lone Oak’s cost of goods manufactured.
First step is to calculate the Direct material used
Direct material used = 15,800+175000-18200
Direct material used= 172,600
Second step is to calculate the Total manufacturing cost
Total manufacturing cost = 172,600+254,000+513,000
Total manufacturing cost= 939,600
Now let calculate the Cost of goods manufactured
Cost of goods manufactured = 35,700+939,600-62100
Cost of goods manufactured = $913,200
3. Compution for the company’s cost of goods sold.
Cost of goods sold = 111100+913,200-97900
Cost of goods sold = $926,400
4. Calculation to Determine net income for 20x1, assuming a 30% income tax rate.
Net income :
Sales 1495000
Cost of goods sold -926,400
Gross profit 568,609
Selling and administrative expense (133000+20000+195000) 348000
Profit 220,600
Tax 30% 66,180
Net income $154,420
(220,600-66,180)
(25%*80,000=20,000)
5. Calculation to Determine the number of completed units manufactured during theyear.
No of unit completed = 1190+(1,495,000/$130 per unit)-1350
No of unit completed =1190+11500-1350
No of unit completed = 11340 Units
1. The calculation of Lone Oak's manufacturing overhead for the year is $513,000.
2. The calculation of Lone Oak's cost of goods manufactured is $913,200.
3. The computation of Lone Oak's cost of goods sold is $926,400.
4. The net income for 20x1 with a 30% income tax rate is $247,520.
5. The number of completed units manufactured during the year is 11,340 units.
Data and Calculations:Raw material purchases = $175,000
Direct labor = $254,000
Indirect labor = $109,000
Selling and administrative salaries = $133,000
Building depreciation =$80,000
Factory Depreciation = $60,000 ($80,000 x 75%)
Selling and administration Depreciation = $20,000 ($80,000 x 25%)
Other selling and administrative expenses = $195,000
Other factory costs = $344,000
Sales revenue ($130 per unit) = $1,495,000
Inventory data:January 1 December 31
Raw material $15,800 $18,200
Work in process $35,700 $62,100
Finished goods $111,100 $97,900
Units of finished goods 1,350 1,190
Manufacturing Overhead:Indirect labor = $109,000
Factory depreciation = $60,000 ($80,000 x 75%)
Other factory costs = $344,000
The total manufacturing overhead = $513,000.
Raw material:Account titles Debit Credit
Beginning balance $15,800
Purchase of raw materials 175,000
Work in process $172,600
Ending balance $18,200
Work in processAccount titles Debit Credit
Beginning balance $35,700
Raw materials 172,600
Direct labor 254,000
Manuf. overhead 513,000
Finished goods $913,200
Ending balance $62,100
Finished goodsAccount titles Debit Credit
Beginning balance $111,100
Work in process 913,200
Cost of goods sold $926,400
Ending balance $97,900
Lone Oak's Income StatementSales Revenue $1,495,000
Cost of goods sold 926,400
Gross profit $568,600
Expenses:
Selling and distribution $195,000
Depreciation 20,000
Total expenses $215,000
Income before tax $353,600
Tax (30%) 106,080
Net income $247,520
Units of finished goods:Ending balance 1,190
Units sold 11,500 ($1,495,000/$130)
Total available for sale 12,890
Beginning balance 1,350
Units sold = 11,340
Learn more about computing cost of goods sold at https://brainly.com/question/25076617
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
Answer:
Allocated MOH= $420
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 210,000 / 10,000
Predetermined manufacturing overhead rate= $21 per machine hour
Now, we can allocate overhead to Job 101:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 21*20
Allocated MOH= $420
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 ?
Answer:
Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship.
a. The after-tax income if Hank sends his client the bill in December
= $26,098.40
b. The after-tax income if Hank sends his client the bill in January:
= $23,700.60
c. Hank should send his client the bill in December.
d. After-tax income if Hank expects his marginal tax rate to be 25% next year and sends his client the bill in January:
= $28,215
Explanation:
a) Data and Calculations:
Value of services performed = $38,000
Marginal tax rate this year = 32%
Marginal tax rate next year = 37%
After-tax return on investments = 12%
1. Bill sent in December:
After-tax income
For services rendered = $25,840 ($38,000 * (1 - 0.32))
After-tax return on $25,840 investment for 1 month = $258.40 ($25,840 * 12%)/12
Total after-tax income = $26,098.40
2. Bill sent in January:
After-tax income
For services rendered = $23,700.60 ($38,000 * (1 - 0.37) * 0.990
3. Bill sent in January with marginal tax rate = 25% next year:
After-tax income
For services rendered = $28,215 ($38,000 * (1 - 0.25) * 0.990
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.
Answer:
Total Cost of Work in Process
$57,854
Total cost of the units
d. $120,060
Total cost of beginning inventory
c. $62,206
Explanation:
Department G has 3,600 units which were 25% completed. The units completed during the period are 11,000.
3,600 * 25% = 900
Units completed 11,000
total units 11,900
Cost per unit is $10.08.
Total cost of units completed = 11,900 * 10.08 = $120,060.
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
Answer:
Trevor Williams Company
a. Reduce June's pre-tax income by $50
Explanation:
a) Data and Calculations:
Bank loan = $10,000
Date of loan = May 1, 2019
Interest rate on loan = 6%
This amounts to an interest expense of $600 ($10,000 * 6%) per annum
Accounting year end = June 30
To account for the two months at year-end, the interest expense will be $100 ($600 * 2/12), but to account for only June, the interest expense is only $50.
b) Interest expense, whether paid for in cash or not, reduces the pre-tax income. It is accounted for in the income statement after the earnings before interests and taxes.
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
I 'm not sure but the answer might be 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
Answer:
1) Increase; $100,000; decrease by $1,000,000
Explanation:
Given that
The required reserve ratio is 10%
And, the sale of the government securities is $100,000
So the government securities would be increased by $100,000 and the money supply would be decreased by
= $100,000 ÷ 0.10
= $1,000,000
Hence, the correct option is 1.
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
Answer:
a.) 111 only
Explanation:
Let amount paid = x
12.5% of x = $49375
0.125x = 49375
x = 49375 / 0.125
x = 395,000
The amount worry free financial paid Adcreate is $395,000 ;
Adcreate would subtract their 12.5% ($49,375) and pay CNN;
Amount adcreate paid CNN is :
$395,000 - $49,375 = $345,625
Hence, statements; I. The client (Worry Free Financial) paid AdCreate $425,625 for the three ads.
II. AdCreate paid CNN $425,625 for the three ads.
are untrue
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.
Answer:
The correct answer is the option D: Can be useful, even if they are not particulary realistic.
Explanation:
To begin with, the economic models are believed to have been made decades ago by classical economists like Adam Smith and David Ricardo so that explains that nowadays there is a whole different context around the world and the economy of every country and about how those country see and treat they economics objectives so that means that even though that the models created years ago are not quite realistic nowadays and everything falls out when it comes to the real world and the practice, those models can be quite useful in order to understand how some things in the economy works.
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
Answer:
The Tax Cuts and Jobs Act changed how meals and entertainment can be deducted:
The C.O.V.I.D Relief Bill allows businesses to deduct up to 100% of the cost of business meals (regularly it would be 50% only) = $320
But entertainment is not deductible, so $0
total deduction (for 2020) = $320
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.
Answer:
a. Property taxes, factory. Fixed Cost. Indirect Manufacturing Cost.
b. Boxes used for packaging detergent produced by the company. Variable cost. Direct Manufacturing cost.
c. Salespersons' commissions. Variable cost. Selling cost.
d. Supervisor's salary, factory. Fixed cost. Indirect manufacturing cost.
e. Depreciation, executive autos. Fixed cost. Administrative cost.
f. Wages of workers assembling computers. Variable cost. Direct manufacturing cost.
g. Insurance, finished goods warehouses. Fixed cost. Selling cost.
h. Lubricants for production equipment. Variable cost. Indirect manufacturing cost.
i. Advertising costs. Fixed cost. Selling costs.
j. Microchips used in producing calculators. Variable costs. Direct manufacturing cost.
k. Shipping costs on merchandise sold. Variable cost. Selling cost.
l. Magazine subscriptions, factory lunchroom. Fixed cost. Indirect manufacturing cost.
m. Thread in a garment factory. Variable cost. Indirect manufacturing cost.
n. Billing costs. Variable cost. Selling cost.
o. Executive life insurance. Fixed cost. Administrative cost.
p. Ink used in textbook production. Variable cost. Indirect manufacturing cost.
q. Fringe benefits, assembly-line workers. Variable cost. Indirect manufacturing cost.
r. Yarn used in sweater production. Variable cost. Direct manufacturing cost.
s. Wages of receptionist, executive offices. Fixed cost. Administrative cost.
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
Answer:
machine 2 45,000
acc depreciation mchine 1 35,000
machine 1 75,000
The seller valuation are not relevant the important is the fair value. Which is 50,000.
If there was commercial substance we will recognize a gain for 5,000
(50,000 fair value - 45,000 book value)
However, we are not given with information of commercial substance, so we should not recognize any gain or loss in trade.
The machine 2 will enter the accounting for the same value as the previous machine net book.
Explanation:
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.
Answer and Explanation:
The computation is shown below:
(a) Income from Operation is
= Sales Revenue - COGS - Selling & admin exp
= $291,980 - $128,220 - $51,800
= $111,960
(b) Net Income is
= Sales Revenue - COGS - Selling & admin exp + Gain on sales of assets - Interest exp - Loss on Discontinued Operations
= $291,980 - $128,220 - $51,800 + $27,190 - $5,700 - $12,550
= $120,900
(c) Comprehensive Income is
= Net Income + Unrealized gain on available for sale investments
= $120,900 + $10,240
= $131,140
(d) Retained earning ending balance is
= Net Income - Dividends declare & paid
= $120,900 - $4,600
= $116,300
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.
Answer:
Insurance Expense (Dr.) $3,600
Prepaid Insurance (Cr.) $3,600
Teaching Supplies Expense (Dr.) $3,120
Cash (Cr.) $3,120
Depreciation Expense (Dr.) $14,400
Accumulated Depreciation (Cr.) $14,400
Cash (Dr.) $12,500
Unearned Training Fees (Cr.) $12,500
Accounts Receivable (Dr.) $11,450
Training Fees (Cr.) $11,450
Salaries Expense (Dr.) $400
Salaries Payable (Cr.) $400
Rent Expense (Dr.) $2,155
Prepaid Rent (Cr.) $2,155
Explanation:
Adjusting entries are prepared at year end or month end for the closing of the transactions that occurred during the month in the business operations. These transactions can be routine transactions or one off which occur only once. The cash received in advance for the training fees is recorded as unearned revenue until it is fully earned. This is accrual concept in accounting.
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
Answer:
b
Explanation:
Who prepares, creates, and is solely accountable for the official Financial Statements of a publicly traded company
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.
Answer and Explanation:
The computation of the equivalent units of products for material and conversion is as follows:
(1)
For material
= 9,000 units + 1,000 units
= 10,000 units
(2)
for conversion
= 2,000 units × (1 - 20%) + 9,000 units + 1,000 units + 1,000 units × 40%
= 1,600 units + 9,000 units + 400 units
= 11,000 units
IF U GET RIGHT U GET BRAINLY
Answer:
I'd think 40 it looks like an acute angle and acute angles are less than 90 and If you subtract the numbers you have
155-115 = 40
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:
Answer:
$989,000
Explanation:
The computation of the book equivalent of the taxable income is given below:
Pretax book income $1,008,000
Less: Favorable permanent differences $19,000
Book Equivalent of Taxable Income $989,000
We simply deduct the dividend deduction from the pretax book income so that the book equivalent of taxable income would be come
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
Answer:
the total manufacturing cost is $39,150
Explanation:
The computation of the total manufacturing cost assigned as follows:
Overhead costs is
= 115% of $10,100
= $11,615
Now the total manufacturing cost is
= Direct materials cost + Direct labor costs + Overhead costs
= $17,435 + $10,100 + $11,615
= $39,150
Hence, the total manufacturing cost is $39,150
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.
Answer: Debit Bond Interest Expense $23,200; credit Cash $23,200.
Explanation:
With regards to the above, we should note that due to the fact that the bonds are issued at par, no discount will be involved for this particular bond. Therefore, the interest expense will be calculated as:
= (580,000 × 8% × 15) / 2
= (580,000 × 0.08 × 15)/2
= 348,000
Then, each semiannual interest payment will be:
= $348,000 / 15
= $23200
Therefore, journal entry to record each semiannual interest payment is:
Debit Bond Interest Expense $23,200;
Credit Cash $23,200.
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
Answer:
D
Explanation:
Maria's time (resource) is limited so she has to choose between activities. This is known as trade off. Due to unlimited wants and limited resources available to fulfil the needs, humans must choose between activities.
This concept of trade off also gives rise to opportunity cost
opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
If Maria swims, she forgoes the opportunity to go bike riding or running
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
Answer:
1. Amortization Schedule.
2. Amortized loan.
3. Annual Percentage rate.
4. Discounting.
5. Future Value.
6. Opportunity cost of funds.
7. Time value of money.
8. Annuity due.
9. Perpetuity.
10. Ordinary annuity.
11. PMT/r.
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP).
Some of the financial terminologies used in financial accounting are;
1. Amortization Schedule: 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.
2. Amortized loan: A loan in which the payments include interest as well as loan principal.
3. Annual Percentage rate: 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.
4. Discounting: A process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate.
5. Future Value: 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.
6. Opportunity cost of funds: A 6% return that you could have earned if you had made a particular investment.
7. Time value of money: A concept that maintains that the owner of a cash flow will value it differently, depending on when it occurs.
8. Annuity due: 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).
9. Perpetuity: A cash flow stream that is generated by a share of preferred stock that is expected to pay dividends every quarter indefinitely.
10. Ordinary annuity: 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).
11. Time value of money calculations can be solved using a mathematical equation, a financial calculator, or a spreadsheet. The equation which can be used to solve for the present value of a perpetuity is given below;
Present value of a perpetuity (PV) = PMT/r
Where;
PMT represents the payment amount.r represents the annual interest rate.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
Answer:
Product costs= $259,700
Explanation:
Giving the following information:
Direct materials $ 168,800
Direct labor $ 90,900
The product costs are all expenses directly involved in the production. It generally involves the prime costs (direct material and direct labor).
Product costs= direct material + direct labor
Product costs= 168,800 + 90,900
Product costs= $259,700
What requires frequent safety and health inspections
Answer:
The food and drug industry
Explanation:
The Pure Food and Drug Act of 1906