Answer:
Instructions are below.
Explanation:
1)
a) First, we need to calculate the total estimated overhead:
Total overhead= 1,100,000 + (5*50,000)= 1,350,000
Now, we can determine the overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,350,000/50,000
Predetermined manufacturing overhead rate= $27 per machine hour
b)
Job D-75:
Total cost= direct material + direct labor + allocated overhead
Total cost= 700,000 + 360,000 + 27*20,000
Total cost= $1,600,000
Job C-200:
Total cost= 550,000 + 400,000 + 27*30,000
Total cost= $1,760,000
c) Selling price= 150% of manufacturing costs
Job D-75= 1,600,000*1.5= $2,400,000
Job C-200= 1,760,000*1.5= $2,640,000
d) COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 0 + (1,600,000 + 1,760,000) - 0
COGS= $3,360,000
2)
a)
Molding= (800,000/20,000) + 5= $45 per machine hour
Assembly= (300,000/30,000) + 5= $15 per machine hour
b)
Job D-75:
Total cost= 700,000 + 360,000 + 45*20,000
Total cost= $$1,960,000
Job C-200:
Total cost= 550,000 + 400,000 + 15*30,000
Total cost= $1,400,000
c)
Job D-75= 1,960,000*1.5= $2,940,000
Job C-200= 1,400,000*1.5= $2,100,000
d) COGS= 0 + (1,960,000 + 1,400,000) + 0
COGS= $3,360,000
Crawford Corporation incurred the following transactions:1. Purchased raw materials on account $47,000.2. Raw Materials of $44,200 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,300 was classified as indirect materials.3. Factory labor costs incurred were $60,100, of which $51,000 pertained to factory wages payable and $9,100 pertained to employer payroll taxes payable.4. Time tickets indicated that $54,400 was direct labor and $5,700 was indirect labor.5. Manufacturing overhead costs incurred on account were $83,600.6. Depreciation on the company's office building was $8,600.7. Manufacturing overhead was applied at the rate of 160% of direct labor cost.8. Goods costing $94,800 were completed and transferred to finished goods9. Finished goods costing $81,800 to manufacture were sold on account for $110,300.Required:Journalize the above transactions.
Answer:
Crawford Corporation
General Ledger
1.
Raw Materials $47,000 (debit)
Account Payable $47,000 (credit)
2.
Work In Process : Direct Materials $36,900 (debit)
Work In Process : Indirect Materials $7,300 (debit)
Raw Materials $44,200 (credit)
3.
Work In Process $51,000 (debit)
Salaries Expenses $9,100 (debit)
Salaries Payable $60,100 (credit)
4.
Work In Process : Direct Labor $54,400 (debit)
Work In Process : Indirect Labor $5,700 (debit)
Salaries Expenses $9,100 (debit)
Salaries Payable $60,100 (credit)
5.
Overheads $83,600 (debit)
Accounts Payable $83,600 (credit)
6.
Depreciation Expense - Building $8,600 (debit)
Accumulated Depreciation - Buildings $8,600 (credit)
7.
Work In Process $87,040 (debit)
Overheads $87,040 (credit)
8.
Finished Goods $94,800 (debit)
Work In Process $94,800 (credit)
9.
Accounts Receivable $110,300 (debit)
Cost of Goods Sold $81,800 (debit)
Sales Revenue $110,300 (credit)
Finished Goods $81,800 (credit)
Explanation:
See the Journal entries for Crawford Corporation and their respective transaction number recorded above.
The following costs and inventory data were taken from the accounts of Simon Company for 2010:
January 1, 2011 December 31, 2011
Inventories:
Raw materials $ 8,000 $ 7,000
Work in process 15,000 13,000
Finished goods 16,000 12,000
Costs incurred at the end of December 31, 2011:-
Raw materials purchases $83,000
Direct labor 42,000
Factory rent 8,000
Factory utilities 10,000
Indirect materials 4,000
Indirect labor 6,000
Operating expenses 17,000
Instructions
a. Prepare a schedule showing the amount of direct materials used in production during the year.
b. Compute the amount of manufacturing overhead incurred during the year.
c. Prepare a schedule of Cost of Goods Manufactured for Simon Company for the year ended December 31, 2011 in good form.
d. Prepare the Cost of Goods Sold section of the Income Statement for Simon Company for the year ended December 31, 2011 in good form.
Answer:
Part a
Direct Materials Schedule
Beginning Materials $ 8,000
Add Purchases $83,000
Less Ending Materials ($ 7,000)
Less Indirect materials ($4,000)
Direct Materials Used in Production $80,000
Part b
Overheads Incurred during the year
$
Factory rent 8,000
Factory utilities 10,000
Indirect materials 4,000
Indirect labor 6,000
Total Overheads $28,000
Part c
Cost of Goods Manufactured Schedule
Direct Materials $80,000
Direct labor $42,000
Overheads $28,000
Add Opening Work In Process $15,000
Less Closing Work In Process ($13,000)
Cost of Goods Manufactured $152,000
Part d
Cost of Goods Sold
Beginning Finished goods Inventory $16,000
Add Cost of Goods Manufactured $152,000
Less Ending Finished Goods Inventory ($12,000)
Cost of Goods Sold $156,000
Explanation:
The following steps must be done to reach the cost of goods sold :
Use the Manufacturing Cost Schedule to calculate the Cost of Goods ManufacturedUse the Finished Goods Inventory Account to calculate the Cost of Goods Sold.See the calculations and schedules prepared above.
Character is one factor used in determining credit worthiness
-true
-false
What part of your social media strategy is working against your goals?
1. Calculate the sales commission per unit sold. If required, round your answers to the nearest dollar. Use rounded answers in subsequent computations.
Answer: $20
Explanation:
The sales commission is 6% and the selling price per unit is $340.
The Sales commission per unit saved therefore is;
= 340 * 6%
= $20.40
= $20
5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal places.)
Complete Question:
The Company has the following transactions related to its top-selling Mongoose mountain bike for the month of March. The Company uses a periodic inventory system.
Date Transactions Units Unit Cost Total Cost
March 1 Beginning inventory 20 $230 $4,600
March 5 Sale ($360 each) 15
March 9 Purchase 10 250 2,500
March 17 Sale ($410 each) 8
March 22 Purchase 10 260 2,600
March 27 Sale ($435 each) 12
March 30 Purchase 8 280 2,240
For the specific identification method, the March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase.
Required:
a. Calculate ending inventory and cost of goods sold at March 31, 2015, using the specific identification method. The March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes
from beginning inventory and eight bikes from the March 22 purchase.
b. Using FIFO, calculate ending inventory and cost of goods sold at March 31, 2015.
c. Using LIFO, calculate ending inventory and cost of goods sold at March 31, 2015.
d. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31, 2015.(Round your intermediate and final answers to 2 decimal places.)
e. Calculate sales revenue and gross profit under each of the four methods.
Answer:
The Company
Ending Inventory:
a. Specific Identification:
Beginning inventory 1 * $230 = $230
March 9 purchase 2 * $250 = 500
March 22 purchase 2 * $260 = 520
March 30 Purchase 8 * $280 =2,240
Total value of inventory 13 units = $3,490
Cost of goods sold = Cost of goods available for sale Minus Ending Inventory
= $11,940 - $3,490
= $8,450
b. FIFO:
March 22 Purchase 5 260 1,300
March 30 Purchase 8 280 2,240
Ending Inventory 13 $3,540
Cost of goods sold = Goods available for sale Minus Ending Inventory
= $11,940 - $3,540
= $8,400
c. LIFO:
Ending Inventory:
March 1 Inventory 13 $230 $2,990
Cost of goods sold = Goods available for sale Minus Ending Inventory
= $11,940 - $2,990
= $8,950
d) Weighted -Average Cost:
Ending Inventory = $248.75 * 13 = $3,233.75
Cost of Goods Sold = $248.75 * 35 = $8,706.25
Specific FIFO LIFO Weighted
Identification Average
Sales $13,900 $13,900 $13,900 $13,900.00
Cost of goods sold 8,450 8,400 8,950 $8,706.25
Gross profit $5,450 $5,500 $4,950 $5,193.75
Explanation:
Dat and Calculations:
Shop uses periodic inventory system
Date Transactions Units Unit Cost Total Cost Total
March 1 Beginning inventory 20 $230 $4,600 Sales
March 5 Sale ($360 each) 15 $360 $5,400
March 9 Purchase 10 250 2,500
March 17 Sale ($410 each) 8 $410 $3,280
March 22 Purchase 10 260 2,600
March 27 Sale ($435 each) 12 $435 $5,220
March 30 Purchase 8 280 2,240
Total Goods available for sale 48 35 $11,940 $13,900
Ending Inventory = 13 (48 - 35)
Weighted average cost = Cost of goods available for sale/Units of Goods available for sale
= $11,940/48 = $248.75
Specific Identification:
March 5 sale 15 consists of bikes from 15 beginning inventory Bal 5 - 4 = 1
March 17 sale 8 consists of bikes from the March 9 purchase Bal = 2
March 27 sale 12 consists of four bikes from beginning inventory and eight bikes from the March 22 purchase Bal = 2
Ending Inventory:
Specific Identification:
Beginning inventory 1 * $230 = $230
March 9 purchase 2 * $250 = 500
March 22 purchase 2 * $260 = 520
March 30 Purchase 8 * $280 =2,240
Total value of inventory 13 units = $3,490
FIFO:
March 22 Purchase 5 260 1,300
March 30 Purchase 8 280 2,240
Ending Inventory 13 $3,540
LIFO:
March 1 Beginning inventory 13 $230 $2,990
Weighted-Average Costs:
Ending Inventory = $248.75 * 13 = $3,233.75
Cost of Goods Sold = $248.75 * 35 = $8,706.25
A firm that has extra cash Multiple Choice Should always invest it in U.S. equities. should invest it in the safest projects available. should always reinvest it in new equipment. should pay it out to shareholders unless the firm can earn a higher rate of return on the cash than the shareholders can earn by investing in the capital market.
Answer:
should pay it out to shareholders unless the firm can earn a higher rate of return on the cash than the shareholders can earn by investing in the capital market.
Explanation:
Following is a complete list of accounts and account balances that appear in the general ledger as of August 1, 2020 for Flourish and Botts, Co. bookstore. Assume all accounts have their normal debit or credit balance.
Account: Amount: Account: Amount:
Cash $9,021 Common Stock $84
Accounts Receivable (A/R) $13,992 Additional Paid-In Capital $6,408
Inventory $4,033 Retained Earnings $7,220
Prepaid Rent $200 Sales Revenue $0
Equipment $7,200 Cost of Goods Sold $0
Accumulated Depreciation-Equipment $800 Wages Expense $0
Accounts Payable (A/P) $11,844 Interest Expense $0
Deferred Revenue $3,055 Depreciation Expense $0
Interest Payable $35 Rent Expense $0
Notes Payable $5,000
The following transactions were observed for August 2020:
Date: Transaction:
8/3 Purchased merchandise inventory on account for $11,941
8/6 Sold merchandise inventory, which originally cost $13,088, to customers for $20,972. Customers paid $2,400 in cash, the remaining $18,572 was purchased by customers on account.
8/16 Paid $2,750 in cash to workers for work done in August.
8/20 Received $17,046 in cash payments from customers on their accounts receivable.
8/27 Paid creditors $14,635 in cash for accounts payable.
Required:
Record all of the above transactions that occurred during the period using journal entries. Make sure to use proper formatting for all entries, and to include the date of each entry and a brief description of each entry. Do not make any end of the period adjusting or closing entries.
Answer:
Date Particular Debit Credit
8/3 Purchases 11,941
Account payable 11,941
8/6 Cost of good sold 13,088
Inventory 13,088
8/6 Account Receivable 18,572
Cash 2,400
Revenue 20,972
8/16 Wages expense 2,750
Cash 2,750
8/20 Cash 17,046
Account Receivable 17,046
8/27 Account payable 14,635
Cash 14,635
Which of the following is the best example of an ethical statement?
On September 1, Boylan Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred.
Sept. 6 Purchased with cash 80 calculators at $20 each from Guthrie Co.
Sept. 9 Paid freight of $80 on calculators purchased from Guthrie Co.
Sept. 10 Returned 3 calculators to Guthrie Co. for $63 cash (including freight) because they did not meet specifications.
Sept. 12 Sold 26 calculators costing $21 (including freight) for $31 each on account to Lee Book Store, terms n/30.
Sept. 14 Granted credit of $31 to Lee Book Store for the return of one calculator that was not ordered.
Sept. 20 Sold 30 calculators costing $21 for $32 each on account to Orr's Card Shop, terms n/30.
Journalize the September transactions.
Answer and Explanation:
The journal entries are shown below:
Inventory $1,600 (80 × $20)
To Accounts Payable $1,600
(Being inventory purchased on account)
Inventory $80
To Cash $80
(Being the freight charges is paid)
Accounts Payable $63
To Inventory $63
(being returned inventory is recorded
Accounts Receivable $806 (26 × $31)
To Sales Revenue $806
(Being sale of calculators on account is recorded)
Cost of Goods Sold $546 (26 × $21)
To Inventory $546
(being cost of calculators sold is recorded)
Sales Returns and Allowances $31
To Accounts Receivable $31
(Being return of calculator that is recorded)
Inventory $31
Cost of Goods Sold $31
(Being cost of calculators returned is recorded)
Accounts Receivable $960 (30 × $32)
To Sales Revenue $960
(Being sale of calculators on account is recorded)
Cost of Goods Sold $630 (30 × $21 )
To Inventory $630
(Being cost of calculators sold is recorded)
I WILL GIVE BRAINLIEST
Operations managers typically make more money than operators.
O True
O False
Product Director: We need to pick the best manager for the Prensabi software project. The project involves the latest technology and is very complicated. For example, this project uses a technology called Stage, which is a motion-capture technique that does not require actors to wear specialized gear to record their movements. Since this is a technical project that requires strong technical skills, we should pick the manager with the strongest technical skills. Executive: The manager needs some familiarity with the technology, but he or she won't actually be writing the software code. The bigger challenge here is to analyze the goals of the project and make sure that it is being developed according to a strong overall vision. That's why we should insist that the manager has outstanding conceptual skills. Which of the following, if true, weakens the product director's argument?
a) The project manager with the weakest technical skills also has the weakest human skills
b) The Prensabi project is so large that the project manager for the Prensab project will be unable to take on any other projects until the Prensabi project is inished.
c) The requirements of the Prensabi project are highly unusual.
d) The project manager with the strongest technical skills has no experience with
e) The project manager with the strongest conceptual skills has the weakest technical skills.
Answer:
The correct answer is: d) The project manager with the strongest technical skills has no experience with
Explanation:
Analyzing the scenario of the question above, it can be considered that the Project manager with the strongest technical skills has no experience with.
This would be the alternative that would weaken the argument of the product director, who says that the biggest challenge is to analyze the objectives of the project and make sure that it is being developed according to a strong overview. That is why we must insist that the manager has excellent conceptual skills.
Conceptual skills are those that allow the manager to have a total view of the organization in a systematic way, where there is experience to manage each part that integrates the organization in an effective way, conceptual skills are a set of knowledge and experiences for the decision making process decision-making is carried out in the best way.
Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. The selling price and cost per unit data for 9,130 units of Fluoro2211 are as follows.
Per Unit Data
Selling Price $410
Direct Materials 150
Direct Labor 28
Variable Manufacturing Overhead 25
Fixed Manufacturing Overhead 43
Variable Selling 16
Fixed Selling and Administrative 23
Total Costs 285
Operating Margin $125
During the next year, sales of Fluoro2211 are expected to be 10,130 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and direct materials, which will increase by 10%. The selling price per unit for next year will be $420. Based on these data, Razor Inc.'s total contribution margin for next year will be: __________
Answer:
Total contribution margin= $1,884,180
Explanation:
Giving the following information:
Direct Materials 150
Direct Labor 28
Variable Manufacturing Overhead 25
Variable Selling 16
Sales in units= 10,130
Selling price= $420
Direct material cost= 150*1.1= $165
First, we need to calculate the unitary contribution margin:
Unitary contribution margin= selling price - total unitary variable cost
Unitary contribution margin= 420 - (28 + 25 + 16 + 165)
Unitary contribution margin= $186
Now, the total contribution margin:
Total contribution margin= 10,130*186
Total contribution margin= $1,884,180
If the amount of credit is 300,000 how much is the discount if the debtor is given a credit term of 2/10 N/30?show your
Answer:
6,000
Explanation:
In credit sales, 2/10 Net 30 means that the seller has offered the customer a trade discount. 2/10 net 30 is a conditional discount available if payment is made in 10 days. It's a 2% discount should the customer pay in 10 days, if not so, the full amount is due within 30 days.
The discount amount for 300,000 is 2 percent of 300,000.
=2/100 x 300,000
=0.02 x 300,000
=6,000
A small country is collecting more money than it spends. What is MOST likely the fiscal policy stance that this government takes?
expansionary stance
contractionary stance
economic stance
neutral stance
Answer:
Contractionary stance
Explanation:
When the government collects more extra money than it is spending, it signals a robust and fast-growing economy. Contractionary fiscal policy measures are applied to slow down growth and reduce inflationary pressure.
The contractionary fiscal policy is the government's mechanism of reducing the money supply in the economy. The government may reduce its spending in the economy, increase business taxes, or both. These actions decrease the money supply in the economy, which reduces the amount that businesses can borrow to expand. The objective is to lower the aggregate demand, thereby slowing the country's rate of producing new goods and services.
how can you use information about a person's values to help you relate more effectively to him or her."
Answer: bec if you know the person’s values your are able to better communicate with them because you know their likes and dislikes you have had the chance and opportunity to get to know them and that can help you achieve your goal.
Explanation:
If you know the person’s values you are able to better communicate with them because you know their likes and dislikes you have had the chance and opportunity to get to know them and that can help you achieve your goal.
what is the quality definition of Verbal exchange?
1a: a system by way of which facts are exchanged between people thru a common device of symbols, signs, and symptoms, or behavior the function of pheromones in insect verbal exchange also: alternate of data. b: private rapport is a loss of communication between old and young people.
Why is verbal exchange crucial?Top verbal exchange abilities are vital to allow others and yourself to understand facts extra correctly and fast. In contrast, terrible conversation abilities cause frequent misunderstandings and frustration.
Learn more about Verbal Exchange at https://brainly.com/question/2421884
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Prepare an adjusted trial balance. If an amount
Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; Optional Spreadsheet.
The unadjusted trial balance of Recessive Interiors at January 31, 2019, the end of the year, follows:
Debit Balances Credit Balances
11 Cash 13,100
13 Supplies 8,000
14 Prepaid Insurance 7,500
16 Equipment 113,000
17 Accumulated Depreciation—Equipment 12,000
18 Trucks 90,000
19 Accumulated Depreciation—Trucks 27,100
21 Accounts Payable 4,500
31 Jeanne McQuay, Capital 126,400
32 Jeanne McQuay, Drawing 3,000
41 Service Revenue 155,000
51 Wages Expense 72,000
52 Rent Expense 7,600
53 Truck Expense 5,350
59 Miscellaneous Expense 5,450
325,000 325,000
The following additional accounts from Recessive Interiors' chart of accounts should be used: Wages Payable, 22; Depreciation Expense-Equipment, 54; Supplies Expense, 55; Depreciation Expense-Trucks, 56; Insurance Expense, 57.
The data needed to determine year-end adjustments are as follows:
Supplies on hand at January 31 are $2,850.
Insurance premiums expired during the year are $3,150.
Depreciation of equipment during the year is $5,250.
Depreciation of trucks during the year is $4,000.
Wages accrued but not paid at January 31 are $900.
Required:
Journalize the adjusting entries.
Answer:
Recessive Interiors
1. Adjusted Trial Balance
As of January 31, 2019:
Debit Credit
11 Cash $13,100
13 Supplies 2,850
14 Prepaid Insurance 4,350
16 Equipment 113,000
17 Acc. Depreciation—Equipment $17,250
18 Trucks 90,000
19 Accumulated Depreciation—Trucks 31,100
21 Accounts Payable 4,500
22 Wages Payable 900
31 Jeanne McQuay, Capital 126,400
32 Jeanne McQuay, Drawing 3,000
41 Service Revenue 155,000
51 Wages Expense 72,900
52 Rent Expense 7,600
53 Truck Expense 5,350
54 Depreciation-Equipment 5,250
55 Supplies Expense 5,150
56 Depreciation-Trucks 4,000
57 Insurance Expense 3,150
59 Miscellaneous Expense 5,450
$335,150 $335,150
2. Adjusting Journal Entries:
Debit 55 Supplies Expense $5,150
Credit 13 Supplies $5,150
To record the supplies expense for the period.
Debit 57 Insurance Expense $3,150
Credit 14 Prepaid Insurance $3,150
To record insurance expense that has expired.
Debit 54 Depreciation Expense - Equipment $5,250
Credit 17 Accumulated Depreciation-Equipment $5,250
To record depreciation expense for the period.
Debit 56 Depreciation Expense - Trucks $4,000
Credit 19 Accumulated Depreciation-Trucks $4,000
To record depreciation expense for the period.
Debit 51 Wages Expense $900
Debit 22 Wages Payable $900
To accrue unpaid wages expenses.
Explanation:
a) Data and Calculations: Unadjusted Adjustments Adjusted
Debit Credit Debit Credit Debit Credit
11 Cash $13,100 $13,100
13 Supplies 8,000 $5,150 2,850
14 Prepaid Insurance 7,500 3,150 4,350
16 Equipment 113,000 113,000
17 Acc. Depreciation—Equipment 12,000 5,250 17,250
18 Trucks 90,000 90,000
19 Accumulated Depreciation—Trucks 27,100 4,000 31,100
21 Accounts Payable 4,500 4,500
22 Wages Payable 900 900
31 Jeanne McQuay, Capital 126,400 126,400
32 Jeanne McQuay, Drawing 3,000 3,000
41 Service Revenue 155,000 155,000
51 Wages Expense 72,000 900 72,900
52 Rent Expense 7,600 7,600
53 Truck Expense 5,350 5,350
54 Depreciation Expense-Equipment 5,250 5,250
55 Supplies Expense 5,150 5,150
56 Depreciation-Trucks 4,000 4,000
57 Insurance Expense 3,150 3,150
59 Miscellaneous Expense 5,450 5,450
325,000 325,000 18,450 18,450
On January 20, 2017, Tamira Nelson, the accountant for Picton Enterprises, is feeling pressure to complete the annual financial statements. The company president has said he needs up-to-date financial statements to share with the bank on January 21 at a dinner meeting that has been called to discuss Picton's obtaining loan financing for a special building project. Tamira knows that she will not be able to gather all the needed information in the next 24 hours to prepare the entire set of adjusting entries. Those entries must be posted before the financial statements accurately portray the company's performance and financial position for the fiscal period ended December 31, 2016. Tamira ultimately decides to estimate several expense accruals at the last minute. When deciding on estimates for the expenses, she uses low estimates because she does not want to make the financial statements look worse than they are. Tamira finishes the financial statements before the deadline and gives them to the president without mentioning that several account balances are estimates that she provided.
Required:
1. Identify several courses of action that Tamira could have taken instead of the one she took.
2. If you were in Tamira's situation, what would you have done?
Answer:
this case tells us about some sort of pressures that accounts feel when financial statements are needed urgently
Explanation:
1) As for using low estimates, this step was wrong on her part. she should have been upfront in her estimates. for the items that she could not estimate there should have been an indication that such items were still under review, instead of doing what she did to give the financial estimate a good look. Using guesses or deliberately using low estimates was a bad idea, GAAP would never condone that.
She should have met with the president and let him know that finalization of the financial statements would not possible within the time frame that he has given. She could have also explain that such delays are normal and she would have given estimates of when the draft internal copy would be made available to him. such steps she took could have resulted in serious consequences for the company
2) I would not inflate or deflate the figures on purpose to make financial statements look better. If it is time to present the draft and final year-end financial statements I will have to tell the truth on the numbers and estimations used and also the reasons for that. i would have explained the constraints that i was facing. if i was still being pressurized by the president, i would have no choice than to call it quits instead of going against the ethics of my profession, since there are both ethical and legal implications to not giving inaccurate financial statements.
Maisie Taft started her own consulting firm, Maisie Consulting, on May 1, 2020. The following transactions occurred during the month of May.
May 1 Maisie invested $7,000 cash in the business.
2 Paid $900 for office rent for the month.
3 Purchased $800 of supplies on account.
5 Paid $125 to advertise in the County News.
9 Received $4,000 cash for services performed.
12 Withdrew $1,000 cash for personal use.
15 Performed $6,400 of services on account.
17 Paid $2,500 for employee salaries.
20 Made a partial payment of $600 for the supplies purchased on account on May 3.
23 Received a cash payment of $4,000 for services performed on account on May 15.
26 Borrowed $5,000 from the bank on a note payable.
29 Purchased equipment for $4,200 on account.
30 Paid $275 for utilities.
Questions:
A. Prepare an income statement for the month of May.
B. Prepare a balance sheet at May 31, 2020.
Answer:
A. NET INCOME $6,600
B. TOTAL ASSETS $22,000
TOTAL LIABILITIES AND EQUITY $22,000
Explanation:
A. Preparation of income statement for the month of May.
Maisie Taft INCOME STATEMENT for May 2020
Service Revenue $10,400
($4,000 + $6,400)
Less: Expenses
Rent expense ($900)
Advertising expense ($125)
Salaries expense ($2,500)
Utilities expense ($275)
NET INCOME $6,600
Therefore the Net income on the income statement for the month of May 2020 will be $6,600
B. Preparation of balance sheet at May 31, 2020
Maisie Taft BALANCE SHEET at May 31, 2020
ASSETS:
Cash $14,600
Accounts receivable $2,400
Supplies $800
Equipment $4,200
TOTAL ASSETS $22,000
(14,600+2,400+800+4,200)
LIABILITIES:
Accounts payable $4,400
Notes payable $5,000
Total liabilities $9,400
($4,400+$5,000)
EQUITY:
Owner's equity $7,000
Retained earnings $5,600
($6,600 - $1,000)
Total equity $12,600
($7,000+$5,600)
TOTAL LIABILITIES AND EQUITY $22,000
($9,400 + $12,600)
CASH
May 1 Cash $7,000
2 Paid Office rent ($900)
5 Paid to advertise ($125)
9 Cash Received $4,000
12 Cash Withdrew ($1,000)
17 Paid employee salaries ($2,500)
20 Supplies purchased ($600)
23 Cash payment $4,000
26 Note payable $5,000
30 Utilities ($275)
CASH $14,600
ACCOUNT RECEIVABLES
May 15 $6,400
May 23 ($4,000)
ACCOUNT RECEIVABLES $2,400
ACCOUNT PAYABLE
May 3 $800
May 20 ($600)
May 29 $4,200
ACCOUNT PAYABLE $4,400
Therefore the Total asset on the balance sheet at May 31, 2020 will be $22,000 and the Total liabilities and equity on the balance sheet at May 31, 2020 will be $22,000
During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures on the project were $3,000,000, of which 40% occurred after the technological feasibility of the product had been established. The product was completed and offered for sale on January 1, 2021. During 2021, revenues from sales of the product totaled $4,800,000. The package is expected to be successfully marketable for five years, and the total revenues over the life of the product are estimated to be $20,000,000.
Required
A. Prepare the journal entry to account for the development of this product in 2020.
B. Prepare the journal entry to record the amortization of capitalized computer software development costs in 2021.
C. What disclosures are required in the December 31, 2021, financial statements regarding computer software costs?
At December 31, 2021, the unamortized software intangible asset totals ______. This is equal to _____ originally capitalized less amortization in 2021 of _______. The amount charged to expense as amortization of software intangible asset in 2021 was ______. The estimated net realizable value of computer software is greater than the remaining unamortized software intangible asset.
Answer:
Answer:
PC Software Inc.
A. Journal Entry to account for the development of software in 2020:
Debit Software $1,200,000
Debit Development Expenses $1,800,000
Credit Cash Account $3,000
To capitalize 40% software development costs.
B. Journal Entry to amortize Capitalize Computer Software Development in 2021:
Debit Amortization Expense $240,000
Credit Accumulated Amortization - Software $240,000
To record the amortization of the capitalized software.
C. At December 31, 2021, the unamortized software intangible asset totals _$960,000_____. This is equal to _$1,200,000____ originally capitalized less amortization in 2021 of _ $240,000______. The amount charged to expense as amortization of software intangible asset in 2021 was _$240,000_____. The estimated net realizable value of computer software is greater than the remaining unamortized software intangible asset.
Explanation:
The choice is for PC Software Inc. to follow the US GAAP rule, which states that development costs incurred for an internally-generated software should be capitalized only when the software is commercially feasible. Based on this, only 40% of the software expenditures are capitalized.
Minion, Inc., has no debt outstanding and a total market value of $211,875. Earnings before interest and taxes, EBIT, are projected to be $14,300 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 35 percent lower. The company is considering a $33,900 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 7,500 shares outstanding. Assume the company has a tax rate of 21 percent
a-1. Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
a- Calculate the percentage changes in EPS when the economy expands or enters a 2. recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to the nearest whole number, e.g., 32.)
b-1.Calculate earnings per share, EPS, under each of the three economic scenarios after the recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b- Calculate the percentage changes in EPS when the economy expands or enters a 2. recession assuming recapitalization has occurred.
Answer:
Please see attached.
Explanation:
a. Calculate earnings per share EPS under each of the three economic scenarios
a.2 Calculate the percentage changes in earnings per share EPS for economic expansion, or recession.
b-i calculate economic per share EPS, under each of the three economic scenarios after recapitalisation.
b-2 calculate the percentage changes in EPS when the economy enters or expand a recession assuming no recapitalisation occurred.
Please find attached detailed solution to the above questions.
1. Stockholders invest $90,000 cash to start the business.
2. Purchased three digital copy machines for $400,000, paying $118,000 cash and signing a 5-year, 6% note for the remainder.
3. Purchased $5,500 paper supplies on credit.
4. Cash received for photocopy services amounted to $8,400.
5. Paid $500 cash for radio advertising.
6. Paid $800 on account for paper supplies purchased in transaction 3.
7. Dividends of $1,600 were paid to stockholders.
8. Paid $1,200 cash for rent for the current month.
9. Received $2,200 cash advance from a customer for future copying.
10. Billed a customer for $500 for photocopy services completed.
No. Account Titles and Descriptions Debit Credit
1.
2.
3.
4.
5.
Answer:
1. Stockholders invest $90,000 cash to start the business.
Dr Cash 90,000
Cr Common stock 90,000
2. Purchased three digital copy machines for $400,000, paying $118,000 cash and signing a 5-year, 6% note for the remainder.
Dr Copy machines 400,000
Cr Cash 118,000*
Cr Notes payable 282,000
*Where did they get the extra cash from?
3. Purchased $5,500 paper supplies on credit.
Dr Supplies 5,500
Cr Accounts payable 5,500
4. Cash received for photocopy services amounted to $8,400.
Dr Cash 8,400
Cr Service revenue 8,400
5. Paid $500 cash for radio advertising.
Dr Advertising expense 500
Cr Cash 500
6. Paid $800 on account for paper supplies purchased in transaction 3.
Dr Accounts payable 800
Cr Cash 800
7. Dividends of $1,600 were paid to stockholders.
Dr Dividends 1,600
Cr Cash 1,600
8. Paid $1,200 cash for rent for the current month.
Dr Rent expense 1,200
Cr Cash 1,200
9. Received $2,200 cash advance from a customer for future copying.
Dr Cash 2,200
Cr Unearned service revenue 2,200
10. Billed a customer for $500 for photocopy services completed.
Dr Accounts receivable 500
Cr Service revenue 500
When a company is in financial difficulty and cannot fully pay all of its creditors, the first lenders to be paid are the ________. A) stockholders
Answer:
Senior debtholder
Explanation:
In a case when the company is not able to pay the pull amount to its creditors so the first lender is senior debt holder as it became the priority to the company i.e. first the amount is paid to them and the amount i.e. remaining would be paid to others as the senior debtholders are secured as if we compared with the other type of debtholders in terms of collateralized of assets
On May 31, the Cash account of Teasel had a normal balance of $5,700. During May, the account was debited for a total of $12,900 and credited for a total of $12,200. What was the balance in the Cash account at the beginning of May
Answer:
$6,400
Explanation:
Cash Account
Debit :
Beginning Balance $5,700
Receipts $12,900
Totals $18,600
Credit :
Payments $12,200
Ending Balance (Balancing figure) $6,400
Totals $18,600
Producers of snack foods (such as candy bars or potato chips) are most likely to use a(n) _____________ distribution strategy for their products.
Answer:
A.intensive
Explanation:
Products such as chocolate bars and chips fit the classification of non-durable consumer goods, that is, those that are produced for immediate consumption.
Its characteristics involve meeting the needs of the final consumer periodically, generally they are low-cost products that need quick replacement to meet the high demand for these non-durable products.
Therefore, the best strategy for the distribution of non-durable products is the intensive strategy, making it available in different places with easy access to the consumer and with high replacement.
definition of observant in entrepreneur characteristics
Answer:
In Entrepreneur characteristics, observant refers to the ability to quickly notice a certain pattern or unusual situation.
This skill is important because of these two following reasons:
- It helped the entrepreneur notice an existing trend. This trend could represent the things that are currently favored by the consumers in a certain market. Understanding trend will help you creating a product that can fit into that trend.
- It also help the entrepreneur notice the problems that occur internally. For example, being observant will help the entrepreneur notice the negative emotion that the employees experience when facing a certain problem. After noticing this, the entrepreneur could develop some sort of strategy to lift their spirit.
You have a tax basis of ​$ and a useful life of five years and no salvage value. Provide a depreciation schedule ​(dk for k1​5) for ​% declining balance with switchover to straight line. Specify the year to switchover. Determine the depreciation amounts using the ​% declining balance and​ straight-line methods and BV amounts for each year
Answer:
the numbers are missing, so I will use another question as an example:
the asset's cost is $100,000useful life is 5 yearsno salvage value150% declining balancestraight line depreciation = $100,000 / 5 = $20,000
150% declining balance depreciation year 1 = 1.5 x $100,000 x 1/5 = $30,000, since it is higher than straight line we will use declining balance
book value at end of year 1 = $100,000 - $30,000 = $70,000
straight line deprecation = $70,000 / 4 = $17,500
150% declining balance depreciation year 2 = 1.5 x $70,000 x 1/5 = $28,000, since it is higher than straight line we will use declining balance
book value at end of year 2 = $70,000 - $28,000 = $42,000
straight line depreciation = $42,000 / 3 = $14,000, since it is higher than declining balance we will use straight line ⇒ switchover year
150% declining balance depreciation year 3 = 1.5 x $42,000 x 1/5 = $12,600
book value at end of year 3 = $42,000 - $14,000 = $28,000
depreciation year 4 = $14,000 (straight line)
book value at end of year 4 = $28,000 - $14,000 = $14,000
depreciation year 5 = $14,000 (straight line)
book value at end of year 5 = $14,000 - $14,000 = $0
Brazil has a population of about 210 million, with about 150 million over the age of 15. Of these, an estimated 25 percent, or 37.5 million people, are functionally illiterate. The typical literate individual reads only about two nonacademic books per year, which is less than half the number read by the typical literate U.S. or European resident. Answer the following questions solely from the perspective of new growth theory:
Which of the following best explains the implications of Brazil's literacy and reading rates for its growth prospects in light of the key tenets of new growth theory.
A. Since economic growth is driven by international trade in technology and capital, if Brazil opens its borders, its literacy and reading rates will improve as the country experiences economic growth.
B. Since the development of human capital is an important determinant of economic growth, Brazil's literacy and reading rates suggests its potential economic growth rate is lower.
C. Since it has been demonstrated that technological advancement and not human capital is the key determinant of economic growth, Brazil's literacy and reading rates should not affect its potential economic growth rate.
D. Since technologically advanced physical capital is necessary for economic growth, Brazil's literacy and reading rates suggests its economic growth rate will be lower because there are not enough skilled workers to operate sophisticated machinery.
Answer:
B. Since the development of human capital is an important determinant of economic growth, Brazil's literacy and reading rates suggests its potential economic growth rate is lower.
Explanation:
According to the New Growth Theory, it is both human desire and capital the factors that drive economic growth the most.
A literate population that does not read a lot means a lower level of human capital for Brazil, which in turn means that Brazil has a lower potential for economic growth. In order to increase economic growth, the Brazilian government should promote readership among its population.
Jim wants to start his own business and needs $10,000 for working capital. He applies for a business loan at FirstBank. The banker tells Jim that the Bank will make the loan if Jim's father will personally guarantee repayment of the loan. Jim assures the banker that his father will do this. The banker calls Jim's father to confirm that he will guarantee Jim's $10,000 loan. Jim's father says: "Sure thing, I'd do anything for that boy." The bank makes the loan to Jim. Jim's new business is not successful and Jim is unable to repay the loan. Jim has no money. Jim's father has buckets of money. The bank sues Jim's father to recover the unpaid amount of the loan plus interest plus attorneys' fees and costs of collecting the debt.
Which of the following is true?
A. Jim's father can make a strong argument that he is not liable to pay his son's debt because the Bank did not have him sign a written guaranty agreement.
B.The oral agreement to guaranty the loan is not enforceable because it is contrary to public policy.
C.Jim’s father is liable to pay his son’s debt because the Bank partially performed under the loan agreement.
D.If it can be proven in a court of law that Jim's father orally agreed to guarantee the loan, Jim's father will be held liable for the repayment of the loanbecause 'a deal is a deal'.
Answer:
A.
Explanation:
From the different options provided, in this scenario the one that is true is that Jim's father can make a strong argument that he is not liable to pay his son's debt because the Bank did not have him sign a written guaranty agreement. In order for the bank to properly hold Jim and his father to the agreement they needed to create a contract and have Jim's father sign and agree to the contract in person. Since the bank failed to do so, then Jim's father can fight the lawsuit. Agreement over the phone is not proper procedure and would not hold up in court due to the bank not being able to properly verify who the individual on the other side of the phone call truly was or if he was really Jim's Father.
Discuss the types of financial statements and their purpose.
Answer:
They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders' equity. Balance sheets show what a company owns and what it owes at a fixed point in time. Income statements show how much money a company made and spent over a period of time.
Explanation: