The entries to record the declaration and payment of the cash dividend are:
November 1:
Debit Retained Earnings $6,100
Credit Dividends Payable $6,100
December 1:
Debit Dividends Payable $6,100
Credit Dividend Revenue $6,100
December 31:
Debit Dividends Payable $6,100
Credit Cash $6,100
On November 1, Swifty Corporation would record the declaration of the cash dividend by debiting Retained Earnings for $6,100 (6,100 shares x $1 per share) and crediting Dividends Payable for the same amount. This entry shows that the company is reducing its retained earnings to pay dividends to its shareholders.
On December 1, Swifty Corporation would record the stockholders of record by debiting Dividends Payable for $6,100 and crediting Dividend Revenue. This entry shows that the company is transferring the liability of paying the dividends from the company to the shareholders of record.
On December 31, Swifty Corporation would record the payment of the cash dividend by debiting Dividends Payable for $6,100 and crediting Cash for the same amount. This entry shows that the company has fulfilled its obligation to pay the dividend to its shareholders.
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In today's Lean terminology, what are processes associated with non-manufacturing areas of business or administration are referred to as
The answer to the question is that processes associated with non-manufacturing areas of business or administration are referred to as "office processes" or "administrative processes" in Lean terminology.
Lean principles can be applied beyond the manufacturing industry to other areas of a business, including administrative and service processes. These processes can be optimized to eliminate waste, reduce lead times, and improve overall efficiency. Examples of office processes include customer service, accounting, human resources, and procurement. By applying Lean principles to these processes, businesses can improve the quality of their services, reduce costs, and increase customer satisfaction.
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If the number of students graduating universities with bachelor degrees increases, how will this affect the location of a country's production possibilities curve
This is because an increase in the number of skilled workers in the labor force will enable a country to produce more goods and services efficiently, which can shift the production possibilities curve outward.
Production refers to the process of creating goods and services by utilizing resources such as labor, capital, and materials. It involves transforming inputs into outputs through various stages of production, such as design, planning, sourcing, manufacturing, assembly, and distribution. Effective production management requires efficient use of resources to ensure that the output is of high quality and is delivered on time and at a reasonable cost.
Production can take place in various forms, including mass production, batch production, continuous production, and job production. The production process is crucial to the success of a business, as it determines the quantity and quality of goods or services that can be produced, and ultimately sold to customers. Effective production processes can lead to increased productivity, improved product quality, and reduced costs. Businesses that are able to produce goods or services efficiently and effectively can gain a competitive advantage in the marketplace.
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In circumstances under which a person is held liable as a principal even though no actual agency has been created, there is a(n):
In circumstances under which a person is held liable as a principal even though no actual agency has been created, there is a presumed agency.
This means that even though there is no actual agreement between the principal and agent, the principal is still responsible for the actions of the agent because the agent is acting on behalf of the principal. The presumed agency can arise from the actions or words of the principal that create the appearance of an agency relationship to a third party.
The principal is held liable for the agent's actions because the third party reasonably believed that the agent had the authority to act on behalf of the principal. Therefore, the principal is considered to have created a legal relationship with the third party, making them liable as a principal.
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At the beginning of the current period, Marigold Corp. had balances in Accounts Receivable of $218,000 and in Allowance for Doubtful Accounts of $9,700 (credit). During the period, it had net credit sales of $895,000 and collections of $850,250. It wrote off as uncollectible accounts receivable of $6,900. However, a $3,300 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,800 at the end of the period. (Omit cost of goods sold entries.) (a - d) (a) Prepare the entries to record sales and collections during the period. (b) Prepare the entry to record the write-off of uncollectible accounts during the period. (c) Prepare the entries to record the recovery of the uncollectible account during the period. (d) Prepare the entry to record bad debt expense for the period.
(a) Sales: $895,000 Accounts Receivable: $895,000; Collections: $850,250 Accounts Receivable: $850,250 (b) Allowance for Doubtful Accounts: $6,900 Accounts Receivable: $6,900 (c) Accounts Receivable: $3,300 Allowance for Doubtful Accounts: $3,300; (d) Bad Debt Expense: $17,100 Allowance for Doubtful Accounts: $17,100.
(a) The entry to record sales during the period:
Accounts Receivable 895,000
Sales 895,000
The entry to record collections during the period:
Cash 850,250
Accounts Receivable 850,250
(b) The entry to record the write-off of uncollectible accounts during the period:
Allowance for Doubtful Accounts 6,900
Accounts Receivable 6,900
(c) The entry to record the recovery of the uncollectible account during the period:
Accounts Receivable 3,300
Allowance for Doubtful Accounts 3,300
(d) The entry to record bad debt expense for the period:
Bad Debt Expense X
Allowance for Doubtful Accounts X
To calculate the amount of bad debt expense, we need to consider the change in the allowance for doubtful accounts balance. The current balance in the allowance account is $25,800 (credit), and the previous balance was $9,700 (credit). So, the increase in the allowance balance is $16,100. Therefore, the bad debt expense for the period is $16,100. The entry to record the bad debt expense is:
Bad Debt Expense 16,100
Allowance for Doubtful Accounts 16,100
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A parent company transfers inventory to its 80% owned subsidiary. How much of the intra-entity gross profit in the transferred ending inventory serves to reduce the consolidated net income attributable to the noncontrolling interest
The amount of the intra-entity gross profit in the transferred ending inventory that serves to reduce the consolidated net income attributable to the noncontrolling interest depends on the transfer price, ownership percentage, and accounting method used for consolidation.
First, we need to consider how the transfer was made. If the transfer was made at cost, then there would be no intra-entity gross profit generated. If the transfer was made at a price above cost, then the gross profit would be calculated as the selling price minus the cost of goods sold. Next, we need to consider the ownership percentage of the subsidiary
In this case, the parent company owns 80% of the subsidiary, which means that the noncontrolling interest owns the remaining 20%. Therefore, the portion of the gross profit that belongs to the noncontrolling interest would be 20%. Finally, we need to consider the accounting method used for consolidation. If the equity method is used, then the noncontrolling interest's share of the intra-entity gross profit would be recognized in the consolidated net income. If the cost method is used, then the intra-entity gross profit would not be recognized in the consolidated net income.
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Disability insurance provides an income stream for an individual who is unable to continue working due to accident or illness. However, if a person is under ______ disabled, he/she does not qualify for benefits.
Disability insurance provides an income stream for an individual who is unable to continue working due to accident or illness. However, if a person is under partial disabled, he/she does not qualify for benefits.
Partial disability refers to a situation where an individual is still able to work but may be limited in their ability to perform certain tasks or may need to work reduced hours.
Disability insurance policies typically have strict definitions and criteria for determining when a person is considered totally disabled and eligible for benefits.
The definition of total disability may vary depending on the policy and the insurance provider, but it generally means that the person is unable to perform the substantial and material duties of their regular occupation due to an accident or illness.
It's important to note that the specific criteria for qualifying for disability insurance benefits can vary significantly depending on the policy and insurance provider.
The exact criteria for determining disability and eligibility for benefits can vary depending on the policy and insurance provider, so it's important to carefully review the terms and conditions of any disability insurance policy.
In summary, if a person is under partial disability, he or she may not qualify for disability insurance benefits.
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Lowell Riverhawk Corporation has a total debt to assets ratio of 62.5 percent. Its net income last year was $25,000. If the total debt was $200,000, what was the return on equity (ROE)
The return on equity (ROE) for Lowell Riverhawk Corporation was 20.83% when a total debt to assets ratio of 62.5 percent. Its net income last year was $25,000. If the total debt was $200,000.
To calculate the return on equity (ROE), we need to first find the total equity of the Lowell Riverhawk Corporation. We can do this by subtracting the total debt from the total assets:
Total Assets = Total Debt / (Total Debt / Total Assets Ratio)
Total Assets = $200,000 / (62.5%)
Total Assets = $320,000
Total Equity = Total Assets - Total Debt
Total Equity = $320,000 - $200,000
Total Equity = $120,000
Now that we have the total equity, we can calculate the ROE by dividing the net income by the total equity:
ROE = Net Income / Total Equity
ROE = $25,000 / $120,000
ROE = 0.2083 or 20.83%
Therefore, the return on equity (ROE) for Lowell Riverhawk Corporation was 20.83%.
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A cell phone company has a program that encourages consumers to turn in their old cell phones rather than throw them away when they are finished with them. This is an example of:
The program implemented by the cell phone company is an example of a sustainability initiative.
Sustainability refers to the ability to maintain or preserve resources for the future by balancing economic, social, and environmental aspects. The program is designed to reduce electronic waste that can harm the environment and cause health hazards.
Electronic waste contains toxic materials such as lead, mercury, and cadmium that can contaminate soil and water resources. By encouraging consumers to turn in their old cell phones, the company is promoting responsible consumption and reducing the environmental impact of electronic waste.
Moreover, the program also supports the circular economy model, which aims to reduce waste by keeping resources in use for as long as possible. The program promotes the reuse of old cell phones, which reduces the need for the production of new cell phones and the consumption of resources.
The circular economy model promotes the concept of "reduce, reuse, and recycle," and the program implemented by the cell phone company aligns with this concept.
In conclusion, the program implemented by the cell phone company is an excellent example of a sustainability initiative that promotes responsible consumption and supports the circular economy model. By turning in their old cell phones, consumers are contributing to reducing electronic waste and preserving resources for the future.
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One advantage of using the Blank______ channel over the Blank______ channel is the much higher probability of having a deeper assortment of merchandise available.
Advertising agencies 44. The most common element in advertising is 45. If KSL-TV charges $5000 for a 30 second ad that reaches 500000 people results in a CPM of
The CPM for this advertising campaign would be $10.
The most common element in advertising is the message or content that is intended to persuade or inform the target audience about a product, service, or idea.
The CPM (cost per thousand) for the given scenario would be calculated as follows:
CPM = (Advertising Cost / Total Number of Impressions) x 1000
In this case, the advertising cost is $5000 and the total number of impressions is 500,000. Plugging these values into the formula, we get:
CPM = ($5000 / 500,000) x 1000
CPM = $10
Therefore, the CPM for this advertising campaign would be $10.
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Explaining What were the factors that contributed to the shift from a barter economy to a money economy in the High Middle Ages
The shift from a barter economy to a money economy in the High Middle Ages was influenced by several factors.
Firstly, as trade routes expanded, the need for a standardized medium of exchange grew. Barter economies relied on the double coincidence of wants, which meant that both parties had to have something the other wanted in order to make a trade. This made trade difficult and time-consuming. Secondly, the growth of cities and towns increased the demand for goods and services, which in turn increased the need for a more efficient system of exchange. Thirdly, the emergence of banking and credit systems allowed for greater flexibility in transactions and the ability to conduct business across long distances. Finally, the adoption of coinage by rulers and governments helped to stabilize and standardize the economy. In short, the shift from a barter economy to a money economy was driven by the need for greater efficiency and convenience in trade and commerce.
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Home Depot segments its campaigns to the Hispanic market; it creates different ads for second- or third-generation Hispanic-Americans, also known as _______________ Hispanics.
Home Depot segments its campaigns to the Hispanic market; it creates different ads for second- or third-generation Hispanic-Americans, also known as acculturated Hispanics.
Acculturation is the process of integrating two cultures while adapting to the dominant culture of the society. It involves social, psychological, and cultural transformation. Acculturation is the process by which a person adopts, acquires, and adapts to a new cultural environment as a result of being raised in a new culture or when a person is exposed to a different culture.
People from other cultures attempt to assimilate into the new, more dominant culture by engaging in components of it, such as their customs, while clinging to their original cultural values and traditions.Both individuals who are integrating into the culture and those who are devoted to it might experience the consequences of acculturation on a variety of levels.
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A principal of $3900 is invested at 3% interest, compounded annually. How much will the investment be worth after 6 years
The investment will be worth approximately $4,677.56 after 6 years.
To solve this problem, we can use the formula for compound interest:
A =[tex]P(1 + r/n)^(nt)[/tex]
Where:
A = the amount of money in the account after a certain number of years
P = the principal (initial amount of money)
r = the annual interest rate (as a decimal)
n = the number of times per year the interest is compounded
t = the number of years
Plugging in the given values, we get:
A =[tex]3900(1 + 0.03/1)^(1*6)[/tex]
A = [tex]3900(1.03)^6[/tex]
A = 4677.56.
The allowance for uncollectible accounts is a contra account that is used to offset accounts receivable on the balance sheet, and it represents the estimated amount of accounts receivable that are unlikely to be collected. When an account is deemed uncollectible, it is written off by reducing accounts receivable and the allowance for uncollectible accounts.
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On August 1, Savage Company purchased $1,800 of inventory on account with credit terms of 3/10, net 30. Savage Company uses the perpetual inventory system. On August 15, Savage Company paid the amount due. What journal entry did they prepare on August 15
The journal entry that Savage Company prepared on August 15 would be to record the payment of the amount due on the inventory purchased on account. The entry would include a credit to Accounts Payable for $1,800, which is the amount owed to the supplier.
On August 15, Savage Company prepared the following journal entry for the payment of the purchased inventory, taking into account the credit terms of 3/10, net 30:
1. Accounts Payable (Debit) - $1,746
2. Inventory (Credit) - $54
3. Cash (Credit) - $1,692
Here's a brief explanation of the journal entry:
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A company's old machine that cost $55,000 and had accumulated depreciation of $43,500 was traded in on a new machine having an estimated 20-year life with an invoice price of $66,500. The company also paid $56,500 cash, along with its old machine to acquire the new machine. If this transaction has commercial substance, the new machine should be recorded at:
The new machine should be recorded at $79,000, which is the cost of the new machine plus the gain on the trade-in: The cost of the new machine should be recorded at $79,000.
To calculate this, we need to determine the book value of the old machine, which is the original cost minus the accumulated depreciation:
Book value of old machine = Cost - Accumulated depreciation
Book value of old machine = $55,000 - $43,500
Book value of old machine = $11,500
The cash paid and the book value of the old machine traded-in amounts to:
Cash paid + Book value of old machine = $56,500 + $11,500 = $68,000
Since the transaction has commercial substance, the company should recognize a gain or loss on the trade-in. To calculate the gain or loss, we need to compare the book value of the old machine with the fair value of the new machine. If the fair value is greater than the book value, there is a gain. If the fair value is less than the book value, there is a loss.
Fair value of new machine = Cash paid + Book value of old machine
Fair value of new machine = $56,500 + $11,500
Fair value of new machine = $68,000
Since the invoice price of the new machine is $66,500, which is less than the fair value of the new machine, there is a gain on the trade-in. The gain is calculated as:
Gain on trade-in = Fair value of new machine - Book value of old machine
Gain on trade-in = $68,000 - $11,500
Gain on trade-in = $56,500
The cost of the new machine is the fair value minus the gain:
Cost of new machine = Fair value of new machine - Gain on trade-in
Cost of new machine = $68,000 - $56,500
Cost of new machine = $11,500
New machine cost = Cost of new machine + Gain on trade-in
New machine cost = $66,500 + $12,500
New machine cost = $79,000
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MM Model with Zero Taxes An unlevered firm has a value of $575 million. An otherwise identical but levered firm has $125 million in debt. Under the MM zero-tax model, what is the value of the levered firm
Under the MM zero-tax model, the value of the levered firm would still be $575 million. This is because the zero-tax model assumes that there are no taxes, and therefore the tax shield from the interest paid on the debt is not a factor in determining the value of the firm.
The MM model with zero taxes states that the value of a firm is independent of its capital structure, and therefore the addition of debt does not increase the value of the firm. In this scenario, the unleveled firm and the levered firm are assumed to be identical in every way except for the fact that the levered firm has $125 million in debt.
Since the value of the unleveled firm is $575 million, the value of the levered firm would also be $575 million. The presence of debt does not impact the value of the firm in the MM zero-tax model, and therefore the value of the levered firm is equal to the value of the unlevered firm.
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Explain what an aptitude inventory, education plan, and internships are and how they would affect what career you choose to work in.
An aptitude inventory, education plan, and internships can greatly influence career choices by identifying strengths, outlining steps to achieve goals, and providing practical experience.
How aptitude inventories, education plans, and internships work together to influence career choices?An aptitude inventory is a series of tests that assess an individual's natural abilities and potential to perform well in specific types of tasks or professions. The results of an aptitude inventory can help a person identify their strengths and weaknesses and determine which career fields may be the best fit for their skills and interests.
An education plan is a roadmap that outlines the steps a person needs to take to achieve their career goals. This plan may include information on the courses, degrees, certifications, and training programs required to pursue a particular career path.
Internships are short-term work experiences that allow students or recent graduates to gain practical, hands-on experience in a particular field.
Internships can help individuals develop the skills and knowledge necessary to succeed in a specific career and can also provide networking opportunities and connections with potential employers.
Together, an aptitude inventory, education plan, and internships can greatly influence the career choices of an individual. By taking an aptitude inventory, an individual can identify their strengths and natural abilities, which can help them determine which careers are the best fit for them.
An education plan can help an individual understand the educational requirements for different careers, which can inform their decisions about the types of degrees or training programs they need to pursue.
Finally, internships can provide individuals with real-world experience in a particular field, which can help them gain valuable skills and make informed decisions about their career paths. Overall, these tools can help individuals make more informed decisions about their careers and increase their chances of success in their chosen fields.
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The following information relates to the Joshua, Inc: Depreciation expense $ 500 Increase in salaries payable 50 Purchased operating equipment 700 Net income 3,000 Paid long term note payable 600 Paid dividends 900 Increase in accounts receivable 400 What is the net cash provided by operating activities
The net cash provided by operating activities for Joshua, Inc can be calculated by using the indirect method of the cash flow statement. The net cash provided by operating activities for Joshua, Inc is $2,450.
First, we need to add back the depreciation expense of $500 to the net income of $3,000. This gives us a total of $3,500. Next, we need to adjust for the changes in working capital accounts. The increase in salaries payable of $50 is added, as it represents an expense that has not yet been paid. The increase in accounts receivable of $400 is subtracted, as it represents a decrease in cash flow. Finally, the increase in operating equipment of $700 is also subtracted, as it represents a cash outflow. The payment of the long term note payable of $600 and payment of dividends of $900 are not included in the calculation of net cash provided by operating activities, as they are considered financing and investing activities, respectively.
Therefore, the net cash provided by operating activities for Joshua, Inc is:
Net income + Depreciation expense = $3,000 + $500 = $3,500
Adjustments for changes in working capital:
+ Increase in salaries payable = $50
- Increase in accounts receivable = $400
- Increase in operating equipment = $700
Net cash provided by operating activities = $3,500 + $50 - $400 - $700 = $2,450
Thus, the net cash provided by operating activities for Joshua, Inc is $2,450.
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______ is/are the total amount of money received (or promised) from the sale of goods or services, as well as from other business activities such as the rental of property and investments. Multiple choice question. Cost of goods sold Net income Revenue Earnings
Revenue is the total amount of money received (or promised) from the sale of goods or services, as well as from other business activities such as the rental of property and investments. It is an important metric for businesses as it reflects the amount of money they have earned over a given period of time.
Cost of goods sold refers to the direct costs associated with producing and selling a product, while net income is the amount of money a company has earned after subtracting all expenses from its revenue. Earnings can refer to either net income or profits, depending on the context.
In conclusion, revenue is a crucial metric for businesses as it reflects the total amount of money earned from sales and other business activities, and is an important factor in determining a company's financial performance.
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The tax rules that provide for the deferral of realized gains or losses when contributing property to partnerships allow entrepreneurs to organize their businesses without having to pay taxes. True false question. True False
The statement that tax rules that provide for the deferral of realized gains or losses when contributing property to partnerships allow entrepreneurs to organize their businesses without having to pay taxes is true.
The tax rules allow entrepreneurs to contribute property to partnerships without having to immediately pay taxes on the realized gains or losses. This is known as a deferral of tax liability. This provision is intended to encourage business formation and growth by allowing entrepreneurs to reinvest their gains into the business rather than using them to pay taxes.
Under this provision, when an entrepreneur contributes property to a partnership, they do not recognize any gain or loss on the contribution. Instead, their basis in the partnership interest is equal to the basis in the contributed property. When the partnership sells the property, any gains or losses are allocated to the partners based on their respective ownership interests in the partnership. At that point, the partners would recognize the gain or loss on their individual tax returns.
Overall, this provision provides entrepreneurs with a valuable tool for organizing and growing their businesses. It allows them to defer taxes until they are able to realize the gains, rather than having to pay taxes immediately upon contribution.
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How much money will Allen have at the end of 5 years if he saves by withdrawing $200 from his checking account every month and adding it to a piggy bank
Assuming Allen saves $200 every month for 5 years, he will have saved a total of $12,000. However, this does not take into account any interest that may accumulate over the 5-year period. If Allen chooses to keep his savings in a piggy bank, he will not earn any interest on his savings.
However, if he opens a savings account and deposits his monthly savings into it, he can earn interest on his savings.
The amount of interest earned will depend on the interest rate of the savings account. For example, if the savings account has an interest rate of 1%, Allen will earn approximately $609 in interest over the 5-year period, bringing his total savings to approximately $12,609. It's important to note that there may be fees associated with maintaining a savings account, so it's important to research and compare different account options before making a decision. If Allen saves by withdrawing $200 from his checking account every month and adds it to a piggy bank, he will have saved $12,000 after 5 years.
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using the FIFO method of process costing. (Problem 18-35 explores additional facets of this problem.)
Using the FIFO method of process costing means that the costs associated with the first units to be completed in the production process are allocated to the first units sold. This method assumes that the earliest units in production are the first to be sold, which may not always be the case in practice.
FIFO method of process costing is used to calculate the cost of goods sold (COGS) for a specific period. The method requires that the total costs of the beginning inventory (units started but not finished from the previous period) be added to the total costs incurred during the current period. This total cost is then divided by the total number of units produced during the period to determine the cost per unit. The cost per unit is then multiplied by the number of units sold during the period to determine the COGS.
Overall, using the FIFO method of process costing provides a relatively straightforward way to determine the cost of goods sold for a specific period, although it may not always reflect the actual production and sales processes in practice.
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You are auditing general cash for the Pittsburgh Supply Company for the fiscal year ended July 31, 2016. The client has not prepared the July 31 bank reconciliation. After a brief discussion with the owner, you agree to prepare the reconciliation, with assistance from one of Pittsburgh Supply’s clerks. You obtain the following information:
General ledger Bank Statement
Beginning balance 7/1/16 $ 6,400 $ 8,378
Deposits 25,474
Cash receipts journal 26,874
Checks cleared (25,307)
Cash disbursements journal (23,171)
July bank service charge (107)
Note paid directly (6,400)
NSF check (516)
Ending balance 7/31/16 $ 10,103 $ 1,522
June 30 Bank reconciliation
Information in General ledger and Bank Statement
Balance per bank $8,378
Deposits in transit 600
Outstanding checks 2,578
Balance per books $6,400
Additional information obtained is as follows:
1. Checks clearing that were outstanding on June 30 totaled $2,411.
2. Checks clearing that were recorded in the July disbursements journal totaled $21,120.
3. A check for $1,130 cleared the bank but had not been recorded in the cash disbursements journal. It was for an acquisition of inventory. Pittsburgh Supply uses the periodic-inventory method.
4. A check for $646 was charged to Pittsburgh Supply but had been written on a different company’s bank account.
5. Deposits included $600 from June and $24,874 for July.
6. The bank charged Pittsburgh Supply’s account for a nonsufficient funds check totaling $516. The credit manager concluded that the customer intentionally closed its account and the owner left the city. The check was turned over to a collection agency.
7. A note for $6,000, plus interest, was paid directly to the bank under an agreement signed four months ago. The note payable was recorded at $6,000 on Pittsburgh Supply’s books.
a. Prepare a bank reconciliation that shows both the unadjusted and adjusted balance per books.
b. Prepare all adjusting entries.
c. What audit procedures would you use to verify each item in the bank reconciliation?
d. What is the cash balance that should appear on the July 31, 2016, financial statements?
The cash balance that should appear on the July 31, 2016, financial statements is $2,819.
a. Bank reconciliation: Unadjusted Balance per Bank: $1,522Add: Deposit in transit (June) - $600Add: Deposit in transit (July) - $24,874Less: Outstanding checks (June) - $2,411Less: Outstanding checks (July) - $21,120Less: Incorrectly charged check - $646Adjusted Balance per Bank: $2,819Unadjusted Balance per Books: $10,103
Less: Bank service charge - $107Less: Note paid directly (Principal + Interest) - $6,400Add: Unrecorded inventory acquisition check - $1,130Less: NSF check - $516Adjusted Balance per Books: $2,819
b. Adjusting entries:
1. Dr. Bank service charge expense $107, Cr. Cash $107
2. Dr. Notes payable $6,000, Dr. Interest expense $400, Cr. Cash $6,400
3. Dr. Inventory $1,130, Cr. Cash $1,130
4. Dr. Cash $646, Cr. Accounts payable (Other company) $646
5. Dr. Accounts receivable $516, Cr. Cash $516, Cr. Collection agency fees (if any)
c. Audit procedures for bank reconciliation:
1. Confirm outstanding checks with the bank.
2. Confirm deposits in transit with the bank and review supporting documentation.
3. Review the bank statement for any unusual or unexpected charges.
4. Verify bank service charges and note payments.
5. Review cash receipts and disbursements journals for accuracy.
6. Confirm the NSF check and related collection activities with the collection agency.
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Even if the Gross National Product (GNP) index is used to measure the well-being of a country, it will fail to show ________
Even if the Gross National Product (GNP) index is used to measure the well-being of a country, it will fail to show the distribution of wealth, income inequality, and non-monetary factors such as happiness, social cohesion, and environmental sustainability.
GNP only measures the total value of goods and services produced by a country, without taking into account the quality of life of its citizens. Therefore, it is important to use other indicators such as the Human Development Index (HDI) or the Genuine Progress Indicator (GPI) to get a more comprehensive picture of a country's well-being.
Even if the Gross National Product (GNP) index is used to measure the well-being of a country, it will fail to show the distribution of wealth, income inequality, and non-market activities such as unpaid work and volunteer efforts. These factors can greatly impact the overall well-being of a country's citizens, but are not directly reflected in the GNP index.
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Novak Company earns 12% on an investment that will return $460,000 eleven years from now. What is the amount Novak Company should invest now to earn this rate of return
Novak Company should invest $151,472.66 now to earn a 12% rate of return and receive $460,000 in eleven years.
We need to use the present value formula, which calculates the current value of a future sum of money based on a given interest rate and time period.
The formula is: Present value = Future value / (1 + interest rate) ^ time
In this case, the future value is $460,000, the interest rate is 12%, and the time period is 11 years.
So, plugging in these values, we get:
Present value = 460,000 / (1 + 0.12) ^ 11
Using a calculator, we can simplify this to:
Present value = 460,000 / 3.0375
Present value = $151,472.66
Therefore, Novak Company should invest $151,472.66 now to earn a 12% rate of return and receive $460,000 in eleven years.
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SunEnergy produces solar panels. A key step in the conversion of raw silicon to a completed solar panel occurs in the assembly department, where lightweight photovoltaic cells are assembled into modules and connected on a frame. In this department, materials are added at the beginning of the process and conversion takes place uniformly. At the start of November 2020, SunEnergy's assembly department had 3,400 panels in beginning work in process, which were 100% complete for materials and 70% complete for conversion costs. An additional 12,000 units were started in the department in November, and 3,600 units remain in work in process at the end of the month.
Sun Energy's assembly department produced a total of 11,800 solar panels in November 2020.
Sun Energy's assembly department plays a crucial role in the production of solar panels by assembling lightweight photovoltaic cells into modules and connecting them on a frame. One of the key steps in this process is the conversion of raw silicon into completed solar panels, which takes place uniformly in the department. At the start of November 2020, the department had 3,400 panels in beginning work in process, which were 100% complete for materials and 70% complete for conversion costs. This means that the department had already added all the necessary materials to the panels but had not completed all the conversion costs. The conversion costs include labor, energy, and other expenses incurred during the production process.During November, the department started an additional 12,000 units, which means that they added materials and started the conversion process on these panels. At the end of the month, there were 3,600 units remaining in work in process. It is unclear what the completion status of these panels is, but it can be assumed that they are partially complete in terms of materials and conversion costs.
Overall, it is clear that SunEnergy's assembly department is actively working on the production of solar panels and has a significant amount of work in process. By keeping track of the completion status of materials and conversion costs, the department can ensure that they are making progress towards completing these panels and delivering them to customers.
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After making a downpayment of $3,500 for a new car, Murphy paid $550 per month for 3 years with interest charged at 7.25% per year compounded monthly on the unpaid balance. What was the original cost of the car
After making a downpayment of $3,500 for a new car, Murphy paid $550 per month for 3 years with interest charged at 7.25% per year compounded monthly on the unpaid balance. The original cost of the car was $21,045.16
To find the original cost of the car, we'll use the loan payment formula:
P = (r * PV) / (1 - (1 + r)^(-n)). Where: P = monthly payment ($550), r = monthly interest rate (7.25% / 12 months = 0.0725 / 12 = 0.00604167), PV = present value of the loan (original cost of the car - downpayment), n = number of payments (3 years * 12 months = 36).
Rearrange the formula to find PV:
PV = (P * (1 - (1 + r)^(-n))) / r
Now, plug in the given values:
PV = (550 * (1 - (1 + 0.00604167)^(-36))) / 0.00604167
PV ≈ 17,545.16
Finally, add the downpayment to the present value of the loan to find the original cost of the car:
Original cost = PV + downpayment = 17,545.16 + 3,500 = $21,045.16
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musica production company and nora enter into a contract for nora to write six songs for which musica agrees to pay her. Nora transfers her right to payment under the contract to omni enterainment angency. Nora is
Nora's decision to transfer her right to payment under the contract to Omni Entertainment Agency is a common practice in the music industry. It allows for the efficient management of song royalties and licensing, and does not affect the original terms of the contract between Nora and Musica Production Company.
When Nora entered into a contract with Musica Production Company to write six songs for them, a legally binding agreement was created. In this agreement, Musica agreed to pay Nora for her services. However, Nora had the option to transfer her right to payment to another party, which in this case was Omni Entertainment Agency. By doing so, Nora effectively assigned her right to receive payment under the contract to Omni Entertainment Agency. This is a common practice in the music industry where songwriters or performers may choose to assign their rights to receive payment to a music publishing company or agency.
The music publisher or agency will then handle the licensing and distribution of the songs and collect the royalties owed to the songwriter or performer. It is important to note that the transfer of rights to receive payment does not affect the terms of the original contract between Nora and Musica. Musica is still obligated to pay for the six songs that Nora has agreed to write. However, the payment will now be made to Omni Entertainment Agency, and Nora will receive her compensation through them.
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The disposition of a plant asset is reported on the statement of cash flows as a financing activity.
a) true
b) false
The disposition of a plant asset is reported on the statement of cash flows as a financing activity is (b) false.
When a business sells a plant asset, it often receives cash, which is recorded as an investing activity rather than a financing transaction in the statement of cash flows. Transactions pertaining to the purchase and sale of long-term assets, such as property, plant, and equipment, are included in the investing portion of the statement of cash flows.
The company's financing activities, on the other hand, usually comprise acts involving its long-term liabilities and equity. Examples of these actions include the issuance or repayment of bonds or stock, the payment of dividends, and the repayment of long-term debt.
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A Qualified Health Plan meets the minimum value requirement if it is designed to pay at least ______% of the total costs for covered benefits.
Qualified Health Plan meets the minimum value requirement if it is designed to pay at least 60% of the total costs for covered benefits.
This means that the plan must cover at least 60% of the average expected costs of essential health benefits for a standard population. The remaining 40% can be paid by the enrollee through deductibles, coinsurance, or copayments. It's important to note that some states may have higher minimum value requirements, so it's important to check the specific requirements in your state.
A Qualified Health Plan (QHP) meets the minimum value requirement if it is designed to pay at least 60% of the total costs for covered benefits. This percentage is also known as the actuarial value, and it represents the share of healthcare expenses the plan covers for a standard population.
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