Answer:
(a) Dec 31
Debit Interest Expense $500
Credit Interest Payable$500
(b) Dec 31
Debit Account Receivable $2,000
Credit Service Revenue $2,000
(c) Dec 31
Debit Salaries & wages expense $540
Credit Salaries & wages payable $540
Explanation:
Preparation of the accrued adjusting entries at December 31
(a) Dec 31
Debit Interest Expense $500
Credit Interest Payable$500
(b) Dec 31
Debit Account Receivable $2,000
Credit Service Revenue $2,000
(c) Dec 31
Debit Salaries & wages expense $540
Credit Salaries & wages payable $540
Cost of Goods Manufactured and Sold
Direct labor cost $495,900
Purchases of direct materials 378,890
Freight-in on materials 7,500
Factory supplies used 18,500
Factory Utilities 54,000
Commissions paid 78,983
Factory supervision and indirect labor 165,000
Advertising 145,600
Materials handling 16,900
Work-in-process inventory, January 1 201,000
Work-in-process inventory, December 31 117,400
Direct materials inventory, January 1 37,200
Direct materials inventory, December 31 34,600
Finished goods inventory, January 1 59,200
Finished goods inventory, December 31 62,700
Anglin Company, a manufacturing firm, has supplied the following information from its accounting records for the last calendar year:
1. Prepare a cost of goods manufactured statement.
2. Prepare a cost of goods sold statement.
Answer:
Schedule for manufacturing cost
Beginning raw material 37200
Add Purchase of raw material 378890
Add Freight in on materials 7500
Total 423590
Less Ending Raw material 34600
Raw material used in production 388990
Add Direct labor 495900
Manufacturing overheads
Factory supplies 18500
Factory utilities 54000
Factory supervision and indirect labor 165000
Material handling 16900
Add Total overhead cost 254400
Total manufacturing cost 1139290
Cost of goods sold statement
Total manufacturing cost 1139290
Add Beginning work in progress 201000
1340290
Less Ending work in progress 117400
Cost of goods manufactured 1222890
Add Beginning finished goods inventory 59200
Cost of goods available for sale 1282090
Less Ending finished goods inventory 62700
Cost of goods sold 1219390
Henry Carr and Noreen Mason formed a partnership, dividing income as follows: annual salary allowance to Carr of $42,000; interest of 7% on each partner's capital balance on January 1; any remaining net income is divided equally. Carr and Mason had $63,000 and $147,000 in their January 1 capital balances, respectively. Net income for the year was $442,000. How much net income should be distributed to Carr
Answer:
$239,060
Explanation:
The computation of the net income distributed to Carr as follows;
Particulars Carr Mason net income distributed Non-allocated
Net income $442,000
Salary
allowance $42,000 $42,000 $400,000
Interest
on capital $4,410 $10,290 $14,700 $385,300
left amount $192,650 $192,650 $385,300 $0
Net income $239,060
The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled steel was $1.8 million for the first 4 years. An effective energy conservation program resulted in a reduced cost of $1.77 million in year 5, and $1.74 million in year 6, and amounts decreasing by $30,000 each year through year 10. What is the present worth of the pumping costs in year 0 at an interest rate of 12% per year?
Answer:
$9,923,100
Explanation:
The computation of the present worth is as follows:
Year Annual cost PV factor at 12% Present value
1 $1,800,000 0.893 $1.607,400
2 $1,800,000 0.797 $1,434,600
3 $1,800,000 0.712 $1,281,600
4 $1,800,000 0.636 $1,144,800
5 $1,770,000 0.567 $1,003,590
6 $1,740,000 0.507 $882,180
7 $1,710,000 0.452 $772,920
8 $1,680,000 0.404 $678,720
9 $1,650,000 0.361 $595,650
10 $1,620,000 0.322 $521,640
Present worth $9,923,100
Waterway Industries provided the following information on selected transactions during 2021: Dividends paid to preferred stockholders $ 510000 Loans made to affiliated corporations 1400000 Proceeds from issuing bonds 1550000 Proceeds from issuing preferred stock 2090000 Proceeds from sale of equipment 795000 Purchases of inventories 2350000 Purchase of land by issuing bonds 590000 Purchases of treasury stock 1180000 The net cash provided (used) by financing activities during 2021 is
Answer:
Net cash provided by financing activities $1,195,000
Explanation:
The computation of the net cash provided by financing activities are as follows:
Cash flows from financing activities
Issue bonds $2,090,000
Issue preferred stock $795,000
Less: Purchase of treasury stock -$1,180,000
Less: Dividend paid to preferred stockholders -$510,000
Net cash provided by financing activities $1,195,000
a. A ______ of accounts is a list of all accounts a company uses, not including account balances. b. The ______ is a record containing all accounts used by a company, including account balances. c. A(n) ______ describes transcations entering an accounting system, such as a purchase order. d. Increases and decreases in a specific asset, liability,
Answer:
a. A general ledger of accounts is a list of all accounts a company uses, not including account balances.
b. The Chart of accounts is a record containing all accounts used by a company, including account balances.
c. A source document describes transactions entering an accounting system, such as a purchase order.
d. An account contains a record of decreases and increases in a specific revenue, expense, asset, liability, or equity
As a long-term investment at the beginning of the 2018 fiscal year, Florists International purchased 25% of Nursery Supplies Inc.'s 16 million shares for $68 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $52 million and distributed cash dividends of $.75 per share. At the end of the year, the fair value of the shares is $64 million.Required: Prepare the appropriate journal entries from the purchase through the end of the year.
Answer:
1. Dr Investment in Nursery supplies common share $68 million
Cr Cash $68 million
2. Dr Investment in Nursery supplies common share $13 million
Cr Investment Revenue $13 million
3.Dr Cash $3 million
Cr Investment in Nursery supplies common share $3 million
4. No Journal entry
Explanation:
Preparation of the appropriate journal entries from the purchase through the end of the year.
1. Dr Investment in Nursery supplies common share $68 million
Cr Cash $68 million
2. Dr Investment in Nursery supplies common share $13 million
Cr Investment Revenue $13 million
(25%*$52 million )
3.Dr Cash $3 million
Cr Investment in Nursery supplies common share $3 million
(16 million shares *25%*$.75 per share)
4. No Journal entry is required to record the change in fair value
Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2017.
Feb. 3 Collected accounts receivable of $15,000.
7 Purchased equipment for $23,000 cash.
11 Paid $3,000 for a 1-year insurance policy.
14 Paid accounts payable of $12,000.
18 Declared cash dividends, $4,000.
Additional information: As of February 1, 2017, current assets were $120,000 and current liabilities were $40,000.
Compute the current ratio as of the beginning of the month and after each transaction. (Round all answers to 2 decimal places, e.g. 1.83 :
Current ratio as of February 1, 2014 :1
Feb. 3 :1
Feb. 7 :1
Feb. 11 :1
Feb. 14 :1
Feb. 18 :1
Answer:
Gwynn Incorporated
Current Ratio After Each Transaction:
Feb. 1, 2017: Current Ratio = 3:1
Feb. 3, 2017: Current Ratio = 3:1
Feb. 7, 2017: Current Ratio = 2.43:1
Feb. 11, 2017: Current Ratio = 2.35:1
Feb. 14, 2017: Current Ratio = 2.93:1
Feb. 18, 2017: Current Ratio = 2.56
Explanation:
a) Data and Calculations:
February 1, 2017:
Current Assets = $120,000
Current Liabilities = $40,000
February 1, 2017: Current Ratio = $120,000/$40,000 = 3:1
Transactions:
Feb. 3 Collected accounts receivable of $15,000.
Current Assets = $120,000 (+$15,000 - $15,000)
Current Liabilities = $40,000
Current ratio = $120,000/$40,000 = 3:1
7 Purchased equipment for $23,000 cash.
Current Assets =$97,000 ($120,000 - $23,000)
Current Liabilities = $40,000
Current ratio = $97,000/$40,000 = 2.43:1
11 Paid $3,000 for a 1-year insurance policy.
Current Assets =$94,000 ($97,000 - $3,000)
Current Liabilities = $40,000
Current ratio = $94,000/$40,000 = 2.35:1
14 Paid accounts payable of $12,000.
Current Assets =$82,000 ($94,000 - $12,000)
Current Liabilities = $28,000 ($40,000 - $12,000)
Current ratio = $82,000/$28,000 = 2.93:1
18 Declared cash dividends, $4,000.
Current Assets =$82,000
Current Liabilities = $32,000 ($28,000 + $4,000)
Current ratio = $82,000/$32,000 = 2.56
b) The current ratio is one of the working capital ratios that show the relationship between current assets and current liabilities. It is computed as Current Assets divided by Current Liabilities.
Every day, Josephine buys coffee and lottery tickets. She has a budget of $12. The coffee at the bodega she goes to costs $0.75 and lottery tickets are $1.50 each. Which equation represents Josephine's budget constraint?
Answer:
12= 0.75x +1.5y
Explanation:
Josephine's budget constraint is represented by 0.75 + 1.5x ≤ 12 and thus Josephine can buy 7 lottery tickets.
What is inequality?A difference between two values indicates whether one is smaller, larger, or basically not similar to the other.
A mathematical phrase in which the sides are not equal is referred to as being unequal. In essence, a comparison of any two values reveals whether one is less than, larger than, or equal to the value on the opposite side of the equation.
Let's say the number of lottery tickets that Josephine can buy = x
Then,
1.5x = the Total amount of money for a lottery ticket.
Now,
Coffee cost + Lottery cost ≤ Budget
0.75 + 1.5x ≤ 12
1.5x ≤ 11.75
x ≤ 7.5 so Josephine can buy only 7 tickets.
Hence "Josephine's budget constraint is represented by 0.75 + 1.5x ≤ 12".
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The following information is for Punta Company for July: Factory overhead costs were applied to jobs at the predetermined rate of $51.50 per labor hour. Job S incurred 6,265 labor hours; Job T used 4,365 labor hours. Job S was shipped to customers during July. Job T was still in process at the end of July. The overapplied or underapplied overhead to the Cost of Goods Sold account was closed at the end of July. Factory utilities, factory depreciation, and factory insurance incurred are summarized as follows: Utilities $ 16,950 Depreciation 49,500 Insurance 19,800 Total $ 86,250 f. Direct materials and indirect materials used are as follows: Job S Job T Total Material A $ 33,000 $ 75,750 $ 108,750 Material B 14,700 37,700 52,400 Subtotal $ 47,700 $ 113,450 $ 161,150 Indirect materials 215,500 Total $ 376,650 g. Direct labor incurred for the two jobs and indirect labor are as follows: Job S $ 64,500 Job T 54,000 Indirect labor 151,000 Total $ 269,500
Required:
1. Calculate the total manufacturing cost for Job S and Job T for July. (Round your intermediate calculations and final answers to 2 decimal places.)
2. Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will be increased or decreased by the adjustment.?
Answer:
Solution 1 : Total Manufacturing Cost of Job S is $434,847.5 while for Job T is $ 392,247.5
Solution 2 : The amount of overheads has been over-applied and the Cost of Goods Sold will decrease by $94,695
Explanation:
Solution 1
Particulars Job S ($) Job T ($)
Direct material 47,700 113,450
Direct labor 64,500 54,000
Overhead Applied (Hours* $51.50) 322,647.5 224,797.5
Total manufacturing cost 434,847.5 392,247.5
Solution 2
In order to calculate the amount of over-applied or under-applied, we will take the difference between the overheads applied and the actual overheads incurred during the period. If the applied overheads are more than the actual then the amount has been over-applied and the Cost of Goods Sold will decrease. However, in case the overheads were under-applied then the Cost of Goods Sold would increase. The calculation has been done below:
Actual Overhead = $86,250 + $215,500 + $151,000 = $452,750
Applied overhead = 322,647.5 + 224,797.5 = $547,445
Over-applied/Under-applied overhead = Applied overhead - Actual Overhead
547,445 - 452,750 = $94,695. The overheads has been over-applied.
Cost of Goods Sold account will be decreased by $94,695.
Use the following information to answer this question.
Bayside, Inc. 2010 Income Statement ($ in thousands)
Net sales $ 5,970
Less: Cost of goods sold 4,320
Less: Depreciation 340
Earnings before interest and taxes 1,310
Less: Interest paid 33
Taxable Income $ 1,277
Less: Taxes 447
Net income $ 830
Bayside, Inc. 2009 and 2010 Balance Sheets ($ in thousands)
2009 2010 2009 2010
Cash $ 90 $195 Accounts payable $ 1,480 $ 1,455
Accounts rec. 980 820 Long-term debt 770 570
Inventory 1,585 2,020 Common stock $ 3,205 $ 3,240
Total $ 2,655 $ 3,035 Retained earnings 840 1,090
Net fixed assets3,640 3,320
Total assets $ 6,295 $ 6,355 Total liab. & equity $ 6,295 $ 6,355
How many dollars of sales are being generated from every dollar of fixed assets? (use 2010 values)
a. $1.72
b. $0.94
c. $0.95
d. $1.64
e. $1.80
Answer:
e. $1.80
Explanation:
Calculation for How many dollars of sales are being generated from every dollar of fixed assets
Using this formula
Sales generated by every dollar of fixed assets= Net sales/Fixed assets
Let plug in the formula
Sales generated by every dollar of fixed assets= 5,970/3,320
Sales generated by every dollar of fixed assets= $1.798
Sales generated by every dollar of fixed assets=$1.80 (Approximately)
Therefore How many dollars of sales are being generated from every dollar of fixed assets will be $1.80
Hugh has the choice between investing in a City of Heflin bond at 4.80 percent or investing in a Surething Inc. bond at 7.25 percent. Assuming that both bonds have the same nontax characteristics and that Hugh has a 40 percent marginal tax rate, what interest rate does Surething Inc. need to offer to make Hugh indifferent between investing in the two bonds
Answer:
8%
Explanation:
Calculation for what interest rate does Surething Inc. need to offer to make Hugh indifferent between investing in the two bonds
Using this formula
Interest rate=City of Heflin bond Percentage rate/(1 − Marginal tax rate)
Let plug in the formula
Interest rate=4.80% / (1 − 40%)
Interest rate=4.80%/60%
Interest rate= 8%
Therefore the interest rate that Surething Inc. need to offer to make Hugh indifferent between investing in the two bonds will be 8%
A farmer in Germany can use his land to produce corn or wheat. Suppose he can produce 1 million bushels of corn if it devotes all of its land to corn or 10 million bushels of wheat if it devotes all time to wheat. Plot the PPF with corn on the vertical access and wheat on the horizontal axis. What is the opportunity cost of a bushel of corn
Answer:
1/3 bushel of rye
Explanation:
Given that the farmer produces 30 bushels of corn every year but using the entire field on producing 30 corn bushels would cost 10 rye bushels. Thus, the opportunity cost of producing one bushel of corn would be 1/3 bushel of rye(10/30). The slope of the farmer's PPF would be -1/3 and hence, the opportunity cost of the farmer can be calculated by considering the reciprocal of a bushel of corn's opportunity cost.
The production possibilities frontier will shift outward
A.
if resources are used to produce consumption goods.
B.
if production occurs outside the production possibilities frontier.
C.
if resources are not used in production.
D.
.if resources are not used to produce capital goods
E.
.if technological advances occur
D. if resources are used to produce capital goods.
Production possibilities frontierThe PPF (production possibilities frontier) is a collection of points along which a country's economy allocates its resources most efficiently to produce as many things as feasible.The Production Possibilities Curve, also known as the Production Possibilities Frontier, is a graph that indicates how many units a firm can produce if it only makes two items and uses all of its resources efficiently.The production possibilities frontier will shift outward D. if resources are used to produce capital goods.For more information:
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The following information is available for Robstown Corporation for 20Y8:
Inventories
January 1
December 31
Materials $77,250 $93,600
Work in process 108,800 96,700
Finished goods 112,500 108,400
December 31
Advertising expense $ 67,800
Depreciation expense-office equipment 23,000
Depreciation expense-factory equipment 14,600
Direct labor 186,100
Heat, light, and power-factory 5,550
Indirect labor 23,800
Materials purchased 123,800
Office salaries expense 78,300
Property taxes-factory 4,145
Property taxes-office building 13,800
Rent expense-factory 6,550
Sales 861,500
Sales salaries expense 138,500
Supplies-factory 4,750
Miscellaneous costs-factory 4,420
a. Prepare the 20Y8 statement of cost of goods manufactured. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Robstown Corporation
Statement of Cost of Goods Manufactured
1
2
Direct materials:
3
4
5
6
7
8
9
Factory overhead:
10
11
12
13
14
15
16
17
18
19
20
21
b. Prepare the 20Y8 income statement. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive.
Robstown Corporation
Income Statement
1
2
Cost of goods sold:
3
4
5
6
7
8
9
Operating expenses:
10
Administrative expenses:
11
12
13
14
Selling expenses:
15
16
17
18
Answer and Explanation:
The preparations are as follows:
1) For Cost of goods manufactured
Opening Work in process inventory $108,800
Direct materials:
Opening inventory $77,250
Add: Purchases $123,800
Cost of materials available for use $201,050
Less: Ending inventory - $93,600
Cost of direct materials used $107,450
Add: Direct labor $186,100
Factory overhead
Indirect labor $23,800
Depreciation expense - factory equipment $14,600
Heat, light, and power - factory $5,550
Property taxes - factory $4,145
Rent expense - factory $6,550
Supplies - factory $4,750
Miscellaneous cost - factory $4,420
Total factory overhead $63,815
Total manufacturing costs spent $357,365
Total manufacturing costs $466,165
Less: ending work in process inventory -$96,700
Cost of goods manufactured $369,465
2. For Income statement
Sales $861,500
Less: Cost of goods sold:
Opening finished goods inventory $112,500
Add: Cost of goods manufactured $369,465
Cost of finished goods available for sale $481,965
Less: Ending finished goods inventory -$108,400
Cost of goods sold $373,565
Gross profit $487,935
Less: Operating expenses:
Administrative expenses:
Office salaries expense $78,300
Depreciation expense - office equipment $23,000
Property taxes - office building $13,800
Selling expenses:
Advertising expense $67,800
Sales salaries expense $138,500
Total operating expenses $321,400
Net income $166,535
How do patents help promote competition?
A. They support people who wish to copy and profit from registered inventions
B. Knowing inventions can be protected and encourages people to create new things
C. The owner of the patent can prevent other people and businesses from innovation
D. A patent can discourage businesses from offering new or improved goods and services
The answer is B. Knowing inventions can be protected and encourages people to create new things. Please give the other person Brainliest. They deserve it.
Hope this helps! :)
Inventories: March 1 March 31 Raw material $18,000 $15,000 Work in process 9,000 6,000 Finished goods 27,000 36,000 Additional information for March: Raw material purchased $42,000 Direct labor payroll $30,000 Direct labor rate per hour $7.50 Overhead rate per direct labor hour $10.00 Refer to Crawford Enterprises. For March, conversion cost incurred was
Answer:
$118000
Explanation:
Calculation for conversion cost incurred
First step is to calculate the Prime Cost
Opening stock Of Raw Material $18000
Add: Material purchased $42000
Less: Closing stock of raw material ($15000)
Add: Direct Labour $30000
Prime Cost $75000
Now let calculate the conversion cost incurred
Prime cost $75000
Add: overhead expenses $40000
[($30000/ $7.50)**10]
( 4000 * $10=$40000)
Total $115000
($75000+$40000)
Add: opening work in progress $9000
Total $124000
($115000+$9000)
Less: Closing stock of work in progress ($6000)
Factory cost or conversion cost $118000
($124000-$6000)
Therefore For March, conversion cost incurred was $118,000
what is Amazon's current price-to-book value?
Answer:
The current price to book value of Amazon as on date (25 February 2021) is 16.48
Explanation:
The current price to book value of Amazon as on date (25 February 2021) is 16.48
However, on 24th February 2021, the price to book value of Amazon was 17.03
Markel entered into a contract with Jaylin to paint a portrait for her in consideration of $600. This contract was freely negotiated. There was nothing in the terms of the agreement about when Markel had to start on the portrait or how long it should take him to finish. It took Markel a long time to complete the portrait, almost 18 months. Which of the following is true of this contract?
a. It must be in writing because it took longer than one year to complete.
b. It must be in writing because it was for more than $500.
c. It is a unilateral contract.
d. The contract need not be in writing.
Answer:
It is a unilateral contract.
Explanation:
A unilateral contract is a type of contract where only one party of the persons involved in the contract agrees to offer something.
In this case, Markel is offering to give Jaylin $600 for her portrait and Jaylin is not giving any specified time of delivery.
The contract is termed as the legal agreement between two-person that defines the rights and duties between the individuals or among the parties.
It is a legally enforceable obligation or the boundation between the person that accepts at their own wish for the exchange of the goods and services.
The correct option is c. It is a unilateral contract.
A unilateral contract is a type of contract where only one party of the persons involved in the contract agrees to offer something.
In this case, Markel is offering to give Jaylin $600 for her portrait and Jaylin is not giving any specified time of delivery. This is the correct option because it has been specified in the context itself about the one side contract by Markel.
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Which of the following types of insurance allows individuals to keep a former employer's group coverage for a set period of time?
COBRA
Individual health insurance
Hospital indemnity policy
Group health insurance
Answer:
group health insurance
ABC Company has elected to adopt the dollar-value LIFO inventory method when the inventory is valued at $125,000. The adoption takes place as of January 1, 20X1 when the entire inventory represents a single pool. ABC Company determined that the inventory at December 31, 20X1 was $144,375 at current year cost and $131,250 at base year cost using a relevant price index of 1.10. The inventory at December 31, 20X1 under dollar value LIFO is
Answer:
Explanation:
K
What may make a small business loan challenging to obtain? List at least two potential obstacles.
Answer:
credit
work history
Explanation:
hope this helps
A manufacturing plant that assembles television sets has variable output volume from 200 sets to 350 sets a day. The building for both manufacturing and warehousing has an area of 80,000 square feet. It employs about 250 people. It produces all of the components that go into the assembly. An example for variable cost in this plant is ___________________. Group of answer choices building cost equipment cost labor cost property taxes
Answer:
Labor cost
Explanation:
An example for variable cost in this plant is Labor cost. Labor cost is a variable cost at producers have to hire more labor to raise manpower to produce more goods. Labor cost is also the cost of human effort expended towards projects objectives.
You have received two bids from outside companies to conduct guest satisfaction surveys for you. You want at least 320 responses. Company A charges $3,200 + $6 per respondent. Company B charges $4,000 + $3 per respondent. Which company will cost you less?
a) Company A
b) Company B
From the two bids received from outside companies to conduct guest satisfaction surveys, the company that would cost me less will be Company B which charges $4,000 + $3 per respondent.
What is a bid?A bid is the price offer that a corporation or individual is willing to pay in the context of auctions, stock exchanges, or real estate. Bidding is an individual or business's offer to set a price for a product or service, or a demand that something is done. Bidding is a method of determining the price or worth of something.
Bidding can be done by a person who is influenced by a product or service in a given setting. It is used by numerous economic niches to determine demand and thus the worth of a commodity or property. In today's modern technology environment, the Internet is a preferred platform for giving bidding services.
Therefore, from the bids received it can be concluded that Company B would cost less.
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Smith Corporation has provided the following information: Cash sales totaled $135,000. Credit sales totaled $289,000. Cash collections from customers for services yet to be provided totaled $48,000. An $10,000 gain from the sale of property and equipment occurred. Interest income totaled $8,700. How much of these items were included in operating income
Answer:
$434,000
Explanation:
The total amount that should be included in the operating income as follows:
1. Cash sales $135,000
2. Credit sales $289,000
3. Gain from the sale of property and the equipment $10,000
Operating income $434,000
hence, the $434,000 should be included in the operating income
Suppose the market for hamburgers is unregulated. That is, hamburger prices are free to adjust based on the forces of supply and demand. If a shortage exists in the hamburger market, then the current price must be ________than the equilibrium price. For the market to reach equilibrium, you would expect _______.
If a shortage exists in the hamburger market, then the current price must be a)higher b)lower than the equilibrium price. For the market to reach equilibrium, you would expect:__________
a) buyers to offer higher prices
b) sellers to offer lower prices
c) persistent excess demand
Answerp
lower, buyers to offer higher prices
Explanation:
An unregulated market, is one whereby the supply and demand is left unguided or unmonitored. This makes buyers and sellers execute different prices as they deem fit.
It is commonly known that Prices that is behind or below the equilibrium price brings about excess demand as various buyers would want to buy to more goods than sellers are willing to sell. In this case, the quantity supplied will be less than the quantity demanded at that price. Some buyers who wish to be hamburger at the current price will be unable to do so. In order to buy hamburger, some buyers will offer higher prices. Some sellers will be love to sell additional unit only if the buyers increases the selling rate. The market being move toward the equilibrium price, where the quantity of the hamburger demanded by buyers is of an equals amount with the quantity supplied by sellers.
Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business, these events and transactions occurred:
Apr.
1 Stockholders invested $18,000 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $375 per week, payable monthly.
2 Paid office rent for the month $900.
3 Purchased architectural supplies on account from Burmingham Company $1,300.
10 Completed blueprints on a carport and billed client $1,900 for services.
11 Received $700 cash advance from M. Jason to design a new home.
20 Received $2,800 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,500.
30 Paid $300 to Burmingham Company for accounts payable due.
Required:
Journalize the transactions.
Answer:
Apr. 1
Dr Cash 18000
Cr Common stock 18000
Apr. 1
No entry
Apr. 2
Dr Rent expense 900
Cr Cash 900
Apr. 3
Dr Supplies 1300
Cr Accounts payable 1300
Apr. 10
Dr Accounts receivable 1900
Cr Service revenue1900
Apr. 11
Dr Cash700
Cr Unearned service revenue700
Apr. 20
Dr Cash 2800
Cr Service revenue 2800
Apr. 30
Dr Salaries and wages expense 1500
Cr Cash1500
Apr. 30
Dr Accounts payable 300
Cr Cash300
Explanation:
Preparation of the journal entries
Apr. 1
Dr Cash 18000
Cr Common stock 18000
Apr. 1
No entry
Apr. 2
Dr Rent expense 900
Cr Cash 900
Apr. 3
Dr Supplies 1300
Cr Accounts payable 1300
Apr. 10
Dr Accounts receivable 1900
Cr Service revenue1900
Apr. 11
Dr Cash700
Cr Unearned service revenue700
Apr. 20
Dr Cash 2800
Cr Service revenue 2800
Apr. 30
Dr Salaries and wages expense 1500
Cr Cash1500
Apr. 30
Dr Accounts payable 300
Cr Cash300
The August 31 balance shown on the bank statement is $9,813.
a. There is a deposit in transit of $1,263 at August 31.
b. Outstanding checks at August 31 totaled $1,877.
c. Interest credited to the account during August but not recorded on the company's books amounted to $116.
d. A bank charge of $35 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived.
e. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $626 had been recorded as a disbursement of $373. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,371.
Required:
Prepare a bank reconciliation as of August 31 from the above information.
Answer:
Adjusted Balance per bank $9,199
Adjusted Balance per books $9,199
Explanation:
Preparation of a bank reconciliation as of August 31
Balance per bank on August 31 $9,813
Add Deposit in transit $1,263
Less Outstanding checks ($1,877)
Adjusted Balance per bank $9,199
Balance per books on August 31 $9,371
Add Interest earned $116
Less Bank charge ($35)
Less Error in Books ($253)
($626-$373)
Adjusted Balance per books $9,199
Therefore the bank reconciliation as of August 31 will be:
Adjusted Balance per bank $9,199
Adjusted Balance per books $9,199
A company currently using an inspection process in its material receiving department is trying to install an overall cost reduction program. One possible reduction is the elimination of one inspection position. This position test material has a defective content on the average of 0.04. By inspecting all items, the inspector is able to remove all defects. The inspector can inspect 50 units per hour. The hourly rate including fringe benefits for this position is $9. If the inspection position is eliminated, defects will go into product assembly and will have to be replaced later at a cost of $10 each when they are detected in final product testing.
Required:
a. If the inspector position is eliminated, what will the hourly cost of defects be?
b. Should this inspection position be eliminated?
c. What is the cost to inspect each unit?
d. Is there benefit (or loss) from the current inspection process? How much?
Answer:
defects per hour = 0.04
units inspected per hour = 50
inspector's salary per hour = $9
cost per undetected defects = $10
a. If the inspector position is eliminated, what will the hourly cost of defects be?
number of defects per hour = 0.04 x 50 = 2
cost of defects = 2 x $10 = $20
b. Should this inspection position be eliminated?
no, because the cost of eliminating the position is higher than the cost of hiring the inspector
c. What is the cost to inspect each unit?
cost to inspect each unit = $9 / 50 = $0.18 per unit
d. Is there benefit (or loss) from the current inspection process? How much?
the benefit of the inspection process = $20 - $9 = $11 per hour, or $11 / 50 = $0.22 per unit
Treasury Stock Facts Target Inc. arranged to purchase a large block of its common stock from a major shareholder. The total number of shares purchased is 10,000 and these shares are to be held as treasury shares. Target Inc. uses the cost method to account for treasury shares. This shareholder had a controlling interest before the transaction. After the transaction this shareholder no longer has a controlling interest. Given these facts, to induce the shareholder to sell the block of stock Target Inc. was forced to pay an amount in excess of the current market price of the stock. Target Inc. paid the shareholder $40 per share when the market price was $30 per share.Question How should Target Inc. account for the purchase of this treasury stock?a. Provide a brief written description of the proper accounting treatment, including how the extra $10 paid per share is recorded.b. Prepare a formal journal entry to record the treasury stock transaction.c. Identify the specific paragraph of the FASB Codification which addresses this issue.
Answer:
Target Inc.
a. Under the cost method, as adopted by Target Inc., the cost of acquiring the treasury stock is debited to the Treasury Stock account and credited to the Cash account. This means that there is no differentiation of the extra $10 just as there is no differentiation between the par-value and the cost of acquiring each share.
b. Journal Entry:
Debit Treasury Stock $40,000
Credit Cash $40,000
To record the repurchase of 10,000 shares at $40 each.
c. The FASB Codification which addresses Treasury Stock accounting is called Codification Topic 505-30. The cost of treasury stock is reported separately from the gain or loss.
Explanation:
a) Data and Calculations:
Total number of shares purchased = 10,000
Price paid for the purchase = $40
Market price of the share = $30
Extra cost paid = $10
b) Two methods are adopted for recording treasury stock. There is the par-value method. This method records the treasury stock at the par value multiplied by the number of treasury stock. The difference in the purchase cost and the par-value is then recorded in the Additional Paid-in Capital account. The other method is the cost method. Here, the cost of acquiring the treasury stock (not the par-value) is recorded in the Treasury Stock account, with a credit entry to the Cash account. Treasury Stock account is a contrary account to the stockholders' equity, and as a result, is a deduction from the amounts in the Stockholders' Equity in the balance sheet, in both cases.
The process cost summary summarizes:_________
a. Physical flow of units.
b. Equivalent units of production.
c. Individual department's costs.
d. Costs per equivalent units.
e. Expenses incurred during the period.
f. Assignment of total costs to units worked on in the period.
Answer and Explanation:
The summary of the process cost involves the physical flow of units, equivalent units of production, cost per equivalent unit, and the total cost assignment to the units worked on the given time period
Only these four things would be shown in the summary of the process cost
Other than this would be ignored