Answer:
Explanation:
Corporate business travel management manages all aspects of the travel arrangements for an organization's employees. Contracts with airlines, hotel chains, rental car companies, and other business travel management services are arranged by corporate travel management services.
Answer:
Travel management is a specialism, which is based around organising corporate travel, tracking your various travel expenses and devising a comprehensive travel strategy. As a discipline, it is intended to help businesses and their employees to optimise the way they deal with their travel needs.
Explanation:
Ketchup is a complement (as well as a condiment) for hot dogs. If the price of hot dogs rises, what happens to the market for ketchup? For tomatoes? For tomato juice? For orange juice?
Answer:
They will decrease except for Orange Juice
Explanation:
When prices for an item increase this causes less people to be able to afford paying for that item. Therefore, demand for that item decreases. Since Ketchup is a complimentary item for hot dogs this would cause demand for Ketchup to decrease as well and the same goes for all the ingredients used to make ketchup. This includes tomatoes and tomato juice, their market would decrease as well. Orange Juice is not directly affected by such an event since it is not complimentary to hot dogs.
Oliveira Industries issued $500,000 in 10% bonds with a 10-year term. If they pay interest to bondholders on a typical schedule, they could choose to pay interest on:______
A : March 31, June 30, September 31, and December 31.
B : December 31.
C : the last day of each month.
D : January 1 and July 1.
Answer:
Explanation:
January 1 and July 1
what is a small business?
Small businesses are privately owned corporations, partnerships, or sole proprietorships that have fewer employees and/or less annual revenue than a regular-sized business or corporation.
Here is the ledger for Blossom Company.
Cash
Oct. 1 8,660 Oct. 4 2,060
Oct. 10 2,640 Oct. 12 3,160
Oct. 10 9,660 Oct. 15 360
Oct. 20 810 Oct. 30 410
Oct. 25 3,660 Oct. 31 610
Accounts Receivable
Oct. 6 910 Oct. 20 810
Oct. 20 1,030
Supplies
Oct. 4 2,060 Oct. 31 1,840
Equipment
Oct. 3 4,660
Notes Payable
Oct. 10 9,660
Accounts Payable
Oct. 12 3,160 Oct. 3 4,660
Common Stock
Oct. 1 8,660
Oct. 25 3,660
Dividends
Oct. 30 410
Service Revenue
Oct. 6 910
Oct. 10 2,640
Oct. 20 1,030
Salaries and Wages Expense
Oct. 31 610
Supplies Expense
Oct. 31 1,840
Rent Expense
Oct. 15 360
Required:
Reproduce the journal entries for only the transactions that occurred on October 1, 10, and 20.
b.Prepare a trial balance at October 31.
Answer:
1/Oct : Cash (Dr.) $8,660
Accounts Receivable (Cr.) $8,660
10/Oct : Equipment & Supplies (Dr.) $9,660
Notes Payable (Cr.) $9,660
20/Oct : Accounts Receivable (Dr.) $2,640
Service Revenue (Cr.) $2,640
Explanation:
Debits $16,960
Cash 6,600
Accounts Receivable 1,840
Supplies 1,840
Equipment 4,660
Dividend 2,020
Credits : $16960
Accounts Payable 4,660
Notes Payable 9,660
Service Revenue 2,640
During March, a firm expects its total sales to be $160,000, its total variable costs to be $95,000, and its total fixed costs to be $25,000. The contribution margin for March is: Multiple Choice
Answer:
$65,000
Explanation:
contribution margin = total sales revenue - total variable costs = $160,000 - $95,000 = $65,000
if you want to calculate the contribution margin per units, all you need to do is divide the total contribution margin by the total number of units sold.
for example, if total units = 10,000
contribution margin per unit = $65,000 / 10,000 = $6.50
Smart Watch Company reported the following income statement data for a 2-year period.
2019 2020
Sales revenue $220,000 $250,000
Cost of goods sold
Beginning inventory 32,000 44,000
Costs of goods purchased 173,000 202,000
Cost of goods available for sale 205,000 246,000
Ending inventory 44,000 52,000
Cost of goods sold 161,000 194,000
Gross profit $59,000 $56,000
Smart uses a periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was overstated $6,000.
Required:
a. Prepare correct income statement data the 2 years.
b. What is the cumulative effect of the inventory error on total gross profit for the 2 years?
Answer and Explanation:
a. The preparation of the correct income statement is as follows:
Year 2019 2020
Sales revenue $220,000 $250,000
Cost of goods sold
Beginning inventory $32,000 $38,000
Add: Costs of goods
purchased $173,000 $202,000
Cost of goods available for sale $205,000 $240,000
Less: Ending inventory -$38,000 -$52,000
($44,000 - $6,000 )
Cost of goods sold $167,000 $188,000
Gross profit $53,000 $62,000
b. The cumulative effect is
Incorrect gross profit = $59,000 + $56,000 = $115,000
Correct gross profit = $53,000 + $62,000 = $115,000
Net effect would be zero
A company has sales of $378,600 and its gross profit is $159,100. Its cost of goods sold equals:
Answer: $219500
Explanation:
The formula for the calculation of gross profit is the difference between the sales and the cost of goods sold. In this scenario, therefore, the cost of goods sold will be:
= Sales - Gross profit
= $378600 - $159100
= $219500
The cost of goods sold is $219500
Estimate the value of a loyal customer of a loyal Volvo automobile owner. Assume the contribution margin is 0.28, the purchase price is $63,000, the repurchase frequency is every six years, and the customer defection rate is 22 percent. Do not round intermediate calculations. Round your answer to the nearest dollar.
Answer:
value of a loyal customer = $481,091 (to the nearest dollar)
Explanation:
The Value of a loyal customer (VLC) is the measure of loyalty shown by the customer in choosing a company over its direct competitors every time.
To calculate VLC, the following formula is used:
VLC = (purchase price) × (contribution margin) × (repurchase frequency) × (buyer's life cycle).
From the list of data in the question, you will notice that 'buyer's life cycle (BLC)' is not given. Now, let us calculate BLC.
BLC = 1 ÷ (defection rate)
Defection rate = 22% = 22/100 = 0.22
∴ BLC = 1 ÷ (0.22) = 1/0.22 (do not round intermediate calculations)
∴ VLC = 63,000 × 0.28 × 6 × (1/0.22)
[tex]VLC = \frac{63000 \times 0.28 \times 6}{0.22} \\= 481,090.91[/tex]
= $481,091 (to the nearest dollar)
The value of a loyal customer of a loyal Volvo automobile owner is $481,091.
What is a calculation of the value of a loyal customer?The value of loyal customers or VLC is derived by multiplying the values of the purchase price, contribution margin, repurchase frequency, and buyer's life cycle with each other.
Here, the buyer's life cycle would be calculated by dividing 1 by the defection rate.
Now, VLC would be;
[tex]VLC=63,000*0.28*6*\frac{1}{0.22} \\=481,090.91[/tex]
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What is the proper factor notation for calculating the present worth of a gradient series, given a gradient amount of $500, an interest rate of 2%, and the number of periods equal to 10?
a) P-$500(PIF 290, 10)
b) P-$500(GIP 296, 10)
c) P-$500(PIA 296, 10)
d) P-$500(PIG 296, 10)
Answer:
Explanation:
d) P-$500(PIG 296, 10)
A computer sends a packet of information along a channel and waits for a return signal acknowledging that the packet has been received. If no acknowledgment is received within a certain time, the packet is re-sent. Let X represent the number of times the packet is sent. Assume that the probability mass function of X is given byp(x) ={ cx , for x=0,1,2,...50 , otherwieFind P(X = 2).
Answer:
The answer is "[tex]\frac{2}{15}[/tex]" .
Explanation:
[tex]\to x = 0, 1, 2, 3, 4, 5\\\\\to p(x) \ for \ x \ = 0, 1, 2, 3, 4, 5 = 0\\\\ \to c, 2c, 3c , 4c, 5c = 1\\\\\to 0 + c + 2c + 3c + 4c + 5c = 1\\\\\to 15c = 1\\\\\to c = \frac{1}{15}\\[/tex]
[tex]\to p(x) \ for \ x \ = 0, 1, 2, 3, 4, 5 = 0\\\\ \to \frac{1}{15}, \frac{2}{15}, \frac{3}{15}, \frac{4}{15}, \frac{5}{15}[/tex]
[tex]\to P(X=2)=\frac{2}{15}[/tex]
Consider the recorded transactions below.
Debit Credit
1. Accounts Receivable 8,400 Service Revenue 8,400
2. Supplies 2,300 Accounts Payable 2,300
3. Cash 10,200 Accounts Receivable 10,200
4. Advertising Expense 1,000 Cash 1,000
5. Accounts Payable 3,700 Cash 3,700
6. Cash 1,100 Deferred Revenue 1,100
Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is:
Cash, $2,700;
Accounts Receivable, $3,500;
Supplies, $330;
Accounts Payable, $2,800;
Deferred Revenue, $230.
Service Revenue and Advertising Expense each have a beginning balance of zero.
Answer:
The ending balance of each account after the transactions is:
Cash, $9,300;
Accounts Receivable, $1,700;
Supplies, $2,630;
Accounts Payable, $1,400;
Deferred Revenue, $1,330.
Service Revenue and Advertising Expense each have an ending balance of zero.
Explanation:
Note: See the attached excel file for the T-accounts and computation of the ending balance (in red color).
The Service Revenue and Advertising Expense each have an ending balance of zero because they are to bee transferred to the income statement of the period. The income statement as an abridged version can be shown as follows:
Income statement (Abridged)
For the Period ...
Particulars $
Service Revenue 8,400
Advertising Expense (1,000)
Net income 7,400
Presented below is information related to equipment owned by Suarez Company at December 31, 2017.
Cost $9,000,000
Accumulated depreciation to date 1,000,000
Expected future net cash flows 7,000,000
Fair value 4, 800,000
Assume that Suarez will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years.
Instructions
(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017.
(b) Prepare the journal entry to record depreciation expense for 2018.
(c) The fair value of the equipment at December 31, 2018, is $5, 100,000. Prepare the journal entry (if any) necessary to record this increase in fair value.
Answer and Explanation:
The journal entries are shown below:
But before that following calculations need to be done
For impairment loss
Cost $9,000,000
Less: Accumulated Deprecation-equipment $1,000,000
Net Value $8,000,000
Less: Fair value $4,800,000
Loss on Impairment $3,200,000
For depreciation expense
Fair value $4,800,000
Life 4 years
Depreciation Expenses $ 1,200,000
The journal entries are as follows:
1 Loss on Impairment $3,200,000
To Accumulated Deprecation-equipment $3,200,000
(being loss on impairment is recorded)
2 Depreciation Expenses $1,200,000
To Accumulated Deprecation-equipment $1,200,000
(Being depreciation expense is recorded)
3 No Journal Entry is required
The journal entries of the above transactions are shown in the image below.
What is journal entry?
Journal entry is the of recording all the financial transactions of the business in which all the business transactions are recorded whether it is actually received or not.
Computation of the amount of the journal entry:
Amount for impairment of the loss:
According to the given information,
Cost = $9,000,000
Accumulated Deprecation-equipment = $1,000,000
Fair value = $4,800,000
Now put the values in the formula,
[tex]\text{Loss on Impairment} = \text{Cost} - \text{Accumulated Deprecation}- \text{Fair Value}\\\text{Loss on Impairment} = \$9,000,000 - \$1,000,000 - $4,800,000\\\text{Loss on Impairment} = \ $3,200,000[/tex]
Therefore, the journal entry of the above transactions are given in the image below.
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Skysong Industries collected $92,400 from customers in 2022. Of the amount collected, $22,000 was for services performed in 2021. In addition, Skysong performed services worth $35,200 in 2022, which will not be collected until 2023. Skysong Industries also paid $63,360 for expenses in 2022. Of the amount paid, $26,400 was for expenses incurred on account in 2021. In addition, Skysong incurred $36,960 of expenses in 2022, which will not be paid until 2023.
(a) Compute 2022 cash-basis net income.
(b) Compute 2022 accrual-basis net income. Accrual-basis net income $
Answer:
(a) Compute 2022 cash-basis net income.
Revenue $92,400
Expenses ($63,360)
Net income $29,040
(b) Compute 2022 accrual-basis net income.
Revenue ($92,400 - $22,000 + $35,200) $105,600
Expenses ($63,360 - $26,400 + $36,960) ($73,920)
Net income $31,680
A speculator can choose between buying 100 shares of a stock for $40 per share and buying 1000 European call options on the stock with a strike price of $45 for $4 per option.For second alternative to give a better outcome at the option maturity,the stock price must be above:_________.A) $45B) $46C) $55D) $50
Answer:
D) $50
Explanation:
When stock price = 50
Profit on shares = (Stock price - Purchase price) * Number of shares = (50 - 40) * 100 = 1000
Profit on call option = Number of options * (stock price - exercise price - premium paid) = 1000 * (50 - 45 - 4) = 1000
Hence when stock price = 50, both the options would yield the same profit but the call option strategy would have an upper hand in profitability for every price increase above the $50 level because then the share buying strategy would yield $100 profit for every $1 price increase whereas the option buying strategy would yield $1000 profit for the same level of price increase.
Hence for the second option to yield higher profit, the stock price should be above 50.
An increase in which of the following will increase the return on equity, all else constant I. Total asset turnover. II. Net income. III. Total assets. IV. Debt-equity ratio. I only. I, II, and III only. I and II only. I, II, and IV only. I, II, III, and IV.
Answer:
I and II only.
Explanation:
Return on equity (ROE) is an example of a profitability ratio.
Profitability ratios measures the ability of a company to earn profits from its assets.
ROE = Net income / Average total equity
If ROE increases, it means that net income increases more than average total equity
Total asset turnover = Revenue / average total assets
(Net Income/ Net profit margin) / Total Assets
All else remaining constant, if ROE increases, it means that revenue also increases more than average total asset
Since Net income is the numerator in ROE, it means it would also increase
Total asset and debt equity ratio is not a component of ROE, so the effect of ROE on them can't be determined
2. Consider this scenario. Suzanne designs custom dresses. She has recently decided to open a
boutique and recreate some of her most popular designs. Suzanne has her storefront and her
business license but her dresses don't have any tags. What legal consideration is she not in
accordance with? (2 points)
I
Answer:
The legal consideration that Suzanne is not in accordance or compliance with is the clothing labeling laws.
The clothing labeling laws include the following:
The Textile Fiber Products Identification Act, 1960
The Wool Products Labeling Act, 1939
The Fur Products Labeling Act, 1952
The above clothing labeling laws were passed by Congress to inform and protect consumers, and they require that dresses have labeling tags.
Explanation:
The above-mentioned clothing labeling laws are enforced by the U.S. Federal Trade Commission (FTC). Penalties are imposed by the FTC on any business that does not comply with the clothing labeling regulations.
Sosa Diet Supplements had earnings after taxes of $1,170,000 in 20X1 with 347,000 shares of stock outstanding. On January 1, 20X2, the firm issued 103,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 31 percent.
a. Compute earnings per share for the year 20X1. (Round your answer to 2 decimal places.)
b. Compute earnings per share for the year 20X2. (Round your answer to 2 decimal places.)
Answer:
A. $3.37
B. $3.41
Explanation:
A.Computation for earnings per share for the year 20X1
20X1 Earnings per share= $1,170,000/347,000
20X1 Earnings per share= $3.37
Therefore earnings per share for the year 20X1 will be $3.37
B. Computation for earnings per share for the year 20X2.
First step is to calculate the Earnings available to common stockholders
Earnings available to common stockholders = $1,170,000x (1+.31 )
Earnings available to common stockholders = $1,170,000x 1.31
Earnings available to common stockholders = = $1,532,700
Second step is to calculate the Common shares outstanding
Common shares outstanding = 347,000 + 103,000
Common shares outstanding = 450,000
Now let calculate the earnings per share for the year 20X2
20X2 Earnings per share=$1,532,700/450,000
20X2 Earnings per share = $3.41
Therefore earnings per share for the year 20X2 will be $3.41
A new oven will save $100 per year in electricity expense. How much can we afford to pay for this oven if it is expected to last 15 years
Answer:
$557.55
Explanation:
Missing word "The interest rate is 16% per year"
Present Value of annuity of 1 = (1-(1+i)^-n)/i
Where, i = 16%, n=15
Present Value of annuity of 1 = (1-(1+0.16)^-15)/0.16
Present Value of annuity of 1 = 5.575456
Present Value of saving of electricity expense = Annual Saving * Present Value of annuity of 1 = $100.00 * 5.575456 = $557.55. So, the amount we can afford to pay is $557.55
TRANSACTIONS
1. Paid $2,100 for utilities.
2. Performed services for $10,500 on account
3. Received $6,500 from charge account customers
4. Paid salaries of $4,500 to employees
5. Paid $8,000 to a creditor on account.
6. Owner invested $90,000 in the business.
7. Purchased $26,700 of supplies on account.
8. Purchased equipment for $21,000 cash
9. Paid $6,000 for rent (in advance).
10. Performed services for $7,800 cash.
Indicate the impact of each of the transactions below on the fundamental accounting equation (Assets Liabilities+Owner's Equity) by placing a "+" to indicate an increase and a "-" to indicate a decrease. The first transaction is entered as an example. (If transaction causes one account to increase and another to decrease within the same classification of the accounting equation, select +/-)
Assets Liabilities +Owner's Equity
Transaction 1
Transaction 2
Transaction 3
Transaction 4
10. Performed services for $7,800 cash.
indicate the impact of each of the transactions below on the fundamental accounting equation (Assets = Liabilities + Owner's Equity) by placing a "+" to indicate an increase and a "-" to indicate a decrease. The first transaction is entered as an example. (If transaction causes one account to increase and another to decrease within the same classification of the accounting equation, select
+1) Assets Liabilities Owner's Equity
Transaction 1
Transaction 2
Transaction 3
Transaction 4
Transaction 5
Transaction 6
Transaction 7
Transaction 8
Transaction 9
Transaction 10
Answer:
Transactions and their Effects on the Accounting Equation
1. Paid $2,100 for utilities.
Assets (Cash -$2100) = Liabilities + Equity (Retained Earnings -$2100)
2. Performed services for $10,500 on account
Assets (Accounts Receivable +$10,500) = Liabilities + Equity (Retained Earnings +$10,500)
3. Received $6,500 from charge account customers
Assets (Cash +$6,500; Accounts Receivable -$6,500) = Liabilities + Equity
4. Paid salaries of $4,500 to employees
Assets (Cash -$4,500) = Liabilities + Equity (Retained Earnings -$4,500)
5. Paid $8,000 to a creditor on account.
Assets (Cash -$8,000) = Liabilities (Accounts payable -$4,500) + Equity
6. Owner invested $90,000 in the business.
Assets (Cash +$90,000) = Liabilities + Equity (Common Stock +$90,000)
7. Purchased $26,700 of supplies on account.
Assets (Inventory +$26,700) = Liabilities + Equity (Retained Earnings +$26,700)
8. Purchased equipment for $21,000 cash
Assets (Equipment +$21,000; Cash -$21,000) = Liabilities + Equity
9. Paid $6,000 for rent (in advance).
Assets (Cash -$6,000; Prepaid Rent +$6,000) = Liabilities + Equity
10. Performed services for $7,800 cash.
Assets (Cash +$7,800) = Liabilities + Equity (Retained Earnings + $7,800)
Explanation:
The effects of transactions on the accounting equation of assets = liabilities + equity demonstrates that each transaction affects two accounts and makes the equation to remain in balance.
A Union worker is to see an increase in pay of 2.5% per year next year. Her salary is $41,000 yr. If inflation was predicted
to be 1.9% for the upcoming year, how much more purchasing power would she have in dollars next year?
= 41,000 USD * 1+(2.5%-1.9%)
= 41,000 USD * 1.60
= 65,600
Net change 65,600 - 41,000 = $24,600
INCREASE IN HIS PURCHASING POWER!!!
OR 60% MORE IN HIS POCKET CHA-CHING!!Good luck!
#JmackTheInstructor
Net change in purchasing power next year is $24,600
Given:
Increase pay per year = 2.5% per year
Current salary = $41,000
Predicted inflation = 1.9%
Find:
Net change in purchasing power next year
Computation:
Value of money next year = 41,000[1+(2.5%-1.9%)]
Value of money next year = 41,000[1.60%]
Value of money next year = 65,600
Net change in purchasing power next year = 65,600 - 41,000
Net change in purchasing power next year = $24,600
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There are often considerable differences in how projects are managed within certain firms, even if the same project management structure is being used. Explain how and why this phenomenon occurs and what can be done to ensure consistency.
Answer is given below :
Explanation:
A project is a combination of different technologies and columns. Oversight and control for a project, activity monitoring and control cycle (comparison of performance criteria runs in four stages. Comparison of actual and planned performance. Performance monitoring and action). Creole begins with setting performance standards, which become part of the plan.Project management methods and structures provide a framework for project management in different situations - they often provide commentary for project managers.Project management teams often prioritize and select the best course of action based on personality: the project manager's insight. This approach varies from one person to another and therefore has a different management approach within an organization.To ensure sustainability, an organization must develop standard practices for its business sector. This ensures that managers follow the same procedure and adhere to the process.(please hurry its due soon) The American composer john cage spoke of the "all sounds" music of the future. What might that mean?
Explanation:
the famous composer known for he meant that music would be more than just about dissonance and consonance. John Kay just talkin about a revolution in music where the boundaries between noise and music would be challenged. In a way he turned out to be right as what would be considered noise in a stretch acoustic point of view or now included in musical compositions
On January 1, 2021, American Corporation purchased 30% of the outstanding voting shares of Short Supplies common stock for $222,000 cash. On that date, Short's book value and fair value were both $740,000. The equity method is deemed appropriate for this investment. Short's net income reported on December 31, 2021, was $70,000. During 2021, Short also paid cash dividends in the amount of $19,000.
Required:
Compute the amount that would be reported for the investment on American Corporation's financial statements at December 31, 2021. what is investment amount?
Answer:
the amount that should be reported for the investment is $237,300
Explanation:
The computation of the amount that should be reported for the investment is as follows:
= Original investment + net income share - cash dividend
= $222,000 + ($70,000 × 30%) - ($19,000 × 0.30)
= $222,000 + $21,000 - $5,700
= $237,300
hence, the amount that should be reported for the investment is $237,300
In order to set premiums at profitable levels, insurance companies must estimate how much they will have to pay in claims on cars of each make and model, based on the value of the car and how much damage it sustains in accidents. Let C be a random variable that represents the cost of claims on a randomly selected car of one model. The probability distribution of C is given below.
c $0 $1000 $4000 $10000
P(c) 0.6 0.05 0.13 0.22
Which of the following is the probability that the insurance company will have to pay a claim of at least $1000 for a randomly selected car of this model?
a. 0.05
b. 0.13.
c. 0.22.
d. 0.35.
e. 0.406.
f. none of above
Answer:
0.4
None of the above
Explanation:
Given the distribution :
c ___$0 ___ $1000 ____ $4000 ___ $10000
P(c) _0.6 ____0.05 ______ 0.13 _____ 0.22
Probability of atleast $1000 :
P(x ≥ 1000) : P(x = 1000) + P(x = 4000) + P(x = 10000)
P(x ≥ 1000) = 0.05 + 0.13 + 0.22
P(x ≥ 1000) = 0.4
The probability of the insurance company having to pay the claim of a minimum of $1000 for a randomly opted car's model would be:
e). 0.406
As per the data provided,
c P(c)
$0 0.6
$1000 0.05
$4000 0.13
$10000 0.22
Probability of insurance company having to pay the claim of a minimum of $1000 for a randomly opted car's model(P):
[tex]P(x[/tex] [tex]\geq[/tex] [tex]1000) : P(x = 1000) + P(x = 4000) + P(x = 10000)[/tex]
[tex]P(x \geq 1000)[/tex] [tex]= 0.05 + 0.13 + 0.22[/tex]
∵ [tex]P(x \geq 1000)[/tex] [tex]= 0.406[/tex]
Thus, option e is the correct answer.
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On November 1, Jasper Company loaned another company $270,000 at a 8.0% interest rate. The note receivable plus interest will not be collected until March 1 of the following year. The company's annual accounting period ends on December 31. The amount of interest revenue that should be reported in the first year is:
Answer:
The interest revenue that should be reported in the first year, for two months from November to December, on 31 December is $3600.
Explanation:
According to the accrual basis of accounting, the revenues and expenses for a particular period should be recorded in the period to which they relate to rather then when they are received or paid. This means that although the interest will be received on March 1 of the next year, the interest revenue on note receivable for a period of two months from November to December should be recorded in the first year because it has been earned in the first year and it relates to it.
Interest revenue - first year = 270000 * 0.08 * 2/12 = $3600
Marion Company issued a $350,000, zero-interest-bearing, 5-year note in exchange for land with a fair market value of $287,000 from Palma Real Estate. If the present value of the note at an appropriate rate of interest is $287,000, Palma Real Estate should record a :________.
A : premium on notes receivable.
B : gain on the sale of land.
C : premium on the sale of land.
D : discount on notes receivable.
Answer:
b
Explanation:
i have done this one before
Lorenzo Company uses a job order costing system that charges overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following.
Date Explanation Debit Credit Balance
2017
Dec. 31 Direct materials cost 1,500,000 1,500,000
31 Direct labor cost 300,000 1,800,000
31 Overhead applied 600,000 2,400,000
31 To finished goods 2,350,000 50,000
1. Determine the predetermined overhead rate used (based on direct materials cost).
2. Only one job remained in work in process inventory at December 31, 2017. Its direct materials cost is $30,000. How much direct labor cost and overhead cost are assigned to this job?
Answer and Explanation:
The computation is shown below:
a. The predetermined overhead rate is
= Overhead applied ÷ direct material cost
= $600,000 ÷ $1,500,000
= 40%
2. The direct labor cost and the overhead cost assigned is
= Total cost in process - applied overhead - material cost
= $50,000 - ($30,000 × 0.40) - $30,000
= $8,000
Hence, the same would be considered
The difference between a job shadow and an internship is
Answer:
An internship is more involved
Explanation:
correct answer in A P E X
Plumber Corporation acquired all of Socket Corporation's voting shares on January 1, 20X2, for $482,000. At that time, Socket reported common stock outstanding of $92,000 and retained earnings of $130,000. The book values of Socket's assets and liabilities approximated fair values, except for land, which had a book value of $92,000 and a fair value of $112,000, and buildings, which had a book value of $225,000 and a fair value of $410,000. Land and buildings are the only noncurrent assets that Socket holds.
Required:
a. Compute the amount of goodwill at the date of acquisition Goodwill
b. Prepare the consolidating entry or entries required immediately.
Answer:
Part a
$55,000
Part b
Debit : Common Stock $92,000
Debit : Retained Earnings $130,000
Debit : Revaluation Reserve ($20+ $185) $205,000
Debit : Goodwill $55,000
Credit : Investment in Subsidiary - Socket Corporation $482,000
Explanation:
Goodwill is the excess of Purchase price over the Net Assets Taken over at acquisition date.
The Net Assets taken over can be presented by the Equity of the Investee. That is the sum of Common Stock, Retained Earnings and Revaluation Reserves made to reflect fair value adjustments at acquisition date.
Note how the Revaluation Reserve ended with $205,000 following increase of $20,000 on value of land and $185,000 on value of buildings to reflect fair values.
The elimination journal needs to be prepared at consolidation to eliminate common items as reflected by Part b above.
A time ticket: Multiple Choice Shows the time that a department's employees worked on all jobs, the pay rate of each employee, and the total cost chargeable to each job. Shows the time an employee worked on each job, the pay rate, and the total cost chargeable to each job. Shows the time an employee worked on each job only. Shows the time an employee worked on each job and the total cost chargeable to each job only.
Answer:
Shows the time an employee worked on each job, the pay rate, and the total cost chargeable to each job.
Explanation:
A time ticket is a document that constitutes of the working period of the particular employee. It includes the working period for which the employee has been paid by the company. It constitutes of the initial time of the working day and the ending time of the day. The work hour for which the employee is paid and the cost invoked during the course of the period is also listed in the time ticket.