Answer:
misrepresentation
Explanation:
A broker is a person or firm who arranges the sale and purchase of a property between a buyer and a seller. He gets a commission if the deal is executed.
In the given question, a buyer is told by a broker that the property taxes in a particular neighborhood are the lowest in the area. Based on this information, makes an offer on a house in the neighborhood. Just before closing, he comes to know that the taxes are actually among the highest in the area.
So, The buyer could seek to rescind the contract based on misrepresentation
The annual budgeted conversion costs for a lean cell are $180,000 for 1,000 production hours. Each unit produced by the cell requires 20 minutes of cell process time. During the month, 600 units are manufactured in the cell. The estimated materials costs are $30 per unit. (Do not round per unit cost. If required, round your answers to the nearest dollar.)
Required:
1. Journalize the following entries for the month:
a. Materials are purchased to produce 500 units.
b. Conversion costs are applied to 600 units of production.
c. The cell completes 450 units, which are placed into finished goods.
If an amount box does not require an entry, leave it blank.
Answer: Please see in explanation column
Explanation:
Budgeted Conversion Cost $ 180,000
Total Production hours = 1,000 hours
Conversion cost per production hour = 180,000/1,000 = $ 180 per hour
Production time per unit produce = 20 minutes
Conversion cost per unit -- first mins change to hrs
60min = 1 hour
20 min= 20/60=0.33hr
$ 180 x 0.333333 = $ 59.999per unit
Material cost per unit = $ 30 per unit
Total cost per unit production =
Material cost per unit+ conversion cost per unit = 30+ 59.999= $ 89.999per unit
a)Material Required per unit = $30 per unit
Material purchase for 500 units =30 x 500 = $15,000
b)Conversion cost per unit produce = $ 59.999 per unit
number of units for conversion= 600
Conversion Cost applied for 600 units =( 600 x 59.999 = $35,999.4 rounded to $36,000
Total cost of goods complete per unit = $ 89.999 per unit
Number of units completed = 450 units
Total Cost of Goods completed = 450 x 89.999= $ 40,499.55 =$40,500
A) JOURNAL ENTRY For purchase of raw material for 500 units at $30
Accounts title Debit Credit
Raw and In process Inventory 15,000
Accounts Payable 15,000
B)JOURNAL ENTRY For applied conversion cost to in process inventory for 600 units at $59.999
Raw and in process inventory $36,000
Conversion Cost $36,000
C)JOURNAL ENTRY For completing 450 units at a total cost of $89.999
Finished Goods Inventory $ 40,500
Raw and in Process Inventory $ 40,500
LaQuesha Jackson has made a considerable fortune. She wishes to start a perpetual scholarship for engi- neering students at her school. The scholarship will provide a student with an annual stipend of $10,000 for each of 4 years (freshman through senior), plus an additional $5000 during the senior year to cover job search expenses. Assume that students graduate in 4 years, and the money is paid at the beginning of each year with the first award at the beginning of Year 1. The interest rate is 10%.
Required:
a. Determine the equivalent uniform annual cos (EUAC) of providing the scholarship.
b. How much money must LaQuesha donate?
Answer:
A) EUAC = 38625.09 / 3.4869 = 11077.354
B) $83225.79
Explanation:
A ) Determining the EUAC of providing the scholarship
EUAC = sum of present values / sum of present value factors
present value is calculated as ( p ) = year * present value factor
the present value factor for the various(4) years are : ( 1.000, 0.9091,0.8264,0.7513 ) = 3.4869
present value for the 4 years =( $10000 , $9,090.91, 8264.46, 11269.72 )
total = $38625.09
therefore EUAC = 38625.09 / 3.4869 = 11077.354
B ) THE MONEY LAQUESHA MUST DONATE
interest rate for perpetuity = 1.10 ^4 - 1
= 1.4641 -1 = 0.4641
therefore amount to be donated = total present value / interest rate for perpetuity
= 38625.09 / 0.4641 = $83225.79
Stella Corporation makes and sells electric fans. Each fan regularly sells for $42. The following cost data per fan is based on a full capacity of 150,000 fans produced each period:
Direct materials $ 8
Direct labor $ 9
Manufacturing overhead (70% variable and 30% unavoidable fixed) $10
A special order has been received by Stella Corp. for a sale of 25,000 fans to an overseas customer. The only selling costs that would be incurred on this order would be $4 per fan for shipping. Stella Corp. is now selling 120,000 fans through regular channels each period. What should Stella Corp. use as a minimum selling price per fan in negotiating a price for this special order?
a. $27 per fan
b. $24 per fan
c. $28 per fan
d. $31 per fan
Answer:
c. $28 per fan
Explanation:
Consider the Costs to provide for the Special Order. Exclude the fixed overheads as these are already absorbed in the current production activity of 120,000 fans.
As a minimal the Stella Corp. should be able to cover the variable costs resulting from the special offer calculated as below
Costs to provide for the special Order. per fan
Direct materials $ 8 .00
Direct labor $ 9.00
Manufacturing Overhead $10 × 70% $ 7.00
Shipping Costs $ 4.00
Total $28.00
Therefore, Stella Corp. should use $28.00 as a minimum selling price per fan in negotiating a price for this special order.
The following transactions apply to Ozark Sales for Year
1: The business was started when the company received $49,000 from the issue of common stock.
2. Purchased equipment inventory of $176,500 on account. Sold equipment for $203,000 cash (not including sales tax).
3. Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $128,000.
4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales.
5. Paid the sales tax to the state agency on $153,000 of the sales.
6. On September 1, Year 1, borrowed $20,000 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2.
7. Paid $5,500 for warranty repairs during the year.
8. Paid operating expenses of $53,500 for the year.
9. Paid $124,200 of accounts payable.
10. Recorded accrued interest on the note issued in transaction no. 6.
Required:
a. Prepare the journal entries for the above transactions and post them to the appropriate T-accounts.
b. Prepare the income statement, balance sheet, and statement of cash flows for 2016.
c. What is the total amount of current liabilities at December 31, 2016?
Answer:
Explanation:
Income Statement
Sales $ 203,000
Less: Cost of Goods Sold $-128,000
Gross Profit $ 75,000
Operating Expense $ 54,500
Warranty Expense ($203,000*4%) $ 8,120
Total Operating Expense $ -62,620
Operating Income $ 12,380
Add: Other income/gains
Interest Revenue $ 478
Net Income $ 12,858
Part b-2 Balance Sheet
Assets:
Cash $ 91,100
Inventory $ 47,000
Interest Receivable ($20,500*7%*4/12) $ 478
Total Assets $ 138,578
Liabilities:
Accounts Payable $ 49,100
Estimated Warranty $ 2,120
Sales Tax Payable $ 4,000
Note Payable $ 20,500
Total liabilities $ 75,720
Stockholder's Equity
Common Stock $ 50,000
Retained Earning $ 12,858
Total Stockholder's Equity $ 62,858
Total Liabilities and equity $ 138,578
Part b-2 Cash Flow
Cash flow from operating activities:
Cash from sales $ 219,240
Cash paid for repairs $ -6,000
Cash paid for operating expense $ -54,500
Cash paid for sales tax $ -12,240
Cash paid for purchases $-125,900
Total Cash flow from operating activities $ 20,600
Cash flow from Financing activities:
Issue of common stock $ 50,000
Borrowing from bank $ 20,500
Cash flow from financing activities $ 70,500
Net Increase/decrease $ 91,100
Command-and-control legislation, as compared to incentive-based regulation: Group of answer choices discourages the use of comparative advantage in the short run, but encourages the development of new technology in the long run. encourages the use of comparative advantage in the short run, and the development of new technology in the long run. discourages the use of comparative advantage in the short run, and discourages the development of new technology in the long run. encourages the use of comparative advantage in the short run, but discourages the development of new technology in the long run.
Answer:
discourages the use of comparative advantage in the short run, and discourages the development of new technology in the long run.
Explanation:
Control and command regulations are those that states the goals to be achieved and dictates steps to be taken to achieve these goals.
On the other hand incentive based regulations are those that focus on how to motivate employees to achieve organisational goals.
Because of lack of focus on employee buy in the control and command regulations are less effective in the short run and also in the long run. So it discourages the use of comparative advantage in the short run, and discourages the development of new technology in the long run
Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years: Used from book Currently the manufacturer has seven machines that operate on a two-shift (eight hours each) basis. Twenty days per year are available for scheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 30 minutes to produce. a. What is the capacity of the factory
Answer:
51,520 units
Explanation:
a. The computation of the capacity of the factory is shown below:
Capacity of the factory = (Number of workdays in a year - number of given days) × number of hours × number of shifts × number of machines × basis
= (250 days - 20 days) × 8 hours × 2 shifts × 7 × 2
= 51,520 units
We simply applied the above formula to determine the capacity of the factory
Based on the information given the capacity of the factory is 51,250 units.
a. Capacity in units
First step is to calculate capacity in machine hours
Capacity in machine hours = Number of workdays × Number of shifts per day× Number hours per shifts × Number of machines
Let plug in the formula
Capacity in machine hours= (250 days - 20 days) × 2 shifts × 8 hours × 7
Capacity in machine hours=230 days× 2 shifts × 8 hours × 7
Capacity in machine hours=25,760 machine hours
Second step is to calculate the capacity in units
Capacity in units=Capacity in machine hours×2 units per hour
Capacity in units=25,760 machine hours×2 units per hour
Capacity in units=51,520 units
b. Capacity level for the next five year
Year Forecast demand × Capacity= Ratio
1 60,000/51,520=1.16
2 79,000/51,520=1.53
3 81,000/51,520=1.57
4 84,000/51,520=1.63
5 84,000/51,520=1.63
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The analysis phase of decision making includes___________. Qualitative analysis is based primarily on__________ and decision-making effectiveness is usually increased by________. Quantitative analysis is based primarily____________ on and skills in this approach are usually increased by_______________ .
Answer: Please refer to Explanation
Explanation:
The attached photo contains the complete question as well as some options.
1. Both qualitative and quantitative analysis.
The analysis phase includes both of these types of analysis to provide a complete view of a variable from both a numbers and an experience perspective.
2. Judgement, experience, and intuition.
Qualitative Analysis is usually based on these 3 as numbers are not necessarily used.
3. Experience.
The more you are faced with analysing Qualitative data, the more the get used to it and better at it.
4. quantitative facts, data, and mathematical expressions.
Quantitative Analysis is done on mathematical instruments such as facts,data and expressions to provide a more mathematical driven approach to analysis.
5. Studying.
The more you study Quantitative Data and it's methods of analysis, the better you get at it because you begin to see patterns as well as use better analytic tools.
Answer:
i). Both qualitative and quantitative analysis.
ii). Judgement, experience and intuition.
iii). Experience.
iv). Quantitative facts, data and mathematical expressions.
v). Studying.
Explanation:
After this study above, it was easily gathered that quantitative analysis is often associated with numerical analysis where data is collected, classified, and then computed for certain findings using a set of statistical methods. Data is chosen randomly in large samples and then analyzed. The advantage of quantitative analysis the findings can be applied in a general population using research patterns developed in the sample while qualitative analysis is concerned with the analysis of data that cannot be quantified. This type of data is about the understanding and insights into the properties and attributes of objects (participants). Qualitative analysis can get a deeper understanding of “why” a certain phenomenon occurs.
A company manufactures various sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $67 per unit (100 bottles), including fixed costs of $22 per unit. A proposal is offered to purchase small bottles from an outside source for $35 per unit, plus $5 per unit for freight. Prepare a differential analysis dated March 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles, assuming that fixed costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Answer:
The company should buy from an outside source rahter than manufacturing because each bottle manufactured costs $5 more.
Explanation:
Differential Analysis
Make Buy
Manufacturing Cost per bottle $ 67
Purchasing Cost per bottle $35
Freight per bottle $ 5
Fixed Costs $ 22
Total $ 67 $62
The company should buy the bottles from the outside source because the manufacturing costs are higher than the purchasing costs and the fixed costs.
The fixed costs are the irrelevant costs that will continue whether bottles are manufactured or purchased.
what us investing for
Answer: Investing is a way of making money by putting money towards it.
Explanation: When you invest your money in a stock, you can make more money back within the future.
On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows: Accumulated Depreciation—Building $747,950 Merchandise Inventory $939,850 Administrative Expenses 545,700 Notes Payable 240,200 Building 2,416,650 Office Supplies 20,650 Cash 180,250 Salaries Payable 7,700 Cost of Merchandise Sold 3,965,850 Sales 6,126,850 Interest Expense 9,550 Selling Expenses 717,650 Kathy Melman, Capital 1,545,600 Store Supplies 87,000 Kathy Melman, Drawing 181,750 a. Prepare a multiple-step income statement for the year ended March 31, 2019. Racine Furnishings Company Income Statement For the Year Ended March 31, 2019
Answer:
Net Income $66100
Explanation:
Racine Furnishings Company
Multi Step Income Statement
For the Year Ended March 31, 2019
Sales 6,126,850
Cost of Merchandise Sold 3,965,850
Gross Profit 2161000
Less Operating Expenses
Depreciation $747,950
Supplies Expense ( 87000- 20650) 66350
Salaries Expense 7,700
Selling Expenses 717,650
Administrative Expenses 545,700
Operating Income 75,650
Other Expenses
Interest Expense 9,550
Net Income $66100
From the sales cost of merchandise sold is subtracted to get the gross profit. The operating expenses are subtracted from the gross profit to get the operating income. Other expenses such as interest expense is subtracted to get the net income.
A football game between the Thunder and the Sharks is in its closing minutes, with the Thunder ahead by 20 points. The Thunder’s coach considers sending in the second-string quarterback. This would reduce the risk of the star quarterback getting injured, but the second-string quarterback is not very good. Complete the passage describing the coach’s decision in economic terms.
1. Fill in the blanks with appropriate option.
The coach is weighing a slightly ___________ risk of losing against a slightly decreased risk of injury to the star quarterback. This weighing of ________ is an example of ___________, because the star quarterback was in for most of the game, and the coach's decision concerns ____________ shifts in probabilities with the game nearly over
Options:
A) decreased *
B) large
C) marginal thinking.
D) small
E) increased
F) incentives
G) trade-offs
Answer: increased, trade- offs, marginal thinking, small.
Explanation:
According to the passage, The coach is weighing a slightly increased risk of losing against a slightly decreased risk of injury to the star quarterback. This weighing of trade-offs is an example of marginal thinking, because the star quarterback was in for most of the game, and the coach's decision concerns small shifts in probabilities with the game nearly over.
The coach is weighing a slightly increased risk of losing against a slightly decreased risk of injury to the star quarterback. This weighing of trade- offs is an example of marginal thinking because the star quarterback was in for most of the game, and the coach's decision concerns small shifts in probabilities with the game nearly over.
The increase in risk implies the chances of return of positive gain is less but the gain would be higher than less risky opportunities.
Trade-offs situations represent the increase of one variable but with fall in other variable values. Thus, the coach is making a trade-off between the risk of losing and the risk of injury.
Marginal thinking implies a comparison of benefits and costs when one more unit is added for optimal decision.
The shift in probabilities refers to small variations made in chances of winning by stimulation the strategy to get better outcomes.
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angaroo inc is a U.S. company whose shares are listed on and freely traded on the New York stock exchange. Let ???????? be the price of Kangaroo inc shares in dollars, at time ???? (measured in years). Time zero is today.You are (still) the Global Head of Equity Options trading at Goldman Sachs. You are approached by a hedge fund that today wants to buy a security (called a SQUARED DIFFERENCE contract) that has the following features:The SQUARED DIFFERENCE security has a maturity of one year.At maturity, the SQUARED DIFFERENCE security pays an amount in dollars equal to the amount(????????)????????(????????)???? (????????)????Here, ???????? and ???????? are, respectively, the Kangaroo inc share price one year from now and the share price today.Assume that the risk-free interest rate is zero per cent and that Kangaroo inc shares pay no dividends. Assume that the share price, in dollars, today is ???????? = 1.Using Excel, build a four-step binomial tree (this means each time step corresponds to three months). (Hint: It is the same idea as we did in classes and assignments but whereas, before, we had one, two or three steps, now you will have four binomial steps).Assume the absence of arbitrage throughout and assume that there are no transactions costs.a) Assume (to begin with) that the volatility of Kangaroo inc shares is ????????. Using your binomial tree, what is the price today of this SQUARED DIFFERENCE security? (???? marks)b) Still assuming the volatility of Kangaroo inc shares is ????????, and using the binomial tree, what is the delta hedge at each step. To answer this, do a screen-shot (Control-C then Control V on a pc) of the delta hedges. Do you see a pattern in the delta hedges? What is it? (???? marks)c) Now assume instead that the volatility of Kangaroo inc shares is ????????. What is the price today of this SQUARED DIFFERENCE security? (???? mark)d) Now assume instead that the volatility of Kangaroo inc shares is ????????, then ????????, then ????????, then finally ???????????? (skip ????, ????, ???? and ???????? - you will (hopefully) already see a pattern emerging).For each case, what is the price today of this SQUARED DIFFERENCE security? (Hint: If you do this in excel in an efficient manner, this can be done very rapidly). (???? marks)Give your answers to parts (a), (c) and (d) (in dollars) by filling out the table below (replacing x.yyyyyyy) giving every answer to ???? decimal places (you will see that the answers are quite small so that is why I am asking for ???? decimal places but this is no hassle - decimal places are "free" in excel since excel allows you to format up to ???????? decimal places – Google this formatting feature if you have not seen it before):e) What is the pattern of prices? (A graph might be helpful here but is not obligatory). For example, could you guess (with a slight approximation – not to ???? decimal places! - by doing the calculations in your head) what the price would be if the volatility were, for example, to be ????.???????? or ????????? How are you able to guess? In one or two brief sentences, what is the pattern? (???? marks)Hint: When you examine the payoff of this SQUARED DIFFERENCE security (i.e., in equation (*)), does the pattern of prices look intuitive? Why?P.S. Don’t worry about the seemingly small prices. If a bank or hedge fund wanted to actually trade a security like this, they would actually trade, for example, ten million times the security that I have described and then all the answers would just get scaled up by this same constant amount.
Stubs-R-Us is a local event ticket broker. Last year, the company sold 750,000 tickets with an average commission of $10. Because of the general economic climate, Stubs expects ticket volume to decline by 20 percent. In addition, employees at a local insurance company headquarters accounted for 8 percent of Stubs’ volume. The headquarters relocated to another state and all the employees closed their accounts.
Offsetting these factors is the observation that the average commission per sale is likely to increase by 13 percent because the average ticket prices are expected to be larger in the coming year.
Required:
Estimate commission revenues for Stubs-R-Us for the coming year.
Answer:
$6,237,600
Explanation:
The computation of Estimate commission revenues is shown below:-
In the Coming year the market volume = 100% - 20%
= 80%
In the Coming year the number of sales = 100% - 8%
= 92%
In the coming year the Average commission per trade = 100% + 13%
= 113%
Commission revenue = Sold tickets × Average commission × In the Coming year the market volume × In the Coming year the number of sales × In the coming year the Average commission per trade
= 750,000 × $10 × 0.80 × 0.92 × 1.13
= $6,237,600
We applied the same formula to find out the commission revenue earned by the company
Economic expansion throughout the rest of the world raises the world interest rate. Use the Mundell–Fleming model to illustrate graphically the impact of an increase in the world interest rate on the exchange rate and level of output in a small open economy with a floating-exchange- rate system.
Be sure to label: i. the axes; ii. the curves; iii. the initial equilibrium levels; iv. the direction the curves shift; and v. the new short-run equilibrium.
Answer: The answer is provided below
Explanation:
The fiscal expansion in the rest of the world will lead to an increase in the world interest rate and a decrease in the domestic investment.
As a result, a rise in the world interest rate will lead to an increase in the national income and also lower the nominal exchange rate.
The diagram has been attached.
Lahdekorpi OY, a Finnish corporation, owns 100 percent of Three- O Company, a subsidiary incorporated in the United States. Required: Given the limited information provided, (a) determine the best transfer pricing method ___________________________________ and (b) the appropriate transfer price $____________ in the following situation: Lahdekorpi manufacturers wooden puzzles at a cost of $2 each and sells them to Three- O Company for distribution in the United States. Other Finnish puzzle manufacturers sell their product to unrelated customers and normally earn a gross profit equal to 50 percent of the production cost.
Answer:
Lahdekorpi OY, a Finnish corporation and Three-O Company, a subsidiary incorporated in the United States
Transfer Pricing:
a) The best transfer pricing method in this case is the cost plus method. This gives the transfer price as Cost + 50%.
b) The appropriate transfer price should be $3 ($2 x 1.5).
Explanation:
Transfer pricing arises when controlled entities set prices for exchange of goods and services. When Lahdekorpi OY, a Finnish corporation, sells wooden puzzles to Three-O Company, given their relationship, transfer pricing has arisen. It is the assignment of cost for goods and services exchanged between related parties, like a parent and a subsidiary.
There are many Transfer Pricing methods which entities and the taxing authorities can use to determine the best transfer price. According to the Organisation for Economic Co-operation and Development (OECD) Multinational Entities and tax authorities can use any of these five main transfer pricing methods:
a) Comparable uncontrolled price (CUP) method. The CUP method is grouped by the OECD as a traditional transaction method (as opposed to a transactional profit method)
b) Resale price method
c) Cost plus method
d) Transactional net margin method (TNMM)
e) Transactional profit split method.
A company that produced 1,000 units and sold 800 units had the following costs:
Direct materials $150,000
Factory building and equipment depreciation $250,000
Sales salaries $130,000
Office building and equipment depreciation $170,000
Office salaries $200,000
Factory insurance, utilities, etc. $300,000
Factory wages $100,000
Office insurance, utilities, etc. $140,000
Total product cost is:
A. $800,000
B. $580,000
C. $640,000
D. $1,440,000
Answer:
Option A,$800,000 is the correct option
Explanation:
Total product cost includes the direct material costs.direct labor costs as well as the manufacturing overhead.
The product costs only include costs incurred directly or indirectly in order to produce the products.
product costs=direct materials+factory building and equipment depreciation+factory insurance,utilities e.t.c+factory wages=$150,000+$250,000+$300,000+100,000=$800,000
Producers' surplus is __________.
O the difference between the price a seller receives for a good and the price a buyer pays for the good.
O equal to price times quantity sold.
O equal to the seller's minimum price and the buyer's maximum price.
O the difference between the price a seller receives for a good and the minimum price for which he would have sold the good.
O the difference between the price a buyer pays for a good and the highest price he would have paid for the good.
Answer:
the difference between the price a seller receives for a good and the minimum price for which he would have sold the good.
Explanation:
Producer surplus is the difference between the price a seller sells her goods and the least price she would be willing to sell her goods.
Consumer surplus is the difference between the price a buyer pays for a good and the highest price he would have paid for the good.
I hope my answer helps you
a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $80,000 in cash along with equipment having a $40,000 value
b. On May 21, Elegant Lawns purchases office supplies on credit for $480.
c. On May 25, Elegant Lawns receives $8,800 cash for performing landscaping services
d. On May 30. Elegant Lawns receives $2,000 cash in advance of providing landscaping services to a customer
For each transaction, (1 analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. Use the following (partial) chart of accounts-account numbers parentheses: Cash (101); Accounts Receivable (106): Office Supplies (124): Trucks (153): Equipment (167), Accounts Payable (201 Unearned Landscaping Revenue (236) D. Tyler. Capital (301), D. Tyler, Withdrawals (302; Landscaping Revenue (403), Wages Expense (601), and Landscaping Expense (696)
Answer:
Elegant Lawns Company
1) Analysis of Transactions using the Accounting Equation:
Assets = Liabilities + Equity:
a) Assets (Cash $80,000) and (Equipment $40,000) increased = Liabilities + Equity ($120,000) increased.
b) Assets (Supplies $480) increased = Liabilities (Accounts Payable $480) increased + Equity
c) Assets (Cash $8,800) increased = Liabilities + Equity (Retained Earnings $8,800) increased
d) Assets (CVash $2,000) increased = Liabilities (Deferred Revenue $2,000) increased + Equity
2) Journal Entries:
Debit Credit
a) Cash $80,000
Equipment $40,000
Equity $120,000
To record equity in cash and equipment
b) Office Supplies $480
Accounts Payable $480
To record purchase of office supplies on credit
c) Cash $8,800
Revenue $8,800
To record cash receipts from customers
d) Cash $2,000
Deferred Revenue $2,000
To record cash receipt in advance for services to a customer
3) T-Accounts Ledger:
Cash Account
Debit ($) Credit ($)
a) Equity 80,000 Balance c/d 90,800
c) Revenue 8,800
d) Deferred Revenue 2,000 00000
90,800 90,800
Balance b/d 90,800
Equipment Account
Debit ($) Credit ($)
a) Equity 40,000
Equity Account
Debit ($) Credit ($)
Balance c/d 120,000 a) Cash 80,000
000000 a) Equipment 40,000
120,000 120,000
Balance b/d 120,000
Office Supplies Account
Debit ($) Credit ($)
b) Accounts Payable 480
Accounts Payable Account
Debit ($) Credit ($)
b) Office Supplies 480
Revenue Account
Debit ($) Credit ($)
c) Cash 8,800
Deferred Revenue Account
Debit ($) Credit ($)
d) Cash 2,000
Explanation:
a) The accounting equation states that Assets are equal to Liabilities plus Equity for every given business transaction. Each transaction affects either the two sides of the equation equally or increases and decreases one side only. This equation means that the two sides must be in balance given any transaction. For example, the purchase of goods on credit will increase Inventory and increase Liabilities by the same amount.
b) Journal Entries are used to initially record or recognize business transactions. The entries show which accounts will be debited and which will be credited in the Ledger.
c) T-Accounts is accounting tool which shows the ledger account to be debited and credited and to balance the account at the end of a period. It is from the ledger that a trial balance is extracted before adjustments are made for the preparation of financial statements.
The Counting Crows Company uses standard costing. During 2018, 12,000 pounds of direct material were purchased at an average cost of $5.20 per pound. Also during 2018, 10,500 pounds of direct material were used to produce 5,000 units. For 2018, the standards for direct materials were 2 pounds per unit at $5.50 per pound. Compute the direct materials quantity variance for 2018. A. $3,600 unfavorable B. $2,750 unfavorable C. $3,600 favorable D. $3,150 favorable E. No choices are correct
Answer:
Direct material quantity variance= $2,750 unfavorable
Explanation:
Giving the following information:
Also during 2018, 10,500 pounds of direct material was used to produce 5,000 units. For 2018, the standards for direct materials were 2 pounds per unit at $5.50 per pound.
To calculate the direct material quantity variance, we need to use the following formula:
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (2*5,000 - 10,500)*5.5
Direct material quantity variance= $2,750 unfavorable
Bergamo Bay's computer system generated the following trial balance on December 31, 2017. The company's manager knows something is wrong with the trial balance because it does not show any balance for Work in Process Inventory but does show a balance for the Factory Overhead account. In addition, the accrued factory payroll (Factory Payroll Payable) has not been recorded.
Debit Credit
Cash $66,000
Accounts receivable 44,000
Raw materials inventory 27,000
Work in process inventory 0
Finished goods inventory 9,000
Prepaid rent 3,000
Accounts payable $9,900
Notes payable 12,900
Common stock 30,000
Retained earnings 82,000
Sales 182,200
Cost of goods sold 102,000
Factory overhead 25,000
Operating expenses 41,000
Totals $317,000 $317,000
After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date.
Materials requisition 21-3010: $4,300direct materials to Job 402
Materials requisition 21-3011: $7,300direct materials to Job 404
Materials requisition 21-3012: $1,800indirect materials
Labor time ticket 6052: $7,000direct labor to Job 402
Labor time ticket 6053: $5,000direct labor to Job 404
Labor time ticket 6054: $4,000indirect labor
Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 150% of direct labor cost.
Prepare a revised trial balance
Prepare a balance sheet as of December 31, 2017.
Prepare an income statement for 2017
Answer:
Bergamo Bay's Computer System
a) Revised Trial Balance on December 31, 2017:
Debit Credit
Cash $32,000
Accounts receivable 44,000
Raw materials inventory 13,600
Work in process inventory 47,400
Finished goods inventory 9,000
Prepaid rent 3,000
Accounts payable $9,900
Notes payable 12,900
Common stock 30,000
Retained earnings 82,000
Sales 182,200
Cost of goods sold 102,000
Factory overhead 25,000
Operating expenses 41,000
Totals $317,000 $317,000
b) Balance Sheet as of December 31, 2017:
Assets:
Cash $32,000
Accounts receivable 44,000
Raw materials inventory 13,600
Work in process inventory 47,400
Finished goods inventory 9,000
Prepaid rent 3,000
$149,000
Accounts payable $9,900
Notes payable 12,900
Common stock 30,000
Retained earnings 96,200
$149,000
c) Income Statement for 2017:
Sales $182,200
less Cost of Goods Sold 102,000
less Factory Overhead 25,000 127,000
Gross Profit 55,200
Less Operating Expenses 41,000
Net Income 14,200
Explanation:
a) Prepared Trial Balance on December 31, 2017:
Debit Credit
Cash $66,000
Accounts receivable 44,000
Raw materials inventory 27,000
Work in process inventory 0
Finished goods inventory 9,000
Prepaid rent 3,000
Accounts payable $9,900
Notes payable 12,900
Common stock 30,000
Retained earnings 82,000
Sales 182,200
Cost of goods sold 102,000
Factory overhead 25,000
Operating expenses 41,000
Totals $317,000 $317,000
b) Raw Materials Inventory
As per Trial Balance $27,000
less Job 402 materials (4,300)
less Job 404 materials (7,300)
less indirect materials (1,800)
Adjusted Raw Materials Inventory $13,600
c) Work in Process:
As per Trial Balance $0
add Job 402 materials 4,300
add Job 404 materials 7,300
add indirect materials 1,800
add Job 402 labor 7,000
add Job 404 labor 5,000
add indirect labor 4,000
Work in Process Overhead 18,000
Adjusted Work in Process $47,400
d) Cash Balance:
As per Trial Balance $66,000
Work in Process Labor (16,000)
Work in Process Overhead (18,000)
Adjusted Cash balance $32,000
e) Retained Earnings
Opening Balance $82,000
add Net Income 14,200
Ending Balance $96,200
In the summer of 2008, at Heathrow airport in London, Bestofthebest (BB), a private company, offered a lottery to win a Ferrari or 90,000 British pounds, equivalent at the time to about $180,000. Both the Ferrari and the money, in 100 pound notes, were on display. If the U.K. interest rate was 5% per year, and the dollar interest rate was 2% per year (EARs), how much did it cost the company in dollars each month to keep the cash on display? That is, what was the opportunity cost of keeping it on display rather than in a bank account? (Ignore taxes.)
Answer:
The cost for the company is 375 pounds.
Explanation:
In order to calculate how much did it cost the company in dollars each month to keep the cash on display we would have to make the following calculations:
Current exchanage rate between Pound and dollar = $180,000 / 90,000 pound
= $2 per pound.
Total amount in Display = $180,000
Interest rate in USA = 2%
Monthly cost = $180,000 × 2% / 12
= $3300
Monthly opportunity cost of keeping it on display rather than in a bank account is $300.
Monthly Cost in term of pound = 90,000 × 5% / 12
= 375 Pound.
Monthly cost in term of pound is 375 pound.
MVS, Inc. produces cleaning equipment, and operates several divisions. Division A produces a product that it sells to other companies for $25 per unit. It is currently operating at full capacity of 60,000 units per year. Variable manufacturing cost is $13 per unit, and variable marketing cost is $3 per unit.
The company wishes to create a new division, Division B, to produce an innovative new tool that requires the use of Division A's product (or one very similar). Division B will produce 20,000 units. Division B can purchase a product equivalent to Division A's from Company X for $18 per unit. However, MVS, Inc. is considering having Division A supply Division B with the product.
If Division A supplies Division B, the transfer price would be $16 and there would be no marketing costs associated with the units.
Required:
a) From Division A's perspective the net benefit (cost) is ___________.
Answer:
Net cost = $(120,000)
Explanation:
Division A is already operating at full capacity. This implies that it can sell all (60,000 units)l that it can produce. To preserve it current level of profit, any units sold to Division B would profitable provided it generates the same of amount of contribution currently earned.
Contribution earned from external sales = 25 - (13+3)= $9
Contribution earned from internal sales = 16- 13 = $3
Note that the variable market cost is not included in computing the contribution earned from internal sales because there wont be marketing cost.
Lost in contribution per unit from internal sales = $9- $3 = $6
Total loss = $6× 20,000 =($120,000).
Net cost = $120,000
M2 includes M1 plus: A) checking account deposits, large-denomination time deposits, and noninstitutional money market fund shares. B) currency in circulation, checking account deposits in banks, and holdings of traveler's checks. C) currency in circulation, savings account balances, and small-denomination time deposits. D) savings account balances, money market deposit accounts in banks, small-denomination time deposits, and noninstitutional money market fund shares.
Answer:
D) savings account balances, money market deposit accounts in banks, small-denomination time deposits, and noninstitutional money market fund shares.
Explanation:
M1 includes money in circulation, travellers check, money in checking accounts and money deposited in the banks.
M2 includes m1 + savings accounts, small time deposits, and money markets.
M1 is thenarrow definition of money. M2 is the broader definition of money .
I hope my answer helps you
The correct option is D.
D) savings account balances, money market deposit accounts in banks, small-denomination time deposits, and noninstitutional money market fund shares.
The following information should be considered:
M1 includes money in circulation, travellers check, money in checking accounts and money deposited in the banks. M2 includes m1 + savings accounts, small time deposits, and money markets.
Therefore we can say that M1 is the narrow definition of money while on the other hand M2 is the broader definition of money.
Learn more: brainly.com/question/17429689
Thrifty Co. reported net income of $573,650 for its fiscal year ended January 31, 2020. At the beginning of that fiscal year, 100,000 shares of common stock were outstanding. On October 31, 2019, an additional 30,000 shares were issued. No other changes in common shares outstanding occurred during the year. Also during the year, the company paid the annual dividend on the 40,000 shares of 6%, $50 par value preferred stock that were outstanding the entire year.
Required:
a. Calculate basic earnings per share of common stock for year ended January 31, 2020.
b. If Thrifty Co.’s preferred stock were convertible into common stock, what additional calculation would be required?
Answer:
a. The basic earnings per share of common stock for year ended January 31, 2020 is $3.56 per share
b. If Thrifty Co.’s preferred stock were convertible into common stock, it would be required to calculate Dluted EPS.
Explanation:
a. In order to calculate the BEPS we would have to use the following formula:
BEPS = Net income available to common stockholders / Weighted Avg. no. of common stock
Net income available to common stockholders=$573,650
Weighted Avg. no. of common stock = 100,000 + (30,000 x 3/12)
Weighted Avg. no. of common stock = 107,500
BEPS = Net income available to common stockholders / Weighted Avg. no. of common stock
BEPS = $573,650 / 107,500
BEPS= $3.56 per share
b. If Thrifty Co.’s preferred stock were convertible into common stock, it would be required to calculate Dluted EPS.
Branford Inc. reported the following results from the sale of 24,000 units of SR-90:
Sales $ 542,000
Variable manufacturing costs 240,000
Fixed manufacturing costs 144,000
Variable selling costs 53,800
Fixed administrative costs 35,700
Elkhorn Company has offered to purchase 3,400 SR-90s at $15 each. Branford has available capacity, and the president is in favor of accepting the order. The president feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because the "full cost" of production is $16. Which of the following correctly notes the change in income if the special order is accepted?
a. $10,200 increase.b. $3,400 increase.c. $3,400 decrease.d. None of the answers is correct.e. $10,200 decrease.
Answer:
d. None of the answers is correct
$17,000 increase
Explanation:
As per the given question the solution is provided below:-
For reaching the change in income if the special order is accepted we need to follow some steps which are as follows:-
Step 1
Variable manufacturing cost per unit = Variable manufacturing costs ÷ Sale units
= $240,000 ÷ 24,000
= $10
Step 2
Cost related with special order = Number of units × Variable manufacturing cost per unit
= 3,400 × $10
= $34,000
Step 3
Income from special order = Number of units × Selling price
= 3,400 × $15
= $51,000
Therefore the Change in income if special order is accepted = Income from special order- Cost related with special order
= $51,000 - $34,000
= $17,000 increase
d. None of the answers is correct the right answer is $17,000 increase.
To reach the change in income if special order is accepted we simply put the values into formula.
A company owns an empty office building and is deciding how to use it next year. It would cost $100,000 to staff the office and $15,000 for equipment. The revenues would be $160,000. Meanwhile, it could rent the office to another company for $75,000 in revenues. In both cases, the company must pay $5,000 for the building's electricity.
Required:
a) If the company is seeking to maximize its economic profit, which course should it pursue and what is the outcome?
Answer:
It is more profitable to rent the office. Income will increase by $30,000
Explanation:
Giving the following information:
It would cost $100,000 to staff the office and $15,000 for equipment. The revenues would be $160,000.
Rent= $75,000 in revenues.
We need to calculate the most profitable decision:
Option A:
Income= 160,000 - 100,000 - 15,000= 45,000
Option B:
Rent= 75,000
It is more profitable to rent the office.
Hopkins Co. at the end of 2017, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $3,000,000 Estimated litigation expense 4,000,000 Extra depreciation for taxes (6,000,000) Taxable income $ 1,000,000 The estimated litigation expense of $4,000,000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2,000,000 in each of the next three years. The income tax rate is 30% for all years. The deferred tax asset to be recognized is
Answer:
The deferred tax asset to be recognized is $300,000
Explanation:
In order to calculate the deferred tax asset to be recognized we would have to make the following calculation with the following formula according to the given data:
Income tax payable = Taxable income*Tax rate
Therefore, Income tax payable=$1,000,000*30%
Income tax payable = $300,000
The deferred tax asset to be recognized is $300,000
Yurman Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance of $960,000 at December 31, 2016 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $240,000 at December 31, 2016. Outstanding service contracts at December 31, 2016 expire as follows: During 2017 During 2018 During 2019 $200,000 $320,000 $140,000 What amount should be reported as unearned service contract revenues in Yurman's December 31, 2016 balance sheet
Answer:
$660,000
Explanation:
Relevant data provided
During 2017 = $200,000
During 2018 = $320,000
During 2019 = $140,000
As per the given question the solution of Amount to be reported as unearned service contract revenues is provided below:-
Amount to be reported = During 2017 + During 2018 + During 2019
= $200,000 + $320,000 + $140,000
= $660,000
To reach amount to be reported as unearned service contract revenues we simply put the values into formula.
Listmann Corp. processes four different products that can either be sold as is or processed further. Listed below are sales and additional cost data:
Product Sales Value without Processing Additional Costs Sales Value after processing
Premier $1,350 $900 $2,700
Deluxe 450 225 630
Super 900 450 1,800
Basic 90 45 180
Which product(s) should not be processed further?
Answer:
The product Deluxe sgould not be processed further.
Explanation:
Giving the following information:
Sales - Value without Processing - Additional Costs - Sales Value after processing
Premier: $1,350 - $900 - $2,700
Deluxe: 450 - 225 - 630
Super: 900 - 450 - 1,800
Basic: 90 - 45 - 180
We need to calculate the contribution margin of each product before and after processing.
Premier:
Before= 1,350
After= 2,700 - 900= $1,800
It is more profitable to continue processing.
Deluxe:
Before= 450
After= 630 - 225= $405
It is more profitable to sell before processing.
Super:
Before= 900
After= 1,800 - 450= $1,350
It is more profitable to continue processing.
Basic:
Before= 90
After= 180 - 45= 135
It is more profitable to continue processing.
A parking lot charges $2 per hour for the first 4 hours, then $3 per hour after that. Which equation(s) describes the total cost y as a function of the hours x?
Answer:
there are no options but i would say it’s probably close to y= 8 + 3x