Answer and Explanation:
As per the data given in the question,
For Situation 1 :
a) Since US products will not have duty, Consumer will purchase from US>
b) If there is NAFTA, now the tax on China is higher at $5 which make them inappropriate, therefore consumer would like to purchase from Mexico at $6.
c) As country would be misleadingly separating against different items which will cause to increase wastefulness, So US consumers and the country as a whole is not happy with NAFTA.
For Situation 2 :
d) Consumers would like to purchase from China even with $3 duty cost is less, and total cost with tax is $7.
e) Consumer will purchase form Mexico as there is no levy and they can supply for $6.
f) Free trade agreements are critical to guarantee that exchange takes place absent a lot of taxes, it is necessary to advance directly commerce with NAFTA area for fate of US, Mexico would purchase measures of merchandise from US therefore this agreement should be invited for sure.
What can be a cost of opening a basic checking account?
high interest rates
penalties for early withdrawal
check writing limits
high fees
Answer: High Fees
Explanation:
Checking accounts are very useful to the common person because of the liquidity they offer. With a Checking account, you are able to make withdrawals whenever you want by way of checks or ATM cards as many times as you want. Electronic transfers are available and depositing is quite simple.
In exchange for this high Liquidity though, the account receives low interest and can be subject to quite a number of fees.
Depending on the bank there are different fees attached with some of the most common being, Card processing fees, electronic and mobile banking fees, Overdraft fees, Maintenance fees and sometimes even a fee for letting the account drop below a minimum value.
The CORRECT ANSWER is "check writing limits" I just took the test:) Hope this helps
The following transactions occur for the Panther Detective Agency during the month of July:
a. Purchase a truck and sign a note payable, $15,000.
b. Purchase office supplies for cash, $600.
c. Pay $800 in rent for the current month.
Required:
1. Record the transactions. The company uses the following accounts: Cash, Supplies, Equipment (for the truck), Notes Payable, and Rent Expense. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
a.
Dr Equipment $15,000
Cr Notes payable $15,000
b.
Dr Supplies $600
Cr Cash $600
c.
Dr Rent expense $800
Cr Cash $800
Explanation:
Panther Detective Agency Journal entry
a.
Dr Equipment $15,000
Cr Notes payable $15,000
b.
Dr Supplies $600
Cr Cash $600
c.
Dr Rent expense $800
Cr Cash $800
Answer:
Panther Detective Agency
Journal Entries:
a) Debit Equipment Account $15,000
Credit Notes Payable $15,000
To record purchase of truck with a note.
b) Debit Supplies Account $600
Credit Cash Account $600
To record purchase of office supplies for cash.
c) Debit Rent Expense $800
Credit Cash Account $800
To record payment of rent for the current month.
Explanation:
a) The purchase of a truck increases the Equipment Account and the Notes Payable Account by $15,000.
b) Payment for office supplies reduces the Cash Account and increases the Supplies Account by $600.
c) The payment for rent for the current month increases the Rent Expense Account and reduces the Cash Account by $800.
d) The use of journal entries is to record business transactions as they occur. It makes it easier to know which account will be credited and which to be debited in the Ledger.
Atkinson Construction assembles residential houses. It uses a job-costing system with two direct-cost categories (direct materials and direct labor) and one indirect-cost pool (assembly support). Direct labor-hours is the allocation base for assembly support costs. In December 2016, Atkinson budgets 2017 assembly-support costs to be $8,800,000 and 2017 direct labor-hours to be 220,000.
At the end of 2017, Atkinson is comparing the costs of several jobs that were started and completed in 2017.
Laguna Model Mission Mode
Construction period Feb-June 2017 May-0ct 2017
Direct material costs $106,550 $127,450
Direct labor costs $36,250 $41,130
Direct labor-hours 970 1,000
Direct materials and direct labor are paid for on a contract basis. The costs of each are known when direct materials are used or when direct labor-hours are worked. The 2017 actual assembly-support costs were $8,400,000, and the actual direct labor-hours were 200,000.
Required:
1. Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they differ?
2. What are the job costs of the Laguna Model and the Mission Model using (a) normal costing and (b) actual costing?
3. Why might Atkinson Construction prefer normal costing over actual costing?
Answer:
Explanation:
Normal costing Actual costing
Assembly support cost $8,800,000 $8,400,000
Direct labor hours 220,000 200,000
Indirect Cost Rate $40 per DLH $42 per DLH
2.
Normal Costing Laguna Model Mission Model
Construction period Feb-June 2017 May-0ct 2017
Direct material costs $106,550 $127,450
Direct labor costs $ 36,250 $41,130
Direct labor-hours 970 1,000
Assmebly support cost $38,800
($40 x 970) $40,000
Total job cost $181,600 $208,580
Actual Costing Laguna Model Mission Model
Construction period Feb-June 2017 May-0ct 2017
Direct material costs $106,550 $127,450
Direct labor costs $ 36,250 $41,130
Direct labor-hours 970 1,000
Assmebly support cost $40,740
($42 x 970) $42,000
Total job cost $183,540 $210,580
Companies now do prefer normal costing than the actual costing, reasons are that the overhead rates are been known from the beginning of the year which is important for giving price estimates and checking the profitability of jobs.
Based on the following information: Assume that Forrest Company uses the LIFO accounting method. In year X1, Forrest reported the following information:
Units Unit Cost Total Cost
Beginning Inventory (1/1/X1) 1,000 10 10,000
Purchases (year X1) 2,000 11 22,000
Year X1 Sales 1,500
Ending Inventory (12/31/X1) 1,500
Based on the above information, Forrest Company will report which of the following amounts for its LIFO Inventory on 12/31/X1?
a. $15,500
b. $16,000
c. $16,500
d. none of the above.
Answer:
a. $15,500
Explanation:
Based on LIFO, cost of 1500 unit sold will be entirely from the Purchases (year X1). Therefore, we have:
Value of units purchases (year X1) outstanding after sales = (2,000 - 1,500) * $11 = 500 * $11 = $5,500
Therefore, we have
LIFO Inventory on 12/31/X1 = Value of beginning Inventory (1/1/X1) + $5,500 = $10,000 + $5,500 = $15,500.
What is implied by the fact that in today’s marketplace, the volume of world trade has been growing faster than world GDP? more companies are relying on domestic firms to obtain parts of their production process the economies of the world’s nation-states are becoming less intertwined more companies are dispersing parts of their production process to locations around the globe the world has experienced a loss of overall wealth in the last two decades more countries are imposing trade barriers to minimize competition
Answer:
The correct answer is: more companies are dispersing parts of their production process to locations around the globe.
Explanation:
It is correct to say that the volume of world trade in the current market has been growing faster than world GDP due to the fact that globalization is a phenomenon that has narrowed trade relations between countries due to greater ease of communication and reduced transport costs. .
Therefore, nations are becoming more interconnected due to the union of a global market that reduces the commercial borders between countries and makes them increasingly dependent for the commercial transaction of products and services.
There are several benefits added to globalization, such as developing countries and markets, increasing jobs, and the possibility of reducing production costs using the strategy of transferring parts of the production process to countries with cheaper labor and less bureaucratization, in order to reduce costs and increase product quality.
The Bella Capri runs as an Italian restaurant that specializes in freshly prepared cooked meals. It is located in premises on a main street of town with seating capacity for 45 customers. The lease on the premises is $250 per week. General business expesnes are a further $150 each week. Light, heat and fuel are $40 per week. Wage costs for three staff (cook and two waiters) is $600 per week including all other employment costs. The restaurant has set their prices so that it is possible to buy a meal for around $16 per head on average. The cost of the ingredients would be no more than $4 per head. What will be the fixed costs for Bella Capri per week
Answer:
The answer is $1000.
Explanation:
We can define fixed cost as the costs that does not increase or decrease as with the change in the service given or the goods produce.
According to this, we can say that the $16 price per meal and therefore the $4 ingredients are not included in the fixed cost. The light, heat and fuel are also dependent on the usage, so they do vary with the service given.
The other costs given in the question are eligible to be counted as fixed costs because they are not dependent on the number of costumers or the amount of food served.
So the fixed costs for Bella Capri per week is $250 + $150 + $600 = $1000.
I hope this answer helps.
Bagel's food had to change the labeling on their products to meet the specification regarding vegetarian and non-vegetarian foods, set by the government in the Japanese market. They also had to mention the ingredients in Japanese to make it clear for the local customers. The component of the product that is the focus in the above scenario is the ______
Answer:
Packaging component.
Explanation:
A packaging component is an integral part of a product produced for export or import purposes for easy identification, advertising and quality assurance.
The packaging component of the product is the focus in the scenario that, Bagel's food had to change the labeling on their products in order to meet the specification set by the government on vegetarian and non-vegetarian foods in the Japanese market.
Also, Bagel's food had to list or mention the ingredients used in making their products in Japanese, so the local consumers or customers could have an understanding of the food products.
Presented below is the information for Irvine Corp.: Irvine Corp.. has prepared the following comparative balance sheets for 2020 and 2021: 2021 2020 Prepaid expenses 1,800 2,700 Cash 28,200 15,300 Accounts receivable 13,900 17,000 Inventory 36,500 26,000 Patent 15,300 17,400 Plant assets 129,500 105,000 Accumulated depreciation -45,000 -37,500 180,200 145,900 Accounts payable 15,300 16,800 Accrued liabilities 6,000 4,200 Mortgage payable 0 58,300 Additional Paid In Capital 12,000 0 Preferred stock 74,000 Common Stock 60,000 60,000 Retained earnings 12,900 6,600 180,200 145,900 The income statement for 2021 is as follows: Sales revenue $198,000 Cost of sales 108,900 Gross profit 89,100 Operating expenses 69,000 Net income $20,100 Other Facts: Included in operating expenses: Depreciation Expense 7500 Vehicle expense 2800 Interest Expense 15600 Gain on Sale of Asset 5000 Pension Contribution 7500 Other: Dividends 13800 Cash Rec'd From Sale of Assets 35000 Basis of Assets Sold 30000 PREPARE A PERFECT CASH FLOW STATEMENT
Answer:
Hey hey hey hey hey
Explanation:
Deluxe Building Services offers custodial services on both a contract basis and an hourly basis. On January 1, 2015, Deluxe collected $30,150 in advance on a six-month contract for work to be performed evenly during the next six months. Assume that Deluxe closes its books and issues financial reports on a monthly basis.
a. Prepare the entry on January 1 to record the receipt of $30,150 cash for contract work (1) using the financial statements effect template and (2) in journal entry form.
b. Prepare the adjusting entry to be made on January 31, 2015, for the contract work done during January (1) using the financial statements effect template and (2) in journal entry form.
c. At January 31, a total of 30 hours of hourly rate custodial work was unbilled. The billing rate is $19 per hour. Prepare the adjusting entry needed on January 31, 2015, (1) using the financial statements effect template and (2) in journal entry form. (The firm uses the account Fees Receivable to reflect amounts due but not yet billed).
Answer:
Since there is not enough room here, I prepared the financial statement effects template on an excel spreadsheet that I attached.
a)
January 1, unearned revenue
Dr Cash 30,150
Cr Unearned service revenue 30,150
b)
January 31, accrued services
Dr Unearned service revenue 5,025
Cr Service revenue 5,025
c)
January 31, service revenue from hourly custodial work
Dr Accounts receivable 570
Cr Service revenue 570
Why is the critical path critical?
Select an answer:
• Any delay in the critical path delays the project finish date.
• It represents tasks in which resources are overallocated.
• It represents tasks that are delayed.
• The tasks on the critical path are the most important ones for achieving the project goal.
Answer:
Any delay in the critical path delays the project finish date.
Explanation:
The critical path method is also said to be the critical path analysis.
It is referred to a set of algorithm which is used to manage the entire activities related to a project.
The longest activity is identified and the time to complete the activity is measured in a critical path method.
It includes the activities and their time duration to be modeled upon.
In case any of the tasks is delayed, the entire project is delayed.
Training is a way for eployers to
Provide
to enable employees.
to protect themselves and other injuries
Answer:
Option B
To enable employees.
Explanation:
Training of employees is usually done by employers, to provide them with basic knowledge they need to perform the job effectively and adequately.
It can also be seen as "enabling" the employees to do the job well. This is because it gives them the right skill sets, mental disposition and information that is necessary to perform their tasks properly.
An aircraft manufacturer with a strong presence in the United States, is looking to expand its market overseas. The firm currently sells its aircraft to several airlines in the United Kingdom but now wants to establish manufacturing units there as well in order to acquire a bigger share in the European market. Hence, it plans to merge with QueenAir, a British aircraft manufacturer. Which of the following, if true, would weaken the company's decision to merge with QueenAir?
a. Merging with QueenAir would increase its profits considerably.
b. There is increasing economic uncertainty in its U.S. market.
c. The preferences of airline customers in Europe and the U.S. are similar.
d. There is a striking difference in the organizational cultures of the two firms.
e. A competitor in the U.S. market recently went out of business.
Answer:
d. There is a striking difference in the organizational cultures of the two firms.
Explanation:
Numeral d would likely be the argument that would weaken the company's decision to merge with QueenAir.
The reason is that, if the two companies have strikingly different organizational cultures (for example, the American company could have a more traditional, vertical hierarchy, while the British company could be more horizontal and less hierarchical), coordinating them both once the merge is completed could be so difficult as to make the whole process not worth it.
ABC Corporation has declared a rights offering to stockholders of record on Friday, December 10th. Under the offer, shareholders need 10 rights to subscribe to 1 new share at a price of $19. Fractional shares can be rounded up to purchase 1 full share. As of the ex date, the stock is trading at $29. The value of the right is:
Answer:
The value of a right is $1
Explanation:
10 rights are needed to buy 1 share at the price of $19
Value of total rights = $29 - $19 =$10
Value of a right = [tex]\frac{10}{10}[/tex] = $1
Calculate the contribution to total performance from currency, country, and stock selection for the manager relative to EAFE in the following table. All exchange rates are expressed as units of foreign currency that can be purchased with 1 U.S. dollar. (Round your answers to 2 decimal places. Do not round intermediate calculations. Input all amounts as positive values. Omit the "%" sign in your response.)
EAFE Weight Return on Equity Index E1/E0 Manager's Weight Manager's Return
Europe 0.5 12% 1.1 0.4 14%
Australasia 0.2 16 1.2 0.55 16
Far East 0.3 17 1.3 0.05 16
Find the given attachment
Vaughn Manufacturing reported net income of $471000 for the year ended 12/31/21. Included in the computation of net income were: depreciation expense, $59600; amortization of a patent, $32200; income from an investment in common stock of Ivanhoe Company, accounted for under the equity method, $48500; and amortization of a bond discount, $12700. Vaughn also paid an $79000 dividend during the year. The net cash provided by operating activities would be reported at _________.
Answer:
$483,800
Explanation:
Prepare the Cash flow from Operating Activity Section as follows :
Net Income for the year $471,000
Adjustments for Non-cash items :
Depreciation expense $59,600
Amortization of a patent $32,200
Cash Generated from Operations $562,800
Dividend Paid ($79,000)
Net Cash from Operating Activities $483,800
Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported the following condensed data (dollars in millions). Salaries and wages expenses $ 460 Research and development expense $ 114 Depreciation expense 90 Income tax expense 276 Sales revenue 5,730 Loss on disposal of plant assets 46 Interest expense 161 Cost of goods sold 3,104 Advertising expense 499 Rent expense 105 Sales returns and allowances 280 Utilities expense 60 Assume a tax rate of 34%.
Prepare a multiple-step income statement. (Round answers to 0 decimal places, e.g. 15,222.) The Clorox Company Income Statement (amounts in millions)
Calculate the gross profit rate and the profit margin. (Round answers to 1 decimal place, e.g. 15.2%.)
Gross profit rate________%
Profit margin ________%
Answer:
Gross profit rate = 43.04 %
Profit margin = 6.47 %
Explanation:
Find the given attachments
The following events apply to Lewis and Harper, a public accounting firm, for the 2016 accounting
period:
1. Performed $70,000 of services for clients on account.
2. Performed $40,000 of services for cash.
3. Incurred $36,000 of other operating expenses on account.
4. Paid $10,000 cash to an employee for salary.
5. Collected $47,000 cash from accounts receivable.
6. Paid $16,000 cash on accounts payable.
7. Paid a $8,000 cash dividend to the stockholders.
8. Accrued salaries were $2,000 at the end of 2016.
Required
a. Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. The first event is recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign.)
a. LEWIS AND HARPER
Statements Model
For Accounting Year 2016
Event No. Assets = Liabilities + Stockholders' Equity Income Statement Statement of Cash Flows
Cash + Accounts Receivable = Accounts Payable + Salaries Payable + Retained Earnings Revenue – Expense = Net Income
1. + 70,000 = + + 70,000 70,000 – = 70,000 NA
2. + = + + – =
3. + = + + – =
4. + = + + – =
5. + = + + – =
6. + = + + – =
7. + = + + – =
8. + = + + – =
Totals + = + + – =
b. What is the amount of total assets at the end of 2016?
c. What is the balance of accounts receivable at the end of 2016?
d. What is the balance of accounts payable at the end of 2016?
Answer:
Explanation:
Assets Liabilities Income statemment
Event Cash Accounst receivable Accounts Payable Salaries Payable Reatined earnings Revenue Expenses Net Income Statement of Cash Flows
1 $70000 70000 70000 70000 NA
2 40000 40000 40000 40000 40000 OA
3 36000 -36000 - 36000 -36000 NA
4 -10000 -10000 10000 -10000 -10000 OA
5 47000 -47000 0 47000 OA
6 -16000 -16000 0 -16000 OA
7 -8000 -8000 0 -8000 FA
8 2000 - 2000 -2000 NA
Total 53000 23000 20000 2000 56000 110000 0 48000 62000 53000
ans c ans d
Total assets 53000+23000 76000
Marin Company leased equipment from Costner Company, beginning on December 31, 2019. The lease term is 8 years and requires equal rental payments of $56,394 at the beginning of each year of the lease, starting on the commencement date (December 31, 2019). The equipment has a fair value at the commencement date of the lease of $350,000, an estimated useful life of 8 years, and no estimated residual value. The appropriate interest rate is 8%.
Required:
Prepare Marin's 2019 and 2020 journal entries, assuming Marin depreciates similar equipment it owns on a straight-line basis.
Answer and Explanation:
The journal entries are shown below:
1. Right of use assets$350,000 ($56,394 × 6.2064)
To lease liability $350,000
(Being the lease liability is recorded)
Refer to the present value annuity due factor table for 6.2064
2. Lease liability $56,394
To cash $56,394
(being cash paid is recorded)
3. Lease liability $32,905
Interest expense $23,489 {($350,000 - $56,394) × 8%}
To Cash $56,394
(Being cash paid is recorded)
4. Amortization expense $43,750 {$350,000 ÷ 8 years)
To Right of use asset $43,750
(Being the amortization expense is recorded)
stabilizing community lifelines is the primary effort during?
Answer:
Incident Stabilization
Explanation:
This is the primary effort during Incident Stabilization. A Community Lifeline allows for the continuous operation of crucial government/business functions that is vital to human health and safety. They are also the fundamental services within each community that, when stabilized allow all other aspects of that community to function as intended.
Agricultural output is affected by the weather. Excessively high temperatures and a lack of rainfall are detrimental too crop yields. Of course, all farmers want the best growing conditions possible, and they work with whatever the weather is, in order to maximize their crop yield. Suppose, however, for a particular crop, this is a bad year and there is a decrease in crop yield, and therefore less of the good is produced. Is there any way this could be beneficial for the framersrevenue? a) Without the use of a diagram, in your own words, layout the conditions) under which this could happen b) Suppose you have a bright but sceptical friend who doubts your answer in part (a). Without relying on technical jargonexplain (again, in your own words) how such a surprising result is possible
Answer: The answer is provided below
Explanation:
a. When the quantity supplied of a particular crop reduces, it will affect the farmer's revenue but this can still be beneficial to the farmer provided these conditions prevails:
• If demand for the crop rises more than its fall in supply, this will lead to a rise in the and price of the crop. Hence, there will also be an increase in the revenue of the farmer and the farmer will try to adjust output and sell at higher prices. Therefore, the excess demand can off set a fall in the supply.
b. We know that the supply of a crop is limited. For example, let's assume that the crop is rice. Now the situation is that people are demanding more beans maybe as a result of festive season. Therefore, everyone will want to purchase rice which will lead to an increase in the price of rice due to excess demand.
The farmer will try as much as possible to maximise profit and will therefore sell the rice at higher price to those that wants to buy. Therefore, it's clear that the farmer can still benefit, even if his supply is limited, but the demand must be greater than its decline in supply.
Jake wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,299, and the vacation is priced at $800. He has only $1,574 in his checking account, so he cannot afford to purchase both. After much thought, Jake buys the computer and writes a check for $1,299.
Identify what role money plays in each of the following parts of the story.
Hint: Select each role only once.
Role of Money
Medium of Exchange
Unit of Account
Store of Value
Jake can easily determine that the price of the computer is more than the price of the vacation.
Jake has $1,574 in his checking account.
Jake writes a check for $1,299.
Answer:
1. Jake can easily determine that the price of the computer is more than the price of the vacation. ⇒ UNIT OF ACCOUNT
2. Jake has $1,574 in his checking account. ⇒ STORE OF VALUE
3. Jake writes a check for $1,299. ⇒ MEDIUM OF EXCHANGE
Explanation:
The four functions of money are:
unit of account: since money is a common denominator, it helps to assign value to different goods and services.store of value: you can save money in order to purchase gods and services in the future.medium of exchange: you can purchase and sell goods and services using. moneystandard of deferred payment: money allows loans that require future payments of both principal and interest.Sandhill Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred.
June
1 Purchased books on account for $2,575 (including freight) from Catlin Publishers, terms 2/10, n/30.
3 Sold books on account to Garfunkel Bookstore for $1,300. The cost of the merchandise sold was $900.
6 Received $75 credit for books returned to Catlin Publishers.
9 Paid Catlin Publishers in full.
15 Received payment in full from Garfunkel Bookstore.
17 Sold books on account to Bell Tower for $1,150. The cost of the merchandise sold was $750.
20 Purchased books on account for $900 from Priceless Book Publishers, terms 3/15, n/30.
24 Received payment in full from Bell Tower.
26 Paid Priceless Book Publishers in full.
28 Sold books on account to General Bookstore for $1,900. The cost of the merchandise sold was $970.
30 Granted General Bookstore $130 credit for books returned costing $90.
Journalize the transactions for the month of June for Powell Warehouse, using a perpetual inventory system
Answer:
Sandhill Warehouse
Journal Entries:
June 1:
Debit Inventory Account $2,575
Credit Accounts Payable (Catlin Publishers)
To record purchase on account, terms 2/10, n/30.
June 3:
Debit Accounts Receivable (Garfunkel Bookstore) $1,300
Credit Sales $1,300
To record sales of books on account.
Debit Cost of Goods Sold $900
Credit Inventory Account $900
To record cost of books sold.
June 6:
Debit Accounts Payable (Catlin Publishers) $75
Credit Inventory Account $75
To record credit for books returned.
June 9:
Debit Accounts Payable (Catlin Publishers) $2,500
Credit Cash Discount $50
Credit Cash Account $2,450
To record payment on account.
June 15:
Debit Cash Account $1,300
Credit Accounts Receivable (Garfunkel Bookstore) $1,300
To record cash receipt on account.
June 17:
Debit Accounts Receivable (Bell Tower) $1,150
Credit Sales Account $1,150
To record books sold on account.
Debit Cost of Goods Sold $750
Credit Inventory Account $750
To record cost of books sold.
June 20:
Debit Inventory Account $900
Credit Accounts Payable (Priceless Book Publishers) $900
To record purchase on account, terms 3/15, n/30.
June 24:
Debit Cash Account $1,127
Debit Cash Discount $23
Credit Accounts Receivable (Bell Tower) $ 1,150
To record cash receipt on account.
June 26:
Debit Accounts Payable (Priceless Book Publishers) $900
Credit Cash Discount $27
Credit Cash Account $873
To record payment on account.
June 28:
Debit Accounts Receivable (General Bookstore) $1,900
Credit Sales $1,900
To record sale of books on account.
Debit Cost of Goods Sold $970
Credit Inventory Account $970
To record cost of books sold.
June 30:
Debit Sales (Returns) $130
Credit Accounts Receivable (General Bookstore) $130
To record Sales credit
Debit Inventory Account $90
Credit Cost of Goods Sold $90
To record cost of returned books.
Explanation:
1. Purchase of books on account increases inventory and Accounts Payable.
2. Sale of books on account increases Sales and Accounts Receivable. It also reduces the Inventory Account and increases the Cost of Sales.
3. Return on Purchases reverses the entries made when goods were purchased.
4. Since Garfunkel Bookstore paid after 10 days, it could not enjoy the 2% cash discount on offer.
5. Bell Tower paid within 10 days and enjoyed the 2% cash discount.
6. Priceless Book Publishers was paid within 15 days, so the 3% cash discount applies.
7. Return on Sales reverses the entries during sales. |t reduces Sales by a contra account called Sales Returns and the Accounts Receivable. The inventory account is increased and the Cost of Sales is reduced.
8. Journal entries record the daily transactions of a business as they occur. From the general journal, postings are made to the Ledger.
The higher education department of Holmes Institute recorded data on the number of students enrolled in the different study majors for the years Study Major 2018 2019 Statistics 1700 2250 Business Law 700 900 Accounting 1300 1450 Economics 750 1000 Finance 1450 1758 Marketing Management 1069 1189 Auditing 360 3512018 and 2019. The data are stored in file STUDYMAJOR.xls. a) Use an appropriate graphical technique or chart to compare the number of enrolment in 2018 and 2019 of the different study major. Display the chart. (2 marks) b) Use an appropriate graphical technique or chart to display the percentage value of the number of enrolment of the different study major in 2018 and 2019. Display the chart.
Answer:
The number of enrolment and the calculated the percentage value of the number of enrolment of the different study major in 2018 and 2019 are given below:
Study Major 2018 2019 2018 (%) 2019 (%)
Statistics 1,700 2,250 23% 25%
Business Law 700 900 10% 10%
Accounting 1,300 1,450 18% 16%
Economics 750 1,000 10% 11%
Finance 1,450 1,758 20% 20%
Marketing Management 1,069 1,189 15% 13%
Auditing 360 351 5% 4%
Total 7,329 8,898 100% 100%
Explanation:
Note: See the attached excel file for the two bar charts.
Financial Statement Notes: Quarterly Data Quarterly data are presented below for Company A and Company B. One of these companies is Gibson Greetings, Inc., which manufactures and sells greeting cards. The other company is Hon Industries, Inc., which manufactures and sells office furniture. Both companies are on a calendar year basis. (Amounts in Thousands) First Quarter Second Quarter Third Quarter Fourth Quarter Year Company A Net sales $186,111 $177,537 $203,070 $213,608 $780,326 Gross profit 55,457 53,643 64,024 69,374 242,498 Company B Net sales $84,896 $83,796 $142,137 $235,336 $546,165 Gross profit 53,900 52,983 66,018 104,961 277,862 Required a. Compute the percent of annual net sales generated each quarter by Company A. Round to the nearest percent. b. Compute the percent of annual net sales generated each quarter by Company B. Round to the nearest percent.
Answer and Explanation:
The computation of percent of annual net sales generated each quarter by Company A and B is shown below:-
First Second Third Fourth
Quarter Quarter Quarter Quarter
a. Company A annual
net sales percentage 24% 23% 26% 27%
($186,111 ÷ $780,326) ($177,537 ÷ $780,326) ($203,070 ÷ $780,326) (213,608 ÷ $780,326)
b. Company B annual
net sales percentage 16% 15% 26% 43%
($84,896 ÷ $546,165) ($83,796 ÷ $546,165) ($142,137 ÷ $546,165) ($235,336 ÷ $546,165)
So, for computing the percent of annual net sales generated each quarter by Company A and B we simply divide the Net sales of every quarter by Net sales of Year same for Company B.
a. The computation of the percent of annual net sales by Company A are as follows:
Quarter 1 = 24% ($186,111/$780,326 x 100)
Quarter 2 =23% ($177,537/$780,326 x 100)
Quarter 3 = 26% ($203,070/$780,326 x 100)
Quarter 4 = 27% ($213,608/$780,326 x 100)
b. The computation of the percent of annual net sales by Company B are as follows:
Quarter 1 = 16% ($84,896/$546,165 x 100)
Quarter 2 =15% ($83,796/$546,165 x 100)
Quarter 3 = 26% ($142,137/$546,165 x 100)
Quarter 4 = 43% ($235,336/$546,165 x 100)
Data and Calculations:
(Amounts in Thousands)
First Quarter Second Quarter Third Quarter Fourth Quarter Year
Company A:
Net sales $186,111 $177,537 $203,070 $213,608 $780,326
Gross profit 55,457 53,643 64,024 69,374 242,498
Company B:
Net sales $84,896 $83,796 $142,137 $235,336 $546,165
Gross profit 53,900 52,983 66,018 104,961 277,862
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Sheridan Co. incurred research and development costs in 2021 as follows: Materials used in research and development projects $ 915000 Equipment acquired that will have alternate future uses in future research and development projects 2650000 Depreciation for 2021 on above equipment 441666 Personnel costs of persons involved in research and development projects 715000 Consulting fees paid to outsiders for research and development projects 265000 Indirect costs reasonably allocable to research and development projects 190000 $5176666 The amount of research and development costs charged to Sheridan's 2021 income statement should be a. $2071666. b. $1895000. c. $2526666. d. $4545000.
Answer: c. $2,526,666.
Explanation:
When calculating amount of research and development costs charged to Sheridan for 2021, the concern should be for period costs i.e, costs that are incurred for 2021 alone. Therefore the Equipment cost cannot be put here because as an Asset it was purchased for future use and so cannot be just for 2021.
The costs therefore are all of the above EXCEPT cost.
= Materials + Depreciation + Personnel Costs + Consulting fees + Indirect Costs
= 915,000 + 441,666 + 715,000 + 265,000 + 190,000
= $2,526,666
Correct answer is Option C
Some people believe that the shuttle should have been better engineered for crew safety, including provisions for repair of the shuttle during the mission, escape of the crew when problems occur during launch, or having a backup shuttle ready to launch for rescue missions. What are some reasons why NASA would not have planned this when the shuttle was designed?
Answer:
Some of the reasons why NASA would not have planned this when the shuttle was designed was that, they just wanted to launch it by any means and wanted to save cost of launching the space shuttle.
Secondly, the NASA were over confident that the mission is designed well and is going to come out successfully.
Explanation:
Solution
It is mentioned that some people or individuals that the space shuttle was not effectively designed and did not carry any provision for crew safety; it did not provide for repair of the shuttle while on a mission; it did not carried anyway round the crew to escape if problems occurs with the space shuttle; and lastly there was no availability of backup space for rescuing this mission.
Some of the reasons why NASA would have not have planned for thus kind of conditions while launching the mission is stated as follows:
The NASA just wanted to launch by any means and also did not want to increase cost of launching this space shuttle by having a back up for the same purpose.
It could also be that the NASA was very confident and self sufficient that the mission is designed well and is going to be a success. this could be one of the major reasons the NASA did not pay attention towards making provision for the space shuttle mission and it was also a lack of responsibility from the NASA's side that it became over confident and pay no attention towards the safety of the crew going on the mission.
g During fiscal 2011, we repurchased with cash (i.e., bought) 2 million shares of common stock for an aggregate purchase cost of $700 million. We reissued (i.e., sold) 5 million shares of common stock held in treasury for $2000 million in cash during fiscal 2011. The cost basis of the 5 million shares of treasury stock reissued is $300 per share. What journal entries did ALM record in its treasury stock transactions in 2011
Answer:
Dr. Treasury Stock $700 million
Cr. Cash $700 million
Dr. Cash $2,000 million
Cr. Add-in-Capital Treasury Stock $500 million
Cr. Treasury Stock $1,500 million
Explanation:
Treasury stocks are the company's own shares which is repurchased by the company. It is recorded in treasury shares account which is an contra equity account. I can be reissued or cancelled by the company.
Purchase of Treasury Stock
Treasury Stock = $700 million
Sales of Treasury Stock
Cash Receipt = $2,000
Treasury Stock = 5 million x $300 = $1,500
Paid-in capital - Treasury stock = $2,000 - $1,500 = $500
The information listed below refers to the employees of Brennan Company for the year ended December 31, 2016. The wages are separated into the quarters in which they were paid to the individual employees. :.
For 2016, State D's contribution rate for Brennan Company, based on the experience-rating system of the state, was 3.6% of the first $7,000 of each employee's earnings. The state tax returns are due one month after the end of each calendar quarter. During 2016, the company paid $3,024.00 of contributions to State D's unemployment fund. Employer's phone number: (613) 555-0029. Employer's State D reporting number: 00596. Using the forms supplied on pages 5-42 to 5-44, complete the following for 2016:
a. The last payment of the year is used to pay the FUTA tax for the fourth quarter (the first three-quarter's liability was more than the $500 threshold). State D is not a credit reduction state.
Tax Payment:
Date _____________ Amount $____________
b. Employer's Report for Unemployment Compensation, State D-4th quarter only. Item 1 is the number of employees employed in the pay period that includes the 12th of each month in the quarter. For Brennan Company, the number of employees is ten in October, nine in November, and eight in December. All employees earned 13 credit weeks during the last quarter except for Sun (8) and Harrow (9).
c. Employer's Annual Federal Unemployment (FUTA) Tax Return-Form 940
Indicate on each form the date that the form should be submitted and the amount of money that must be paid. The president of the company prepares and signs all tax forms.
Answer:
Explanation:
The last payment date will be used in paying tax due for the fourth quarter the payment date will be the due date for payment which is January 31. and the amount will be 3024 assuming given 3024 is for the fourth quarter
b. The number of employees that are employed in the fourth quarter will be 10 that is if the decline in coming months is only because of disassociation of existing employees and no new employees are employed during the quarter.
c. Because of the time of submitting the form is Jan 31st. If taxes are paid on the due date, the due date is Feb 10. Amount of money to be paid is going to be 3024.
Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below.
Current liabilities $ 197 Income before interest and taxes $ 116
10% Bonds, long-term 370 Interest expense 37
Total liabilities 567 Income before tax 79
Shareholders' equity Income tax 22
Capital stock 210 Net income $ 57
Retained earnings 291
Total shareholders'
equity 501
Total liabilities and
equity $1,068
HHF's times interest earned ratio is (Round your answer to two decimal places.):__________.
a) 10.00.
b) 3.14.
c) 1.54.
d) 2.14.
Answer:
HHF's times interest earned ratio is 3.14. The right answer is b
Explanation:
In order to calculate the times interest earned ratio we would have to use the following formula:
Times interest earned ratio=Earnings before interest and taxes/Interest expenses
According to the given data we have the following:
Earnings before interest and taxes= $116
Interest expenses =$37
Therefore, Times interest earned ratio=$116/$37
Times interest earned ratio=3.14
HHF's times interest earned ratio is 3.14
During the taking of its physical inventory on December 31, 2013, Waterjet Bath Company incorrectly counted its inventory as $728,660 instead of the correct amount of $719,880. Indicate the effect of the misstatement on Waterjet Bath's December 31, 2013, balance sheet and income statement for the year ended December 31, 2013. Also record the amount of each overstatement or understatement. Enter all amounts as positive numbers.
Answer and Explanation:
Since in the question it is mentioned that
Incorrectly amount recorded = $728,660
And, the corrected amount is = $719,880
The difference is
= $728,660 - $719,880
= $8,780
Based on the misstatement, the effect on the financial statement is
For Balance sheet:
Overstatement of Merchandise inventory = $8,780
Overstatement of Current assets = $8,780
Overstatement of Total assets = $8,780
Overstatement of Owner equity = $8,780
For Income statement:
Understatement of Cost of merchandise sold = $8,780
Overstatement of Gross profit = $8,780
Overstated of Net income = $8,780