Answer:
$1,551
Explanation:
Ben and Carla Covington
(Monthly)
Mortgage payment $1,105
(5% ×221)
Property taxes $155
( $1,850/12)
Property insurance 41
($490/12 )
Association fee $250
Covingtons total monthly housing payment $1,551
The expected average rate of return for a proposed investment of $600,000 in a fixed asset, with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $216,000 for the 4 years, is:____________A. 18%B. 15%C. 27%D. 9%
Answer:
18%
Explanation:
Average rate of return= Average net income/Average investment ×100/1
Average net income= $216,000/4
= $54,000
Average investment= $600,000/2
= $300,000
Therefore, the average rate of return is calculated as follows.
= $54,000/$300,000 ×100/1
= 0.18×100
=18%
Hence the average rate of return is 18%
Answer:
The answer is 18%
Explanation:
Average rate of Return
= expected total net income / Average investment
Average net income
=$216,000 / 4 = $54,000
Average investment
= $600,000 / 2 = $300,000
Then the expected average rate of return
= $54,000 / $300,000
= 0.18 x 100
= 18%
18% is the average rate of return
Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 40,000 units next year and Product L is expected to sell 8,000 units. A unit of either product requires 0.4 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $1,632,000. Required: 1-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost per unit would be applied to each product
Answer:
Product L= $34
Product H= $34
Explanation:
Giving the following information:
Product H is expected to sell 40,000 units next year and Product L is expected to sell 8,000 units.
A unit of either product requires 0.4 direct labor-hours.
Estimated overhead= $1,632,000. R
First, we need to calculate the estimated overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 1,632,000/(48,000*0.4)
Estimated manufacturing overhead rate= $85 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product L= 85*0.4= $34
Product H= 85*0.4= $34
Use the following information for Shafer Company to compute inventory turnover for year 2.
Year 2 Year 1
Net sales $651,500 $583,700
Cost of goods sold 389,300 360,920
Ending inventory 78,500 80,180
a. 8.28
b. 4.89
c. 4.04
d. 7.25
e. 5.89
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Year 2 Year 1
Net sales $651,500 $583,700
Cost of goods sold 389,300 360,920
Ending inventory 78,500 80,180
To calculate the inventory turnover, we need to use the following formula:
Inventory turnover= Cost of goods sold/ average inventory
Average inventory= (beginning inventory + ending inventory) / 2
Average inventory= 158,680/2= 79,340
Inventory turnover= 389,300/79,340
Inventory turnover= 4.91
You are working as accounting information system(AIS) expert in H and H, a multinational entity(MNE) for couple of years inSpain. One of its subsidiaries in an emerging country of Asia is developing their AIS. Management selected you for this expatriate assignment for the next three years. Your boss will have a metting with you next week. What would you discuss with your boss?
Answer:
stakeholders for the project, documented goal and objective of the assignment, discuss SMART(specific, measurable, agreed, reaganlistic, timeframe) for the assignment, resources for the assignment, GANTT chart of the assignment, risk assessment for the project.
Explanation:
Before starting any major assignment, one must set its goals and objectives very clearly. A list of milestone and progress measuring report must be prepared so that tracking is easy. Also, all the associated risks must be analyze and catered for
You work for an auto parts manufacturer that has traditionally had an immense marketing budget. Company executives, however, recently reallocated some of the company’s marketing funds to production. Consequently, the company needs to cut marketing costs. You decide to pitch an idea to the automobile manufacturer with whom you work most closely—to use cross-promotion to market both companies’ products.
Answer: The parties involved must compromise in order to work well together
Explanation:
Here is the complete question:
You work for an auto parts manufacturer that has traditionally had an immense marketing budget. Company executives, however, recently reallocated some of the company’s marketing funds to production. Consequently, the company needs to cut marketing costs. You decide to pitch an idea to the automobile manufacturer with whom you work most closely—to use cross-promotion to market both companies’ products.
Which of the following is detrimental to using cross-promotion?
a. One or both companies lose customers.
b. One or both companies lose competitive edge.
c. One company garners all the attention and support.
d. The parties involved must compromise in order to work well together.
e. One of the companies absorbs most of the costs associated with marketing.
Solution:
Cross-promotion is a form of marketing promotion that involves targeting of the customers of one product or service awith promotion of a related product. A common example is the cross-media marketing of a brand e.g Oprah Winfrey's promotion on her shows on television of her magazines, books, and website.
The main aim of cross promotion is the expansion of the marketing reach of a product. Since the company executives, want to reallocate some of the company’s marketing funds to the production department, it will be harmful in a case whereby the parties that are involved compromise in order to work well together.
Equipment was acquired on January 1, 2019 at a cost of $190,000. The equipment was originally estimated to have a salvage value of $22,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2021 using the straight-line method. On January 1, 2022, the estimated salvage value was revised to $28,000 and the useful life was revised to a total of 9 years.Prepare the journal entry to record depreciation expense for 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)Depreciation expense for 2022$enter the Depreciation expense for 2017 in dollars Adjusting journal entry at 12/31/22:DateAccount Titles and ExplanationDebitCreditDec. 31
Answer:
Journal:
Dec. 31, 2022:
Debit Depreciation Expense $18,600
Credit Accumulated Depreciation $18,600
To record depreciation expense for the year.
Explanation:
a) Depreciation charge for each of the 3 years, calculated as ($190,000 - $22,000)/10 = $16,800
2019: $16,800
2020: $16,800
2021: $16,800
Accumulated Depreciation to date = $50,400 ($16,800*3)
b) Book Value on January 1, 2022 = $139,600 ($190,000 - $50,400)
c) New Depreciation charge from 2022 = $18,600 ($139,600 - $28,000) /6 years, the remaining useful life based on the revised estimate.
d) There is adjusting journal entry. Depreciation is an estimate based on judgement and past events. Judgement can change to address current events. So, there is no need adjusting the entries for the previous three years.
The payroll register of Heritage Co. indicates $13,440 of social security withheld and $3,360 of Medicare tax withheld on total salaries of $224,000 for the period. Federal withholding for the period totaled $43,140. Retirement savings withheld from employee paychecks were $2,660 for the period. Journalize the entry to record the period’s payroll. Refer to the Chart of Accounts for exact wording of account titles.
Answer and Explanation:
The journal entries are shown below:
Salary & Wages expense $224,000
To social security Payable $13,440
To Medicare tax Payable $3,360
To Federal Tax Witholding Payable $43,140
To Retirement contribution payable $2,660
To Salary & Wages Payable $161,400 (Balancing figure)
(Being the period payroll is recorded)
For recording this we debited the salary & wages expense as it increased the expenses and credited all other accounts as it increased the liabilities
Jordan has inherited some money and he wants to put it into an account
that would be very safe. He's worried about having to pay taxes on the
interest as well. What is the best option for savings? *
O
Treasury Bill or Note
O
Corporate Bond
High Yield Savings Account
O
Certificate of Deposit
Answer:
The correct answer is the third option: High Yield Savings Account.
Explanation:
To begin with, the name of "High Yield Savings Account" refers to a financial tool whose purpose is to act as a deposit account in order to save money with the plus of getting a higher interest rate than in other traditional saving accounts and also offers better returns than traditional checking accounts. Moreover, this typo of account does also tends to come with no monthly fees and low fees for certain situations like having non-sufficient funds. That is why this is best option for Jordan in order to save the money that he inherited.
Option A to buy new has a monthly payment of 338 dollars for 60 months, up-front cost of 2,500 dollars, and 275 dollars a month for insurance and gas. Option B to lease new has a monthly payment of 229 dollars for 36 months, up-front cost of 3,925 dollars, and 275 dollars a month for insurance and gas. Option C to buy used has a monthly payment of 250 dollars for 36 months, up-front cost of 2,000 dollars, and 225 dollars per month for insurance and gas. Based on your budget, which transportation option is the best financial decision for you? Explain your answer in at least two sentences.
Answer: Option C is the best financial decision.
Explanation:
Given Data:
Option C
Monthly payment = $250 For 36 months
Upfront = $2,000 ( down payment ).
Insurance and gas = $225/month.
Option C, is a more economical Transportation option because it’s total cost is lesser which is $11,225 compared to option A which is $23,055 and option B $12,444
Answer:
on edge
Explanation:
Option C is probably the best choice for my budget. The other options will require too high of an up-front cost and high monthly payments. They also include restrictions.
To live comfortably in retirement, you decide you will need to save $2 million by the time you are 65 (you are 30 years old today). You will start a new retirement savings account today and contribute the same amount of money on every birthday up to and including your 65th birthday. Using TVM principles, how much must you set aside each year to make sure that you hit your target goal if the interest rate is 5%? What flaws might exist in your calculations, and what variables could lead to different outcomes? What actions could you take ensure you reach your target goal?
Answer: Please refer to Explanation
Explanation:
1) You want to have $2 million when you are 65 which is 35 years from now. The interest rate is 5% and you need to know how much to deposit per year to get to that level. The $2 million is therefore the future value of your contributions which makes this an Annuity.
To calculate for the Annuity amount use the following formula,
FV of Annuity = Annuity ( ( (1 + i)^ n -1 )/ i )
2,000,000 = A ( ( ( 1 + 5%) ^ 35 -1 ) / 5%)
2,000,000 = A ( (1.05^35 -1 )/5%)
2,000,000 = A (90.3203074)
A = 2,000,000/90.3203074
A = $22,143
You should set aside $22,143 every year.
2) The major flaw in the calculation is the assumption that the interest rates will remain the same over the 35 years. This is almost impossible and will affect the amount that would need to be deposited every year to achieve the target. If the interest rate should increase then it will increase the amount that you are to get meaning you can get more than $2 million then you would not have to deposit as much to get to $2 million. If it decreases however, you will have to deposit more to get to the required $2 million because the amount earned in interest will not enable you to get to $2 million in that timeframe. .
To live in conformably you need to retire and decide that you need to pay about 2 million dollars to save and by the time of 65 need to start a retirement plan, the TVM concept the target goals has a interest rate of 5%.
For which we need to calculate the
FV of Annuity = Annuity ( ( (1 + i)^ n -1 )/ i )2,000,000 = A ( ( ( 1 + 5%) ^ 35 -1 ) / 5%)2,000,000 = A ( (1.05^35 -1 )/5%)2,000,000 = A (90.3203074)A = 2,000,000/90.3203074Hence A = $22,143.Learn more about the to live.
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Tamarisk Company leases a building and land. The lease term is 4 years and the annual fixed payments are $720,000. The lease arrangement gives Tamarisk the right to purchase the building and land for $13,750,000 at the end of the lease. Based on an economic analysis of the lease at the commencement date, Tamarisk is reasonably certain that the fair value of the leased assets at the end of lease term will be much higher than $13,750,000.
What are the total lease payments in this lease arrangement?
Answer:
$17,790,000
Explanation:
The computation of the total lease payment is shown below:
As we know that
Total lease payment is
= [(Annual lease payment × Number of years of the lease) + Value of right to purchase at the building and land at the end of the year]
= ($720,000 × 7) + $12,750,000
= $17,790,000
We simply applied the above formula so that the total lease payments could arrive
Statement of Shareholders' Equity You may use the attached spreadsheet to help you complete this activity, but you are not required to do so. You will find the spreadsheet by clicking on the green Excel icon in the upper left hand corner of the activity. On January 1, 2019, Powder Company provided the following shareholders' equity section of its balance sheet: Contributed Capital: Preferred stock, $100 par $ 92,800 Common stock, $5 par 37,400 Additional paid-in capital on preferred stock 21,500 Additional paid-in capital on common stock 58,700 Total contributed capital $210,400 Retained earnings 185,700 Total Shareholders' Equity $396,100 During 2019, the following transactions and events occurred and were properly recorded: Powder issued 1,800 shares of common stock at $13 per share. Powder issued 340 shares of preferred stock at $130 per share. Powder earned net income of $38,950. Powder paid a $7 per share dividend on the preferred stock and a $1 per share dividend on the common stock outstanding at the end of 2019. Required: Prepare Powder's statement of shareholders' equity (include retained earnings) for 2019. POWDER COMPANY Statement of Shareholders' Equity For Year Ended December 31, 2019 Preferred Stock $100 par Common Stock $5 par Additional Paid-in Capital on Preferred Stock Additional Paid-in Capital on Common Stock Retained Earnings Total $ $ $ $ $ $ $ $ $ $ $ $
Answer:
POWDER COMPANY Statement of Shareholders' Equity For Year Ended December 31, 2019:
Preferred Stock $100 par $126,800
Common Stock $5 par $46,400
Additional Paid-in Capital on Preferred Stock $31,700
Additional Paid-in Capital on Common Stock $73,100
Retained Earnings $206,494
Total Shareholders' Equity $484,494
(See calculations below:)
Explanation:
a) Statement of Shareholders' Equity: This is a financial statement under the balance sheet which a company issues to show the changes within the equity section of the balance sheet over a designated period of time.
b) Preferred Stock $100 par $92,800
New Issue, 340 $34,000
Total $126,800
c) Common stock, $5 par = $37,400
New Issue, 1,800 shares = $9,000
Total $46,400
d) Additional paid-in capital on preferred stock 21,500
From new issue of 340 by $30 per share 10,200
Total $31,700
e) Additional paid-in capital on common stock $58,700
From New Issue 1,800 by $8 per share $14,400
Total $73,100
f) Retained earnings = $185,700
Net Income for the year $38,950
Less Dividends: Preferred -$8,876 ($7 x 1,268 shares)
Less Dividends: Common -$9,280 ($1 x 9,280 shares)
Retained Earnings balance $206,494
On January 2, Todd Company acquired 40% of the outstanding stock of McGuire Company for $205,000. For the year ending December 31, McGuire earned income of $48,000 and paid dividends of $14,000. Required: Prepare the entries for Todd Company for the purchase of the stock, share of McGuire income, and dividends received from McGuire.
Answer:
The entries for Todd Company for the purchase of the stock, share of McGuire income, and dividends received from McGuire would be as follows:
debit credit
jan 2
Investment in equity $205,000
cash $205,000
[Investment made]
dec3 1
Investment in equity $19,200
share in net income of affilates $19,200
[share in net income recorded]
dec 31
cash $5,600
dividend income $5,600
[dividend received]
Explanation:
The entries for Todd Company for the purchase of the stock, share of McGuire income, and dividends received from McGuire would be as follows:
debit credit
jan 2
Investment in equity $205,000
cash $205,000
[Investment made]
dec3 1
Investment in equity $19,200
share in net income of affilates $19,200
[share in net income recorded]
share in net income of affilates=$48,000*0.40=$19,200
dec 31
cash $5,600
dividend income $5,600
[dividend received
dividend income=14000*0.40=$5,600
Cobe Company has already manufactured 23,000 units of Product A at a cost of $30 per unit. The 23,000 units can be sold at this stage for $450,000. Alternatively, the units can be further processed at a $250,000 total additional cost and be converted into 5,900 units of Product B and 11,400 units of Product C. Per unit selling price for Product B is $109 and for Product C is $54. 1. Prepare an analysis that shows whether the 23,000 units of Product A should be processed further or not.
Answer:
Net advantage from further processing $558,700
Explanation:
A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.
Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further .
$
Sales revenue after the split-off point
Product B ( 5,900 ×109) 643,100
Product C (11,400× $54) 615,600
Sales revenue at the split-off point 450,000
Additional sales revenue 808,700
Further processing cost (250,000)
Net advantage from further processing 558,700
Note that all costs incurred up to the split-off points are irrelevant i.e $30 per unit to produce product A. Whether or not the products are processed further they would be incurred. As such, they would not be considered in the analysis.
Cost of Goods Sold, Cost of Goods Manufactured
Glenville Company has the following information for April:
Cost of direct materials used in production $48,000
Direct labor 57,000
Factory overhead 34,000
Work in process inventory, April 1 35,000
Work in process inventory, April 30 40,000
Finished goods inventory, April 1 25,000
Finished goods inventory, April 30 16,000
For April, determine
A. The cost of goods manufactured.
B. The cost of goods sold.
Using the data given, prepare a statement of Cost of Goods Manufactured.
Glenville Company
Statement of Cost of Goods Manufactured
Work in process inventory, April 1 Y $72,300
Cost of direct materials used in production $280,000
Direct labor 324,000
Factory Overhead 188,900
Answer:
Instructions are below.
Explanation:
Giving the following information:
Cost of direct materials used in production $48,000
Direct labor 57,000
Factory overhead 34,000
Work in process inventory, April 1= 35,000
Work in process inventory, April 30= 40,000
Finished goods inventory, April 1= 25,000
Finished goods inventory, April 30= 16,000
A. To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 35,000 + 48,000 + 57,000 + 34,000 - 40,000
cost of goods manufactured= $134,000
B. To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 25,000 + 134,000 - 16,000
COGS= $143,000
C. Prepare a statement of Cost of Goods Manufactured.
Work in process inventory, April 1 Y $72,300
Cost of direct materials used in production $280,000
Direct labor 324,000
Factory Overhead 188,900
cost of goods manufactured= $865,200
Kermit bought a production line 5 years ago for $35,000. At that time it was estimated to have a service life of 10 years and salvage at the end of its service life of $10,000. Kermit's CFO recently proposed to replace the old line with a modern line expected to last 15 years and cost $95,000. This new line will provide $7,000 savings in annual operating and maintenance costs, and have a salvage value of $15,000 at the end of 15 years. The seller of the new line is willing to accept the old line as a trade-in for its current fair market value, which is $12,000. The CFO estimates that if the old line is kept for 5 more years, its salvage value will be $6,000. We are looking at performing a replacement analysis. The defender must be analyzed using a first cost of ___________ and a salvage value of ____________ for __________ years. The challenger must be analyzed using a first cost of __________ and a salvage value of __________ for _________ years.
Answer: The defender must be analyzed using a first cost of _____$12,000______ and a salvage value of _____$6,000_______ for ____5______ years. The challenger must be analyzed using a first cost of ____$95,000______ and a salvage value of _____$15,000_____ for _____15____ years.
Explanation:
The defender would first be analyzed using the first cost of the machine which was $12,000 and it salvaged value of $6,000 for a periodic of 5years.
While the challenger would be analyzed using using a first cost of $95,000 and a salvaged value of $15,000 over a period of 15years.
if data links connecting different parts of the united states were to fail, gdp would fall. if, on the other hand, the network of state-of-the-art, high-speed connections were doubled in size, what would happen
Answer:
(1). Increament in GDP.
(2). Decrease In marginal product.
(3). POSITIVE marginal Product (MP).
Explanation:
"If data links connecting different parts of the united states were to fail, gdp would fall. if, on the other hand, the network of state-of-the-art, high-speed connections were doubled in size" what will happen are given below;
=> There will be an increase in the Gross Domestic Product (GDP).
=> There will be a reduction In the value of the marginal Product (MP). The marginal Product (MP) will reduce as far more than the original network.
=> The marginal Product (MP) will be POSITIVE.
Stone Culture Corporation was organized on January 1, 2017. For its first two years of operations, it reported the following:
Net Income for 2017 $ 54,000
Net Income for 2018 59,000
Dividends for 2017 22,000
Dividends for 2018 34,000
Total assets at the end of 2017 139,000
Total assets at the end of 2018 256,000
On the basis of the data given, prepare a statement of retained earnings for both 2017 (its first year of operations) and 2018.
Answer:
Statement of retained earnings
For the year ended 2017
Retained earnings, January 1, 2017 $0
Add: Net Income $54,000
Less: Dividends $22,000
Retained earnings, December 31, 2017 $32,000
Statement of retained earnings
For the year ended 2018
Retained earnings, January 1, 2018 $0
Add: Net Income $59,000
Less: Dividends $34,000
Retained earnings, December 31, 2018 $25,000
a. Statement of retained earnings for the year ended 2017 is $32,000.
b. Statement of retained earnings for the year ended 2017 is $25,000.
Statement of retained earnings:
Statement of retained earnings for the year ended 2017
Retained earnings, January 1, 2017 $0
Add Net Income $54,000
Less Dividends ($22,000)
Retained earnings, December 31, 2017 $32,000
($54,000-$22,000)
Statement of retained earnings for the year ended 2018
Retained earnings, January 1, 2018 $0
Add Net Income $59,000
Less Dividends $34,000
Retained earnings, December 31, 2018 $25,000
($59,000-$34,000)
Inconclusion the statement of retained earnings for the year ended 2017 is $32,000 and the Statement of retained earnings for the year ended 2017 is $25,000.
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Barriers to International Trade Countries often use various government regulations to manipulate the amount of goods and services imported from other countries. This activity is important because it will help you to understand the effects of trade protectionism on the overall international trading atmosphere. The goal of this exercise is to challenge your knowledge of the different types of international trade barriers. Select the barrier to international trade that each statement best describes. 1. A complete ban on trade with another country or a prohibition on trading specific types of products, services, or technology to another country 2. A customs duty or tax levied mainly on imports 3. The United States only allows a certain amount of aluminum sheet to come into the country from China 4. The United States recently raised taxes on all imported solar panels in order to attempt to make U.S.-made solar panels more competitive 5. A limit on the numbers of a product that can be imported 6. The United States does not export any materials to North Korea that may help North Korea bolster its nuclear program.
Answer: Please refer to Explanation
Explanation:
1. Embargoes and sanctions
When a trade embargo or sanctions are in play, depending on the strength of the nation or International organisation that imposed it, countries are not allowed to trade with the country that is under an embargo. Sometimes the trade embargo can be on all products and sometimes just specific sectors are targeted. An example is the current United States embargo on Venezuela which targets their oil sector and as such most countries are avoiding buying Venezuelan oil.
2. Tariffs
This is a method of reducing the amount of a certain good imported from outside. Tariffs are usually introduced to protect the domestic producers and supplier in an economy and work by taxing imports or placing a customs duty on them. They are usually imposed when the imports are cheaper than domestic Production.
3. Import Quota
Another way to protect the domestic economy. In this scenario, a country allows the import of a certain good only up to an extent for a period which is usually a year. For instance, the United States in this scenario could say that in 2020 only 500 megatons of Aluminum are allowed into the country from China. After that, no more is allowed until 2021.
4. Tariff.
This is a Tariff and as earlier explained, is meant to protect the domestic producers by taxing imports that are cheaper.
5. Import Quota.
This is clearly an import Quota as earlier described because the country is limiting the amount of a certain good that can come into it.
6. Embargoes and Sanctions.
This is a clear example of an embargo. The United States is limiting the amount of goods exported to North Korea because they are under sanctions and embargoes. The United States and Western nations do not want to export anything to North Korea that could aid it's Nuclear Industry so it is a targeted embargo on their nuclear industry.
At the end of August, the first month of operations, the following selected data were taken from the financial statements of Tucker Jacobs, an attorney:Net income for August$112,500Total assets at August 31650,000Total liabilities at August 31225,000Total stockholders' equity at August 31425,000In preparing the financial statements, adjustments for the following data were overlooked:1. Unbilled fees earned at August 31, $31,900.2. Depreciation of equipment for August, $7,500.3. Accrued wages at August 31, $5,200.4. Supplies used during August, $3,000.Instructions1. Journalize the entries to record the omitted adjustments.2. Determine the correct amount of net income for August and the total assets, liabilities, and stockholders' equity at August 31.
Answer:
1. See the journal below.
2. Correct answers are:
a. Correct amount of net income = $ 128,700.
b. Correct amount of total assets = $671,400.
c. Correct amount of total liabilities = $230,200.
d. Correct amount of stockholders' equity = $441,200
Explanation:
1. Journalize the entries to record the omitted adjustments
Details Dr ($) Cr ($)
Accounts Receivable 31,900
Unbilled fees earned 31,900
To record the unbillled fees earned. Depreciation 7,500
Accumulated Depreciation 7,500
To record the depreciation expenses.
Wages Expense 5,200
Wages Payable 5,200
To record accrued wages expense.
Supplies Expense 3,000
Supplies 3,000
To record the supplies expenses.
2. Determine the correct amount of net income for August and the total assets, liabilities, and stockholders' equity at August 31.
a. Correct amount of net income = Net income recorded + Unbilled fees earned - Depreciation - Accrued wages - supplies expense = $112,500 + $31,900 - $7,500 - $5,200 - $3,000 = $ 128,700.
b. Correct amount of total assets = Recorded total assets + Unbilled fees earned - depreciation - Supplies = $650,000 + 31,900 - $7,500 - $3,000 = $671,400.
c. Correct amount of total liabilities = Recorded total liabilities + Accrued wages = $225,000 + 5,200 = $230,200.
d. Correct amount of stockholders' equity = Correct amount of total assets - Correct amount of total liabilities = $671,400 - $230,200 = $441,200
Algoma, Inc., signs a five-year lease for office equipment with Office Solutions. The present value of the lease payments is $15,499. Prepare the journal entry that Algoma records at the inception of this finance lease.
Answer:
Dr. Lease asset office equipment $15,499
Cr. Lease Liability $15,499
Explanation:
A capital lease is a lease between two parties in which a party transfer leases asset to in exchange of lease payments.
To make a lease finance lease following criteria must be fulfilled.
The asset will be transferred to lessee at the end of lease periodAgreement must contain bargain purchase optionLease period must be 75% or more of useful life of assetValue of lease must be equal or more than the market value of assetWilliam has an A.A. in general studies, but he does not know what career he wants to pursue. He decides to get a job for a year before going back to school. He wants a job near home in an office. He enjoys collaborating with other employees. William places a lot of value on freedom of thought and action at work. He needs about $50,000 per year.
William interviews at a company as an entry level sales person. He learns that it takes about 15 minutes to drive to the office. His job would be to work in a cubicle on a phone talking to potential clients from a script. The job pays about $50,000 per year with the possibility for performance-based bonuses. Which factor makes this job a poor fit for William?A. The company is in a bad location.B. He wants more freedom in how he makes sales.C. He is opposed to sales work.D. The job does not pay enough money.
Answer:
He wants more freedom in how he makes sales
Explanation:
William places a lot of value on freedom of thought and action at work but the job entails him speaking from a script. This hinders freedom in how he makes sales.
I hope my answer helps you
On June 30, Coral, Inc. finished Job 750 with total job costs of $ 4 comma 400, and transferred the costs to Finished Goods Inventory. On July 6, Coral sold goods to a customer for $ 5,800 cash. Which of the following is the correct journal entry to record the cost of goods sold? Assume the perpetual inventory system is used.
a. debit Finished Goods Inventory $4,100 and credit Cost of Goods Sold $4,100
b. debit Cost of Goods Sold $4,100 and credit Work-in-Process Inventory $4,100
c. debit Work-in-Process Inventory $4,100 and credit Cost of Goods $4,100
d. debit Cost of Goods Sold $4,100 and credit Finished Goods Inventory $4,100
Answer:
The correct option is D,debit Cost of Goods Sold $4,100 and credit Finished Goods Inventory $4,100
Explanation:
The total job costs is $4,100 not $4,400 ,which then means that the cost of goods sold is $4,100.
The appropriate entry for such sale is to credit merchandise inventory since the inventory reduces due to such sale being made while cost of goods sold is debited with the same amount.
In a nutshell, the correct option is D,
At the end of April, Cavy Company had completed Job 766 and 765. According to the individual job cost sheets the information is as follows:
Job
Direct Materials
Direct Labor
Machine Hours
Job 765
$5,670
$3,500
27
Job 766
$8,900
$4,775
44
Job 765 produced 152 units, and Job 766 consisted of 250 units.
Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $200 per hour, determine the (a) balance on the job cost sheets for each job, and (b) the cost per unit at the end of April.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Job 765:
Direct material= $5,670
Direct labor= $3,500
Machine Hours= 27
Job 766:
Direct material= $8,900
Direct labor= $4,775
Machine Hours= 44
Job 765 produced 152 units, and Job 766 consisted of 250 units.
Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $200 per hour.
Costs sheet:
Job 765:
Direct material= 5,670
Direct labor= 3,500
Allocated overhead= 200*27= 5,400
Total cost= 14,570
Unitary cost= 14,570/152= $95.85
Job 766:
Direct material= 8,900
Direct labor= 4,775
Allocated overhead= 200*44= 8,800
Total cost= 22,475
Unitary cost= 22,475/250= $89.9
Akwamba made this statement ‘organisations cannot be successful if managers fail to pay attention to the forces in the external environment’. Do you agree or not? Justify using practical examples (9 marks)
Answer:
I agree
Check the file for continuation
Over the past 4 years, Cardi, age 28, has contributed a total of $20,000 to a Roth IRA. The current balance is $25,000. She was tired of renting, so this year she took a distribution of $15,000 for a down payment on a home. What amount of the distribution should she include in her gross income this year
Answer:
$0
Explanation:
According to the scenario, computation of the given data are as follow:-
Contributed amount = $20,000
Distribution amount = $15,000
As we know,
Taxable amount = Distribution amount - contribution amount
= $15,000 - $20,000
= - $5,000
The contribution amount is $20,000 more than the distribution amount $15,000. So distribution amount is not taxable.
She included $0 amount in her gross income this year.
Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and trimming, before they are ready for packaging. Expected costs and activities for the molding department and for the trimming department for 2017 follow. (Round "OH rate and cost per unit" answers to 2 decimal places.)
Molding Trimming
Direct labor hours 52,000 DLH 48,000 DLH
Machine hours 30,500 MH 3,600 MH
Overhead costs $ 730,000 $ 590,000
Data for two special order parts to be manufactured by the company in 2017 follow:
Part A27C Part X82B
Number of units 9,800 units 54,500 units
Machine hours
Molding 5,100 MH 1,020 MH
Trimming 2,600 MH 650 MH
Direct labor hours
Molding 5,500 DLH 2,150 DLH
Trimming 700 DLH 3,500 DLH
Answer and Explanation:
1. The computation of the departmental overhead rate for the molding department based on machine hours and for trimming department based on direct labor hours are shown below:
For molding department
= Overhead cost ÷ machine hours
= $730,000 ÷ 30,500 machine hours
= $23.93 per machine hour
For trimming department
= Overhead cost ÷ direct labor hours
= $590,000 ÷ 48,000 direct labor hours
= $12.29 per machine hour
2. Now the total overhead cost for Part A27C and Part X82B and its overhead cost per unit are as follows
Part A27C Activity Departmental For Total Overhead
Driver OH Rate each Cost
Molding Machine
Hours $23.93 Machine $122,065.57
Hour (5,100 MH × 23.93 )
Trimming Direct
Labor Hours $12.29 Direct $8,604.17
Labor Hour (700 DLH × 12.29 )
Total Overheads $130,669.74 ÷ 9,800 units
Overhead per unit $13.33
Part X82B Activity Departmental For Total Overhead
Driver OH Rate each Cost
Molding Machine
Hours $23.93 Machine $24,413.11
Hour (1,020 MH × 23.93 )
Trimming Direct
Labor Hours $12.29 Direct $43,020.83
Labor Hour (3,500 DLH × 12.29)
Total Overhead $674,33.95 ÷ 54,500 units
Overhead per unit $1.24
Purchase-Related Transactions Using Perpetual Inventory System The following selected transactions were completed by Niles Co. during March of the current year:
Mar. 1. Purchased merchandise from Haas Co., $13,900, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $550 was added to the invoice.
5. Purchased merchandise from Whitman Co., $10,650, terms FOB destination, n/30.
10. Paid Haas Co. for invoice of March 1.
13. Purchased merchandise from Jost Co., $7,100, terms FOB destination, 1/10, n/30.
14. Issued debit memo to Jost Co. for $1,300 of merchandise returned from purchase on March 13.
18. Purchased merchandise from Fairhurst Company, $9,600, terms FOB shipping point, n/eom.
18. Paid freight of $310 on March 18 purchase from Fairhurst Company.
19. Purchased merchandise from Bickle Co., $13,800, terms FOB destination, 2/10, n/30.
23. Paid Jost Co. for invoice of March 13, less debit memo of March 14.
29. Paid Bickle Co. for invoice of March 19.
31. Paid Fairhurst Company for invoice of March 18.
31. Paid Whitman Co. for invoice of March 5.
Required: Journalize the entries to record the transactions of Britt Co. for March. Mar. 1 Mar. 5 Mar. 10 Mar. 13 Mar. 14 Mar. 18-purchase Mar. 18-freight Mar. 19 Mar. 23 Mar. 29 Mar. 31-Fairhurst Mar. 31-Whitman
Answer:
Mar. 1
Merchandise $13,900 (debit)
Freight Charges Prepaid $550 (debit)
Accounts Payable : Haas Co. $13,900 (credit)
Cash $550 (credit)
Mar. 5
Merchandise $10,650 (debit)
Accounts Payable : Whitman Co. $10,650 (credit)
Mar. 10
Accounts Payable : Haas Co. $13,622 (debit)
Cash $13,622 (credit)
Mar. 13
Merchandise $7,100 (debit)
Accounts Payable : Jost Co. $7,100 (credit)
Mar. 14
Accounts Payable : Jost Co. $1,300 (debit)
Merchandise $1,300 (credit)
Mar. 18-purchase
Merchandise $9,600 (debit)
Accounts Payable : Fairhurst Company $9,600 (credit)
Mar. 18-freight
Freight Charges $310 (debit)
Cash $310 (credit)
Mar. 19
Merchandise $13,800(debit)
Accounts Payable : Bickle Co. $13,800 (credit)
Mar. 23
Accounts Payable : Jost Co. $5,742 (debit)
Cash $5,742 (credit)
Mar. 29
Accounts Payable : Bickle Co. $13,524 (debit)
Cash $13,524 (credit)
Mar. 31-Fairhurst
Accounts Payable : Fairhurst. $9,600 (debit)
Cash $9,600 (credit)
Mar. 31-Whitman
Accounts Payable : Whitman $10,650 (debit)
Cash $10,650 (credit)
Explanation:
When Merchandise is purchased on Account,
Recognize the Merchandise Account (debit) and recognize the Accounts Payable Account (credit).
When Merchandise is finally paid for.
First determine if payment fall within discount period.
Also determine if there were previous returns to supplier.
Then de-recognize the Accounts Payable Account and recognize the Cash Payment to the extend of amount paid.
Portions of the financial statements for Alliance Technologies are provided below. Alliance Technologies Income Statement For the year ended December 31, 2018Net sales $405,000Expenses:Cost of goods sold $235,000 Operating expenses 70,000Depreciation expense 17,000 Income tax expense 27,000 Total expenses 349,000Net income $56,000 Alliance Technologies Selected Balance Sheet Data December 31, 2018, compared to December 31, 2017Decrease in accounts receivable $7,000Increase in inventory 14,000Decrease in prepaid rent 10,000Increase in salaries payable 6,000Decrease in accounts payable 9,000Increase in income tax payable 24,000Required:Prepare the operating activities section of the statement of cash flows for Alliance Technologies using the direct method.
Answer:
Net cash flow from Operating activities $ 97,000.00
Explanation:
The problem can not be solved on the answer box here, that is why i made use of the microsoft word table in other to understand the solution properly
The Net cash flow from the Operating activities is $97,000.
Alliance Technologies
Cash Flow Statement
For year ended 31st December 2018
Cash Flows from Operating Activity
Net Income $56,000
Adjustments to reconcile net income
to net cash from operations
Depreciation expense $17,000
Changes in working Capital
Decrease in Accounts receivables $7,000
Increase in Inventory $(14,000)
Decrease in prepaid rent $10,000
Increase in salaries payable $6,000
Decrease in accounts payable $(9,000)
Increase in income tax payable $24,000 $41,000
Net cash flow from Operating activities $97,000
Therefore, the Net cash flow from the Operating activities is $97,000.
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Mention and explain the different types of checks, and is the type of the check effect
the indorsement?
Answer:
There are types of checks that are used in endorsements.
Explanation:
The checks are different types that are used in endorsements by bearers
The Bank cheque The order chequeThe bearer chequeThe blank chequeThe counter chequeThe stale chequeThe mutilated chequeThe post-dated chequeThe open chequeThe crossed chequeThe gift chequeThe traveler chequeThe banker chequeThe outstanding cheque