Answer:
$814
Explanation:
When individuals or small firms use cash accounting, they will record any expenses or revenue when they are actually paid for or collected respectively.
In this case, Bob must record:
Dividend received from Virginia Credit Union $814Interests received on January 2, of next year are not included (they are included in next year's tax return). Interest received on a 5-year certificate of deposit (left in CD account to compound) is not included because it was earned before this year and left in CD to compound. The penalty for early withdrawal is associated with the CD, so it is not included.
Cathy wants to purchase an annuity where she can withdraw $15,000 at the beginning of each year for the next 25 years. She expects to earn 8% compounded annually on her investment. How much should she pay for the annuity?
Answer:
hmm idk i dk
Explanation:
On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 for Banes Domino's Company. Banes Domino's Company
Adjusted Trial Balance
March 31, 20--
1 Account Title Debit Credit 1
2 Cash 30,000.00
3 Accounts Receivable 45,200.00
4 Supplies 5,000.00
5 Equipment 169,900.00
6 Accumulated Depreciation 32,000.00
7 Accounts Payable 12,500.00
8 Jack Banes, Capital 71,600.00
9 Jack Banes, Drawing 47,000.00
10 Fees Earned 510,000.00
11 Salary Expense 244,500.00
12 Rent Expense 48,000.00
13 Depreciation Expense 25,000.00
14 Supplies Expense 9,500.00
15 Miscellaneous Expense 2,000.00
16 Totals 626,100.00 626,100.00
Required:
Journalize the four closing entries. Refer to the Chart of Accounts for exact wording of account titles. The journal should consist of 12 rows.
Chart of Accounts.
Banes Domino's CorporationGeneral Ledge
Assets
1 Cash
2 Accounts Receivable
3 Supplies
4 Equipment
5 Accumulated Depreciation
Liabilities
5 Accounts Payable
Equity
6 Common Stock
7 Retained Earnings
8 Dividends
9 Income Summary
Revenue
10 Fees Earned
Expenses
11 Salary Expense
12 Rent Expense
13 Depreciation Expense
14 Supplies Expense
15 Miscellaneous Expense
Answer:
Banes Domino's Company
Closing Entries
Date Acct.No Account Debit Credit
9 Income Summary 329,000.00
11 Salary Expense 244,500.00
12 Rent Expense 48,000.00
13 Depreciation Expense 25,000.00
14 Supplies Expense 9,500.00
15 Miscellaneous Expense 2,000.00
Expenses are closed to Income Summary Account.
10 Fees Earned 510,000.00
9 Income Summary 510,000.00
Revenue Accounts are closed to Income Summary Account.
9 Income Summary 181,000.00
Jack Banes, Capital 181,000.00
To close Income Summary Account
Jack Banes, Capital 47,000.00
Jack Banes, Drawing 47,000.00
To Close withdrawals account.
In the context of organization development techniques, coaching and counseling: a. focus exclusively on increasing productivity. b. provide assistance to individuals with achieving non-work-related objectives. c. provide nonevaluative feedback to individuals. d. are designed for managers and not executive employees. e. focus on how an individual is performing today.
Answer:
A
Explanation:
An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the first week of the calendar year are as follows: hours worked, 46; federal income tax withheld, $110; Social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment tax, 5.4% on the first $7,000; federal unemployment tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee? If required, round your answers to the nearest cent.
Answer:
Net pay $569.88
Explanation:
Let the gross earnings be:
$15 * 40 = $600
$15 * 1.5 * 6 = $135
$600+$135
=$735
Withheld Federal income tax = $110
Social security tax rate =0.06* $735
= $44.10
Medicare tax rate = 0.015* $735
= $11.02
Net pay $569.88
($735 - $110 - $44.10 - $11.02)
Amount to be paid to the each employee will be $569.88
The declaration, record, and payment dates in connection with a cash dividend of $135,000 on a corporation's common stock are January 12, March 13, and April 12. Journalize the entries required on each date. If no entry is required, select "No Entry Required" and leave the amount boxes blank.
Answer:
Declaration:
Dr retained earnings $135,000
Cr dividends payable $135,000
Record date:
no entries are required
Payment date:
Dr dividends payable $135,000
Cr cash $135,000
Explanation:
The declaration implies that an amount is set aside from retained earnings in order to pay dividends to stockholders,which means that retained earnings is debited with $135,000 while dividends payable is credited with the same amount.
On payment date,the cash account would show a credit,an outflow while dividends payable is debited with $135,000 in order to show that the dividends obligation has been discharged
Levi Corporation (a U.S. company) has several transactions with foreign entities. Each transaction is denominated in the local currency unit of the country in which the foreign entity is located. On December 2, 20X1, Levi sold confectionary items to a foreign company at a price of 50,000 yen when the direct exchange rate was 1 yen = $1.15. The account has not been settled as of the year ended December 31, 20X1, when the exchange rate had changed to 1 yen = $1.12. The foreign exchange gain or loss on Levi's records at year-end for this transaction will be:______
A. No gain or loss is reported
B. $1,500 loss
C. $1,500 gain
Answer:
c
Explanation:
Calculate the present value of a single amount (LOC-2) The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts with the following terms: Contract Terms Contract Amount Payment Date Derek $ 420,000 2 years Isabel 460,000 3 years Meredith 540,000 Today George 320,000 1 year Required: Assuming an annual discount rate of 10%, calculate the present value of the contract amount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.)
Answer:
Derek = $ 347,107.44
Isabel = $345,604.81
Meredith = $540,000
George = $290,909.09
Explanation:
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator:
Derek:
Cash flow in year 1 = 0
Cash flow in year 2 = $ 420,000
I = 10%
Present value =$$ 347,107.44
Isabel
Cash flow in year 1 and 2 = 0
Cash fkow in year 3 = 460,000
I = 10%
Present value = $345,604.81
George
Cash flow in year 1 = 320,000
I = 10%
Present value = $290,909.09
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Four highly similar and competitive income-producing properties located in close proximity to the subject property have sold this month. All four offer essentially the same amenities and services as the subject property. The sale prices and estimated first-year NOI for each of the comparable properties are as follows: Comparable Sale Price NOI1 A $1,450,000 $155,000 B $1,100,000 $135,400 C $1,250,000 $143,400 D $1,500,000 $169,000 Using the information provided, calculate the overall capitalization rate by direct market extraction assuming each property is equally comparable to the subject.
Answer: 11.43%
Explanation:
Capitalization rate is a real estate valuation measure that is used to compare and contrast different real estate investments.
The capitalization rate is calculated as shown below:
Capitalization rate of comparable A:
= Net operating income (NOI) / Sales price
= $ 155,000 / $ 1,450,000
= 0.1069
Capitalization rate of comparable B:
= Net operating income (NOI) / Sales price
= $ 135,400 / $ 1,100,000
= 0.1231
Capitalization rate of comparable C:
= Net operating income (NOI) / Sales price
= $ 143,400 / $ 1,250,000
= 0.1147
Capitalization rate of comparable D:
= Net operating income (NOI) / Sales price
= $ 169,000 / $ 1,500,000
= 0.1127
The overall capitalization rate will the be the average of all the 4 rates that we have calculated. This will be:
= (0.1069 + 0.1231 + 0.1147 + 0.1127) / 4
= 0.4574/4
= 0.1143 or 11.43%
A book on how to invest in collectibles spends several weeks on best seller lists. The paperback book was originally released for $9.99. A reduction of the price to $9.79 had little effect total revenue, which remained the same. This is due to the book having:
Answer:
inelastic demand
Explanation:
Price elasticity of demand (PED) measures the proportional change in quantity demanded when the price of a product or service changes:
when a 1% decrease in price, increases quantity demanded in a smaller proportion, the PED is said to be inelastic.when a 1% decrease in price, increases quantity demanded in a larger proportion, the PED is said to be elastic.when a 1% decrease in price, increases quantity demanded in the same proportion, the PED is said to be unit elastic.In this case, the decrease in price (-2%) barely increased the quantity demanded, therefore, the PED is inelastic.
Number of Employees Total Production Marginal Product of Labor Marginal Revenue Product 0 0 0 1 18 18 2 30 12 3 41 11 4 46 5 If the price of the item is $10.00 per unit and the employees cost $100 each, how many employees should the firm hire to maximize their profit
Answer:
3 workers
Explanation:
Number of Total Production Marg. Product Marg. Revenue
employees of Labor Product
0 0 0 0
1 18 18 $180
2 30 12 $120
3 41 11 $110
4 46 5 $50
in order to maximize profits, the company must produce until the marginal revenue product ≥ cost of hiring an additional worker. In this case, the company should hire 3 workers since the MRP ($110) ≥ $100.
All of the following are considered active job search methods EXCEPT _____.
Requirement 1. Fill in the missing amounts. Begin by completing the income statement.
Toad Company
Income Statement
For the Year Ended December 31, 2012
Sales. . . . . . . . . . . . . . . . . .
$575,000
Cost of goods sold. . . . . . .
Gross profit on sales. . . . . .
215,000
Administrative expenses. .
60,000
Operating income. . . . . . . .
Interest expense. . . . . . . . .
7,000
Income tax expense. . . . .
44,400
Net income. . . . . . . . . . . . .
Toad Company
Balance Sheet
At December 31, 2012
Cash. . . . . . . . . . . . . . . .
$ ?
Accounts payable. . .
$13,500
Accounts receivable. . . . .
12,500
Note payable. . . . . . .
8,800
Inventory. . . . . . . . . . . . .
43,000
Equipment. . . . . . . . . . . . . .
973,000
Contributed capital. .
610,000
Retained earnings. . .
?
Total. . . . . . . . . . . . . . . .
$1,124,500
Total
?
Answer:
Excerpt from Duty, Honor, Country / Every Man a King
General Douglas MacArthur / Huey P. Long
Duty, Honor, Country / Every Man a King
By: General Douglas MacArthur / Huey P. Long
Excerpt of Duty, Honor, Country
General Douglas MacArthur
.
Explanation:
A teenage boy has opened a checking account. He is surprised to find that though he is getting a written bank statement each month he is not getting his canceled checks returned. The teenager should be aware that the reason canceled checks are NOT returned is to *
Answer:
Save the bank money associated with returning copies of these checks.
Explanation:
The correct answer to this question is Save the bank money associated with returning copies of these checks. Because as you can see the teenage boy has opened a checking account and he is surprised So we already know the answer.
Answer: Save the bank money associated with returning copies of these checks
Hope this helps.
Like many college students, Melanie applied for and got a credit card that has an annual percentage rate (APR) of 12%. The first thing she did was buy a new stereo system for $400. At the end of the month, her credit card statement said she only needed to make a minimum monthly payment of $15. Assume Melanie makes her payment when she sees her statement at the end of each month. If Melanie doesn't charge anything else and only makes the minimum monthly payments, approximately how many months would it take her to completely pay off the stereo system
Answer:
31.17 months
Explanation:
For computing the number of months required to pay off the stereo system we need to apply the NPER formula i.e be shown in the attachment below:
Given that,
Present value = $400
Future value = $0
Rate of interest = 12% ÷ 12 months = 1%
PMT = $15
The formula is shown below:
= NPER(Rate;PMT;-PV;FV;type)
The present value come in negative
So, after applying this, the number of months is 31.17 months
Flare Co. manufactures textiles. Among Flare's 2016 manufacturing costs were the following salaries and wages: Loom operators $ 129,000 Factory foremen 54,000 Machine mechanics 39,000 What was the amount of Flare's 2016 indirect labor
Answer: $93,000
Explanation:
Flare Co. manufactures textiles. As such the direct labour should be those directly involved in the Manufacturing of these textiles and all others will be considered Indirect Labour.
Looming refers to the weaving of fabric meaning therefore that it is directly related to the Manufacturing of textiles.
Factory Foremen only supervise the activities of the factory and so are not directly involved and Machine Mechanics ensure that machines are running smoothly and so are not directly involved either.
Indirect labor for 2016 is therefore,
= Factory Foremen + Machine Mechanics
= 54,000+ 39,000
= $93,000
Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process. The following describes production operations for October Direct materials used Direct labor used 30% in Shredding; 70% in Bagging. Predetermined overhead rate (based on direct labor) Transferred to Bagging Transferred to finished goods $234,000 $121,000 165% S205,500 $590,000 The company's revenue for the month totaled $470,000 from credit sales, and its cost of goods sold for the month is $254,000.
Prepare summary journal entries dated October 31 to record its October production activities for
(1) direct materials usage,
(2) direct labor incurred
(3) overhead applied,
(4) goods transfer from Shredding to Bagging,
(5) goods transfer from Bagging to finished goods,
(6) credit sales, and
(7) cost of goods
Answer:
Explanation:
Re-Tire General Journal entries
1.
Dr Work in process - Shredding $234,000
Cr To Raw material Inventory $234,000
2.
Dr Work in process - Shredding $36,300
DrWork in process - bagging $84,700
Cr To Factory Wages $121,000
3.
Dr Work in process - Shredding $59,895
Dr Work in process - bagging $139,755
Cr To Factory Overhead $199,650
4.
Dr Work in process - bagging $205 500
Cr To Work in process - Shredding $205,500
5.
Dr Finished Goods Inventory $590,000
Cr To Work in process - Bagging $590,000
6.
Dr Accounts Receivable $470,000
Cr To Sales Revenue $470,000
7.
Dr Cost of Goods Sold $254,000
Cr To Finished Goods Inventory $254,000
Explanation:
2.
Work in process - Shredding
(121,000*30%) =$36,300
Work in process - bagging
(121,000*70%) =$84,700
To Factory Wages
(84,700+36,300) =121,000
3.
Work in process - Shredding
(36,300*165%)= $59,895
Work in process - bagging
(84,700*165%)= $139,755
To Factory Overhead
(139,755+59,895)=199,650
Emerald Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2017: Expected production and sales $7,000 unitsExpected selling price per unit 680Total fixed costs $1,400,000 Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manu- facturing labor: Standard Quantity Standard Price Standard Unit CostDirect materials 10 pounds $ 8 per pound $ 80Direct manufacturing labor 3.7 hours $ 50 per hour $ 185 During 2017, actual number of units produced and sold was 4,800, at an average selling price of $720. Ac- tual cost of direct materials used was $392,700, based on 66,000 pounds purchased at $5.95 per pound. Direct manufacturing labor-hours actually used were 18,300, at the rate of $48 per hour. As a result, actual direct manufacturing labor costs were $878,400. Actual fixed costs were $1,170,000. There were no beginning or ending inventories.Required: 1. Calculate the sales-volume variance and flexible-budget variance for operating income. 2. Compute price and efficiency variances for direct materials and direct manufacturing labor.
Answer:
a) Sales volume variance = $1496000 unfavorable
flexible-budget variance = $192000 favorable
b) For direct materials
Price variance = `$135000 unfavorable
efficiency variances = $527920 favorable
For direct manufacturing labor
Price variance = `$36600 unfavorable
efficiency variances = $914815 favorable
Explanation:
a) Sales volume variance = (Actual units sold - Budgeted units sold) x Budgeted price per unit = (4800 - 7000) × $680 = $1496000 unfavorable
flexible-budget variance = (Actual price - Budgeted price) x Actual units sold= ($720 - $680) × 4800 = $192000 favorable
b) For direct materials
Price variance = (Actual cost - standard cost) x Actual quantity of units purchased = ($5.95/ pound - $8/pound) × 66000 pound= `$135000 unfavorable
efficiency variances = (Actual unit - Standard unit) x Standard cost per unit = (66000 pound - 10 pound) × $8 per pound= $527920 favorable
For direct manufacturing labor
Price variance = (Actual cost - standard cost) x Actual hours = ($48/hour - $50/hour) × 18300 hours = `$36600 unfavorable
efficiency variances = (Actual hours - Standard hours) x Standard cost per hour= (18300 hour - 3.7 hour) × $50/hour = $914815 favorable
In this exercise we have to use business knowledge to calculate the variance of each of the items requested in the given text, in this way we find that:
1) Sales volume variance, we can say that is unfavorable amd flexible-budget variance we can say that is favorable.
2) Price variance we can say that is unfavorable and efficiency variances is favorable. For direct manufacturing labor we can say that price variance is unfavorable and efficiency variances is favorable.
So calculating the variance for the items, we find that:
1)To calculate the variance in sales volume we will use the formula:
[tex](Actual \ units \ sold - Budgeted \ units \ sold) * (Budgeted \ price \ per\ unit )[/tex]
Replacing the values informed in the text, we find that:
[tex]= (4800 - 7000) * (680) = \$1.496.000[/tex]
So the variance in sales volume is equal to [tex]\$1.496.000[/tex] and we can also say that it is unfavorable.
To calculate the variance in flexible-budget we will use the formula:
[tex](Actual \ price - Budgeted \ price) * (Actual \ units \ sold)[/tex]
Replacing the values informed in the text, we find that:
[tex]= ($720 - $680) * 4800 = \$192000[/tex]
So the variance in flexible-budget is equal to [tex]\$192.000[/tex] and we can also say that it is favorable.
b) To calculate the variance in price variance we will use the formula:
[tex](Actual\ cost - standard\ cost) * (Actual\ quantity\ of\ units\ purchased)[/tex]
Replacing the values informed in the text, we find that:
[tex]= ($5.95 - $8) * (66000)= \$135.000[/tex]
So the variance in price variance is equal to [tex]\$135.000[/tex] and we can also say that it is unfavorable.
To calculate the variance in efficiency variances we will use the formula:
[tex](Actual \ unit - Standard \ unit) * Standard \ cost\ per\ unit[/tex]
Replacing the values informed in the text, we find that:
[tex](66000 - 10 ) * $8 = \$527.920[/tex]
So the variance in efficiency variances is equal to [tex]\$527.000[/tex] and we can also say that it is favorable.
To calculate the variance in price variance we will use the formula:
[tex](Actual \ cost - standard \ cost) * Actual\ hours[/tex]
Replacing the values informed in the text, we find that:
[tex]($48 - $50) * 18300 = \$36.600[/tex]
So the variance in price variance is equal to [tex]\$36.600[/tex] and we can also say that it is unfavorable.
To calculate the variance in efficiency variances we will use the formula:
[tex](Actual \ hours - Standard \hours) * Standard \ cost \ per \ hour[/tex]
Replacing the values informed in the text, we find that:
[tex](18300 - 3.7 ) * $50 = $914.815[/tex]
So the variance in efficiency variances is equal to [tex]\$914.815[/tex] and we can also say that it is favorable.
See more about business at brainly.com/question/14254734
Percival Hygiene has $10 million invested in long-term corporate bonds. This bond portfolio's expected annual rate of return is 9%, and the annual standard deviation is 10%. Amanda Reckonwith, Percival's financial adviser, recommends that Percival consider investing in an index fund that closely tracks the Standard & Poor's 500 Index. The index has an expected return of 14%, and its standard deviation is 16%. The Treasury bill yield is 6%. A. Suppose Percival puts all his money in a combination of the index fund and Treasury bills. Can he thereby improve his expected rate of return without changing the risk of his portfolio measured as the standard deviation?B. Could Percival do even better by investing equal amounts in the corporate bond portfolio and the index fund? The correlation between the bond portfolio and the index fund is _.1.
Answer:
Explanation:
a)We find the portfolio weights first. For a two security portfolio
[tex]sP^2 = x_1^2s_1^2 + 2x_1x_2s_1s_2r_1_2 + x_2^2s_2^2[/tex]
[tex](0.10)^2 = 0 + 0 + x_2^2(0.16)^2[/tex]
x2 = 0.625 and x1 = 0.375
Then
rp = x1r1 + x2r2
rp = (0.375 ´ 0.06) + (0.625 ´ 0.14)
= 0.11
= 11.0%
Hence, he can improve the expected rate of return without any change in the risk of the portfolio.
b)
The expected return is:
rp = x1r1 + x2r2
rp = (0.5 *´ 0.09) + (0.5 ´* 0.14)
= 0.115 = 11.5%
[tex]sP^2 = x_1^2s_1^2 + 2x_1x_2s_1s_2r_1_2 + x_2^2s_2^2[/tex]
sP2 = (0.5)^2(0.10)^2 + 2*(0.5)(0.5)(0.10)(0.16)(0.10) + (0.5)^2(0.16)^2
sP2 = 0.0097
sP = 0.985 = 9.85%
Hence, he can never perform better by investing equal amount in bond portfolio and index fund. The expected return increases to 11.5% and standard deviation decreases to 9.85%.
Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months’ sales. The tiles cost $0.75 each and must be paid for in cash. The company has 28,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: January 13,300 February 18,700 March 13,700 April 15,100 May 8,900 June 7,800
Required: a. & b. Estimate purchases (in units) and cash required to make purchases in January, February, and March.
Answer:
January
purchases = 32,800 units
required cash to pay for purchases = $24,600
February
purchases = 8,900 units
required cash to pay for purchases = $6,675
March
purchases = 7,800 units
required cash to pay for purchases = $5,850
Explanation:
each tile costs $0.75, paid in cash, three month stock
28,000 tiles in stock
estimated sales:
January 13,300 February 18,700 March 13,700 April 15,100 May 8,900 June 7,800January
beginning inventory January 28,000
estimated sales 13,300
desired ending inventory = sales for next three months = 18,700 + 13,700 + 15,100 = 47,500
purchases = 47,500 + 13,300 - 28,000 = 32,800
required cash to pay for purchases = 32,800 x $075 = $24,600
February
beginning inventory January 47,500
estimated sales 18,700
desired ending inventory = sales for next three months = 13,700 + 15,100 + 8,900 = 37,700
purchases = 37,700 + 18,700 - 47,500 = 8,900
required cash to pay for purchases = 8,900 x $075 = $6,675
March
beginning inventory January 37,700
estimated sales 13,700
desired ending inventory = sales for next three months = 15,100 + 8,900 + 7,800 = 31,800
purchases = 31,800 + 13,700 - 37,700 = 7,800
required cash to pay for purchases = 7,800 x $075 = $5,850
The general ledger of Zips Storage at January 1, 2018, includes the following account balances: Accounts Debits Credits Cash $ 25,300 Accounts Receivable 16,100 Prepaid Insurance 13,400 Land 155,000 Accounts Payable $ 7,400 Deferred Revenue 6,500 Common Stock 150,000 Retained Earnings 45,900 Totals $ 209,800 $ 209,800 The following is a summary of the transactions for the year: a. January 9 Provide storage services for cash, $141,100, and on account, $55,700. b. February 12 Collect on accounts receivable, $52,200. c. April 25 Receive cash in advance from customers, $13,600. d. May 6 Purchase supplies on account, $10,600. e. July 15 Pay property taxes, $9,200. f. September 10 Pay on accounts payable, $12,100. g. October 31 Pay salaries, $130,600. h. November 20 Issue shares of common stock in exchange for $34,000 cash. i. December 30 Pay $3,500 cash dividends to stockholders. The following information is available for the adjusting entries. Insurance expired during the year is $7,700. Supplies remaining on hand at the end of the year equal $3,600. Provide services of $12,500 related to cash paid in advance by customers.
Prepare the journal entries for transactions?, income statement and trial balance.
Answer:
Explanation:
The objective of this question is to prepare he journal entries for transactions?, income statement and trial balance.
To start with the journal entries:
Date Account Title and Explanation Debit $ Credit $
Cash 141,100
Jan 9, 2018 Accounts Receivable 57,000
Service Revenue 196,000
(To record service revenue)
Feb 12 Cash 52,200
Accounts Receivable 52,200
(To record cash collection on
accounts receivable )
Apr 25 Cash 13,600
Unearned Revenue 52,200
(To record cash in advance
from customers )
Ma 06 Supplies 10,600
Accounts Payable 10,600
(To record cash purchase of
supplies on account)
Jul 15 Property taxes 9,200
Cash 9,200
(To record payment of
Property taxes )
Sep 10 Account Payable 12,100
Cash 12,100
(To record payment on
accounts payable)
Oct 31 Salaries expense 130,600
Cash 130,600
(To record salaries paid)
Nov 20 Cash 34,000
Common stock 34,000
(To record issues of common
stock)
Dec 30 Dividends 3,500
Cash 3,500
(To record Cash dividends)
Adjusting entries:
Date Account Title and Explanation Debit $ Credit $
Dec 31 Supplied Expense ( $10,600 - 7000
$3,600)
Supplies 7000
(To record the supplies used )
Insurance Expense 7,700
Prepaid Insurance 7,700
(To record Insurance expired)
Unearned Revenue 12,500
Service Revenue 12,500
(To record unearned service
revenue)
As a result of bulkiness and wide columns for the income statement and trial balance which the text editor for typing the answer cannot contain; I've have created a word document showing the table format of the income statement and trial balance.
SEE BELOW FOR THE ATTACHED FILE.
Jones Manufacturing Inc. purchases a component from a Chilean supplier. The demand for that component is exactly 70 units each day. The company is open for business 250 days each year. When the company reorders the product, the lead time from the supplier is exactly 10 days. The product costs $14.00. The company determined that its inventory carrying cost is 20 percent. The company's order cost is $30.00. If the company decides to order 1,750 units each time it places an order, what will be the total annual cost of this policy? (Do not include the product cost in your answer.)
Answer:
$2750
Explanation:
Given that:
Demand for the component = 70 units each day.
Opening days in a year = 250
Reorder time rate = 10 dyas
Cost of product = $14.00
Carrying cost = 20% = 0.2
Order cost = $30.00
So if the company decides to order 1,750 units each time it places an order, the objective of this question is to find the total annual cost of this policy.
The total annual cost = total inventory cost + total ordering cost
where:
Total inventory cost = (ordering quantity/2)*unit holding cost
Total inventory cost = (1750/2) × (0.2 × 14)
Total inventory cost = 2450
Total ordering cost = (annual demand/ordering quantity) × ordering cost
Total ordering cost = (70 × 250/1750) × 30
Total ordering cost = ( 70 × 0.1428571429) × 30
Total ordering cost ≅ 300
Total annual cost = 2450 + 300
Total annual cost = $2750
Kalen is a seventeen-year-old minor who has just graduated from high school. He is attending a university two hundred miles from home and has contracted to rent an apartment near the university for one year at $500 per month. He is working at a convenience store to earn enough income to be self-supporting. After living in the apartment and paying monthly rent for four months, he becomes involved in a dispute with his landlord. Kalen, still a minor, moves out and returns the key to the landlord. The landlord wants to hold Kalen liable for the balance of the payments due under the lease. Discuss fully Kalen's liability in this situation.
Answer:
Kalen is not liable to pay the eight months remaining under the lease,
Explanation:
Kalen is not liable to pay the eight months remaining under the lease, since he has legally disaffirmed from the contract by giving the keys back to the landlord. He is not to be bound to the contract. He can disaffirm the contract but remains liable for the value of goods he used (4 months).
The landlord cannot hold him liable for the remaining payment because As a minor Kalen does not have the legal capacity to enter into a contract except in sport or entertainment. Minors are not bestowed civil or political rights because the law says they are too young to handle these responsibilities.
According to the law a contract is valid when both parties have the legal capacity to enter into the contract. Otherwise it is void. Therefore Kalen owes no liability to her landlord
At the beginning of July, CD City has a balance in inventory of $2,450. The following transactions occur during the month of July.
July 3 Purchase CDs on account from Wholesale Music for $1,350, terms 2/10, n/30.
July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $110.
July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $200.
July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $3,900, that had a cost of $2,050.
July 15 Receive full payment from customers related to the sale on July 12.
July 18 Purchase CDs on account from Music Supply for $2,150, terms 2/10, n/30.
July 22 Sell CDs to customers for cash, $3,250, that had a cost of $1,550.
July 28 Return CDs to Music Supply and receive credit of $110.
July 30 Pay Music Supply in full.
Required:
a. Assuming that CD City uses a perpetual inventory system, record the transactions. (If no entry is required for a transaction/event, state "No journal entry required".)
b. Prepare the top section of the multiple-step income statement through gross profit for the month of July.
Answer:
CD City
a. Journal Entries, using perpetual inventory system:
July 3:
Debit Inventory $1,350
Credit Accounts Payable (Wholesale Music) $1,350
To record purchase of CDs on account, terms, 2/10, n/30.
July 4:
Debit Freight-in $110
Credit Cash $110
To record cash payment for freight.
July 9:
Debit Accounts Payable (Wholesale Music) $200
Credit Inventory $200
To record return of CDs.
July 11:
Debit Accounts Payable (Wholesale Music) $1,150
Credit Cash Discount $23
Credit Cash $1,127
To record full settlement on account.
July 12:
Debit Accounts Receivable $3,900
Credit Sales $3,900
To record sales of CDs on account.
Debit Cost of Goods Sold $2,050
Credit Inventory $2,050
To record the cost of sales.
July 15:
Debit Cash $3,900
Credit Accounts Receivable $3,900
To record cash receipt from customers.
July 18:
Debit Inventory $2,150
Credit Accounts Payable (Music Supply) $2,150
To record purchase of CDs on account, terms, 2/10, n/30.
July 22:
Debit Cash $3,250
Credit Sales $3,250
To record cash sales.
Debit Cost of Goods Sold $1,550
Credit Inventory $1,550
To record cost of sales.
July 28:
Debit Accounts Payable (Music Supply) $110
Credit Inventory $110
To record return of CDs.
July 30:
Debit Accounts Payable (Music Supply) $2,040
Credit Cash $2,040
To record full settlement.
b. Top Section of Multiple-step Income Statement for the month of July:
Sales $7,150
Cost of Goods Sold = ($3,600)
Gross Profit = $3,550
Explanation:
a) Sales
July 12 = $3,900
July 22 = $3,250
Total $7,150
b) Inventory
Beginning Balance = $2,450
July 3 purchase = 1,350
July 9 return = -200
July 12 cost of sales -2,050
July 18 purchase = 2,150
July 22 cost of sales -1,550
July 28 return = -110
Ending Balance = $2,040
c) Cost of Goods Sold
July 12 cost of sales $2,050
July 22 cost of sales 1,550
Total $3,600
Hayes Inc. provided the following information for the year 2015:
Beginning inventory 100 units
Units produced 750 units
Units sold 800 units
Selling price $ 150/unit
Direct materials $35/unit
Direct labor $16/unit
Variable manufacturing overhead $15/unit
Fixed manufacturing overhead $24,000/yr
Variable selling/administrative costs $8/unit
Fixed selling/administrative costs $15,500/yr
What is the unit product cost for the year using absorption costing?
Answer:
Unitary production cost= $98
Explanation:
Giving the following information:
Units produced 750 units
Direct materials $35/unit
Direct labor $16/unit
Variable manufacturing overhead $15/unit
Fixed manufacturing overhead $24,000/yr
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
First, we need to calculate the unitary fixed overhead:
Unitary fixed overhead= 24,000/750= $32
Unitary production cost= 35 + 16 + 15 + 32= $98
When investors follow a "herd instinct," they:________A. invest in something as a group, making it appear more valuable than it is.B. make decisions as a group, inflating the prices of goods somewhat arbitrarily.C. invest in something simply because everyone else is doing it.D. None of these statements is true.
Answer:
The option is C is correct
Explanation:
Herd instinct refers to an inclination in people to think or reason like the majority.
When investors follow a herd instinct it simply mean that they invest in something simply because everyone is doing it. this is to say that an investor or investors is ready to take certain risk in any business that is seen as profitable on the long run or time period.
If the business is profitable and is seen as a good investment, in which everyone or investors are actively participating on it. other investors will key into the idea.
Jimmy Company uses the weighted-average method in its process costing system. The ending work in process inventory consists of 9,000 units. The ending work in process inventory is 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the cost per equivalent unit for the period is $3.75 for material and $1.25 for labor and overhead, what is the balance of the ending work in process inventory account? Select one: a. $41,625 b. $33,750 c. $45,000 d. $31,500
Answer:
The correct answer is A.
Explanation:
Giving the following information:
The ending work in process inventory consists of 9,000 units.
The ending work in process inventory is 100% complete for materials and 70% complete for labor and overhead.
The cost per equivalent unit for the period is $3.75 for material and $1.25.
First, we need to calculate the ending inventory in units for equivalent units:
Direct material= 9,000*1= 9,000 units
Conversion costs= 9,000*0.7= 6,300
Now, the cost of ending inventory:
Direct material= 9,000*3.75= 33,750
Conversion costs= 6,300*1.25= 7,875
Total cost= $41,625
Inventory, often known as stock, refers to the items and materials that a company keeps on hand with the intention of reselling, producing, or using them. Inventory management is largely concerned with defining the shape and location of stocked products.
The correct answer is A. $41,625
The ending work in process inventory consists of 9,000 units.
The ending work in process inventory is 100% complete for materials and 70% complete for labor and overhead.
The cost per equivalent unit for the period is $3.75 for material and $1.25.
Calculation of the ending inventory:
Direct material= [tex]9,000\times1[/tex]= 9,000 units
Conversion costs=[tex]9,000\times0.7[/tex]= 6,300
Now, the cost of ending inventory:
Direct material= [tex]9,000\times3.75[/tex]= 33,750
Conversion costs= [tex]6,300\times1.25[/tex]= 7,875
Total cost= $41,625
To know more about the calculation of the ending inventory, refer to the link below:
https://brainly.com/question/25015918
The dean of a highly reputed business school has decided to pursue a coveted accreditation for the college. To get the faculty's buy-in and support, she created a faculty-driven process whereby members of the faculty participate and carry out the accreditation process under her guidance. This approach has increased the commitment of the faculty, who now have a stake in seeing the process succeed and the goal of accreditation accomplished. What influence tactic did the dean use?
Answer:
Consultation.
Explanation:
In the scenario observed in the question, it can be seen that the dean used the consultation tactic.
This tactic can be defined as the influencing leader seeking support from others to influence a group. This is an effective approach to increase group satisfaction due to the value of democratic decision-making.
The benefits of this technique are described in the question, such as the increased commitment of the faculty, who are now interested in seeing the process succeed and the objective of accreditation fulfilled.
On September 12, Vander Company sold merchandise in the amount of $4,600 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $3,175. Vander uses the periodic inventory system and the gross method of accounting for sales. On September 14, Jepson returns some of the merchandise. The selling price of the merchandise is $400 and the cost of the merchandise returned is $280. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Vander makes on September 18 is:
Answer:
Dr Cash 4,116
Dr Sales discounts 84
Cr Accounts receivable 4,200
Explanation:
Vander Company Journal entry
Dr Cash 4,116
(4,200-82)
Dr Sales discounts 84
Cr Accounts receivable 4,200
Calculation of Sales discounts
4,200*2%
=84
Merchandise
(4,600-400)
=4,200
ROI and Residual Income The following investment opportunities are available to an investment center manager: Project Initial Investment Annual Earnings A $ 800,000 $ 90,000 B 100,000 20,000 C 300,000 25,000 D 400,000 60,000 Required: a. If the investment manager is currently making a return on investment of 16 percent, which project(s) would the manager want to pursue
Answer:
B
Explanation:
ROI = Operating income / Operating assets
ROI for proejct A=$90,000/$800,000=11.25%
ROI for Project B=$20,000/$100,000=20% ROI for Project C=$25,000/$300,000=8.33% ROI for Project D=$60,000/$400,000=15%
If ROI is 16%, project B should be chosen because the ROI is greater than 16%
I hope my answer helps you
Answer:
Project B
Explanation:
The return on investment(ROI)=annual earnings on investment/initial investment
For project A,return on investment=$90,000/$800,000=11.25%
For project B,return on investment=$20,000/$100,000=20.00%
For project C,return on investment=$25,000/$300,000=8.33%
For project D,return on investment=$60,000/$400,000=15.00%
Since the investment manager is only interested in project that has at least 16% return on investment,the only project worthy of investing in is project B with return on investment of 20%
There was a dispute between an automobile insurance company and its insured concerning value in the loss of a truck. The insurance policy required arbitration of disputes. Each party selected an arbitrator; then these two, when unable to agree, selected a third party as umpire. The umpire, without consulting anyone or receiving any testimony, fixed the value of the loss. If challenged, will a court set aside this award?Why or why not?
Answer: The court has no reason to set aside this award.
Explanation:
According to the facts of the case, the arbitrators for both parties were unable to decide and therefore they selected another third person which is the umpire) to help decide on the matter.
Under these circumstances, the third person who is the umpire becomes the chair and will act as a trial court. The umpire award is identical to a ruling given by the trial court and is enforced. The third party that is, the umpire isn't enforced to give any explanation or discussion before giving the award. In case the award isn't followed by any of the parties, it can be enforced by the court. The court has no reason to set aside this award.