Answer:
The correct answer will be "The entity assumption ". The further explanation is given below.
Explanation:
The entity hypothesis or assumptions that are also considered separate legal entity hypothesis claims that a corporation is regarded as something of an autonomous organization.Therefore a separate entity that has it's own finance importance and position that would be independent of the legislature as well as any company data is separated from its owner's accounts.So that the above is the right answer.
If the assets of a company increase by $55,000 during the year and its liabilities increase by $25,000 during the same year, then the change in equity of the company during the year must have been:
Answer:
Increase of $30,000
Explanation:
Increase in Company asset- Increase in liabilities
Increase in Company asset =$55,000
Increase in liabilities =$25,000
Hence:
$55,000 -$25,000
=$30,000
Therefore the change in equity of the company must have an increase of $30,000
Retail companies try to find a. the least profitable method of transferring goods from warehouses to stores. b. the least costly method of transferring goods from warehouses to stores. c. the most costly method of transferring goods from warehouses to stores. d. the largest number of goods to transfer from warehouses to stores.
Answer:
b. the least costly method of transferring goods from warehouses to stores.
Explanation:
The retail company should find the most efficient and cost effective means of transportation.
The the least profitable and most costly method of transferring goods from warehouses to stores would reduce the profit margins of retail stores and the stores would want to maximise profit.
1. Cash balance per bank, July 31, $7,428.
2. July bank service charge not recorded by the depositor $58.
3. Cash balance per books, July 31, $7,364.
4. Deposits in transit, July 31, $2,600.
5. Note for $2,000 collected for Lohse in July by the bank, plus interest $36. The collection has not been recorded by the company, and no interest has been accrued.
6. Outstanding checks, July 31, $686.
Prepare a bank reconciliation at July 31, 2010
Answer:
8a
3
+27b
3
+64c
3
−72abc
Your grandfather put some money in an account for you on the day you were born. You are now 18 years old and are allowed to withdraw the money for the first time. The account currently has $3996 in it and pays an 8% interest rate.
a. How much money would be in the account if you left the money there until your twenty-fifth birthday?
b. What if you left the money until your sixty-fifth birthday?
c. How much money did your grandfather originally put in the account?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Value at 18= $3,996
Interest rate= 8%
To calculate the final value, we need to use the following formula:
FV= PV*(1+i)^n
A) Number of years= 7
FV= 3,996*(1.08^7)= $6,848.44
B) Number of years= 47
FV= 3,996*(1.08^47)= $148,779.12
C) Finally, we need to determine the original investment. We need to isolate the present value from the formula:
PV= FV/(1+i)^n
PV= 3,996/(1.08^18)
PV= $999.995
business sofware programs make it possible to
Answer:
increase productivity in office setting
The many identical residents of Whoville love drinking Zlurp. Each resident has the following willingness to pay for the tasty refreshment:
Quantity Willingness to Pay (Dollars)
First bottle 5
Second bottle 4
Third bottle 3
Fourth bottle 2
Fifth bottle 1
Further bottles 0
The cost of producing a bottle of Zlurp is $1.50, and the competitive suppliers sell it at this price. (The supply curve is horizontal.)
Each Whovillian will consume _____ bottles and receive a consumer surplus of $_____.
Producing Zlurp creates pollution. Each bottle has an external cost of $1.
Taking this additional cost into account, total surplus per person in the allocation you previously determined decreases to $_____.
Cindy Lou Who, one of the residents of Whoville, decides on her own to reduce her consumption of Zlurp by 1 bottle.
Cindy's consumer surplus (ignoring the cost of pollution she experiences) is now $_____. Her decision _____ (Increases or Decreases) total surplus in Whoville by $_____.
Mayor Grinch imposes a $1 tax on each bottle of Zlurp.
Consumption per person is now_____bottles. This yields a per-person consumer surplus of $_____not including the cost of pollution, a per-person external cost of $_____, and government revenue of $_____ per person. Total surplus per person is now $_____as a result of this policy. (Hint: Total surplus is equal to consumer surplus minus the external cost of pollution plus government revenue.)
Based on your calculations, you _____ (Would or Would not) support the mayor's policy because it _____ (Increases or Decreases) welfare compared to before the tax.
Answer and Explanation:
The computations are given below:
1) This 4 is chosen because the marginal benefit will be less than the marginal cost and if it wants to go above that, the price of the drink is greater than the willingness to pay
2) The consumer surplus is
= (5 - 1.5) + (4 - 1.5) + (3 - 1.5) + (2 - 1.5)
= 8
3) Total surplus decreases to
As we know that
= Consumer surplus - external cost
= 8 - 4
= 4
4) Now Cindy's Consumer surplus is
= (5 - 1.5) + (4 - 1.5) + (3 - 1.5)
= 7.5
5) Increases
6) 8 - 7.5 = 0.5
7) Consumption = 3 bottles
8) Consumer surplus is
= (5 - 2.5) + (4 - 2.5) + (3 - 2.5)
= 4.5
9) External cost = 3 × 1 = 3 bottle
10) Government revenue = 3 × 1 = 3 bottle
11) Total surplus is
As we know that
= Consumer surplus - external cost of pollution + government revenue
= 4.5 - 3 + 3
= 4.5
12) would
13) increases
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:Sales $3,000,000Net operating income $150,000Average operating assets $750,000Consider each of the following requirements independently.Requirement 1:Compute the company's return on investment (ROI).Return on investment % ?Requirement 2:The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 200%, with no increase in average operating assets. What would be the company's ROI?Return on investment % ?Requirement 3:The chief financial officer of the company believes a more realistic scenario would be a $1,000,000 increase in sales, requiring an $250,000 increase in average operating assets, with a resulting $200,000 increase in net operating income. What would be the company's ROI in this scenario?Return on investment %?
Answer:
1) ROI= 20%
2) ROI=15%
3) ROI = 35%
Explanation:
ROI is the proportion of capital invested that is earned as net operating income. It calculated as
Return on Investment = Net income/Average operating asset
= 150,000/750,000 × 100 = 20%
2.
ROI with a 50% increase in sales and 200% increase in average assets
ROI = (150%× 150,000)/(200%× 750,000)× 100= 15%
3.
ROI wth a 1,000,000 increase in sales
ROI = ( 150,000+200,000)/(250,000+ 750,000)× 100=35%
Answer
1) ROI= 20%
2) ROI=15%
3) ROI = 35%
Suppose an economy is initially operating at long-run equilibrium when there is an increase in consumer optimism about the economy. Everything else held constant, the immediate impact of this shock will be a(n) ______ in the aggregate price level, a(n) ______ in real GDP.
Answer:
The correct option is Increase and Decrease respectively
Explanation:
Consider a no-load mutual fund with $528 million in assets and 16 million shares at the start of the year and with $578 million in assets and 17 million shares at the end of the year. During the year investors have received income distributions of $3 per share and capital gain distributions of $0.45 per share. Assuming that the fund carries no debt, and that the total expense ratio is 2%, what is the rate of return on the fund
Answer:
11.42%
Explanation:
NAV0= Mutual fund in asset/ Share
$528 million/ 16 million shares
=33
NAV1=578-578(0.02)/17
=578-11.56/17
=566.44/17
=33.32
Hence:
Return NAV1-NAV0+Received Income distribution +Capital gain distribution /NAVO
NAV0=33
NAV1=33.32
Received Income distribution = 3
Capital gain distribution= 0.45
33.32-33+3+0.45/33
=3.77/33
=0.1143×100
=11.42%
research the telemedicine industry and describe two companies offering services . what are the pros and cons of offering medical services this way , and is there government or industry guidance for this industry ? ( aacsb : communication ; reflective thinking )
Answer:
Telemedicine is a tool that is used for medical information change from one area to another area through electronic communications fro the improvement of clinical health status of the patient.
The Two companies that offers Telemedicine are CC and CADo
CC it involves practicing physicians that are board certified to provide various range of Telemedicine services around the world. some services that CC cover s are primary care, home care, urgent care.
CADo refers to a service that assist in connecting patient with related doctors via phone and online. this company is specialized to offer basic medical services which does not require visits in person.
The pros of Telemedicine are that,(1) it helps patient to save health care costs (2) It increases patient engagement.
The cons are (1) It requires equipment and technical training. (2)It reduces in persons interactions with the related doctors.
Yes there are some governmental or industrial rules for Telemedicine industry. it helps this industry to broaden their traditional practice of medicine towards outside the wall of a typical medical practice.
Explanation:
Solution
Telemedicine is a technique that is used for medical information interchange from one area to another area through electronic communications for the improvement of clinical health status of the patient.
Telemedicine has a variety of growing applications and services that uses email, two way videos, wireless tools, smart phones and other types of telecommunication technology.
Two companies that offers Telemedicine is given below:
(1) CC: CC was established in the year 2010. it works with practicing physicians that are board certified to provide various range of Telemedicine services around the world. some services that CC cover s are primary care, home care, urgent care.
(2) CADo : It is a service that helps to connect patient with doctors though phone and online. this company is specialized to offer basic medical services which does not require visits in person
Pros and Cons of Telemedicine is as follows:
Pros:
It is more accessible and convenient health care for the patientsIt helps patient to save health care costsIt increases patient engagementIt provide better quality of patient careCons:
It requires equipment and technical trainingIt reduces in persons interactions with the related doctorsIn this service come Telemedicine models reduce care continuityYes there are some governmental or industrial guidance for Telemedicine industry. it helps this industry to extend their traditional practice of medicine towards outside the wall of a typical medical practice.
In order to have money for their son's college education, a young couple started a savings plan into which they made intermittent deposits. They started the account with a deposit of $3,000 (in year zero) and then added $5,000 in years two, five, six, and added $6,000 in year nine and ten. What is the amount they had in the account in year ten if they earned interest at 15% per year
Answer:
$59,129.00
Explanation:
The formula for the future value is P(1+i)^n
P= 3000, 5000, 6000
i= 15%
n= 2,3,6,9,10
FV= 3000 x 1.15^10 + 5000 x 1.15^8 + 5000 x 1.15^5 + 5000 x 1.15^4 + 6000 x 1.15^ 1 + 6000 x 1.15^0
FV= 3000 X 4.045 + 5000 X 3.059 + 5000 X 2.011 + 5000 x 1.749 + 6000 x 1.15 + 6000 X 0
Fv= 12135 + 15294 + 10055 + 8745 + 6900 + 6000
FV = $59,129.00
Cost-volume-profit analysis can also be used in making personal financial decisions. For example, the purchase of a new car is one of your biggest personal expenditures. It is important that you carefully analyze your options. Suppose that you are considering the purchase of a hybrid vehicle. Let’s assume the following facts. The hybrid will initially cost an additional $6,000 above the cost of a traditional vehicle. The hybrid will get 30 miles per gallon of gas, and the traditional car will get 20 miles per gallon. Also, assume that the cost of gas is $2.40 per gallon. Using the facts above, answer the following questions.
a. What is the variable gasoline cost of going one mile in the hybrid car? What is the variable cost of going one mile in the traditional car?
b. Using the information in part (a), if "miles" is your unit of measure, what is the "contribution margin" of the hybrid vehicle relative to the traditional vehicle? That is, express the variable cost savings on a per-mile basis.
c. How many miles would you have to drive in order to break even on your investment in the hybrid car?
d. What other factors might you want to consider?
Answer:
A) 0.08; 0.12
B) 0.04
C) 150,000 miles
D) Insurance cost, carbon emission, Second hand value, Licensing fee, E. t. C
Explanation:
A)
What is the variable gasoline cost of going one mile in the hybrid car?
The variable gasoline cost = ( cost per gallon / total miles per gallon)
Cost per Gallon = $2.40
Miles per gallon(hybrid car) = 30
Variable gasoline cost(hybrid car) =( 2.40/30) = 0.08
What is the variable cost of going one mile in the traditional car?
The variable gasoline cost = ( cost per gallon / total miles per gallon)
Cost per Gallon = $2.40
Miles per gallon(traditional car) = 20
Variable gasoline cost(hybrid car) =( 2.40/20) = 0.12
B.) variable cost savings on a per-mile basis.
Variable cost difference (0.12 - 0.08) = 0.04
C.) break even point in miles
(additional fixed cost / cost saving per mile)
(6000 / 0.04) = 150,000 miles
D) other factors may include ;
Insurance cost
carbon emission
Second hand value
Licensing fee and so on
The variable gasoline cost in the hybrid car and traditional car is $0.09 and $0.12 per miles.
Case: 1
The variable gasoline cost in the hybrid car = $2.40/30
The variable gasoline cost in the hybrid car = $0.08 per mile
The variable gasoline cost in the traditional car = $3.60/20
The variable gasoline cost in the traditional car $0.18
Case: 2
Savings per mile = The variable gasoline cost in the hybrid car - The variable gasoline cost in the traditional car
Savings per mile = ($0.18 – $0.08).
Savings per mile = $0.10
Case: 3
Break even point = Fixed cost / Savings per mile
Break even point = 6,000 / 0.10
Break even point = 600,000 miles
Case: 4
You should also examine a number of other elements in your analysis. Do the cars' estimated maintenance bills, insurance prices, licensing fees, or final resale value differ. In addition, several jurisdictions and corporations provide subsidies for hybrid car purchases.
Non-financial considerations, such as a desire to cut emissions, may also impact your decision.
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Determine proper classification (LO11-1) Wi-Fi, Inc., has the following selected transactions during the year. Required: Select the section of the statement of cash flows in which each of these items would be reported: operating activities (indirect method), investing activities, financing activities, or a separate noncash activities note Transactions Activities 1. Issues $20 million in bonds 2. Purchases equipment for $ 3. Pays a $20,000 account payable 4. Collects a $15,000 account receivable 5. Exchanges land for a new patent. Both are valued at $300,000. 6. Declares and pays a cash dividend of $100,000 7. Loans $50,000 to a customer, accepting a note receivable. 8. Pays $75,000 to suppliers for inventory. $80,000
Answer:
a. Operating activities (indirect method)
1. Pays a $20,000 account payable
2. Collects a $15,000 account receivable
3. Pays $75,000 to suppliers for inventory.
b. Investing activities
Purchases equipment for $
Loans $50,000 to a customer, accepting a note receivable.
c. Financing activities
Issues $20 million in bonds
Declares and pays a cash dividend of $100,000
d. A separate noncash activities note
Exchanges land for a new patent. Both are valued at $300,000.
Explanation:
The categorisation and their effects are explained as follows:
a. Operating activities (indirect method)
1. Pays a $20,000 account payable: This a cash outflow and its effect is a reduction in cash flow from operating activities.
2. Collects a $15,000 account receivable: This a cash inflow and its effect is an increase cash flow from operating activities.
3. Pays $75,000 to suppliers for inventory: This a cash outflow and its effect is a reduction in cash flow from operating activities.
b. Investing activities
1. Purchases equipment for $: This a cash outflow and its effect is a reduction in cash flow from investing activities.
2. Loans $50,000 to a customer, accepting a note receivable: This a cash outflow and its effect is a reduction in cash flow from investing activities.
c. Financing activities
1. Issues $20 million in bonds: This a cash inflow and its effect is an increase in cash flow from financing activities.
2. Declares and pays a cash dividend of $100,000: This a cash outflow and its effect is a reduction in cash flow from financing activities.
d. A separate noncash activities note
1. Exchanges land for a new patent. Both are valued at $300,000: This is a noncash transaction that neitheir leads to the outlow nor inflow of cash.
Here, we are to classify the following information to operating activities, investing activities, financing activities, or separate noncash activities.
1. Issues $20 million in bonds will be classified as Financing activities.
2. Purchases equipment will be classified as will be classified as Investing activities.
3. Pays a $20,000 account payable will be classified as Operating activities.
4. Collects a $15,000 account receivable will be classified as Operating activities.
5. Exchanges land for a new patent will be classified as separate noncash activities.
6. Declares and pays a cash dividend of $100,000 will be classified as Financing activities.
7. Loans $50,000 to a customer accepting a note receivable will be classified as Investing activities.
8. Pays $75,000 to suppliers for inventory. $80,000 will be classified as Operating activities.
See similar classification here
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Marcy and Liz developed a new jewelry design. They were fortunate to get the attention of a large online retailer who was willing to fund the production of the jewelry abroad, as long as the designers agreed to sell their design through its outlets for the first two years. The retailer was asking the designers to agree to __________________. exclusive distribution intensive distribution multi-level distribution selective distribu
Answer:
exclusive distribution
Explanation:
The exclusive distribution refers to the agreement between the distributor and the manufactured stated that the manufactured will only sell the products and services to the distributor only no other person is involved in this agreement. There is a binding agreement between the manufactured and distributor
So according to the given situation, it is mentioned that the designers ready to sell their designs for the first two years to the retailers which shown that there is an exclusive distribution
Patterson Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $545,000, a 7-year life, and $150,000 salvage value. The increase in cash flow each year of the equipment's life would be as follows:
Year 1 $ 99,000
Year 2 $ 91,000
Year 3 $ 89,000
Year 4 $ 78,000
Year 5 $ 75,000
Year 6 $ 70,000
Year 7 $ 64,000What is the payback period?
Answer:
6.67 years
Explanation:
Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows
Amount invested = $-545,000
Total cash flows = $502,000
In the first year, $-545,000 + $99,000 = $-446,000 is recovered.
In the second year, $-446,000 + 91,000 = $-355,000 is recovered
In the third year , $-355,000 + $89,000 = $-266,000 is recovered
In the fourth year, $-266,000 + $78,000 = $-188,000 is recovered
In the fifth year, $-188,000 + $75,000 = $-113,000 is recovered
In the sixth year, $-113,000 + $70,000 = -43,000 is recovered
I'm the 7th year, -43,000 + 64,000 = $21,000 is recovered
The total amount in recovered between the 6th and 7th year.
Pay back period = 6 years + 43,000 / 64,000 = 6.67 years
I hope my answer helps you
Statement of Cash Flows The following are several items involving Tejera Company's cash flow activities for 2019: Net income, $60,400 Receipt from issuance of common stock, $32,000 Payment for purchase of equipment, $41,500 Payment for purchase of land, $19,600 Depreciation expense, $20,500 Patent amortization expense, $1,200 Payment of dividends, $21,000 Decrease in salaries payable, $2,600 Increase in accounts receivable, $10,300 Beginning cash balance, $30,700 Required Prepare Tejera's statement of cash flows for 2019 using the indirect method. Use a minus sign for any negative amounts. Tejera Company Statement of Cash Flows For Year Ended December 31, 2019 Net Cash Flow From Operating Activities $ Adjustments for differences between income flows and cash flows from operating activities: Net cash provided by operating activities $ Cash Flows From Investing Activities $ Net cash used for investing activities Cash Flows From Financing Activities $ Net cash provided by financing activities $ $
Answer:
Tejera Company
Statement of Cash Flows
December 31, 2019
Cash flows from operating activities:
Net income $60,400
Adjustments to net income $8,800
Depreciation expense $20,500Patent amortization expense $1,200Increase in accounts receivables -$10,300Decrease in salaries payable -$2,600Total cash flow from operating activities $69,200
Cash flow from investing activities:
Purchase of equipment -$41,500
Purchase of land -$19,600
Total cash flow from investing activities -$61,100
Cash flow from financing activities:
Issuance of common stock $32,000
Dividends paid -$21,000
Total cash flow from financing activities $11,000
Net increase in cash $19,100
Beginning cash balance 2019 $30,700
Ending cash balance 2019 $49,800
John has a portfolio consisting of equal proportions of 5 securities. Susan also has a portfolio of the same five securities but the weights of each security are not equal. Which of the statements below MUST be TRUE?
a) Because Susan has an unequal distribution of securities, her portfolio beta must be greater than John's.
b) Because Susan has an unequal distribution of securities, her portfolio beta must be less than John's.
c) Without additional information, we cannot be certain whose portfolio beta is greater.
d) Because the portfolios contain the same securities, the beta of each portfolio must be the same.
Answer:
c) Without additional information, we cannot be certain whose portfolio beta is greater.
Explanation:
When comparing portfolios of the same security composition but different weights we need to know the beta of each security in order to make a valid comparism between the two securities.
Beta is defined as a measure of the volatility of a security compared to the whole market. It considers the systemic risk and the expected returns from a security or portfolio.
In determining beta we compare against a particular benchmark.
Since more information is not given on the securities and their weights in the two portfolios we cannot determine which one has a higher beta.
Equity method for stock investment Obj. 3 Show Me How icon At a total cost of $5,600,000, Herrera Corporation acquired 280,000 shares of Tran Corp. common stock as a long-term investment. Herrera Corporation uses the equity method of accounting for this investment. Tran Corp. has 800,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation. Journalize the entries by Herrera Corporation to record the following information: Tran Corp. reports net income of $600,000 for the current period. A cash dividend of $0.50 per common share is paid by Tran Corp. during the current period. Pencil Why is the equity method appropriate for the Tran Corp. investment
Answer and Explanation:
The journal entries are shown below:
1 Investment in Tran Corp $210,000
To Investment Income (280,000 ÷ 800,000 × $600,000) $210,000
(Being the investment in Tran corp. is recorded)
For recording this we debited the investment in tran corp as it increased the assets and credited the investment income as it also increased the revenue
2 Cash (280,000 × $0.50) $140,000
To Investment in Tran Corp $140,000
(Being the payment of cash dividend is recorded)
For recording this we debited the cash as it increased the assets and credited the investment in tran corp as it decreased the assets
(B) The equity method is appropriate as the Herrera owns 35% which come from
= $280,000 ÷ $800,000
= 35%
And it can be exercised when there is a significant influence or effect over the investor
Denzel Brooks opened a Web consulting business called Venture Consultants and completes the following transactions in March March 1 Brooks invested $175,000 cash along with $26,000 n office equipment in the company in exchange for common stock. 2 The company prepaid $6,000 cash for six months rent for an office. (Hint: Debit Prepaid Rent for $6,000.) 3 The company made credit purchases of office equipment for $3,800 and office supplies for $2,200. Payment is due within 10 days. 6 The company completed services for a client and immediately received $4,500 cash 9 The company completed a $10,900 project for a client, who must pay within 30 days. 12 The company paid $6,e00 cash to settle the account payable created on March 3 19 The company paid $6,400 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $6,400.) 22 The company received $4,000 cash as partial payment for the work completed on March 9 25 The company completed work for another client for $5,330 on credit 29 The company paid $5,400 cash in dividends 30 The company purchased $1,700 of additional office supplies on credit. 31 The company paid $1,400 cash for this month's utility bill.
Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690). 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of April 30.
Answer:
1. Prepare general journal entries to record these transactions using the following titles:
March 1
Dr Cash (101) 175,000
Dr Office Equipment (163) 26,000
Cr Common Stock (307) 201,000
March 2
Dr Prepaid Rent (131) 6,000
Cr Cash (101) 6,000
March 3
Dr Office Equipment (163) 3,800
Dr Office Supplies (124) 2,200
Cr Accounts Payable (201) 6,000
March 6
Dr Cash (101) 4,500
Cr Services Revenue (403) 4,500
March 9
Dr Accounts Receivable (106) 10,900
Cr Services Revenue (403) 10,900
March 12
Dr Accounts Payable (201) 6,000
Cr Cash (101) 6,000
March 19
Dr Prepaid Insurance (128) 6,400
Cr Cash (101) 6,400
March 22
Dr Cash (101) 4,000
Cr Accounts Receivable (106) 4,000
March 25
Dr Accounts Receivable (106) 5,330
Cr Services Revenue (403) 5,330
March 29
Dr Dividends (319) 5,400
Cr Cash (101) 5,400
March 30
Dr Office Supplies (124) 1,700
Cr Accounts Payable (201) 1,700
March 31
Dr Utilities Expense (690) 1,400
Cr Cash (101) 1,400
2. Post the journal entries from part 1 to the ledger accounts.
Account Description Debit Credit
101 Cash 175,000
6,000
4,500
6,000
6,400
4,000
5,400
1,400
101 Cash 158,300
106 Accounts Receivable 10,900
4,000
5,330
106 Accounts Receivable 12,330
124 Office Supplies 2,200
1,700
124 Office Supplies 3,900
128 Prepaid Insurance 6,400
131 Prepaid Rent 6,000
163 Office Equipment 26,000
3,800
163 Office Equipment 29,800
201 Accounts Payable 6,000
6,000
1,700
201 Accounts Payable 1,700
307 Common Stock 201,000
319 Dividends 5,400
403 Services Revenue 4,500
10,900
5,330
403 Services Revenue 20,730
690 Utilities Expense 1,400
3. Prepare a trial balance as of April 30.
Account Description Debit Credit
101 Cash 158,300
106 Accounts Receivable 10,900
106 Accounts Receivable 12,330
124 Office Supplies 3,900
128 Prepaid Insurance 6,400
131 Prepaid Rent 6,000
163 Office Equipment 29,800
201 Accounts Payable 1,700
307 Common Stock 201,000
319 Dividends 5,400
Retained earnings 11,000
403 Services Revenue 20,730
690 Utilities Expense 1,400
TOTAL 234,430 234,430
Purchases and Cash Payments Journals
Transactions related to purchases and cash payments completed by Wisk Away Cleaning Services Inc. during the month of May 20Y5 are as follows:
May 1. Issued Check No. 57 to Bio Safe Supplies Inc. in payment of account, $210.
3. Purchased cleaning supplies on account from Brite N' Shine Products Inc., $130.
8. Issued Check No. 58 to purchase equipment from Carson Equipment Sales, $2,140.
12. Purchased cleaning supplies on account from Porter Products Inc., $180.
15. Issued Check No. 59 to Bowman Electrical Service in payment of account, $110.
18. Purchased supplies on account from Bio Safe Supplies Inc., $240.
20. Purchased electrical repair services from Bowman Electrical Service on account, $90.
26. Issued Check No. 60 to Brite N’ Shine Products Inc. in payment of May 3 invoice.
31. Issued Check No. 61 in payment of salaries, $4,110.
Wisk Away Cleaning Services Inc. uses the following accounts:
Cash 11
Cleaning Supplies 14
Equipment 18
Accounts Payable 21
Salary Expense 51
Electrical Service Expense 53
Prepare a purchases journal and a cash payments journal to record the above transactions in chronological order. If an amount box does not require an entry, leave it blank and select "No entry required" from the dropdown.
Answer and Explanation:
The preparation is shown below:
PURCHASES JOURNAL
DATE Account Post. Accounts Cleaning Other Post. Amt
Credited Ref Payable Cr. Supplies Dr. Accounts Dr. Ref.
20Y5
May 3 Brite N' Shine Products Inc. ✔ $130 $130 No entry required
May 12 Porter Products Inc. ✔ $180 $180 No entry required
May 18 Bio Safe Supplies Inc. ✔ $240 $240 No entry required
May 20 Bowman Electrical Service ✔ $90 Electrical Service Expense 53 $90
May 31 Total $640 $550
$90
($21) ($14)
CASH PAYMENT JOURNAL
DATE Ck. No Account Post. Other Account Cash
Debited Ref Accounts Dr. Payable Dr. Cr.
May 1 57 Bio Safe Supplies Inc. ✔ $210 $210
May 8 58 Equipment 18 $2,140 $2,140
May 15 59 Bowman Electrical Service ✔ $110 $110
May 26 60 Brite N' Shine Products Inc. ✔ $130 $130
May 31 61 Salary Expense 51 $4,110
May 31 Total $6,250 $450 $2,590
(21) (11)
Chipper Payroll Services knows the demand for its services during the current year is around 50,000 workerhours and with current operations covers all customer demand (i.e., Chipper’s capacity currently is 50,000 worker-hours). Chipper is planning on a 5% growth rate each year. Chipper’s current office space and staff will eventually outgrow demand. Expanding the office space and staff depends mostly on the hours that will be worked total in the facility. If we let x=total worker-hours, Chipper will incur a one- time cost of $15x to expand [i.e., if Chipper goes from 50,000 worker-hour capacity to 70,000 worker-hour capacity, it will incur a cost of $15x(70,000-50,000) = $300,000]. Chipper needs to expand its current space and staff, since any new business will be lost to its competitors if it cannot accommodate the new customers. Each customer serviced incurs a variable cost of $3.00 per worker-hour. It also costs Chipper $6.00 per worker-hour of capacity per year (i.e., if Chipper has 70,000 worker hours total then Chipper incurs $6x70,000 = $420,000 per year in costs). Chipper garners $25 per worker hour from its customers.
Required:
Determine what the projected revenue, costs, and potential profits would be over the next 10 years based on the current capacity, 50,000 worker-hours, an expansion to 70,000 workerhours, and an expansion to 90,000 worker hours.
Answer: ..,,..
Explanation:
The following transactions of Sandy Cruz occurred during 2018: LOADING...(Click the icon to view the transactions.)
Requirements
1. Journalize required transactions, if any, in Cruz's general journal. Explanations are not required.
2. What is the balance in Estimated Warranty Payable assuming a beginning balance of $0?
Requirement
1. Journalize required transactions, if any, in Cruz's general journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries. For transactions that do not require an entry, make sure to select "No entry required" in the first cell in the "Accounts" column and leave all other cells blank.)
Apr. 30: Cruz is party to a patent infringement lawsuit of $ 220,000. Cruz's attorney is certain it is remote that Cruz will lose this lawsuit.
Jun. 30 Estimated warranty expense at 4% of sales of $360,000.
Jul. 28 Warranty claims paid in the amount of $6.400
Sep. 30 Cruz is party to a lawsuit for copyright violation of $150,000. Cruz's attorney advises that is probable Cruz will lose this lawsuit. The attorney estimates the loss at $150,000
Dec. 31 Cruz estimated warranty expense on sales for the second half of the year of $500,000 at Jun Choog Dec 31
Answer:
1.
April 30
No entry required
This is because Cruz's attorney is certain it is remote that Cruz will lose this lawsuit.
June 30
DR Warranty Expense $14,400
CR Warranty Liability $14,400
Working = 360,000 * 4%
= $14,400
July 28
DR Warranty Liability $6,400
CR Cash $6,400
September 30
DR Lawsuit Loss A/c $150,000
CR Lawsuit Loss Liability $150,000
December 21
DR Warranty Expense $20,000
DR Warranty Liability $20,000
Workings ( Original question says 4%.)
= 4% * 500,000
= $20,000
2. Balance on Estimated Warranty Liability Account
June 30 14,400
July 28 (6,400) -
Dec 21 20,000 +
= $28,000 Credit
Nick is going to be graduating in December and has already accepted a position with a major accounting firm. His employer will provide either a 401k plan with a 2 for 1 match or a lump sum annuity that he can use to invest on his own. Nick chooses the 401k with match. Which reason below validates his rationale?
1. The 401k plan allows him to use pre-tax dollars to invest for his retirement.
2. The annuity may accompany fees, which could reduce the cost of his overall investment.
3. The employer match provides free money from his employer for his retirement.
4. All of the Above are valid reasons
Answer:
1. The 401k plan allows him to use pre-tax dollars to invest for his retirement.
Explanation:
A 401k plan allows an individual to save money for retirement without paying income taxes for each contribution that he/she makes to the retirement plan. The individual will pay income taxes only after he/she retires and starts withdrawing out of the 401k plan (it is a tax deferred account). Employer's matching of 401k contributions are also taxed once you start withdrawing money. The tax free contributions allow the 401k account to grow faster and earn more money.
Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is the cost of materials. The following data are available for August: Fatboy Screamer Total Number of units assembled 990 1,980 2,970 Materials cost per unit $ 2,600 $ 3,600 Other costs: Direct labor $ 3,207,600 Indirect materials 534,600 Other overhead 1,603,800 Required: Howrley-David uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in August.
Answer:
Cost per Unit Fatboy= $ 27800
Screamer Cost per unit = $3779.80
Explanation:
Howrley-David, Inc.
Fatboy Screamer Total
Units Assembled 990 1,980 2,970
Materials cost per unit $ 2,600 $ 3,600
Material Costs 2574000 7128000
Other costs:
Direct labor $1069200 2138400 $ 3,207,600
Indirect materials 534, 600
Other overhead 1,603,800
FoH 712800 1425600 2138400
Total Costs 2752,2000 7484000
No of units 990 1980
Cost per Unit 27800 3779.80
The total costs have been added and then divided with the number of units to get the cost per unit.
Direct Labor Costs =Total Direct Labor Costs/ Total number of units* required number of units
DLC for Fatboy= $ 3,207,600 /2970 *990= $1069200
DLC for Screamer= $ 3,207,600 /2970 *1980= 2138400
FActory Overheads = Total Factory Costs/ Total Units ( Required Units)
FOH for Fatboy= 534, 600 +1,603,800/2970 * 990= 712800
FOH for Screamer = 534, 600 +1,603,800/2970 * 1980= 1425600
On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 28,000 shares of 6%, $50 par, cumulative preferred stock outstanding. On February 28, 2021, Brisbane purchased 22,000 shares of common stock on the open market as treasury stock paying $38 per share. Brisbane sold 5,800 treasury shares on September 30, 2021, for $43 per share. Net income for 2021 was $178,905. Also outstanding during the year were fully vested incentive stock options giving key officers the option to buy 48,000 common shares at $38. The market price of the common shares averaged $48 during 2021.
Compute Brisbane's basic and diluted earnings per share for 2021.
Answer:
basic earnings per share = $1.14
diluted earnings per share = $1.02
Explanation:
net income = $178,905
preferred stocks = 28,000 x 6% x $50 = $84,000
January 1, 100,000 shares outstanding x 12/12 = 100,000
February 28, purchased -22,000 treasury stocks x 10/12 = -18,333
September 30, sold 5,800 treasury stocks x 3/12 = 1,450
total weighted average stocks = 83,117
diluted stocks = [($48 - $38) / $48] x 48,000 = 10,000
basic earnings per share = (net income - preferred dividends) / weighted average stocks = ($178,905 - $84,000) / 83,117 stocks = $1.14
diluted earnings per share = (net income - preferred dividends) / (weighted average stocks + diluted stocks) = ($178,905 - $84,000) / (83,117 + 10,000 diluted stocks) = $1.02
David Corporation is considering a capital budgeting project that would require an initial investment of $440,000 and working capital of $32,000. The working capital would be returned for use elsewhere at the end of the project in 4 years. The investment would generate annual cash inflows of $147,000 for the life of the project. At the end of the project, equipment that had been used in the project could be sold for $11,000. The company's discount rate is 7%. The net present value of the project is closest to:
Answer:
$58,724.55
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $440,000 + $32,000 = $-472,000
Cash flow each year from year 1 to 3 = $147,000
Cash flow in year 4 = $147,000 + $11,000 + $32,000 = $190,000
I = 7%
NPV = $58,724.55
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
According to Heidi Ganahl, the founder of Camp Bow Wow, organizational culture: a.does not involve tapping into employees' creativity and innovation. b.does not involve being a great friend but only doing the right thing for the company. c.is what the outside world perceives of the company and brand. d.is one where employees are allowed to act as they seem fit.
Answer:
C
Explanation:
According to Heidi Ganahl , Organizational culture is defined as what the outside world perceives of the company and its brand.
In other words , it is believed that a company and its brand is the reflection of the value , belief and the attitudes shared by the employees , as well as the internal control system of the organization which represents the view it portrays to the general public .
Allocating Joint Costs Using the Weighted Average Method Orchard Fresh, Inc., purchases apples from local orchards and sorts them into four categories. Grade A are large blemish-free apples that can be sold to gourmet fruit sellers. Grade B apples are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Apples for slices are even smaller than Grade B apples and have blemishes. Apples for applesauce are of lower grade than apples for slices, yet still suitable for canning. Information on a recent purchase of 20,000 pounds of apples is as follows: Assume that Orchard Fresh, Inc., uses the weighted average method of joint cost allocation and has assigned the following weights to the four grades of apples: Grades Pounds Weight Factor Grade A 1,600 4.0 Grade B 4,000 2.0 Slices 9,000 1.0 Applesauce 5,400 0.5 Total 20,000 Total joint cost is $21,000. Required: 1. Allocate the joint cost to the four grades of apples using the weighted average method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation Grade A $ 5,149.4253 Grade B Slices Applesauce Total $ (Note: The joint cost allocation does not equal $21,000 due to rounding.) 2. What if the factory found that Grade A apples were being valued less by customers and decided to decrease the weight factor for Grade A apples to 3.0
Answer:
Explanation:
The above problem is solved in the picture attached below. I could not make use of the table in this tool that is why i made use of paper and pen and the solution is much explanatory. Thank you
For Swifty Corporation, the predetermined overhead rate is 70% of direct labor cost. During the month, $600000 of factory labor costs are incurred of which $210000 is indirect labor. Actual overhead incurred was $370000. The amount of overhead debited to Work in Process Inventory should be:
Answer:
The amount of overhead debited to Work in Process Inventory is $273,000
Explanation:
Solution
Given that:
The predetermined overhead rate for Swiftly Corporation is = 70%
Factory labor cost incurred is =$600000
Indirect labor = $210000
The actual overhead incurred = $370000
Now
We solve for the amount of overhead debited to Work in Process Inventory which is calculated as follows:
The amount of overhead debited to Work in Process Inventory = (Factory labor cost - Indirect labor cost) * the overhead rate
= ($600000 -$ 210000) * 70%
= $390,000 * 70%
= $273,000
A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 5 workers, who together produced an average of 100 carts per hour. Workers receive $16 per hour, and machine cost was $30 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10 per hour while output increased by 5 carts per hour.
a. Compute the multifactor productivity(MFP) (labor plus equipment) under the Prior to buying the new equipment. (Round to 4 decimal places)b. Compute the % growth in productivity between the Prior and after buying the new equipment. (Round to 2 decimal places)
Answer:
multifactor productivity before new equipment = 0.91 units per dollar
multifactor productivity after new equipment = 1.01 units per dollar
% change in productivity = 10.99% increase
Explanation:
before:
5 workers x $16 per hour = $80 per hour
machine cost $30 per hour
100 carts per hour
multifactor productivity = units of output / (units of labor + units of capital) = 100 / ($80 + $30) = 100 / $110 = 0.91 units per dollar
after:
4 workers x $16 per hour = $64 per hour
machine cost $40 per hour
105 carts per hour
multifactor productivity = units of output / (units of labor + units of capital) = 105 / ($64 + $40) = 105 / $104 = 1.01 units per dollar
% change in productivity = (1.01 - 0.91) / 0.91 = 10.99% increase
Multifactor productivity measures how many units can be produced with $1 of inputs from two or more factors of production.