Question Requirements:
1. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal
2. Show the effects of the journal entries by account, using the T-account Cash Equipment Beg. Bal Beg. Bal End. Bal End. Bal Land Notes Payable Beg. Bal Beg. Bal. End. Bal. End. Bal. Common Stock Beg. Bal End. Bal
3. Extract a Trial Balance.
4. Prepare a classified balance sheet for Laser Delivery Services, Inc., at the end of December. Enter Retained earnings with a zero balance in the appropriate section. LASER DELIVERY SERVICES, INC Balance Sheet.
Answer:
1. Journal Entries
Debit Credit
A. Cash $37,000
Common Stock $37,000
To record issue of common stock.
B. Land $14,000
Note Payable $14,000
To record purchase of land for note payable.
C. Vehicles $18,000
Cash $3,500
Notes Payable $14,500
To record purchase of delivery trucks by cash and notes payable.
D. Vehicles Repairs $1,800
Cash $1,800
To record vehicle repair.
E. No journal entry required
2. Leger Accounts:
a) Cash Account
Debit Credit Balance
A. Common Stock $37,000 $37,000
C. Vehicles $3,500 $33,500
D. Vehicle Repair 1,800 $31,700
b) Common Stock
Debit Credit Balance
A. Cash $37,000 $37,000
c) Land
Debit Credit Balance
B. Notes Payable $14,000 $14,000
d) Notes Payable
Debit Credit Balance
B. Land $14,000 $14,000
C. Vehicles $14,500 $28,500
e) Vehicles
Debit Credit Balance
C. Cash $3,500 $3,500
C. Notes Payable $14,500 $18,000
D. Cash $1,800 $19,800
3. Trial Balance as at December 31:
Debit Credit
Cash $31,700
Common Stock $37,000
Land $14,000
Notes Payable $28,500
Vehicles $19,800
Total $65,500 $65,500
4. Balance Sheet as at December 31:
Assets:
Current Assets:
Cash 31,700 31,700
Long-Term Assets:
Land 14,000
Vehicles 19,800 33,800
Total Assets $65,500
Liabilities + Equity:
Liabilities:
Notes Payable 28,500
Common Stock 37,000
Total Liabilities + Equity $65,500
Explanation:
a) The General journal records the transactions as they occur on a daily basis, showing the accounts to be debited and the ones to be credited.
b) The house bought by Stockholder Jonah Lee is a personal transaction that does not relate to the company. The entity concept that separates ownership from the business does not allow such personal transactions to be recorded in the accounting records of a company.
c) The balance sheet shows the assets and the owners of the financial resources used to acquire the assets. It is always in balance, with assets equalling the liabilities and equity with the occurrence of each transaction.
Fanning Corporation, which makes and sells 81,000 radios annually, currently purchases the radio speakers it uses for $30 each. Each radio uses one speaker. The company has idle capacity and is considering the possibility of making the speakers that it needs. Fanning estimates that the cost of materials and labor needed to make speakers would be a total of $28 for each speaker. In addition, supervisory salaries, rent, and other manufacturing costs would be $188,000. Allocated facility-level costs would be $99,100. Required Determine the change in net income Fanning would experience if it decides to make the speakers.
Answer:
If the company makes the radio speakers, income will decrease by $26,000.
Explanation:
Giving the following information:
Units= 81,000 radios speakers
Purchasing price= $30 each
The cost of materials and labor= $28 for each speaker.
Supervisory salaries, rent, and other manufacturing costs would be $188,000.
The allocated facility cost is a sunk cost, it will remain constant in both decisions.
First, we need to calculate the total cost of buying and making:
Buy:
Total cost= 81,000*30= 2,430,000
Make in-house:
Total cost= 81,000*28 + 188,000= 2,456,000
If the company makes the radio speakers, income will decrease by $26,000.
1. Arrange the following income statement items so they are in the proper order of an income statement:Taxes Earnings per shareShares outstanding Earnings before taxesGross profit shares outstanding Cost of goods soldInterest expense Earnings after taxesDepreciation expense Earnings available to commonPreferred stock dividends stockholdersOperating profit Selling and administrative expenseSalesGross profit
Answer:
The following income is arranged as follows:
Sales, Cost of goods sold, Gross profit, Selling and administrative expenses, Depreciation expenses, Operating profit, Interest expense, Taxes, Earnings after taxes or income, Preferred stock dividends, Earning available to common stockholders.
Explanation:
Solution
An income statement starts with sales. Its second line is cost of goods sold. When cost of goods sold is deducted from sales, the resulting amount is the gross profit. So, gross profit is the third item after sales and cost of goods sold.
As stated earlier, selling and administrative expenses as well as depreciation expenses are the operating expenses. So, after gross profit, selling and administrative expenses are mentioned. Then depreciation expense is mentioned. When all these operating expenses are deducted from gross profit, the resulted amount is the operating profit.
Interest expense is the non-operating expense. After operating profit, interest expense is mentioned. When interest expense is deducted from operating profit, the resulted amount is the earnings before taxes.
After earning before taxes, tax expense is mentioned. When tax expense is deducted from earnings before taxes, the resulted amount is the earnings after taxes or net income.
After net income or earnings after taxes, preferred stock dividends is mentioned. After then, earning available to common stockholders is mentioned.
After net income or earnings after taxes, preferred stock dividends is mentioned. Whenever a company has preferred stock, the preferred stock holders have first right to get dividends from net income, before common stockholders. So, preferred stock dividends are deducted from net income to get the earnings available to common stockholders. So, earning available to common stockholders comes after preferred stock dividends and net income. The earnings available to common stockholders is the very bottom line of any income statement. Outstanding shares are not mentioned on the income statement.
Now,
A proper order of the income statement items are stated as follows:
SalesCost of goods soldGross profitSelling and administrative expensesDepreciation expensesOperating profitInterest expenseTaxesEarnings after taxes or incomePreferred stock dividendsEarning available to common stockholdersJoe makes an hourly salary of $8.10 for 40 regular hours of work. For each hour worked over 40 hours, he is paid at a rate of $12.15 per hour. Last week Joe worked 45 hours. He has withholdings of social security tax (6.2%), medicare tax (1.45%), federal tax ($61.12), state tax ($21.03), city tax ($6.01), pension ($4.12), disability insurance ($1.31), medical insurance ($13.05), and dental insurance ($5.46).
a. What is Joe’s Medicare tax deduction?
b. What is Joe’s Social Security deduction?
c. What is Joe’s Medicare tax deduction?
d. Joe’s other deductions are: federal tax 21.03, city tax 4.12, disability insurance 13.05, and dental insurance $5.46.
What are Joe’s total deductions for this pay period?
e. What is Joe’s net pay for this pay period?
f. If Joe pays the same amount for medical insurance each weekly pay period, what is his annual premium?
g. Does Joe receive time-and-a-half, double-time, or triple-time for each hour of overtime?
Answer:
a. What is Joe’s Medicare tax deduction?
$384.75 x 1.45% = $5.58b. What is Joe’s Social Security deduction?
$384.75 x 6.2% = $23.85c. What is Joe’s Medicare tax deduction?
$384.75 x 1.45% = $5.58d. Joe’s other deductions are: federal tax 21.03, city tax 4.12, disability insurance 13.05, and dental insurance $5.46.
What are Joe’s total deductions for this pay period?
$23.85 + $5.58 + $21.03 + $4.12 + $13.05 + $5.46 = $73.09e. What is Joe’s net pay for this pay period?
$384.75 - $73.09 = $311.66f. If Joe pays the same amount for medical insurance each weekly pay period, what is his annual premium?
$13.05 x 52 = $678.60g. Does Joe receive time-and-a-half, double-time, or triple-time for each hour of overtime?
time and a halfExplanation:
total gross salary = (40 x $8.10) + (5 x $12.15) = $384.75
The Old Age, Survivors, and Disability Insurance (OASDI) program is known as "Social Security" in the US. The correct options are provided below:
a. Joe’s Medicare tax deduction is $384.75 x 1.45% = $5.58
b. Joe’s Social Security deduction is $384.75 x 6.2% = $23.85
c. Joe’s Medicare tax deduction is $384.75 x 1.45% = $5.58
d. Joe’s other deductions are a federal tax 21.03, a city tax 4.12, disability insurance 13.05, and dental insurance of $5.46.
Joe’s total deductions for this pay period are $23.85 + $5.58 + $21.03 + $4.12 + $13.05 + $5.46 = $73.09.
e. Joe’s net pay for this pay period is $384.75 - $73.09 = $311.66
f. His annual premium is $13.05 x 52 = $678.60.
It is managed by the Social Security Administration (SSA), a government organization. Although it is most recognized for its retirement benefits, it also offers income for handicapped employees and survivor benefits.
A federal program in the United States called Social Security offers retirement benefits and disability income to eligible individuals, as well as to their spouses, children, and survivors.
Social Security retirement benefits are only available to those who have paid into the system for at least ten years and are at least 62 years old. Higher monthly benefits are offered to those who delay taking Social Security benefits until they are 70.
Learn more about Social Security here:
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Suppose your local government, threatened with bankruptcy, decided to tax the interest income on its own bonds as part of an effort to rectify serious budgetary woes. If, before the change in tax status, the yields on the bonds described were below the Treasury yield of the same maturity, would you expect this spread to narrow, to disappear, or to change sign after the policy change? Select once answer choice.A. You would expect the spread to be unaffected by the elimination of the tax-exempt status, as this is not a determinant of bond yields.B. You would expect the spread to disappear. The lower yields on local government bonds versus Treasuries are due to their tax-exempt status.C. The loss of tax-exempt status along with the usual risk premium implies that the yields on the local bonds will now be higher than those on Treasuries, so the spread changes sign.D. You would expect the spread to narrow. The lower yields on local government bonds versus Treasuries are due to their tax-exempt status. Investors would regard local government bonds as safer than Treasuries and so the spread would remain negative.
Answer: C. The loss of tax-exempt status along with the usual risk premium implies that the yields on the local bonds will now be higher than those on Treasuries, so the spread changes sign.
Explanation:
The Local Government is threatened with bankruptcy. This increases their default risk because the default risk is the risk that the borrower will not be able to pay back. Should the Local Government go bankrupt they will be unable to pay.
Default risk is one of the constituents of the Risk Premium. When the Default Risk rises, the Risk Premium will rise as well which will have the effect of increasing the Yield on the Local Government bonds.
The Tax Exempt status of the bond was another reason why the bond yield was as low as it was. With the elimination of that status, the Yield will rise as well.
The Spread between the Treasury Yields and the Local Government Yields refers to the difference between them. With the Local Government Yield originally below that of the Treasury Yield, the Spread was positive meaning the Treasury Yield was higher.
With these new increases in the Yield, the Local Government Yield will increase past the Treasury Yield which will then push the Spread negative hence there will be a change of signs.
For instance, LG Yield was originally 3% and Treasury Yield was 5%. Spread was 2%. Risk Premium Increase and Tax Exempt status elimination force LG yield up to 6% and now Spread is -1%. Spread has changed signs.
For the just completed year, Hanna Company had net income of $41,500. Balances in the companys current asset and current liability accounts at the beginning and end of the year were as follows:
December 31
End of Year Beginning of Year
Current assets:
Cash and cash equivalents $ 57,000 $ 78,000
Accounts receivable $ 162,000 $ 188,000
Inventory $ 442,000 $ 370,000
Prepaid expenses $ 11,500 $ 14,000
Current liabilities:
Accounts payable $ 370,000 $ 384,000
Accrued liabilities $ 8,500 $ 12,000
Income taxes payable $ 36,000 $ 27,000
The Accumulated Depreciation account had total credits of $48,000 during the year. Hanna Company did not record any gains or losses during the year.
Required: Use the indirect method to determine the net cash provided by (or used in) operating activities for the year.
Answer:
$37,500
Explanation:
The computation of the net cash provided or used by operating activities are as follows
Cash flow from operating activities
Net income $41,500
Add: depreciation expenses $48,000
Add: Decrease in account receivable ($162,000 - $188,000) $26,000
Less: Increase in inventory ($442,000 - $370,000) -$72,000
Add: Decrease in prepaid expenses ($11,500 - $14,000) $2,500
Less: Decrease in account payable ($370,000 - $384,000) -$14,000
Less: Decrease in accrued liabilities ($8,500 - $12,000) -$3,500
Add: Increase in income tax payable ($36,000 - $27,000) $9,000
Cash flow provided by operating activities $37,500
The negative sign indicates the cash outflow and the positive sign indicated the cash inflow
Ryan expects to deposit $1,000 now, $3,000 four years from now, and $1,500 six years from now in an account that is earning 12% per year compounded semiannually through a company-sponsored saving plan. What amount can he withdraw ten years from now
Answer:
$11,634.50
Explanation:
The future value formula can be applied to each of the deposits:
FV = P(1 +r/n)^(nt)
For 1000 now, interest accumulates for 10 years.
FV = 1000(1 +.12/2)^(2·10) = 3207.14
For 3000 in 4 years, interest accumulates for 6 years.
FV = 3000(1 +.12/2)^(2·6) = 6036.59
For 1500 in 6 years, interest accumulates for 4 years.
FV = 1500(1 +.12/2)^(2·4) ≈ 2390.77
Then the value of the account in 10 years will be ...
$3207.14 +6036.59 +2390.77 = $11,634.50
ABC company has just purchased a life truck that has a useful life of 5 years. The engineer estimates that maintenance costs for the truck during the first year will be $2,000. As the truck ages, maintenance costs are expected to increase at a rate of $300 per year over the remaining life. Assume that the maintenance costs occur at the end of each year. The firm wants to set up a maintenance account that earns 8% interest per year. All future maintenance expenses will be paid out of this account. How much does the firm have to deposit in the account now?
Answer:
$10,540
Explanation:
To calculate, the formula for calculating the present value (PV) of a growing annuity is used as follows:
PVga = [P / (r - g)] * [1 - {(1 + g) / (1 + r)}^n] .................... (1)
Where;
P = maintenance costs for the first year = $2,000
r = interest per year = 8%, or 0.08
g = growth rate of maintenance costs = $300 / $2,000 = 0.15
n = useful life = 5
Substituting the values into equation (1), we have:
PVga = [2,000 / (0.08 - 0.15)] * [1 - {(1 + 0.15) / (1 + 0.08)}^5] = $10,539.88, or $10,540.
Therefore, the firm has to deposit $10,540 in the account now.
Pan Corporation is a company that manufactures and sells baking forms. On 1/1/20, the company purchases a piece of manufacturing equipment for $2,500,000 cash. The expected residual value is $260,000 and the useful life is 5 years. The company expects to produce 8,000,000 forms with the equipment – 2,500,000 forms in 2020; 2,000,000 forms in 2021; 1,500,000 forms in 2022; 800,000 forms in 2023, and 1,200,000 forms in 2024.
Required:
Use the Straight-Line method to find depreciation from 2020 to 2024
Answer:
2020 $700,000
2021 $560,000
2022 $420,000
2023 $224,000
2024 $336,000
Explanation:
Depreciation charge=cost-residual value*number of forms produced in the year/total expected forms.
2020 depreciation=($2,500,0000-$260,000)*2,500,000/8,000,000=$700,000
2021 depreciation=($2,500,0000-$260,000)*2,000,000/8,000,000=$560000
2022 depreciation=($2,500,0000-$260,000)*1,500,000/8,000,000=$420000
2023 depreciation=($2,500,0000-$260,000)*800,000/8,000,000=$224000
2024 depreciation=($2,500,0000-$260,000)*1200,000/8,000,000=$336000
On February 1, 2021, Rosalind Corp. lends cash and accepts a $3,800 note receivable that offers 10% interest and is due in six months. How much interest revenue will Rosalind Corp. report during 2021? (Do not round intermediate calculations.)
Answer:
$190
Explanation:
Interest Revenue is the form of income which is earned by lending some money or investing in debt securities.
As the Note is issued on February 1, 2021 and it will expire on August 1, 2021.
As both dates lies in 2021, so all the interest earned from note receivable will be reported as interest revenue.
Interest Revenue = $3,800 x 10% x 6/12 = $190
Fidelity Systems reports net income of $81 million. Included in that number is depreciation expense of $9 million, and a gain on the sale of equipment of $1 million. Records reveal increases in Accounts Receivable, Inventory, and Accounts Payable of $3 million, $3 million, and $3 million, respectively. Calculate Fidelity's net cash flows from operating activities using the indirect method. (Negative value should be indicated by minus sign. Enter your answer in millions.)
Answer:
$86 million
Explanation:
The computation of the net cash flows from operating activities using the indirect method is shown below:
Cash flows from operating activities
Net income $81 million
Add: depreciation expense $9 million
Less: Gain on sale of equipment -$1 million
Less: Increase in account receivable -$3 million
Less: Increase in inventory -$3 million
Add: Increase in account payable $3 million
Net cash flows from operating activities $86 million
The following data are available for product no. CK74, manufactured and sold by Ruby Corporation:Maximum capacity with present facilities 11,000 unitsTotal fixed cost (per period) $ 851,400Variable cost per unit $ 120.00Sales price per unit $ 186.0010. Required informationThe number of units of CK74 that Ruby must sell to break- even is:a. 12,900.b. 4,577.c. 7,095.d. 6,050.
Answer:
Break-even point in units= 12,900 units
Explanation:
Giving the following information:
Total fixed cost (per period) $ 851,400
Variable cost per unit $ 120
Sales price per unit $ 186
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 851,400 / (186 - 120)
Break-even point in units= 12,900 units
Cramer Corporation and Mr. Chips formed a general partnership. Cramer contributed $500,000 cash, and Mr. Chips contributed a building with a $500,000 FMV and $300,000 tax basis. The partnership immediately borrowed $700,000 of recourse debt. What is Cramer's tax basis in its partnership interest
Answer:
$850,000
Explanation:
Cramer's tax basis in its partnership interest can be estimated as follows:
Cramer's cash contribution to the general partnership = $500,000
Cramer's share of the recourse debt borrowed = $700,000 / 2 = $350,000
Cramer's tax basis in its partnership interest = Cramer's cash contribution + Cramer's share of the recourse debt = $500,000 + $350,000 = $850,000
Note:
The reecourse debt is shared equally as coventionally required when the profit and loss sharing is not stated in the question.
Clemens Cars’s job cost sheet for Job A40 shows that the cost to add security features to a car was $11,000. The car was delivered to the customer, who paid $15,700 in cash for the added features. What journal entries should Clemens record for the completion and delivery of Job A40?
Answer:
Clemens Cars’s Journal entry
1.
Dr Finished goods inventory $11,000
Cr Work in process inventory $11,000
2.
Dr Cost of goods sold $11,000
Cr Finished goods inventory $11,000
3.
Dr Cash $15,700
Cr Sales revenue $15,700
Explanation:
Based on the information given above in which Clemens Cars’s job cost sheet shows that the cost to add security features to a car was $11,000 which means we have to record cost of completed jobs to FG by Debiting Finished goods inventory with $11,000 and Crediting Work in process inventory with the same amount and as well record cost of goods sold by debiting Cost of goods sold with $11,000 and crediting Finished goods inventory with the same amount.
Since the car was delivered to the customer, who paid $15,700 in cash for the added features which means we have to record sale price of job by Debiting Cash with $15,700 and Crediting Sales revenue with the same amount.
The following data represent quantities of tea leaf pluckings (tender shoots from tea plants) from sixteen different plots of tea bushes intended for experimental use in Ceylon, a type of tea from Sri Lanka. The tea bushes are randomly divided into four different treatment groups. Experimenters wish to determine if the mean number of pluckings differs among the four treatments. Test this using 5% significance, assuming that these samples are drawn from normal populations with equal variances. Treatment 1 Treatment 2 Treatment 3 Treatment Pluckings Pluckings Pluckings Pluckings 88 102 91 88 94 110 109 118 109 110 115 94 88 102 91 961. Give the null and alternative2. What is the value of the F-test statistic? Add the F-test statistic to the graph and shade the right tail. Use technology to determine the P-value for this hypothesis test. 3. What does the P-value tell you about the null and alternative hypotheses? 4. State a conclusion in the context of this problem.
Answer:
Explanation:
1)[tex]H_0[/tex] : All group means equal or [tex]\mu _1=\mu _2=\mu _3=\mu _4[/tex]
[tex]H_1:\mu 1=\mu 2=\mu 3\neq \mu 4[/tex]
At least one of the treatment group means are different
ANOVA TABLE
Source of Variation SS df MS F P-value F crit
Between Groups 213.5 3 71.16667 0.65 0.5975 3.490295
Within Groups 1312.5 12 109.375
MSB = SSB / DFB = 71.16667
MSE = SSE / DFE = 109.375
F = MSB / MSE = 0.650667
3) P-value: 0.597576
The test statistic is not significant and failed to reject the null hypothesis.
4) The test statistic is not significant. So, there is no evidence to conclude that there is a difference between groups.
A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5. Eleven sellers are also willing to sell at the same prices. If the market maker is free to choose the number of transactions he can make, what is his maximum profit
Answer:
maximum profit ($30 in total) is obtained by selling 5 units
Explanation:
if the market maker buys and sells one unit, his/her profit = $15 - $5 = $10if the market maker buys and sells two units, his/her profit = $10 + ($14 - $6) = $18if the market maker buys and sells three units, his/her profit = $18 + ($13 - $7) = $24if the market maker buys and sells four units, his/her profit = $24 + ($12 - $8) = $28if the market maker buys and sells five unit, his/her profit = $28 + ($11 - $9) = $30the maximum profit per unit is obtained by selling only 1 unit, but the total maximum profit is obtained by selling 5 units.
Unethical practices can take place during recruitment. Explain
Explanation:
1. Rusing :
rusing occurs when a recruiter assumes an alias during a phone call to a potential clients or candidate, Most often to convince a gatekeeper that deer call to a sincere cooperate leader is personal confident and / or urgent .
2. Double Rusing :
as with other business discipline there is a such of things as conflict of interest. for example as a recruiter at an agency, you don't recruit candidates from clients who are you to feel other jobs it's just common courtesy and common sense .
Pandora invested in the Box Mutual Fund by purchasing 1,000 shares on November 9, Year 1. On the first day of every month, the Box Fund pays a dividend that Pandora elects to have reinvested into the Box Fund. On average, Pandora received five additional shares per month. On December 15, Year 2, Pandora sold off her entire interest in the Box Fund (1,065 total shares). How many of the Box Fund shares sold by Pandora will qualify for the long-term holding period
Answer:
Pandora
Box Fund shares qualifying for the long-term holding period:
Total shares qualifying = 1,010
This is made up of:
Initial shares bought on Nov. 9 = 1,000
Reinvested shares on Dec. 1 5
Reinvested shares on Jan. 1 5
The remaining 55 (1,065 - 1,010) shares qualify for short-term holding periods as they lasted less than one year.
Explanation:
A long-term holding period is one year or more with no expiration. This implies that investment, including dividends paid into the account, that has a holding of less than one year will be a short-term hold.
The holding period of an investment is used to determine the taxing of capital gains or losses.
Three members of the DiCarlo family, Vinny, Maria, and Franki, are choosing the entree for a large family reunion. Their options are: spaghetti, ravioli, lasagne, and pizza. Vinny prefers spaghetti over lasagne, lasagne over ravioli, and ravioli over pizza. Maria prefers ravioli over spaghetti, spaghetti over pizza, and pizza over lasagne. Frankie prefers pizza over ravioli, ravioli over lasagne, and lasagne over spaghetti.
If, before any votes were cast, ravioli was eliminated from the choices, the median voter's first choice would be:
a. spaghetti
b. lasagne.
c. There is not enough information to answer this question.
d. pizza.
Answer:
a. spaghetti
Explanation:
The mediam voter refers to the person in the middle. According to this, in the case it is Maria and she prefers ravioli. However, if ravioli was eliminated from the choices, her choice would be spaghetti based on the information given. According to this, the answer is that if before any votes were cast, ravioli was eliminated from the choices, the median voter's first choice would be: spaghetti.
Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs: Work in Process Balance on 3/1 Job 33 $ 7,500 Job 34 6,000 $ 13,500 Source documents revealed the following during March: Materials Requisitions Forms Labor Time Tickets Status of Job at Month-End Job 33 $ 3,500 $ 6,500 Completed and sold Job 34 6,000 7,800 Completed, but not sold Job 35 4,200 3,250 In process Indirect 1,300 2,140 $ 15,000 $ 19,690 The company applies overhead to products at a rate of 150 percent of direct labor cost.
Answer: Incomplete question. Here is the question you omitted
Prepare journal entries to record the materials requisitions, labor costs, and applied overhead. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
1Record the issuance of raw materials to production.
2Record Oak Creek Furniture Factory’s payroll costs. Assume the direct labor is owed but not paid.
3Record the application of manufacturing overhead to production
4Compute the cost of Jobs 33, 34, and 35 at the end of the month.
5. Calculate the balance in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts at month-end.
Please see below for answers.
Explanation:Work in Process Balance on 3/1
Job 33 $ 7,500
Job 34 $ 6,000
$13,500
Materials Requisitions Forms labourTickets Status of Job at Month-End
job 33 $ 3,500 $ 6,500 Completed and sold
Job 34 6,000 7,800 Completed, but not sold
Job 35 4,200 3,250 In process
Indirect 1,300 2,140
$ 15,000 $ 19,690
1)Journal to Record the issuance of raw materials to production.
Account Debit Credit
work in progress inventory (15,000- 1300) 13,700
Manufacturing overhead 1,300
Raw material inventory $15,000
2)Journal to Record the Payroll costs
Account Debit Credit
work in progress inventory (19,690- 2, 140) 17,550
Manufacturing overhead 2,140
wages payable $19, 690
3)Journal to Record application of manufacturing overhead to production
Account Debit Credit
work in progress inventory (17,550 x 150 %) $26,325
Manufacturing overhead $26,325
4) Compute the cost of Jobs 33, 34, and 35 at the end of the month.
job 33 job 34 job 35
opening cost-- 7500 6000 0
material cost-- 3500 6000 4200
labour cost-- 6500 7800 3250
overhead cost
at 150% labour cost 9750 11,700 4875
total $27,250 $31,500 $12,325
5)Calculate the balance
Work in Process Inventory= job 35 since work in progress=$12,325
Finished Goods Inventory= job 34 since Completed, but not sold=$31,500
and Cost of Goods Sold = job 33 Completed, and sold = $27,250
Suppose demand for U.S. products across the world increases. What is the impact on the flow of financial capital as a result of the increase in demand for products, the value of the U.S. dollar, and the foreign money price of the U.S. dollar
Explanation:
Financial Capital Flow refers to the movement of investment capital, in and out of countries. When money for investment goes from one country to another, it is a capital flow, in-flow for the country receiving and out-flow for the country investing.The term does not include money people and businesses use to purchase each others' goods and services.There is why, in this scenario, there is no recorded change in financial capital flow in the U.S.
The value of the U.S. dollar is the total amount of U.S. dollar which a foreign currency can purchase at a particular exchange rate. It is based on the exchange rate, otherwise called the price of the U.S. dollar to another currency.
Price of the U.S. dollar is the exchange rate. It shows the value of one U.S. dollar vis-a-vis a foreign currency.
You have learned from your training manual that strategic alliances are voluntary arrangements between firms that involve the sharing of knowledge, resources, and capabilities with the intent of developing processes, products, or services. Based on what you have learned so far about HP from their 2014 10-K report, with which one of the following companies has HP entered into a strategic alliance
Answer:
Intel corporation
Explanation:
strategic alliance is simply said to be a form of an consensus between parties(usually 2or more) to attain a set of common objectives(agreed on by both parties) useful and needed while remaining independent organizations. This alliance stands as a strategic alliance due to the fact that it has the ability to affect HP's competitive advantage when looking at page 5 of HP’s 2014 10-K statement, HP's commercial and consumer PCs are mainly using Windows operating system and also use Intel Corporation and Advanced Micro Devices, Inc. processors.” Firms enter many types of alliances, from small contracts that have no bearing on afirm’s competitiveness to multibillion-dollar joint ventures that can make or break the company.
Concertville is hosting a series of outdoor concerts in the park. The concert series will cost the city $500 to host. City officials expect the concert series to draw a crowd of 100 people, 20 of whom will free ride. Based on this information, how much should city officials charge for the concert series in order to cover the $500 expense?
Answer:
$6.25 per person.
Explanation:
This can be calculated as follows:
Expected number of people = 100
Expected number of people that would free ride = 20
Number of expected people to pay = Expected number of people - Expected number of people that would free ride = 100 - 20 = 80
Cost to charge per person = Total cost / Number of expected people to pay = $500 / 80 = $6.25 per person.
Therefore, city officials should charge $6.25 per person for the concert series in order to cover the $500 expense.
Finley Company
End-of-Period Spreadsheet
For the Year Ended December 31
Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit
Cash 16,000 16,000
Accounts Receivable 6,000 6,000
Supplies 2,000 2,000
Equipment 19,000 19,000
Accumulated Depr. 6,000 6,000
Accounts Payable 10,000 10,000
Wages Payable 2,000 2,000
Common Stock 5,000 5,000
Retained Earnings 11,640 11,640
Dividends 1,000 1,000
Fees Earned 40,291 40,291
Wages Expense 20,072 20,072
Rent Expense 5,057 5,057
Depreciation Expense 5,802 5,802
Totals 74,931 74,931 30,931 40,291 44,000 34,640
Net Income (Loss) 9,360 9,360
40,291 40,291 44,000 44,000
The ending balance of retained earnings is
a. $16,640
b. $0
c. $9,360
d. $20,000
Jonathan smith has a contract with Sarah Williams for the purchase of three hundred bales of hay every month for his cattle farm. One month, Sarah Williams refuses to sell Jonathan Smith any hay. Jonathan Smith brings a lawsuit against Sarah Williams for her failure to perform. Which of the following is correct about Jonathan Smith's case? a. This case is considered a criminal case. b. This case has no legal foundation. c. This case is considered a civil law case. d. The case cannot be resolved by monetary compensation.
Answer:
The correct answer is the option C: This case is considered a civil law case.
Explanation:
To begin with, the fact that the case is considered to be a civil law case is due to the fact that the relationship between the both parties is comercial and therefore that they are intented to operate inside the civil area of the law according to what they do. Moreover, the contract will be favourable in court because of the statements that were written on it, and thats why the most probably is that Jonathan will win the case.
On April 1st, Bob the Builder entered into a contract of one-month duration to build a barn for Nolan. Bob is guaranteed to receive a base fee of $4,000 for his services in addition to a bonus depending on when the project is completed. Nolan created incentives for Bob to finish the barn as soon as he can without jeopardizing the structural integrity of the barn. Nolan offered to pay an additional 25% of the base fee if the project finished 2 weeks early and 20% if the project finished a week early. The probability of finishing 2 weeks early is 25% and the probability of finishing a week early is 55%.What is the expected transaction price with variable consideration estimated as the expected value?
a. $4,750
b. $5,000
c. $5,750
d. $5,500
Answer:
$4,690
Note: The correct answer is $4,690 as calculated below based on the information provided but it is not included in the option. Kindly confirm this from your teacher.
Explanation:
This can be calculated using as follows:
Expected value of finishing = Base fee * Additional percentage * Probability of finishing
Therefore, we have:
Expected value of finishing 2 weeks early = $4,000 * 25% * 25% = $250
Expected value of finishing a week early = $4,000 * 20% * 55% = $440
As a result, we have:
Expected transaction price = Base fee + Expected value of finishing 2 weeks early + Expected value of finishing a week early = $4,000 + 250 + 440 = $4,690.
Therefore, the expected transaction price with variable consideration estimated as the expected value is $4,690.
In order to ensure that a company's ethics code will encourage ethical decision making and behavior, companies need to accomplish two objectives. The first is to communicate the codes to others both within and outside the company. The second is to develop practical ethical standards and procedures specific to the company's line of business.
a) true
b) false
Answer:
a) true.
Explanation:
The option here is chosen to be true because every ethic code is directed to ensure ethical decisions and this case or generally when you provide a clear, comprehensive ethical code for your company, it raises its standard of operation as it enlightens people.
This is to the general public, especially everyone that has business dealings with your company. It should be stated clearly above it that it should be well digested by anyone who intends to work or visit the site or environs. Also these ethics should be seriously be followed religiously by the working staffs of the company, so as to be emulated by other visitors and new intakes.
Jumpin Corporation uses the percentminusofminussales method to estimate uncollectibles. Net credit sales for the current year amount to $ 2 comma 100 comma 000, and management estimates 3% will be uncollectible. The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $ 1 comma 800. The amount of UncollectibleminusAccount Expense reported on the income statement will be:
Answer:
The amount of Uncollectible Account Expense reported on the income statement will be: $ 64,800
Explanation:
Jumpin Corporation
Percent of Sales method
Net credit sales $ 2 100 000,
Un collectible estimated 3%
Un collectibles Accounts = 3% of $ 2 100,000, = $ 63,000
Unadjusted Allowance for Un collectible Accounts $ 1, 800 Dr.
Required Adjustment = $ 64,800
The amount of Un collectible Account Expense reported on the income statement will be: $ 64,800
In the percent of sales method emphasis is laid on the matching principle in the income statement and amount of bad debts expense is subtracted from the accounts receivables.
Baden Company has gathered the following information. Units in beginning work in process 0 Units started into production 44,400 Units in ending work in process 8,200 Percent complete in ending work in process: Conversion costs 40 % Materials 100 % Costs incurred: Direct materials $79,920 Direct labor $65,500 Overhead $110,186Instructions (a) Compute equivalent units of production for materials and for conversion costs. (b) Determine the unit costs of production. (c) Show the assignment of costs to units transferred out and in process.
Answer:
Explanation:
Materials Conversion Cost
Units transferred out = (44,400-8,200) = 36,200 36,200
Units in ending work in progress(8200*40%) 8200 3280
equivalent units of production 44,400 39,480
b)
Units cost of production
Costs incurred (65,500+110,186) 79,220 175,686
units of production 44,400 39,480
1.78 4.45
C)
Units transferred out = 36,200 *1.78 = 64,436
36,200*4.45 = 161,090
225,526
Units in ending work in progress - (8200*1,78)+(3280*4.45)
=14,596+14,596 = $29,192
Clara and Nathan have planned to merge their companies. They have met to put forth their respective proposals and the rationale behind the proposals. Also, both Clara and Nathan have made their interests and expectations from the merger obvious to each other. Which of the following stages of negotiation are Clara and Nathan in at present?
A. Planning and preparation
B. Defining ground rules
C. Clarification and justification
D. Closure and implementation
Answer:
The correct answer is the option C: Clarification and justification.
Explanation:
To begin with, in the stage of clarification and justification of the negotiation process the parties do not need to be argumentative but instead they need to be educative to each other by showing the other what are the reasonable statements that are established in order to proove their positions on each argument done before. That is why, in this stage the positions of each party are discussed at length in order to comprehend what every party is supporting for and that is why this stage is called of ''justification''.
For the year ended December 31, 2020, Transformers Inc. reported the following: Net income $300,000 Preferred dividends declared 50,000 Common dividend declared 10,000 Unrealized holding loss, net of tax 5,000 Retained earnings, beginning balance 400,000 Common stock 200,000 Accumulated Other Comprehensive Income, Beginning Balance 25,000.
What would Transformers report as the ending balance of Retained Earnings? Select one:
a. $695,000
b. $645,000
c. $665,000
d. $640,000
Answer:
d. $640,000
Explanation:
The computation of ending balance of Retained Earnings is shown below:-
Ending balance of Retained Earnings = Beginning balance + Net income - Preferred dividends declared - Common dividends declared
= $400,000 + $300,000 - $50,000 - $10,000
= $700,000 - $60,000
= $640,000
Therefore for computing the ending balance of Retained Earnings we simply applied the above formula.