Answer:
Big Blast Fireworks
a) General Journal to record transactions:
Jan. 3
Debit Inventory $196,000
Credit Accounts Payable $196,000
To record the purchase of 1,750 units at $112 each
Jan. 8
Debit Inventory $216,450
Credit Accounts Payable $216,450
To record the purchase of 1,850 units at $117 each
Jan. 12
Debit Inventory $237,900
Credit Accounts Payable $237,900
To record the purchase of 1,950 units at $122 each
Jan. 15
Debit Accounts Payable $23,790
Credit Inventory $23,790
To record the return of 195 units at $122 each.
Jan. 19
Debit Accounts Receivable $855,000
Credit Sales Revenue $855,000
To record the sale of 5,700 units on account.
Debit Cost of Goods Sold $657,870
Credit Inventory $657,870
To record the cost of sales of 5700 units.
Jan. 22
Debit Cash Account $837,000
Credit Accounts Receivable $837,000
To record cash receipt from customers.
Jan. 24
Debit Accounts Payable $620,000
Credit Cash Account $620,000
Jan. 27
Debit Allowance for Uncollectible Accounts $2,800
Credit Accounts Receivable $2,800
To record the write-off of uncollectible.
Jan. 31
Debit Salaries & Wages Expense $138,000
Credit Cash Account $138,000
To record the payment of cash for salaries
2. Adjusting Entries on January 31, 2021:
Debit Loss on Inventory $3,190
Credit Inventory $3,190
To record the loss in value.
Debit Allowance for Uncollectible Accounts $2,065
Credit Accounts Receivable $2,065
To record the write-off of uncollectible.
Debit Uncollectible Expense $3,722
Credit Allowance for Uncollectible Accounts $3,722
To bring the allowance for uncollectible accounts to $2,957.
Debit Interest on Notes Payable $245
Credit Interest Payable $245
To record accrued interest for the month
3. Adjusted Trial Balance at January 31, 2021:
Debit Credit
Cash $104,700
Accounts Receivable 59,135
Allowance for Uncollectible Accounts 2,957
Beginning Inventory 49,000
Ending Inventory 14,500
Land 90,100
Salaries 138,000
Loss on Inventory 3,190
Uncollectible Expense 3,722
Interest on Notes Payable 245
Cost of Goods Sold 657,870
Sales Revenue 855,000
Accounts Payable 32,260
Notes Payable (6%, due in 3 years) 49,000
Interest on Notes Payable 245
Common Stock 75,000
Retained Earnings 57,000
Totals $1,071,462 $1,071,462
Balance Sheet at January 31, 2021:
Assets:
Cash $104,700
Accounts Receivable 59,135
Less uncollectible allw. -2,957
Inventory 14,500
Land 90,100
Total $265,478
Liabilities:
Accounts Payable 32,260
Notes Payable (6%, due in 3 years) 49,000
Interest on Notes Payable 245 $81,505
Common Stock 75,000
Retained Earnings 108,973 $183,973
Total $265,478
Explanation:
a) Unadjusted Trial Balance at January 1, 2021:
Debit Credit
Cash $ 25,700
Accounts Receivable 46,000
Allowance for Uncollectible Accounts 4,100
Inventory 49,000
Land 90,100
Accounts Payable 25,700
Notes Payable (6%, due in 3 years) 49,000
Common Stock 75,000
Retained Earnings 57,000
Totals $ 210,800 $ 210,800
b) Accounts Receivable
Beginning balance $46,000
Credit Sales $855,000
less write-off -2800
less write-off -2,065
less cash receipts -$837,000
Ending balance $59,135
c) Estimated uncollectible allowance = $2,957 (5% of accounts receivable balance, i.e $59,135)
d) Uncollectible Expense:
Ending balance $2957
Plus write-off 2,800
plus write-off 2,065
Beginning balance -4,100
Uncollectible expense 3,722
e) Cash Account balance:
Beginning balance $25,700
Cash from customers $837,000
Payment to suppliers-$620,000
Salaries -$138,000
Ending balance $104,700
f) Accounts Payable
Beginning balance $25,700
Inventory:
1,750 units for $196,000
1,850 units for $216,450
1,950 units for $237,900
195 units return -$23,790
less payment -$620,000
Ending Balance $32,260
g) Income Statement:
Sales $855,000
less cost of sales -657,870
Gross Income $197,130
Salaries -138,000
Loss on Inventory -3,190
Uncollectible Exp -3,722
Interest on Note -245
Net Income $51,973
Retained Earning 57,000
Ending R/Earnings$108,973
Cost of Goods Sold, using FIFO:
490 units at $100 each $49,000
1,750 units at $112 each $196,000
1,850 units at $117 each $216,450
1,610 units at $122 each $196,420
7,500 units sold $657,870
Harrods PLC has a market value of £139 million and 5 million shares outstanding. Selfridge Department Store has a market value of £41 million and 2 million shares outstanding. Harrods is contemplating acquiring Selfridge. Harrods' CFO concludes that the combined firm with synergy will be worth £195 million, and Selfridge can be acquired at a premium of £10 million. a. If Harrods offers 1.2 million shares of its stock in exchange for the 2 million shares of Selfridge, what will the stock price of Harrods be after the acquisition? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b, What exchange ratio between the two stocks would make the value of a stock offer equivalent to a cash offer £51 million? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.)
Answer:
(a) The stock price of Harrods be after the acquisition is £ 31.45
(b) The exchange ratio between the two stocks would be 0.8550
Explanation:
Harrods PLC has a market value of £139 million and 5 million shares outstanding.
Selfridge Department Store has a market value of £41 million and 2 million shares outstanding.
a) If Harrods offers 1.2 million shares of its stock in exchange for the 2 million shares of Selfridge
Shares outstanding = 5 + 1.2 = 6.2 million
Stock price = £ 195 million ÷ 6.2 million = £ 31.45
b) alpha × 195 = 51
alpha = £51 million ÷ £195 million
= 26.15%
(195 ÷ ( 5 +X ) ) × X = 51
51 (5+X) = 195X
255 + 51X = 195X
144X = 255
X = 1.77 million shares
Exchange ratio would be: 1.77 ÷ 2
= 0.8550
Bobbi and Stuart are partners. The partnership capital of Bobbi is $41,400 and that of Stuart is $74,700. Bobbi sells his interest in the partnership to John for $63,900. The journal entry to record the admission of John as a new partner would include a credit to:_________.
a. Stuart's capital account for $58,050
b. John's capital account for $63,900
c. John's capital account for $41,400
d. John's capital account for $41,400 and a credit to Stuart's capital account for $74,700
Answer:
c. John's capital account for $41,400
Explanation:
Based on this information it can be said that in this scenario the journal entry to record the admission of John as a new partner would include a credit to John's capital account for $41,400. This is mainly because even though Bobbi sold his interest for $63,900 his actual interest capital in the partnership was that of $41,400 .... meaning that John now holds a partnership capital of $41,400 and the Bobbi profited $22,500
Comparing costs under ABC to traditional plantwide overhead rate LO P1, P3 Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs $ 5,870,000 Hazardous waste disposal costs 630,000 Chairs Tables Expected production 211,000 units 17,000 units Direct labor hours required 254,000 DLH 16,400 DLH Hazardous waste disposed of 200 pounds 800 pounds
Determine the hazardous waste disposal cost per unit for chairs and for tables if costs are assigned using a single plantwide overhead rate based on direct labor hours.
Answer:
Chairs= $2.805
Tables= $2.25
Explanation:
Giving the following information:
Hazardous waste disposal costs= $630,000
Production:
Chairs= 211,000
Tables= 17,000 units
Direct labor hours required:
Chairs= 254,000 DLH
Tables= 16,400 DLH
Total DLH= 270,400
First, we need to calculate the estimated overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 630,000/ 270,400
Estimated manufacturing overhead rate= $2.33 per direct labor hour
Now, we can allocate overhead to each product line:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Chairs= 2.33*254,000= $591,820
Tables= 2.33*16,400= $38,212
Finally overhead per unit:
Chairs= 591,820/211,000= $2.805
Tables= 38,212/17,000= $2.25
PLATO: Calc Economic
Country A is a main producer of agricultural goods. In the past three years, farmers in country A have seen their sales drop because consumers have begun to buy cheaper imported produce from country B. Not wanting the income of its farmers to drop, the government of country A imposes a tax on all agricultural imports from country B so that those goods are more expensive, and therefore less attractive, to consumers. The farmers in country A see their incomes begin to rise. Two months later, country B retaliates by levying a tax on all imports from country A. Because the manufacturing firms in country A lose business from the country they export to the most, they are forced to close.
What impact did the tariff that country A imposed on country B have?
Answer:
It created a trade barrier
Explanation:
trade barrier are government policies that restrict internatinoal trade.
The policy of country A on goods imported from country B created a barrier that affected country A's industries.
Answer:
Country B imposed a tariff on country A’s goods to retaliate for country A’s tariffs. So, while incomes increased for farmers in country A, the country’s manufacturers lost a substantial amount of export business. The manufacturers closed, and their employees lost their jobs. Ultimately, country A’s regulations had an unfavorable effect on the country’s own economy. Additionally, the tariff may have harmed country A’s reputation as a trade partner and affected its future trade prospects.
Explanation:
PLATO WORD for WORD answer
Monique is the operations manager of a chain of hair salons in upscale urban neighborhoods. Customers in these neighborhoods expect high quality services and products, and Monique is struggling to use the salon's resources efficiently and effectively to provide the level of quality the areas' customers demand. What will most likely happen if Monique can't find a way to meet customers' demands for quality
Multiple Choice
A. The hair salons will be forced to move to a less demanding neighborhood.
B. The hair salons will be taken over by competitors in the area.
C. The hair salons will stay in business, and customers will adapt to their services and products.
D. The hair salons will be converted into a different type of business that can succeed in this area.
E. The hair salons will go out of business.
Answer:
Option B. The hair salons will be taken over by competitors in area.
Explanation:
The reason is that when the quality of the product that the seller promised is not delivered the customer satisfaction level drops significantly and thus moves towards the other seller which results in the loss of the customer. So this means if the business is not delivering the desired quality then it will keep loosing business customers because the competitor will take over the lost business.
A stock’s price fluctuations are approximately normally distributed with a mean of $29.51 and a standard deviation of $3.87. You decide to sell whenever the price reaches its highest 10% of values. What is the highest value you would still hold the stock?
Answer:
$34.46
Explanation:
In this Question there is Highest value of 10% and the probability of 90%.
we will use following formula to calculate the highest value of the stock
z value = ( x - mean ) / Standard deviation
where
x = the highest value
z score value at 10% = 1.28
Placing value in the formula
1.28 = ( x - $29.51 ) / $3.87
1.28 x $3.87 = x - $29.51
$4.9536 = x - $29.51
x = $4.9536 + $29.51
x = 34.4636
purchased equipment on January1, 2018,for $ 27 comma 419.Suppose Duck Pond Golf Club Sold the equipment for $ 19 comma 000 on December 31 comma 2019.Accumulated Depreciation as of December31, 2019,was $ 12 comma 186.Journalize the sale of the equipment, assuming straight-line depreciation was used.
Answer:
31 December 2019
Cash 19000 Dr
Accumulated depreciation 12186 Dr
Equipment 27419 Cr
Gain on disposal 3767 Cr
Explanation:
Straight line depreciation method charges a constant depreciation expense through out the useful life of the asset.
To calculate the gain or loss on disposal/sale of an asset like this, we need to first determine the book value or carrying value of asset on that day.
Carrying value = Cost - Accumulated depreciation
Carrying value = 27419 - 12186
Carrying value = $15233
Gain or (loss) on disposal = Cash/Sale proceeds - Carrying Value
Gain or (loss) on disposal = 19000 - 15233
Gain or (loss) on disposal = $3767 Gain
Assume that all investors have the same information and care only about expected return and volatility. If new information arrives about one stock, can this information affect the price and return of other stocks? If so, explain why? If new information arrives about one stock, can this information affect the price and return of other stocks?
Answer:
Yes
Explanation:
Yes, because with the existence of the new information, there would be changes in attractiveness of the stock. If there are no changes in other stock prices, it, would change the expected return on this stock. If expected return was to go up, then investors would be interested in this stock, implying they would not be holding the market portfolio.
New information regarding stock attracts investors, leading to shift in portfolio of investor. With greater demand for the particular stock, revenues/prices of other stock declines. This is because, investor becomes more attracted to buying that particular stock and other stocks are sold off in the market.
A defining characteristic of the subscription-based business model is that
a. the user pays for access to a product or service whether he or she uses it during the payment term or not.
b. basic features of a product or service are provided free of charge, but the user must pay for premium services such as advanced features or add-ons.
c. initial product is often sold at a loss or given away for free in order to drive demand for complementary goods.
d. user pays for only the services he or she consumes.
Answer:
a. The user pays for access to a product or service whether he or she uses it during the payment term or not.
Explanation:
Obviously, a defining characteristic of the subscription-based business such as TV subscription require the customers to subscribe regardless of how much or how less the customers will watch it. If the customers did not watch the TV, it does not bother the producer as a sales has been made on the business model.
This business model requires regular to regular payment mode to renew the existing subscription on the business as well.
Answer: A.
The user pays for access to a product or service whether he or she uses it during the payment term or not.
Explanation: the subscription-based business model is that the user must pay for the services, even if the user did not make use of that service, for example, if a user subscribe for a television cable, and he/she traveled and was not around to watch the TV, the cable has been paid for and he was not chanced to make use of it.
Industries that use this model presently are cable television, cellular service providers, satellite radio, Internet service providers, and health clubs.
Metlock Corporation enters into a 7-year lease of equipment on December 31, 2019, which requires 7 annual payments of $41,100 each, beginning December 31, 2019. In addition, Metlock guarantees the lessor a residual value of $18,400 at the end of the lease. However, Metlock believes it is probable that the expected residual value at the end of the lease term will be $9,200. The equipment has a useful life of 7 years. Prepare Metlocks' December 31, 2019, journal entries assuming the implicit rate of the lease is 10% and this is known to Metlock.
Answer:
Kindly check the attached picture
Suppose you were going to save $1,000 per year for three years at a 10% interest rate compounded annually, with the first investment occurring today. What would be the future value of this investment
Answer:
$13,310
Explanation:
The investment would be 100% = $1000 * 100% / 10% = $10,000
So this is the amount that would be deposited today to earn $1000 each year which is 10% of the amount deposited today.
The Future Value is given as under:
Future Value = Present Value * (1 + r)^n
Here,
Present value is $10,000
r is 10%
and n is 3 years
So, by putting values we have:
Future Value = $10,000 * (1 + 10%)^3 = $13,310
Cedar Grove Industries produces and sells a cell phone-operated home security control. Information regarding the costs and sales of security controls during May 2017 are provided below. Unit selling price of security control $49 Unit variable costs $28 Total monthly fixed costs $121,000 Units sold 7,600 Prepare a CVP income statement for Cedar Grove Industries for the month of May. Provide per unit values and total values.
Answer:
$47,000
Explanation:
Cedar Grove Industries CVP Income Statement for Month Ending May, 2017
Total Per Unit
Sales ($49×7,600) $372,400 49
Less Variable Cost
($28×7,300) $204,400 28
Contribution Margin $168,000 21
Less Fixed Cost$121,000
Net Income (loss)$47,000
A company estimates that the revenue (in dollars) from the sale of x doghouses is given by R(x)=14,000ln(0.01x+1). Use the differential to approximate the change in revenue fro the sale of one more doghouse if 110 doghouses have already been sold.
Answer: The change in revenue for the sale of 1 more doghouse $ 66.67 dollars
Explanation: Differential is a function that can be used to approximate function value with a great degree of accuracy. This is done by the following.
Mathematical definition of derivative: f'(x) = lim f(x+Δx) - f(x)/Δx.
If Δx is very small:
f'(x) . Δx ≅ f(x+Δx) - f(x)
Knowing that Δy ≅ f(x+Δx) - f(x) and the diferential of variable x can be written by dx as the variable y can be dy:
dy = f'(x) dx
which means that the differential dy is approximately equal to the change Δy, if Δx is very small.
For the question, R(x) = y(x) = 14,000ln(0.01x+1)
f'(x) = [tex]\frac{d[14,000.ln(0.01x+1)]}{dx}[/tex]
Using the chain rule, the derivative will be:
f'(x) = 14,000.[tex]\frac{0.01}{0.01x+1}[/tex]
dy = 14,000.[tex]\frac{0.01}{0.01x+1}[/tex].dx
dx is the change in x. For the question, the change is 1 (1 more doghouse) and x is 110:
dy = 14,000[tex]\frac{0.01}{0.01.110+1}.1[/tex]
dy = [tex]\frac{140}{2.1}[/tex]
dy = 66.67
The change in revenue is $66.67 dollars.
In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)
Case Unit Price Unit Variable Cost Fixed Costs Depreciation
1 $ 2,800 $ 2,295 $ 7,000,000 $ 1,250,000
2 51 43 65,000 160,000
3 12 4 1,800 700
Case Accounting break-even Cash break-even
1
2
3
Answer:
Accounting break-even
Case
1 11,386.13 units
2 = 28125 units
3 312.5 units
Cash break-even
Case Break-even
1 = 13,861.38
2 = 8125
3 = 312.5
Explanation:
Accounting break even is computed as
Break-even = (total fixed cost + depreciation ) /selling price - variable cost per unit
Case
1 = (7,000,000 + 1,250,000)/(2,800- 2,295)= 11386.13861
2 (65,000 +160,000)/(51-43 ) unit = 28125
3 (1,800 + 700)/ (12- 4)= 312.5
Cash break even
Under here only cash based fixed cost would be used , depreciation would be ignored. This is so because it is not a fixed cost .
Break-even = (total fixed cost ) /selling price - variable cost per unit
1 = (7,000,000 )/(2,800- 2,295)= 13,861.38
2 (65,000 )/(51-43 ) unit = 8125
3 (1,800 + 700)/ (12- 4)= 312.5
The following is the ending balances of accounts at December 31, 2018 for the Weismuller Publishing Company.
Account Title Debits Credits
Cash 77,000
Accounts receivable 172,000
Inventories 291,000
Prepaid expenses 160,000
Machinery and equipment 332,000
Accumulated depreciation—equipment 116,000
Investments 152,000
Accounts payable 66,000
Interest payable 26,000
Deferred revenue 86,000
Taxes payable 36,000
Notes payable 230,000
Allowance for uncollectible accounts 22,000
Common stock 406,000
Retained earnings 196,000
Totals 1,184,000 1,184,000
Additional information:
Prepaid expenses include $132,000 paid on December 31, 2018, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility.
Investments include $36,000 in Treasury bills purchased on November 30, 2018. The bills mature on January 30, 2019. The remaining $116,000 includes investments in marketable equity securities that the company intends to sell in the next year.
Deferred revenue represents customer prepayments for magazine subscriptions. Subscriptions are for periods of one year or less.
The notes payable account consists of the following:
a $46,000 note due in six months.
a $106,000 note due in six years.
a $78,000 note due in three annual installments of $26,000 each, with the next installment due August 31, 2019.
The common stock account represents 406,000 shares of no par value common stock issued and outstanding. The corporation has 700,000 shares authorized.
Required:
Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
Weismuller Publishing Company
A Classified Balance Sheet at December 31, 2018
Assets:
Current Assets:
Cash $77,000
Accounts Receivable 172,000
less allowance 22,000 150,000
Investments 152,000
Inventories 291,000
Prepaid Expenses 94,000 $764,000
Long-term Assets:
Prepaid Expenses 66,000
Machinery & Equipment 332,000
less Accumulated Depr. 116,000 216,000 $282,000
Total Assets $1,046,000
Current Liabilities:
Accounts payable $66,000
Interest payable 26,000
Deferred revenue 86,000
Taxes payable 36,000
Notes payable:
Six months 46,000
One year 26,000 72,000 $286,000
Long-term Liabilities:
Notes payable:
Two or more years 52,000
Six years 106,000 $158,000
Total Liabilities $444,000
Equity:
Authorized Common Stock, 700,000 shares
Issued Common Stock $406,000
Retained Earnings 196,000 $602,000
Total Liabilities + Equity $1,046,000
Explanation:
a) Prepaid Expenses are classified as follows:
Current Assets: $160,000 - $66,000 = $94,000
Long-Term Assets = $66,000 ($132,000/2)
Since a year's lease is due in the next year.
b) Investments are classified as current because they include treasury bills maturing on January 30, 2019, and marketable securities saleable next year.
c) Deferred Revenue is a current liability.
d) The classifications of notes payable are indicated in the balance sheet.
In developing a marketing plan, the section on goals and objectives defines the parameters by which the firm will measure actual performance. In this respect, the goals and objectives section is tied closely to the __________ section of the marketing plan.
Answer:
Evaluation and control
Explanation:
The goals and objectives section shows the things that the company wants to accomplish. As the statement indicates that the section on goals and objectives defines the parameters by which the firm will measure actual performance, we can infer that this refers to the evaluation and control section because this part of the marketing plan includes the measurements that will help you evaluate if the objectives can be accomplished, the performance standards to which the indicators are compared and the actions to take if the goals are not achieved. According to this, the answer is that in this respect, the goals and objectives section is tied closely to the evaluation and control section of the marketing plan.
Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $20,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $20,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 37 percent this year and next year, and that she can earn an after-tax rate of return of 9 percent on her investments. When should she pay the $20,000 bill this year or next?
Answer: She should pay in December
Explanation:
Assuming she pays in December, she can claim a 37% tax saving as it is an Expense and she will therefore pay the following Net of Tax,
= $20,000 * ( 1 - tax rate)
= 20,000 * ( 1 - 0.37)
= 20,000 * 0.63
= $12,600
Her total bill in December would be $12,600.
If she pays in January however then she would have lost 9% on the tax saving. Accounting for this would be,
The tax saving is
= $20,000 * 0.37
= $7,400
Discounting it to present day will be,
= 7,400 / (1 + r)
= 7,400 / 1 .09
= $6,788.99
Meaning that the amount she will effectively pay in January is,
= $20,000 - 6,788.99
= $13,211.01
Paying in December therefore saves her more.
Brickhouse is expected to pay a dividend of $2.90 and $2.36 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 3.4 percent. What is the stock price today if the required return is 10.8 percent?
Answer:
$31.40
Explanation:
Value of stock is the sum of present value of all the dividends associated with stock in future.
We will use the following formula to calculate the present values of dividends
Present Values = P x ( 1 + r )^-n
First year = $2.90 x ( 1 + 10.8% )^-1 = $2.62
Second year = $2.36 x ( 1 + 10.8% )^-2 = $1.92
First we need to calculate the value of stock at year 2 and discount it to year 0.
After second year = [ $2.36 x ( 1 + 3.4% ) / ( 10.8% - 3.4% ) ] x ( 1 + 10.8% )^-2 =$26.86
Now add all the present values of dividend below to determine the value of stock.
Value of stock = $2.62 + $1.92 + $26.86 = $31.40
Paralegal Jane and legal secretary Allison are eating lunch in a local restaurant that is popular among legal professionals. During lunch they discuss a well-known client's case and his poor financial condition. Their conversation is overheard by a paralegal who works for the bank where the client maintains his accounts and loans. This is an example of:________.
a. A breach of the client confidentiality rule
b. The client consenting to disclosure of confidential information
c. An impliedly authorized disclosure of confidential client information
d. The client consenting to disclosure of confidential information and an
impliedly authorized disclosure of confidential client information
Answer:
a. A breach of the client confidentiality rule
Explanation:
Janus Coat Company purchased a delivery truck on June 1 for $30,000, paying $10,000 cash and signing a 6%, month note for the remaining balance. The truck expected to depreciate $6,000 each year Janus Coat Company prepares monthly financial statements.
Account Tittles and Explanation
Answer:
Find below complete question:
Janus Coat Company purchased a delivery truck on June 1 for $30,000, paying $10,000 cash and signing a 6%, 2-month note for the remaining balance. The truck is expected to depreciate $6,000 each year. Janus Coat Company prepares monthly financial statements. Instructions:
(a) Prepare the general journal entry to record the acquisition of the delivery truck on June 1st. (b) Prepare any adjusting journal entries that should be made on June 30th. (c) Show how the delivery truck will be reflected on Janus Coat Company's balance sheet on June 30th.
Dr Truck $30,000
Cr Cash $10,000
Cr notes payable $20,000
Dr depreciation expense $500
Cr accumulated depreciation $500
Dr interest expense $100
Cr interest payable $100
Balance sheet extract on 30th June"
Delivery truck $30,000
Accumulated depreciation ($500)
Net book value $29,500
Explanation:
The journal entry to record the purchase of the truck would have $30,000 debited to truck account while cash and notes payable are credited with $10,000 and $20,000 respectively.
On 30 June depreciation expense =$6000/12=$500
Interest of one month on the note payable on 30th June=$20,000*6%*1/12=$100
Data centers are built upon ------------------ commodity hardware and designed with ------------------ architectures A. standardized , technical B. standardized, non standard C. techncal , modular D. standardized , modular
Answer:
Option D: Standardized, modular
Explanation:
Data center in simple terms is said to be a part of a building set aside for a particular purpose (designated space within a building) that is meant or use for holding or housing computers and also it related parts or components.
A modular data center has easy way of deploying data center capacity as it can be placed anywhere data capacity is needed.standardization in data center helps equipment providers and data center builders to reduce timelines of deploymentr as standardized designs gives a lot of options that helps with countless combinations and permutations.
Answer:
I am 100% that the answer is D) standardized, modular
Explanation:
1.) Data centers are built upon standardized commodity hardware and designed with modular architectures
Bailey Corporation, prepares the following adjustments required at the end of the month on July 31: Before these adjustments, Bailey had assets of $70,000, Liabilities of $50,000 and Stockholders’ equity of $20,000. Here are the adjustments made: a. Received a $568 utility bill for electricity usage in July to be paid in August. b. Owed wages to 4 employees who worked four days at $103 each per day at the end of July. The company will pay employees at the end of the first week of August. c. On July 1, loaned money to an employee who agreed to repay the loan in one year along with $2,400 for one full year of interest. No interest has been recorded yet. After the adjustments stockholders’ equity on 7/31 will be
Answer:
After the adjustments stockholders’ equity on 7/31 will be $20,184.
Explanation:
Journal Entries to Show the adjustments are as follows :
a.
Utility Expenses $568 (debit)
Accounts Payable $568 (credit)
b.
Wages Expense $1,648 (debit)
Wages Payable $1,648 (credit)
c.
Loan Receivable $2,400 (debit)
Interest Income $2,400 (credit)
To Determine Effect on Equity use the Accounting Equation : Assets = Equity + Liability.
Therefore, Equity = Assets - Liability
Effect on Assets = $70,000 + $2,400 = $72,400
Effect on Liabilities = $50,000 + $568 + $1,648 = ($52,216)
Effect on Equity (Total) = $20,184
Conclusion :
Therefore, After the adjustments stockholders’ equity on 7/31 will be $20,184.
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South Wales Sales $ 2,275,000 $ 2,781,000 Average operating assets $ 650,000 $ 515,000 Net operating income $ 232,050 $ 200,232 Property, plant, and equipment (net) $ 265,000 $ 215,000 Required: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. 2. Which divisional manager seems to be doing the better job
Answer:
Queensland division has ROI of 35.7%
New South Wales division has ROI of 38.88%
The divisional manager at New South Sales division has a higher ROI and seems to doing better job
Explanation:
The return on investment stated in terms of margin and turnover=net operating income/sales*sales/average operating assets
For Queensland division return on investment is computed thus:
net operating income is $232,050
sales is $2,275,000
average operating assets is $650,000
return on investment=$232,050/$2,275,000*$2,275,000/$650,000=35.70%
For New South Wales division return on investment is computed thus:
net operating income is $200,232
sales is $2,781,000
average operating assets is $515,000
return on investment=$200,232/$2,781,000*$2,781,000/$515,000=38.88%
Fund to Retire Bonds At the beginning of 2019, Shanklin Company issued 10-year bonds with a face value of $1,000,000 due on December 31, 2028. Shanklin wants to accumulate a fund to retire these bonds at maturity by making annual deposits beginning on December 31, 2019. Required: How much must Shanklin deposit each year, assuming that the fund will earn 12% interest a year compounded annually
Answer:
$56,984
Explanation:
We can find the Annuity value by using the annuity formula which is as under:
Future Value = Annuity Value * Annuity Factor
Here
Future Value given is $1,000,000
Annuity Factor at 12% for 10 year bond = [1 - (1 + 12%)^10] / 12% = 17.548735
By putting values in the formula given above, we have:
$1,000,000 / 17.548735 = Annuity Value
Annuity Value = $56,984
As an investor you want to choose between two countries-Japan and South Korea. Suppose Japan's nominal interest rate is 12 percent and inflation rate is 7 percent, while South Korea's is 7 percent and 3 percent respectively. Where would you invest and why?
Answer:
South Korea
Explanation:
That is because south korea has low inflation rate.
On January 1, 2020, Swifty Corporation granted an employee an option to purchase 15000 shares of Swifty's $5 par value common stock at $18 per share. The Black-Scholes option pricing model determines total compensation expense to be $341000. The option became exercisable on December 31, 2021, after the employee completed two years of service. The market prices of Swifty's stock were as follows: January 1, 2020 $30 December 31, 2021 50 For 2021, should recognize compensation expense under the fair value method of
Answer:
For 2021, should recognize compensation expense under the fair value method of $170,500
Explanation:
According to the given data we have the following:
option pricing model determines total compensation expense to be $341,000
Also, The option became exercisable on December 31, 2021, after the employee completed two years of service.
Therefore, in order to calculate the amount should recognize compensation expense we would have to make the following calculation:
amount should recognize compensation expense=$341,000/2
amount should recognize compensation expense=$170,500
For 2021, should recognize compensation expense under the fair value method of $170,500
A decrease in the interest rate results in:______.
1. a greater opportunity cost of investment and so planned investment spending increases.
2. a smaller opportunity cost of investment and so planned investment spending decreases.
3. a smaller opportunity cost of investment and so planned investment spending increases.
4. a greater opportunity cost of investment and so planned investment spending decreases.
Answer:
3. a smaller opportunity cost of investment and so planned investment spending increases.
Explanation:
Opportunity cost is defined as the foregone alternative when a person undertakes an activity. For example going to work is the opportunity cost of staying at home to rest.
Opportunity cost is weighed against activity to be undertaken.
In this instance the opportunity cost of investment is the alternative foregone by investors.
As interest rate decreases it makes investment attractive because the cost of doing business decreases. This make other alternatives less attractive (smaller opportunity cost).
Investment now increases.
The monetary regulation agencies use interest rate a tool to either boost or reduce investment. The higher the interest rate th lower investment, and vice versa
The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions's job cost sheets show the following total costs accumulated on three furniture jobs.
Job 602 Job 603 Job 604
Direct materials $ 1,500 $ 3,700 $ 2,800
Direct labor 900 1,380 1,800
Overhead 360 552 720
Job 602 was started in production in May, and these costs were assigned to it in May: direct materials, $600; direct labor, $250; and overhead, $100. Jobs 603 and 604 were started in June. Overhead cost is applied with a predetermined rate based on direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 is expected to be finished in July. No raw materials are used indirectly in June. (Assume this company’s predetermined overhead rate did not change over these months.)
Required:1. What is the cost of the raw materials used in June for each of the three jobs and in total?2. How much total direct labor cost is incurred in June?3. What predetermined overhead rate is used in June?4. How much cost is transferred to finished goods inventory in June? (Leave no cell blank enter "0" wherever required.)
Answer:
Results are below.
Explanation:
Giving the following information:
Job 602 Job 603 Job 604
Direct materials= $ 1,500 $ 3,700 $ 2,800
Direct labor= 900 1,380 1,800
Overhead= 360 552 720
Job 602:
direct materials= $600
direct labor= $250
overhead= $100.
1) Raw materials:
Job 602= 1,500 - 600= $900
Job 603= 3,700
Job 604= 2,800
Total= $7,400
2) Direct labor:
Job 602= 900 - 250= $650
Job 603= 1,380
Job 604= 1,800
Total= $3,830
3) Overhead:
Job 602= 350 - 100= 250
Job 603= 552
Job 604= 720
Total= $1,522
4) The cost transferred to finished goods is the total cost of jobs 602 and 603.
Total cost 602= 1,500 + 900 + 360= 2,760
Total cost 603= 3,700 + 1,380 + 552= $5,632
Total cost transferred to finished goods= 2,760 + 5,632= $8,392
From its inception through the year of 2017, First Mart, Inc. was profitable and made strong dividend payments each year. In the year 2018, First Mart had major losses and paid no dividends. In 2019, the company started making large profits again, and they were able to pay dividends to all shareholders—both common and preferred. There are 1,700 shares of cumulative, 14% preferred stock outstanding. The preferred stock has a par value of $100.00. What is the total amount of dividends that should be paid to the preferred stockholders in December, 2019?
Answer:
Total dividend paid in 2019 =$47,600
Explanation:
The cumulative preference shares entire the investors to fixed amount of dividend. Where dividends are not paid during an accounting period, the unpaid dividend are carried forward and paid in arrears when profits become available.
Dividend = Dividend rate× nominal value of stock
Dividend in 2018 (unpaid) = 14%× 1,700 × 100 =23,800
Dividend in 2019 = 14%× 1,700 × 100 =23,800
Total dividend paid in 2019 = Unpaid dividend of 2018 + Dividend payable in 2019
= 23,800 + 23,800= $47,600
Total dividend paid in 2019 =$47,600
Select either true or false for the following statements. 1. Relevant costs are also known as unavoidable costs 2. Incremental costs are also known as differential costs 3. An out-of-pocket cost requires a current and/or future outlay of cash. 4. An opportunity cost is the potential benefit that is lost by taking a specific action when two or more alternative choices are available 5. A sunk cost will change with a future course of action.
Answer:
1. Relevant costs are also known as unavoidable costs - False.
Relevant costs are in fact, avoidable cost that only emerge in specific business decisions.
2. Incremental costs are also known as differential costs - False
Incremental costs are costs that are incurred when an additional unit of output is produced. Differential costs ocurr when a particular product is made instead of another.
3. An out-of-pocket cost requires a current and/or future outlay of cash. - True
An out-of-pocket cost or expense is a direct payment of money, in other words, an outlay of cash.
4. An opportunity cost is the potential benefit that is lost by taking a specific action when two or more alternative choices are available - True
An opportunity cost can also be defined as what is given up to obtain something.
5. A sunk cost will change with a future course of action. - False
Sunk costs are costs incurred in the past, that cannot be recovered, or modified.