Answer:
Equity section of the balance sheet at the end of the year
Authorized Share Capital
116,000 Common stock, $5 par value. 580,000
5,200 Preferred stock, 15 percent, par value $15 per share, 78,000
658,000
Issued Share Capital
Common stock
20,600 Common stock, $5 par value 103,000
Share Premium (20,600×$25) 515,000
Total 618,000
Preferred stock
2,000 Preferred stock, 15 percent, par value $15 per share 30,000
Share Premium (2,000×$19) 38,000
Total 68,000
Retained Earnings
Profit for the year 41,200
Total Equity 727,200
Explanation:
Price issued above the par value of a share is called share premium and is included in equity for each class of stock.
Profit for the year is also included in Equity as Part of the Retained Earnings.
The government of Ruritania has implemented many programs that promote equality, but has become concerned about the very slow rate of growth that has held back their national economy for many years. In order to address this problem, the government is likely to:
Answer: b. reduce taxes and cut back on some social programs
Explanation:
When the Economy is not doing well, Social programs are usually targeted as they usually take a lot of money from the Government's coffers.
It is also a generally held view that reducing taxes as a Fiscal policy can help stimulate the Economy by leaving the public with more funds to invest in and spend on the Economy.
The Government of Ruritania is therefore most likely to combine reducing Social programs as well as reducing taxes. This will have the effect of leaving the Government with some money as it loses revenue from taxes whilst also enabling the public to have more money to invest and to spend which will then lead to Economic growth.
Here the government reduce taxes and cut back on some social programs
For addressing the given problem, the government should do:At the time when the Economy is not doing well, Social programs are should be considered since it take a lot of money from the Government's coffers. Also, the taxes are reduced since Fiscal policy can help stimulate the economy by leaving the public with additional funds to invest in and spend on the Economy.
Learn more about an economy here: https://brainly.com/question/24561404
Suppose on Friday night you have a choice to go either to a Katy Perry concert or a Lady Gaga concert. You won a free ticket to see Katy Perry. You would pay as much as $180 to see Lady Gaga perform, but tickets to her show cost $100 . Assume that you end up going to the Katy Perry concert. Since you went to the Katy Perry concert, you must be willing to pay at least $________to see Katy Perry.
Answer: $100
Explanation:
From the information, on a Friday night, you have the choice to either go to a Katy Perry concert or a Lady Gaga concert. You won a free ticket to see Katy Perry but you would pay as much as $180 to see Lady Gaga perform, even thought the tickets to her show cost $100.
This illustrates that the person must be willing to pay at least $100 to see Katy Perry. Since the person wa.willing to pay $180 for Lady Gaga even when the tickets were$100, then you should be able to pay at least $100 to see Perry
Pinnacle Corp. budgeted $259,470 of overhead cost for the current year. Actual overhead costs for the year were $209,420. Pinnacle's plantwide allocation base, machine hours, was budgeted at 49,190 hours. Actual machine hours were 56,270. A total of 102,050 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is:
Answer:
Predetermined manufacturing overhead rate= $5.275 per machine-hour
Explanation:
Giving the following information:
Pinnacle Corp. budgeted $259,470 of overhead cost for the current year.
Pinnacle's plantwide allocation base, machine hours, was budgeted at 49,190 hours.
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 259,470/49,190
Predetermined manufacturing overhead rate= $5.275 per machine-hour
Cite 3 reasons for and 3 reasons against rebuilding Greensburg as a “green town.”
Answer:
Following are the answer to this question:
Explanation:
3 reasons:
1. The tornado has always been something like never before in magnitude. Its city was damaged and 95% of its buildings are damaged. It gives you the chance to rebuild and green the city.
2. Building a green city would also inspire other cities to implement green technology in a tornado-ravaged area.
3. Greenburg is going to become a style icon and a model for the construction of a renewable town.
3 counter reason:
1. firstly, green technology is not inexpensive and would put public funds under pressure.
2. No one would cause a major lack of economic and private assets if Greenburg has been struck by a tornado of the very same size.
3. Its town can prioritize constructing tornado shelters that can respect and public assets rather than creating a green community.
Chico’s Clockworks uses job order costing for its custom clock-making business. Job GF1260 is a custom-made grandfather clock. Chico’s job cost sheet for Job GF1260 shows a total cost of $4,265, including direct labor of 50 hours at $20 per hour. Overhead is applied at 100% of direct labor cost. What is the direct materials cost for Job GF1260? A : $3,455 B : $1,000 C : $2,265 D : $2,895
Answer:
Option C,$2,265 , is correct
Explanation:
Labor cost =direct labor hours*rate per hour
direct labor hours is 50 hours
direct labor cost per hour is $20
labor cost=50*$20=$1,000
Overhead was applied as 100% of direct labor cost
overhead=100%*$1000=$1000
Total cost of job=direct material cost+direct labor+overhead
direct material cost=total cost-direct labor-overhead
direct material cost=$4,265-$1000-$1000=$2,265
The correct option is C,$2,265
The Containers Inc. experienced the following events during its first year of operations,
Year 1:
Acquired $42,000 cash by issuing common stock.
Earned $25,000 revenue on account.
Paid $18,000 cash for operating expenses.
Borrowed $10,000 cash from a bank.
Collected $22,000 of the balance in accounts receivable.
Paid a $1,000 cash dividend.
Required
a. Would the accounts receivable account appear in the assets, liabilities, or stockholders' equity section of the December 31, Year 1, balance sheet?
b. Determine the balance of the accounts receivable account that would appear on the December 31, Year 1, balance sheet.
c. Determine the amount of net income that would appear in the Year 1 income statement.
d. Determine the amount of the cash flow from operating activities that would appear in the Year 1 statement of cash flows.
Answer:
a. Would the accounts receivable account appear in the assets, liabilities, or stockholders' equity section of the December 31, Year 1, balance sheet?
The accounts receivable account would appear in the assets section, and more specifically, in the current assets section. This is because accounts receivable are considered to be an assset.
b. Determine the balance of the accounts receivable account that would appear on the December 31, Year 1, balance sheet.
The Containeres Inc. first earned $25,000 on account, and by the end of the year, it had collected $22,000, thus, the final balance of the accounts receivable is $3,000.
c. Determine the amount of net income that would appear in the Year 1 income statement.
Net Income = Revenue - Expenses
Net Income = $25,00 - $18,000
= $7,000
Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s most popular models appear below.
Ski
Guard Golf
Guard Fishing
Guard
Selling price per unit $260 $330 $205
Variable cost per unit $120 $180 $135
Plastic injection molding machine processing
time required to produce one unit 9 minutes 12 minutes 11 minutes
Pounds of plastic pellets per unit 12 pounds 7 pounds 11 pounds
Required:
1a.
The total time available on the plastic injection molding machine is the constraint in the production process. What is the contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard?
1b. Which product would be the most profitable use of this constraint?
Ski Guard
Fishing Guard
Golf Guard
1c. Which product would be the least profitable use of this constraint?
Ski Guard
Fishing Guard
Golf Guard
2a.
A severe shortage of plastic pellets has required the company to cut back its production so much that the plastic injection molding machine is no longer the bottleneck. Instead, the constraint is the total available pounds of plastic pellets. What is contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard?
2b. Which product would be the most profitable use of this constraint?
Golf Guard
Fishing Guard
Ski Guard
2c. Which product would be the least profitable use of this constraint?
Golf Guard
Fishing Guard
Ski Guard
3. Which product has the largest unit contribution margin?
Golf Guard
Fishing Guard
Ski Guard
Answer:
Ski Golf Fishing
Guard Guard Guard
selling price $260 $330 $205
variable cost $120 $180 $135
contribution margin $140 $150 $70
machine time 9 min. 12 min. 11 min.
lbs. of pellets 12 7 11
total machine time is the constraint in the production process
1a)
contribution margin per $933.33 $750 $381.82
machine hour
1b)
ski guard since its contribution margin per machine hour is much higher than the rest of the products
1c)
fishing guard since its contribution margin per machine hour is much lower than the rest of the products
2a)
Ski Golf Fishing
Guard Guard Guard
contribution margin per $11.67 $21.43 $6.36
lbs. of pellets
2b)
Golf guard since its contribution margin per lb. of pellets is much higher than the rest of the products
2c)
fishing guard since its contribution margin per lb. of pellets is much lower than the rest of the products
3)
Golf Guard ($150)
Mouret Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.
Activity Cost Pools Activity Rate
Setting up batches $92.68 per batch
Processing customer orders $95.08 per customer order
Assembling products $3.41 per assembly hour
Last year, Product N79A required 28 batches,
6 customer orders, and 712 assembly hours.
Required:
How much total overhead cost would be assigned to Product N79A using the company's activity-based costing system?
Answer:
$5,593.44
Explanation:
The computation of the total overhead cost assigned to Product N79A using the activity based costing is shown below:
Total overhead cost assigned is
= Setting up batches cost + processing customer orders cost + assembly products cost
As we know that
Overhead Cost assigned = Activity Rate × Number of activity
So,
Setting up batches cost = $92.68 × 28 batches = $2,595.04
Processing customer orders cost = $95.08 × 6 customer orders = $570.48
And,
Assembling products cost = $3.41 × 712 assembly hours = $2,427.92
So,
Total overhead cost assigned to Product N79A is
= $2,595.04 + $570.48 + $2,427.92
= $5,593.44
The equipment account had a $36,000 balance at the beginning of the year, and a $30,000 balance at the end of the year. The accumulated depreciation account had a balance of $22,000 at the beginning of the year, and a $17,000 balance at the end of the year. The income statement reported depreciation expense of $4,000 for the year. Equipment costing $10,000 was sold for its book value. Cash received from the sale to be reported in the Investing Activities section is
Answer:
$1000
Explanation:
The cash received from the equipment sale is equals to the initial cost of the equipment which is $10,000 minus total accumulated depreciation on the equipment charged till date.
Total accumulated depreciation on the equipment=Opening balance of accumulated depreciation+depreciation charge for the year-closing balance of accumulated depreciation
Total accumulated depreciation on the equipment=$22,000+$4,000-$17,000
=$9,000
cash proceeds=$10,000-$9,000=$1000
Suppose you deposited $27,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year. How much would be in the account after 8 months, assuming each month has 30 days
Answer:
FV= $27,962.78
Explanation:
Giving the following information:
Suppose you deposited $27,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year.
First, we need to calculate the daily interest:
Interest rate= 0.0525/360= 0.000146
Now, using the following formula, we can determine the final value:
FV= PV*(1+i)^n
FV= 27,000*(1.000146^240)
FV= $27,962.78
The manager of Belle Home Improvements purchased several cash registers for the business on June 10 but does not remember whether he paid cash for the full price or still owes a balance to the vendor. Where is the best place for the manager to get the information about this transaction?
Answer:
The best place to get information about the transaction is the general journal.
Explanation:
The best place for the manager to get information about the transaction is the general journal.
The journal in accounting is a record of financial transactions in order by date. The general journal is a day book that records transactions as it relates to adjustment entries, opening stock, accounting errors. Entries in general journal includes dates and explanation of transaction called narration.
The manager can find out if he paid fully for the transaction by going through the narration in the general journal.
Karl Corporation was organized on January 2, 2018. During 2018, Karl issued 40,000 shares at $24 per share, purchased 6,000 shares of treasury stock at $26 per share, and had net income of $600,000. What is the total amount of stockholders’ equity at December 31, 2018?
Answer:
$1,404,000
Explanation:
To calculate the total amount of stockholders’ equity at December 31, 2018 you have to use the following formula:
Stockholder’s equity= Paid-up capital+Retained earnings-Treasury stock
Paid-up capital= $24*40,000= $960,000
Retained earnings= $600,000
Treasury stock= $26*6,000= $156,000
Now, you can replace the values on the formula:
Stockholder’s equity= $960,000+$600,000-$156,000
Stockholder’s equity= $1,404,000
According to this, the total amount of stockholders’ equity at December 31, 2018 is $1,404,000.
Fresh Foods established a petty cash fund of $100 on January 2. On January 31, the fund contained cash of $9.20 and vouchers for the following cash payments: Maintenance expense Office supplies Transportation expense $61.50 12.50 15.00 The three distinct accounting events affecting the petty cash fund for the period were (1) establishment of the fund, (2) reimbursements made to employees, and (3) recognition of expenses and replenishment of the fund.Required:
a. Record each of the three events in a horizontal statements model.b. Record the events in general journal format.
Answer:
a. Net total assets = Stockholder's equity = $18.40; Total Expenses = Net income = ($90.80); and Net Cash flow = $18.40
b. Record the events in general journal format.
See the journal entries below.
Explanation:
a. Record each of the three events in a horizontal statements model.
Note: See the attached excel file for the horizontal statements
b. Record the events in general journal format.
The journal general entries will be as follows:
Date Details Dr ($) Cr ($)
Jan. 2 Petty cash account 100.00
Cash 100.00
(To record the petty cash fund establishment.)
Jan. 2-31 Maintenance expense 61.50
Office supplies 12.50
Transportation expense 15.00
Unaccounted amount (w.2.) 1.80
Petty cash account 90.80
(To record expenses during the month of January.)
Jan. 31 Petty cash account 90.80
Cash 90.80
(To record reimbursements made to employees.)
Workings:
w.1. Reimbursed amount = Petty cash fund - Fund balance on January 31 = $100 - $9.20 = $90.80
w.2. Unaccounted amount = Reimbursed amount - Maintenance expense - Office supplies - Transportation expense = $90.80 - $61.50 - $12.50 - $15.00 = $1.80.
Security Brokers Inc. specializes in underwriting new issues by small firms. On a recent offering of Beedles Inc., the terms were as follows: Price to public: $5 per share Number of shares: 3 million Proceeds to Beedles: $14,000,000 The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $430,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price? $4.75 per share? Use minus sign to enter loss, if any. $ $5.75 per share? Use minus sign to enter loss, if any. $ $4 per share? Use minus sign to enter loss, if any. $
Answer:
a) -$180,000
b) $2,820,000
c) -$2,430,000
Explanation:
a) To calculate the profit or loss that the Security Brokers would incur if the issue were sold to the public at $4.75 per share, we have the following:
= (number of shares * price to public) - (proceeds to Beedles) - (out of pocket expenses)
= (3,000,000 * 4.75) - (14,000,000) - (430,000)
= -$180,000
The loss at $4.75 per share is $180,000
b) To calculate the profit or loss that the Security Brokers would incur if the issue were sold to the public at $5.75 per share, we have the following:
= (number of shares * price to public) - (proceeds to Beedles) - (out of pocket expenses)
= (3,000,000 * 5.75) - (14,000,000) - (430,000)
= $2,820,000
The profit at $5.75 per share is $2,820,000
c) To calculate the profit or loss that the Security Brokers would incur if the issue were sold to the public at $4 per share, we have the following:
= (number of shares * price to public) - (proceeds to Beedles) - (out of pocket expenses)
= (3,000,000 * 4) - (14,000,000) - (430,000)
= -$2,430,000
The loss at $4 per share is $2,430,000
This year, Druehl, Inc., will produce 57 comma 60057,600 hot water heaters at its plant in Delaware, in order to meet expected global demand. To accomplish this, each laborer at the plant will work 160160 hours per month. If the labor productivity at the plant is 0.250.25 hot water heaters per labor hour, how many laborers are employed at the plant
Answer:
The number of laborers employed by the plant is 120 laborers
Explanation:
According to given data Annual output = 57600 water heaters.
So the output per month = 57,600 / 12 months = 4,800 water heaters
Each labor works 160 hours per month
Suppose ,there are x number of laborers employed by the plant. So,x number of laborer will work 160x hours per month. So the labor input = 160x per month
Labor productivity = 0.25
Labor productivity = Output / Labor input
0.25 = 4800 / 160x
25/100 = 4800/160x
160x = (4800 X 100) / 25
160x = 19200
x = 19200/160
x = 120
Therefore, the number of laborers employed by the plant is 120 laborers
JBC Corporation is owned 20 percent by John, 30 percent by Brian, 30 percent by Charlie, and 20 percent by Z Corporation. Z Corporation is owned 80 percent by John and 20 percent by an unrelated party. Brian and Charlie are brothers. Answer each of the following questions about JBC under the constructive ownership rules of Section 267:<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />a. What is John's percentage ownership?b. What is Brian's percentage ownership?c. What is Charlie's percentage ownership? _________%d. If Brian sells property to JBC for a $6,000 loss, what amount of that loss can be recognized for tax purposes (before any annual limitations)?
Answer:
a. What is John's percentage ownership?
36%b. What is Brian's percentage ownership?
60%c. What is Charlie's percentage ownership?
60%d. If Brian sells property to JBC for a $6,000 loss, what amount of that loss can be recognized for tax purposes (before any annual limitations)?
$0Explanation:
JBC Corporation:
20 percent by John 30 percent by Brian30 percent by Charlie20 percent by Z CorporationZ Corporation:
80 percent by John 20 percent by an unrelated partyUnder constructive ownership rules of Section 267, family members included in constructive ownership are siblings, parents, grandparents, and children.
John owns = 20% + (20% x 80% of Z Corporation) = 36%
Brian = 30% + 30% (Charlie) = 60%
Charlie = 30% + 30% (Brian) = 60%
What is the purpose of a labor union?
Gramps purchased a joint survivor annuity that pays $500 monthly over his remaining life and that of his wife, Gram. Gramps is 70 years old and Gram is 65 years old. Gramps paid $97,020 for the contract. How much income will Gramps recognize on the first payment?
Answer:
$150
Explanation:
Calculation of how much income that Gramps will recognize on the first payment.
Since joint survivor annuity has 23.1 as the annual return multiple .
Calculation for Expected return
Expected return =Annual payment *Return multiple
($500*12) =$6,000
$6,000×23.1
=$138,600
Therefore :
$97,020/$138,600
=0.7×100
=70%
The 70% of each of the payment will be the return of capital while the 30%(100%-70%) will be the income.
Hence the first payment be:
30%×500
=$150
Therefore the amount of income that Gramps will recognize on the first payment will be $150
Following are two income statements for Alexis Co. for the year ended December 31. The left number column is prepared before adjusting entries are recorded, and the right column is prepared after adjusting entries. The company records cash receipts and payments related to unearned and prepaid items in balance sheet accounts.
Income Statements
For Year Ended December 31
Unadjusted Adjusted
Revenues
Fees earned $24,000 $ 30,000
Commissions earned 42,500 42,500
Total revenues $66,500 72,500
Expenses
Depreciation expense—Computers 0 1,500
Depreciation expense—Office furniture 0 1,750
Salaries expense 12,500 14,950
Insurance expense 0 1,300
Rent expense 4,500 4,500
Office supplies expense 0 480
Advertising expense 3,000 3,000
Utilities expense 1,250 1,320
Total expenses 21,250 28,800
Net income $45,250 $ 43,700
Analyze the statements and prepare the seven adjusting entries that likely were recorded. Hint: Entry for a refers to fees that have been earned but not yet billed. None of the entries involve cash.
Answer and Explanation:
The Journal entries are shown below:-
1. Accounts receivableDr, $6,000 ($30,000 - $24,000)
To Fees earned $6,000
(Being accrued income is recorded)
2. Depreciation expense - Computors Dr, $1,500
To Accumulated Depreciation - Computors $1,500
(Being depreciation expenses is recorded)
3. Depreciation expense - Office Furniture Dr, $1,750
To Accumulated Depreciation - Office Furniture $1,750
(Being depreciation expenses is recorded)
4. Salaries expense Dr, $2,450 (14,950 - $12,500)
To Salaries and wages payable $2,450
(Being salaries expenses is recorded)
5. Insurance expenses Dr, $1,300
To Prepaid insurance $1,300
(Being expired insurance is recorded)
6. Office supplies expense Dr, $480
To Office supplies $480
(Being office supplies expenses is recorded)
7. Utilities expenses Dr, $70 ($1,320 - $1,250)
To Accounts payable $70
(Being utilities expenses accrued is recorded)
Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.50 percent, a par value of $1,000 per bond, matures in 8 years, has a total face value of $3.6 million, and is quoted at 109 percent of face value. The second issue has a coupon rate of 5.94 percent, a par value of $2,000 per bond, matures in 21 years, has a total face value of $7.9 million, and is quoted at 95 percent of face value. Both bonds pay interest semiannually. The company's tax rate is 40 percent. What is the firm's weighted average aftertax cost of debt
Answer:
2.9652%
Explanation:
to determine the cost of debt we must use the FMV of the bonds plus the YTM:
first bond:
FMV = 1.09 x $1,000 = $1,090 x 3,600 bonds = $3,924,000
YTM = {C + [(F - P)/n]} / [(F + P)/2] = {17.5 + [(1000 - 1090)/16]} / [(1000 + 1090)/2] = (17.5 - 5.625) / 1045 = 1.136% x 2 = 2.27% annual
second bond:
FMV = 0.95 x $2,000 = $1,900 x 3,950 bonds = $7,505,000
YTM = {C + [(F - P)/n]} / [(F + P)/2] = {59.4 + [(2000 - 1900)/42]} / [(2000 + 1900)/2] = (59.4 + 2.38) / 1950 = 3.168% x 2 = 6.34% annual
total debt = $3,924,000 + $7,505,000 = $11,429,000
weighted average after tax cost of debt:
{($3,924,000/$11,429,000 x 2.27%) + ($7,505,000/$11,429,000 x 6.34%)} x (1 - 0.40) = (0.779% + 4.163%) x 0.6 = 4.942% x 0.6 = 2.9652%
TEB budgeted the following production cost for 1,000 units of product for job 588 during 20XX: Direct Materials (DM) 400 pounds at $5 per pound $ 2,000 Direct Labor (DL) 1,500 hours at $15 per hour 22,500 Manufacturing Overhead (MO) 1,500 Machine hours at $10* per machine hour 15,000 Total 39,500 *$60,000 estimated overhead for the year divided by 6,000 estimated machine hours for the year = $10 estimated overhead per machine hour. TEB, Inc. incurred the following actual costs for job 588: Direct Materials (DM) 420 pounds at $5.50 per pound $ 2,310 Direct Labor (DL) 1,540 hours at $14.50 per hour 22,330 Manufacturing Overhead (MO) $62,000 actual overhead for the year; 5,900 actual machine hours; 1,600 actual machine hours used on job 588 ? Compute the total cost (DM, DL, and MO) of job 588 using standard costing Using standard costing, what is the total job cost?
Answer:
Total Product cost for Job 588 is $ 41,453
Explanation:
Direct Materials (DM) = 420 pounds at $5.50 per pound = $ 2,310
Direct Labor (DL) = 1,540 hours at $14.50 per hour = $22,330
Manufacturing Overhead (MO) $62,000
actual overhead for the year; 5,900
actual machine hours; 1,600 actual machine hours used on job
Total Product Cost:
Overhead = ($62,000 ÷ 5,900) × 1600 = $16,813.56
Total Product Cost for Job 588 = $2,310 + $22,330 + $16,813.56
= $ 41,453.56
Total Product cost for Job 588 is $ 41,453
"Widmer Company had gross wages of $320,000 during the week ended June 17. The amount of wages subject to social security tax was $320,000, while the amount of wages subject to federal and state unemployment taxes was $48,000. Tax rates are as follows:
Social security 6.0%
Medicare 1.5%
State unemployment 5.4%
Federal unemployment 0.8%"
The total amount withheld from employee wages for federal taxes was $46,000.
Required:
a. Journalize the entry to record the payroll for the week of June 17.
b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.
Answer:
Dr salaries expense $320,000
Cr salaries payable $250,000
Cr medicare payable $4,800
Cr social security payable $19,200
Cr federal income taxes payable $46,000
Dr payroll tax expense $26976
Cr medicare payable $4,800
Cr social security payable $19,200
Cr state unemploymet tax payable($48,000*5.4%) $2592
Cr federal uneployment tax payable($48,000*0.8%) $384
Explanation:
The payroll for week of June 17 requires that salaries expense is debited with $320,000 while social security is credited with $ 19,200.00 ($480,000*6%).
Medicare is credited with $4,800 (1.5%*$320,000)
Federal income tax payable is $46,000
salaries payable=$320,000-$4,800-$19,200-$46,000
Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Jason Payne, Capital; Jason Payne, Drawing; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.
Transactions
Oct. 1 Paid rent for the month, $2,800.
3 Paid advertising expense, $525.
5 Paid cash for supplies, $1,250.
6 Purchased office equipment on account, $9,300.
10 Received cash from customers on account, $16,600.
15 Paid creditors on account, $3,720.
27 Paid cash for miscellaneous expenses, $590.
30 Paid telephone bill (utility expense) for the month, $275.
31 Fees earned and billed to customers for the month, $50,160.
31 Paid electricity bill (utility expense) for the month, $830.
31 Withdrew cash for personal use, $1,700.
Journalize the following selected transactions for October 2019 in a two-column journal. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Oct. 1
Rent Expense $2,800 (debit)
Cash $2,800 (credit)
Oct 3.
Advertising Expense $525 (debit)
Cash $525 (credit)
Oct 5.
Supplies $1,250 (debit)
Cash $1,250 (credit)
Oct 6.
Office Equipment $9,300 (debit)
Accounts Payable $9,300 (credit)
Oct 10.
Cash $16,600 (debit)
Accounts Receivable $16,600 (credit)
Oct 15.
Accounts Payable $3,720 (debit)
Cash $3,720 (credit)
Oct 27.
Miscellaneous Expense $590 (debit)
Cash $590 (credit)
Oct 30.
Utilities Expense $275 (debit)
Cash $275 (credit)
Oct 31.
Accounts Receivable $50,160 (debit)
Fees Earned $50,160 (credit)
Oct 31.
Utilities Expense $830 (debit)
Cash $830 (credit)
Oct 31.
Capital; Jason Payne $1,700 (debit)
Cash $1,700 (credit)
Explanation:
Transactions are recorded when they occur or incur according to Matching Principle.
Note ; Cash withdrawals reduce the owners capital account and decreases the assets of cash.
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.
Match each of the following formulas and phrases with the term it describes.
Clear All
(Actual Direct Labor Hours - Standard Direct Labor Hours) × Standard Rate per Hour
(Actual Rate per Hour - Standard Rate per Hour) × Actual Hours
(Actual Price - Standard Price) × Actual Quantity
(Actual Quantity - Standard Quantity) × Standard Price
Standard variable overhead for actual units produced
Direct labor time variance
Direct labor rate variance
Direct materials price variance
Budgeted variable factory overhead
Direct materials quantity variance
Answer:
Results are below.
Explanation:
Match each of the following formulas and phrases with the term it describes.
A) (Actual Direct Labor Hours - Standard Direct Labor Hours) × Standard Rate per Hour
This is the formula for Direct labor time (efficiency) variance
B) (Actual Rate per Hour - Standard Rate per Hour) × Actual Hours
This is the formula for Direct labor rate variance
C) (Actual Price - Standard Price) × Actual Quantity
This is the formula for Direct materials price variance
D) (Actual Quantity - Standard Quantity) × Standard Price
This is the formula for Direct materials quantity variance
E) Standard variable overhead for actual units produced
Budgeted variable factory overhead
Let us assume two students must prepare a presentation for their economics class. As part of their class presentation, they must do a series of calculations and prepare 50 PowerPoint slides. It would take James 10 hours to do the required calculation and 10 hours to prepare the slides. It would take Jane 12 hours to do the series of the calculations and 20 hours to prepare the PPT slides. A. How much time would it take the two students to complete the project if they divide the two tasks equally?B. How much time would it take the two students to complete the project if they use comparative advantage and specialize in calculating or preparing slides? C. If Larry and Kate have the same opportunity cost of $5 per hour, is there a better solution than for each to specialize in calculating or preparing slides?
Answer:
A. How much time would it take the two students to complete the project if they divide the two tasks equally?
James needs 10 hours to complete half the task and Jane needs 16 hours to do her part = total work 26 hoursB. How much time would it take the two students to complete the project if they use comparative advantage and specialize in calculating or preparing slides?
If they specialize, then Jane should do the calculations (12 hours) and James should prepare the slides (10 hours) = total work 22 hoursC. If James and Jane have the same opportunity cost of $5 per hour, is there a better solution than for each to specialize in calculating or preparing slides?
Yes, Jane should pay James so that he does the whole work all by himself. Since James opportunity cost is $5 per hour, his total economic cost of doing the work is $100, and half of that is $50. Jane's economic cost of doing her part is $60 (= 12 x $5), so if she pays any amount lower than $60 and equal or higher than $50 to James, then they would both win.Explanation:
50 powerpoint slides
James needs 10 hours to do the calculations and 10 hours to prepare the slides = 20 hours total / 2 = 10 hours
Jane needs 12 hours to do the calculations and 20 hours to prepare the slides = 32 hours total / 2 = 16 hours
James's opportunity cost of doing the calculations or preparing the slides is 10 / 10 = 1
Jane's opportunity cost of doing one hour of calculations is 20 / 12 = 1.67 hours of preparing slides.
Jane's opportunity cost of doing one hour of preparing slides is 12 / 20 = 0.6 hours of calculations.
You and your new spouse each bring home $1400 each month after taxes and other payroll deductions. By living frugally, you intend to live on just one paycheck and save the other in a mutual fund yielding 7.83% compounded monthly. How long will it take to have enough for a 20% down payment on a $165,000 condo in the city? (Round your answer to two decimal places.)
Answer:
22 months
Explanation:
The 20% down payment which is target savings =$165,000*20%=$33,000
The are two paychecks which is $1,400 each
monthly savings is one paycheck=$1,400
rate of compounding is 7.83% yearly=7.83%/12=0.006525 monthly
The number of months the savings will reach $33,000 can be computed using the nper formula in excel as shown below:
=nper(rate,pmt,-pv,fv)
rate is the monthly rate i,e 0.006525
pmt is the monthly savings of $1,400
pv is the present worth of the savings which is unknown
fv is the future value of target savings which is $33,000
=nper(0.006525,-1400,0,33000)=22 months approximately
Handel Company uses the allowance method for estimating uncollectible accounts.
January 5 Sold merchandise to Terry Richman for $2,000, terms n/15.
April 15 Received $600 from Terry Richman on account.
August 21 Wrote off as uncollectible the balance of the Terry Richman account when she declared bankruptcy.
October 5 Unexpectedly received a check for $300 from Terry Richman. It is not felt any more will be received from Richman.
Prepare journal entries to record the above transactions.
Answer: Please refer to Explanation.
Explanation:
January 2
DR Accounts Receivable - Terry Richman $2,000
CR Sales $2,000
(To record sale of goods to Terry Richman on Account)
April 15
DR Cash $600
CR Accounts Receivable - Terry Richman $600
(To record cash received from Terry Richman)
August 21
DR Allowance for Doubtful Debt $1,400
CR Accounts Receivable - Terry Richman $1,400
(To record write off of Terry Richman Account)
October 5
DR Accounts Receivable - Terry Richman $300
CR Allowance for Doubtful Debt $300
October 5
DR Cash $300
CR Accounts Receivable $300
(To record Cash Received from Terry Richman)
Workings and Notes.
Terry Richman paid $600 out of their $2,000 debt before declaring bankruptcy.
= 2,000 - 600
= $1,400.
This is why $1,400 was the written off figure.
When an Receivables account is written off, it is debited to the Allowance for Doubtful Debt Account.
When money is unexpectedly received after a write off, the amount first has to be retrieved from the Allowance for Doubtful Debt and taken back to the Accounts Receivables and then it can be recorded as Cash received.
Mexican Peso Changes. In December 1994, the government of Mexico officially changed the value of the Mexican peso from 3.22 pesos per dollar to 5.53 pesos per dollar.What was the percentage change in its value? Was this adepreciation, devaluation, appreciation, or revaluation? Explain. What was the percentage change in its value? The percentage change in peso value is ____%. (Round to two decimal places.)Was this a depreciation, devaluation, appreciation, orrevaluation? Explain. (Select all the choices that apply.)
A. Anytime a government sets or resets the value of its currency, it is a managed or fixed exchange rate. If that is the case, any change in its official value must be either a "revaluation" or "depreciation." In thiscase, a revaluation.
B. Anytime a government sets or resets the value of its currency, it is a managed or fixed exchange rate. If that is the case, any change in its official value must be either an "appreciation" or "devaluation." In this case, an appreciation.
C. Anytime a government sets or resets the value of its currency, it is a managed or fixed exchange rate. If that is the case, any change in its official value must be either a"revaluation" or "devaluation." In this case, a devaluation.
D. This is evident from the fact that it now takes more pesos per U.S. dollar, so its value is less or devalued. In terms of the percentage change calculation, this is indicated by the negative percentage change.
Answer:
The correct answer is options C na d D
Explanation:
Solution
There was a difference in value of Mexican peso by the government ranging from 3.22 pesos per dollar to 5.53 pesos per dollar.
Now,
The percentage change in percentage is given as:
(beginning - ending) / ending = (3.22 - 5.53) / 5.53
Hence, the value of peso of change in percentage is = -41.77%
Thus,
The value change in currency is known as devaluation.
For floating exchange rate case, currency either depreciates or appreciates with regards to the factors of market However,
In this given question,the government has set again the value of it's currency, it is known to be either fixed or managed exchange rate.
Assume the profit margin and dividend payout ratio are constant. By what amount will retained earnings increase if sales are projected to increase by 11 percent? Currently, the firm’s sales =$4,700, net income is $420, total assets=7890, dividends=125, A/P =790, LTD= 3130, and common stock=2780, and retained earnings =1190.
Answer:
The amount will retained earnings increase if sales are projected to increase by 11 percent is $327,45
Explanation:
In order to calculate the amount will retained earnings increase if sales are projected to increase by 11 percent we would have to make the following calculation:
amount will retained earnings increase=(net income-dividends)*increase percentage
amount will retained earnings increase= ($420-$125)*1.11
amount will retained earnings increase= $ 327.45
The amount will retained earnings increase if sales are projected to increase by 11 percent is $327,45
Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, saving amounts to $3,000 and consumption amounts to $24,000; and in Cartar, saving amounts to $10,000 and consumption amounts to $50,000. The saving rate is
Answer:
The savings rate is higher in Aire than in Carttar and it is higher in cartar than in Bolivia.
Explanation:
To calculate savings rate:
[(Total income - consumption)/total income] x 100
Where total income = consumption + savings.
The savings rates are as follows
Aires: [(16000 -12,000)/16000] x 100
= 400/16
= 25%
Bovina: [(27000 - 24000)/27000] x 100
= 300/27
= 11.11%
Cartar: [(60000 - 50000)/60000] x 100
= 100/6
= 16.67%