Answer:
Part A
Nakajima Co
Bank reconciliation as at July 31
Balance as per Bank Statement $19,540
Add Outstanding Lodgments $3,000
Less Unpresented Checks ($3,740)
Balance as per Cash Book $18,800
Part B
Amount to be reported as cash is $18,800
Explanation:
A Bank reconciliation statement is used to check the accuracy of the Cash Book balance.
The Updated Cash Book after the items that are in Bank Statement but not in Cash Book must always show the same amount as with the Bank Reconciliation Statement.
Northwest Clothing Supply has the following transactions during the year related to stockholders' equity:
January 1 Issues 3,000 shares of no-par value common stock for $22 per share.
March 15 Issues 900 shares of $20 par value preferred stock for $23 per share.
December 1 Declares a cash dividend of $1 per share to all stockholders of record (both common and preferred) on December 15.
December 15 Northwest Clothing Supply has fixed the Record Date for both common and preferred shares as December 15.
December 31 Pays the cash dividend declared on December 1.
Required:
Record each of these transactions.
Answer:
January 1
Debit : Cash $66,000
Credit : Common Stock (3,000 x $22) $66,000
March 15
Debit : Cash $20,700
Credit : Preferred Stock ($20 x 900) $18,000
Credit : Preferred Stock Paid in excess of Par ($3 x 900) $ $2,700
December 1
Debit : Dividends ($3000 + $900) $3,900
Credit : Shareholders for dividends $3,900
December 15
No Journal entry required here !
December 31
Debit : Shareholders for dividends $3,900
Credit : Cash $3,900
Explanation:
It is very important to identify the Par Value and No Par Value Stock issues.
Par Value Stock issues are sometimes issued above their Par so a Reserve - Paid In Excess of Par has to be created.
No Par Value issued are simply recorded at paid up or issue price.
Why are slideshows the most common visual aid? Support your answer.
Answer: Mostly because it allows the speaker to use verbal and nonverbal communication to solidify the message and provide a point of reference for the mind. Using visual aids refreshes the mind and engages it in a different way, renewing the attention span. <3
Explanation:
A construction firm can achieve a $15,000 cost savings in Year 1, increasing by $3000 each year for the next 5 years, by converting their diesel engines for biodiesel fuel. At an interest rate of 15%, what is the equivalent annual worth of the savings?
Answer: $21291.6
Explanation:
The equivalent annual worth of the savings will be calculated thus:
Annual cost savings in year 1 = $15000
Increase in annual cost savings = $3000
Project period = 6 years
Interest rate = 15%
Annual worth of savings = A + G(A/G, 15%, 6)
= 15000 + 3000(15,000/3000, 5%, 6)
= 15000 + 3000(5000, 0.15, 6)
= 15000 + 3000(2.0972)
= 15000 + 6291.6
= 21291.6
Therefore, the annual worth of savings will be $21291.6
In a small, closed economy, national income (GDP) is $400.00 million for the current year. Individuals have spent $150.00 million on the consumption of goods and services. They have paid a total of $200.00 million in taxes, and the government has spent $150.00 million on goods and services this year. Use this information and the national income identity to answer the questions. How much is spent on investment in this economy
Answer: $100 million
Explanation:
National Income (GDP) for a close nation is calculated as:
= Consumption + Investment + Government spending
Making investment the subject would give us:
Investment = GDP - Consumption - Government spending
= 400 - 150 - 150
= $100 million
Assume that two individuals agree to form a partnership. Partner A is contributing an operating business that reports the following balance sheet: Cash $14,000 Accounts payable $42,000 Receivables 28,000 Accrued liabilities $28,000 Inventories 56,000 Total liabilities $70,000 Total assets $98,000 Net assets $28,000 Partner B is contributing cash of $77,000. The partners agree that the initial capital of the partnership should be shared equally. Prepare the journal entry to record the capital contributions of the partners using both the Bonus Method and the Goodwill Method.
Answer:
Explanation:
By using the Bonus method for the initial investment:
The overall total capital contributed that can be identified as:
= $28,000 + $77,000
= $105,000
If the unidentifiable assets are not registered, each partner will begin with:
=[tex]\dfrac{ \$ 105,000}{2}[/tex]
= $52,500
Journal Entry: For Bonus Method
Description Debit Credit
Cash 91,000
Receivables 28,000
Inventories 56,000
Accounts Payable 42,000
Accrued Liabilities 28,000
Capital for Partner A, 52,500
Capital for Partner B, 52,500
[The business began with a small initial investment]
Using the Goodwill method for the initial investment:
The value of A's unrecognizable assets is calculated using B's allocation (50 percent)
Total partnership capital [tex]=(\$77000 \times \dfrac{100}{50}) - ( 28000 + 77000)[/tex]
= $49,000
Thus, Goodwill = $49,000
Journal Entry : For Goodwill Method
Description Debit Credit
Cash 91,000
Receivables 28,000
Inventories 56,000
Goodwill 49,000
Accounts Payable 42,000
Accrued Liabilities 28,000
Capital for Partner A, 77,000
Capital for Partner A, 77,000
[The business began with a small initial investment]
The average of growth for slow-growth countries is around 2% per year, and for fast-growth, greater than 5% per year. Suppose the growth rate of the economy is 2%.
a. The size of the economy roughly doubles every :__________
b. If instead the growth rate is 7%, the doubling time for the economy is:_________
c. Economy growth is important to understand because :_______
Answer: a. 36 years
b. 10 years
c. a. It is closely tied to standard of living.
Explanation:
a. The Rule of 72 simply states that an amount will double for a certain number of period when using the formula:
= 72 / growth rate
= 72 / 2
= 36 years
b. When the growth rate is 7%, the doubling time for the economy will be:
= 72 / growth rate
= 72 / 7
= 10 years approximately
c. The options are:
Economic growth is important to understand because:
a. It is closely tied to standard of living.
b. Growth guarantees that the rich get richer and the poor get poorer.
c. Income equality cannot exist without growth.
d. Understanding economic growth is key to getting a banking job after graduation
It is January 2nd. Senior management of Digby meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 50,000 shares of stock plus a new bond issue. The CFO happily notes this will raise their Leverage (Assets/Equity) to a new target of 2.48. Assume the stock can be issued at yesterday's stock price $20.46. Which of the following statements are true?
a. Digby working capital will be unchanged at $17,929,457
b. Total investment for Digby will be $2,721,439
c. Digby will issue stock totaling $1,129,499
d. Digby bond issue will be $46,377
e. Long term debt will increase from $33,575,852 to $34,705,351
f. Total Assets will rise to $145,921,995
Answer:
Digby will issue stock totaling $1,023,000Long term debt will increase from $33,575,852 to $34,598,852Explanation:
50,000 shares were issued at $20.46.
This means the total raised from stock sales were:
= 50,000 * 20.46
= $1,023,000
Long term debt will increase by:
= Debt + New issue
= 33,575,852 + 1,023,000
= $34,598,852
Note: The options listed are most probably for a variant of this question. Also, Stock issues are considered equity but for the sake of this question are considered Long term debt.
Aqua Company produces two products−Alpha and Beta. Alpha has a high market share and is produced in bulk. Production of Beta is based on customer orders and is custom designed. Also, 55% of Beta's cost is shared between design and setup costs, while Alpha's major portions of costs are direct costs. Alpha is using a single cost pool to allocate indirect costs. Which of the following statements is true of Aqua?
A. Aqua will overcost Beta's direct costs as it is using a single cost pool to allocate indirect costs.
B. Aqua will undercost Alpha's indirect costs because alpha has high direct costs.
C. Aqua will overcost Alpha's indirect costs as it is using a single cost pool to allocate indirect costs.
D. Aqua will overcost Beta's indirect costs because beta has high indirect costs.
Answer: C. Aqua will overcost Alpha's indirect costs as it is using a single cost pool to allocate indirect costs.
Explanation:
Aqua is using a single cost pool to allocate indirect costs which means that the indirect costs of both Alpha and Beta will be included in this cost pool.
This will overcost Alpha because Alpha only has minor portions of indirect costs while Beta has significant indirect costs. Putting both products together means that a lot of indirect costs assigned to Alpha will be from Beta which would mean that Alpha is overcosted.
29) Sheldon Company is trying to decide which one of two contracts it will accept. The costs and revenues associated with each are listed below: Contract A Contract B Contract Revenue $ 200,000 $ 260,000 Materials 10,000 10,000 Labor 88,000 120,000 Depreciation on Equipment 8,000 10,000 Cost Incurred for Consulting Advice 1,500 1,500 Allocated Portion of Overhead 5,000 3,000 The equipment was purchased last year and has no resale value. Which of these amounts is relevant for the selection of one contract over another
Answer:
So, the relevant cash flows are Revenue, materials and labour cost.
Explanation:
A relevant cashflow is that which is future cash cost/revenue which arises as a direct consequence of a decision. For a cost or revenue to be considered a relevant cashflow it must satisfy the following conditions:
1) Futuristic 2).Cash based 3)Incremental
Relevant cash flows for the contracts are set down below:
$ $
Revenue 200,000 260,000
Materials (10,000) (10,000)
Labor (88,000) (120,000)
Net cash flow 102,000 130,000
Depreciation is not a cash item, the consulting advice fee is already a sunk cost. Apportioned overhead is also not a direct cost but sunk
So, the relevant cash flows are Revenue, materials, labour
Duo, Inc., carries two products and has the following year-end income statement (000s omitted): Product AR-10 Product ZR-7 Budget Actual Budget Actual Units 2,000 2,800 6,000 5,600 Sales $ $ 6,000 $ 7,560 $ 12,000 $ 11,760 Variable costs 2,400 2,800 6,000 5,880 Fixed Costs 1,800 1,900 2,400 2,400 Total Costs $ 4,200 $ 4,700 $ 8,400 $ 8,280 Operating income $ 1,800 $ 2,860 $ 3,600 $ 3,480 The sales quantity variance that would complement the variance calculated in the previous question is:
Answer:
$480
Explanation:
Calculation to determine what The sales quantity variance that would complement the variance calculated in the previous question is:
First step is to calculate Sales mix: budget for
AR-10
Total units: budget = 2,000 + 6,000
Total units: budget = 8,000
Actual units = 2,800 + 5,600
Actual units= 8,400
Sales mix: budget: 2000/8000
Sales mix: budget = 25%
(8,400-8,000) x.25 x $1.80
= $180 favorable
For ZR-7:Sales mix: budget: 6000/8000 = 75%(8400-8000) x.75 x $1.00 = $300
favorableTotal quantity variance: $180 + $300 = $480
.
Therefore The sales quantity variance that would complement the variance calculated in the previous question is:$480
Identify which are goals of monetary policy, and which are not. Goals of monetary policy Not goals of monetary policy Answer Bank financial market stability increasing the size of the financial sector economic growth high inflation improving banks' profits high employment price stability Which two goals are often called the dual mandate of the Federal Reserve
Answer:
goals of monetary policy
financial market stability
economic growth
high employment
price stability
Not goals of monetary policy
increasing the size of the financial market
high inflation
improving banks' profits
Dual mandate : high employment
price stability
Explanation:
Monetary policy are policies taken by the central bank of a country to increase or reduce aggregate demand.
There are two types of monetary policy :
Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy
Contractionary monetary policy : these are policies taken to reduce money supply. When money supply decreases, aggregate demand falls. Increasing interest rate and open market sales are ways of carrying out contractionary monetary policy
Goals of monetary policy include
financial market stability economic growth high employment price stabilityThe dual mandate of the Federal Reserve was birthed as a result of the stagflation of the 1970s. Stagflation is a period of high unemployment and high inflation levels
The dual mandate are : high employment, stable prices and moderate long-term interest rates.
Exercise 14-08 a-b (Video) (Part Level Submission) Cheyenne Corp. incurred the following costs while manufacturing its product. Materials used in product $129,100 Advertising expense $53,200 Depreciation on plant 64,600 Property taxes on plant 16,000 Property taxes on store 8,160 Delivery expense 24,300 Labor costs of assembly-line workers 111,300 Sales commissions 40,100 Factory supplies used 28,700 Salaries paid to sales clerks 57,100 Work in process inventory was $14,500 at January 1 and $16,800 at December 31. Finished goods inventory was $69,500 at January 1 and $46,000 at December 31. Collapse question part (a) Compute cost of goods manufactured. Cost of goods manufactured
Answer:
(a) Cost of goods manufactured = $347,400
(b) Cost of goods sold = $370,900
Explanation:
Note: The requirement of this question is not complete. The complete requirement is therefore provided before answering the question as follows:
(a) Compute cost of goods manufactured.
(b) Compute cost of goods sold.
(a) Compute cost of goods manufactured.
This can be computed as follows:
Cost of goods manufactured = Direct materials used + Labor costs of assembly-line workers + Depreciation on plant + Factory supplies used + Property taxes on plant + Work in Process at January 1 - Work-in-process at December 31 = $129,100 + $111,300 + $64,600 + $28,700 + $16,000 + $14,500 - $16,800 = $347,400
(b) Compute cost of goods sold.
This can be computed as follows:
Cost of goods sold = Finished goods inventory at January 1 + Cost of goods manufactured - Finished goods inventory at December 31 = $69,500 + $347,400 - $46,000 = $370,900
The Computer Division would like to purchase 17,000 units each period from the Keyboard Division. The Keyboard Division has ample excess capacity to handle all of the Computer Division's needs. The Computer Division now purchases from an outside supplier at a price of $37. If the Keyboard Division refuses to accept an $35 price internally, the company, as a whole, will be worse off by:
Answer:
$136,000
Explanation:
Calculation to determine how much will the company, as a whole, will be worse off by
Using this formula
Worse off amount =(Purchases from an outside supplier -Variable cost per unit)*Units purchased
Let plug in the formula
Worse off amount =($37-$29)*17,000
Worse off amount =$8*17,000
Worse off amount =$136,000
Therefore the company, as a whole, will be worse off by $136,000
A VC investor has invested $5 million in the preferred stock of a venture that is now being acquired for $50 million. The investment has a 2X liquidation preference . Alternatively the preferred stock is convertible into 25% of the common shares that would be outstanding prior to the acquisition. What is the best payoff the VC investor can get from the acquisition
Answer: $12.5 million
Explanation:
The best payoff the VC investor can get from the acquisition will be:
From the question, we've two options. The first option using the 2x Liquidation Preference will give a payoff of:
= 2 × $5 million
= $10 million
The second option using 25% of Common Shares will give a payoff of:
= 25% × $50 million
= 0.25 ÷ $50 million.
== $12.5 million
Therefore, the best Payoff is $12.5 Million.
The Human Services career path is where "public servants" of the world work.
True
False
Answer:
false
Explanation:
Dawls Corporation reported stockholders' equity on December 31 of the prior year as follows:
Common stock, $5 par value, 1,000,000 shares
authorized 500,000 shares issued $2,500,000
Contributed capital In excess of par, common stock 1,000,000
Retained earnings 3,000,000
The following selected transactions occurred during the current year.
Feb. 15 The board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 20. The stock was selling for $8 per share.
March 9 Distributed the stock dividend.
May 1 A cash dividend of $.30 per share was declared by the board of directors to stockholders of record on May 20, payable June 1.
June 1 Paid the cash dividend.
Aug. 20 The board decided to split the stock 4-for-1, effective on September 1.
Sept. 1 Stock split 4-for-1.
Dec. 31 Earned a net income of $800,000 for the current year.
Required:
Prepare a statement of retained earnings as of December 31 of the current year.
Answer:
Dawls Corporation
A Statement of Retained Earnings as of December 31 of the current year:
Retained earnings, Jan. 1 $3,000,000
Current year's net income 800,000
Stock dividend (125,000)
Cash dividend (157,500)
Retained earnings, Dec. 31 $3,517,500
Explanation:
a) Data and Calculations:
Common stock, $5 par value, 1,000,000 shares
authorized 500,000 shares issued $2,500,000
Contributed capital In excess of par, common stock 1,000,000
Retained earnings 3,000,000
Total equity $6,500,000
b) Analysis:
Feb. 15 Stock Dividends $125,000 (25,000 * $5) 25,000 shares(500,000 * 5%)
May 1 Cash Dividends $157,500 (525,000 * $0.30)
Dec. 31 Net income $800,000
c) Statement of Stockholders' Equity as of December 31
Common stock, $1.25 par value, 4,000,000 shares
authorized 2,100,000 shares issued $2,625,000
Contributed capital In excess of par, common stock 1,000,000
Retained earnings 3,517,500
Total equity $7,142,500
In finance, equity involves the purchase of assets that may or may not be associated with loans or other liabilities. For accounting reasons, equity is calculated by subtracting liabilities from the amount of property.
Dawls Corporation
A Statement of Retained Earnings as of December 31 of the current year:
Retained earnings, Jan. 1 $3,000,000
Current year's net income 800,000
Stock dividend (125,000)
Cash dividend (157,500)
Retained earnings, Dec. 31 $3,517,500
Working Notes:
a) Data and Calculations:
Common stock, $5 par value, 1,000,000 shares
authorized 500,000 shares issued $2,500,000
Contributed capital In excess of par, common stock 1,000,000
Retained earnings 3,000,000
Total equity $6,500,000
b) Analysis:
Feb. 15 Stock Dividends $125,000[tex](25,000 \times \$5)[/tex] 25,000 shares[tex](500,000 \times5\%)[/tex]
May 1 Cash Dividends $157,500 [tex](525,000 \times \$0.30)[/tex]
Dec. 31 Net income $800,000
c) Statement of Stockholders' Equity as of December 31
Common stock, $1.25 par value, 4,000,000 shares
authorized 2,100,000 shares issued $2,625,000
Contributed capital In excess of par, common stock 1,000,000
Retained earnings 3,517,500
Total equity $7,142,500
To know more about the calculation of the equity, refer to the link below:
https://brainly.com/question/16986414
Wildhorse Company issued $500,000, 5%, 20-year bonds on January 1, 2020, at 102. Interest is payable annually on January 1. Wildhorse uses straight-line amortization for bond premium or discount. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
A. Dr Cash $510,000
Cr Bonds Payable $500,000
Cr Premium on Bonds Payable $10,000
B. Dr Interest expense $24,667
Dr Premium on bonds payable$333
Cr Interest Payable $25,000
C. Dr Interest Payable $25,000
Cr Interest Expense $25,000
D. Dr Bond payable $500,000
Cr Cash $500,000
Explanation:
(a) Preparation of the journal entry to record the issuance of the bonds
Dr Cash $510,000
($500,000 x 1.02 = $510,000)
BCr BondsPayable $500,000
Cr Premium on Bonds Payable $10,000
($510,000-$500,000)
(To record the issuance of the bonds)
B. Preparation of the journal entry to record Accrual of interest and the premium amortization
Dr Interest expense $24,667
($25,000-$333)
Dr Premium on bonds payable$333
($10,000/30)
Dr Interest Payable $25,000
($500,000*5%)
(To record Accrual of interest and the premium amortization)
C. Preparation of the journal entry to record the payment of interest
Dr Interest Payable $25,000
($500,000*5%)
Cr Interest Expense $25,000
(To record the payment of interest)
D. Preparation of the journal entry to record the bonds at maturity
Dr Bond payable $500,000
Cr Cash $500,000
(To record the bonds at maturity)
critically discuss two emotional / personal benifits that will motivate you to find a job
Classification of Cash Flows The following are several transactions and events that might be disclosed on a company's statement of cash flows: Required: 1. Identify in which section (if any) of the statement of cash flows each of the preceding items would appear and indicate whether it would be an inflow (addition) or outflow (subtraction). a. issuance of common stock Financing activities; inflow (addition) b. purchase of building Investing activities; outflow (subtraction) c. net income Operating activities; inflow (addition) d. increase in accounts receivable Operating activities; inflow (addition) e. depreciation expense Operating activities; outflow (subtraction) f. sale of land at cost Operating activities; inflow (addition) g. conversion of bonds to common stock Financing activities; inflow (addition) h. increase in accounts payable Investing activities; outflow (subtraction) i. payment of cash dividends Financing activities; outflow (subtraction) j. issuance of a stock dividend Operating activities; outflow (subtraction)
Answer:
Classification of Cash Flows
Transaction Statement of Cash Flows Section
a. issuance of common stock Financing activities; inflow (addition)
b. purchase of building Investing activities; outflow (subtraction)
c. net income Operating activities; inflow (addition)
d. increase in accounts receivable Operating activities; outflow (subtraction)
e. depreciation expense Non-cash flow activities; No flow (but addition to net income)
f. sale of land at cost Investing activities; inflow (addition)
g. conversion of bonds to common stock Non-cash Financing activities; No flow (No addition or subtraction)
h. increase in accounts payable Operating activities; inflow (addition)
i. payment of cash dividends Financing activities; outflow (subtraction)
j. issuance of a stock dividend Non-cash financing activity; No flow (No addition or subtraction)
Explanation:
Sections of the Statement of Cash Flows:
Operating Activities section records the inflow and outflow of cash generated from normal business activities.
Investing Activities section records the inflow and outflow of cash resulting from the procurement and sale of non-current assets and other investments in securities, including stocks and bonds.
Financing Activities section records the inflow and outflow of cash from short-term and long-term liabilities and owner's equity. The inflows are used for financing the business activities while the outflows are for repayments.
J.C. Penney found that its headquarters staff did not understand regional fashion trends. Consequently, the company invested in TV communications technology that allowed New York buyers to communicate with local store managers. This communication was set to effectively use: Question 9 options: corporate headquarters knowledge base transfer to local stores. local specific knowledge. risk taking by local stores. local general knowledge.
Answer:
local specific knowledge
Explanation:
Since in the question it is mentioned that J.C penny would found that staff is not able to understand the trends also the company invested in the tv communications that permit buyers of new york for communicating with the managers of the local store so here the communication would be effectively used for local specific knowledge as it is transfer from a local store to the headquarters
If a store has a “buy one, get one free” sale and an item costs $10, what is the marginal cost of the second item?
Answer:
D). $0
Explanation:
Marginal cost is described as the 'increase in cost that accompanies a unit increase in the output.' It is characterized as the partial derivative of the cost function with respect to the output. It is calculated by the change in cost divided by the change in quantity. In the given case, the marginal cost for the second item would be $0 because it is for free and if we divide 0/1, we get 0. Thus, there is no additional cost for producing that extra good and hence, option D is the correct answer.
Oriole Company uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows: Units Per unit price Total Balance, 1/1/2017 340 $6.0 $2040 Purchase, 1/15/2017 170 ..6 1003 Purchase, 1/28/2017 170 ..6 1054 An end of the month (1/31/2017) inventory showed that 270 units were on hand. How many units did the company sell during January 2017?
Answer:
The number of units sold by the company during January 2017 is 410.
Explanation:
Note: The data in the question are merged together. They are therefore sorted before answering the question as follows:
Units Per unit price Total
Balance, 1/1/2017 340 $6.0 $2040
Purchase, 1/15/2017 170 ..6 1003
Purchase, 1/28/2017 170 ..6 1054
The explanation of the answer is now given as follows:
Total units available for sales during January 2017 = 340 + 170 +170 = 680
Units on hand at end of the month (1/31/2017) = 270
Number of units sold by the company during January 2017 = Total units available for sales during January 2017 - Units on hand at end of the month (1/31/2017) = 680 - 270 = 410
Therefore, the number of units sold by the company during January 2017 is 410.
For calendar year 2021, Pharoah Corp. reported depreciation of $1640000 in its income statement. On its 2021 income tax return, Pharoah reported depreciation of $2476000. Pharoah's income statement also included $312000 accrued warranty expense that will be deducted for tax purposes when paid. Pharoah's enacted tax rates are 20% for 2021 and 2022, and 15% for 2023 and 2024. The depreciation difference and warranty expense will reverse over the next three years as follows: Depreciation Difference Warranty Expense 2022 $332000 $64000 2023 292000 104000 2024 212000 144000 $836000 $312000 These were Pharoah's only temporary differences. In Pharoah's 2021 income statement, the deferred portion of its provision for income taxes should be
Answer:
Pharoah Corp.
In Pharoah's 2021 income statement, the deferred portion of its provision for income taxes should be:
= $104,800.
Explanation:
a) Data and Calculations:
Tax rates for 2021 and 2022 = 20%
Tax rates for 2023 and 2024 = 15%
2021 Income Statement Depreciation reported = $1,640,000
2021 Income Tax Depreciation on tax return = $2,476,000
Temporary difference due to depreciation = $836,000 ($2,476,000 - $1,640,000)
Temporary difference due to Accrued Warranty Expense = $312,000
Temporary Differences Reversal:
Depreciation Difference Warranty Expense
2022 $332,000 $64,000
2023 292,000 104,000
2024 212,000 144,000
Total $836,000 $312,000
Deferred Tax Liability (Depreciation Difference) = $167,200 ($836,000 * 20%)
Deferred Tax Asset (Warranty Expense) = $62,400 ($312,000 * 20%)
Deferred portion of provision for income taxes = $104,800 ($167,200 - $62,400)
Jamison Company gathered the following reconciling information in preparing its June bank reconciliation: Cash balance per bank, June 30$13,000 Note receivable collected by bank4,000 Outstanding checks7,000 Deposits in transit2,500 Bank service charge35 NSF check1,900 Using the above information, determine the cash balance per books (before adjustments) for Jamison Company. a.$15,065 b.$6,435 c.$8,065 d.$10,565
Answer:
b. $6,435
Explanation:
With regards to the above, balance per books before adjustment is computed as
= Cash balance per bank - Note receivable collected by bank - Outstanding check
= $13,000 - $4,000 - $7,000 + $35 + $1,900 + $2,500
= $6,435
Watson, Inc., is an all-equity firm. The cost of the company’s equity is currently 12 percent, and the risk-free rate is 4.2 percent. The company is currently considering a project that will cost $11.61 million and last six years. The company uses straight-line depreciation. The project will generate revenues minus expenses each year in the amount of $3.27 million. If the company has a tax rate of 40 percent, what is the net present value of the project? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
$-361,190
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
We need to determine cash flows
Cash flow = (revenue - cost - depreciation) (1 - tax rate) + depreciation
3.27 - 1.935) ( 1 - 0.4) + 1.935 = 2.736
Cash flow in year 0 = 11.61 million
Cash flow in year 1 to 6 = 2.736
I = 12
NPV = $0.36 MILLION
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Deshawn wants to fill out a financial application for post-secondary education. What personal information does Deshawn MOST LIKELY need to fill out the application? A) his income B) his childhood address C) his extracurricular activities D) his grade point average in high school
Answer its A
Explanation:
yw
5. Karen is listening to a colleague's idea for reducing customer wait time at the store. Which behavior can Karen exhibit to best demonstrate that she agrees with
her colleague's idea?
O A. Cross her arms in front of her chest
O B. Rub her hands together
O C. Rest her chin in one hand
OD. Nod her head
Exercise 9-5 Writing off receivables LO P2 On January 1, Wei Company begins the accounting period with a $30,000 credit balance in Allowance for Doubtful Accounts. On February 1, the company determined that $6,800 in customer accounts was uncollectible; specifically, $900 for Oakley Co. and $5,900 for Brookes Co. Prepare the journal entry to write off those two accounts. On June 5, the company unexpectedly received a $900 payment on a customer account, Oakley Company, that had previously been written off in part a. Prepare the entries to reinstate the account and record the cash received.
Answer:
Wei Company
1. Journal Entries:
February 1:
Debit Allowance for Doubtful Accounts $6,800
Credit Accounts Receivable $6,800
To write-off the uncollectibles accounts of Oakley Co., $900 and Brookes Co., $5,900.
June 5:
Debit Accounts Receivable (Oakley Co.) $900
Credit Allowance for Doubtful Accounts $900
To reinstate the accounts of Oakley Co.
Debit Cash $900
Credit Accounts Receivable (Oakley Co.) $900
To record the receipt of cash from Oakley Co.
Explanation:
a) Data and Analysis:
January 1: Beginning balance of Allowance for Doubtful Accounts $30,000 credit
February 1: Allowance for Doubtful Accounts $6,800 Accounts Receivable $6,800 (Oakley Co., $900 and Brookes Co., $5,900)
June 5: Accounts Receivable (Oakley Co.) $900 Allowance for Doubtful Accounts $900
June 5: Cash $900 Accounts Receivable (Oakley Co.) $900
Sam and Joan made an offer of $250,000 asking the seller to pay all closing costs. They will put 10% down and pay one discount points at closing. The amount of cash required at closing for Sam and Joan will be?
Answer:
$27,500
Explanation:
Discount points are also called mortgage points and are fees paid as prepaid interest rate on a mortgage property.
One discount point is equivalent to 1% of the loan amount.
In the given scenario a down payment of 10% was made.
Also they are pay one discount point to close.
So total down payment to be made is 10% + 1% = 11%
Amount is cash for closing = 0.11 * 250,000 = $27,500
Alpha began operations in 2015. It reported $500 in revenues. It reported $200 depreciation expense on its 2015 tax return; however, it reported $50 depreciation expense on its 2015 income statement. The difference in depreciation (Alpha's only book-tax difference) is a temporary book-tax difference that will reverse over time. Assuming a constant tax rate of 30%. What will be the balance in the DTL account in Alpha's 2015 balance sheet?
Answer:
$45
Explanation:
Calculation to determine What will be the balance in the DTL account in Alpha's 2015 balance sheet
Using this formula
Deferral Tax Liabiltiy balance =(2015 Reported depreciation expense on tax return-2015 Reported depreciation expense on income statement)*Tax rate
Let plug in the formula
Deferral Tax Liabiltiy balance=($200-$50)*30%
Deferral Tax Liabiltiy balance=$150*30%
Deferral Tax Liabiltiy balance=$45
Therefore What will be the balance in the DTL account in Alpha's 2015 balance sheet is $45