Answers
Answer:
The answer is "[tex]\$16,441[/tex]".
Explanation:
First-year operational and maintenance costs [tex]= \$11,880[/tex].
Operating and repair costs increase inwards[tex]=\$864[/tex] for the first year
N =15 years machine life
Interest [tex]I = 10\%[/tex]annually combined
Please find the image file.
Its single payment sequence is now provided by:
[tex]Amount=(\text{15-year system quantity})\times (\frac{\text{Rate of interest}}{(1-(1+ \text{Rate of interest})- n))}[/tex]
[tex]= \$522,371.3236 \times (\frac{0.1}{(1-(1+0.1)-15)})\\\\[/tex]
Uniform payment sequence [tex]=\$16441.2477 \approx\$16,441[/tex]
Related Questions
Accounts payable, end of year $ 5,643 $ 9,588 Accounts receivable, net, end of year 21,325 16,438 Inventory, end of year 7,944 7,175 Net sales 202,000 167,000 Cost of goods sold 112,000 125,000 (1) Use the information above to compute the number of days in the cash conversion cycle for each year. (2) Did the company manage cash more effectively in the current yea
Answers
Answer:
(1) We have:
Current year cash conversion cycle = 46.03 days
Previous year cash conversion cycle = 28.88 days
(2) The company did NOT manage cash more effectively in the current year.
Explanation:
Cash conversion cycle (CCC) can be described as a metric that is employed to show the length of time, in days, that a company takes to convert inventory and resources into cash flows. The CCC can be calculated using the following formula:
Cash conversion cycle = Days inventory outstanding + Days Sales Outstanding - Days payable outstanding ............ (1)
Where:
Days inventory outstanding = (Ending inventory / Cost of goods sold) * 365
Days Sales Outstanding = (Ending accounts receivable / Net sales) * 365
Days payable outstanding = (Ending accounts payable / Cost of goods sold) * 365
(1) Use the information above to compute the number of days in the cash conversion cycle for each year
Using equation (1) above, we have:
For the Current year, we have:
Days inventory outstanding = (7,944 / 112,000) * 365 = 25.89 days
Days Sales Outstanding = (21,325 / 202,000) * 365 = 38.53 days
Days payable outstanding = (5,643 / 112,000) * 365 = 18.39 days
Therefore, we have:
Current year cash conversion cycle = 25.89 + 38.53 - 18.39 = 46.03 days
For the Previous year, we have:
Days inventory outstanding = (7,175 / 125,000) * 365 = 20.95 days
Days Sales Outstanding = (16,438 / 167,000) * 365 = 35.93 days
Days payable outstanding = (9,588 / 125,000) * 365 = 28.00 days
Therefore, we have:
Previous year cash conversion cycle = 20.95 + 35.93 - 28.00 = 28.88 days
(2) Did the company manage cash more effectively in the current year
Since the Current year cash conversion cycle of 46.03 days is greater than the Previous year cash conversion cycle of 28.88 days, this indicates that the company did NOT manage cash more effectively in the current year.
the second level of conceptual framework includes each of the following except: a. fundamental qualities b. enhancing qualities c. principles d. elements
Answers
8. Percy Original caters to a market of individuals and households that
buys goods and services for personal consumption. Percy Original caters
market.
to a
OA) business
O B) reseller
OC) government
O D) consumer
E) marketing intermediary
Answers
Answer:
vsw vds vDS Vsdvds Vds VSD Vdsv dSVDS vd sV DS
Explanation:
B. In a time study, an analyst observed a worker who prepared hamburgers at the Blimpy Burger restaurant. The recorded average time for the worker to make a hamburger was 4 minutes. Using the Westinghouse performance rating system, the analyst wrote these codes: Skill C1, Effort E1, Conditions D, Consistency B. Assume the following time allowances: personal allowance 4%, fatigue allowance 3%, unavoidable equipment delays 5%. What is the standard time to prepare a hamburger at the Blimpy Burger restaurant
Answers
Answer:
4 minutes and 42 seconds is the standard time.
Explanation:
We observe 4 minutes
The employee has the following factors:
Good Skill(C1) + 0.06
Fair Effort(E1) - 0.04
Average Conditions: 0.00
Excellent Consistency: +0.03
Sum: 0.05
The worker is 5% above average
The allowance will be:
4% personal + 3% fatigue + 5% equipment = 12%
4.00 minutes x (1.05) x (1.12) = 4.704
We convert that in second: 0.704 x 60 = 42 seconds
4 minutes and 42 seconds is the standard time.
Wildhorse Corporation has pretax financial income (or loss) from 2015 through 2021 as follows.
Income (Loss) Tax Rate
2015 $65,280 25%
2016 (95,200) 20%
2017 122,400 20%
2018 40,800 20%
2019 142,800 20%
2020 (81,600) 25%
2021 173,200 25%
Pretax financial income (loss) and taxable income (loss) were the same for all years since Wildhorse has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized.
Required:
a. What entries for income taxes should be recorded for 2015? .
b. Indicate what the income tax expense portion of the income statement for 2016 should look like. Assume all income (loss) relates to continuing operations.
c. What entry for income taxes should be recorded in 2017?
d. How should the income tax expense section of the income statement for 2018 appear?
e. What entry for income taxes should be recorded in 2019?
f. How should the income tax expense section of the statement for 2020 appear to be ?
?
Answers
Answer:
Wildhorse Corporation
a. Entry for income taxes for 2015:
Debit Income Taxes Expense $16,320
Credit Taxes Payable $16,320
To record income taxes expense for the year.
b. Income Tax Expense Portion of the Income Statement for 2016:
Income before taxes (Loss) ($95,200)
Income taxes expense $0
Net Income (Loss) ($95,200)
c. Entry for income taxes for 2017:
Debit Income Taxes Expense $5,440
Credit Taxes Payable $5,440
To record income taxes expense for the year.
d. Income Tax Expense Portion of the Income Statement for 2018:
Income before taxes (Loss) $40,800
Income taxes expense 8,160
Net Income (Loss) $32,640
e. Entry for income taxes for 2019:
Debit Income Taxes Expense $28,560
Credit Taxes Payable $28,560
To record income taxes expense for the year.
f. Income Tax Expense Portion of the Income Statement for 2020:
Income before taxes (Loss) (81,600)
Income taxes expense $0
Net Income (Loss) (81,600)
Explanation:
a) Data and Calculations:
Pretax financial income (or loss) from 2015 through 2021 as follows.
Year Income (Loss) Tax Rate Taxable Taxes Net Income
Income Expense (Loss)
2015 $65,280 25% $65,280 $16,320 $48,960
2016 (95,200) 20% $0 $0 (95,200)
2017 122,400 20% $27,200 $5,440 $116,960
2018 40,800 20% $40,800 $8,160 $32,640
2019 142,800 20% $142,800 $28,560 $114,240
2020 (81,600) 25% $0 $0 (81,600)
2021 173,200 25% $91,600 $22,900 $150,300
Synergy Corp. manufactures LED light bulbs. It applies manufacturing overhead to production on the basis of direct labor hours. A predetermined overhead application rate of $15 per direct labor hour was used for the current fiscal year. Actual manufacturing overhead incurred by Synergy during the year amounted to $100,000 against 9,100 hours, which was the expected number of direct labor hours to be used during the year. Calculate the amount of over- or underapplied overhead during the year.
Answers
Answer:
Under applied overhead of $36,500
Explanation:
With regards to the above , the over or under applied overhead is computed as;
Budgeted overhead = Predetermined overhead application rate per direct labor hour × Expected number of direct labor hours to be used
= $15 × 9,100
= $136,500
Actual manufacturing overhead incurred = $100,000
Budgeted overhead - Actual overhead incurred
= $136,500 - $100,000
= $36,500
The above is under applied over head because what was budgeted is less that what was actually incurred.
Consider a hypothetical economy where there are no taxes and no international trade. Households spend $0.50 of each additional dollar they earn and save the remaining $0.50. If there are no taxes and no international trade, the oversimplified multiplier for this economy is __________
Suppose that the price level in our economy remains the same and that there is still no international trade. Now, however, the government decides to implement an income tax of 5% on each dollar of income. The MPC and MPS, however, remain the same as before. In this case, after accounting for the impact of taxes, the multiplier in this economy is ___________, and a $200 billion decrease in investment spending will lead to a billion in output.
Answers
Answer:
i) 2
ii) 1.9
iii) $200 billion decrease in investment will lead to a $380 billion decrease in output
Explanation:
i) Determine the oversimplified multiplier for this economy
MPC value of the economy = 0.5
spending multiplier = 1 - / 1 - MPC VALUE )
∴ oversimplified multiplier = 1 / 0.5 = 2
ii) Given that the Government implement an income tax of 5%
The Multiplier of the economy = 1 / [ 1 - MPC (1-t) ]
= 1 / [ 1 - 0.5(1-0.05 )]
= 1 / ( 1 - 0.475 ) = 1.9
iii) $200 billion decrease in investment will lead to a $380 billion decrease in output
total change in output = 1.9 * 200 =$ 380
Food and shelter are examples of a need.
False
True
Answers
Answer:
its ture 100% you need food and shelter
Answer:
TrueExplanation:
Food is the things that people and animals eat to stay alive.
Shelter is to protection from the weather or from danger or attack. Stay somewhere that protects you from the weather or from danger or attack.
It’s a small structure that protects you from the weather etc.
These statements are true.
The advantages of cloud computing are security, possible instability, and data control.
t or f
Answers
The advantages of cloud computing are security, possible instability, and data control. True.
What is the meaning of cloud computing?
The distribution of various services, such as data storage, servers, databases, networking, and software, through the Internet is known as cloud computing. Cloud storage has become more and more popular among people who need more storage space and among companies looking for a reliable off-site data backup option.
In order to provide quicker innovation, adaptable resources, and scale economies, cloud computing, in its simplest form, is the supply of computing services via the Internet ("the cloud"), encompassing servers, storage, databases, networking, software, analytics, and intelligence.
Read more on cloud computing here: https://brainly.com/question/19057393
#SPJ1
Kray Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 5,500 Variable costs per unit: Direct materials $ 39 Direct labor $ 27 Variable manufacturing overhead $ 11 Variable selling and administrative expense $ 5 Fixed costs: Fixed manufacturing overhead $ 401,500 Fixed selling and administrative expense $ 451,000 There were no beginning or ending inventories. The variable costing unit product cost was:
Answers
Answer:
the variable costing unit product cost is $77
Explanation:
The computation of the variable costing unit product cost is shown below:
= Direct material + direct labour + variable manufacturing overhead
= $39 + $27 + $11
= $77
hence, the variable costing unit product cost is $77
We simply added the three items so that the variable costing unit could come
The same would be relevant
Problem 17-08A The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $36,600 $20,100 Accounts receivable 32,500 19,600 Inventory 30,100 20,100 Equipment 59,700 77,400 Accumulated depreciation—equipment (29,200 ) (23,000 ) Total $129,700 $114,200 Liabilities and Stockholders’ Equity Accounts payable $28,700 $ 16,800 Income taxes payable 7,400 8,400 Bonds payable 27,300 32,500 Common stock 17,700 13,000 Retained earnings 48,600 43,500 Total $129,700 $114,200 NOSKER COMPANY Income Statement For the Year Ended December 31, 2020 Sales revenue $243,000 Cost of goods sold 176,000 Gross profit 67,000 Operating expenses 24,600 Income from operations 42,400 Interest expense 3,900 Income before income taxes 38,500 Income tax expense 8,800 Net income $29,700 Additional data: 1. Dividends declared and paid were $24,600. 2. During the year, equipment was sold for $8,900 cash. This equipment cost $17,700 originally and had a book value of $8,900 at the time of sale. 3. All depreciation expense, $15,000, is in the operating expenses. 4. All sales and purchases are on account. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash.
Answers
Answer:
a. Net Increase in Cash = $16,500
b. Free Cash Flow = $8,100
Explanation:
Note: This question is not complete it does include the requirements. The two requirements of this question are therefore provided before answering the question as follows:
a. Prepare a statement of cash flows for Nosker Company using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
b. Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
The explanation of the answers are now given as follows:
a. Prepare a statement of cash flows for Nosker Company using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Note: See the attached excel file for the statement of cash flows for Nosker Company using the direct method.
From the attached excel file, we have:
Net Increase in Cash = $16,500
b. Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Free Cash Flow = Operating Activities - Dividend paid = $32,700 - $24,600 = $8,100
The Wilmoths plan to purchase a house but want to determine the after-tax cost of financing its purchase. Given their projected taxable income, the Wilmoths are in the 24% Federal income tax bracket and the 8% state income tax bracket (i.e., an aggregate marginal tax bracket of 32%). Assume that the Wilmoths will benefit from itemizing their deductions for both Federal and state purposes. The total cash outlay during the first year of ownership will be $33,200 ($3,320 principal payments, $29,880 qualified residence interest payments).
As a result, the annual after-tax cost of financing the purchase of the home will be $_____________?
Answers
Answer:
the annual after-tax cost of financing the purchase of the home is $23,638.40
Explanation:
The computation of the annual after-tax cost of financing the purchase of the home is shown below:
= Installment amount - tax saving
= $33,200 - ($29,880 × 32%)
= $33,200 - $9,561.60
= $23,638.4
hence, the annual after-tax cost of financing the purchase of the home is $23,638.40
We simply applied the above formula
Wade Company estimates that it will produce 6,000 units of product IOA during the current month. Budgeted variable manufacturing costs per unit are direct materials $5, direct labor $11, and overhead $17. Monthly budgeted fixed manufacturing overhead costs are $7,500 for depreciation and $3,500 for supervision. In the current month, Wade actually produced 6,500 units and incurred the following costs: direct materials $27,500, direct labor $65,000, variable overhead $110,000, depreciation $7,500, and supervision $3,700. Prepare a static budget report. Hint: The Budget column is based on estimated production while the Actual column is the actual cost incurred during the period. (List variable costs before fixed costs.) Wade Company Static Budget Report Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ $ $ $
Answers
Explanation:
STATIC BUDGET ACTUAL VARIANCE
Units 6000 6500
variable costs
Direct material 30000 27500 2500 favorable
Direct labor 66000 65000 1000 favorable
Manufacturing overhead 102000 110000 8000 Unfavorable
Fixed costs
Depreciation 7500 7500 None
supervision 3500 3700 200 Unfavorable
Total expenses 209000 213700 4700 unfavorable
Harcourt Manufacturing (HM) has the capacity to produce 10,000 fax machines per year. HM currently produces and sells 7,000 units per year. HM currently leases its excess capacity for a rental fee of $12,000. The fax machines normally sell for $100 each. Modem Products has offered to buy 2,000 fax machines from HM for $60 each. Unit-level costs associated with manufacturing the fax machines are $15 each for direct labor and $40 each for direct materials. Product-level and facility-level costs are $50,000 and $65,000, respectively.
Based on this information (ignore qualitative characteristics) :________.
a. HM should reject the offer because accepting it will reduce profitability by $2,000.
b. HM should accept the offer because accepting it will contribute $10,000 to profit.
c. HM should reject the offer because accepting it will reduce profitability by $10,000.
d. HM should accept the offer because accepting it will contribute $12,000 to profit.
A company should accept a special order if: _______.
a. additional revenue is greater than relevant costs.
b. the avoidable cost of making the products is less than the sunk cost.
c. the company is operating at full capacity.
d. qualitative features are unfavorable.
Answers
Answer:
Harcourt Manufacturing (HM)
1. Based on this information (ignore qualitative characteristics) :________.
a. HM should reject the offer because accepting it will reduce profitability by $2,000.
2. A company should accept a special order if: _______.
a. additional revenue is greater than relevant costs.
Explanation:
a) Data and Calculations:
Production capacity for fax machines per year = 10,000
Current production units per year = 7,000
Excess capacity = 3,000 (10,000 - 7,000)
Rental fee for excess capacity = $12,000
Selling price of the fax machine per unit = $100
Unit-level costs:
Direct labor = $15
Direct materials = $40
Total cost per unit = $55
Special order = 2,000 units
Product-level costs= $50,000
Facility-level costs = $65,000
Total revenue from special order = $120,000 (2,000 * $60)
Total variable cost for special order = 110,000 (2,000 * $55)
Contribution margin from special order $10,000 (2,000 * $5)
Comparison with Rental fee $12,000 and $10,000
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis Salaries $ 39,000 Number of employees Depreciation 29,000 Cost of goods sold Advertising 68,000 Net sales Item Drilling Grinding Total Number of employees 1,800 2,700 4,500 Net sales $ 368,000 $ 552,000 $ 920,000 Cost of goods sold $ 121,600 $ 198,400 $ 320,000 The amount of depreciation that should be allocated to Drilling for the current period is:
Answers
Answer: $53820
Explanation:
The amount of depreciation that should be allocated to Drilling for the current period will be:
Salaries = (39000 × 1800/4500) = 15600
Add: Depreciation = (29000 × 121600/320000) = 11020
Add: Advertising = (68000 × 368000/920000) = 27200
Total = 53820
As the full-time bookkeeper, your job is to make any corrections to the general ledger accounts. Each correction needs the reason for the change and the effect on each account, whether it is an increase or decrease. For the third time this month, a co-worker has recorded a cash receipt twice and wants you to record a correcting entry that will reverse the mistakes. The correcting entry will record a credit to the Cash account and a debit to the Sales account. Your co-worker has offered to buy you dinner for fixing this mistake.
Required:
What should you investigate before making a decision about the correcting entry?
Answers
Answer: See explanation
Explanation:
Based on the information given, we are informed that the co-worker has recorded a cash receipt twice and wants the full time bookkeeper to record a correcting entry that will reverse the mistakes.
Before making a decision about the correcting entry, it is necessary to check the entry and cross check the balances for sales and cash. One has to also check the receipts and every other necessary details in order to make sure that the transaction is genuine and not fraudulent.
After the through check, if the person is sure and confident that everything is okay, then the correcting entry can be made.
After researching Best Buy common stock, Sally Jackson is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 150 shares of Best Buy. At the time of the sale, a share of common stock had a value of $53. Three months later, Best Buy is selling for $55 a share, and Sally instructs her broker to cover her short transaction. Total commissions to buy and sell the stock were $82. What is her profit for this short transaction
Answers
Answer:
Total profit after commission will be "$218".
Explanation:
The given values are:
Share of common stock,
= $53
Total commissions to sell and buy,
= $82
Now,
The profit from buying and selling will be:
= [tex]55-53[/tex]
= [tex]2[/tex] ($)
Total profit will be:
= [tex]2\times 150[/tex]
= [tex]300[/tex] ($)
hence,
The profit after reducing commission will be:
= [tex]300-82[/tex]
= [tex]218[/tex] ($)
OS Environmental provides cost-effective solutions for managing regulatory requirements and environmental needs specific to the airline industry. Assume that on July 1 the company issues a one-year note for the amount of $5.0 million. Interest is payable at maturity. Required: Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions: (Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)
Answers
Answer:
December 31 $300,000
September 30 $125,000
October 31 $ 150,000
January 31 $ 175,000
Explanation:
Calculation to determine the amount of interest expense that should be recorded in a year-end adjusting entry
Calculation for December 31 Interest expense at interest rate of 12 %
Interest expense=$ 5,000,000 × (12/100) × (6 /12)
Interest expense=$5,000,000 × 0.12 × 0.5
Interest expense= $ 300,000
Calculation for September 30 Interest expense at interest rate of 10 %
Interest expense=$5,000 000 × (10/100) × (3/12)
Interest expense=$5,000 000 × 0.10 × 0.25
Interest expense= $ 125,000
Calculation for October 30 Interest expense at interest rate of 9%
Interest expense=$5,000 000 × (9/100) × (4/12)
Interest expense=$5,000 000 × 0.09 × 0.33
Interest expense= $ 150,000
Calculation for January 31 Interest expense at interest rate of 6%
Interest expense= $5,000 000 × (6/100) × (7/12)
Interest expense=$5,000 000 × 0.06 × 0.583
Interest expense= $ 175,000
Therefore the amount of interest expense that should be recorded in a year-end adjusting entry are:
Interest rate Fiscal year-end Interest expense
12% December 31 =$300,000
10% September 30 =$125,000
9% October 31 =$150,000
6% January 31 =$175,000
Micropolois Technology began a new development project in 2017. The project reached technological feasibility on September 1, 2018, and was available for release to customers at the beginning of 2019. Development costs incurred prior to September 1, 2018, were $4,200,000 and costs incurred from June 30 to the product release date were $1,800,000. The 2019 revenues from the sale of the new software were $3,000,000, and the company anticipates additional revenues of $12,000,000. The economic life of the software is estimated at three years. Amortization of the software development costs for the year 2019 would be:
Answers
Answer: $600,000
Explanation:
The Development costs prior to the project reaching technological feasibility are to be expensed according to U.S. GAAP.
Costs incurred after the point of technological feasibility was reached however, will be amortized over the life of the asset.
Life of asset is 3 years and costs incurred would be $1,800,000.
Amortization amount in 2019 would be:
= 1,800,000 / 3
= $600,000
Assalam waliakum
How are you?
Answers
Answer:
oh wait ..... I know this language ... are you from Pakistan???...
Mention any two life domains which will help you when choosing a career?
Answers
Answer:
spiritual, community, personal, career, family
Explanation:
There are five life domains. When choosing a career (yes one of the life domains) it is imperitive to know what passion drives you.
Increased skepticism about the role of the Federal Reserve as well as the spread of misinformation (e.g., that increasing the money supply devalues the dollar and amounts to counterfeiting) have led some politicians to propose that the Federal Reserve be abolished. If this happens, monetary policy would essentially cease to exist as the money supply would no longer be flexible. This was the case about 50 years ago when the money supply was still tied to the amount of gold in reserves.
Given your knowledge of the role of the Federal Reserve (the Fed), identify potential risks to the economy if the Fed is abolished.
Choose each statement that represents a potential risk to the economy if the Fed is abolished.
a. There would be a lack of management of cash in circulation.
b. During a panic, banks could be forced into insolvency.
c. Fluctuations in the business cycle could increase in frequency and severity.
d. There would be an inability to increase or decrease government spending.
Answers
Answer:
a. There would be a lack of management of cash in circulation.
b. During a panic, banks could be forced into insolvency.
c. Fluctuations in the business cycle could increase in frequency and severity.
Explanation:
The Fed manages the money supply and if there is absence so it would create a serious mismanagement of the money supply. In addition to this, fed is the last resort lender and if it is not present than there would be the high chances of failure of banks. Also, the Fed would help in smoothening the business cycles via having monetary policies
Therefore the above 3 statements represent the potentital risk
What is the best way to prevent the transmission of Hepatitis B?
Vaccination
Avoidance of situations where the virus could be present
Improper disposal of sharps
None of the above, because Hepatitis B is not a communicable
disease
Answers
Answer:
A! But in addition to vaccination, there are other simple ways to help stop the spread of hepatitis B:
Wash your hands thoroughly with soap and water after any potential exposure to blood
Use condoms with sexual partners
Avoid direct contact with blood and bodily fluids
Clean up blood spills with a fresh diluted bleach solution (mix 1 part bleach with 9 parts water)
Cover all cuts carefully
Avoid sharing sharp items such as razors, nail clippers, toothbrushes, and earrings or body rings
Discard sanitary napkins and tampons into plastic bags
Avoid illegal street drugs (injecting, inhaling, snorting, or popping pills)
Make sure new, sterile needles are used for ear or body piercing, tattoos, and acupuncture
Explanation:
Crane Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $28 per year. During November 2022, Crane sells 9,000 subscriptions for cash, beginning with the December issue. Crane prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. The company has a December 31 year-end.
Required:
a. Prepare the adjusting entry at December 31, 2022, to record subscription revenue in December 2022.
b. Prepare the adjusting entry at March 31, 2023, to record subscription revenue in the first quarter of 2023.
Answers
Answer:
A. Debit unearned subscription revenue $21,000
Credit Subscription Revenue $21,000
B. Debit Unearned Subscription Revenue $63,000
Credit Earned Subscription Revenue $63,000
Explanation:
A. Preparation of the adjusting entry at December 31, 2022, to record subscription revenue in December 2022.
Debit unearned subscription revenue $21,000
Credit Subscription Revenue $21,000
[($28 per year*9,000)/12]
(Being to record subscription revenue )
B. Preparation of the adjusting entry at March 31, 2023, to record subscription revenue in the first quarter of 2023.
Debit Unearned Subscription Revenue $63,000
Credit Earned Subscription Revenue $63,000
[($28 per year*9,000)/12*3]
(Being to record subscription revenue in the first quarter)
A new machine costing $1,800,000 cash and estimated to have a $60,000 salvage value was purchased on January 1. The machine is expected to produce 600,000 units of product during its 8-year useful life. Calculate the depreciation expense in the first year under the following independent situations: The company uses the units-of-production method and the machine produces 70,000 units of product during its first year. The company uses the double-declining-balance method. The company uses the straight-line method.
Answers
Answer:
Results are below.
Explanation:
Giving the following formula:
Purchase price= $1,800,000
Salvage value= $60,000
Useful life= 8 years or 600,000 units
To calculate the annual depreciation using the units-of-production method, we need to use the following formula:
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced
Annual depreciation= [(1,800,000 - 60,000) / 600,000]*70,000
Annual depreciation= $203,000
To calculate the annual depreciation using the double-declining balance, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= 2*[(1,800,000 - 60,000) / 8]
Annual depreciation= $435,000
Finally, the annual depreciation using the straight-line method:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (1,800,000 - 60,000) / 8
Annual depreciation= $217,500
When a goal is not met, a manager should assume that Multiple Choice the control process was flawed. employees need to improve their performance. the set goal was too ambitious or employees need to improve their performance. expected performance was not effectively communicated to employees. the set goal was too ambitious and needs to be scaled back.
Answers
Answer:
the set goal was too ambitious or employees need to improve their performance.
Explanation:
A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.
Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.
Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan.
Hence, when a goal is not met, a manager should assume that the set goal was too ambitious or employees need to improve their performance. Thus, the set goals for an organization shouldn't be too ambitious while encouraging employees to be up and doing in performing their duties.
Schedule of Cash Collections of Accounts Receivable Pet Place Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows: May $290,000 June 410,000 July 520,000 All sales are on account. Of sales on account, 52% are expected to be collected in the month of the sale, 44% in the month following the sale, and the remainder in the second month following the sale. Prepare a schedule indicating cash collections from sales for May, June, and July.
Answers
Answer:
Results are below.
Explanation:
Giving the following formula:
Sales:
May $290,000
June 410,000
July 520,000
52% are expected to be collected in the month of the sale
44% in the month following the sale
4% in the second month following the sale
We need to calculate the cash collection for each month:
Cash collection May:
Cash collection from sales on account May= (290,000*0.52)= 150,800
Total cash collection May= $150,800
Cash collection June:
Cash collection from sales on account May= (290,000*0.44)= 127,600
Cash collection from sales on account June= (410,000*0.52)= 213,200
Total cash collection June= $340,800
Cash collection July:
Cash collection from sales on account May= (290,000*0.4)= 11,600
Cash collection from sales on account June= (410,000*0.44)= 180,400
Cash collection from sales on account July= (520,000*0.52)= 270,400
Total cash collection July= $462,400
Thomlin Company forecasts that total overhead for the current year will be $13,502,000 with 157,000 total machine hours. Year to date, the actual overhead is $8,179,100, and the actual machine hours are 91,900 hours. If Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is
Answers
Answer:
$275,700 underapplied
Explanation:
The computation of the overhead is shown below:
But before that following calculation need to be done
Applied overhead is
= Actual machine hours × predetermined overhead rate
= 91,900 hours × ($13,502,000 ÷ 157,000)
= $7,903,400
And, the actual overhead is $8,179,100
So, the under applied overhead is
= $8,179,100 - $7,903,400
= $275,700
Snyder Painting is transitioning to an ABC system. So far, the company has traced its costs back to several different activities, including customer consultation, paint storage, onsite paint application, and site preparation and cleanup. If Snyder wants to reduce its non-value-added activities to the greatest extent possible, it should concentrate its efforts on reducing the amount of time and money it spends on
Answers
Answer:
Snyder Painting
If Snyder wants to reduce its non-value-added activities to the greatest extent possible, it should concentrate its efforts on reducing the amount of time and money it spends on
B. paint storage.
Explanation:
a) Identified Activities of Snyder Painting:
A. customer consultation.
B. paint storage.
C. site preparation and cleanup.
D. onsite paint application.
b) Non-value added activities are activities that are currently necessary and consume resources but do not add value to the company's product or service. For example, equipment set-up, parts inspection, recording job time, job scheduling, product storage, and customer billing. These activities should be reduced to the barest minimum in order to maximize value.
In January 2017, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc., for $700,000. This investment gave Domingo the ability to exercise significant influence over Martes, whose balance sheet on that date showed total assets of $3,900,000 with liabilities of $900,000. Any excess of cost over book value of the investment was attributed to a patent having a remaining useful life of 10 years.
In 2017, Martes reported net income of $170,000. In 2018, Martes reported net income of $210,000. Dividends of $70,000 were declared in each of these two years. What is the equity method balance of Domingo’s Investment in Martes, Inc., at December 31, 2018?
a. $728,000
b. $748,000
c. $756,000
d. $776,000
Answers
Answer: $728000
Explanation:
The equity method balance of Doingo’s Investment in Martes, Inc. at December 31, 2018 will be:
Acquisition price = $700,000
Add: Income accruals in 2017 = $34000
Add: Income accruals in 2018 = $42000
Less: Ammortization in 2017 = $10000
Less: Ammortization in 2018 = $10000
Less: Dividends in 2017 = $14000
Less: Dividends in 2018 = $14000
Domingo Investment in Martes = $728000
Note:
Income accrual (2017) = $170000 × 20% = $34000
Income accrual (2018) = $210000 × 20% = $42000
Dividends = 20% × $70000 = $14000