Answer:
Total fixed costs= $40,000
Explanation:
First, we need to calculate the total variable cost and total cost:
Total cost= 500*300= $150,000
Total variable cost= 500*220= $110,000
Now, we can calculate the total fixed costs:
Total fixed costs= total cost - total variable cost
Total fixed costs= 150,000 - 110,000
Total fixed costs= $40,000
Which action is the best example of appropriate e-mail use at work?
providing urgent updates
sending meeting reports
sharing personal finances
giving criticism to someone
Answer:
B
Explanation:
Took the test
Answer:
The answer is B.) Sending meeting reports
Explanation:
E-mail is a great tool to use when you want to:
* document an event or an agreement. For example, “Thanks for agreeing to meet with my intern tomorrow morning.”
* send data and information in the form of files.
* provide updates that are not time critical. For example, “I wanted to let you know that the graphic design team expects to finish their changes by Monday.”
Now that you have had some time to think about appropriate ways to use e-mail, next you will learn about some inappropriate uses for e-mail.
I hope this helps. Have a happy day.
The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system.
Jan. 2 Purchased $18,200 of merchandise on account, FOB shipping point, terms 2/15, n/30.
5 Paid freight of $190 on the January 2 purchase.
6 Returned $2,750 of the merchandise purchased on January 2.
13 Sold merchandise on account, $37,300, FOB destination, 1/10, n/30. The cost of goods sold was $22,400.
15 Paid freight of $215 for the merchandise sold on January 13.
17 Paid for the purchase of January 2 less the return and discount.
23 Received payment on account for the sale of January 13 less the discount.
Journalize the entries to record the transactions of Air Systems Company.
Answer:
Date Account Titles and Explanation Debit Credit
2-Jan Purchase $18,200
Accounts payable $18,200
5-Jan Freight In $190
Cash $190
6-Jan Accounts payable $2,750
Purchased return and allowance $2,750
13-Jan Account receivable $37,300
Sales $37,300
Cost of goods sold $22,400
Merchandise Inventory $22,400
15-Jan Delivery expenses $215
Cash $215
17-Jan Account payable $15,450
Purchase discount $309
Cash $15,141
23-Jan Cash $36,927
Sales discount $373
Account receivables $37,300
The amount of cash received = $37,300 - {$37,300*1%} = 36,927
The amount of sale discount = $37,300 - $ 36,927 = $373
A parent transfers inventory with a cost of $25,000 to its subsidiary at a transfer price of $40,000. The subsidiary resold 50% of this transferred inventory to outsiders before year-end. For the current year consolidated financial statement, how much gross profit should be deferred by Consolidation Entry G
Answer: $7,500
Explanation:
The profit made from the transfer is;
= 40,000 - 25,000
= $15,000
The subsidiary however only managed to resell 50% of this. The Consolidated entry therefore will show that 50% of the inventory remains so profit will have to be deferred till it is sold. The amount deferred is;
= 15,000 * 50%
= $7,500
Vaughn Manufacturing has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales for Vaughn are 60000 Standard and 40000 Supreme. Fixed expenses are $1500000. How many Standards would Vaughn sell at the break-even point?
Answer:
30,000 units
Explanation:
The computation of the break even point is shown below:
But before that we need to do the following calculations
Standard product sales mix % is
= 60,000 ÷ (60,000 + 40,000)
= 60,000 ÷ 100,000
= 60%
Total Break even in units is
= $1,500,000 ÷ $30
= 50,000
Now
Break even units for Standard product is
= 50000 x 60%
= 30,000 units
The readings suggest there are certain strategies for pricing new products, which is decidedly more difficult than adjusting prices to existing products. The new product pricing approaches are:SkimmingPenetrationEveryday low pricesThe pricing approaches discussed for existing products are:Cost plusMarkupMarkdownOdd-even pricingPrestige pricingPrice liningDemand backward pricingLeader pricingSealed bid pricingGoing-rate pricingPrice bundlingCaptive pricingProduct mix pricingTwo-part pricingPromotional pricingThere is no shortage of pricing approaches, and as customers, we are exposed to all of them at some time or another in our purchasing processes.Choose one of the pricing approaches and discuss the product, the pricing approach, and why you think it is the most appropriate approach for that particular product given your consumer characteristics. Be sure you understand the definition of your approach before tackling this topic.Many of you will be tempted to use promotional pricing since it is the easiest to demonstrate. So promotional pricing is not "for sale" (pun intended). Pick one of the other approaches for this topic.
Explanation:
Penetration Pricing:
It is the marketing approach that consists of a strategy to insert a new product in the market offering lower prices.
This strategy would help a new company, for example, to enter the market and already achieve good demand for its products and services, in addition to this strategy being a barrier of entry for new competitors.
Penetration pricing is the most appropriate marketing strategy for companies that need to reach a market place and reach a large number of people, which is achieved when offering a product with quality and benefits that can create consumer needs for customers, which makes it possible for the company to fulfill its objective and then be able to establish itself in the market and then increase prices so that the demand for the products is maintained.
This strategy is generally used by retailers and organizations that offer products offered in bulk, such as food, cosmetics, automobiles, etc.
Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be appropriate are presently on the market. The company has determined the following (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)Machine A could be purchased for $48,000. It will last 10 years with annual maintenance costs of $1,000 per year. After 10 years the machine can be sold for $5,000.Machine B could be purchased for $40,000. It also will last 10 years and will require maintenance costs of $4,000 in year three, $5,000 in year six, and $6,000 in year eight. After 10 years, the machine will have no salvage value.Required:Assume an interest rate of 8% properly reflects the time value of money in this situation and that maintenance costs are paid at the end of each year. Ignore income tax considerations. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)Calculate the present value of Machine A & Machine B. Which machine Esquire should purchase?
Answer: Machine B because it has the lower Present Value
Explanation:
Machine A= Present Value of income - Present Value of Costs
Present value of Income;
Sold for $5,000 after 10 years.
= 5,000/ (1 + 8%)^10
= $2,315.97
Present Value of Costs;
Purchased for $48,000.
Maintenance of $1,000 per year for years.
Present value of maintenance= 1,000 * Present value factor of annuity, 10 years, 8%
= 1,000 * 6.7101
= $6,710.10
Machine A Present Value
= 2,315.97 - 6,710.10 - 48,000
= -$52,394
Machine BNo salvage value.
Present Value of costs
Purchased for $40,000.
Present value of maintenance = (4,000 / (1 + 8%)^3) + (5,000 / ( 1 + 8)^6) + (6,000 / ( 1 + 8%)^8)
= -$9,567.79
Present Value = -40,000 - 9,567.79
= -$49,568
Intangible Assets and Goodwill: Amortization and Impairment In early 2011, Bowen Company acquired a new business unit in a merger. Allocation of the acquisition cost resulted in fair values assigned as follows:
Intangible Asset Fair Value Estimated Value
Customer lists $400,000 5 years
Developed technology 640,000 10 years
Internet domain name 1,040,000 Indefinite
Goodwill 4,960,000 Indefinite
The goodwill is assigned entirely to the acquired business unit. Impairment reviews at the end of 2011 and 2012 did not identify any impairment losses. After the business suffered a downturn during 2013, the year-end impairment review yielded the following information: Customer lists are estimated to have undiscounted future cash flows of $200,000 and discounted future cash flows of $144,000.
The internet domain name is estimated to have undiscounted future cash flows of $800,000 and discounted future cash flows of $600,000. The acquired business unit has a fair value of $13,600,000, a carrying amount of $14,800,000, and the fair value of its identifiable net assets is $11,360,000.
Required:
Determine Bowen's amortization expense and impairment write-offs for 2013.
what's your favorite holiday and why?
Answer:
Summer holiday
no coldness
beach time
camping
travel
Answer: Christmas
Explanation:
I think this holiday in particular brings everyone together. Huge festivities are all around and about as well.
On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of $102 million. The bonds mature on December 31, 2051. Interest is payable annually on each December 31, beginning in 2022. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Determine the price of the bonds on December 31, 2021, assuming that the market rate of interest for similar bonds was 7%. (Round your final answers to nearest whole dollar amount.)
Answer: $89,342,526
Explanation:
Price of the bond will be the present value of the face value plus the present value of the interest payments.
Interest Payments
= 6% * 102,000,000
= $6,120,000
2051 - 2021 = 30 years
Similar interest = 7%
Present value = 6,120,000 * Present value factor of annuity for 30 years, 7%
= 6,120,000 * 12.4090
= $75,943,080
Present value of bond
= 102,000,000/(1 + 7%)^30
= $13,399,445.95
Price of bond = 13,399,445.95 + 75,943,080
=$89,342,526
Visibility across supply chain functions that can provide
(A) a consolidated view of demand
(B) inventories
(C) Either (a) or (b)
(D) Both (a) and (b)
o for sunnly chain planning are:
Pearl Corporation factors $270,300 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2020. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments.
Required:
a. Assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2020, for Pearl to record the sale of receivables, assuming the recourse obligation has a fair value of $4,280.
b. What conditions must be met for a transfer of receivables with recourse to be accounted for as a sale?
Answer:
A. Aug 15 2020
Dr Cash 254,082
Dr Due from factors 10,812
Dr Loss on Sale of receivables 9,686
Cr Recourse Liability $ 4,280
Cr Accounts receivables $ 270,300
B. 1. The asset that was transferred is far way from the person who makes the transfer or initiated the transfer which is the transferor as well as it's creditors.
2. The transferees of the asset have as well receive the right to either pledge or exchange the receivables
3. The transferor who makes the transfer of the asset has not agreed or come to agreement to replace receivables
Explanation:
A. Preparation of August 15, 2020 journal entry
Aug 15 2020
Dr Cash 254,082
($270,300 * 94%)
Dr Due from factors 10,812
( $270,300* 4%)
Dr Loss on Sale of receivables 9,686
[($ $270,300*2%) + $4, 280]
Cr Recourse Liability $ 4,280
Cr Accounts receivables $ 270,300
B. The conditions that must be met include the following::
1. The asset that was transferred is far way from the person who makes the transfer or initiated the transfer which is the transferor as well as it's creditors.
2. The transferees of the asset have as well received the right to either pledge or exchange the receivables
3. The transferor who makes the transfer of the asset has not agreed or come to agreement to replace receivables
X-Mart uses the perpetual inventory system to account for its merchandise. On May 1, it purchased $400 of merchandise on account with terms of 2/15, n/40. On May 3, X-Mart returned $50 of merchandise due to defect. Assuming that the purchase was paid for within the discount period, demonstrate the required journal entry for X-Mart to record the payment by selecting all of the correct actions below.
A. Credit Purchase Discounts $7.
B. Credit Cash $392.
C. Credit Merchandise Inventory $7.
D. Debit Accounts Payable $350.
E. Credit Cash $343.
F. Debit Merchandise Inventory $7.
G. Credit Accounts Payable $350.
Answer:
C. Credit Merchandise Inventory $7
D. Debit Accounts Payable $350
E. Credit Cash $343
Explanation:
Based on the information given we were told the company made purchased of the amount of $400 of merchandise which include a terms of 2/15, n/40 and On May 3 the company returned the amount of $50 of merchandise due to defect which means that if the purchase was been paid for within the discount period the correct required journal entry for X-Mart to record the payment will be :
Credit Merchandise Inventory $7
[(2%*400)-(2%-50)]
=$8-$1
=$7
Debit Accounts Payable $350
($400-$50)
=$350
Credit Cash $343
($400-$50)-[(2%*400)-(2%-50)]
=$350-($8-$1)
=$350-$7
=$343
Mazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,000 units, is as follows:
Direct materials $6
Direct labor 4
Overhead (2/3 of which is variable) 9
Mazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazeppa has the capacity to fill the order. However, it will incur an additional shipping cost of $2 for each relay it sells to the distributor.
Required:
a. Assume that Mazeppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to charge the distributor which will generate an increase in operating income of $2 per unit.
b. Assume that Mazeppa is currently operating at full capacity. To fill the special order, regular customers will have to be turned away. Now what unit price should it charge the distributor if it wishes to increase total operating income by $60,000 more than it would be without accepting the special order?
Answer:
a. $20.00
b. $28,75
Explanation:
Find the total incremental costs to satisfy the special order and add $2.00 profit (because we are aiming for a profit not to just break-even).
Calculation of Total Incremental Unit Costs
Direct materials $6 .00
Direct labor $4.00
Variable Overheads (2/3 × $9) $6.00
Shipping Cost $2.00
Total Incremental Unit Cost $18.00
Add Profit Element $2.00
Unit Selling Price for the Special Order $20.00
In this case no changes will occur on fixed overheads, hence it is irrelevant.
Calculation of Desired Net Operating Income
Sales ($28 × 160,000 units) $4,480,000
Less Product Costs :
Direct materials ($6 .00 × 160,000 units) ($960,000)
Direct labor ($4.00 × 160,000 units) ($640,000)
Variable Overheads ($6.00 × 160,000 units) ($960,000)
Fixed Overheads ($3.00 × 160,000 units) ($480,000)
Current Operating Income $1,440,000
Add Desired Increase in Operating Income $60,000
Desired Operating Income $1,500,000
Unit Profit = $1,500,000 ÷ 160,000 units
= $9.375
Unit Profit = Unit Selling Price - Total Unit Costs - Unit Incremental Profit
therefore,
Unit Selling Price = Unit Profit + Total Unit Costs + Unit Incremental Profit
= $9.375 + $19.00 + $0.375
= $28,75
Alto Corporation sold two capital assets this year. The first sale resulted in a $13,000 capital gain, and the second sale resulted in a $41,000 capital loss. Alto was incorporated five years ago. Four years ago, Alto recognized $5,000 of net capital gain. Three years ago, Alto recognized $10,000 of net capital gain. Two years ago and last year, Alto recognized no net capital gains.
Required:
Using a 21 percent tax rate, compute Alto's tax refund from the carryback of its current year capital loss. Compute Alto's capital loss carryforward into next year.
Answer:
A. Tax refund $2,100
B. $18,000
Explanation:
A. Calculation for Alto's tax refund from the carryback of its current year capital loss
Based on the information given we were told that Alto has the amount of $28,000 ( 13,000-41,000) as a net capital loss that is non deductible this year which means Alto can
carry the loss back 3 years in order for Alto to deduct against net capital gain in those 3years.
Secondly Alto can as well remove the amount of $10,000 capital loss that was carryback against capital gain 3 years ago in order to have the amount of $2,100 as tax refund which is calculated as ($10,000 × 21%)
B. Computation of Alto's capital loss carryforward into next year.
Alto’s capital loss carryforward = ($28,000 − $10,000).
Alto’s capital loss carryforward =$18,000
Therefore Alto’s capital loss carryforward will be $18,000
Analysis of Accounts Receivable and Allowance for Doubtful Accounts Steelcase, Inc. reported the following amounts in its 2014 and 2013 10-K reports (years ended February 28, 2014 and February 22, 2013). $ millions)
From the income statement
Net sales
From the balance sheet
Accounts receivable, net
Customer deposits
From the disclosure on allowance for doubtful accounts:
Balance at beginning of period Additions (reductions) charged to income
Adjustments or deductions
Balance at end of period
2014 2013
$2,989 $2,869
306.8 287.3
16.0 13.5
4.5 19.6
2.8 3.1
(4.3) (8.2)
13.0 14.5
b. Calculate Steelcase's gross receivables for the years given, and then determine the allowance for doubtful accounts as a percentage of the gross receivables. 2014 2013 Gross accounts receivable (in millions) Allowance as a % of gross receivables Round to one decimal place.)
c. Calculate Steelcase's accounts receivable turnover for 2014. (Use Accounts receivable, net for the calculation.) Round answer to one decimal place times
d. How much cash did Steelcase receive from customers in 2014? 3,005 million
Answer:
b. Gross Receivable = Net receivable +Allowance
2014 = $306.8 + $13 = $319.80
2013 = $287.3 + $14.5 = $301.8
Allowance as a % of Gross receivable = Allowance / Gross receivable
2014 = $13/319.80 = 0.041 = 4.1%
2013 = $14.5/301.8 = 0.015 = 1.5%
c. Average Net Accounts receivable = (Accounts receivable, net 2014 + Accounts receivable, net 2013) / 2 = ($306.8 + $287.3] / 2 = $297.05
Receivable Turnover = Net credit sales / Average Net Accounts receivable
Receivable Turnover = $2,989 / $297.05
Receivable Turnover = 10.06 Times
d) Cash received in 2014 = Beginning Gross receivables + Net sales - Ending Gross receivables-Adjustment in allowance (Write-off 2014)
Cash received in 2014 = $301.8 + $2,989 - $319.8 - $4.3
Cash received in 2014 = $2,966.7
Increase in customer deposits = $16 - 13.5 = $2.5
Total Cash received from customers in 2014 = Cash received in 2014 + Increase in customer deposits
Total Cash received from customers in 2014 = $2,966.7 + $2.5
Total Cash received from customers in 2014 = $2969.20
The following information is available for Trinkle Company for the month of June:
1. The unadjusted balance per the bank statement on June 30 was $56,518.
2. Deposits in transit on June 30 were $2,340. A debit memo was included with the bank statement for a service charge of $26.
3. A $3,331 check written in June had not been paid by the bank.
4. The bank statement included a $1,050 credit memo for the collection of a note. The principal of the note was $1,015, and the interest collected amounted to $35.
Required:
Determine the true cash balance as of June 30.
Answer:
$55,527
Explanation:
Calculation to Determine true cash balance as of June 30
Unadjusted balance per the bank statement $56,518
Add: Deposits in transit on June 30 $2,340
Less: Outstanding check ($3,331)
True cash balance as of June 30 $55,527
Therefore true cash balance as of June 30 will be $55,527
North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31.
Account Titles Debit Credit
Cash $ 11,200
Accounts Receivable 5,200
Prepaid Rent 2,240
Equipment 20,200
Accumulated Depreciation $ 1,180
Accounts Payable 1,180
Income Tax Payable 0
Common Stock 24,000
Retained Earnings 1,300
Sales Revenue 47,080
Salaries and Wages Expense 24,200
Utilities Expense 11,700
Rent Expense 0
Depreciation Expense 0
Income Tax Expense 0
Totals $ 74,740 $ 74,740
Other data not yet recorded at December 31:
1. Rent expired during the year, $1,120.
2. Depreciation expense for the year, $1,180.
3. Utilities used and unpaid, $8,200.
4. Income tax expense, $310.
Required:
Indicate the accounting equation effects of each required adjustment. (Enter all amounts as positive values.)
Answer and Explanation:
The accounting equation effects of each required adjustment is shown below:-
Transactions Assets
a. Prepaid rent - $1,280
b. Accumulated
depreciation - $1,180
c. NE
d. NE
Transactions = Liabilities + Stockholders' Equity
a. NE Rent expenses -$1,280
b. NE Depreciation expenses -$1,180
c. Accounts payable + $8,200 Utilities expenses -$8,200
d. Income tax payable + $310 Income tax expense -$310
Suppose someone offered to sell you a note calling for payment of $1,225 15 months from today (456 days). They offer to sell it to you for $950. You have $950 in a bank time deposit which pays a 12% nominal rate with a daily (365 days a year) compounding, and you plan to leave the money in the bank unless you buy the note? Recommend action based on checking the decision in three ways:
(1) by comparing your future value if you buy the note versus leaving your money in the bank,
(2) by comparing the PV of the note with your current bank account, and
(3) by comparing the EAR on the note versus that of the bank account.
Answer:
(1) by comparing your future value if you buy the note versus leaving your money in the bank,
the future value of the note = $1,225
the future value of the time deposit = $950 x (1 + 0.12/365)⁴⁵⁶ = $1,103.62
the note has the highest future value
(2) by comparing the PV of the note with your current bank account, and
PV of note = $1,225 / (1 + 0.12/365)⁴⁵⁶ = $1,054.48 (I used the same interest rate than the time deposit)
present value of your time deposit = $950
the note has the highest present value
(3) by comparing the EAR on the note versus that of the bank account.
EAR of the note using the future value formula:
1,225 = 950 x (1 + r)¹°²⁵
(1 + r)¹°²⁵ = 1,225 / 950 = 1.2895
¹°²⁵√(1 + r)¹°²⁵ = ¹°²⁵√1.2895
1 + r = 1.2255
r = 0.2255 = 22.55%
EAR time deposit = (1 + 0.12/365)³⁶⁵ - 1 = 12.75%
the note's effective annual rate is higher
Use the information in the ledger accounts.
Cash Nov. 1 144,000
Nov. 8 40,320
Nov. 25 14,400
Nov. 30 1,680
Land Nov. 8 84,000
Building Nov. 8 70,320
Office Equipment Nov. 15 3,840
Nov. 21 576
Vehicles Nov. 30 11,280
Notes Payable Nov. 25 14,400
Nov. 8 114,000
Nov. 30 9,600
Accounts Payable Nov. 21 576
Nov. 15 3,840
Capital Stock
Nov. 1 144,000
Prepare a trial balance for Avenson Insurance Company dated November 30.
Answer:
Avenson Insurance Company
Trial Balance as at 30 November
Debit Credit
$ $
Cash 1,680
Land 84,000
Building 70,320
Office Equipment 21 576
Vehicles 11,280
Notes Payable 9,600
Accounts Payable 3,840
Capital Stock 144,000
Total $188,856 $157,440
Explanation:
A trial balance is prepared as at the end of the financial year. It is used to check the arithmetical accuracy of double entry.
Consider only the balances at the date of financial year end - November 30.
Find an approximate annual dollar-weighted yield received by Abiyote for the three-year period from January 1, 1994 until January 1, 1997 using
Answer:
The information about Abiyote's investment is missing, so I looked for similar questions:
Abiyote's time weighted rate of return = [(1 + HP₁ ) x (1 + HP₂) x (1 + HP₃)]¹/³ - 1
HP₁ = ($28,212 - $24,500) / $24,500 = 0.1515
HP₂ = ($15,892 - $18,212) / $18,212 = -0.1274
HP₃ = ($30,309 - $23,892) / $23,892 = 0.2686
TWRR = [(1.1515 x 0.8726 x 1.2686)¹/³ - 1 = 0.08426 = 8.43%
You calculate TWRR in the same way as you calculate geometric mean.
We discussed the debt situation in the US and referred to the 'US mysteries' . Write an essay explaining these mysteries and why, the US is in a unique position relative to the rest of world. Make sure your answer includes a discussion of exorbitant privilege and 'dark matter.' Complete your essay with a discussion of why some are worried about the sustainability of this unique position and what the consequences would be on the US economy if we lost this 'unique position.'
Answer:
The Debit situation in the US is a very unique one unlike other debit situations around the world, and this is because the US is unique it its ways of handling Debit situations and also not forgetting the fact that the US enjoys certain privileges' in its Financial dealings with others.
These privileges is evident in the Ability of US corporations/companies to have a debit of over $1.9 trillion and still able to be in business, despite this high indebtedness the US economy have witnessed a growth stability at 3% and inflation rate below2% and its unemployment rate is close to 4% making US economy the Number 1 in the world. But the consequences this might have in future for The US is that most US companies would go Bankrupt when the Government is unable to churn out good financial policies to sustain this high level of indebtedness
Explanation:
The Debit situation in the US is a very unique one unlike other debit situations around the world, and this is because the US is unique it its ways of handling Debit situations and also not forgetting the fact that the US enjoys certain privileges' in its Financial dealings with others.
These privileges is evident in the Ability of US corporations/companies to have a debit of over $1.9 trillion and still able to be in business, despite this high indebtedness the US economy have witnessed a growth stability at 3% and inflation rate below2% and its unemployment rate is close to 4% making US economy the Number 1 in the world. But the consequences this might have in future for The US is that most US companies would go Bankrupt when the Government is unable to churn out good financial policies to sustain this high level of indebtedness
The bookkeeper for Ivanhoe Company asks you to prepare the following accrual adjusting entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
a. Interest on notes payable of $270 is accrued.
b. Services performed but unbilled totals $1,930.
c. Salaries of $700 earned by employees have not been recorded.
Answer:
Date Account titles and explanation Debit Credit
(a) Dec. 31 Interest Expense $270
Interest Payable $270
(b) Dec. 31 Accounts Receivable $1,930
Service Revenue $1,930
(c) Dec. 31 Salaries Expense $700
Salaries Payable $700
Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system.
Date Transactions Units Unit Cost Total Cost
March 1 Beginning inventory 20 $230 $4,600
March 5 Sale ($360 each) 15
March 9 Purchase 10 250 2,500
March 17 Sale ($410 each) 8
March 22 Purchase 10 260 2,600
March 27 Sale ($435 each) 12
March 30 Purchase 8 280 2,240
For the specific identification method, the March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase.
Required:
a. Calculate ending inventory and cost of goods sold at March 31, 2015, using the specific identification method. The March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes
from beginning inventory and eight bikes from the March 22 purchase.
b. Using FIFO, calculate ending inventory and cost of goods sold at March 31, 2015.
c. Using LIFO, calculate ending inventory and cost of goods sold at March 31, 2015.
d. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31, 2015.(Round your intermediate and final answers to 2 decimal places.)
e. Calculate sales revenue and gross profit under each of the four methods.
Answer:
Greg's Bicycle Shop
Ending Inventory:
a. Specific Identification:
Beginning inventory 1 * $230 = $230
March 9 purchase 2 * $250 = 500
March 22 purchase 2 * $260 = 520
March 30 Purchase 8 * $280 =2,240
Total value of inventory 13 units = $3,490
Cost of goods sold = Cost of goods available for sale Minus Ending Inventory
= $11,940 - $3,490
= $8,450
b. FIFO:
March 22 Purchase 5 260 1,300
March 30 Purchase 8 280 2,240
Ending Inventory 13 $3,540
Cost of goods sold = Goods available for sale Minus Ending Inventory
= $11,940 - $3,540
= $8,400
c. LIFO:
Ending Inventory:
March 1 Inventory 13 $230 $2,990
Cost of goods sold = Goods available for sale Minus Ending Inventory
= $11,940 - $2,990
= $8,950
d) Weighted -Average Cost:
Ending Inventory = $248.75 * 13 = $3,233.75
Cost of Goods Sold = $248.75 * 35 = $8,706.25
Specific FIFO LIFO Weighted
Identification Average
Sales $13,900 $13,900 $13,900 $13,900.00
Cost of goods sold 8,450 8,400 8,950 $8,706.25
Gross profit $5,450 $5,500 $4,950 $5,193.75
Explanation:
Dat and Calculations:
Shop uses periodic inventory system
Date Transactions Units Unit Cost Total Cost Total
March 1 Beginning inventory 20 $230 $4,600 Sales
March 5 Sale ($360 each) 15 $360 $5,400
March 9 Purchase 10 250 2,500
March 17 Sale ($410 each) 8 $410 $3,280
March 22 Purchase 10 260 2,600
March 27 Sale ($435 each) 12 $435 $5,220
March 30 Purchase 8 280 2,240
Total Goods available for sale 48 35 $11,940 $13,900
Ending Inventory = 13 (48 - 35)
Weighted average cost = Cost of goods available for sale/Units of Goods available for sale
= $11,940/48 = $248.75
Specific Identification:
March 5 sale 15 consists of bikes from 15 beginning inventory Bal 5 - 4 = 1
March 17 sale 8 consists of bikes from the March 9 purchase Bal = 2
March 27 sale 12 consists of four bikes from beginning inventory and eight bikes from the March 22 purchase Bal = 2
Ending Inventory:
Specific Identification:
Beginning inventory 1 * $230 = $230
March 9 purchase 2 * $250 = 500
March 22 purchase 2 * $260 = 520
March 30 Purchase 8 * $280 =2,240
Total value of inventory 13 units = $3,490
FIFO:
March 22 Purchase 5 260 1,300
March 30 Purchase 8 280 2,240
Ending Inventory 13 $3,540
LIFO:
March 1 Beginning inventory 13 $230 $2,990
Weighted-Average Costs:
Ending Inventory = $248.75 * 13 = $3,233.75
Cost of Goods Sold = $248.75 * 35 = $8,706.25
Geoffrey brought $50,000 into his business at the start of the accounting period. During the year, he needed $5,000 for a personal emergency. He borrowed this money from the business’s accounts. Under which accounting heads will the business record these transactions?
Geoffrey’s business will credit $50,000 to the
account and debit $5,000 from the
account.
Answer:
50,000 would be Capital and 5,000 would be drawings.
Explanation:
List and describe the three types of income. Include information regarding how each one is taxed.
Answer:
Understanding The Three Types Of Income
Earned Income. The first type of income is the most common: earned income. ... Capital Gains Income. The next type of income that you can earn is called capital gains income. ... Passive Income. The final type of income that you can earn is called passive income.
Answer:
earned income, capital income, dont know the last one sorry
Explanation:
When a woman makes a dress and takes it to town to trade it for eggs and milk, it is an example of
Answer:
Barter trade
Explanation:
Barter trade is the exchange of goods and services between parties without using a medium of exchange. In barter trade, the transacting parties exchange goods and services for other goods and services. Barter trade was in practice before money become widely accepted as a medium of exchange.
One challenge with barter trade is the double coincidence of wants. A person with good A and needs product B has to find another person with products B and need good A. In this case, the woman has a dress and need eggs and milk. She has to find someone with eggs and milk is willing to trade them for a dress.
Answer:
subsistence economy
Explanation:
Tyrone and Akira, who are married, incurred and paid the following amounts of interest during 2019:
Home acquisition debt interest $ 15,000
Credit card interest 5,000
Home equity loan interest (used for home improvement) 6,500
Investment interest expense 10,000
Required: With 2019 net investment income of $2,000, calculate the amount of their allowable deduction for investment interest expense and their total deduction for allowable interest. Home acquisition principal, and the home equity loan principal combined are less than $750,000.
Answer:
The Investment Interest (limited to Investment income) = $2,000
Allowance deduction for Interest
Investment interest $2,000
Home acquisition debt interest $15,000
Home equity loan interest $6,500
$23,500 - Before phase out limits
Bradford Services Inc. (BSI) is considering a project that has a cost of $10 million and an expected life of 3 years. There is a 30 percent probability of good conditions, in which case the project will provide a cash flow of $9 million at the end of each year for 3 years. There is a 40 percent probability of medium conditions, in which case the annual cash flows will be $4 million, and there is a 30 percent probability of bad conditions and a cash flow of -$1 million per year. BSI uses a 12 percent cost of capital to evaluate projects like this.
Required:
a. Find the project's expected cash flows and NPV.
b. Now suppose the BSI can abandon the project at the end of the first year by selling it for $6 million. BSI will still receive the Year 1 cash flows, but will receive no cash flows in subsequent years. Assume the salvage value is risky and should be discounted at the WACC.
Answer:
a) expected cash flow per year (same for all 3 years) = (30% x $9 million) + (40% x $4 million) + (30% x -$1 million) = $4 million
initial outlay = $10 million
discount rate = 12%
NPV = -$10 + $4/1.12 + $4/1.12² + $4/1.12³ = -$0.39 million
b) assuming that the project is abandoned at the end of year 1:
NPV = -$10 + $4/1.12 + $6/1.12 = -$1.07 million
Actually things get worse if you decide to sell the project after year 1. The present value of the expected cash flows is higher than the present value of the salvage value.
Blossom Corp is issuing a 10-year bond with a coupon rate of 11 percent. The interest rate for similar bonds is currently 7 percent. Assuming annual payments, what is the value of the bond
Answer:
$1,280.94
Explanation:
FV= $1000
PMT = 11% * $1000 = $110
N = 10 Years
I/Y = 7%
Using Excel, Present value of bond ($1,000, $110, 10, 7%) = $1280.9433
Hence, the present value of bond = $1,280.94
Statements of financial position on December 31, Year 1, and December 31, Year 2, are presented below.
Dec 31, Dec. 31,
Year 1 Year 2
Assets
Cash 50,000 $ 60,000
Accounts receivable 95,000 89,000
Allowance for uncollectible accounts (4.000) (3.000)
Inventory 120,000 140,000
Property, plant, and equipment 295,000 340,000
Accumulated depreciation (102,000) (119.000)
Total Assets $ 454.000 $507.000
Liabilities and equity:
Trade accounts payable $ 62,000 $ 49,000
Interest payable 8,000 11.000
Bonds payable 200,000 200,000
Unamortized bond discount (15,000) (10,000)
Equity 199,000 257,000
Total liabilities and equity $454,000 $507,000
Additional information for Year 2:
1. Sales revenue was $338,000
2. $3.000 of accounts receivable was written off
Cash collections from customers in Year 2 were 200.00 332
A. $344,000
B. $341,000
C. $335.000
D. $338,000
Answer:
Cash collections from customers in Year 2 were:
B. $341,000
Explanation:
a) Data and Calculations:
Statements of Financial Position on December 31, Year 1 and Year 2:
Year 1 Year 2
Assets
Cash 50,000 $ 60,000
Accounts receivable 95,000 89,000
Allowance for uncollectible accounts (4.000) (3.000)
Inventory 120,000 140,000
Property, plant, and equipment 295,000 340,000
Accumulated depreciation (102,000) (119.000)
Total Assets $ 454.000 $507.000
Liabilities and equity:
Trade accounts payable $ 62,000 $ 49,000
Interest payable 8,000 11.000
Bonds payable 200,000 200,000
Unamortized bond discount (15,000) (10,000)
Equity 199,000 257,000
Total liabilities and equity $454,000 $507,000
Calculation of cash collected from customers in Year 2:
Year 1 Year 2
Accounts receivable 95,000 89,000
Sales revenue 338,000
Uncollectible written off (3,000)
Balance at the end of year 2 (89,000)
Cash collections = $341,000
b) The cash collected from customers is the difference between Beginning accounts receivable, credit sales (sales revenue), written off uncollectible, and the balance at the end of year 2.