Answer:
b is it I seen this before
Swifty Corporation gathered the following reconciling information in preparing its October bank reconciliation: Cash balance per books, 10/31 $12800 Deposits in transit 500 Notes receivable and interest collected by bank 2600 Bank charge for check printing 60 Outstanding checks 6100 NSF check 520 The adjusted cash balance per books on October 31 is
Answer:
See photo. I show how to balance but your format may be different. Hopefully you can use this info to fill out the format you learn in school.
Explanation:
For the previous month, the Bichsel Lounge served 1,500 customers with very few complaints. Their labor cost was $3,000; material cost was $800; energy cost was $200; and building lease cost was $1,500. They were open 26 days during the month, and the lounge has 20 seats. They are open six hours per day, and the average customer stay is one hour.
Required:
a. Calculate the single-factor productivities and the overall multiple-factor productivity. How could they improve the productivity?
b. Calculate the monthly capacity and the capacity utilization.
Based on the number of customers, the and the various costs, the single-factor productivities and monthly capacity are:
Labor productivity - 0.5.Material productivity - 1.88.Monthly capacity - 3,120 customers per month. Capacity utilization - 48%.What is the labor productivity?This can be found as:
= Number of customers / Labor cost
= 1,500 / 3,000
= 0.5
What is the material productivity?= 1,500 / 800
= 1.88
What is the monthly capacity?= (Number of seats x Days in a month x Hours in a day) / Customer times
= (20 x 26 x 6) / 1
= 3,120 customers per month
What is the capacity utilization?= No. of customers / Monthly capacity
= 1,500 / 3,120
= 48%
Find out more on factor productivity at https://brainly.com/question/13214575.
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Dorman Industries has a new project available that requires an initial investment of $6.1 million. The project will provide unlevered cash flows of $835,000 per year for the next 20 years. The company will finance the project with a debt-to-value ratio of .3. The company’s bonds have a YTM of 6.2 percent. The companies with operations comparable to this project have unlevered betas of 1.31, 1.24, 1.46, and 1.41. The risk-free rate is 3.2 percent, and the market risk premium is 6.4 percent. The company has a tax rate of 40 percent.
Required:
What is the NPV of this project?
Answer:
NPV = $ 400,115.43
Explanation:
NPV of this project = $ 400,115.43
Indicate whether each of the following costs associated with productionwould be classified as direct materials, direct labor, or manufacturing overhead.
a. Salaried supervisor responsible for several product lines
b. Maintenance personnel
c. Hourly workers assembling goods
d. Nails used to assemble cabinets
e. Bike frame used to build a racing bike
f. Factory utilities
g. Glue used to assemble toys
Answer and Explanation:
The classification is as follows
a. Manufacturing overhead as it is an indirect cost
b. Manufacturing overhead as it is related to factory
c. Direct labor as it represent the hours
d. Manufacturing overhead as it is an indirect material cost
e. Direct material as it represent the material cost
f. Manufacturing overhead as it is an indirect cost
g. Manufacturing overhead as it is an indirect material cost
In this way it could be categorized
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 150 100 % Variable expenses 60 40 % Contribution margin $ 90 60 % The company is currently selling 7,000 units per month. Fixed expenses are $214,000 per month. The marketing manager believes that a $7,500 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? rev: 03_09_2018_
Answer:
Effect on income= $9,600 increase
Explanation:
Giving the following formula:
Unitary contribution margin= $90
The marketing manager believes that a $7,500 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales.
To calculate the effect on income, we need to use the following formula:
Effect on income= increase in total contribution margin - increase in fixed costs
Effect on income= 190*90 - 7,500
Effect on income= 17,100 - 7,500
Effect on income= $9,600 increase
The Duerr Company manufactures a single product. All raw materials used are traceable to specific units of product. Current information for the Duerr Company follows:
Beginning raw materials inventory $27,000
Ending raw materials inventory 30,000
Raw material purchases 104,000
Beginning work in process inventory 39,000
Ending work in process inventory 49,000
Direct labor 129,000
Total factory overhead 104,000
Beginning finished goods inventory 79,000
Ending finished goods inventory 59,000
The company's cost of raw materials used, cost of goods manufactured and cost of goods sold is:________
Answer:
Results are below.
Explanation:
First, we need to calculate the direct material used:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 27,000 + 104,000 - 30,000
Direct material used= $101,000
Now, the cost of goods manufactured:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 39,000 + 101,000 + 129,000 + 104,000 - 49,000
cost of goods manufactured= $324,000
Finally, the cost of goods sold:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 79,000 + 324,000 - 59,000
COGS= $344,000
Metlock Corporation owns machinery that cost $25,600 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,072 per year, resulting in a balance in accumulated depreciation of $10,752 at December 31, 2020. The machinery is sold on September 1, 2021, for $13,440. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale
Answer:
journal entries to :
(a) update depreciation for 2021
Debit : Depreciation expense $2,048
Credit : Accumulated depreciation $2,048
(b) record the sale
Debit : Cash $13,440
Credit : Cost $25,600
Explanation:
First update the depreciation then do the sale journal
Pratt is ready to graduate and leave College Park. His future employer (Ferndale Corp.) offers the following four compensation packages from which Pratt may choose. Pratt will start working for Ferndale on January 1, year 1. Benefit Description Option 1 Option 2 Option 3 Option 4 Salary $ 60,000 $ 50,000 $ 45,000 $ 45,000 Health insurance No coverage $ 5,000 $ 5,000 $ 5,000 Restricted stock 0 0 1,000 shares 0 NQO's 0 0 0 100 options Assume that the restricted stock is 1,000 shares that trade at $5 per share on the grant date (January 1, year 1); shares are expected to be worth $10 per share on the vesting date at the end of year 1; and no 83(b) election is made. Assume that the NQOs (100 options) each allows the employee to purchase 10 shares at $5 exercise price. The stock trades at $5 per share on the grant date (January 1, year 1) and is expected to be worth $10 per share on the vesting date at the end of year 1, and the options are exercised and sold at the end of the year. Also assume that Pratt spends on average $3,000 on health-related costs that will be covered by insurance if he had coverage or is an after-tax expense if he isn't covered by insurance (treat this as a cash outflow). Assume that Pratt’s marginal tax rate is 35 percent. (Ignore FICA taxes and time value of money considerations). What is the after-tax value of each compensation package for year 1? If Pratt’s sole consideration is maximizing after-tax value for year 1, which scheme should he select?
Answer:
A. Option 1 After-tax value Compensation Package $36,000
Option 2 After-tax value Compensation Package $32,500
Option 3 After-tax value Compensation Package $35,750
Option 4 After-tax value Compensation Package $35,750
B. Option 1
Explanation:
Calculation to determine the after-tax value of each compensation package for year 1
OPTION 1 COMPENSATION PACKAGE
Salary $60,000
Add Restricted Stock$0
Taxable Total $60,000
($60,000+$0)
Tax Rate 35%
Less Tax Paid ($21,000)
($60,000*35%=$21,000)
After-tax cash value$39,000
($60,000-$21,000)
NQO’s$0
Less Health care expenses ($3,000)
After-tax value $36,000
($39,000-$3,000)
Therefore Option 1 After-tax value Compensation Package is $36,000
OPTION 2 COMPENSATION PACKAGE
Salary $50,000
Add Restricted Stock$0
Taxable Total $50,000
($50,000+$0)
Tax Rate 35%
Less Tax Paid ($17,500)
(35%*$50,000=$17,500)
After-tax cash value $32,500
($50,000-$17,500)
NQO’s$0
Less Health care expenses ($0)
After-tax value $32,500
($32,500-$0)
Therefore Option 2 After-tax value Compensation Package is $32,500
OPTION 3 COMPENSATION PACKAGE
Salary $45,000
Restricted Stock$ 10,000
Taxable Total $55,000
($45,000+$10,000)
Tax Rate 35%
Less Tax Paid ($19,250)
($35%*$55,000)
After-tax cash value$35,750
($55,000-$19,250)
NQO’s$0
Less Health care expenses ($0)
After-tax value $35,750
($35,750-$0)
Therefore Option 3 After-tax value Compensation Package is $35,750
OPTION 4 COMPENSATION PACKAGE
Salary $45,000
NQO’s $10,000
Taxable Total $55,000
($45,000+$10,000)
Tax Rate 35%
Less Tax Paid ($19,250)
($55,000*35%)
After-tax cash value $35,750
($55,000-$19,250)
Less Health care expenses ($0)
After-tax value $35,750
($35,750-$0)
Therefore Option 4 After-tax value Compensation Package is $35,750
b. Based on the above calculation assuming his sole consideration is maximizing after-tax value for year 1, the scheme that he should select is OPTION 1 with the amount of $36,000 reason been that OPTION 1 tend to maximizes after-tax value for year 1.
S. S. Sarkar (S.S.S.), a real estate investment company, is considering investing in a shopping center. The sale price is $5,000,000 and S.S.S. expects to have positive after-tax and after-mortgage payment cash flows from rents of $400,000 for the next three years. S.S.S. can obtain a mortgage with a downpayment of $3,000,000. At the end of the third year, S.S.S. anticipates selling the shopping center for a net after-tax gain on sale of $4,500,000. If S.S.S.'s required return is 30%, should S.S.S. go ahead and purchase the shopping center?
Answer:
S. S. Sarkar (S.S.S)
S.S.S. should not purchase the shopping center.
It will generate a negative NPV.
Explanation:
a) Data and Calculations:
Selling price of a shopping center = $5,000,000
Expected annual positive after-tax and after-mortgage payment cash flows form rents = $400,000
Down Payment = $3,000,000
Net after-tax gain on sale after three years = $4,500,000
S.S.S.'s required return = 30%
Annuity value factor for 3 years at 30% = 1.816
Present value factor for 3 years at 30% = 0.455
NPV: Cash Flows PV
Down payment $3,000,000 ($3,000,000)
Annual rent $400,000 $726,400 ($400,000 * 1.816)
After-tax gain $4,500,000 2,041,500 ($4,500,000 * 0.455)
NPV = ($226,100)
haraldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.2 ounces $ 5.00 per ounce $ 26.00 Direct labor 0.9 hours $ 14.00 per hour $ 12.60 Variable overhead 0.9 hours $ 5.00 per hour $ 4.50 The company reported the following results concerning this product in June. Originally budgeted output 4,400 units Actual output 4,600 units Raw materials used in production 25,000 ounces Purchases of raw materials 20,100 ounces Actual direct labor-hours 7,200 hours Actual cost of raw materials purchases $ 42,900 Actual direct labor cost $ 14,400 Actual variable overhead cost $ 4,200 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for June is:
Answer:
8,967
Explanation:
the baldwin Company currently has the following balances on their balance sheetTotal Assets $225,232 Total Liabilities136,748 Retained Earnings $36,493 Suppose next year the Baldwin Company generates $44,200 , pays $12,000 in , assets increase by $55,000, and total liabilities remain unchanged. What will ending Baldwins balance in Common Stock be next year
Answer:
see below
Explanation:
Common stock = Assets - Liabilities - Retained earnings
Assets next year = $225,232 + $55,000 = $280,232
Liabilities remain unchanged
Retained earnings = Opening retained earnings + Net income - Dividends
= $36,493 + $44,200 - $12,000
= $68,693
Common stock next year
= $280,232 - $136,748 - $68,693
= $74,791
At year-end, Chief Company has a balance of $22,000 in accounts receivable of which $2,200 is more than 30 days overdue. Chief has a credit balance of $220 in the allowance for doubtful accounts before any year-end adjustments. Using the aging of accounts receivable method, Chief estimates that 1.0% of current accounts and 12% of accounts over thirty days are uncollectible. What is the amount of bad debt expense
Answer:
$242
Explanation:
If a company has a balance of $22,000 in accounts receivables of which $2,200 is more than 30days overdue, amount of receivables below 30days overdue
= $22,000 - $2,200
= $19,800
Allowance for doubtful debt
= (1.0% × $19,800 + 12% × $2,200)
= $198 + $264
= $462
Additional allowance required
= $462 - $220
= $242
This is the amount t of bad debts as the credit could be posted to allowance for
doubtful debt and the debit to bad debt account
During its first year of operations, Swifty Corporation had these transactions pertaining to its common stock. Jan. 10 Issued 27,100 shares for cash at $6 per share. July 1 Issued 60,500 shares for cash at $7 per share. (a) Journalize the transactions, assuming that the common stock has a par value of $6 per share. (b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $3 per share.
Answer:
Swifty Corporation
Journal Entries:
a) Par value of $6 per share
Jan. 10
Debit Cash $162,600
Credit Common Stock $162,600
To record the issuance of 27,100 shares for cash at $6 per share.
July 1
Debit Cash $423,500
Credit Common Stock $363,000
Credit Additional Paid-in Capital $60,500
To record the issuance of 60,500 shares for cash at $7 per share.
b) Stock at no-par with a stated value of $3 per share:
Debit Cash $162,500
Credit Common Stock $81,300
Credit Additional Paid-in Capital $81,300
To record the issuance of 27,100 shares for cash at $6 per share.
July 1
Debit Cash $423,500
Credit Common Stock $181,500
Credit Additional Paid-in Capital $242,000
To record the issuance of 60,500 shares for cash at $7 per share.
Explanation:
a) Data and Analysis:
a) Par value of $6 per share
Jan. 10 Cash $162,600 Common Stock $162,600 27,100 shares for cash at $6 per share.
July 1 Cash $423,500 Common Stock $363,000 Additional Paid-in Capital $60,500
b) Stock at no-par with a stated value of $3 per share:
Cash $162,500 Common Stock $81,300 Additional Paid-in Capital $81,300
July 1 Cash $423,500 Common Stock $181,500 Additional Paid-in Capital $242,000
Match the terms with their corresponding descriptions.
a. Firms' costs associated with changing their prices
b. When workers respond, not to the purchasing power of their wage, but to the face value of their wage or salary
c. An event that changes the existing productivity and therefore changes the extent to which economic growth occurs
d. Given flexible prices and the existing factors of production, a measure of how much the economy grows
e. Variations in the growth rate from the long-run rate of economic growth real shock business fluctuations
1. Menu Cost
2. Transaction
3. Real
4. Natural Rate of Unemployment
5. Nominal Wage
6. Business Fluctuations
7. Slow Growth Rate
8. Purchasing power Discrepancies
Answer:
a. Menu cost.
b. Nominal wage of confusion.
c. Real shock.
d. Solow Growth Rate
e. Business Fluctuations.
Explanation:
a. Menu cost: Firms' costs associated with changing their prices.
b. Nominal wage of confusion: When workers respond, not to the purchasing power of their wage, but to the face value of their wage or salary.
c. Real shock: An event that changes the existing productivity and therefore changes the extent to which economic growth occurs.
d. Solow Growth Rate: Given flexible prices and the existing factors of production, a measure of how much the economy grows.
The Solow Growth Model, developed by Robert Solow, a Nobel Prize winning economist. It was the first neoclassical growth model which was was built upon the Keynesian Harrod-Domar model. The modern theory of economic growth is given by the Solow Model.
The equation below gives us the change in capital stock per worker with population growth at rate n;
Δk = sf(k) – (δ + n)k.
Where k: capital stock per worker in period t
s: savings rate
δ: rate of depreciation of capital
n: labor or number of workers
sf(k): savings per capita multiplied by a fraction of income saved.
e. Business Fluctuations: Variations in the growth rate from the long-run rate of economic growth real shock business fluctuations.
Johnson is a volunteer fireman for Prince George's County. One evening, he responds to an alarm at a residence. Outside the house, Bob grabs Johnson by the shoulders and says: My little daughter is in the house. Please save her! I'll pay you $20,000.00 if you get her out alive! Johnson bravely rushes into the burning house and rescues the little girl. The next day, Johnson finds Bob and asks for his check. Bob refuses to pay. Under these facts
a. Johnson will lose based on the theory of preexisting duty.
b. Johnson will lose based on the theory of past consideration
c. Johnson will be awarded the money based on the theory of ordinary contract law
d. Johnson will be awarded the money based on the theory of necessity
Answer: a. Johnson will lose based on the theory of preexisting duty.
Explanation:
Based on the information given in the question, Johnson will lose based on the theory of preexisting duty.
According to the theory of preexisting duty, when an individual is under the pre-existing duty to perform ans.auch person is under a contract, there will not be any consideration when there's a modification of the contract and then the modification is void.
In this case, it is the duty of Johnson to save lives as a firefighter. Therefore, saving the daughter of Bob simply means that he's performing his duty and if Bob refuses to pay him, Johnson will lose based on the theory of preexisting duty.
Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 7% Expected return on plan assets, 10% Actual return on plan assets, 9% Service cost, 2021 $ 340 January 1, 2021: Projected benefit obligation 2,450 Accumulated benefit obligation 2,150 Plan assets (fair value) 2,550 Prior service cost—AOCI (2021 amortization, $40) 340 Net gain—AOCI (2021 amortization, $6) 360 There were no changes in actuarial assumptions. December 31, 2021: Cash contributions to pension fund, December 31, 2021 275 Benefit payments to retirees, December 31, 2021 300 Required: 1. Determine pension expense for 2021. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2021.
Answer:
1. Pension expense $291
2.A. Pension expense
Dr Pension expense $291
Dr Plan assets (expected plan assets) $255
Dr Net gain -aoci6
Cr Prior service cost- oci 40
Cr PBO $512
B. Gains and losses
Dr Loss-oci 25
Dr Plan assets 25
(c) funding
Dr Plan assets $275
Cr cash 275
D. retiree benefits for 2021.
Dr PBO 300
Cr Plan assets 300
Explanation:
1. Calculation to determine the Pension Expense
PENSION EXPENSE
Service cost (given) $340
Add Interest cost $172
Less Expected return on plan assets ($255)
Add Prior service cost $40
Less Net gain or (loss) (6))
PENSION EXPENSE $291
2. Preparation of the journal entries to record
(a) pension expense
Dr Pension expense $291
Dr Plan assets (expected plan assets) $255
Dr Net gain -aoci6
Cr Prior service cost- oci 40
Cr PBO (service cost + interest cost)$512
($340+$172)
b. gains and losses
Dr Loss-oci 25
Dr Plan assets 25
(c) funding
Dr Plan assets $275
Cr cash 275
D. retiree benefits for 2021.
Dr PBO 300
Cr Plan assets 300
Working :
Projected benefit obligation ($2,450) x Discount rate (.07) = $172 Interest cost
Plan assets (fair value) ($2,550) x Expected return on plan assets (.10) = $255
Plan assets (fair value) ($2,550) x Actual return on plan assets (.09) =$230
Gain or (loss on plan assets) $255-$230 = ($25) loss
Service cost (given) =$340
Prior service cost (given)= 40
Benefit payments to retirees, December 31, 2013= $300
Cash contributions to pension fund, December 31, 2021 (given)= 275
Net gain or (loss) (given) = (6)Net gain–AOCI (2021 amortization
The records of Flounder’s Boutique report the following data for the month of April.
Sales revenue $103,300
Purchases (at cost) $52,100
Sales returns 2,200
Purchases (at sales price) 95,200
Markups 9,000
Purchase returns (at cost) 2,200
Markup cancellations 1,600
Purchase returns (at sales price) 3,200
Markdowns 9,500
Beginning inventory (at cost) 29,725
Markdown cancellations 3,100
Beginning inventory (at sales price) 50,100
Freight on purchases 2,600
Compute the ending inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.)
Ending inventory using conventional retail inventory method
Answer:
See below
Explanation:
COST RETAIL
Beginning inventory
Add:
Purchases
The client Circuit City is considering the introduction of private label brands into their superstores. Private label brands are unbranded products made by an OEM (original equipment manufacturer). Is there any value in this product line? If yes, what are the sources of value of this program? What are the potential downside risks associated with introducing private label products?
Answer:
Following are the responses to the given question:
Explanation:
Please find the complete question.
Yes, value exists. Their price is lower and therefore more competition and benefit are higher. Its value is reduced. Further competition among producers leads to higher production and lower prices. Further good product feedback will increase profitability after their use by consumers. Based on buyers' requirements, drugs can also be added. The drawback is that the output and performance depend more on the producer. Initially, the gain can be very low due to lower prices. Because they are typically replicas of premium products, a distinctive identity becomes difficult to have. Besides, customers get less trust and this problem is worse from the outset.
You are given the following information concerning Parrothead Enterprises:
Debt: 9,300 6.5% coupon bonds outstanding, with 22 years to maturity and a quoted price of 104.75. These bonds have a par value of $1,000 and pay interest semi-annually.
Common stock: 240,000 shares of common stock selling for $64.80 per share. The stock has a beta of .93 and will pay a dividend of $3.00 next year. The dividend is expected to grow by 5.3 percent per year indefinitely.
Preferred stock: 8,300 shares of 4.65 percent preferred stock selling at $94.30 per share.
Market: 11.7% expected return, a risk-free rate of 3.75%, and a 23% tax rate.
Calculate the company's WACC.
Answer:
WACC is 8.19%
Explanation:
WACC (Weighted Average Cost of Capital is determined by multiplying capital source cost of both equity and debt by their relevant weight and then summing the results to identify the value using the formulae given below:
WACC = (E/V x Re) + [D/V x Rd x (1 - Tc)]
where:
E = Market Value of the firm's equity
D = Market Value of the firm's debt
V = E + D
Re = Cost of Equity
Rd = Cost of Debt
Tc = Tax Rate
In the given question, we will first determine the cost of equity. As shown below:
Cost of Equity = Average of CAPM and Dividend Capitalisation Model
CAPM = Risk free rate of return + Beta x (market rate of return - risk free rate of return)
CAPM = 3.75 + 0.93 x (11.7 - 3.75)
CAPM = 11.14%
Dividend Capitalisation Model = Expected dividend net year / Current Price + Growth Rate
Dividend Capitalisation Model = 3 / 64.8 * 100 + 5.3
Dividend Capitalisation Model = 9.93%
Cost of Equity = 9.93 + 11.14 = 10.54%
Next is the cost of debt which would be calculated using YTM (Yield to maturity)
where:
Par Value = 1047.5
Face Value = 1000
Coupon rate = 6.5
Years to maturity = 22 years
Coupon Payment Frequency is semi annually.
The Cost of debt = 6.1%
After Tax it would be 4.7% [6.1% * (1 - 23%)]
Next, we will determine the rate of preferred stock before calculating the WACC.
Rate of preferred stock = Annual dividend / Current Price * 100
Rate of preferred stock = 4.65 / 94.3 * 100
Rate of preferred stock = 4.93%
Finally, we will calculate the Market Value (MV) of equity, debt and preferred stock. As shown below:
MV Equity = 240,000 x 64.8 = 15,552,000
MV Debt = 1047.5 x 9300 = 9,741,750
MV preferred stock = 8,300 x 94.3 = 782,690
Total = 26,076,440
WACC = (15,552,000 / 26,076,440 * 10.54%) + (9,741,750 / 26,076,440 * 4.7%) + (782,690 / 26,076,440 * 4.93%)
WACC = 6.28% + 1.76% + 0.15%
WACC = 8.19%
A town wishes to build a new school that will cost $15,000,000. The school is to be built in 10 years. The town will provide funding for the new school by depositing a uniform amount into an investment fund paying 5% per year, compounded annually. How much must be set aside in each of the 10 years to provide for the new school?
Answer:
Annual deposit= $1,192,568.62
Explanation:
Giving the following formula:
Future Value= $15,000,000
Number of periods= 10 years
Interest rate= 5% compounded annually
To calculate the annual deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (15,000,000*0.05) / [(1.05^10) - 1]
A= $1,192,568.62
Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows:
Junior Pro Striker
Production budget 7,400 units 18,600 units
Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
Forming Department Assembly Department
Junior 0.2 hour per unit 0.4 hour per unit
Pro Striker 0.35 hour per unit 0.7 hour per unit
The direct labor rate for each department is as follows:
Forming Department $14 per hour
Assembly Department $12 per hour
Required:
Prepare the direct labor cost budget for July.
Answer and Explanation:
The preparation of the direct labor cost budget for July month is as follows:
Particulars Forming Dept Assembly Dept
Production 7,400 units 18,600 units
Hours required junior 1,480 2,960
(7,400 units × 0.2) (7,400 units × 0.4)
Hours required pro 6,510 13,020
(18,600 units × 0.35) (18,600 units × 0.7)
Total hours 7,990 15,980
Total hours rate $14 $12
Total direct labor cost $111,860 $191,760
At the end of May, the following adjustment data were assembled.
Analyze and use these data to complete Part 6.
a. Merchandise inventory on May 31$570,000
b. Insurance expired during the year12,000
c. Store supplies on hand on May 314,000
d. Depreciation for the current year14,000
e. Accrued salaries on May 31:
Sales salaries $7,000
Office salaries 6,60013,600
f. The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of merchandise sold.
Answer: Top line=debits, bottom line=credits
part 4
2019
May 31
(Debits) Cost of Merchandise Sold 13,950
(Credits) Merchandise Inventory 13,950
May 31
Insurance Expense 12,000
Prepaid Insurance 12,000
May 31 (labels correct, dollar amount unknown)
Store Supplies Expense ??
Store Supplies ??
May 31
Depreciation Expense 14,000
Accumulated Depreciation
-Store Equipment 14,000
May 31
Sales Salaries Expense 7,000
Office Salaries Expense 6,600
Salaries Payable 13,600
May 31
Sales 60,000
Customer Refunds Payable 60,000
May 31
Estimated Returns Inventory 35,000
Cost of Merchandise Sold 35,000
Which statement best conveys the bad news of the refusal?
a.We were able to save valuable resources that otherwise might have been spent on keeping out-of-warranty gear in working order and on missing peripherals such as monitors, keyboards, and mice.
b.To ensure compatibility, proper software licensing, and the same useful life of the equipment, we decided to accept only new and complete systems.
c.We regret to inform you that we cannot accept your used computing equipment as much as we appreciate your offer.
Answer: B
Explanation:proof
The projected benefit obligation was $280 million at the beginning of the year and $300 million at the end of the year. Service cost for the year was $18 million. At the end of the year, there were no pension-related other comprehensive income accounts. The actuary’s discount rate was 5%. What was the amount of the retiree benefits paid by the trustee?
Answer:
$12 million
Explanation:
Calculation to determine the amount of the retiree benefits paid by the trustee
Beg PBO $280 million
Less En PBO ($300 million)
Add Service cost $18 million
Add Interest cost $14 million
(280million*5%)
Retiree benefits Paid by trustee $12 million
Therefore the amount of the retiree benefits paid by the trustee is $12 million
what is money placed in a checking account called
Answer:
bank account
Explanation:
Use the following account balances from the adjusted trial balance of Flora Wholesalers:
Account Debit Balance Credit Balance
Cash $4,200
Accounts receivable $300
Accounts payable $1,100
H. Jones, Capital $4,400
H. Jones, Drawing $900
Fees revenue $13,200
Advertising expense $8,100
Travel expense $4,200
Shipping expense $300
Computer software expense $400
Required:
What accounts of Flora Wholesalers will have the same balance at the beginning of next year as it does presently on the adjusted trial balance?
Answer:
Flora Wholesalers:
The accounts of Flora Wholesalers that will have the same balance at the beginning of next year as they do presently on the adjusted trial balance are:
Assets:
Cash $4,200
Accounts receivable $300
Liabilities and Equity:
Accounts payable $1,100
H. Jones, Capital $4,400
Explanation:
a) Data and Analysis:
Adjusted Trial Balance
Account Debit Balance Credit Balance
Cash $4,200
Accounts receivable $300
Accounts payable $1,100
H. Jones, Capital $4,400
H. Jones, Drawing $900
Fees revenue $13,200
Advertising expense $8,100
Travel expense $4,200
Shipping expense $300
Computer
software expense $400
Assets:
Cash $4,200
Accounts receivable $300
Liabilities and Equity:
Accounts payable $1,100
H. Jones, Capital $4,400
b) The above assets, liabilities, and equity accounts will have the same balances at the beginning of next year as they do presently on the adjusted trial balance. They are called permanent accounts. Only the temporary accounts do change their balances from the adjusted trial balances to the opening balances. The only other account that is not included above is the Retained Earnings. This account is adjusted with the differences in the temporary accounts.
In 1993, Sheffield Company completed the construction of a building at a cost of $2,340,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $69,600 at the end of that time.
Early in 2004, an addition to the building was constructed at a cost of $585,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $23,400.
In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.
Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places)
Annual depreciation expense—building ___________
Answer:
Annual depreciation expense is $23,547
Explanation:
In the year 2022 the cost of the building will be written down value.
Using straight line depreciation method : (Cost - Salvage value ) / Useful life
Depreciation in 1994 = ( 2,340,000 - 69,600 ) / 40 years = 56,760
There is addition construction in year 2004 the carrying value of the building will be :
2,340,000 - ( 56,760 * 20 ) = 1,204,800
Depreciation in 2004 : ( 1,204,800 + 585,000 ) - 23,400 / 30 years = 58,880
Carrying value on 2022 :
1,789,800 - ( 58,880 * 18 years) = 729,960
Depreciation expense in 2022:
729,960 / 31years = $23,547
Help! Which tasks commonly are performed in Management and Entrepreneurship jobs? Check all that apply.
packaging products
managing budgets
predicting future results
tracking inventory
hiring and supervising workers
visiting customers’ homes
setting goals and strategies
help me i am being help hostage to do homework
Hello There! The Answer to this problem is: B, C, E, G
Explanation:
Answer:bceg
Explanation:
Test completed
Match each transaction with the appropriate journal in which it should be recorded.a. Sales journalb. Purchases journalc. Cash receipts journald. Cash disbursements journale. General journal____ 1. Borrowed $7,000 cash from the local bank.____ 2. A customer returned a $250 item purchased on account.____ 3. Purchased merchandise on account, $2,100.____ 4. Purchased equipment on account for $4,000.____ 5. Paid $15,000 cash in wages to employees.____ 6. Paid a telephone bill for $3,400 cash.____ 7. Purchased $1,150 of office supplies on account.____ 8. Recorded depreciation on office equipment of $2,000.____ 9. Returned defective inventory purchased on account, $2,550.____ 10. Recorded cash sales of $12,700.
Answer and Explanation:
The matching is as follows:
1. Cash receipts journal - since cash is received
2. General journal - since the items is returned
3. Purchase journal - since purchase is done
4. Purchase journal - since purchase is done
5. Cash disbursement journal - since cash is paid
6. Cash disbursement journal - since cash is paid
7. Purchase journal - since purchase is done
8. General journal - since expenses are recorded
9. General journal - since the items is returned
10. Cash receipts journal - since cash is received
g Bellingham Company produced 3,400 units of product that required 1.5 standard direct labor hours per unit. The standard fixed overhead cost per unit is $2.95 per direct labor hour at 5,500 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Answer:
the fixed factory overhead volume variance is $1,180 unfavorable
Explanation:
The computation of the fixed factory overhead volume variance is shown below
= (Actual activity - normal activity)× fixed overhead cost per unit
= (3,400 × 1.5 - 5,500) × $2.95
= (5,100 - 5,500) × 2.95
= 400 × 2.95
= $1,180 unfavorable
Hence, the fixed factory overhead volume variance is $1,180 unfavorable
Simply we applied the above formula so that the correct amount could come