Answer:
1) January 1, 2018, asset leased
Dr Lease receivable 550,000
Cr Equipment 550,000
January 1, incremental costs associated with lease transaction
Dr Lease receivable 6,652
Cr Cash 6,652
January 1, 2018, first lease payment collected
Dr Cash 200,000
Cr Lease receivable 200,000
2) to calculate the effective rate we can use the present value of an annuity due formula
PV annuity due factor, 3 periods, ?% = present value of lease receivable / annual payment = $556,652 / $200,000 = 2.78326
Now we must use an annuity due table to determine a possible rate. In this case, the exact rate is 8%.
3) December 31, 2018, interest receivable on lease contract
Dr Interest receivable 28,532
Cr Interest revenue 28,532
interest receivable = ($556,652 / $200,000) x 8% = $28,532
If a firm's beta was calculated as 1.6 in a regression equation, a commonly-used adjustment technique incorporating a weighting on long-run beta of 1.0 would provide an adjusted beta of
Answer: between 1 and 1.6
Explanation:
The Market Beta is 1.0 which is why in the long run, betas will equal 1 and so will move steadily towards 1 overtime.
The adjustment technique will therefore show a beta between 1 and 1.6 because the 1.6 will move on to 1 overtime.
To explain, the adjustment technique is as follows;
Adjusted beta = 2/3(sample beta) + 1/3(1)
= 2/3(1.6) + 1/3
= 1.4
The adjusted beta of 1.4 is between 1 and 1.6.
Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces 3,415 gallons of gasoline, 2,732 gallons of diesel, and 1,366 gallons of kerosene at a joint cost of $12,000. After the split-off point, all products are processed further, but the estimated market price for each product at the split-off point is as follows:
Gasoline $2 per gallon
Diesel 1 per gallon
Kerosene 3 per gallon
Using the market value at split-off method, allocate the $12,000 joint cost of production to each product.
Joint Product Allocation
Gasoline $
Diesel
Kerosene
Totals $
Answer: See attachment
Explanation:
Allocation rate was calculated as:
Gasoline: 6830/13660 × 100 = 50%
Diesel: 2732/13660 × 100 = 20%
Kerosene: 1366/13660 × 100 = 30%
Cost to be allocated:
Gasoline = 50% × $12000 = $6000
Diesel: 20% × $12000 = $2400
Kerosene: 30% × $12000 = $3600
Check the attachment for further details.
Blaster Corporation manufactures hiking boots. For the coming year, the company has budgeted the following costs for the production and sale of 30,000 pairs of boots.
Budgeted Costs Budgeted Costs per Pair Percentage of Costs Considered Variable
Direct materials $ 630,000 $ 21 100 %
Direct labor 300,000 10 100
Manufacturing overhead
(fixed and variable) 720,000 24 25
Selling and administrative
expenses 600,000 20 20
Totals $ 2,250,000 $ 75
Required:
a. Compute the sales price per unit that would result in a budgeted operating income of $900,000, assuming that the company produces and sells 30,000 pairs. (Hint: First compute the budgeted sales revenue needed to produce this operating income.) Assume that the company decides to sell the boots at a unit price of $121 per pair.
b-1. Compute the total fixed costs budgeted for the year.
b-2. Compute the variable cost per unit.
b-3. Compute the contribution margin per pair of boots.
b-4. Compute the number of pairs that must be produced and sold annually to break even at a sales price of $121 per pair.
Answer:
a. Sales volume = (Fixed costs + Target income) / Contribution margin per unit
Fixed costs = ( Percentage of fixed Selling and Admin expenses) +
Percentage of fixed Manufacturing expenses
= 600,000 * 80% + 720,000 * 75%
= 480,000 + 540,000
= $1,020,000
30,000 units = (1,020,000 + 900,000) / Contribution Margin per unit
Contribution margin per unit = 1,920,000/30,000
= $64
Sales per unit = Contribution margin per unit + Variable cost per unit
Variable Cost per unit = 21 + 10 + (24*25%) + (20 * 20%)
= $41
Sales per unit = 64 + 41
= $105 per unit
b - 1. Fixed costs = ( Percentage of fixed Selling and Admin expenses) + Percentage of fixed Manufacturing expenses
= 600,000 * 80% + 720,000 * 75%
= 480,000 + 540,000
= $1,020,000
b - 2. Variable Cost per unit
= Direct materials + Direct Labor + variable percentage of Manufacturing overhead cost per unit + variable percentage of Selling and administrative per unit
= 21 + 10 + (24*25%) + (20 * 20%)
= $41
b - 3. Contribution margin = Selling price - Variable cost
= 121 - 41
= $80
b - 4. Breakeven Point = Fixed Cost / Contribution margin
= 1,020,000/80
= 12,750 units
A financial institution where the users are the owners and generally share a common bond are known as
Answer: Credit unions
Explanation:
Credit union is a nonprofit-making money institution whose members can borrow from deposits at low interest rates and share profits with owners.
Their aim is to serve each member by helping them to get funds at low interest .
Hence, a financial institution where the users are the owners and generally share a common bond are known as Credit union.
1. You are 26 years old, married, and have two small children. You have a household income (take-home pay) of $3,500 per month and currently rent your home. You have and pay many bills, and make many purchases (usually by debit card) each month. You often lose track of spending and end up paying unnecessary bank fees. You would like to buy a new car in five months and a new home in two years. To avoid overdrafts, you chose "opt-in" overdraft protection with your bank. You just received your bank statement, which states a balance of $691, while your check register says you have a balance of $800. Which of the following accounts would be best for?
Purpose Type of accountA) Satisfying your day-to-day spending needs? ___________ B) Making and holding funds for your car purchase? ___________C) Making and holding funds for your home purchase? ___________D) Making and holding funds for your retirement?
A. Stock and bond portfolio.
B. NOW account.
C. NOW account.
D. Mutual funds.
2. Which of the following accounts is typically not insured?A. Mutual Funds.B. NOW account.
C. Certificate of deposit.
D. Statement savings account.
3. Which of the following practices would help you keep accurate records regarding the funds in your bank account?
A. Keep track of your balance online.B. Immediately record the date and amount of each transaction in your check register and calculate the new balance.C. Wait for the printed bank statement to arrive in the mail to know what payments and receipts have cleared your account.4. You can avoid a service fee on an average-balance account if you:______.
A. Issue a stop-payment order when you find yourself overdrawn.B. Keep a certain average daily balance in the account through a specified time.C. Avoid an overdraft for a specified time.D. Have your paycheck automatically deposited into your account each pay period.
Answer:
1. A) Satisfying your day-to-day spending needs?
Statement Savings account
Bank statements will hep you keep track of the balance.
B) Making and holding funds for your car purchase?
NOW Account.
An account that earns interest yet allows the owner to write drafts against the money in the account. This would be good here as it will increase the funds you are saving for the car purchase.
C) Making and holding funds for your home purchase?
NOW Account.
NOW stands for Negotiable Order of Withdrawal account and would work here as well.
D) Making and holding funds for your retirement?
Certificate of Deposit.
These are offered by banks and earn a higher interest return. They however have to be locked up for a while without withdrawing so they are great for retirement saving.
2. Which of the following accounts is typically not insured?
A. Mutual Funds.Mutual funds are not financial deposits so will not be covered by the Federal Deposit Insurance Corporation (FDIC).
3. Which of the following practices would help you keep accurate records regarding the funds in your bank account?
A. Keep track of your balance online.B. Immediately record the date and amount of each transaction in your check register and calculate the new balance.4. You can avoid a service fee on an average-balance account if you:
B. Keep a certain average daily balance in the account through a specified timeFlintlnc. provided the following information for the year 2017.
Retained earnings, January 1, 2017 $ 589,400
Administrative expenses 246,000
Selling expenses 307,200
Sales revenue 1,812,200
Cash dividends declared 83,000
Cost of goods sold 821,500
Loss on discontinued operations 78,200
Rent revenue 40,200
Unrealized holding gain on available-for-sale securities 16,900
Income tax applicable to continuing operations 192,700
Income tax benefit applicable to loss on discontinued operations 43,010
Income tax applicable to unrealized holding gain on available-for-sale securities
2,000
1. Prepare a single-step income statement for 2017. Shares outstanding during 2017 were 100,000. (Round earnings per share to 2 decimal places, e.g. $1.48.)
2. Prepare aretained earning statement for 2017. Shares outstanding for 2017 were 100000.
Answer: See explanation
Explanation:
1. Prepare a single-step income statement for 2017. Shares outstanding during 2017 were 100,000. (Round earnings per share to 2 decimal places, e.g. $1.48.)
The income from continuing operations for earnings per share was calculated as:
= 285000/100000
= $2.85
The loss on discontinued operations was calculated as:
= 35190/100000 shares
= 0.35
Check the attachment for the solution.
2. Prepare aretained earning statement for 2017. Shares outstanding for 2017 were 100000.
Check the attachment for the solution
Support Department Cost Allocation-Direct Method Charlie's Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on). Production departments include Cutting and Assembly. The Janitorial and Security departments support the Cutting and Assembly departments. The Assembly Department spans about 42,560 square feet and holds assets valued at about $77,520. The Cutting Department spans about 33,440 square feet and holds assets valued at about $126,480. Charlie's Wood Works allocates support department costs using the direct method. If costs from the Janitorial Department are allocated based on square feet and costs from the Security Department are allocated based on asset value.
a. Determine the percentage of Janitorial costs that should be allocated to the Assembly Department.
b. Determine the percentage of Security costs that should be allocated to the Cutting Department.
Answer:
a. 56%
b. 62%
Explanation:
a. Janitorial costs are allocated based on square feet.
Assembly Department Square feet = 42,560
Total area for both departments = 42,560 + 33,440 = $76,000
Percentage of costs
= 42,560/ 76,000
= 56%
b. Security costs are allocated based on asset value.
Cutting Department Asset Value = $126,480
Total asset value for both departments = 77,520 + 126,480 = $204,000
Percentage of costs
= 126,480/ 204,000
= 62%
What is a "debt-to-income" ratio?
OA. How much money you have to make every year in your job.
OB. How much money you owe in total versus how much you make.
O C. How much money you have to pay back on your income.
How much money you owe on your student loan compared with how much
OD.
you want to make in your job.
Consider two neighboring island countries called Euphoria and Contente. They each have 4 million labor hours available per week that they can use to produce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor.Country Rye Jeans(Bushels per hour of labor)(Pairs per hour of labor)Euphoria 5 20Contente 8 16 Initially, suppose Contente uses 1 million hours of labor per week to produce rye and 3 million hours per week to produce jeans, while Euphoria uses 3 million hours of labor per week to produce rye and 1 million hours per week to produce jeans. Consequently, Euphoria produces 15 million bushels of rye and 20 million pairs of jeans, and Contente produces 8 million bushels of rye and 48 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of rye and jeans it produces.Euphoria's opportunity cost of producing 1 bushel of rye is ________ of jeans, and Contente's opportunity cost of producing 1 bushel of rye is ____________ of jeans. Therefore, __________ has a comparative advantage in the production of rye, and___________ has a comparative advantage in the production of jeans.Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce ________million bushels per week, and the country that produces jeans will produce_________million pairs per week.
Explanation:
here is an explanation and solution to your question
For Euphoria:
The opportunity cost of producing a unit of rye in terms of jeans =20/5 = 4
for contente:
The opportunity cost of producing a unit of rye in terms of jeans = 16/8 = 2
opportunity cost of producing 1 unit of jean in terms of unit of rye:
for euphoria = 5/20 = 1/4
for contente = 8/16 = 1/2
1.
Euphoria's opportunity cost of producing a a bushel of rye is 4 pairs of jeans.
contentes opportunity cost of producing a bushel of rye is 2 pairs of jeans.
2.
contente has comparative advantage in producing rye
euphoria has comparative advantage in jeans production
3
contente produces 8 bushels of rye so with 4 million hours of labor = 8x4 = 32 million bushels in a week.
euphoria 20 pairs of jean in a week, using 4 million hours of labor. 20x4 = 80 pairs of jean a week
The following transactions occur for the Wolfpack Shoe Company during the month of June:
Provide services to customers for $30,000 and receive cash.
Purchase office supplies on account for $20,000.
Pay $7,000 in salaries to employees for work performed during the month.
1. Analyze each transaction.
2. Record the transaction.
3. Post the transaction to T-accounts. Assume the opening balance in each of the accounts is zero.
Answer:
1.
Assets = $30,000 (increase) and Revenue = $30,000 (increase)
Assets = $20,000 (increase) and Liabilities = $20,000 (increase)
Assets = $7,000 (decrease) and Liabilities = $7,000 (decrease)
2.
Cash $30,000 (debit)
Service Revenue $30,000 (credit)
Cash Received for Service Rendered
Office Supplies $20,000 (debit)
Accounts Payable $20,000 (credit)
Office Supplies purchased on credit
Salaries Expense $7,000 (debit)
Cash $7,000 (credit)
Salaries Paid
3.
Cash Account
Debit :
Service Revenue $30,000
Credit :
Salaries Payable $7,000
Balance c/d $23,000
Revenue Account
Debit :
Balance c/d $30,000
Credit :
Cash $30,000
Office Supplies Account
Debit :
Accounts Payable $20,000
Credit :
Balance c/d $20,000
Accounts Payable Account
Debit :
Balance c/d $20,000
Credit :
Office Supplies $20,000
Salaries Expense Account
Debit :
Cash $7,000
Credit :
Balance c/d $7,000
Explanation:
Accounting starts with analyzing transactions and their effects on Assets, Liabilities, Equity, Revenues and Expenses.
The next stage is to record the transactions in Journals. See journals and narrations above.
Then the preparation of Ledger Accounts using the Journal entries.
Dale’s Business Services experienced the following events during its first year of operations:
1. Acquired $20,000 cash from the issue of common stock.
2. Borrowed $12,000 cash from First Bank.
3. Paid $5,000 cash to purchase land.
4. Received $25,000 cash for providing boarding services.
5. Acquired an additional $5,000 cash from the issue of common stock.
6. Purchased additional land for $4,000 cash.
7. Paid $10,000 cash for salary expense.
8. Signed a contract to provide additional services in the future.
9. Paid $1,200 cash for rent expense.
10. Paid a $1,000 cash dividend to the stockholders.
11. Determined the market value of the land to be $18,000 at the end of the accounting period.
Required:
Classify each event as an asset source, use, or exchange transaction or as not applicable (NA).
Answer:
Explanation:
AS U BEING MY FRIEND I WILL WARN ABOUT MY HUMAN BEING IN THE TELESCOPE. BUT WHAT I REALLY NEED TO TALK TO U ABOUT IS THE FLYING SAUSAGE INCIDENT I DON’T THINK I TALKED TO U ABOUT THIS BUT U REALLY SHOULD KNOW THAT I AM SECRETLY A FLYING SAUSAGE NOT ONLY AM I A FLYING SAUSAGE BUT I AM THE FLYING SAUSAGE THAT TOOK THE WALKING CHEESEBURGERS PICKLES. I NEED UR HELP TO ESCAPE THE POLICE MEN BECAUSE THE ONLY REASON I STOLE HIS PICKLES WAS BECAUSE I WAS GOING THROUGH THIS THING WHERE ALL I WANTED TO DO WAS EAT PICKLES AND MY MOM WOULDN’T BUY ANY. I HAD NO MONEY SO I DIDN’T KNOW WHAT ELSE TO DO. I WALKED OVER TO THE CHEESEURGER AND TOOK HIS PICKLES. APPARENTLY THATS AGAINST THE LAW BUT I STILL DID IT. I ALREADY ATE THE PICKLES SO I CAN’T RETURN THEM. I ASKED BOBBYJO TO PUT ME IN A BOX AND SEND ME TO NORTH CAROLINA SO I AM NOW IN NEW ENGLAND I NEED U TO GO ON A SECRET MISSION AND GO BUY ME A PRIVATE JET U SEE I CAN NOT FLY ANYMORE SO I NEED SOMEONE TO SEND ME A PRIVATE JET NOT A AIRPLANE I ALREADY HAVE 2,345 AIRPLANES PLEASE DO NOT SEND ME AN AIRPLANE.PLEASE AND THANK YOU I HOPE U CAN COMPLETE MY MISSION.
THE YOUNG HOT WING
DID U KNOW THAT A LONG TIME AGO THERE ONCE WAS A YOUNG HOT WING HE WAS A VERY NICE HOT WING EXCEPT HE WANTED TO HE TOMATO'S NOT JUST NORMAL TAMATO'S BUT TOMATO'S FROM A CLOWNS NOSE. HE HAD TO HAVE THE CLOWNS NOSE'S FOR EVERY MEAL BUT THEY HAD TO BE USED.
THIS HOT WING ENDED UP AS A MODEL IN THE 1780'S. HE TURNED OUT NICE AND RED WITH HOT SAUCE. ONE DAY AT A MODELING SHOW A GUY DECIDED TO GO UP ON STAGE AND TAKE A BIG JUICY BITE OUT OF THE HOT WING. THE HOT WING CRIED AND CRIED FOR A MILLION YEARS BECAUSE HE COULD NO LONGER BE A MODEL. AFTER HE CRIED FOREVER HE WAS VERY MOLDY SO HE STARTED TO CRY AGAIN. AFTER THAT THE LITTLE MOLDY PARTS CAME OF OF HIM AND BECAME SERGEANTS THEY STICTICHED UP THE HOTWINGS WHOLE. BY NOW THE YOUNG HOT WING IS A VERY OLD BUT HE STILL COMPLETED HIS MODELING CAREER. AFTER THE SERGEANT'S FIXED UP THE HOT WING THEY GOT A HOTDOG AND ATE IT.
How long will it take for Wyoming to double its economy if it maintains this growth rate? Give your answer to two decimals. g
Answer:
241.38 years
Explanation:
Please find attached an image of the full question used in answering this question
The rule of 70 can be used to calculate how long it would take for the GDP of a country to double.
the time it takes for GDP to double = 70 / growth rate
70 / 0.29 = 241.38 years
What should be the initial markup percent in a department that has the following figures: Net sales $320,000 Markdowns 7,800 Expenses 105,000 Employee discounts 1,950 Shortages 2,750 Alterations 1,025 Cash discounts 950 Profit 7.5%
Answer:
42.58%
Explanation:
Calculation for What should be the initial markup percent
First step is to calculate the gross margin using this formula
Gross Margin = Profit + Expenses,
Let plug in the formula
Gross margin = 105,000+24,000
Gross margin= 129,000
Second step is to calculate the reduction using this formula
Reduction = Markdown + Employee discount + Shortages
Let plug in the formula
Reduction = 7,800+1,950+2,750
Reduction = 12,500
Last step is to calculate the Intial Markup Percentage using this formula
Intial Markup Percentage = ( Gross margin + Reduction + Alteration - Cash Discount) / (Sales + Reduction)
Let plug in the formula
Intial Markup Percentage = (129,000+12,500+1,025-950) / (320,000+12,500)
Intial Markup Percentage = =141,575/332,500
Intial Markup Percentage =42.58%
Therefore What should be the initial markup percent is 42.58%
Presented below are a number of balance sheet accounts of Deep Blue Something, Inc. For each of the accounts below, indicate the proper balance sheet classification.
Balance Sheet Accounts
Balance Sheet Classification
(a) Investment in Preferred Stock.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(b) Treasury Stock.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(c) Common Stock.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(d) Dividends Payable.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(e) Accumulated Depreciation-Equipment.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(f)(1) Construction in Process (Constructed for another party).
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(f)(2) Construction in Process (Constructed for the use of Deep Blue Something, Inc.).
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(g) Petty Cash.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(h) Interest Payable.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(i) Deficit.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(j) Equity Investments (trading).
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(k) Income Taxes Payable.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(l) Unearned Subscription Revenue.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(m) Work in Process.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(n) Salaries and Wages Payable.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
Answer
S/N Balance Sheet Accounts Balance Sheet Classification
(a) Investment in Preferred Stock Current Asset
(b) Treasury Stock Shareholders’ Equity
(c) Common Stock Shareholders’ Equity
(d) Dividends Payable Current Liability
(e) Accumulated Depreciation Property, Plant, and Equipment
-Equipment
(f)-1 Construction in Process Current Assets
(Constructed for another party).
(f)-2 Construction in Process Property, Plant, and Equipment
(Constructed for the use of Deep Blue Something, Inc.).
(g) Petty Cash. Current Assets
(h) Interest Payable Current Liability
(i) Deficit Retained Earning
(j) Equity Investments (trading) Current Assets
(k) Income Taxes Payable Current Liability
(l) Unearned Subscription Revenue Current Liability
(m) Work in Process Current Assets
(n) Salaries and Wages Payable Current Liability
Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,283,744 as follows.
Work in process, November 1 Materials $78,600 Conversion costs 48,700 $127,300 Materials added 1,592,280 Labor 225,100 Overhead 339,064 Production records show that 35,200 units were in beginning work in process 30% complete as to conversion costs, 661,000 units were started into production, and 25,400 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.
(a) Determine the equivalent units of production and the unit production costs for the Assembly Department.
(Round unit costs to 2 decimal places, e.g. 2.25.)
Materials Conversion Costs
Equivalent Units
Cost per unit $ $
(b) Determine the assignment of costs to goods transferred out and in process.
(c) Prepare a production cost report for the assembly dept.
Answer:
a.
Equivalent Units : Materials = 696,200 units and Conversion Costs = 680,960 units
Cost per unit : Materials = $2.40 and Conversion Costs = $0.90
b.
goods transferred out = $2,213,640
goods in process = $70,104
c.
Production cost report for the assembly department
Inputs :
Opening Balance $127,300
Costs added during the year :
Materials $1,592,280
Labor $225,100
Overhead $ 339,064
Total Costs $2,283,744
Outputs :
Completed and Transferred Out $2,213,640
Ending Work In Process $70,104
Total Costs $2,283,744
Explanation:
First, calculated the number of units completed and transferred to finished goods.
Number of units completed and transferred = Beginning Inventory Units + Units Started during the period - Ending Inventory Units
Number of units completed and transferred = 35,200 units + 661,000 units - 25,400 units
= 670,800 units
Calculation of Equivalent Units of Production with Respect to Raw Materials and Conversion Costs.
1. Materials
Ending Work In Process (25,400 × 100%) = 25,400
Completed and Transferred (670,800 × 100%) = 670,800
Equivalent Units of Production with Respect to Raw Materials = 696,200
2. Conversion Costs
Ending Work In Process (25,400 × 40%) = 10,160
Completed and Transferred (670,800 × 100%) = 670,800
Equivalent Units of Production in Conversion Costs = 680,960
Calculation of Total Unit Cost
Unit Cost = Total Costs ÷ Total Equivalent Units
1. Materials
Unit Cost = ($78,600 + $1,592,280) ÷ 696,200
= $2.40
2. Conversion Costs
Unit Cost = ($48,700 + $225,100 + $339,064 ) ÷ 680,960
= $0.90
3. Total Unit Cost
Total Unit Cost = Materials + Conversion Costs
= $2.40 + $0.90
= $3.30
Calculation of costs assigned to goods transferred out and in process.
Goods transferred out = Units completed and transferred × total unit cost
= 670,800 × $3.30
= $2,213,640
Units in Process = Material Costs + Conversion Cost
= (25,400 × $2.40) + (10,160 × $0.90)
= $70,104
On February 1, 2018, Wolf Inc. issued 10% bonds dated February 1, 2018, with a face amount of $270,000. The bonds sold for $323,440 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Wolf's fiscal year is the calendar year. Wolf uses the effective interest method of amortization.
Required:
1. Prepare the journal entry to record the bond issuance on February 1, 2018.
2. Prepare the entry to record interest on July 31, 2018.
3. Prepare the necessary journal entry on December 31, 2018.
4. Prepare the necessary journal entry on January 31, 2019.
Answer:
Required 1
Cash $323,440 (debit)
Bonds Payable $323,440 (credit)
Required 2
Interest Expense $12,938 (debit)
Bond Payable $12,938 (credit)
Required 3
J1
Interest Expense $12,961 (debit)
Bond Payable $12,961 (credit)
Interest accrued on Bond
J2
Bond Payable $12,938 (debit)
Cash $12,938 (credit)
Interest Cash outflow
Required 4
J1
Interest Expense $12,961 (debit)
Bond Payable $12,961 (credit)
Interest accrued on Bond
J2
Bond Payable $12,938 (debit)
Cash $12,938 (credit)
Interest Cash outflow
Explanation:
First, determine the coupon payments as follows :
FV = ($270,000)
PV = $323,440
N = 20
P/yr = 1
I = 8%
PMT = ?
Using a Financial Calculator, the annual coupon payments will be $27,042 ($12,938 semi-annually).
July 31,2018
Effective Interest Calculation
Effective Interest = $323,440 × 8% × 1/2
= $12,938
Pearsall Company's defined benefit pension plan had a PBO of $275,000 on January 1, 2021. During 2021, pension benefits paid were $45,000. The discount rate for the plan for this year was 11%. Service cost for 2021 was $88,000. Plan assets (fair value) increased during the year by $55,000. The amount of the PBO at December 31, 2021, was:
Answer:
$329,150
Explanation:
Calculation for the amount of the PBO at December 31, 2021
PBO/1/1 $265,000
Add Service Cost 80,000
Add Interest Cost 29,150
($265,000 x 11%)
Less Benefits Paid (45,000)
PBO 12/31 $329,150
Therefore The amount of the PBO at December 31, 2021, was: $329,150
A local taxi company advertises being able to make cabs available to riders within 5 minutes. They have recruited several cab drivers to ensure that they meet this promise. Which dimension of the customer utility function they are appealing to
Answer:
The correct answer is:
Timing
Explanation:
The utility function measures the level of satisfaction or the welfare of a consumer, as a function of the consumption of real goods or services. The dimensions of consumer utility function include; Fit, Timing, Location, performance, and price.
Fit: This has to do with the design of a product, satisfying a context-specific problem. That is the product "fits" the need of the consumer
Timing: This covers the length of time between when the consumer places an order to when the order arrives. A short timing is satisfying to the consumer. In this example, the timing of 5 minutes or comparatively ideal for cabs being available to riders.
Location: The location entails the extent of coverage within a country or region that the product can be accessed. Particularly in rural settings.
Performance: performance has to do with the efficiency of the product/service in the process of it being used
Price: price is the amount at which the product is made available to the consumers.
Question 9 of 10
How should an annual business license fee be recorded in a journal entry?
A. As a credit, because it is an increased liability
B. As a credit, because it creates equity
C. As a debit, because it is an increased expense
D. As a debit, because it is a loss
SNBMIT
Answer:
Explanation:
As a debit, because it is an increased expence
What is a premium in personal finance HEEEEELLPPP
Premium has multiple meanings in finance, with the first being the total cost to buy an option. A premium is also the difference between the price paid for a fixed-income security and the security's face amount at issue.
Source: Investopedia
Which activity combines inventory management, order processing, warehousing, material handling, and transportation
Answer:
Physical distribution.
Explanation:
In Business marketing, physical distribution can be defined as all the series of activities with respect to the supply of finished goods from production line (factory) to the end users or consumers.
Physical distribution is an activity which combines inventory management, order processing, warehousing, material handling, customer service, packaging, market forecasting, logistics and transportation.
Basically, physical distribution deals with the planning, organizing, implementation and control of the movement of goods and services in order to meet the demands of consumers.
Bren Co.'s beginning inventory at January 1, 2005 was understated by $26,000, and its ending inventory was overstated by $52,000. As a result, Bren's cost of goods sold for 2005 was:
Answer:
Change in COGS= $78,000 increase
Explanation:
We know that to calculate the cost of goods sold, we use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
If the beginning inventory is understated, it will increase the value of COGS.
If the ending inventory is overstated, the COGS increase.
Change in COGS= 26,000 + 52,000
Change in COGS= $78,000 increase
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Answer: its a baby. 2 hours
Explanation:
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Use the following information to prepare a multistep income statement and a classified balance sheet for Eller Equipment Co. for Year 1.
Salaries expense $122,000 Beginning retained earnings $61,100
Common stock 110,000 Warranties payable (short term) 6,500
Notes receivable (short term) 32,500 Gain on sale of equipment 19,000
Allowance for doubtful accounts 19,000 Operating expenses 65,000
Accumulated depreciation 66,000 Cash flow from investing activities 116,000
Notes payable (long term) 160,000 Prepaid rent 38,000
Salvage value of building 21,000 Land 95,000
Interest payable (short term) 6,000 Cash 41,000
Uncollectible accounts expense 45,000 Inventory 101,000
Supplies 6,500 Accounts payable 55,000 Equipment 243,000
Interest expense 36,000 Interest revenue 6,200
Salaries payable 68,000 Sales revenue 940,000
Unearned revenue 47,000 Dividends 20,000
Cost of goods sold 595,000 Warranty expense 9,200
Accounts receivable 108,000 Interest receivable (short term) 3,600
Depreciation expense 3,000
Answer:
Eller Equipment Co.
Income statement
Particular Amount($) Amount ($)
Sales revenue 940,000
Less: Cost of good sold (595,000)
Gross margin 345,000
Operating expenses
Salaries expenses 122,000
Operating expenses 65,000
Warranty expenses 9,200
Un-collectible account expenses 45,000
Depreciation expenses 3,000
Total operating expenses (244,200)
Operating income 100,800
Non-operating expenses
Interest revenue 6,200
Interest expenses (36,000)
Gain on sale of equipment 19,000
Total non-operating items (10,800)
Net Income $90,000
Balance Sheet
Assets Amount$
Current Assets
Cash 41,000
Accounts receivable 108,000
Less: Allowance for doubtful (19,000) 89,000
accounts
Merchandise inventory 101,000
Interest receivable 3600
Prepaid rent 38,000
Supplies 6,500
Notes receivable 32,500
Total current assets 311,600
Property Plant and Equipment
Equipment 243,000
Less: Accumulated depreciation (66,000) 177,000
Land 95,000
Total property plant and equipment 272,000
Total Assets 583,600
Liabilities and Stockholder Equity
Current liabilities
Account payable 55,000
Unearned revenue 47,000
Warranties payable 6,500
Interest payable 6,000
Salaries payable 68,000
Total current liabilities 182,500
Long-term liabilities
Notes payable 160,000
Total long-term liabilities 160,000
Stockholders equity
Common stock 110,000
Retained earning 131,100
Total stockholders equity 241,100
Total liabilities and stockholders equity $583,600
Workings
Retained earning = Beginning retained earning + Net income - Dividend
= 61,100 + 90,000 - 20,000
= 131,100
(D)
Life membership fees received by a club is
A. Revenue receipt
(B)
(C) Both (A) and (B)
(D)
Capital receipt
None of these
Answer:
(D) Capital receipt
Explanation:
The life membership fee is a one-time lump sum amount paid by a new member. It gives a member access to the club facilities for the rest of their lives. Life membership is treated as a capital receipt and added to the capital fund. It appears on the liabilities side in the balance sheet.
Life membership is not treated as income for a particular year because the one-time payments permit a member lifetime access to the club services.
What is the basic economic problem?
a
Creating stability in the stock market.
b
Making products available at places that are convenient for customers.
c
Being a competitive business in the marketplace.
d
Making choices about using limited resources to satisfy unlimited wants.
im on a test please help
( Please Help thank you.)
Franchisors in foreign countries must be aware of
A: Ease of communication
B: Shared currency Values
C. Political Risk
D: shared values and customs
Answer:
I think it's C but I'm not 100% sure.
Explanation:
Franchisors in foreign countries must be aware of political risks. Thus, the correct option is (C).
Economic problems, related legal systems, the lack of corruption, supply chain difficulties, and taxation must all be considered by franchisors.
A franchisor selecting a market in which to expand must have thorough market information as well as undertake a study of existing competitors in that area.
A corporation may choose to employ franchising as a marketing concept for business growth.
The vast majority of courts have ruled that franchisors may be held accountable for the actions of their franchisees and franchisee employees.
Therefore, the correct option is "C".
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A company purchased new furniture at a cost of $26,000 on September 30. The furniture is estimated to have a useful life of 5 years and a salvage value of $3,200. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the furniture for the first year ended December 31
Answer: Depreciation for 3 months = $1140.
Explanation:
In straight line method, Depreciation for full year = (Cost – Salvage value) ÷ useful life
Depreciation for full year = ($26,000 -$3,200 ) ÷ 5
= $(22800÷ 5)
= $ 4,560
Furniture was purchased on September 30, so depreciation will be calculated from October to December(3 months)
Depreciation for 3 months = Yearly depreciation x ([tex]\dfrac3{12}[/tex])
= $4,560 x (0.25)
= $1140.
Hence, Depreciation for 3 months = $1140.
Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals
a. Cash used for purchase of office supplies, $1,650
b. Cash provided from consulting to customers, $43,100
c. Cash used for purchase of mining equipment, $68,000.
d. Cash provided from long-term borrowing, $55,000
e. Cash used for payment of employee salaries, $23,500.
f. Cash used for payment of office rent, $11,500
g. Cash provided from sale of equipment purchased in c. above, $22,000
h. Cash used to repay a portion of the long-term borrowing in d. above, $37,500
i. Cash used to pay office utilities, $3,800
j. Purchase of company vehicle, paying $9,500 cash and borrowing $14,500
Required:
Calculate cash flows from investing activities. (List cash outflows as negative amounts.)
Answer:
Net cash used in investing activities = ($55,500)
Explanation:
Cash flows from Investing activities
Transaction Amount
Cash used for purchase of mining equipment -$68,000
Cash provided from sale of equipment +$22,000
purchased in c. above
Purchase of company vehicle. -$9,500
Net cash used in investing activities -$55,500
Cushenberry Corporation had the following transactions. 1. Sold land (cost $12,000) for $15,000. 2. Issued common stock at par for $20,000. 3. Recorded depreciation on buildings for $17,000. 4. Paid salaries of $9,000. 5. Issued 1,000 shares of $1 par value common stock for equipment worth $8,000. 6. Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200.
Required:
For each transaction above, (a) prepare the journal entry, and (b) indicate how it would affect the statement of cash flows using the indirect method.
Answer:
Entries are given
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
Sold land (cost $12,000) for $15,000.
Dr Cash 15,000
Cr Land 12,000
Cr Gain on Sale 3,000
Increase investing cash flows by 15,000. and 3000 gain will be deducted from operating activities
Issued common stock
Dr Cash 20,000
Cr Common Stock 20,000
Increase financing cash flows by 20,000
Recorded depreciation on buildings for $17,000.
Dr Depreciation Expense 17,000
Cr Accumulated Depreciation 17,000
This will not affect cash flow.
Paid salaries of $9,000.
Dr Salaries Expense 9,000
Cr Cash 9,000
Decrease operating activities cash flow by $9,000.
Issued 1,000 shares of $1 par value common stock for equipment
Dr Equipment 8,000
Cr Additional paid-in capital Common Stock 7,000
Cr Common Stock 1,000
It doesn't involve any cash however affects the company financial position so it will be recorded in schedule of non cash financing and investing activities
Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200.
Dr Cash 1,200
Dr Accumulated Depreciation 7,000
Dr Loss on Disposal 1,800
Cr Equipment 10,000
There would be an increased cash flow of $1,200 under investing activities.