Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, theysnap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breacheda. the merchant’s implied duty of inspection.b. the implied warranty of merchantability.c. no duty or warranty because Beginners Run knew nothing about the defect that madethe goods unsafe.d. no duty or warranty because consumers should reasonably expect to occasionally find a product that does not work as warranted.

Answer:

April 1

Dr.  Account receivable  $1,600

Cr.  Sales                          $1,600

April 10

Dr.  Cash                          $1,552

Dr.  Sales Discount          $48

Cr.  Account receivable  $1,600

Explanation:

Term 3/10, n/30 means there is a discount of 3% is available on payment of due amount within discount period of 10 days after sale and net credit period of 30 days.

According to given data

Sales = $1,600

As the payment is made within discount period, so discount will be availed

Discount  = $1,600 x 3% = $48

Payment = $1,600 - $48 = $1,552

Discount of $48 is an expense.

Answer:

The correct answer is letter "A": The trend between the present and future values of an investment.

Explanation:

Compounding is the process in which earnings of an investment are reinvested to earn more profits in a determined period of time. In other words, present values are used to convert them into future values expecting they will be higher. Compounding can also be defined as interest on interest.

To compute compounding figures it is necessary the interest rate that could be earned out of an investment and its duration and the present value of the investment in dollars quantity.

Thus, the trend between the present and future value of the investment remains useless for compounding.

Answer:

Existence of supplier clusters

Explanation:

Clusters increase productivity. This is because clusters include companies in the same industry or technology areas that share suppliers and distribution network. Meaning that companies withing their sphere can compete.

Several clusters serve as a driving force in regional economies. This clustering concept was popularized by Micheal Porter. A strong cluster can include the suppliers of raw materials and distributors and also primary producers, specialized services in finance, marketing, education, trade associations etc. Clusters can result in a lot of benefits such as increased productivity, rapid innovation and new business formation.

Answer:

$15,000 under applied

Actual overhead of $220,000 minus applied overhead of $205,000 (200,000/40,000 direct labor hours • 41,000 actual hours worked) equals 15,000 under applied

Explanation:

Answer:

The value of the treasury note is $ 876,205.93  

Explanation:

I simply discounted all relevant cash flows using the discount factor formula 1/(1+r)^N,where r is the yield to maturity divided by 2 as the interest is paid twice a year and N is the number of years of the bond 3, multiplied by number of interest payments in a  year,2.

Find attached for details.

Answer:

Peter's net property, plant and equipment is $700,000.

Explanation:

Net Property, plant, and equipment is the Carrying value of PPE. It is also known as the Book value of PPE. This is the value at which PPE is stated on the face of Statement of Financial Position.

The formula to calculate it as follows:

                    Cost - Accumulated Depreciation = Carrying Value

Simply put values:

1,500,000 - (250,000 + 550,000) = $700,000.

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Answer:

a. Business Analysis

Explanation:

Business analysis is the fourth stage a business undertakes when they are developing a product. It is at this stage that financial projections are made to see how feasible the product will be in the market. Marketing strategies are developed to effectively drive sales of the new product.

In this stage there is definition of the different requirements that needs to be met to achieve business goals and objectives.

Vistakon, the maker of Acuvue brand contact lenses, is working on a new product launch of Acuvue 3, which will provide 40% more moisture than Acuvue 2. They are projecting that 30% of Acuvue 3 sales will come from Acuvue 2.

Answer:

a. Business Analysis

Explanation:

Business analysis is a step in the different steps of a new product development process where the business attractiveness of the product is evaluated. This involves reviewing the sales, costs and profit projections for the new product.

Vistakon is trying trying to determine the cannibalization rate of Acuvue 3, this means they are trying to determine the percentage of acuvue 3's sales that represents a loss of sales of Acuvue. This therefore indicates they are reviewing the sales projections of Acuvue 3, which is a process of Business analysis.

Answer:

Part 1-a: The breakeven of the complete company is $375652.17

Part 1-b: The breakeven for the Chicago Office is $66857.14 while that of the Minneapolis office is $135000.

Part 1-c: The value of breakeven for the company is more than that of the Chicago and Minneapolis office.

Explanation:

Part 1-a

For the whole company

[tex]Contribution \,Ratio=\dfrac{Contribution\, Margin \times 100}{Sales}[/tex]

Here the Contribution Margin is $207,000

Sales is $450,000

So the contribution ratio is given as

[tex]Contribution \,Ratio=\dfrac{207000 \times 100}{450000}\\Contribution \,Ratio=46\%[/tex]

Now Fixed cost of the company is given as sum of the traceable fixed expenses and non-traceable expenses which are given as

[tex]Fixed \,Cost=Traceable\, Fixed\, Expenses+Non-traceable\, Fixed\, Expenses[/tex]

Here

Traceable fixed expenses are $100,800

Non traceable fixed expenses are 72,000

[tex]Fixed \,Cost=Traceable\, Fixed\, Expenses+Non-traceable\, Fixed\, Expenses\\Fixed \,Cost=100800+72000\\Fixed \,Cost=172800[/tex]

Now the Breakeven is given as

[tex]Breakeven=\dfrac{Fixed\,Cost}{Contribution\,Ratio}\\Breakeven=\dfrac{172800}{46\%}\\Breakeven=\dfrac{172800}{0.46}\\Breakeven=\$375652.17[/tex]

So the breakeven of the complete company is $375652.17

Part 1-b

For the Chicago office

[tex]Contribution \,Ratio=\dfrac{Contribution\, Margin \times 100}{Sales}[/tex]

Here the Contribution Margin is $63,000

Sales is $90,000

So the contribution ratio is given as

[tex]Contribution \,Ratio=\dfrac{63000 \times 100}{90000}\\Contribution \,Ratio=70\%[/tex]

Traceable fixed cost for Chicago are $46,800

Now the Breakeven is given as

[tex]Breakeven=\dfrac{Fixed\,Cost}{Contribution\,Ratio}\\Breakeven=\dfrac{46800}{70\%}\\Breakeven=\dfrac{46800}{0.70}\\Breakeven=\$66857.14[/tex]

So the breakeven of the Chicago office is $66857.14

For the Minneapolis office

[tex]Contribution \,Ratio=\dfrac{Contribution\, Margin \times 100}{Sales}[/tex]

Here the Contribution Margin is $144,000

Sales is $360,000

So the contribution ratio is given as

[tex]Contribution \,Ratio=\dfrac{144000 \times 100}{360000}\\Contribution \,Ratio=40\%[/tex]

Traceable fixed cost for Chicago are $54,000

Now the Breakeven is given as

[tex]Breakeven=\dfrac{Fixed\,Cost}{Contribution\,Ratio}\\Breakeven=\dfrac{54000}{40\%}\\Breakeven=\dfrac{54000}{0.40}\\Breakeven=\$135000[/tex]

So the breakeven of the Minneapolis office is $135000

Part 1-c

The sum of the breakeven for the Chicago and Minneapolis office is $66857.14+$135000=$201857.14

The value of breakeven for the company is $375652.17

As the value of breakeven for the company is more than that of the Chicago and Minneapolis office.

Final answer:

The companywide break-even point is $375,750, calculated by dividing total fixed costs by the contribution margin ratio. The Chicago office's break-even point is $66,861, and the Minneapolis office's break-even point is $135,000. The companywide break-even point is not equal to the sum of both offices' break-even points.

Explanation:

To calculate the companywide break-even point in dollar sales, we use the formula Break-even Point (BEP) = Total Fixed Costs / (Total Sales - Variable Costs). From the given information, total fixed costs are the sum of traceable fixed expenses and common fixed expenses not traceable to offices, which equals $100,800 + $72,000 = $172,800.

The total sales and variable costs are given as $450,000 and $243,000 respectively. Therefore:

To find the dollar amount of the break-even point, we multiply the BEP ratio by total sales:

The break-even point for each office is calculated separately using the same formula, including only the fixed costs traceable to that office.

For the Chicago office:

For the Minneapolis office:

The companywide break-even point is not equal to the sum of the Chicago and Minneapolis break-even points. When adding up the break-even points of both offices, we get $66,861 (Chicago) + $135,000 (Minneapolis) = $201,861, which is less than the companywide break-even point of $375,750.

Solution:

Let the size of old plant be x

New plant is 33% bigger than the old plant.

So,

Size of the new plant [tex]=x+(0.33 * x)[/tex]

= x + 0.33x = 1.33x

Cost of the old plant = $8 million

Capacity exponent = 0.90

Calculate the cost of new plant -

Cost of new plant = Cost of old plant * (Size of new plant/Size of old plant)capacity exponent

Cost of new plant =[tex]=\$ 8 \text { million } *(1.33 \mathrm{x} / \mathrm{x})^{0.90}[/tex]

Cost of new plant =[tex]\text { S8 million } *(1.33)^{0.90}[/tex] = $10.34 million

Thus,

The cost of building new plant is $10.34 million.

Final answer:

To find the cost for a fabrication plant 33% larger than a plant costing $8 million, the new plant capacity is calculated as $10.64 million. Due to the capacity exponent of 0.90, the cost increase is less than the capacity increase, resulting in a new cost of $10.248 million.

Explanation:

To find the cost of building a new fabrication plant that is 33% bigger than a similar plant that cost $8 million to build, we start by recognizing that this is a math problem involving economies of scale and the specific capacity exponent, which is 0.90 in this case. The capacity exponent is often used to determine how costs scale with production capacity.

First, we calculate the new size of the plant by increasing the similar plant size by 33%. Since the original plant cost $8 million, we find the increased capacity:
New Capacity = Original Capacity x (1 + Percentage Increase)
New Capacity = $8 million x (1 + 0.33)
New Capacity = $8 million x 1.33
New Capacity = $10.64 million  

However, due to the capacity exponent of 0.90, the cost increase will be less than proportional to the increase in capacity:
New Cost = Original Cost x (New Capacity / Original Capacity) ^ Capacity Exponent
New Cost = $8 million x (1.33) ^ 0.90
New Cost = $8 million x 1.281
New Cost = $10.248 million

Answer:  The managerial accountant at XYZ Company told her friend that the company expects to announce a major recall in a few weeks. The friend promptly sells all her stock in XYZ. The accountant violated  IMA statement of ethical professional practice standards of Competence.

Explanation:

The IMA statement of ethical professional practice standards of Competence states that each member has the responsibility to provide information that supports the decision and recommend something accurate, clear and timely.

The managerial accountant at XYZ company provided information that was not very accurate. Based on that information, his friend immediately sells his stock in XYZ company. So, in this case, the manager has not helped his friend in taking a viable decision.

Answer:

The correct answer is letter "C": Each batch of production, known as a job or lot.

Explanation:

Job order cost systems are used to accumulate the cost per unit of items that are different enough, each one having significant costs. Under this costing system each item produced is given its direct material costs, labor costs, and overhead. Clothing, food, and aircraft manufacturing companies use the job order cost system.

Unitary costs are accumulated per batch of productions under this type of costing system.

Final answer:

Costs in a job order cost system are accumulated for each job or lot, with total costs determined by the sum of all inputs multiplied by their factor payments. This system is suitable for tracking production costs of distinctive batches. Understanding economies of scale and the difference between fixed and variable costs is crucial in this context.

Explanation:

Under a job order cost system, costs are accumulated for each batch of production, known as a job or lot. This method is used to track the costs associated with producing a specific batch of products, rather than unit-by-unit or for entire departments. Each job may consist of a single item or a small batch of items, designed to be distinct from other jobs by its particular set of production requirements.

For every input, such as labor or materials, there's an associated factor payment, like wages or material costs. The total cost for producing a job is the sum of the amounts of each input required to produce that quantity of output multiplied by the respective factor payments.

In this context, understanding economies of scale is also necessary. As the quantity of output increases, the cost per unit typically goes down, which means larger production scales can be more cost-efficient.

When assessing costs, it's important to recognize the distinction between fixed costs, which are independent of output levels, and variable costs, which vary based on the production quantity.

Final answer:

The return on assets can be calculated by dividing the net income by the average total assets and expressing it as a percentage.

Explanation:

The return on assets can be calculated by dividing the net income by the average total assets and expressing it as a percentage.

Return on Assets (ROA) = Net Income / Average Total Assets

For General Motors (GM), to calculate the return on assets, you would need the net income and average total assets data from their financial statements.

Answer:

The correct answer is letter "A": Relative advantage.

Explanation:

American Professor E.M. Rogers (1931-2004) in his book "Diffusion of Innovation" (1962) defined Relative Advantage like the degree to which a consumer observes a new product enhanced than its substitute. Nowadays the concept of relative advantage denotes the degree in which customers perceive the benefits of a new product higher than existing competitors.

The adoption of new products will rely on the relative advantage they can provide to consumers.

Answer:True

Explanation:

A country over all level of interest rate should have impact on the financial account of balance of payment because the BOP is the sources and the use of foreign exchange.

Revenue and gross profit or loss are calculated using the percentage of completion method based on costs incurred and estimated total costs for each of Arrow Construction Company's fiscal years (2021, 2022, 2023). Journal entries would reflect the progression of the construction costs, billings, and revenue recognition.

Calculation of Revenue and Gross Profit/Loss

Using the percentage of completion method, the recognized revenue and gross profit or loss for each year would be calculated based on the costs incurred and the total estimated costs. Here's how to calculate it for each year:

2021:

Total costs incurred to date: $2,170,000

Total estimated costs: $2,170,000 + $4,170,000 = $6,340,000

Percentage of completion: $2,170,000 / $6,340,000 = 34.22%

Revenue recognized: 34.22% of $8,510,000 = $2,910,467

Gross profit: Revenue recognized - Costs incurred = $2,910,467 - $2,170,000 = $740,467

2022:

Total costs incurred to date: $2,170,000 + $2,670,000 = $4,840,000

Total estimated costs: $4,840,000 + $3,855,000 = $8,695,000

Percentage of completion: $4,840,000 / $8,695,000 = 55.68%

Revenue recognized: 55.68% of $8,510,000 = $4,736,028

Gross profit: Revenue recognized - Costs incurred to date = $4,736,028 - $4,840,000 = ($103,972) (loss)

2023:

Total costs incurred: $8,810,000

Total contract price: $8,510,000

Revenue recognized: $8,510,000 (full contract price as project is completed)

Gross profit: Revenue recognized - Costs incurred to date = $8,510,000 - $8,810,000 = ($300,000) (loss)

Journals entries for transactions and partial balance sheet presentations would follow the standard accounting format showing construction in progress, billings on construction contract, and construction costs, among other accounts.

1) Amount of Revenue and Gross profit or loss (2021,2022, and 2023) is $744,624, -$845,305 (Gross Loss), -$199,319 (Gross Loss)

2a) Journal entries for 2021 is (Record construction costs $2,170,000 , Record Billings $2,670,000 , Record cash collected $2,420,000)

2b) Journal entries for 2022 is (Record construction costs $2,670,000 , Record Billings $2,920,000, Record cash collected $2,645,000)

3a) Partial balance sheet for December 31, 2021 is $244,624

3b) Partial balance sheet for December 31, 2022 is $850,681

Percentage of Completion Method for Construction Contract:

Let's calculate the revenue and gross profit to be recognized in each year using the percentage of completion method:

1. Revenue and Gross Profit Calculation:

2021:

2022:

2023:

2. Journal Entries:

2021 Entries:

2022 Entries:

3. Balance Sheet Presentation:

As of December 31, 2021:

As of December 31, 2022:

Answer:

$6.29

Explanation:

Dividend is $1.31 per share

Decreased by 4%

Required return is 16%

Therefore:

Price = [$1.31 × (1 - .04)]/[.16 - (-.04)] = $6.29

Answer:

I should pay $10.92 per share for the stock today  as shown below

Explanation:

The maximum price a rational investor could pay for a share is given by the formula:

Po=Div/rate of return-growth rate

Po is the price to paid

Rate of return here is 16%,which is similar to return on equity

The growth rate of the share of the dividend is 4%

Po=$1.31/(0.16-0.04)

Po =$10.92

The price has factored in both the dividend yield and gains yield of the share.

dividend yield is the return earned by share through dividends

gains yield is another return earned by share through appreciation in its price in the market place-stock exchange

Total return on return on share is the sum of both.

Answer:

Fiduciary.

Explanation:

A fiduciary is known as a person or organization that acts on behalf of another person or persons to manage assets. Essentially, a fiduciary owes to that other entity the duties of good faith and trust. The highest legal duty of one party to another, being a fiduciary requires being bound ethically to act in the other's best interests.

A fiduciary might also be responsible for general well-being, but often the task involves finances, managing the assets of another person, or of a group of people, for example. Money managers, financial advisors, bankers, accountants, executors, board members, and corporate officers all have fiduciary responsibility.

Answer:

b. dynamic capability

Explanation:

The competence described in the question is a company's dynamic capability because it represents the company's ability to change its internal functions according to the dynamics of external enviroment.

A company with a high dynamic capability is able to assess the changes that the market is going through, and adpat itself to those changes. A company that lacks dynamic capability can easily be swayed by market changes, and lose market share, or even, disappear completely.

Answer:

The answer is A.

Explanation:

The price elasticity of demand is a little higher than 1.

This means it is price elastic. That is, the demand is sensitive to price. Why? -

1. The good has a lot of substitutes, meaning the bargaining power of buyers is high. Any increase in the price of the good will lead to customers switching to the substitutes.

2. Also, the good is also a luxury good and not a necessity. Luxury goods, unlike necessity goods are not essential. So an increase in price might see customers moving away.

If a demand is inelastic to price, price elasticity of demand will be less than one.

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Assume that the Assembly Department allocates overhead using a plantwide overhead rate based on machine hours.

The first thing that we need is the predetermined overhead rate. We weren't provided with this information, but I will give the formula and a small example to guide an answer:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

For example:

Estimated overhead= $200,000

Estimated machine hours= 35,000

Estimated manufacturing overhead rate= 200,000/35,000= $5.71 per machine hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Because it is a plantwide overhead rate, we need to sum the total machine hours required:

Machine hours= 2.5 + 0.5= 3 machine hours

Allocated MOH= 5.71*3= $17.13 per unit

Final answer:

To calculate the total overhead assigned to the product, the overhead rates for the Assembly and Finishing Departments are determined based on their respective allocation bases. These rates are then applied to the product's usage of machine hours and labor hours, resulting in a total overhead of $13.985.

Explanation:

To calculate the total overhead assigned to the product, we need to determine the overhead rates for both the Assembly and Finishing Departments and then apply these rates to the product's resource usage.

The Assembly Department allocates overhead based on machine hours (MH), while the Finishing Department allocates based on direct labor hours (DLH).

First, we calculate the overhead rates:

Next, we apply these rates to the product's use of department resources:

The total overhead assigned to the product is the sum of the overheads from both departments.

Therefore, Total Overhead = Assembly Overhead + Finishing Overhead = $2.75 + $11.235 = $13.985.

Answer:

Department of transportation (DOT)

Explanation:

HazMat(hazardous materials) are hazardous substances in quantities that may pose a high risk to health, property, and the environment. HAZMATs include substances such as as toxic chemicals, fuels, nuclear waste products, and biological, chemical, and radiological agents.

HazMat is a substance that may pose serious threat to property, life or the environment if such substances are not well stored, shipped or handled.

Answer:

Austin's Tavern should record $5,500 as rent expense at May 31.

Explanation:

When an amount is prepaid, it is recorded in the books by debiting prepaid expense (rent in this case) and crediting cash account. When the expense is incurred, the required entries are debit rent expense and credit prepaid rent.

If $13,200 was prepaid for the full year as at 1 January, as at May 31, expense incurred

= 5/12 × $13,200

= $5,500

Hence Austin's Tavern should record $5,500 as rent expense at May 31.

Answer:

Date                         Description                                Debit           Credit

31st Dec              Sales Revenue                               $4,500

                          Refunds Payable                                               $4,500

31st Dec           Inventory Estimated Returns             $2,900

                        Cost of Goods Sold                                             $2,900

Explanation:

First, the obvious facts about the question

Estate of returned merchandise = 5%

Sales revenue for the year = $90,000

Cost of goods sold = $59,000

Step 1: Sales Revenue is already $90,000 Credit entry (it is an income) and as such any return will have a debit entry to reduce the revenue as follows

Return = 0.05 x $90,000 = $4,500

This same refunds will also go into the refunds payable account as a current liability  (credit entry)

Step 2: The returns will also affect the inventory and cost of sales as follows

0.05 x $58,000 =  $2,900

This will increase the inventory 9debit side and reduce cost of sales credit side.

Journal Entries

Date                         Description                                Debit           Credit

31st Dec              Sales Revenue                               $4,500

                          Refunds Payable                                               $4,500

31st Dec           Inventory Estimated Returns             $2,900

                        Cost of Goods Sold                                             $2,900

The entry in the Journal to account for estimated returns from sales of merchandise will require adjustments of Sales Returns and Allowances and the Cost of Goods Sold. This is done by estimating 5% of the sales and 5% of the COGS which result to $4,500 and $2,550 respectively.

At the end of the year, John Photography Supplies estimated that 5% of the $90,000 worth of sold merchandise will be returned. This implies that the return is expected to be $4,500 (5% of $90,000). The Cost of Goods Sold (COGS) is $58,000 for the year. When accounting for the estimated returns, we would have two adjusting entries:

This adjust the sales revenue and the COGS downwards, thereby estimating the impact of the goods that are expected to be returned.

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Answer:

31.5%

Explanation:

Given from the question kd = 7.0 %

Tax rate = 35 %

P0 = $ 28.86

Growth g = 4.9 %

D1 = $ 0.94

First find the cost of common stock by

rS = D1/P0 + g

=0.94/$28.86 + 0.49

=0.523

= 52.3%

Finally, calculate the weighted average cost of capital WACC,

using rs= 0.523,

Tax rate =43% =0.43

Equity E 100% - 43% = 57% =0.57 and

kd=7.0 % = 0.07

so WACC = (D/A)(1 -­ Tax rate)kd+(E/A)rs

= 0.43(1 ­- 0.43)(0.07) + 0.57(0.523)

0.0172 + 0.298

= 0.315

= 31.5%

Answer:

Year end journal entries are given below in explanation

Explanation:

a. Company provided service to customer which means that company has earned revenue

Account                                             Dr                  Cr

Accounts Receivable                       2200

Sales/Revenue                                                        2200

b. Wages expense have incurred but are not paid yet. Thus, its Liability should be booked.

Wages Expense                                1200

Wages payable / Liability                                        1200

c. The company has taken loan from the bank. Interest due on the loan is 416 but are not paid yet.

Interest Expense                                416

interest Payable                                                       416

d.  The company had contract for lawn service. To book the expense of lawn service

Lawn Service Expense                        520

Lawn Service Payable                                                520

e. The company has also made some investment. $ 220 is earned on that investment. to book the non operating income

Interest revenue receivable                220

Interest revenue - Non operating income                   220

f. Salaries of Supervisor is due on  31 st December but are not paid yet.

Salaries Expense                                   920

Salaries payable                                                              920                              

Answer:

You have to identify which account will affect each transaction and if the nature is Debit or Credit:

a. Sales (C) $ 2,200 and Accounts Receivable (D) $ 2,200

b. Wages expenses (D) $ 1,200 and Wages payables (C) $ 1,200

c. Interes expenses (D) $ 416 and Interes payable (C) $ 416

d. Sales (C) $ 520 and Accounts Receivable (D) $ 520

e. Interes income (C) $ 220  and Other Accounts Receivable (D) $ 220

f. Salary expenses (D) $ 920 and Salaries payables (C) $ 920

Answer:

$1,810,000

Explanation:

Given that,

Cost of goods sold = $1,600,000

Inventory increases by  = $210,000

Ending balance in inventory = $455,000

Opening Balance of Inventory:

= Ending balance in inventory - Inventory account increased Compare to Beginning

= $455,000 - $210,000

= $245,000

Cost of Inventory purchased:

= Cost of Goods Sold + Ending Balance of Inventory - Opening Balance of Inventory

= $1,600,000 + $455,000 - $245,000

= $1,810,000

Answer:

A. the firm cannot exceed its internal rate of growth.

Explanation:

The internal growth rate is the highest level of growth that a business can achieve without any external financing. It is the level of business operations that the business can maintain on its own, and without issuing equity to gain funding.

The firm's working capital and expenses will vary directly with sales revenue.

This is a good measure of how start-ups can survive without outside funding.

Internal growth is used by businesses to maximise output from use of their processes. For example increasing efficiency of a companie's machinery to increase output.

Answer:

1. The budgeted cash payment for January selling and administrative expenses is $82,500.

2. The amount of utilities payable is $10,000.

3. The amount of depreciation expense the store will report on the income statement for year 1 is $60,000

Explanation:

1. Determine the amount of budgeted cash payments for January selling and administrative expenses.

Budgeted cash payment = Sales commissions + Rent + Miscellaneous

                                         = $50,000 + $30,000 + $2,500

Budgeted cash payment = $82,500.

Therefore, the budgeted cash payment for January selling and administrative expenses is $82,500.

2. Determine the amount of utilities payable the store will report on the January 31 pro forma balance sheet.

Since utilities are paid in the month after they are incurred, the amount of utilities payable is $10,000.

3. Determine the amount of depreciation expense the store will report on the income statement for year 1, assuming that monthly depreciation remains the same for the entire year.

Depreciation expenses for year 1 = $5,000 × 12 = $60,000.

Therefore, the amount of depreciation expense the store will report on the income statement for year 1 is $60,000.

Note that depreciation is not a cash expenses but just a recognition of the wear and tear of the asset. That is why it does not fall under any cash category above but to be reported in the income statement.

The budgeted cash payments for January selling and administrative expenses are $87,500. Utilities payable on the January 31 pro forma balance sheet is $10,000. Yearly depreciation expense is $60,000.

To determine the budgeted cash payments for January selling and administrative expenses, we sum up all the expenses except for utilities, which are paid in the month after they are incurred:

[tex]\[ Cash\ Payments = Sales\ Commissions + Rent + Depreciation + Miscellaneous \]\[ Cash\ Payments = \$50,000 + \$30,000 + \$5,000 + \$2,500 \]\[ Cash\ Payments = \$87,500 \][/tex]

So, the budgeted cash payments for January selling and administrative expenses are $87,500.

To determine the amount of utilities payable on the January 31 pro forma balance sheet, we simply take the utilities expense of $10,000 because it's paid in the month following its incurrence:

[tex]\[ Utilities\ Payable = \$10,000 \][/tex]

For the amount of depreciation expense the store will report on the income statement for year 1, assuming monthly depreciation remains the same for the entire year, we take the monthly depreciation and multiply it by 12:

[tex]\[ Yearly\ Depreciation\ Expense = Monthly\ Depreciation \times 12 \]\[ Yearly\ Depreciation\ Expense = \$5,000 \times 12 \]\[ Yearly\ Depreciation\ Expense = \$60,000 \][/tex]

So, the store will report $60,000 of depreciation expense on the income statement for year 1.

Answer: Debit Unearned revenue (liability) $2,500, Credit Revenue $2,500.

Balance in unearned revenue as at 31 January 2018 is $30,000 - $2,500 = $27,500.

Explanation: In the answer above, it was assumed that the sale of the annual subscriptions took place at the end of December 2017. If it had taken place at the beginning of December 2017, the balance in the unearned revenue would reduce by 2 months.

The subscriptions were recorded as a liability because the total amount was not earned when the sale transaction took place. Unwinding of the unearned revenue to revenue takes place at the time the subscribers get their magazine.

Therefore, monthly unwinding of unearned revenue to revenue would be $30,000 / 12 = $2,500. The adjusting entries Teenage Fanclub Printings would have raised when the initial sale took place would be: Debit Account receivable / Cash $30,000, Credit Unearned revenue $30,000. Monthly unwinding of unearned revenue will therefore be Debit Unearned revenue $2,500 Credit Revenue $2,500 till the revenue is fully recognized and the unearned revenue becomes nil.

The adjusting entry should be

Unearned revenue (liability) $2,500

         Revenue $2,500.

The Balance in unearned revenue should be $27,500

The adjusting entry is

Unearned revenue (liability) $2,500 ($30,000 / 12 months)

         Revenue $2,500

(being the adjusting entry is recorded)

here the liability is debited as it decreased while the revenue is credited as it increased.

Now the balance in the unearned revenue should be

= $30,000 - $2,500

= $27,500

Learn more about revenue here: https://brainly.com/question/24599521

Answer:

a. AT ACQUISITION DATE TOTAL   Parent      NCI

Capital stock    300   270           30

retained earnings   1650 1485 1650

goodwill       52050  46845 5205

investment    54000 51100 29000

b.Goodwill is allocated at 9:1 ratio

90% ; 10% given

Explanation:

The difference in these amounts is big, suspicions of error in typing amounts in the question. Even after the answer is in thousands

Original goodwill is calculated using the fair value of the consideration transferred plus the fair value of the noncontrolling interest, less the adjusted net assets at acquisition. It amounted to $50,000,000 for the Plaza Hotels acquisition of Stardust Casinos, with allocations of $45,000,000 to the controlling interest and $5,000,000 to the noncontrolling interest, following a ratio of 90:10.

Calculation of Original Goodwill and Its Allocation

The calculation of original goodwill in the context of a business combination, such as an acquisition, takes into account the fair value of the consideration transferred, the fair value of the noncontrolling interest, and the fair value adjustments for identifiable net assets of the acquire.

When Plaza Hotels acquired a 90 percent interest in Stardust Casinos, the goodwill was calculated based on the acquisition price, the fair value of the noncontrolling interest, and fair value adjustments.

The original purchase price for the 90% interest was $51,100,000, and the fair value of the noncontrolling interest for the remaining 10% was $2,900,000, leading to a total fair value of the business of $54,000,000 ($51,100,000 + $2,900,000).

The book value of Stardust's equity was $2,000,000, but adjustments were needed for items not reflected at fair value.

Plant and equipment were overvalued by $6,000,000 and needed to be reduced, while the previously unrecorded intangible assets valued at $8,000,000 were added.

Adjusted net assets of Stardust at acquisition were:
Book value of equity: $2,000,000

Less overvaluation of plant and equipment: $6,000,000

Addition for intangibles not previously recorded: $8,000,000

Adjusted net assets = $4,000,000 ($2,000,000 - $6,000,000 + $8,000,000). Original goodwill can then be calculated as follows:

Total fair value of Stardust ($54,000,000) - Adjusted net assets ($4,000,000) = $50,000,000.

This total goodwill is then allocated between the controlling and noncontrolling interests based on their ownership percentages:

Goodwill attributed to controlling interest (Plaza Hotels): 90% x $50,000,000 = $45,000,000

Goodwill attributed to noncontrolling interest: 10% x $50,000,000 = $5,000,000

The ratio of goodwill allocation between controlling and noncontrolling interests is 90:10.