Answer:
Choose the best and worst answer to the following question:
Suppose your supervisor returns from vacation and notices that the work area looks terrible. You also had the last two days off. He's angry and criticizes you for being careless and sloppy. This wasn't your fault.
What would you do?
Best answer: Let the coworkers responsible know that you had to take the heat.
worst answer: Tell him it wasn't your fault and not to criticize you unjustly.
Explanation:
Washington Company's employees earn $220 per day and are paid every Friday for a five-day work week. This year, December 31 is a Wednesday.
Required: Journalize the adjusting entry on December 31.
Answer:
Explanation:
The adjusting entry is shown below:
Wages and salaries Expense A/c Dr $660
To Wages and salary payable A/c $660
(Being the wages are adjusted)
The computation is shown below:
= Per day salary × number of days
= $220 per day × 3 days
= $660
So, the wages and salaries expense is debited for $660 and wages and salaries payable is credited for $660
To record the adjusting entry on December 31, the daily wage ($220) is multiplied by the number of unpaid days (2), which equals $440. The journal entry includes a debit to Salary Expense and a credit to Salary Payable by $440.
The subject matter of this question is related to accounting, specifically related to how to journalize an adjusting entry. In this scenario, Washington Company's employees earn $220 per day and they are paid on every Friday for a five-day work week. This year, December 31st is falling on Wednesday.
Since the payment is made on Friday, the company will have due salary for two days (December 31 & January 1st of next year). So, an adjusting entry needs to be made to account for these two days. This is essential to confirm with the accrual basis of accounting.
To calculate the value of the adjusting entry, multiply the daily wages by the number of unpaid days. Here, that would be $220 (daily wage) * 2 days = $440.
Now, we can proceed with the journal entry:
Debit: Salary Expense $440 (to record the cost of employee services)
Credit: Salary Payable $440 (to record the obligation to pay employees in the future)
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An investment that you are considering promises to pay $2000 semiannually for the next two years, beginning six months from now. You have determined that the appropriate opportunity cost (discount rate is 8%, compounded quarterly. What is the value of this investment?
Answer:
The present value is = $7325.48
Explanation:
Step 1: Know the formula for the Present Value of the investment
PV formula = PMT x [1- (1/(1+ r)^n)] /r
Where PMT = Annuity Amount
r = Discount Rate
n= number of years or period
Step 2: fill in the necessary figures for the formula
PMT= $2000
Semi-annually = 2000/2 = 1000
r= 8%, however, compounded quarterly = 8/4 (quarter) = 2% per quarter
n= 2 years... however since it is to be compounded quarterly, 2 x 4(quarterly compounding) = 8
Therefore, Present Value =
The semi- annual PMT, the 2% quarterly rate, the 8 for number of years will be used
PV= 1000 x [1- (1/(1+ 0.02)^8] /0.02
= 1000 x 7.32548
The present value of the investment is = $7325.48
The value of the investment is $3549.28.
Explanation:To calculate the value of the investment, we need to find the present value of each cash flow and sum them up. In this case, the investment promises to pay $2000 semiannually for the next two years, beginning six months from now. The appropriate discount rate is 8%, compounded quarterly.
To find the present value of each cash flow, we can use the formula:
PV = CF / (1 + r/n)^(nt)
Where:
PV = Present Value
CF = Cash Flow
r = Discount Rate
n = Number of times the interest is compounded per year
t = Number of years
Using this formula, the present value of each cash flow can be calculated as follows:
First cash flow: PV = $2000 / (1 + 0.08/4)^(4*0.5) = $1847.91Second cash flow: PV = $2000 / (1 + 0.08/4)^(4*1) = $1701.37The value of the investment, which is the sum of the present values of the cash flows, is $1847.91 + $1701.37 = $3549.28.
âCrabapples, Inc. purchases and sells boxes of dried fruit. The following information summarizes its operating activities for theâ year: Selling Expenses $ 9 comma 100 Merchandise Inventory on December 31 33 comma 500 Merchandise Inventory on January 1 46 comma 400 Purchases of merchandise 82 comma 000 Rent for store 12 comma 600 Sales commissions 7 comma 500 Sales revenue 164 comma 000 What is the cost per box of dry fruits if Crabapples sold 3 comma 000 boxes of dry fruit during theâ year?
Answer:
The cost of each box of dry fruit sold during the year is$18.3
Explanation:
The first step to calculating the cost per box of dry fruits is to determine the Cost of Goods Sold.
Cost of Goods Sold
= Opening Merchandise of Inventory January 1+ Purchases of Merchandise during the year - Ending Merchandise inventory on December 31
=-$46,400 + $42,000- $33,500
= $54,900 is the Cost of Goods sold.
Step 2: Calculate the cost of each box sold as required
The formula is The Cost of Goods Sold determined in step 1 / the number of boxes of dry fruits Crabapples sold during the year
=$54,900/3000 boxes
= $18.3
The cost of each box of dry fruit sold during the year is$18.3
A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price-demand relationship for this product is P= -0.25D + 250, where P is the unit sales price of the product and D is the annual demand. Use the data (and helpful hints) that follow to work out answers.
- Total cost = Fixed cost + Variable Cost
- Revenue = Demand X Price
- Profit = Revenue - Total Cost
Set up your graph with dollars on the y axis (between 0 and $70,000) and, on the x axis, demand D: (units produced or sold), between 0 and 1000 units.
a) Develop the equations for total cost and total revenue.
b) Find the breakeven quantity (in terms of profit and loss) for the product.
c) Find the profit that the company would obtain by maximizing it's total revenue and neatly graph the solutions
The equations for total cost and total revenue can be developed. The breakeven quantity can be found by setting the profit equation to zero. The profit that the company would obtain by maximizing its total revenue can also be calculated.
Explanation:a) The equation for total cost is TC = FC + (VC * D), where TC is the total cost, FC is the fixed cost, VC is the variable cost per unit, and D is the demand.
b) The breakeven quantity can be found by setting the profit equation to zero and solving for D. In this case, the breakeven quantity is the value of D for which Profit = 0.
c) To find the profit that the company would obtain by maximizing its total revenue, we can find the value of D that maximizes the revenue equation: Revenue = D * (P * D). This can be done by finding the maximum point of the revenue function.
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At the end of April, Cavy Company had completed Job 766 and 765. According to the individual job cost sheets the information is as follows:Job Direct Materials Direct Labor Machine HoursJob 765 $6,160 $1,848 22Job 766 10,944 3,456 64Job 765 consisted of 132 units, and Job 766 consisted of 192 units.Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $153 per hour.
a. Determine the balance on the job cost sheets for each job.Job 765 $Job 766 $
b. Determine the cost per unit at the end of April. Round to the nearest cent.Job 765 $Job 766 $
Answer:
a)
Job Direct Materials Direct Labor overhead Total Job cost
Job 765 $6,160 $1,848 $3,366 $11,374
Job 766 $10,944 $3,456 $9,792 $24,192
b)
For Job 765 = $86.167
For Job 765 = $126
Explanation:
Data provided in the question:
Job Direct Materials Direct Labor Machine Hours
Job 765 $6,160 $1,848 22
Job 766 $10,944 $3,456 64
Overhead rate = $153 per hour
Job 765 consisted = 132 units
766 consisted = 192 units
now,
Overhead = Machine Hours × Overhead rate
For Job 765 = 22 × 153
= $3366
For Job 766 = 64 × 153
= $9792
Total job cost i.e balance on the job cost sheets
= Direct Materials + Direct Labor + overhead
a)
Job Direct Materials Direct Labor overhead Total Job cost
Job 765 $6,160 $1,848 $3,366 $11,374
Job 766 $10,944 $3,456 $9,792 $24,192
b)
Cost per unit = [ Total job cost ] ÷ Total units
For Job 765 = $11,374 ÷ 132
= $86.167
For Job 765 = $24,192 ÷ 192
= $126
When resources are scarce, power differences across subunits are _________; when resources are plentiful, subunit power differences are ___________.
A.magnified, reducedB.reduced, magnifiedC.reduced, not affectedD.magnified, not affected
Answer:
The correct answer is letter "A": magnified, reduced.
Explanation:
Scarcity does not only represent individuals having to sacrifice some of their needs to fulfill others because resources are limited. Scarcity can also represent the reason for dispute between social levels. When resources are scarce and one social stratum has more access to it, differences will increase. The opposite happens when the resources are allocated properly between them: differences are likely to be reduced.
Which of the following results in higher inflation and higher unemployment in the short run? a. a more expansionary monetary policy.
Answer:
d. an adverse supply shock such as an increase in the price of oil
Explanation:
Supply shock is the occurrence of an unexpected event in the economy which impacted negatively on the cost of production and which also causes the short-run aggregate supply curve to shift inward or to the left.
The type of disturbance that shifts the short-run aggregate supply curve inward will give rise to inflation and unemployment because of fall in out and rise in the cost of production..
During the year just ended, Shering Distributors, Inc., had pretax earnings from operations of $490,000. In addition, during the year it received $20,000 in income from interest on bonds it help in Zig Manufacturing and received $20,000 in income from dividends on its 5% common stock holding in Tank Industries, Inc. Shering is in the 40% tax bracket and is eligible for a 70% dividend exclusion on its Tank Industries stock.
A. Calculate the firm's tax on its operating earnings only.
B. Find the tax and after-tax amount attributable to dividend and interest income.
b. Interest c. Dividend
Before-tax income $0 $0
Less exclusion 0 $0 Use the exclusion 70%
Taxable income $0 $0
Tax 40% $0 $0
After-tax amount $0
$0
â Compare, contrast, and discuss theâ after-tax amounts resulting from the interest income and dividend income calculated in parts b. and c. â(Select all the choices thatâ apply.) A. Theâ after-tax amount of dividendsâ received, $ 24 comma 165â, exceeds theâ after-tax amount ofâ interest, $ 21 comma 330â, due to the 50 % corporate dividend exclusion. B. Theâ after-tax amount of dividendsâ received, $ 21 comma 330â, exceeds theâ after-tax amount ofâ interest, $ 24 comma 165â, due to the 50 % corporate dividend exclusion. C. Since theâ after-tax amount of interest exceeds theâ after-tax amount ofâ dividends, this increases the attractiveness of stock investments by one corporation in another relative to bond investments. D. Since theâ after-tax amount of dividends exceeds theâ after-tax amount ofâ interest, this increases the attractiveness of stock investments by one corporation in another relative to bond investments.
Answer:
(D).
Explanation:
Shering's taxable income = Earnings before interest and tax(EBIT) + Interest income + Taxable Dividend Income
A. Tax on operating income only = $490000 × 40% = $196,000
Tax attributable to dividend and interest income = $516,000 × 40% less 490,000 × 40%
Tax attributable to dividend and interest income= $10,400
B. Interest $20,000
Dividend $20,000
Before tax income $490,000 + 20,000 + 20,000= $530,000
Taxable Income = $530,000 - Dividend excluded from taxation
Taxable Income= $530,000 - 70% of 20,000= $516,000
Tax at 40% on above = $516,000 × 40% = $206,400
After tax income= $516,000- 206,400= $ 309,600
In case of dividend, due to 70% exemption from taxation, only 30% of dividend is subject to tax i.e out of $20,000 receipts, only $6,000 is taxable, the tax on which is $2,400
Whereas in case of income from interest, the whole $20,000 is taxable at 40%. Tax on such income being $8,000
The net receipts in case of dividend thus would be, $20,000 - $2,400 = $17,600
Whereas in case of Interest, the after tax receipts would be, $20,000 - $8,000= $12,000
As can be seen, the correct option is (d) since the after tax amounts of dividends exceeds the after tax amount of interest, this increases the attractiveness of stock investments by one corporation in another relative to bond investments.
What needs to be noted though being, investment in stocks might appear favourable here, but such investment is also more riskier than investment in bonds which carry a fixed rate of interest and fixed term of principal repayment.
The tax on Shering's operating earnings is $196,000. The after-tax interest income is $12,000, and the after-tax dividend income is $17,600. Higher after-tax dividends make stock investments more attractive than bonds.
To address the question, we need to calculate the tax and after-tax amounts for Shering Distributors, Inc.
A. Tax on Operating Earnings:
The firm's tax on its operating earnings can be calculated as follows:
Pretax earnings from operations: $490,000Tax Rate: 40%Tax on operating earnings = 40% × $490,000 = $196,000
B. Tax and After-Tax Amount for Dividend and Interest Income:
b. Interest Income
Interest Income: $20,000Tax Rate: 40%Tax on interest income = 40% × $20,000 = $8,000
After-tax interest income = $20,000 - $8,000 = $12,000
c. Dividend Income
Dividend Income: $20,000Dividend Exclusion: 70%Exclusion Amount = 70% × $20,000 = $14,000
Taxable Dividend Income = $20,000 - $14,000 = $6,000Tax Rate: 40%Tax on taxable dividend income = 40% × $6,000 = $2,400
After-tax dividend income = $20,000 - $2,400 = $17,600
Comparison and Contrast
Since the after-tax amount of dividends ($17,600) exceeds the after-tax amount of interest ($12,000), this increases the attractiveness of stock investments by one corporation in another relative to bond investments due to the 70% corporate dividend exclusion.
Prepare a balance sheet from the following information. What is the net working capital and debt ratio?
Cash$ 50,000
Accounts receivable 42,700
Accounts payable 23,000
Short-term notes payable 10,500
Inventories 40,000
Gross fixed assets 1,280,000
Other current assets 5,000
Long-term debt 200,000
Common stock 490,000
Other assets 15,000
Accumulated depreciation 312,000
Retained earning ?
Answer:
Net working capital = $104,200
Debt ratio = 0.21
Retained earning = $397,200
Explanation:
The preparation of the balance sheet is presented below:
Assets
Current Assets
Cash$ 50,000
Accounts receivable $42,700
Inventories $40,000
Other current assets $5,000
Total current assets $137,700
Gross fixed assets 1,280,000
Less: Accumulated depreciation -$312,000
Net fixed assets $968,000
Other assets $15,000
Total assets $1,120,700
Liabilities
Current liabilities
Accounts payable $23,000
Short-term notes payable $10,500
Total current liabilities $33,500
Long-term debt 200,000
Total liabilities $233,500
Equity
Common stock 490,000
Retained earning $397,200 (Balancing figure)
Total equity $887,200
Total liabilities and owners equity $1,120,700
The computation is shown below:
Net working capital = Current assets - current liabilities
= $137,700 - $33,500
= $104,200
And, the debt ratio would be
= Total liabilities ÷ Total assets
= $233,500 ÷ $1,120,700
= 0.21
The balance sheet has been prepared with total assets amounting to $1,105,700 and total liabilities amounting to $233,500. The net working capital is calculated as $104,200 and the debt ratio stands at approximately 21.12%.
Explanation:First, we need to prepare the balance sheet. The Current Assets section is composed of Cash ($50,000), Accounts Receivable ($42,700), Inventories ($40,000) and Other Current Assets ($5,000). Adding these values, the total Current Assets is $137,700.
For the Non-Current Assets section, we have Gross Fixed Assets ($1,280,000) and Other Assets ($15,000), which makes the total Non-Current Assets equal to $1,295,000. Deducting Accumulated Depreciation of $312,000 from Gross Fixed Assets yields a Net Fixed Asset of $968,000. Non-Current Assets and Current Assets together add up to $1,105,700 in Total Assets.
The liabilities part consists of Accounts Payable ($23,000) and Short-Term Notes Payable ($10,500) which make up Current Liabilities equal to $33,500. There is also Long-Term Debt of $200,000. Current Liabilities and Long-Term Debt together make up Total Liabilities equal to $233,500.
Net Working Capital (NWC) is calculated by subtracting Current Liabilities from Current Assets, therefore NWC equals $137,700 - $33,500, which is $104,200 in this case.
Debt Ratio is calculated by Total Liabilities divided by Total Assets. Therefore, Debt Ratio equals $233,500 / $1,105,700 which is approximately 21.12%.
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Craig borrowed $700,000 on October 1, 2017 and is required to pay $720,000 on March 1, 2018. What amount is the note payable recorded at on October 1, 2017 and how much interest is recognized from October 1 to December 31, 2017? A) $700,000 and S0. B) $700,000 and $12,000. C) $720,000 and SO. D) $700,000 and $20,000.
Answer:
B) $700,000 and $ 12,000
Explanation:
The note payable is recorded on the borrowing date of October 01 2017 at its face value $ 700,000. The amount due on the maturity of the note on March 01 2018 is 720,000, thus the interest on the note is $ 20,000 for the 5 month period of the borrowing. (October 1 to March 1).
The recognition of the interest for the 3 month period October to December is calculated as under:
Total interest for 5 months $ 20,000
Interest for 3 months $20,000/5*3 = $ 12,000
So the answer is $ 700,000 and $ 12,000
Answer:
B lol have a good day
Explanation:
Present and future value tables of 1 at 9% are presented below. PV of $1 FV of $1 PVA of $1 FVAD of $1 FVA of $1 1 0.91743 1.09000 0.91743 1.0900 1.0000 2 0.84168 1.18810 1.75911 2.2781 2.0900 3 0.77218 1.29503 2.53129 3.5731 3.2781 4 0.70843 1.41158 3.23972 4.9847 4.5731 5 0.64993 1.53862 3.88965 6.5233 5.9847 6 0.59627 1.67710 4.48592 8.2004 7.5233 How much must be invested now at 9% interest to accumulate to $19,000 in two years?
Multiple Choice
$15,992.
$11,329.
$11,062.
$15,725.
Answer:
$15,992
Explanation:
The computation of the present value is shown below:
Amount or Future value = Present value × (1 + rate)^number of years
$19,000 = Present value × (1 + 0.09)^2
$19,000 = Present value × (1.09)^2
$19,000 = Present value × 1.1881
So, the present value would be $15,992
We simply applied the above formula so that the accurate value could come.
In order to defer deductions for manufacturing costs until the finished products are sold, Congress enacted rules specifying that the cost of raw materials, shipping costs, and any other indirect costs of manufacturing must be added to the cost of inventory.
What are these rules called?
Answer:
Uniform cost capitalization rules
Explanation:
In order to defer deductions for manufacturing costs until the finished products are sold, Congress enacted rules specifying that the cost of raw materials, shipping costs, and any other indirect costs of manufacturing must be added to the cost of inventory. These rules are called Uniform cost capitalization rules
High-Low Cost Estimation The Stone Company has observed that its utility cost is $5,000 when operating at a level of 20,000 machine hours per period. The utility cost drops to $4,000 when the operating level drops to 15,000 machine hours. Required: Estimate the utility cost for an operating level of 18,000 machine hours.
Answer:
$4,600
Explanation:
High-Low cost estimation is used to split a mixed cost into variable cost and fixed cost.
The first step is to determine the variable cost per unit with this formula
= High Activity cost - Low Activity Level cost
_____________________________________
High Activity Level (units) - Low Activity Level (units)
In this case, we can slot in the appropriate figure using this formula
= $5,000 - $4,000
__________________
20,000hrs - 15,000hrs
= $,1000
______
5000hrs
= $0.2hr
Using high-low cost estimation, the variable cost per machine hour is $0.2.
Now since total cost equals fixed plus variable cost, we can get our fixed cost by multiplying variable cost per machine hour with activity level and deducting the result from total cost given.
Using the high activity level (20,000), our fixed cost will be:
Fixed cost = Total cost - variable cost per machine hr (activity level)
Fixed cost= $5,000 - $0.2(20,000hr)
Fixed cost = $5,000- $4,000
Fixed cost =$1,000
Having gotten our fixed cost and variable cost per machine hour, we can estimate the total utility cost for 18,000 machine hours by using this formula:
y = a + b(x)
Where y is the total cost, a the fixed cost, b the variable cost per unit and x the activity level.
y = $1,000 + $0.2(18,000)
y = $1,000 + 3,600
y = $4,600.
The following transactions occurred during 2014. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 A building that cost $132,000 in 1997 is torn down to make room for a new building. The wrecking contractor was paid $5,100 and was permitted to keep all materials salvaged. Mar. 10 Machinery that was purchased in 2007 for $16,000 is sold for $2,900 cash, f.o.b. purchaser's plant. Freight of $300 is paid on the sale of this machinery. Mar. 20 A gear breaks on a machine that cost $9,000 in 2009. The gear is replaced at a cost of $2,000. The replacement does not extend the useful life of the machine but does make the machine more efficient May 18 A special base installed for a machine in 2008 when the machine was purchased has to be replaced at a cost of $5,500 because of defective workmanship on the original base. The cost of the machinery was $14,200 in 2008. The cost of the base was $3,500, and this amount was charged to the Machinery account in 2008. June 23 One of the buildings is repainted at a cost of $6,900. It had not been painted since it was constructed in 2010. Instructions Round to the nearest dollar.) Prepare general journal entries for the transactions.
Answer:
Here are your general entries:)
Profit and loss account $19,800
Accumulated depreciation $112,200
To Building $132,000
( Building torn down recorded)
Building torn down expense $5,100
To cash $5,100
(paid to contractor)
Cash $2,100
Accumulated depreciation $11,200
Profit and loss account $1,900
To machinery $16,000
(disposal of machine recorded)
Freight expense $300
To cash $300
(freight paid recorded)
Repairs of machinery $2,000
To cash $2,000
(New gear brake added to machinery)
Profit and loss account $1,400
Accumulated depreciation $2,100
To old base $3,500
(old base expensed out)
Machinery account $5,500
To cash $5,500
(New base constructed)
Depreciation of base $550
To accumulated depreciation $550
Paint of building expense $6,900
To cash $6,900
Explanation:
Addition of gear brake not added to cost of machinery because it does not extend the useful life of machine.
Aracel Engineering completed the following transactions in the month of June.
a. Jenna Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 of drafting equipment to launch the company.
b. The company purchased land worth $49,000 for an office by paying $6,300 cash and signing a long-term note payable for $42,700.
c. The company purchased a portable building with $55,000 cash and moved it onto the land acquired inb.
d. The company paid $3,000 cash for the premium on an 18-month insurance policy.
e. The company completed and delivered a set of plans for a client and collected $6,200 cash.
f. The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500.
g. The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days.
h. The company purchased $1,150 of additional office equipment on credit.
i. The company completed engineering services for $22,000 on credit.
j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,333 rent cost must be paid within 30 days.
k. The company collected $7,000 cash in partial payment from the client described in transaction g.
l. The company paid $1,200 cash for wages to a drafting assistant.
m. The company paid $1,150 cash to settle the account payable created in transaction h.
n. The company paid $925 cash for minor maintenance of its drafting equipment.
o. Jenna Aracel withdrew $9,480 cash from the company for personal use.
p. The company paid $1,200 cash for wages to a drafting assistant.
q. The company paid $2,500 cash for advertisements on the Web during June.
Prepare general journal entries to record these transactions
Answer:
Aracel Engineering Ltd.
Journal Entries
Sr. No. Accounts Debit Credit
a. Investments $100,000
Cash $ 100,000
a. Office Equipment $ 5000
Cash $ 5000
Purchase office Equipment
a. Drafting Equipment $ 60,000
Cash $ 60,000
Purchase Drafting Equipment
b. Land $ 49,000
Cash $ 6,300
Note Payable $ 42,700
Purchase Land
c. Building $ 55,000
Cash $ 55,000
Purchase Building
d. Premium for Insurance $ 3000
Cash $ 3000
Paid Cash for Insurance Premium
e. Cash $ 6200
Drafting Services A/c $ 6200
Received Cash for a set of plans (drafts) from a client
f. Drafting Equipment $ 20,000
Cash $ 9500
Notes Payable $ 10,500
Bought equipment for cash and notes payable
g. Account Receivable $ 14,000
Engineering Services $ 14,000
Engineering Services rendered on credit
h. Office Equipment $ 1150
Accounts Payable $ 1150
Office Equipment bought on credit
i. Account Receivable $ 22,000
Engineering Services $ 22,000
Engineering Services rendered on credit
j. Rent Expense $ 1333
Rent Payable $ 1333
Rent to be paid within 30 days
k. Cash $ 7000
Account Receivable $ 7000
Received partial payment as Cash for Engineering services
l. Wages $ 1,200
Cash $ 1,200
Wages Paid
m. Accounts Payable $ 1150
Cash $ 1150
Payment made for office equipment purchased on credit
n. Maintenance ( equipment) $ 925
Cash $ 925
Maintenance charges paid for equipment
o. Drawing Account $ 9,480
Cash $ 9,480
Withdrew cash for personal use
p. Wages $ 1200
Cash $ 1200
Paid wages
q. Advertisements $ 2500
Cash $ 2500
Paid advertisement charges
The journal entries to record these transactions are:
a. Dr Cash $100,000
Dr Office equipment $5,000
Dr Drafting equipment $60,000
Cr Common stock $165,000
($100,000+$5,000+$60,000)
( To record amount Invested in business)
b. Dr Land $49,000
Cr Cash $6,300
Cr Notes payable $42,700
(To record Purchase of land)
c. Dr Building $55,000
Cr Cash $55,000
(To building Purchased )
d. Dr Prepaid insurancye $3,000
Cr Cash $3,000
(To record Purchase of insurance policy)
e. Dr Cash $6,200
Cr Engineering fees earned $6,200
(To record fees received for engineering services)
f. Dr Drafting equipment $20,000
Cr Cash $9,500
Cr Notes payable $10,500
( To record drafting equipment purchased )
g. Dr Accounts receivable $14,000
Cr Engineering fees earned $14,000
(To record engineering services Completed)
h. Dr Office equipment $1,150
Cr Accounts payable $1,150
( To record office equipment purchased)
i. Dr Accounts receivable $22,000
Cr Engineering fees earned $22,000
(To record engineering services Completed)
j. Dr Equipment rental expense $1,333
Cr Accounts payable $1,333
(To record equipment rental expense incurred)
k. Dr Cash $7,000
Cr Accounts receivable $7,000
(To record cash collected on account)
l. Dr Wage expense $1,200
Cr Cash $1,200
(To record wages paid)
m. Dr Accounts payable $1,150
Cr Cash $1,150
( To record cash paid on account)
n . Dr Repairs expense $925
Cr Cash $925
( To record amount paid for repairs of drafting equipment)
o. Dr Dividends $9,480
Cr Cash $9,480
(To record dividends)
p. Dr Wage expense $1,200
Cr Cash $1,200
(To record wages paid )
q. Dr Advertisement expense $2,500
Cr Cash $2,500
(To record amount paid for advertisement)
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Hitzu Co. sold a copier (that costs $5,500) for $11,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 4% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $130 for materials taken from the repair parts inventory. These are the only repairs required in Year 2 for this copier.
1. How much warranty expense does the company report for this copier in Year 1?
2. How much is the estimated warranty liability for this copier as of December 31 of Year 1?
3. How much is the estimated warranty liability for this copier as of December 31 of Year 2?
4. Prepare journal entries to record (a) the copier’s sale; (b) the adjustment to recognize the warranty expense on December 31 of Year 1; and (c) the repairs that occur on January 5 of Year 2.
Answer:
Answer 1. Warranty expense to be recognized is ($11,000*0.04)=$440
Answer 2. Warranty liability at end of year one is $440
Answer 3. Warranty liability at the end of year two is ($440-$130)=$310
Answer 4.
Cash $11,000
To sales $11,000
(sale of copier recorded)
Warranty expense $440
To Warranty liability $440
(Warranty recorded at the end of year 1)
Warranty liability $130
To inventory $130
(Repairs done to copier)
Apex Fitness Club uses straight-line depreciation for a machine costing $23,860, with an estimated four-year life and a $2,400 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $2,000 salvage value.
Compute (1) the machineâs book value at the end of its second year and (2) the amount of depreciation for each of the final three years given the revised estimates.
The book value of the machine at the end of the second year is $12,630. The amount of depreciation for each of the final three years is $3,876.67.
Explanation:To compute the book value at the end of the second year, we need to calculate the depreciation expense for the first two years and subtract it from the initial cost of the machine. The depreciation expense per year is calculated by subtracting the salvage value from the initial cost and dividing by the estimated life of the machine. In this case, the depreciation expense per year is ($23,860 - $2,400) / 4 = $5,615. The depreciation expense for the first two years is $5,615 * 2 = $11,230. Therefore, the book value at the end of the second year is $23,860 - $11,230 = $12,630.
To calculate the amount of depreciation for each of the final three years using the revised estimates, we need to calculate the new depreciation expense per year for the remaining useful life of the machine. The new salvage value is $2,000, and the remaining useful life is three years. Therefore, the new depreciation expense per year is ($12,630 - $2,000) / 3 = $3,876.67. The amount of depreciation for each of the final three years is $3,876.67.
Elaine Romberg prepares her own income tax return each year. A tax preparer would charge her $170 for this service. Over a period of 15 years, how much does Elaine gain from preparing her own tax return? Assume she can earn 6 percent on her savings.
Answer:
$3,956.91
Explanation:
The future value of an annuity is determined by the following expression:
[tex]FV = P*(\frac{(1+r)^n-1}{r} )[/tex]
For annualdeposits of $170, at a 6 percent rate for 15 years, the future value is:
[tex]FV = 170*(\frac{(1+0.06)^{15}-1}{0.06})\\FV =\$3,956.91[/tex]
Elaine gains $3,956.91 from preparing her own tax return.
Elaine gains $455.94 by preparing her own tax return over a period of 15 years.
Explanation:To calculate how much Elaine gains from preparing her own tax return, we need to calculate the savings she makes each year by not hiring a tax preparer and then calculate the future value of those savings over 15 years. The amount she saves each year is $170. Assuming she can earn 6% on her savings, we can use the future value formula to calculate the total savings over 15 years.
The future value formula is:
FV = PV * (1 + r) ^ n
Where FV is the future value, PV is the present value (in this case the annual savings), r is the interest rate per period (6% or 0.06 in decimal form), and n is the number of periods (15 years). Plugging in the values, we get:
FV = $170 * (1 + 0.06) ^ 15 = $170 * 1.06^15 = $455.94.
So, Elaine gains $455.94 by preparing her own tax return over a period of 15 years.
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Star Repairs Co. does all the repair work for a medium-sized manufacturer of handheld computer games. The games are sent directly to Star, and after the games are repaired, Star bills the game manufacturer for cost plus a 20 percent markup. In the month of February, purchases of parts (replacement parts) by Star amounted to $97,000, the beginning inventory of parts was $38,500, and the ending inventory of parts was $15,250. Payments to repair technicians during the month of February totaled $52,500. Overhead incurred was $121,000. a. What was the cost of materials used for repair work during the month of February? b. What was the prime cost for February? c. What was the conversion cost for February? d. What was the total repair cost for February?
Answer:
a. What was the cost of materials used for repair work during the month of February?
To find this figure, we add the purchased replacement parts value with the beginning inventory parts value, and substract the ending inventory parts.
Cost of materials = $97,000 + $38,500 - $15,250
= $120,250
b. What was the prime cost for February?
The prime cost is the sum of cost of materials and cost of labor.
Prime cost = $120,250 + $52,500
= $172,750
c. What was the conversion cost for February?
Conversion cost is the sum of the cost of labor and overhead.
Conversion cost = $52,500 + $121,000
= $173,500
d. What was the total repair cost for February?
The total repair cost is the sum of parts cost, labor costs, and overhead.
Total repair cost = $120,250 + $52,500 + $121,000
= $293,750
One result of globalization is that countries, businesses, and people become increasingly interdependent. a. True b. False
Answer:
The Given Statement is True
Explanation:
It is true that globalization causes the businesses, countries and people to become increasingly interdependent. Globalization means operating internationally which causes the people, businesses and the countries to depend on each other. Globalization is also used to describe the increasing interdependence of countries, people and businesses.
Type ________ is designed to precisely represent numbers with decimal points, especially monetary amounts. Group of answer choices
Answer:
The correct answer is letter "B": decimal.
Explanation:
Type decimal is used to represent fractions in the decimal system using commas or decimal points -two numbers after the comma or point- and that tends to round their numeric value to the next numeric value to keep a uniform registry among different quantities.
________ company emphasizes its home country culture throughout its operations, and it tends to staff key positions abroad with expatriates from its home country operations.
A. A polycentric
B. A geocentric
C. An ethnocentric
Answer:
The correct answer is letter "C": An ethnocentric.
Explanation:
An ethnocentric company is the type of organization that promotes the culture of its own culture among employees and focuses on providing local workers with the best opportunities possible so they can be competitive. These firms have a nationalistic approach and have the main goal of contributing to their country's development.
A receivable classified as current on the statement of financial position is expected to be collected within:________a. The current operating cycle.b. 1 year.c. The current operating cycle or1 year, whichever is longer.d. The current operating cycle or1 year, whichever is shorter.
Answer:
c. The current operating cycle or 1 year, whichever is longer.
Explanation:
As we know that
Current assets are comprised of cash & cash equivalents, inventory, account receivable, prepaid insurance, short term investment, and other current asset. These current asset is also known as the liquid asset that determines that these item would be converted into cash within one year
And the operating cycle would be the time between the material purchase and actual cash received.
So, The operating cycle = Days inventory outstanding + days sale outstanding
where,
Day inventory outstanding = (Beginning inventory + ending inventory) ÷ cost of goods sold × number of days in a year
Day sale outstanding = (Beginning Accounts receivable + ending Accounts receivable) ÷ Net sales × number of days in a year
Therefore, The collection period would be the maximum of the current operating cycle or 1 year.
Which of these is an example of "serving the bottom of the pyramid"? a. Car-a-Go-Go Inc. is an MNC that specializes in luxury cars. To penetrate into new markets, they offered incentives to wealthy citizens of other countries to buy their vehicles and expand their footprint. b. Radical Computer Corp. is a multinational computer company that acquires resources from all over the world. They found that in many of the countries they get their materials, the citizens have little to no internet access and cannot afford computers. They decided to build highly affordable computers and install a wireless infrastructure to assist the poorest in these countries in getting online. c. HappyTime Silicon provides much needed silicon to the technology industry. They are continually finding new sources of silicon and expanding their business globally. d. Righteous Burgers is a fast food organization that is opening stores all over the world with their big expansion push. They have meticulously studied the countries where they will open new restaurants and have catered to the culture of each country individually to assist in brand recognition and sales.
Answer:
Option B is Correct.
Explanation:
Serving the bottom of the pyramid means carrying in goods that are inexpensive by that class of the budget where individuals cannot afford luxuries like several advanced countries. They cannot afford high charges and would exploration for something affordable. Among the given examples Radical computer corp. which definite to build reasonable computers and install wireless arrangement to assist the humblest in getting these amenities which they generally cannot afford serves as an example of attending the bottom of the pyramid. Hence the answer is B
Borghia Pharmaceuticals has $1 million allocated for capital expenditures. a. Which of the following projects should the company accept to stay within the $1 million budget? b. How much does the budget limit cost the company in terms of its market value? The opportunity cost of capital for each project is 11%. Borghia Pharmaceuticals Investment NPV IRRProject ($ Thousands) ($ Thousands) (%)1 300 66 17.22 200 -4 10.73 250 43 16.64 100 14 12.15 100 7 11.86 350 63 187 400 48 13.5
Answer:
Please refer below the answer in detail
Explanation:
a)
With a limited budget, the firm will first pursue projects with the highest return, and the allocate the remaining capital to the project with the second highest return, and so on until all capital is fully allocated. Based on the information, Project 6 has the highest return, followed by 1 and 3. These three projects together will cost:
350,000 + 300,000 + 250,000 = $900,000
After those three projects, the firm will have $100,000 left. The best out of remaining project is 7, but it costs 400,000, which the firm cannot afford. The best affordable project is 4, which offers a return of 12.1%. Hence, the firm should spend the remaining 100,000 on project 4.
b)
The budget limit constraints the firm to give up project 7, which offers a NPV of $48,000. The firm is forced to choose project 4, which has a NPV of $14,000.
Thus the lost in market value of the firm = 48,000 - 14,000 = $34,000.
The projects that should be accepted are 1, 3, 4, and 6. The budget limit costs the company a loss of $34,000.
What is an investing decision?Investing decision refers to the rational decision regarding an investment based on its profitability and returns.
The investing decisions if taken on the basis of NPV, the project with higher NPV are selected. And on the other hand, if IRR is taken as the base for investing decisions, the projects with higher IRR are preferred.
Based on the above statement, the projects 1,3,6, and 7 give the highest NPV. But the budget is up to $1 million, the decision should be taken rationally.
Hence the projects 1,3, and 6 will be chosen. The total investment in these projects will be $9 million.
The company can invest remaining 1 million in either 4 or 5. The NPV of project 4 is higher therefore it should be taken.
Hence the projects invested are 1,3,4, and 6.
The cost company incurred on investing in project 4 rather in 7 is the opportunity cost.
The loss will be difference in NPV of both the projects that is $34,000.
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You have found an asset with 12.60 percent arithmetic average return and a 10.24 percent geometric return. Your observation period is 40 years. What is your best estimate of the return of the asset over the next 5 years? 10 years? 20 years?
Solution:
In years Best estimate of return Working note
5 12.36% ((5-1)/(40-1)*0.1024)+((40-5)/(40-1)*0.126)
10 12.06% ((10-1)/(40-1)*0.1024)+((40-10)/(40-1)*0.126)
20 11.45% ((20-1)/(40-1)*0.1024)+((40-20)/(40-1)*0.126)
The formula for the return on assets is calculated by dividing the net income by the total average assets. The profit margin and total asset sales can also be represented as a consequence of this ratio. For the calculation of the total asset return, either formula may be used.
Small Company was liquidated in the current year by Parent Company, its sole shareholder. Parent received the following assets on June 15 pursuant to the liquidation: Basis to Fair Small Market Value Cash $100,00o$100,000 Accounts receivable 40,000 40,000 Plant assets (net) 70,000 90,000 Land (mortgage on land $40,000)90,000 110.000 Total $300,00o$340,000 Also pursuant to the liquidation, Parent assumed the mortgage of $40,000 on the land. Parent Corporation's basis in Small common stock is $205,00O. What are the amount and the character of the gain or loss Parent must recognize from the liquidation? $95.000 capital gain. KE $135.000 capital gain. IN $340.000 dividend
Answer:
$95,000 Capital Gain
Explanation:
First, note that during liquidation, the fair market value should be used for the valuation of assets
Step 1: Calculate the Net Assets taken over at Fair Market Value
Total Assets at the Market Value = $340,000
Subtact: Liabilities (land Mortgage) = ($40,000)
The Net Asset at Fair market value = $300,000
Step 2: Calculate the Capital Gain or loss from the Liquidation
fair Value of Net Assets Taken Over = $300,000 (from step 1)
Subtract: The Common stock of Small Com. = ($205,000)
The Capital Gain = $95,000
Carlton has ordered a digital watch from an e-commerce Web site. He wants to track the shipment details to estimate the delivery of the product. In the context of procurement management, identify the process that helps Carlton to track his watch shipped by the provider.
Answer:
Control
Explanation:
Procurement management refers to the way in which a company buys products or services from suppliers. This involves establishing the specifications for the items that need to be purchased, the selection of the supplier that can provide it, negotiate the conditions with the supplier, control the process of delivery and define measures for evaluating the whole process. According to this, the process that helps Carlton to track his watch shipped by the provider is the control process as it refers to how the procurement department does the follow up with the supplier to make sure that the items are delivered according to the terms that were established which is what Carlton needs to do.
How can a system administrator meet this requirement?
Sales representatives at Universal Containers perform the initial steps in the lead qualification process and sales managers complete the final qualification steps. Universal Containers' requirements include those listed below.Sales managers can access all lead status values.Sales representatives can only access the first three lead status values.Sales representatives cannot access the final two lead status values.
A. Create two separate lead page layouts.
B. Create two separate lead processes and record types.
C. Use field-level security to restrict access to the lead status values.
D. Create a validation rule to prevent lead conversion.
Create two separate lead page layouts
Explanation:
Lead page layout can be created by using design manager and then choose a page layout and then the create page layout then we must select the master page select the content type and then choose and continue
Layout defines the fields in which the user can view and edit the fields give the description about the objects they can create and edit the fields accordingly. It contains the visual force page the buttons and the related lists
how is the current huge volume of structured and unstructured data sets impacting organizations
Answer and explanation:
Structured and unstructured data are part of the concept of Big Data that describes huge amounts of information being handled by companies in regards to their operations. Even if they are opposite, structured and unstructured data can help firms to gather information from different departments of the company methodically or without a certain order that can lead managers to make better decisions.