Answer:
Skidmore Music Company
For the month March
Cash basis Income Statement
$
Sales 13,800
Cost of Goods Sold 1,700
Gross Income 12,100
Wages Expense (720)
Operating Income 11,380
Accrual basis Income Statement
$
Sales 16,700
Cost of Goods Sold 4,900
Gross Income 11,800
Wages Expense (720)
Utility Expense (280)
Operating Income 10,800
For the cash basis income statement, Skidmore Music Company's net income is $9,980. On the accrual basis, which includes all revenues earned and expenses incurred, the net income is $8,600. Deposits for future orders are not considered revenue for March.
Explanation:Completing the Income Statements for Skidmore Music CompanyFor the cash basis income statement, we record revenues when cash is received and expenses when cash is paid. Here is the calculation:
Cash Basis Net Income = Revenue - Expenses = $10,700 - $720 = $9,980.
For the accrual basis income statement, revenues are recorded when earned, and expenses are recorded when incurred, regardless of cash flow. Here's the breakdown:
Accrual Basis Net Income = Revenue - Cost of Goods Sold - Expenses = $16,700 - $7,100 - $720 - $280 = $8,600.
The deposit received for future orders (d) is not recognized as revenue in March for either statement, as the service (delivery of instruments) is not yet rendered.
Suppose we use demand and supply on the labor market, to analyze the hiring and employment of workers by businesses. The price is the wage and the quantity is the number of people working. In the labor market, a. the demand curve shows the demand for jobs by workers, and the supply curve shows the supply of jobs by businesses. b. the demand curve shows the demand for labor by businesses, and the supply curve shows the supply of labor by people. c. the demand curve shows the consumer demand for products that workers produce, and the supply curve shows business supply of products that workers produce. d. the demand curve shows the business demand for products that workers produce, and the supply curve shows consumer supply of products that workers produce.
Answer:
b. the demand curve shows the demand for labor by businesses, and the supply curve shows the supply of labor by people.
Explanation:
Labor market is any arrangement that brings businesses, government and other economic unit seeking to get the best employees at the best price (demand for labor) into contact with those people seeking for paid jobs (the supplier of labor) for the purpose of entering into an employment contract.
The job seekers which represents the household possess some skills that is being demanded by the firms in the labor market. The job seekers is the supplier of skills while the firm demands for the skills.
The demand curve shows the demand for labor by businesses, and the supply curve shows the supply of labor by people in the labor market.
Explanation:The answer to the question is option b. the demand curve shows the demand for labor by businesses, and the supply curve shows the supply of labor by people.
In the labor market, businesses (employers) demand labor, and the demand curve shows the quantity of labor businesses want to hire at different wage rates. On the other hand, individuals (people) supply labor, and the supply curve shows the quantity of labor people are willing to provide at different wage rates.
Changes in wage rates will result in movements along the demand and supply curves, affecting the quantity of labor demanded and supplied in the market.
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The balancing test: a. is one applied in supremacy issue cases. b. is one applied in state regulation of interstate commerce. c. involves the exercise of state taxation powers. d. none of the above
Answer:
b. is one applied in state regulation of interstate commerce.
Explanation:
In this context, the clause of commerce of constitutional origin, imports a legal center of imputation of powers in favor of the Federal State, or what is the same, of restriction for the premises, with an unimaginable scope, because in it - as we will see - It fits all assumptions of economic activity, whether heavily intervened by the State, or, where appropriate, openly liberalized. So that all commercial activity, whatever its state regulation, is framed in the assumptions of this device. But it is more, in her the regulation of all current public service or that in the future could be created is inserted.
Normally it is pronounced that there are as many different forms of federalism as countries ascribe to this particular form of state, which is determined by the dissimilar expansion of powers between each of the structures that comprise it, central and local. In some, more centralized ones, the balance of the distribution of competences is inclined towards the side of the central State, while in others, more peripheral, it is towards the subunits that conform it, and this is called the balancing test.
Campbell Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows: Expected Costs Home 1 Home 2 Home 3 Direct labor $ 78,000 $ 95,000 $ 176,000 Direct materials 92,000 149,000 193,000 Assume Campbell needs to allocate two major overhead costs ($52,350 of employee fringe benefits and $30,380 of indirect materials costs) among the three jobs. Required Choose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. (Round "Allocation rate" to 2 decimal places.)
Answer:
The driver for employees fringe benefits is direct labor costs whereas the driver for indirect material costs is direct material costs
The total cost of each home is as follows:
Home 1 $188140
Home 2 $268860
Home 3 $408910
Explanation
Find the breakdown of the costs in the attached excel file.
Waterway Industries buys a delivery van with a list price of $60000. The dealer grants a 13% reduction in list price and an additional 1% cash discount on the net price if payment is made in 30 days. Sales taxes amount to $860 and the company paid an extra $760 to have a special device installed. What should be the recorded cost of the van?
Answer:
Cost of the VAN $53.298
Explanation:
We have to enter the van as the cost for a cash purchase and all other neccesary cost to get the van ready for use and in company's possesion.
The financing cost (interest) should be excluded as are not part of the cost the company can chose to take them or not.
list x reduction = invoice
invoice less discount = cash price
60,000 x (1 - 0.13) x (1 - 0.01) = 51.678
to this, we add up the sales tax and the extra cost for the device
51,678 + 860 + 760 = 53.298
If supply and demand are neither perfectly elastic nor inelastic (i.e. supply slopes upward and demand slopes downward), what will be the effect of a tax of $10 on the market for luxury purses that sell for $500? A. The market price of purses will increase but by less than $510 because consumers and producers will share the tax burden B. The market price of purses will not increase (it will remain at $500) since the tax was placed on producers only. C. The market price of purses will increase to more than $510 because producers will take the opportunity to recover all the tax revenue as well as a little extra D. The market price of purses will increase to $510 because of the tax ($500+ $10 tax $510)
Answer:
D. The market price of purses will increase to $510 because of the tax ($500+ $10 tax $510)
Explanation:
Tax of $10 on the luxury purses is a luxury tax.
A luxury tax is a tax that is charged as a percentage of the price, i.e. an ad valorem tax, on goods and services that considered not to be essential.
A luxury tax is a type of indirect tax and its effect is to increase the price of the commodity making the final consumer who buys the good to be the only one to bear the burden of the tax.
Therefore, a tax of $10 on luxury purses is equivalent to a 2% ad valorem tax and this will make the market price of purses to increase to $510 because of the tax ($500+ $10 tax $510).
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A corporation is considering the purchase of an interest in a real estate syndication at a price of $75,000. In return, the syndication promises to pay $1,000 at the end of each month for the next 25 years(300 months). If purchased, what is the expected internal rate of return, compounded monthly? How much total cash would be received on the investment? How much is profit and how much is return of capital?
Answer:
IRR 1.50%
It will receive 300,000 dollars when:
250,000 is return of capital and 50,000 will be considered profit.
Explanation:
1,000 x 300 months = 300,000 dollars
The IRR will make the payment match the present value of the $250,000 principal
That will be the yield of the investment.
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 1,000.00
time 300
rate 0.001251129 ( we solve for the rate using excel goal seek or a financial calcualtor
[tex]1000 \times \frac{1-(1+0.00125112927898874)^{-300} }{0.00125112927898874} = PV\\[/tex]
PV $250,000.0000
Now, as this are monthly payment we multiply by 12 to get the annual convertible rate:
0.001251129 x 12 = 0.015013551
rate = 1.50% per year
The total cash received on the investment would be $300,000. The return of the capital is $75,000, and therefore the profit is $225,000. We don't have enough information to accurately calculate the Internal Rate of Return (IRR).
Explanation:The Internal Rate of Return (IRR) for an investment is a discount rate that makes the net present value (NPV) of all cash flows (both incoming and outgoing) from a particular project equal to zero. We don't have enough information in the question to calculate the IRR here, but it's typically found using an iterative numeric method. The total cash received on this investment would be $1,000 times 300 months, which is $300,000. The return of capital, or the original amount invested, is $75,000. Profit can thus be calculated by subtracting the original investment from the total return- so, $300,000 minus $75,000, equals $225,000.
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Highlands Company uses the weighted-average method in its process costing system. It processes wood pulp for various manufacturers of paper products.
Data relating to tons of pulp processed during June are provided below:
Percent Completed Tons of Pulp Materials Labor and Overhead Work in process, June 1 20,000 90% 80% Work in process, June 30 30,000 60% 40% Started into production during June 190,000
Required:
1.Compute the number of tons of pulp completed and transferred out during June.
2.Compute the equivalent units of production for materials and for labor and overhead for June.
Answer:
1. 180,000
2. Material 198,000
Labor OH 192,000
Explanation:
A. calculation The number of ton pulp manufactured.
Particular Unit
Work in progress on June 1 20,000
Add: production during the month 190,000
Total process unit 210,000
Less: work in progress on June 30 30,000
Total unit manufacture and transfer 180,000
B. Calculation of Equivalent units.
Particular Materials Labor and Overhead
Total unit produced 180,000 180,000
Add: Work in progress
Material (30000*60%) 18,000
Labor and OH (30000*40%) 12,000
Equivalent production 198,000 192,000
At Dwight Incorporated, total fixed and variable costs are $420,000 at a production level of 130,000 units. The company has total fixed costs of $225,000. The variable cost per unit at 200,000 units is ______.
Answer:
$1.5
Explanation:
Variable costs are the expenses that change with the production level. They increase as output increase and decrease as production decline.
Fixed cost remains constant throughout the period.
For Dwight: Total fixed and variable costs are $420,000 at 130,000 production levels. If fixed costs is $225,000, then the variable cost will be
=$ 420,000- $225,000
=$195,000
Variable cost at 130,000 units are $195,000
total cost divided by units produced
variable cost per units = 195,000/130,000
=$1.5
At 200,000 units fixed will remain at $225,000 but variable cost rate will be $1.5
Answer:
The variable cost per unit at the 200,000 units amounts to $300,000.
Explanation:
Computing the variable cost is as:
Total fixed and variable cost = Fixed cost + Variable cost
$420,000 = $225,000 + Variable cost
Variable cost = $420,000 - $225,000
Variable cost = $195,000
Now,
we will compute the variable cost per unit which is as follows:
Variable cost per unit = Variable Cost / Units
= $195,000 / 130,000
= $1.5
Therefore, the variable cost per unit is $1.5
So, for 200,000 units it will be:
= Variable cost per unit × Units
= $1.5 × 200,000
= $300,000
Suppose that the total benefit and total cost from a continuous activity are, respectively, given by the following equations:
B(Q) = 100 + 36Q – 4Q2 and C(Q) =80 + 12Q.
(Note: MB(Q) = 36 – 8Q and MC(Q) = 12.)
Instructions: Use a negative sign (-) where appropriate.
a. Write out the equation for the net benefits.
N(Q) = + Q + Q2
b. What are the net benefits when Q = 1? Q = 5?
Net benefits when Q = 1:
Net benefits when Q = 5:
c. Write out the equation for the marginal net benefits.
MNB(Q) = + Q
d. What are the marginal net benefits when Q = 1? Q = 5?
Marginal net benefits when Q = 1:
Marginal net benefits when Q = 5:
e. What level of Q maximizes net benefits?
f. At the value of Q that maximizes net benefits, what is the value of marginal net benefits?
Answer:
A)= 20+24Q-4Q^{2} (This is the equation for the net benefits)
B) 40; 40
C)MNB(Q)= 24-8Q
D) 16; -16
E) Q=3
F)0
Explanation:
a) To write out the equation for the net benefits.
First, net benefits represents the difference obtained when the total benefits exceed the total costs derived form Q units of the control variable
Based on the definition, the equation is as follows
N(Q)= B(Q) - C(Q)
representing
N(Q)= The Net benefits that are derived from Q level of control variable
B(Q)= The total benefits derived from Q units of control variable
C(Q)= The total cost form Q units of control variable
As we have been given the following:B(Q)= 100 + 36Q - [tex]4Q^{2}[/tex] and C(Q) = 80 +12Q
This means:
N(Q)= 100+36Q-4Q^{2}- (80+12Q)
= 100+36Q-4Q^{2}-80-12Q
=100-80+36q-12Q-4Q^{2}
=20+24Q-4Q^{2}
= 20+24Q-4Q^{2} (This is the equation for the net benefits)
b) Determine he net benefits when Q = 1 and Q=5
Step 1) when Q=1 we use the formula 20+24Q-4Q^{2}
= 20+24Q-4Q^{2}
= 20(24x1)-(4x (1^{2))
=20+24-4
=40
Step 2) when Q=5 we use the formula 20+24Q-4Q^{2}
= 20+24Q-4Q^{2}
= 20(24x5)-(4x (5^{2))
=20+120-4x25
=140-100
=40
c)To write out the equation for the marginal net benefits
Marginal net benefits represent the change experienced in net benefits with change in one unit of the control variable
The formula therefore is as follows:
MNB(Q)=MB (Q)-MC(Q)
Representing
MNB (Q)= The marginal net benefits at Q level of control variable
MB(Q)= marginal benefits
MC(Q)=Marginal Costs
We are already given: MB(Q) = 36 – 8Q and MC(Q) = 12.)
This means
MNB(Q)=MB (Q)-MC(Q)
= 36-8Q-12
36-12-8Q
=24-8Q
MNB(Q)= 24-8Q
d) Find the marginal net benefits
Step 1) when Q=1 we use the formula for marginal net benefit MNB(Q)= 24-8Q
=MNB(Q)= 24-8(1)
= 16
Step 2) when Q=5 we use the formula for marginal net benefit MNB(Q)= 24-8Q
=MNB(Q)= 24-8(5)
=24-40
=-16
e) Calculate the maximum net benefits which represent the maximum level where the marginal costs= marginal benefits (it is a control variable level).
MB(Q)=MC(C)
MB(Q)= Marginal benefits
MC(Q)= Marginal Costs
We already know that MB(Q) =36-8Q and MC(Q)=12
Therefore, maximum benefit
= MB(Q)= MC(Q)
=36-8Q=12
8Q=36-12
8Q= 24
Q= 3.
This means that when Q is 3, then the net benefits will be at its maximum level
f) Compute marginal net benefits which is the difference between the marginal costs and benefits
MNB(Q)=MB(Q)-MC(Q)
MNB(Q)= Marginal net benefits
MB(Q)= Marginal benefits
MC(Q)= Marginal Costs
we already know that MB(Q) =36-8Q and MC(Q)=12
MNB(Q)= 36-8Q-12
=36-12-8Q
=24-8Q
Since the maximum level where net benefits are highest is 3 as calculated above, we then replace Q with 3 in the equation
MNB(Q)= =24-8(3)
= 24-24
=0
This means at Q level of 3, the net costs will be equal to the net benefits and the net benefits are at the maximum level.
The purpose of the ______________________ is to address financial uncertainty and provide the nation with a more stable economy. Office of the Comptroller of the Currency Office of Thrift Supervision Federal Reserve System Federal Deposit Insurance Corporation
Answer:
The Federal Reserve System
Explanation:
The Federal Reserve System represents the United State's Central bank. It is also called either the Fed or the Federal Reserve.
Created by the U.S. congress, the Fed is in charge of the affairs of the financial system of the United States. Specifically, it was created to ensure that the financial system is flexible, safe and monetarily stable.
The Fed regulates banking activities, maintains the stability of the financial system and is also in charge of the monetary policies adopted in the United States.
Straitway Company encourages its managers to behave ethically, reasoning that the employees will take their cues from management. One of the most important ways to create and maintain an ethical behavior workplace is for management to:_______a. Demonstrate a commitment to ethical decision making. b. Discreetly engage in unethical or illegal acts. c. Look the other way when an employee engages in an unethical act. d. Direct employees to "do as we say, not as we do.'
Answer:
The correct answer is letter "A": Demonstrate a commitment to ethical decision making.
Explanation:
If managers of companies desire their employees to adopt certain behavior -regardless of what behavior it is, they must set the example. In the case of ethics, executives should commit to and promote fairness among the institution so employees can correspond to that behavior in the same way.
Indicate the accounts, amounts, and direction of the effects on the accounting equation under the accrual basis.
a.(Sample) Received $9,500 cash for consulting services rendered in January.
b.Issued common stock to investors for $10,000 cash.
c.Purchased $12,000 of equipment, paying 25 percent in cash and owing the rest on a note due in 2 years.
d.Received $7,500 cash for consulting services to be performed in February.
e.Bought $1,000 of supplies on account.
f.Received utility bill for January for $1,250, due February 15.
g.Consulted for customers in January for fees totaling $15,900, due in February.
h.Received $12,000 cash for consulting services rendered in December.
i.Paid $500 toward supplies purchased in (e).Assets=Liabilities+Stockholders’ Equity
a.Cash+9,500=Service Revenue (+R)+9,500
b.Cash+10,000=Common Stock+10,000
c.EquipmentCash+12,000-3,000=Note Payable (long)+9,000
d.Cash+7,500=Unearned Revenue+7,500
e.Supplies+1,000=Accounts Payable+1,000
f.NE=Accounts Payable+1,250Utilities Expense(+E)-1,250
g.Accounts Receivable+15,900=Service Revenue (+R)+15,900
h.Accounts ReceivableCash-12,000+12,000=NE
i.Cash-500=Accounts Payable-500
Answer:
Find the answers in the excel file attached.
Explanation:
The impact of the accounting equation has been shown as well.
Every business transaction under the accrual basis has effects on the accounting equation. This includes changes to assets, liabilities, and stockholders' equity depending on the nature of the transaction. Examples are provided to demonstrate these effects.
Explanation:The accrual basis of accounting recognizes revenue when it is earned and expenses when they are incurred, regardless of when the money is actually paid or received. For each business transaction, there's an effect on the accounting equation, which is Assets = Liabilities + Stockholders’ Equity.
Received $9,500 cash for consulting services: Cash (Asset) is increased by $9,500 and Service Revenue (Equity) is also increased by $9,500. Issued common stock to investors for $10,000 cash: Cash (Asset) is increased by $10,000 and Common Stock (Equity) is also increased by $10,000. Purchased $12,000 of equipment, paying 25 percent in cash: Equipment (Asset) increases by $12,000, Cash (Asset) decreases by $3,000 (25% of $12,000), and Note Payable (Liability) increases by $9,000. Received $7,500 cash for consulting services to be performed in future: Cash (Asset) increases by $7,500 and Unearned Revenue (Liability) increases by $7,500 (since service has not been rendered yet). Bought $1,000 supplies on account: Supplies (Asset) increases by $1,000 and Accounts Payable (Liability) increases by $1,000. Received utility bill for January for $1,250, due in February: This increases Accounts Payable (Liability) by $1,250 and increases Utility Expense (Equity, reducing it as it's an expense) by $1,250. Learn more about Accrual Basis Accounting here:
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Crane Company had revenues of $334000, expenses of $201000, and dividends of $47000. When Income Summary is closed to Retained Earnings, the amount of the debit or credit to Retained Earnings is a
Answer:
It is a credit to Retained Earnings. Credit of $133,000
Explanation:
Closing an entry means transferring all revenue (sales) account balance and expense account balance at the end of an accounting period to the income summary account.
This either leads to a net profit or loss for the period covered in the income summary account. The balance in the income summary then goes into the Retained Earnings.
Step 1: Transfer the revenue to the income summary...
Dr: Revenue - $334,000
Cr: Income summary - $334,000
Step 2: Transfer the expense to the income summary...
Dr: Income summary - $201,000
Cr: Expense- $201,000
This means Revenue (Dr) in step 1 minues Expense (Cr) in step two
$334,000 - $201,000 = $133,000.
The net profit of $133,000 is the transferred to Retained Earnings
Dr: Income summary - $133,000
Cr: Retained Earnings- $133,000
The following information is available for Tomlin Company. April 1 April 30 Raw materials inventory $10,500 $14,000 Work in process inventory 4,840 3,700 Materials purchased in April $97,700 Direct labor in April 80,300 Manufacturing overhead in April 162,000
Answer:
Cost of goods manufactured = 337,640
Explanation:
The question is to compute Tomlin's Cost of Goods Manufactured Schedule of the Month of April and this is done as follows:
TOMLIN COMPANY COST OF GOODS MANUFACTURED SCHEDULE FOR THE MONTH OF APRIL
Description Amount ($) Amount ($)
Beginning Work-in-progress 4,840
Direct Materials:
Beginning Raw materials 10,500
Add: The Purchases 97,700
Raw materials available 108,200
Subtract: Closing Raw materials (14,000)
Direct Material Used 94,200
Direct Labour 80,300
Manufacturing Overhead 162,000
Total Work-in-progress cost 341,340
Subtract ending work-in-progress 3,700
Cost of Goods manufactured 337,640
The declaration, record, and payment dates in connection with a cash dividend of $56,300 on a corporation's common stock are January 12, March 13, and April 12. Journalize the entries required on each date.
If no entry is required, select "No entry required" and leave the amount boxes blank.
Answer:
The double entries required for the dividends are itemized below:
Jan.12 (Declaration date)
DR Retained earnings $56,300
CR Dividends payable $56,300
Mar.13( Record date) no entry is required.
Apr.12(Payment date)
DR Dividends payable $56,300
CR Cash $56,300
Explanation:
On the declaration date,entry is required to show that the company has an obligation to pay dividends to shareholders by crediting dividends payable account and debiting retained earnings(since dividends are paid from accumulated earnings of the business)
On the date the dividends are recorded, no entry is required because that is just a mere record filling.
Lastly,when the dividends are paid, actual movement of cash should be recognized in the books by debiting dividends payable account while crediting cash account.
A national restaurant chain has just opened a sit-down location at Chicago’s O’Hare International Airport. Next to the sit-down location, it has also established a "to-go" section where travelers can purchase premade sandwiches and salads, as well as drinks and snacks. Which dimension of the customer utility function is particularly emphasized with the "to-go" section?
Answer:
Timing.
Explanation:
The establishment of the to-go section by the national restaurant chain is an example of customer utility of time.
The premade sandwiches, salads, drinks, and snacks save the customer time he would have spent waiting for it to be prepared.
So instead of waiting for example 20 minutes for a sandwich, in just about 1 minute customers can pay for their sandwich.
Current assets are those assets that can be converted into cash within:
A. One year and never longer.
B. One year or the operating cycle, whichever is longer.
C. One year or the operating cycle, whichever is shorter.
D. Management's discretion.
Answer:
B. One year or the operating cycle, whichever is longer.
Explanation:
Current Assets are assets that can be converted into cash within a year or an operating cycle whichever is longer.
Current Assets are presented first on a balance sheet and arranged in order of liquidity.
Examples of current assets are cash ,
cash equivalents , short-term investments, accounts receivable and stock inventory.
I hope my answer helps you
Current assets are defined as assets that can be converted into cash within one year or the operating cycle, whichever is longer, emphasizing the importance of liquidity for the ease of converting assets into cash.
Explanation:When discussing current assets, these are assets that can be converted into cash within a specific timeframe. The correct answer to the question is B. One year or the operating cycle, whichever is longer. Current assets include assets that are expected to be liquidated within one fiscal year or the company's operating cycle, whichever period is longer.
This is because the operating cycle can extend beyond a year for certain businesses, particularly in industries where longer periods are required to convert inventory into receivables and then to cash. In this context, liquidity is crucial as it refers to the ease and quickness with which an asset can be turned into cash, making it available for use in buying goods or services or fulfilling obligations.
84. Which is available when creating list views? (Choose two.)
(A) List views can be filtered using AND, OR and NOT filters
(B) List views can be filtered by tags
(C) List views can be filtered by record owner profile
(D) List views can be filtered by record ownership
Answer:
(A) List views can be filtered using AND, OR and NOT filters.
(D) List view can be filtered by record ownership
Explanation:
A list view is a filter that enables to view a list of items which can be scrolled. It will help us find the information easily. It also saves time and arranging data according to requirements is simplified. List view can be filtered by using AND, OR and NOT. List view also enables to filter by record ownership. Option A and D are correct.
When creating list views, you can filter using AND, OR, and NOT filters as well as by record ownership. The two options are part of functions used to manage, customize, and narrow down data display.
Explanation:In the context of computing and data management, while creating list views, various filters can be applied to narrow down or specify the data displayed. The options available in this scenario are (A) List views can be filtered using AND, OR and NOT filters and (D) List views can be filtered by record ownership. Option (A) allows for logical operations to be performed on the data while option (D) means the list can be filtered based on who owns the record.
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The adjusted trial balance of Lopez Company shows the following data pertaining to sales at the end of its fiscal year, October 31, 2014: Sales Revenue $852,850, Delivery Expense $13,380, Sales Returns and Allowances $24,030, and Sales Discounts $12,760.
A) Prepare the revenues section of the income statement.
B) Prepare separate closing entries for (1) sales and (2) the contra accounts to sales.
Answer:
A) Prepare the revenues section of the income statement.
Lopez Company
Income Statement for the year ended MM DD, YY
Sales Revenue $852,850
-Sales Returns and Allowances $24,030
-Sales Discounts $12,760
= Net Sales $816,060
B) Prepare separate closing entries for
(1) sales
Dr. Cr.
Sales $852,850
Income Summary $852,850
(2) the contra accounts to sales.
Dr. Cr.
Income Summary $36,736
Sales Returns and Allowances $24,030
Sales Discount $12,706
The revenues section of the income statement is prepared by deducting sales returns and allowances and sales discounts from the total sales revenue. Closing entries for sales involve debiting the Sales Revenue account and crediting the Income Summary (or Retained Earnings) account. The contra accounts to sales are also closed by debiting them and crediting the Income Summary (or Retained Earnings) account.
Explanation:A) Revenues section of the income statementhttps://brainly.com/question/33175618
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Before prorating the manufacturing overhead costs at the end of 2016, the Cost of Goods Sold and Finished Goods Inventory had applied overhead costs of $57,700 and $22,000 in them, respectively. There was no Work-in-Process at the beginning or end of 2016. During the year, manufacturing overhead costs of $76,000 were actually incurred. The balance in the Applied Manufacturing Overhead was $79,700 at the end of 2016. If the under- or overapplied overhead is prorated between Cost of Goods Sold and the inventory accounts, how much will be the Cost of Goods Sold after the proration?
Answer:
Cost of Goods Sold will decrease by $2,679 after proration.
Explanation:
Under-applied or over applied overhead:
= Overhead incurred - Overhead applied
= $76,000 - $79,700
= (-$3,700)
Therefore, the Cost of Goods Sold after the proration:
= (over applied overhead × Overhead applied to COGS) ÷ Total overhead applied to cost of goods sold and finished goods
= ($3,700 × $57,700) ÷ ($57,700 + $22,000)
= $213,490,000 ÷ $79,700
= $2,679
Hence, the Cost of Goods Sold will decrease by $2,679 after proration.
When forces for both global standardization and local responsiveness in many countries are low, simply using an international division with the domestic structure is an appropriate way to handle international business.A. TrueB. False
Answer:
The correct answer is letter "A": True.
Explanation:
Starting operations in different countries is a challenge for companies. In those regions where offering standardized products is not welcomed, the firm is obligated to open a subsidiary to identify local consumer preferences and adapt their product to regional needs.
Dominic and Matherson, a finance management company, lends money to Ebok, a fast food chain, in order to help Ebok market its new product. Dominic and Matherson provides financial support in the form of bonds. Which of the following financing options is being used by Ebok in the given scenario?
(A) Long-term debt
(B) Trade credit
(C) Commercial paper
(D) Factoring
Answer:
(A) Long- term debt
Explanation:
Financing via issue of long term bonds represents long term debt financing.
Bonds refer to those securities issued by an issuer (or lender) to a borrower, bearing a fixed rate of interest payable on timely basis as well as repayment of principal at the end of the term.
Long term financing is generally for a period which is greater than one year. Usually long term financing is resorted to by a corporation when capital outlay of funds required, or investment in long term projects such as building, purchase of machinery etc which involve sizable funds.
Bonds carry interest obligation in the sense borrower has to pay interest on timely basis.
IGM Technologies sells a new calibrated filtering system used to virtually eliminate all types of hazardous gas emissions in chemical plants. The filtering system involves complex technology that customers may not understand easily. The company sends its sales personnel for a two-day training course on the appropriate use and maintenance of the filtering system so that they can educate prospective customers about its application.
Which of the following elements of the promotion mix would most likely be used to sell this filtering system?
A) Personal selling
B) Mass marketing
C) Public relations
D) Advertising
Answer:
Personal Selling
Explanation:
Personal Selling is one of the elements of promotion mix which involves one to one sales communication with potential customers. Personal selling is one of the most effective promotion approaches because it can be tailored to meet potential customers needs, especially when sales of a particular product and service demands that.
In the case of IGM Technologies, personal selling would be the most likely used because of the complex technology that customers may not understand easily and need for sales personnel to educate potential customers about the product.
Others elements of promotion mix, such as advertising, public relations and mass marketing will be less effective as they don`t bring sales personnel close to potential customers as personal selling. And using any one of three other elements of promotion mix will not help potential customers to understand the complex technology, manner of usage and how to maintain the filtering system.
So personal selling will most likely be used.
Explain how each of the following events affects the monetary base, the money multiplier, and the money supply.a. The Federal Reserve buys bonds in an open-market operation.b. The Fed increases the interest rate it pays banks for holding reserves.c. The Fed reduces its lending to banks through its Term Auction Facility.d. Rumors about a computer virus attack on ATMs increase the amount of money people hold as currency rather than demand deposits.e. The Fed flies a helicopter over 5th Avenue in New York City and drops newly printed $100 bills.
Answer:
a. monetary base and money supply rise while money multiplier does not change.
b. monetary base rises, but money supply and money multiplier fall.
c. monetary base falls, money supply falls, and money multiplier does not change.
d. monetary base rises, money supply falls, and money multiplier falls.
e. monetary base rises, money supply rises, and money multiplier does not change.
Explanation:
Each of these conditions can be explained as follows:
a. The Federal Reserve buys bonds in an open-market operation
Monetary base will increase when Federal Reserve purchases bonds from the open-market, i.e. from the public, which will in turn make money supply to rise. If we assume that reserve-deposit ratio or the currency-deposit ratio do not change, the money multiplier will remain constant.
b. The Fed increases the interest rate it pays banks for holding reserves
Banks will prefer to hold reserves when the interest is increased by the Fed because that will increase their income. The increase in the reserves held by banks will make the monetary base to rise. As more reserves relative to deposits are held by banks, this will make reserve deposit ratio to rise which in turn will reduce the money multiplier. As money multiplier falls, it causes the money supply to also fall.
c. The Fed reduces its lending to banks through its Term Auction Facility
This will make the monetary base to fall which in turn will lead to fall money supply. If we assume that reserve-deposit ratio or the currency-deposit ratio do not change, the money multiplier will remain constant.
d. Rumors about a computer virus attack on ATMs increase the amount of money people hold as currency rather than demand deposits.
This will lead to a rise in the currency-deposit ratio which will result in a fall in money multiplier. Since banks do not have enough reserves to lend, the money supply will fall. The increase in the currency being held by the people will make the monetary base to rise.
e. The Fed flies a helicopter over 5th Avenue in New York City and drops newly printed $100 bills.
This will make both the monetary base and the money supply to rise. Money supply will rise further if any of the new bills is deposited in the bank. But money multiplier would reduce should people eventually hold more currency relative to deposits.
I wish you the best.
Final answer:
The Federal Reserve's actions can increase or decrease the monetary base, money multiplier, and money supply through tools such as open-market operations, interest on reserves, lending facilities, and public reactions to economic events.
Explanation:
The actions of the Federal Reserve (the Fed) have significant impacts on the monetary base, the money multiplier, and the overall money supply. Here's how the events listed would affect these three aspects:
When the Fed buys bonds in an open-market operation, the monetary base increases as reserves in banks rise. Banks then loan out these excess reserves, increasing loans in the economy, which in turn triggers the money multiplier effect, increasing the money supply.If the Fed increases the interest rate on reserves, banks are more incentivized to hold reserves rather than loan them out, which can lead to a decrease in the money multiplier and subsequently the money supply.Reducing lending through the Term Auction Facility would decrease the monetary base as there are fewer reserves in the banking system. This reduction could then lead to a decrease in the money supply as banks have less money to loan out.Rumors about a computer virus attack on ATMs might cause an increase in currency holding versus demand deposits. When people withdraw money from banks, the reserve ratio increases since banks have fewer deposits but must still maintain required reserves, potentially decreasing the money multiplier and the money supply.Lastly, if the Fed 'dropped' newly printed $100 bills over 5th Avenue, this act would directly increase the monetary base as there is more currency in circulation. However, it's a theoretical and unrealistic scenario often used to illustrate the concept of an expansion of the money supply with direct injection of cash into the economy.Max Weber believed that bureaucratic management was the only logical and efficient way to manage an organization. Many organizations do follow bureaucratic principles, but Valve’s Gabe Newell disagrees. His company has almost no management, and employees are expected to pursue their own projects. ________ shares this view that there are no universal management theories.
a.Systems management
b.Information management
c.Contingency management
Answer: (C) Contingency Management
Explanation:
The contingency management is one of the type of behavioral therapy that uses the various types of consequences and also the stimulus for changing the behavior in an organization.
It is basically refers to the three term contingency applications and also called as the operant conditioning that helps in implementing the CBT ( Cognitive-behavior therapy).
According to the given question, the Max Weber is basically believed in the bureaucratic management and he is peruse their project by using the contingency management.
Therefore, Option (C) is correct answer.
Contingency Management is the view that rejects the concept of universal management theories. It suggests that optimal business practices depend on various factors and that what works well in one situation may not necessarily work in another, implying that different situations require different management styles.
Explanation:The perspective that rejects the notion of universal management theories is Contingency Management. This approach argues that optimal business practices are contingent or depend on a variety of variables including the nature of the task, the type of environment, and the specific characteristics and abilities of the workers. In essence, a strategy that works well in one context may not necessarily work well in another.
For instance, Gabe Newell's management style at Valve demonstrates a lack of traditional management hierarchy, allowing employees to pursue their own projects. This sort of leadership may work in some organizations like Valve, but not in all. Therefore, Contingency Management recognizes that there are no one-size-fits-all solutions in management and that different situations require different management styles.
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Duplan Street Mills is an all-equity firm with 28,000 shares of stock outstanding. The firm expects sales of $600,000 one year from today (next year). Sales are expected to grow by 8 percent per year for the following three years and then level off to a constant 3 percent growth rate per year in perpetuity. Net cash flow varies in direct proportion to sales and is currently equal to 15 percent of sales. The required return for this firm is 14 percent.
1. What is the estimated current value of one share of stock?
Answer:
the value of the stock (the discount value of the free cash flow) will be $ 32.87
Explanation:
sales are 600,000
the free cash flow is 15% of this amount
600,000 x 15% = $90,000
This will grow at 8% during three years
and then indefinitely at 3%
We will use the gordon model to solve for the value a single share:
First we calculate the cashflow:
90,000 x 1.08 = 97,200
97,200 x 1.08 = 104,976
104,976 x 1.08 = 113,374.08
113,374.08 x 1.03 = 116,775.30
Then, we discount as the present value of a lump sum.
[tex]\frac{Cashflow}{(1 + rate)^{time} } = PV[/tex]
The 5th year will used to calculate the present value of all the future cash flow:
113,775.30/ (0.14-0.03)
and then discounted.
[tex]\left[\begin{array}{ccc}Year&cashflow&PV\\1&90,000&78,947.3684\\2&97,200&74,792.2438\\3&104,976&70,855.8099\\4&113,374.08&67,126.5567\\4&116,775.3024&628,548.6676\\&TOTAL&920,270.6464\\\end{array}\right][/tex]
Then, we divide by the number of shares to get the value of a share:
920,270.65 / 28,000 shares outstanding = 32,8668 = $ 32.87
Final answer:
To calculate the estimated current value of one share of stock for Duplan Street Mills, we accurately determine the present value of future net cash flows which are a percentage of sales, discounted by the firm's required return rate of 14 percent and divide by the number of shares outstanding.
Explanation:
To estimate the current value of one share of stock for Duplan Street Mills, we need to calculate the present value (PV) of future net cash flows. We start by determining net cash flow, which is 15 percent of sales. Next year's sales are expected to be $600,000, so next year's net cash flow will be $600,000 × 0.15 = $90,000. For the following three years, sales will grow by 8 percent annually, and thereafter, at a constant 3 percent. We discount these cash flows to their present value using the required return rate of 14 percent.
To calculate the perpetual growth from year four onward, we use the formula for the present value of a growing perpetuity, PV = C / (r - g), where C is the cash flow at the perpetuity starting point, r is the discount rate, and g is the growth rate. We then sum the PVs of all these cash flows and divide by the number of shares outstanding to find the price per share.
Please note that the provided example mentioning a price per share of $256,500 and the mention of a 15% interest rate are incorrect and not relevant to Duplan Street Mills' scenario. The 15% refers to the percentage of sales that are net cash flow, not the discount rate. Also, the correct required return rate for this firm is 14 percent, not 15 percent.
Blending Process Units of Product Percent of Conversion Beginning work in process 194,000 85 % Goods started 420,000 100 Goods completed 450,000 100 Ending work in process 164,000 35 Compute the total equivalent units of production for conversion using the weighted-average method.
Answer:
The equivalent units using weighted-average method is 507,400 units as found in the attached
Explanation:
Firstly,process costing requires that uncompleted units be translated to completed units at the end of the period by multiplying percentage of completion with quantity.
The ending balance of work-in-process inventory is 35% completed,which means that 65% more work is required in order to turn it to finished goods.
Besides,some items are disposed during processes if found out that it is preferable to sell in its present condition than undertaking the final processing .
In Angel Company, the Land account decreased $90,000 as a result of a cash sale for $100,000 and recognized a gain on the sale of $10,000. The Equipment account increased $20,000 as a result of a cash purchase. Angel Company also purchased a truck for $25,000 by issuing a five-year note. Bonds payable increased from an issuance of bonds for cash for $50,000. The net cash provided by investing activities is_____________.
a. $70,000.
b. $80,000.
c. $55,000.
d. $105,000.
Answer:
correct option is b. $80,000
Explanation:
given data
cash sale = $100,000
gain on sale = $10,000
Purchase of equipment = $20000
bonds for cash = $50,000
solution
we get here net cash that provide by investing activity that is
net cash = cash sale of land - Purchase of equipment ..............1
put here value and we get
net cash = $100,000 - $20000
net cash = $80000
so correct option is b. $80,000
One look at a Pedigree ad or a visit to the Pedigree Web site confirms that the people behind the Pedigree Brand really do believe the "We're for dogs" mission. Associates are even encouraged to take their dogs to work. To further fulfill the "We're for dogs" brand promise, the company created the Pedigree Foundation, which along with the Pedigree Adoption Drive campaign, has raised millions of dollars for helping "shelter dogs" find good homes. This information indicates that Pedigree is practicing ________.
Answer:
The correct answer is: Sense-of-mission marketing.
Explanation:
Sense-of-mission marketing implies advertising a company's product as a good or service that satisfies a social need instead of simply particular individual interests. By doing this, employees and consumers develop a deeper engagement with the product because they do not just feel they are purchasing an object but contributing to a bigger cause.
Final answer:
Pedigree practices corporate social responsibility through initiatives like encouraging associates to bring dogs to work and creating the Pedigree Foundation.
Explanation:
The practice described in the question is called corporate social responsibility (CSR). CSR refers to a company's commitment to operate ethically and contribute to the well-being of society. Pedigree's initiatives, such as encouraging associates to bring their dogs to work and creating the Pedigree Foundation to raise funds for shelter dogs, demonstrate their commitment to social responsibility and supporting animal welfare.
Heinrich is a manufacturing engineer with the Miller Company. He has determined the costs of producing a new product to be as follows: Equipment cost: $288,000/year Equipment salvage value at EOY5= $41,000 Variable cost per unit of production: $14.55 Overhead cost per year: $48,300 If the Miller Company uses a 5-year planning horizon and the product can be sold for a unit price of $39.75, how many units must be produced and sold each year to break even?
The break-even point for the Miller Company is about 13,032 units per year. This was calculated by first finding the total fixed costs and the contribution margin per unit, and then dividing the total fixed costs by the contribution margin per unit.
Explanation:The subject is asking about the concept in business known as the break-even point, which is the point at which total costs equal total revenue, and the company is neither making a profit nor a loss. To find it for the Miller Company, we should add the yearly fixed costs together and then divide by the contribution margin per unit.
Step 1: Calculate Total Fixed Costs
Fixed costs = Equipment cost per year + Overhead cost per year - Equipment salvage value / 5 years
Fixed costs = $288,000 + $48,300 - $41,000 / 5
Fixed costs = $328,300 per year.
Step 2: Calculate Contribution Margin
Contribution Margin = Unit Selling Price - Variable Cost per unit
Contribution Margin = $39.75 - $14.55
Contribution Margin = $25.20 per unit.
Step 3: Calculate Break-Even Point
Break-even point = Fixed Costs / Contribution Margin
Break-even point = $328,300 / $25.20
Break-even point ≈ 13,031.75 units, rounding up to 13,032 units.
Hence, the Miller Company needs to produce and sell approximately 13,032 units of the product each year to break even.
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