Answer:
The correct answer is letter "A": AHIMA.
Explanation:
The American Health Information Management Association (AHIMA) is a U.S. based organization that safeguards health data and information beneficial for healthcare consumers. The AHIMA mainly focuses on information that could be collected in hospitals analyzing electronic medical records and clinical decision support systems to ensure they have standard set characteristics.
The AHIMA describes its activities as having charitable and educational purposes.
Wright Company's cash account shows a $28,900 debit balance and its bank statement shows $27,200 on deposit at the close of business on May 31. The May 31 bank statement lists $170 in bank service charges; the company has not yet recorded the cost of these services.
Answer:
$28,390
Explanation:
Bank Reconciliation Statement is a compulsory to pronounce a bank statement/cash book records free from error.
Steps in Preparation of Bank Reconciliation Statement
1. Check for Uncleared Dues
2. Compare the debit and credit sessions
3. Check for missed data
4. Make sure the left-hand side is the same as the right hand Side
See attached for the Bank Reconciliation Statement of the exercise.
Celeste Nossiter borrowed $6200 from her father to buy a used car. She repaid him after 9 months, at an annual interest rate of 7.1%. Find the total amount she repaid. How much of this amount is interest?
Answer:
$6,530.15
Explanation:
Calculation:
First, converting R percent to r a decimal
r = R/100
= 7.1%/100 = 0.071 per year.
Putting time into years for simplicity,
9 months / 12 months/year = 0.75 years.
Solving our equation:
A = 6200(1 + (0.071 × 0.75)) = 6530.15
A = $6,530.15
The total amount accrued, principal plus interest, from simple interest on a principal of $6,200.00 at a rate of 7.1% per year for 0.75 years (9 months) is $6,530.15.
Based on the information given the total amount she repaid is $6,530.15 and the interest amount is $530.15.
a. Repayment amount
Amount=Principal+(Principal× Rate× Time)
Let plug in the formula
Amount=$6,200+[$6,200×7.1%×(9/12)]
Amount=$6,200+[$6,200×7.1%×0.75
Amount=$6,200+$330.15
Amount=$6,530.15
b. Interest amount
Interest=Repayment-Principal
Interest=$6,530.15-$6,200
Interest=$530.15
Inconclusion the total amount she repaid is $6,530.15 and the interest amount is $530.15.
Learn more here:https://brainly.com/question/19359382
Dunbar Distribution markets CDs of numerous performing artists. At the beginning of March, Dunbar had in
beginning inventory 2,500 CDs with a unit cost of $7. During March Dunbar made th following purchases of CDs.
March 5 - 2,000 @ $8
March 13 - 3,500 @ $9
March 21 - 5,000 @ $10
March 26 - 2,000 @ $11
During March 12,000 units were sold. Dunbar used a periodic inventory system.
a. Determine the cost of goods available for sale
b. Determine 1. the ending inventory and 2, the cost of goods sold under each of the assumed cost flow methods
(FIFO, LIFO, and average cost). Prove te accuracy of the cost of goods sold under the FIFO and LIFO mehtods.
(Note: for average cost, round cost per unit to three decimal places.)
c. Which cost flow method results in 1. the highest inventory amount for the balanc sheet abd 2. the highest cost of
goods sold for the income statement?
Final answer:
The FIFO method results in the highest inventory amount for the balance sheet, while the LIFO method results in the highest cost of goods sold for the income statement.
Explanation:
The two cost flow methods commonly used in accounting are the first-in, first-out (FIFO) method and the last-in, first-out (LIFO) method.
1. If Dunbar Distribution wants to report the highest inventory amount for the balance sheet, they should use the FIFO method. This is because FIFO assumes that the goods purchased first are sold first, which means the ending inventory would reflect the most recent purchases and therefore have a higher value.
2. On the other hand, if Dunbar Distribution wants to report the highest cost of goods sold for the income statement, they should use the LIFO method. LIFO assumes that the goods purchased last are sold first, which means the cost of goods sold would reflect the most recent and potentially higher-cost purchases.
An analyst estimates that the enterprise value of a firm is $2.7 billion. The firm has $900 million in debt outstanding. If there are 900 million shares outstanding, what is the analyst's estimated value per share
Answer:
Analyst's estimated value per share is $2.
Explanation:
Enterprise value of the firm is the total value of the firm. It is used as an alternative to the market capitalization. It is the total value of equity and debts of firm.
Enterprise value = Value of equity + value of Debt
2,700,000,000 = Value of equity + $900,000,000
Value of equity = $2,700,000,000 - $900,000,000
Value of equity = $1,800,000,000
Estimated value per share = Value of equity / total number of outstanding shares
Estimated value per share = $1,800,000,000 / 900,000,000 shares
Estimated value per share = $2 per share
The analyst's estimated value per share of the firm is $2.00, calculated by subtracting the firm's debt from its enterprise value and then dividing by the number of shares outstanding.
Explanation:To calculate the estimated value per share of the firm, we need to subtract the firm's debt from the enterprise value to get the equity value and then divide that by the number of outstanding shares.
Enterprise Value (EV): $2.7 billionDebt: $900 millionNumber of shares outstanding: 900 millionFirst, subtract the firm's debt from the enterprise value to find the equity value:
Equity Value = EV - Debt = $2.7 billion - $900 million = $1.8 billion
Next, divide the equity value by the number of shares outstanding to find the value per share:
Value per Share = Equity Value / Number of Shares = $1.8 billion / 900 million shares
Value per Share = $2.00 per share
Tangshan Mining borrowed $100,000 for one year under a line of credit with a stated interest rate of 7.5 percent and a 15 percent compensating balance. Normally, the firm keeps almost no money in its checking account. Based on this information, the effective annual interest rate on the loan is ________.
Final answer:
The effective annual interest rate for Tangshan Mining, which borrowed $100,000 at a stated interest rate of 7.5% with a 15% compensating balance, is approximately 8.82%.
Explanation:
To calculate the effective annual interest rate on a loan with a compensating balance, you need to consider the actual amount of loan funds available for use. For Tangshan Mining, which borrowed $100,000 with a compensating balance of 15%, this means $85,000 is available ($100,000 less the 15% compensating balance of $15,000). The stated interest rate is 7.5%, but since the company must maintain a 15% compensating balance, the effective interest rate is higher. The effective interest rate can be calculated by dividing the annual interest by the available funds. The annual interest amount is the product of the total loan amount and the stated interest rate, which is $100,000 * 7.5% = $7,500. To find the effective annual interest rate, divide $7,500 by $85,000 and multiply by 100 to convert to a percentage. This gives us an effective annual interest rate of approximately 8.82%.
The effective annual interest rate on the loan is 8.82%.
The firm borrowed $100,000 at an annual interest rate of 7.5 percent.A 15 percent compensating balance requirement means the company must keep 15 percent of $100,000 in the bank, which is $15,000.This means the firm effectively has access to only $85,000 ($100,000 - $15,000).The interest to be paid on the $100,000 loan is $7,500 ($100,000 × 7.5%).The effective interest rate is then calculated as the actual interest paid divided by the usable funds: $7,500 / $85,000 = 0.0882 or 8.82%.Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company reported its inventory using the LIFO inventory costing method but did not compare the cost of its ending inventory to its market value (replacement cost). The preliminary income statement follows: Sales Revenue $ 140,000 Cost of Goods Sold Beginning Inventory $ 15,000 Purchases 91,000 Goods Available for Sale 106,000 Ending Inventory 22,000 Cost of Goods Sold 84,000 Gross Profit 56,000 Operating Expenses 31,000 Income from Operations 25,000 Income Tax Expense (30%) 7,500 Net Income $ 17,500 Assume that you have been asked to restate the financial statements to incorporate the LCM/NRV rule. You have developed the following data relating to the ending inventory: Purchase Cost Item Quantity Per Unit Total Replacement Cost per Unit A 1,500 $ 3 $ 4,500 $ 4 B 750 4 3,000 2 C 3,500 2 7,000 1 D 1,500 5 7,500 3 $ 22,000 Required: Restate the income statement to reflect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item-by-item basis. Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement 1.
Answer:
Ending Inventory Net Realisable Value or LCM is $ 14,000
Net Income Net Realisable Value or LCM is $ 11,900
Explanation:
Purchase Cost Replacement Cost per
Item Quantity Per Unit Total Unit Total Cost NRV
A 1,500 $ 3 4,500 $ 4 $ 4500 $4500
B 750 4 3,000 2 $1500 $ 1500
C 3,500 2 7,000 1 $3500 $ 3500
D 1,500 5 7,500 3 $ 4500 $ 4500
$ 14000
Ending Inventory $ 22,000
Income Statement
Sales Revenue $ 140,000
Cost of Goods Sold
Beginning Inventory $ 15,000
Purchases 91,000 Goods
Available for Sale 106,000
Ending Inventory 14,000 Applying LCM/NRV
Cost of Goods Sold 92,000
Gross Profit 48,000
Operating Expenses 31,000
Income from Operations 17,000
Income Tax Expense (30%) 5,100
Net Income $ 11,900
The new cost of inventory using the LCM/NRV valuation method is $15,500. This adjustment results in a new cost of goods sold of $90,500 and thus a gross profit of $49,500. After accounting for operating expenses, the revised net income at LCM/NRV valuation comes out to be $12,950.
Explanation:Lower Cost or Market (LCM) or Net Realizable Value (NRV) is an accounting principle that an entity applies to record its inventory at the lower of the cost or the market value. In this case, Springer Anderson Gymnastics Company hasn't applied LCM/NRV to its inventory valuation. Let's do this step-by-step:
Let's calculate the new costs under LCM/NRV for each item:Item A = quantity of 1,500 * replacement cost of $4 = $6,000Item B = quantity of 750 * replacement cost of $2 = $1,500Item C = quantity of 3,500 * replacement cost of $1 = $3,500Item D = quantity of 1,500 * replacement cost of $3 = $4,500So, the new total at LCM is $6,000 + $1,500 + $3,500 + $4,500 = $15,500Now, let's restate the income statement. The change in inventory cost will affect the Cost of Goods Sold (COGS) and thus the gross profit.
Here is the restated income statement:
Beginning Inventory: $15,000Purchases: $91,000Goods Available for Sale: $106,000Ending Inventory at LCM: $15,500New COGS = Beginning Inventory + Purchases - Ending Inventory at LCM = $15,000 + $91,000 - $15,500 = $90,500Sales Revenue: $140,000COGS: $90,500Gross Profit: $140,000 - $90,500 = $49,500Operating Expenses: $31,000Income from Operations: $49,500 - $31,000 = $18,500Income Tax Expense (30%) = $18,500 * 30% = $5,550Net Income = Income from Operations - Income Tax Expense = $18,500 - $5,550 = $12,950Learn more about LCM/NRV Valuation here:https://brainly.com/question/30029846
#SPJ3
K Company estimates that overhead costs for the next year will be $2,970,000 for indirect labor and $990,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 99,000 direct labor hours are planned for this next year, how much overhead would be assigned to a product requiring 4 direct labor hours
Answer:
$164
Explanation:
Data provided in the question
Indirect labor cost for the next year = $2,970,000
Factory utilities for the next year = $990,000
Planned direct labor hours = 99,000
Required direct labor hours = 4
So by considering the above information, the overhead assigned is
= (Indirect labor cost for the next year + Factory utilities for the next year) ÷ (Planned direct labor hours) × (Required direct labor hours
= ($2,970,000 + $990,000) ÷ (99,000 direct labor hours) × 4 direct labor hours
= $164
Amy Xia's plant is designed to produce 7,000 hammers per day but is limited to making 6,300 hammers per day because of the time needed to change equipment between styles of hammers. The utilization rate for the plant = _______% (enter your answer as a percentage rounded to two decimal places)
Answer: 90%
Explanation: The utilization rate is the percentage of time an asset is productive compared to its capacity.
When it applies to human capital, it is amount of billable hours compared to the total hours they are at work.
The capacity of Amy Xia's plant is 7000 hammers/day.
However, it only produces 6300 hammers/day.
Utilization rate = productivity/capacity X 100%
Utilization rate = 6300/7000 X 100%
Utilization rate = 90%
The utilization rate for Amy Xia's plant is 90%.
Explanation:The utilization rate for the plant can be calculated by dividing the actual production rate by the maximum production rate.
Utilization rate = (Actual production rate / Maximum production rate) x 100%
So, in this case, the utilization rate for Amy Xia's plant is ((6,300 hammers per day) / (7,000 hammers per day)) x 100% = 90%.
Learn more about Utilization rate here:https://brainly.com/question/33639600
On July 1, 2014, Falcon Company received a $20,000 promissory note from Jordyn Company. The annual interest rate is 5%. Principal and interest are paid in cash at the maturity date of June 30, 2015. If Falcon’s fiscal year ends September 30, 2014, an adjusting entry is needed to:a. Increase interest revenue by $1,000b. Increase notes receivable by $250c. Increase interest receivable by $250d. Increase notes receivable by $1,000
Answer:
c. Increase interest receivable by $250
Explanation:
The question says that the interest and notes receivable amount will be received at maturity and till then the note is an asset while any interest accrued on the note will be our interest revenue and it will also be a current asset as it will be classified as receivable.
We calculate the interest on note receivable,
20000 * 0.05 = 1000 1000 is the total interest that will be receivable after one year on this notes of 20000The interest for the period from July to September is 1000 * 3/12 = 250So the interest income pertaining to the period ended 30 September is $250This will be recorded by the adjusting entry on 30 Sep as,Interest Receivable 250 Dr
Interest Income 250 Cr
So, the answer is C.
Final answer:
The correct adjusting entry is to increase interest receivable by $250, accounting for the interest earned by Falcon Company from July to September 2014 on the promissory note with Jordyn Company.
Explanation:
On July 1, 2014, Falcon Company received a $20,000 promissory note from Jordyn Company. The annual interest rate is 5%. Principal and interest are paid in cash at the maturity date of June 30, 2015. Given Falcon’s fiscal year ends on September 30, 2014, an adjusting entry is necessary to account for the interest earned but not yet received. The amount of interest for three months (July to September) can be calculated as follows:
Interest = Principal x Rate x Time = $20,000 x 5% x (3/12) = $250.
Therefore, the correct adjusting entry to increase interest receivable by $250 is needed. This entry acknowledges the interest income earned during the fiscal period ending September 30, 2014, but not yet received, thus accurately reflecting Falcon Company’s financial position.
Some research has suggested that laissez faire leadership in conjunction with transactional and transformational leadership may be most effective, bringing to light one of the main themes in the textbook, which is ______.
A. situational leadership is the most effective form of leadership
B. oftentimes the best approach is a combination of leadership approaches
C. the traits of effective leaders depend on the context
D. all leadership approaches have an element of laissez faire
Answer:
D. all leadership approaches have an element of laissez faire.
Explanation:
Laissez faire is the leadership style where the leader sets objectives, communicates them, and leaves the employees toale decision on how to achieve the set targets.
This style of leadership goes with some level of trust as the leader is hands off from the day to day activities of subordinates.
Every leadership style Jada degree of laissez faire because the leader cannot do everything but must delegate some functions.
Consider the GDP price index and the CPI, and then choose the correct answer. A. The GDP price index weights each item using information from past expenditure surveys. B. The GDP price index is not an alternative to the CPI as a measure of the cost of living. C. If nominal GDP rises but real GDP remains unchanged, it must be that production has increased. D. The CPI and the GDP price index give us the same value.
Answer:
C. If nominal GDP rises but real GDP remains unchanged, it must be that production has increased.
Explanation:
The CPI and the GDP price index and implicit price deflator are alternative measures of inflation in the U.S. economy. The choice of which one to use in a given scenario likely depends on the set of goods and services in which one is interested as a measure of price change. The CPI measures price change from the perspective of an urban consumer and thus pertains to goods and services purchased out of pocket by urban consumers. The GDP price index and implicit price deflator measure price change from the perspective of domestic production of goods and services and thus pertain to goods and services purchased by consumers, businesses, government, and foreigners, but not importers. In addition, the formulas used to calculate these two measures differ.
Answer:
The correct answer is letter "C": If nominal GDP rises but real GDP remains unchanged, it must be that production has increased.
Explanation:
The Gross Domestic Product (GDP) is a calculation of the overall economic production of a country's goods and services. In general, GDP is measured annually within one year. Real GDP is equal to the economic output adjusted for the effects of inflation. Nominal GDP equals economic output without the inflation adjustment. Nominal GDP is usually higher than real GDP because inflation is typically a positive number.
Thus, nominal GDP can increase without increasing the real GDP.
The following information is available for Birch Company at December 31:
Money market fund balance $2,790
Certificate of deposit maturing June 30 of next year $10,000
Postdated checks from customers $1,475
Cash in bank account $21,430
NSF checks from customers returned by bank $650
Cash in petty cash fund $200
Inventory of postage stamps $24
U.S. Treasury bill purchased on December 15 and maturing on February 28 of following year $5,000
Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of:
A $29,420
B $41,345
C $31,345
D $39,420
E $38,770
Answer:
Cash and cash equivalents of $29,420,option A.
Explanation:
The amount of cash and cash equivalents Birch should report on December 31 is made up of the following:
Money market fund balance $2790
Cash in bank account $21430
Cash in petty cash fund $200
U.S treasury bill $5000
Total cash and cash equivalents $29,420
Cash and cash equivalents are resources of the company that are readily amount of cash and those can could be easily converted to cash without significant portion of its value.
Money market fund is the fund set aside for trading in securities on a recognized exchange ,since securities being bought and sold are tradeable on stock exchange,the securities can be converted into cash in no distant time.
U.S treasury bills are viewed as cash equivalent if maturity is less than 3 months.
2. You own and operate a bike store. Each year, you receive revenue of $200,000 from your bike sales, and it costs you $100,000 to obtain the bikes. In addition, you pay $20,000 for electricity, taxes, and other expenses per year. Instead of running the bike store, you could become an accountant and receive a yearly salary of $40,000. A large clothing retail chain wants to expand and offers to rent the store from you for $50,000 per year. How do you explain to your friends that despite making a profit, it is too costly for you to continue running your store
Answer:
Economic profit is negative
Explanation:
The difference between accounting and economic profit is that economic profit includes notional profit or implicit profit/loss, referred to as opportunity cost.
Opportunity cost refers to the benefits foregone of opting for an alternative when another alternative is chosen instead.
In the given case, Accounting profit = Revenues - Costs
Accounting Profit = $200,000 - ($100,000 + 20,000)
Accounting Profit = $80,000
Economic Profit = Accounting profit - Implicit Costs
Economic Profit = $80,000 - (40,000 + 50,000)
= ($10,000)
Here, the salary foregone of $40,000 and rent foregone of $50,000 represents implicit or opportunity cost.
Thus, economic loss of $10,000 makes the option of running the bike store non viable.
Final answer:
Despite an accounting profit of $80,000 for the bike store, the economic profit is negative $30,000 after considering a potential salary as an accountant ($40,000) and rental income from the store ($50,000). Thus, it's too costly to continue operating the store compared to alternative options.
Explanation:
To explain why running the bike store is too costly despite making a profit, we discuss the differences between accounting profit and economic profit.
The accounting profit for the bike store is calculated by subtracting explicit costs (the cost to obtain the bikes and other expenses) from the revenue, which is $80,000 ($200,000 revenue - $100,000 cost to obtain bikes - $20,000 other expenses).
However, the economic profit also considers implicit costs, which are opportunity costs of not pursuing the next best alternative.
In this case, the opportunity cost includes the potential salary as an accountant ($40,000) and the rental offer from the clothing retail chain ($50,000).
When these implicit costs are factored in, the total costs rise to $170,000 ($100,000 + $20,000 + $40,000 + $50,000), making the economic profit a negative $30,000 ($200,000 - $170,000 implicit and explicit costs).
Despite the accounting profit, the business owner would be better off financially by taking the accounting job and renting out the store, hence running the store is too costly when considering the economic profit.
Probett Toy Company makes its own wind-up motors, which are then put into its toys. While the toy manufacturing process is continuous, the motors are intermittent flow. Demand is 2000 units per month, setup costs are $85 per batch, carrying costs are $2.00 per unit per year, daily subassembly production rate is 1000 units and daily subassembly usage rate is 400 units. To minimize cost, how large should each batch of subassemblies be?
Answer: 1683 units
Explanation:
If the government could raise taxes on one good, which product should the government increase tax rates in order to raise tax revenue? a. Cigarettes b. Alcohol c. Sodas d. None of the above
Answer:
a. Cigarettes
Explanation:
Goods such as cigarettes, alcohol, gambling, etc are referred to as Demerit goods as all of these are harmful to the consumers in some form or the other.
In order to raise taxes and thereby reduce the consumption, governments of various states have historically increased taxes on cigarettes and tobacco.
Taxes imposed on cigarettes, cigars and tobacco account for major tax revenues, usually higher than revenue derived from taxation of alcohol and gambling.
Such taxes are referred to as "sin" taxes. The twin objectives served by such a tax being discouraging purchase of such products and in the meantime generation of high tax revenues.
Suppose a new process was developed that could be used to make oil out of seawater. The equipment required is quite expensive, but it would in time lead to low prices for gasoline, electricity, and other types of energy. What effect would this have on interest rates
Answer:
Interest rate will be higher
Explanation:
Funds invested in such opportunity will attract higher payoff,because only higher interest rate can be paid to attract such funds. Fewer people are ready to safe because they needed to consume their money in the purchase of expensive gasoline. The investment risk is higher because the returns are higher and that is what all investors look out for.Superior Printing, Inc. has provided you with its bank statement and Cash T-account for the month of June. The Controller has asked you to prepare the Bank Reconciliation for the month of June.
BANK STATEMENT
Date Checks Deposits Other Balance
June 1 18,500
3 440 18,060
4 1200 16,860
8 500 16,360
10 1200 15,160
13 250 10,000 24,910
20 80 NSF 840 23,990
22 9800 35,000 49,190
26 350 48,840
27 4600 44,240
29 700 17000 60,540
30 920 Serv. Charge 50 59,570
30 600 Interest 30 59,000
Earned
Sheet # 2
Cash
June 1 Bal. 18,500
June 13 deposit 10,000 Check #100 440
June 22 deposit 35,000 Check #101 1200
June 29 deposit 17,000 Check #102 500
June 30 deposit 28,000 Check #103 1200
Check #104 250
Check #105 80
Check #106 9800
Check #107 350 . Check #108 4600
Check #109 770
Check #110 4900
Check #111 700
Check #112 920
Check #113 600
June 30 Bal. 82,190
Bank reconciliation involves comparing a company's cash account balance with the bank statement balance, and then identifying and adjusting for any discrepancies. Discrepancies might include outstanding checks, NSF checks, and bank charges/interest not accounted for in the books.
Explanation:To prepare a bank reconciliation, you should start by comparing the company's cash account balance (found in the company's books) with the bank statement balance. In this case, the cash account balance at the end of June was $82,190, and the bank statement balance was $59,000.
he next steps involve reconciling any discrepancies between these two balances by identifying any items included in one statement but not the other. Here are the differences:
Once these discrepancies are taken into account, the adjusted balances from both the company's cash account and the bank statement should match.
Learn more about Bank Reconciliation here:https://brainly.com/question/34178861
3335 Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Its unadjusted trial balance as of December 31 follows along with descriptions of items a through h that require adjusting entries on December 31.
Answer:
A
Dr. Insurance Expense.....3335
Cr. Prepaid Insurance.............3335
Being Insurance policies expired during the period
B
Dr. Teaching supplies expense....( 10,420 – 2,891).....7,529
Cr. Teaching Supplies ...............................................................7,529
Being teaching supplies made for the period
C
Dr. Depreciation Expense - Equipment............13,342
Cr. Accumulated Depreciation - Equipment......................13,342
Being Equipment Depreciation expense for the period
D
Dr. Depreciation Expense – Professional Library....6,671
Cr. Accumulated Depreciation – Professional Library.........6,671
Being Depreciation of Professional Library for the period
E
Dr. Unearned Training Fees (2 months * 3000) ...6,000
Cr. Training fees earned.................................................6,000
Being recognition of revenue against prepaid income for Nov and Dec
F
Dr. Tuition Receivable (2.5 months x 3,561) ...8,902.5
Cr. Tuition earned ...........................................................8,902.5
Being recognition of Tuition revenue against Account receivable for Oct 15 to Dec
G
Dr. Wages Payable......................400
Cr. Accrued Wages...........................400
Being Wages Accrued for 2 workers for 2 days as at Dec 31st at the rate $100 per day
Explanation:
Required:
1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.
Additional Information Items
1. An analysis of WTI's insurance policies shows that $3,335 of coverage has expired.
2. An inventory count shows that teaching supplies costing $2,891 are available at year-end 2017.
3. Annual depreciation on the equipment is $13,342.
4. Annual depreciation on the professional library is $6,671.
5. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $3,000, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018.
6. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,561 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)
7. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
JOURNAL ENTRIES
A
Dr. Insurance Expense.....3335
Cr. Prepaid Insurance.............3335
Being Insurance policies expired during the period
B
Dr. Teaching supplies expense....( 10,420 – 2,891).....7,529
Cr. Teaching Supplies ...............................................................7,529
Being teaching supplies made for the period
C
Dr. Depreciation Expense - Equipment............13,342
Cr. Accumulated Depreciation - Equipment......................13,342
Being Equipment Depreciation expense for the period
D
Dr. Depreciation Expense – Professional Library....6,671
Cr. Accumulated Depreciation – Professional Library.........6,671
Being Depreciation of Professional Library for the period
E
Dr. Unearned Training Fees (2 months * 3000) ...6,000
Cr. Training fees earned.................................................6,000
Being recognition of revenue against prepaid income for Nov and Dec
F
Dr. Tuition Receivable (2.5 months x 3,561) ...8,902.5
Cr. Tuition earned ...........................................................8,902.5
Being recognition of Tuition revenue against Account receivable for Oct 15 to Dec
G
Dr. Wages Payable......................400
Cr. Accrued Wages...........................400
Being Wages Accrued for 2 workers for 2 days as at Dec 31st at the rate $100 per day
XYZ makes and sells bicycle parts. Last year XYZ sold 6,000 handlebars, generating sales of $180,000. This year they are considering a new pricing strategy with a target profit goal of $72,000. They determined that for every $2 increase to the selling price, a 100 decrease in unit sales was expected. Their total costs were $100,000 with fixed costs accounting for $64,000. This year, XYZ is considering changing the selling price to $36.
a) What was XYZ's average selling price per handlebar last year?
b) What were XYZ's total variable costs last year?c)What were XYZ's average unit variable costs last year?
d) What were XYZ's average unit contribution margins ($) last year?
Answer:
a. XYZ's average selling price per handlebar last year was $30
b.
XYZ's total variable costs last year were $36,000
c. XYZ's average unit variable costs last year were $6
d. XYZ's average unit contribution margins ($) last year were $24
Explanation:
a.
XYZ's average selling price per handlebar last year = Total Sales/number of handlebars sold = $180,000/6,000 = $30
b.
XYZ's total variable costs last year = total costs - fixed costs = $100,000 - $64,000 = $36,000
c. XYZ's average unit variable costs last year = Total variable costs/number of handlebars = $36,000/6,000 = $6
d. XYZ's average unit contribution margins ($) last year = Selling price per handlebar - average unit variable costs = $30 - $6 = $24
The price which the consumers pays for a service or product is called the selling price while the variable cost is the amount that varies according to the companies sale and produce.
The prices are a) $30, b) $36000, c) $6 and d) $24.
The values can be estimated as:
Given,
Number of handlebars sold = 6000Annual sales = $180,000Profit Goal = $72,000Total cost = $100,000Fixed cost = $64,000Selling Price = $36a. XYZ's average selling price (SP) per handlebar last year:
[tex]\rm Selling\; Price = \dfrac {Total \;Sales}{Number\; of\; handlebars\; sold}[/tex]
[tex]\rm Selling\; Price = \dfrac {\$ \;180,000}{6000}\\\\= \$30[/tex]
b. XYZ's total variable costs (VC) last year:
[tex]\rm Variable\; cost = Total\; costs - Fixed \;costs[/tex]
[tex]\rm VC = \$100,000 - \$64,000 \\\\= \$36,000[/tex]
c. XYZ's average unit variable costs (VC) last year:
[tex]\rm VC = \dfrac {Total \;variable \;costs}{Number\; of \;handlebars}[/tex]
[tex]\rm VC = \dfrac{\$36,000}{6,000} \\\\= \$6[/tex]
d. XYZ's average unit contribution margins ($) last year:
[tex]\rm Contributional\; margin = Selling\; price\; per\; handlebar - Average\; unit \;variable \;costs[/tex]
[tex]\rm Margin = \$30 - \$6 \\\\= \$24[/tex]
Thus, a) $30, b) $36000, c) $6 and d) $24 are the prices.
To learn more about selling price and variable cost follow the link:
https://brainly.com/question/22401743
During 2017, Windsor Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2016 and 2015 (Windsor’s first year of operations) under FIFO was $174,610 and $191,390, respectively. Pretax income using weighted-average pricing in the prior years would have been $151,100 in 2016 and $173,400 in 2015. In 2017, Windsor reported pretax income (using weighted-average pricing) of $206,200. Show comparative income statements for Windsor, beginning with "Income before income tax," as presented on the 2017 income statement. (The tax rate in all years is 29%.)
Answer:
Description 2017 2016 2015
Net Income $146,402 $107,281 $123,114
Explanation:
The question is to compute a statement of income comparative figures. The step is therefore to use the weighted average pricing method to replace the historical income before taxes for both years 2016 and 2015. After this is done, we then re-calculate the appropriate taxes and arrive at the net income.
Description 2017 2016 2015
Income before taxes 206,200 151,100 173,400
Subtract: Income tax @29% 59,798 43,819 50,286
Net Income 146,402 107,281 123,114
Crossett Trucking Company claims that the mean weight of its delivery trucks when they are fully loaded is 6,000 pounds and the standard deviation is 310 pounds. Assume that the population follows the normal distribution. Fifty-five trucks are randomly selected and weighed.
Answer:
95% of 55 trucks will have weights between 5915.5 lbs and 6084.5 lbs
Explanation:
Complete question:
Crossett Trucking Company claims that the mean weight of its delivery trucks when they are fully loaded is 6,000 pounds and the standard deviation is 310 pounds. Assume that the population follows the normal distribution. Fifty-five trucks are randomly selected and weighed. Within what limits will 95% of the sample mean occur
Subtract 1 from sample size to find degree of freedom(df). Here sample size is 55,sodf= 55-1= 54
To determine α, subtract confidence interval from 1 and then divide by 2. Here confidence interval is 95% or 0.95, soα= (1-0.95)/2= 0.025
Use t-distribution table(see attachment) to find t-value for α=0.025 and df=54. So t=2.021(since df=54 is not listed in the table, I have used the table row corresponding to the next lowest value of df that is 40)divide sample deviation, 310, by root of sample size that is 55. So,[tex]\frac{310}{\sqrt{55} }[/tex]= 41.8
Now multiply the answers from last two steps 41.8 × 2.021= 84.5lower limit= 6000-84.5=5915.5upper limit= 6000+84.5=6084.595% of 55 trucks have weights between 5915.5 lbs and 6084.5 lbs
Reader's Digest Association, Inc., has published Reader's Digest magazine for over 80 years, and many believe the publication is dated and can no longer attract many readers. They believe _____ plans are needed to revamp the magazine's content, editorial staff, and readership.
They believe Strategic plans are needed to revamp the magazine's content, editorial staff, and readership.
Explanation:
Strategic preparation is the practice of recording and leading the small organisation— deciding where you are and when you go. The strategic plan offers you with a location to document your purpose, vision, and principles, your long-term priorities and action plans.
Vision planning, scenario preparation and dilemma solving are three growing priority areas of the strategic planning.
Examples of a Business Strategy Includes: assessment of corporate assets and deficiencies. Design of a framework for business strategy.
Reader's Digest Association, Incorporation believes that strategic plans are needed to revamp the magazine's content, editorial staff, and readership.
From the information given, the company has published Reader's Digest magazine for over 80 years, and many believe the publication is dated and can no longer attract many readers.
Therefore, it's important that they utilize strategic plans to revamp the magazine's content, editorial staff, and readership. This is vital as it'll help in increasing sales and thereby improve the revenue as well.
Read related link on:
https://brainly.com/question/24236735
Cohesion case Consider the types of hardware and software your business requires. You should consider the following: computers, mobile devices, servers, hardware for reading credit cards, telephones, etc. You should consider software requirements for: bookkeeping, customer payments, mobile apps, employee payroll, etc. Will you use local servers or a Cloud computing structure? You need to be thinking about what will be required within the first six months of updating your business. Describe everything you need to get your company up to date?
Answer:
human Resources
Explanation: the company will after having hardware and software, will require the services of human resources, a management structure to drive both the hardware and the software. building, motor vehicle, policies, visions and mission that will give the company direction to follow.
To update your company, you'll need computers, mobile devices, servers, credit card readers, telephones, as well as bookkeeping, payment processing, mobile apps, and payroll software. Cloud computing and collaboration platforms will aid in document sharing and communication, while office suite software will support daily operations.
Explanation:To bring your company up to date with its digital and technical requirements within the first six months, you will need to consider acquiring various types of hardware and software. For hardware, this includes computers, mobile devices, servers, credit card reading hardware, and telephones. For software, you will need systems for bookkeeping, processing customer payments, possibly a mobile app, and employee payroll management. Deciding between using local servers or a Cloud computing structure will depend on the specific needs and scale of your business. Cloud computing options like Microsoft's OneDrive or Drive could be beneficial for document storage and sharing. Additionally, collaboration platforms such as Slack, , Zoom, and Microsoft Teams can facilitate communication and teamwork. Office suite software, like Microsoft Office, will be crucial for day-to-day operations, including the use of Word processors for document creation and revision, as well as spreadsheet software, such as Microsoft Excel, for data analysis and reporting.
A cultural attitude marked by the tendency to regard one's own culture as superior to others is called_____________.
A) ethnocentrism.
B) polycentrism.
C) geocentrism.
D) technocentrism.
E) none of these.
Answer:
A) ethnocentrism.
Explanation:
Ethnocentrism is the term used to describe the belief that one’s own culture to be natural or correct, and therefore superior to all other cultures.
The word ethnos, derived from Greek, means "nation, people, or cultural grouping". Therefore, to be ethnocentric means to be centered towards a particular race or culture, believing it to be superior.
The answer is A) ethnocentrism.
Answer:
The correct answer is letter "A": ethnocentrism.
Explanation:
In anthropology, ethnocentrism is the belief of individuals or groups believing they are superior to others because of features such as language, custom, religion or behavior. These individuals assume their culture is the point of reference of others, thus, all other cultures should imitate them. Ethnocentrism is called cultural ignorance.
Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used S1 Department S1 S2 P1 P2 Direct costs $180,000 $162.000 $ 197000 $140000 S2 0.70 P1 0.10 0.300.50 P2 0.20 0.20 Under the step-method of cost allocation, the amount of costs allocated from $2 to P2 would be_________________.a. $81000b. $84 250c. $180,000d. $93.500
Solution:
S1 $180,000 is allocated 70% to S2 or $126,000 ( 0.7 * 180,000 )
S2 total is $162,000 + $126,000 = $288,000
S2 $126,000 is allocated 19.7% to P2 or $81000
Under the step-method of cost allocation,
the amount of costs allocated from $2 to P2 would be $81000
Northwest Fur Co. started 2021 with $105,000 of merchandise inventory on hand. During 2021, $480,000 in merchandise was purchased on account with credit terms of 3/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $9,100. Merchandise with an invoice amount of $3,200 was returned for credit. Cost of goods sold for the year was $366,000. Northwest uses a perpetual inventory system.
What is ending inventory assuming Northwest uses the gross method to record purchases?
Answer:
$210,596
Explanation:
Northwest Fur Co.
Beginning inventory $105,000
Inventory purchase $480,000
Freight $9,100
Merchandise return ($3,200)
Discounts [(480,000-3,200)×3%] ($14,304)
Cost of goods available for sale $576,596
Cost of goods sold ($366,000)
Ending inventory $210,596
Therefore the ending inventory assuming Northwest uses the gross method to record purchases is $210,596
Answer: $210,596
Explanation:
GIVEN the following ;
Beginning inventory = $105,000
Inventory Purchased = $480,000
Discount = 3% = 0.03
Freight charge = $9,100
Returned merchandise = $3,200 Cost of goods sold = $366,000
Calculate the ending inventory :
Discount = $(480,000 - 3200) × 0.03
Discount = $14,304
Cost of goods sold = (Beginning inventory + inventory purchased + Freight - ending inventory) - (returned merchandise + discount)
$366,000 = $(105,000 + 480,000 + 9,100 - ending inventory) - $( 3,200 + 14,304)
$366,000 = $594,100 - ending inventory - $17,504
$366,000 = $576,796 - ending inventory
Ending inventory = $(576,596 - 366,000) = $210,596
:
Reliable is debating whether to add 2 million units or 1.5 million units of capacity to the Asia plant. The larger plant increase will cost $18 million, whereas the smaller addition will cost $15 million. Assume that Reliable users a discount factor of 10 percent. What do you recommend?
Answer:
Explanation:
10% of 18 million =1.8 million for 2 million units
10% of 15 million =1.5 million for 1.5 million units
For 2 million units at 10 percent discount you would spend
18 million -1.8 million= 16.2 million
For 1.5 million units at 10 percent discount you would spend
15 million -1.5 million = 13.5 million
You have a shortfall of 500 000 units between spending 16.2 million and 13.5 million.
My strong recommendation will be to use $15 million.
Under what conditions could a company artificially increase their current ratio at the end of their accounting reporting period by taking out a short term loan and placing the proceeds in the cash account? a. When the current ratio is equal to one before this transaction. b. When the current ratio is less than one before this transaction. c. When the current ratio is greater than one before this transaction. d. The company's current ratio would not increase after this transaction.
Answer:
d. The company's current ratio would not increase after this transaction.
Explanation:
Taking out a short-term loan includes taking out cash via short-term loan. Present liabilities are known as short term loan.
Revenues from Short term loan positions in cash account meaning that current assets will grow as cash is listed as current assets.
This implies the existing liabilities are now raised in the same proportion as the current assets.
Current Ratio formula is as follows, Current Ratio = Current Assets / Current Liabilities.
If the current assets and current liabilities are both increased in the same proportion then this ratio has no impact.
Which means the ratio won't change after this transaction.
Answer:
The answer for the condition under which a company could artificially increase their current ratio at the end of their accounting reporting period by taking out a short term loan and placing the proceeds in the cash account is option A) When the current ratio is equal to one before this transaction.
Explanation:
When a company seeks to increase their current ratio at the end of their account reporting, It shows that the company is less liquid and the business is closer to having no working capital.
In terms of current ratio for the condition of less liquidity, the current ratio is either approaching one and when it finally gets to 1:1, a company will be forced to take a short term loan as shown in the question to aid with operating expenses while taking the necessary steps to reduce liability and increase assets.
Miltmar Corporation will pay a year-end dividend of $5, and dividends thereafter are expected to grow at the constant rate of 6% per year. The risk-free rate is 5%, and the expected return on the market portfolio is 10%. The stock has a beta of 0.76.a. Calculate the market capitalization rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Market capitalization rate _____ %b. What is the intrinsic value of the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Intrinsic value $
Final answer:
The market capitalization rate for Miltmar Corporation, calculated using CAPM, is 8.80%. The intrinsic value of the stock, using the Gordon Growth Model, is $189.29.
Explanation:
To calculate the market capitalization rate for Miltmar Corporation, we can use the Capital Asset Pricing Model (CAPM), which is given by the formula:
Expected Return (CAPM) = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate)
Plugging in the given values:
Expected Return (CAPM) = 5% + 0.76 * (10% - 5%)
Expected Return (CAPM) = 5% + 0.76 * 5%
Expected Return (CAPM) = 8.80%
The market capitalization rate is 8.80%.
The intrinsic value of the stock can be calculated using the Gordon Growth Model, which is:
Intrinsic Value = Expected Dividend Next Year / (Market Capitalization Rate - Growth Rate)
Plugging in the given values:
Intrinsic Value = $5 * (1 + 6%) / (8.80% - 6%)
Intrinsic Value = $5.30 / 2.80%
Intrinsic Value = $189.29
Therefore, the intrinsic value of Miltmar Corporation's stock is $189.29.
In 1977, at age 23, Jake Burton left a job at an investment firm to work in a wood shop where he developed the first marketable snow board. Three decades later, he is the owner of Burton Snowboards, the leader in the $2.3 billion snow sports industry. Burton is responsible for the beginning of a technology cycle.a. True.b. False.
Answer:
The Correct answer is "False"
Explanation:
Jake Burton Carpenter (conceived April 29, 1954 in New York City), otherwise called Jake Burton, is an American snowboarder and author of Burton Snowboards and one of the innovators of the cutting edge snowboard. He experienced childhood in Cedarhurst, New York. He was not organizer of innovation cycle.
Based on the fact that Jake Burton developed the first marketable snowboard, saying he is responsible for the beginning of a technology cycle is True.
What is a technology cycle?This refers to the commercial gain that a product brings in from the costs to develop the product, to the profits it brings in while it is popular.
Jake Burton in developing the first marketable snow board, is responsible for the snowboard technology cycle beginning in the first place because it then began to sell since then.
In conclusion, this is true.
Find out more on commercial cycles at https://brainly.com/question/1327207.