Answer:
Please see below
Explanation:
1. Utilities payable N/A
2. Utilities expense ...N/A
3. Supplies ...N/A
4. Supplies expense .....N/A
5. Fees earned...N/A
6. Unearned fees...N/A
7. Accounts Receivable ....N/A
8. Dividends ........Dr to retained earnings
9. Retained earnings.....Cr to retained earnings
10. Accumulated depreciation - equipment... N/A
11. Depreciation expense- Equipment.....N/A
12. Equipment...N/A
13. Prepaid insurance.....N/A
14. Insurance expense.....N/A
Following are the transactions of Sustain Company. June1 T. James, owner, invested $11,000 cash in Sustain Company in exchange for common stock. 2 The company purchased $4,000 of furniture made from reclaimed wood on credit. 3 The company paid $600 cash for a 12-month insurance policy on the reclaimed furniture. 4 The company billed a customer $3,000 in fees earned from preparing a sustainability report. 12 The company paid $4,000 cash toward the payable from the June 2 furniture purchase. 20 The company collected $3,000 cash for fees billed on June 4. 21 T.James invested an additional $10,000 cash in Sustain Company in exchange for common stock. 30 The company received $5,000 cash from a client for sustainability services for the next 3 months. Prepare general journal entries for the above transactions.
Answer:
June 1 T. James, owner, invested $11,000 cash in Sustain Company in exchange for common stock.
Dr Cash 11,000
Cr Commons stock 11,000
June 2 The company purchased $4,000 of furniture made from reclaimed wood on credit.
Dr Furniture 4,000
Cr Accounts payable 4,000
June 3 The company paid $600 cash for a 12-month insurance policy on the reclaimed furniture.
Dr Prepaid insurance 600
Cr Cash 600
June 4 The company billed a customer $3,000 in fees earned from preparing a sustainability report.
Dr Accounts receivable 3,000
Cr Service revenue 3,000
June 12 The company paid $4,000 cash toward the payable from the June 2 furniture purchase.
Dr Accounts payable 4,000
Cr Cash 4,000
June 20 The company collected $3,000 cash for fees billed on June 4.
Dr Cash 3,000
Cr Accounts receivable 3,000
June 21 T.James invested an additional $10,000 cash in Sustain Company in exchange for common stock.
Dr Cash 10,000
Cr Common stock 10,000
June 30 The company received $5,000 cash from a client for sustainability services for the next 3 months.
Dr Cash 5,000
Cr Deferred revenue 5,000
Which characteristic describes the privatization of Social Security?
A. increases the employer’s contribution to Social Security
B. raises the retirement age to claim full benefits to 70
C. enables Americans to invest their Social Security contributions in the stock market
D. reduces benefits across the board by 13 percent
E. obtains a loan from the Fed
Answer:
the answer is C because it makes sense...
Enables Americans to invest their Social Security contributions in the stock market - describes the privatization of Social Security. Hence option C is correct.
What are the characteristic of the privatization of Social Security?Privatization of Social Security refers to a proposal where individuals are allowed to invest their Social Security contributions into individual retirement accounts (IRAs) or other investments instead of the government-managed Social Security Trust Fund.
Under this system, individuals would have control over their retirement funds and would be able to invest in the stock market, bonds, and other financial instruments. This would also mean that individuals would be responsible for managing their own retirement funds and bearing the associated risks.
Options A and B do not describe privatization but rather refer to potential changes in the current Social Security system. A reduction in benefits, which is not necessarily associated with privatization. Option E is not related to the privatization of Social Security at all, but rather refers to obtaining a loan from the Federal Reserve.
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The city of Ashkelon, on the eastern end of the Mediterranean Sea, is one of the major cities of the Philistines. A powerful merchant family (known henceforth as The Family) of this city has to decide how to allocate its vast but finite resources to further their own wealth and the glory and influence of their state. Some trade routes use camel caravans and go to the southern deserts, where they may trade in salt and gold with the great inland African nations; others may go north and west, oversea by galley, toward the Greeks; others may push their foul-mouthed, humped mounts east, overland toward Sumeria, to trade in spices and the crafted goods specific to that region. Some of the routes are over more arduous terrain than others, so make take longer to pay off (no revenue is realized by The Family until the caravan returns to Ashkelon). The financial costs and returns of each route are as follows (in Phils, the currency of the Philistines:
Route Costs,Period 0 Revenue, Period1 Revenue, Period 2 Revenue, Period 3
African Route - 75,000 215,000
Greek Route - 50,000 140,000
Sumerian Route -125,000 385,000
Costs are incurred at the end of year zero, and revenues accrue at the end of Periods 1, 2, and 3, for each respective route (for instance, the African caravan returns at the end of period two, at which time its revenue is realized). The discount rate for the shipping company is 5%.
a. Calculate the NPV, B/C ratio, Payback period, and IRR for each route option
b. Rank the route options according to NPV, B/C ratio, Payback period, and IRR
c. If the company had unlimited funds, which trade routes would you recommend the family pursue? Why? Be sure to consider all combinations of routes, including multiple caravans on the same trade route
d. Given that the family can only invest 150,000 Phils, which combination of trade routes would you recommend pursuing? Why?
Answer:
African Route costs = -75,000, period 1 revenues = 215,000
Greek Route costs = -50,000, period 2 revenues = 140,000
Sumerian Route costs = -125,000, period 3 revenues = 385,000
discount rate = 5%
a) African route:
NPV = -75,000 + 215,000/1.05 = 129,762
B/C ratio = 215/75 = 2.87
Payback = 1 period
IRR = 187%
Greek route:
NPV = -50,000 + 140,000/1.05² = 76,984
B/C ratio = 140/50 = 2.8
Payback = 2 periods
IRR = 67%
Sumerian route
NPV = -125,000 + 385,000/1.05³ = 332,577
B/C ratio = 385/125 = 3.08
Payback = 3 periods
IRR = 45%
b) rank according to:
NPV = Sumerian route, African route, Greek route
B/C ratio = Sumerian route, African route, Greek route
Payback = African route, Greek route, Sumerian route
IRR = African route, Greek route, Sumerian route
c) if the family had unlimited resources, they should invest in the 3 routes since all their NPVs are positive.
d) African and Greek routes since they yield the highest gains (IRR).
how do you understand the word business finance?
Answer:
Business Finance means the funds and credit employed in the business. Finance is the foundation of a business. Finance requirements are to purchase assets, goods, raw materials and for the other flow of economic activities
Answer:
in my opinion and own words
Explanation:
Business Finance simply means the activity of managing money in financial status especially in companies or government organizations to run a business or activity or also a project so it simply means using Finances to run a business
.(Thank you and sorry)0
Question 7: Which of the following is true about entrepreneurs and risk?
A. Entrepreneurs take more risks than the average person.
B. Risk is an objective assessment.
C. Entrepreneurs who take greater risks tend to be more successful than those who take fewer or smaller risks.
D. Most successful entrepreneurs are very calculated risk takers
John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $890,000. John has used past financial information to estimate that the net cash flows (cash inflows less cash outflows) generated by the restaurant would be as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Years Amount
1-6 $89,000
7 79,000
8 69,000
9 59,000
10 49,000
If purchased, the restaurant would be held for 10 years and then sold for an estimated $790,000.
Required:
Determine the present value, assuming that John desires an 11% rate of return on this investment. (Assume that all cash flows occur at the end of the year.) (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)
Answer:
$763,057
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1-6 = $89,000
Cash flow in year 7 = 79,000
Cash flow in year 8 = 69,000
Cash flow in year 9= 59,000
Cash flow in year 10 = 49,000 + $790,000 = 839,000
I = 11%
Present value = $763,057
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Peabody, Inc., sells fireworks. The company’s marketing director developed the following cost of goods sold budget for April, May, June, and July. April May June July Budgeted cost of goods sold $79,000 $89,000 $99,000 $105,000 Peabody had a beginning inventory balance of $2,700 on April 1 and a beginning balance in accounts payable of $15,000. The company desires to maintain an ending inventory balance equal to 20 percent of the next period’s cost of goods sold. Peabody makes all purchases on account. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the month following purchase. Required a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Peabody will report on the end-of-quarter pro forma balance sheet. c. Prepare a schedule of cash payments for inventory for April, May, and June. d. Determine the balance in accounts payable Peabody will report on the end-of-quarter pro forma balance sheet. This is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Next Visit question mapQuestion 7 of 7 Total7 of 7 Prev
Answer:
Peabody, Inc.
a. Inventory Purchase Budget:
April May June
Budgeted cost of goods sold $79,000 $89,000 $99,000
Add Ending Inventory 17,800 19,800 21,000
Cost of Goods Available 4 Sale $96,800 118,800 120,000
Less Beginning Inventory 2,700 17,800 19,80
Purchases $94,100 $101,000 $100,200
b. The amount of Ending Inventory that Peabody will report on the end-of-quarter proforma balance sheet is:
$21,000
c. A Schedule of Cash Payments for Inventory:
April May June
70% in month of purchase 65,870 70,700 70,140
30% in the month following 15,000 28,230 30,300
Total payment $80,870 $98,930 $100,440
d. Balance of the Accounts Payable is:
$30,060
Explanation:
a) Data and Calculations:
1. Cost of Goods Sold Budget:
April May June July
Budgeted cost of goods sold $79,000 $89,000 $99,000 $105,000
Add Ending Inventory 17,800 19,800 21,000
Cost of Goods Available 4 Sale $96,800 118,800 120,000
Less Beginning Inventory 2,700 17,800 19,800 21,000
Purchases $94,100 $101,000 $100,200
Accounts Payable
Beginning balance $15,000 $28,230 $30,300
Purchases $94,100 $101,000 $100,200
Less payment:
70% in month of purchase 65,870 70,700 70,140
30% in the month following 15,000 28,230 30,300
Ending balance $28,230 $30,300 $30,060
Kingbird Windows manufactures and sells custom storm windows for three-season porches. Kingbird also provides installation service for the windows The installation process does not involve changes in the windows, so this service can be performed by other vendors. Kingbird enters into the following contract on July 1, 2017, with a local homeowner.
The customer purchases windows for a price of $2,470 and chooses Kingbird to do the installation. Kingbird charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $580. The customer pays Kingbird $1,940 (which equals the standalone selling price of the windows, which have a cost of $1,050) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Kingbird completes installation on October 15, 2017, and the customer pays the balance due.
Prepare the journal entries for Kingbird in 2017.
Answer:
Kingbird Windows
July 1, 2017:
Debit Cash Account $1,940
Credit Unearned Sales Revenue $1,940
To record the receipt of cash from customer.
Sept. 1, 2017:
Debit Unearned Sales Revenue $1,940
Credit Sales Revenue $1,940
To record the sale of windows.
Debit Inventory $1,050
Credit Cost of Goods Sold $1,050
To record the cost of goods sold.
Oct. 15, 2017:
Debit Cash Account $530
Credit Service Revenue $530
To record the service revenue earned for installation of windows.
Explanation:
Since Kingbird's selling price equals $1,940, which the customer pays in advance, this amount is taken as the sales revenue. Though the stand-alone price of installation is estimated to be $580, only $530 is recorded as revenue for installation because the $580 remains an estimate of a stand-alone item.
Last week, an investigative reporter for a major metropolitan newspaper discovered that the doctors conducting clinical trials of a new cancer treatment drug are also the principal shareholders in Cancer Solutions Inc. (CSI). CSI is the company developing and attempting to market the drug. Upon being interviewed by federal authorities, the doctors acknowledged their conflict of interest but reported that they were sold the shares at a 75% discount by CSI's chief financial officer. The CFO was concerned that CSI might not be able to meet its annual performance objectives and in turn pay his anticipated multimillion-dollar bonus.
Does an agency conflict exist between CSI's CFO and the company's shareholders?
a. Yes; CSI's CFO engaged in unethical conduct to manipulate the firm's short-term earnings and improve the likelihood of receiving his annual bonus.
b. Yes; the shares should not have been sold at a 75% discount, which is price discrimination.
c. No; professionals, such as doctors and professional money managers, would not participate in unethical activities.
d. No; in general, shareholders are satisfied with company officers engaging in any type of legal or illegal activity to ensure the chances of them receiving greater dividend payments.
Which of the following actions will help ease agency conflicts and better align managers' objectives with the firm's shareholder wealth?
a. Pay the manager a combination of salary and stock options (phased in over several years) that reward him or her for consistently increasing shareholder wealth.
b. Pay the manager a large base salary with a huge stock option package that matures on a single date.
Amalgamated Metals Corporation's stockholders are mostly individual investors, and there is relatively little institutional ownership. If several pension and mutual funds were to take large positions in Amalgamated Metals Corporation's stock, direct shareholder intervention would be___________ likely to motivate the firm's management.
Answer:
FIRST QUESTION
A)Yes; CSI's CFO engaged in unethical conduct to manipulate the firm's short-term earnings and improve the likelihood of receiving his annual bonus.
SECOND QUESTION
A)Pay the manager a combination of salary and stock options (phased in over several years) that reward him or her for consistently increasing shareholder wealth.
Explanation:
We are informed from the question about an investigative reporter for a major metropolitan newspaper discovery about the doctors conducting clinical trials of a new cancer treatment drug are also the principal shareholders in Cancer Solutions Inc. And how The CFO was concerned that CSI might not be able to meet its annual performance objectives and in turn pay his anticipated multimillion-dollar bonus.
In this case there is an agency conflict that exist between CSI's CFO and the company's shareholders, this is because the, CSI's CFO engaged in unethical conduct to manipulate the firm's short-term earnings and improve the likelihood of receiving his annual bonus.
Agency conflict in finance, is also regarded as conflict of interest, usually occur between the management and the shareholders of that company, it is conflict that usually emerge when those that are required for certain responsibility like interest of principal decide to divert the the authority for their own benefits. However,agency conflict can be minimized by allowing transparency and some ways.
It should be noted here that the CSI's CFO engaged in unethical conduct to manipulate the firm's short-term earnings and improve the likelihood of receiving his annual bonus which is the reason behind the conflict because he act on his own interest.
SECOND QUESTION,
Which of the following actions will help ease agency conflicts and better align managers' objectives with the firm's shareholder wealth?
From the explanation of Agency conflict from First question it should be noted that there are some actions that will help to ease agency conflicts and better align managers' objectives with the firm's shareholder wealth such
Payment of the manager a combination of salary and stock options (phased in over several years) that reward him or her for consistently increasing shareholder wealth.
The payment of the stock options to the manager will allow selling of stock at agreed price as well as date.
Amalgamated Metals Corporation's stockholders are mostly individual investors, and there is relatively little institutional ownership. If several pension and mutual funds were to take large positions in Amalgamated Metals Corporation's stock, direct shareholder intervention would be______more likely_____ likely to motivate the firm's management
Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $8.40 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 20,600 shirts to break-even. The after tax net income last year was $5,220. Donnelly's expectations for the coming year include the following: (CMA adapted) The sales price of the T-shirts will be $12. Variable cost to manufacture will increase by one-third. Fixed costs will increase by 10%. The income tax rate of 40% will be unchanged. The selling price that would maintain the same contribution margin ratio as last year is:
Answer:
$11.23
Explanation:
Calculation for the selling price that would maintain the same contribution margin ratio as last year
Selling price per unit = $8.40
Variable cost per unit = $2.25
First step is to the Contribution margin per unit using this formula
Contribution margin per unit = Selling price per unit-Variable cost per unit
Contribution margin per unit= $8.40-$2.25
Contribution margin per unit = $6.15
Second step is to find the Contribution margin ratio using this formula
Contribution margin ratio= Contribution margin / Selling price per unit
Contribution margin ratio= $6.15/$8.40
Contribution margin ratio= 0.73*100
Contribution margin ratio=73%
Third step is to calculate for the Increase in variable cost per unit For coming year
Variable cost per unit will increase by 1/3
Increase in variable cost per unit = 6.15 x 1/3
Increase in variable cost per unit= $2.05
Variable cost per unit = 6.15+2.05
Variable cost per unit = $8.2
Last step is to find the selling price per unit using this formula
Selling price per unit =Variable cost per unit /Contribution margin ratio
Let plug in the formula
Selling price per unit = $8.2/0.73
Selling price per unit= $11.23
Therefore the selling price that would maintain the same contribution margin ratio as last year is $11.23
A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecasted to be 46 percent of capacity; actual usage was 56 percent of capacity. A smoothing constant of .05 is used.
a. Prepare a forecast for September. (Round your final answer to 2 decimal places.) Forecast for September percent of capacity
b. Assuming actual September usage of 64 percent, prepare a forecast for October usage. (Round your answer to 2 decimal places.) Forecast for October percent of capacity
Answer:
a. Forecast (t) = ∝Actual (t-1) +b (1 - ∝) * Forecast (t-1)
= 0.05 * 56 +(1 - 0.05) * 46
= 2.8 + 0.95*46
= 2.8 + 43.7
= 46.5
Forecast for September is 46.5%
b. Forecast(t) = ∝Actual (t-1) + (1-∝)*Forecast(t-1)
= 0.05 * 64 + (1-0.05) * 46.5
= 3.2 + (0.95)*46.5
= 3.2 + 44.175
= 47.375
= 47.40
Forecast for October is 47.40%
The city of Ashkelon, on the eastern end of the Mediterranean Sea, is one of the major cities of the Philistines. A powerful merchant family (known henceforth as The Family) of this city has to decide how to allocate its vast but finite resources to further their own wealth and the glory and influence of their state. Some trade routes use camel caravans and go to the southern deserts, where they may trade in salt and gold with the great inland African nations; others may go north and west, oversea by galley, toward the Greeks; others may push their foul-mouthed, humped mounts east, overland toward Sumeria, to trade in spices and the crafted goods specific to that region. Some of the routes are over more arduous terrain than others, so make take longer to pay off (no revenue is realized by The Family until the caravan returns to Ashkelon). The financial costs and returns of each route are as follows (in Phils, the currency of the Philistines):
Route Costs, Period 0 Revenue, Period1 Revenue, Period 2 Revenue, Period 3
African Route -75,000 215,000
Greek Route -50,000 140,000
Sumerian Route -125,000 385,000
Costs are incurred at the end of year zero, and revenues accrue at the end of Periods 1, 2, and 3, for each respective route (for instance, the African caravan returns at the end of period two, at which time its revenue is realized). The discount rate for the shipping company is 5%.
Required:
a. Calculate the NPV, B/C ratio, Payback period, and IRR for each route option.
b. Rank the route options according to NPV, B/C ratio, Payback period, and IRR.
c. If the company had unlimited funds, which trade routes would you recommend the family pursue? Why? Be sure to consider all combinations of routes, including multiple caravans on the same trade route.
d. Given that the family can only invest 150,000 Phils, which combination of trade routes would you recommend pursuing? Why?
Answer:
African Route costs = -75,000, period 1 revenues = 215,000
Greek Route costs = -50,000, period 2 revenues = 140,000
Sumerian Route costs = -125,000, period 3 revenues = 385,000
discount rate = 5%
a) African route:
NPV = -75,000 + 215,000/1.05 = 129,762
B/C ratio = 215/75 = 2.87
Payback = 1 period
IRR = 187%
Greek route:
NPV = -50,000 + 140,000/1.05² = 76,984
B/C ratio = 140/50 = 2.8
Payback = 2 periods
IRR = 67%
Sumerian route
NPV = -125,000 + 385,000/1.05³ = 332,577
B/C ratio = 385/125 = 3.08
Payback = 3 periods
IRR = 45%
b) rank according to:
NPV = Sumerian route, African route, Greek route
B/C ratio = Sumerian route, African route, Greek route
Payback = African route, Greek route, Sumerian route
IRR = African route, Greek route, Sumerian route
c) if the family had unlimited resources, they should invest in the 3 routes since all their NPVs are positive.
d) African and Greek routes since they yield the highest gains (IRR).
Refer to the following items on the balance sheets of a firm for the years ending December 31, 2018 and 2019.
Item 2018 2019
Accounts Payable $729,500 $917,300
Long Term Debt $1,267,700 $1,093,400
Common Stock ($1 par) $2,184,000 $2,471,300
Retained Earnings $3,227,100 $3,419,800
If the firm's interest expense on its 2019 income statement was $312,920, calculate the net cash flow to the firm's creditors in 2019.
a) $312,920
b) $138,620
c) $425,920
d) $487,220
Answer: d) $487,220
Explanation:
The net cash flow to creditors in 2019 is calculated by the formula;
= Long term debt in 2018 - Long term debt in 2019 + Interest expense in 2019
= 1,267,700 - 1,093,400 + 312,920
= $487,220
On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 4,000 units of Comfort Office Keyboard to one of its clients, Bionics, Inc., at a fixed price of $68,000, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 2021. As part of the contract, the seller offers a 25% discount coupon to Bionics for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Meta Computer estimates a 50% probability that Bionics will redeem the 25% discount voucher, and that the coupon will be applied to $40,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is $19.00 per unit. Required: 1. How many performance obligations are in this contract
Answer:
this contract includes 2 performance obligations
Explanation:
the performance obligations are as follows:
performance obligation 1 refers to providing 4,000 keyboards to Bionicsperformance obligation 2 refers to the special discount options which could be redeemed by the client resulting in a material right. If the client had not made this purchase, then it wouldn't be entitled to the special discount.A performance obligation is created whenever a business promises a customer that it will deliver or provide a good or service.
Your annual sales are $240,000. The sales are spread evenly over four quarters. What are your sales in each quarter?
Answer:
60000
Explanation:
240,000/4
Answer:
60000
Explanation:
15. Your company contracted for a 30-second commercial (an advertisement) that aired during the Super Bowl at a cost of $1.2 million. It is legally obligated to pay for the commercial, but has not yet done so. How is your company's balance sheet affected on the day the commercial aired? It increases both assets and liabilities by $1.2 million. It increases assets and decreases stockholders' equity by $1.2 million each. It does not affect the balance sheet. D) It increases liabilities and decreases stockholders' equity by $1.2 million each.
Answer: D) It increases liabilities and decreases stockholders' equity by $1.2 million each.
Explanation:
Even though the company has not paid for the advertisement, the expense has already been incurred and by the Accrual principle of accounting it needs to be recorded.
It will therefore be recorded as an expense which will reduce the Income for the year which is a Stockholder equity account so therefore it will reduce the Stockholder account by $1.2 million.
Because the company has not yet paid for the advert, the amount have to be recorded as a liability to the company so liabilities will increase by $1.2 million.
Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2021. The units have a list price of $550 each, but Thomas was given a 30% trade discount. The terms of the sale were 3/10, n/30. Exercise 7-5 (Algo) Part - 1 Required: 1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the gross method of accounting for cash discounts is used. 2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the gross method of accounting for cash discounts is used.
Answer:
1. November 17
Accounts receivable 77,000
Sales revenue 77,000
November 26
Dr Cash 74,690
Dr Sales Discounts 2,310
Cr Accounts receivable 77,000
2. November 17
Dr Accounts receivable 77,000
Cr Sales revenue 77,000
December 15
Dr Cash 77,000
Cr Accounts receivable 77,000
Explanation:
1. Preparation of the journal entries to record the sale on November 17 and collection on November 26, 2021
November 17
Accounts receivable 77,000
Sales revenue 77,000
[Price = 200 units * $550 *(100%-30%) = 77,000]
November 26
Dr Cash 74,690
(77,000-2,310)
Dr Sales Discounts 2,310
(77,000*3%)
Cr Accounts receivable 77,000
2.Preparation of the journal entries to record the sale on November 17 and collection on December 15, 2021,
November 17
Dr Accounts receivable 77,000
Cr Sales revenue 77,000
[Price = 200 units * $550 *(100%-30%) = 77,000]
December 15
Dr Cash 77,000
Cr Accounts receivable 77,000
The Accounts receivable is 77,0001. A journal is a thorough account that documents all of a company's financial activities. It is used for account reconciliation in the future and for the transfer of data to other formal accounting records, including the general ledger.
The journal entries are provided below:
November 17
Accounts receivable 77,000
Sales revenue 77,000
November 26
Dr. Cash 74,690
Dr. Sales Discounts 2,310
Cr Accounts receivable 77,000
2. November 17
Dr. Accounts receivable 77,000
Cr Sales revenue 77,000
December 15
Dr. Cash 77,000
Cr Accounts receivable 77,000
1. Preparation of the journal entries to record the sale on November 17 and collection on November 26, 2021
November 17
Accounts receivable 77,000
Sales revenue 77,000
[Price = 200 units * $550 *(100%-30%) = 77,000]
November 26
Dr. Cash 74,690
(77,000-2,310)
Dr. Sales Discounts 2,310
(77,000*3%)
Cr Accounts receivable 77,000
2. Preparation of the journal entries to record the sale on November 17 and collection on December 15, 2021,
November 17
Dr. Accounts receivable 77,000
Cr Sales revenue 77,000
[Price = 200 units * $550 *(100%-30%) = 77,000]
December 15
Dr. Cash 77,000
Cr Accounts receivable 77,000.
A journal often uses the double-entry accounting approach and includes the date of a transaction, the accounts that were impacted, and the sums.
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Time period used to compute indirect cost rates. Capitola Manufacturing produces surfboards. The company uses a normal-costing system and allocates manufacturing overhead on the basis of direct manufacturing labor-hours. Most of the company's production and sales occur in the first and second quarters of the year. The company is in danger of losing one of its larger customers, Pacific Wholesale, due to large fluctuations in price. The owner of Capitola has requested an analysis of the manufacturing cost per unit in the second and third quarters. You have been provided the following budgeted information for the coming year:
Quarter
1 2 3 4
Surfboards manufactured and sold 500 400 100 250
It takes 2 direct manufacturing labor-hours to make each board. The actual direct material cost is $65.00 per board. The actual direct manufacturing labor rate is $20 per hour. The budgeted variable manufacturing overhead rate is $16 per direct manufacturing labor-hour. Budgeted fixed manufacturing overhead costs are $20,000 each quarter.
1. Calculate the total manufacturing cost per unit for the second and third quarters assuming the company allocates manufacturing overhead costs based on the budgeted manufacturing overhead rate determined for each quarter.
2. Calculate the total manufacturing cost per unit for the second and third quarters assuming the company allocates manufacturing overhead costs based on an annual budgeted manufacturing overhead rate.
3. Capitola Manufacturing prices its surfboards at manufacturing cost plus 20%. Why might Pacific Wholesale be seeing large fluctuations in the prices of boards? Which of the methods described in requirements 1 and 2 would you recommend Capitola use? Explain.
Answer:
1) production cost per unit (Q2) = $187
production cost per unit (Q3) = $337
2) production cost per unit (Q2) = $201
production cost per unit (Q3) = $201
3) Capitola should allocate manufacturing costs based on total annual production because if it allocates them on a quarterly basis, the unit costs in the quarters were production is lower will be much higher. E.g. in Q3 only 100 units were produced, therefore production costs are 80% higher than Q2 costs. If costs are allocated on an annual basis, then production costs will be stable and the company will benefit. The company actually lost money when it sold its production during quarters 1 and 2 since overhead costs were not correctly applied.
Explanation:
Quarter
1 2 3 4
Units produced 500 400 100 250
costs per unit:
2 labor hours x $20 = $40direct materials = $65variable overhead = $16total = $121 per unit
fixed overhead = $20,000
1) total production costs second quarter:
materials = 400 x $65 = $26,000
direct labor = 400 x $40 = $16,000
variable overhead = 400 x 2 x $16 = $12,800
fixed overhead = $20,000
total = $74,800
production cost per unit (Q2) = $187
total production costs third quarter:
materials = 100 x $65 = $6,500
direct labor = 100 x $40 = $4,000
variable overhead = 100 x 2 x $16 = $3,200
fixed overhead = $20,000
total = $33,700
production cost per unit (Q3) = $337
2) total production costs second quarter:
materials = 400 x $65 = $26,000
direct labor = 400 x $40 = $16,000
variable overhead = 400 x 2 x $16 = $12,800
fixed overhead = ($80,000 / 1,250) x 400 = $25,600
total = $80,400
production cost per unit (Q2) = $201
total production costs third quarter:
materials = 100 x $65 = $6,500
direct labor = 100 x $40 = $4,000
variable overhead = 100 x 2 x $16 = $3,200
fixed overhead = ($80,000 / 1,250) x 100 = $6,400
total = $20,100
production cost per unit (Q3) = $201
Calculate GDP, NDP, NI, PI, and DI from the following information. All numbers are in billions of dollars. Wages $ 26,500 Consumption Expenditures $36,000 Government Expenditures $18,500 Imports $20,330 Exports $18,580 Property Taxes $16,000 Sales Taxes $9,715 Retained earnings $1,310 Personal Income Taxes $2,200 Private Domestic Investment Expenditures $15,650 Interest Income $1,940 Pay Roll taxes $1,300 Transfer Payments $880 Depreciation $1,300 Net Income Made Abroad by Americans $160 Indirect Business taxes $2,520 Corporate Income Taxes $320 2. Calculate a) labor force, b) labor force participation rate, and c) unemployment rate if the population of a country is 380 million people out which 92 million are under the age of 16, 58 million don't want to work and 20 million are looking for work. 3. Calculate the inflation rate from 2004-2005 if the index number in 2005 was 120 and the index number in 2004 was 135.
Answer:
GDP = Consumption expenditure + Private Investment Expenditure + Government expenditure + Export - Import
= $36,000 + $15,650 + $18,500 + $18,580 - $20,330
= $68,400
NDP = GDP - Depreciation
= $68,400 - $1,300
= $67,100
NI = NDP - Indirect business tax - Transfer payment + Net income Made abroad by Americans
= $67,100 - $2,520 - $880 + $160
= $63,860
PI = NI - Corporate income tax - Retained earnings + Transfer payments
= $63,860 - $320 - $1,310 + $880
= $63,119
DI = PI - Personal income Taxes
= $63,119 - $2,200
= $60,910
a. Labor force = Total Population - (People under age of 16 + People who don’t work)
Labor force = $380 million - ($92 million + $58 million)
Labor force = $230 million.
b. Labor force participation rate = Labor force/ Total population
Labor force participation rate = (60/100) * 100
Labor force participation rate = 60%
c. Unemployment rate = (Unemployed / Labor force) * 100
Unemployment rate = ($20 million / $230 million) * 100
Unemployment rate = 8.69%
HELP ME PLSSS SOMEONE HELPP
tom sold 3 cars ( a total value of $112,500) in the month of january. it is paid only by commission for its seller. he receives a commission of 7%. what is tom’s salary for the month of january?
Answer:
$7,875
Explanation:
John sold three cars in January for a total of $112,500. If he is paid on commission only at the rate of 7%, his income in January will be
7 percent of $112,500
=7/100 x $112,500
=0.07 x $112,500
=$7,875
X Corporation reported the following data for the month of August: Inventories: Beginning Ending Raw materials $36,000 $24,000 Work in process $23,000 $17,000 Finished goods $37,000 $55,000 Additional information: Budgeted manufacturing overhead cost $672,000 Budgeted direct labor cost $1,680,000 Raw materials purchased $79,000 Manufacturing overhead cost incurred $51,975 Indirect materials included in manufacturing overhead cost incurred $8,000 Manufacturing overhead cost applied to Work in Process using direct labor cost 37800 Job #82 started in August Direct materials used $4,000 Direct labor cost $6,000 Round your answers to the nearest dollar. Fill in the blank without $ or comma or period, e.g., 12345 What was Job# 82's total manufacturing cost in August using normal costing?
Answer:
$12,400
Explanation:
The computation of Job 82's total manufacturing cost in August using normal costing us shown below:-
Overhead rate = Budgeted Overhead ÷ Budgeted Labor cost
= $672,000 ÷ 1,680,000
= 40%
Applied overhead = 6000 × 40%
= 2,400
The Total cost of Job 82 = Direct material + Direct labor + Overhead applied
= $4,000 + $6,000 + $2,400
= $12,400
oca, Inc., manufactures and sells two products: Product M6 and Product X7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated MOH Cost Expected Activity Product M6 Product X7 Total Labor related DLH $152,100 3,000 4,800 7,800 Product orders orders $63,035 400 300 700 Order size Machine hours $505,452 3,700 3,600 7,300 The total overhead to be applied to Product X7 using activity-based costing is closest to:
Answer:
$350,708
Explanation:
Computation for the total overhead to be applied to Product X7 using activity-based costing
First step is the Computation of Activity rate
Estimated overhead cost(a) Total expected activity(b) Activity Rate (a)÷(b)
Labor related $152,100 7,800 $19.50
Production order $63,035 700 $90.05
Order size $505,452 7,300 $69.24
Second step is to the Computation of the total overhead to be applied to Product X7
Activity cost pool and Activity Rate Expected Activity units (Product X7) Activity cost
Labor related $19.50 3,000 $58,500
Production order $90.05 400 $36,020
Order size $69.24 3,700 $256,188
Total Overhead applied to product X7 $350,708 ($58,500+$36,020+$256,188)
Therefore the total overhead to be applied to Product X7 using activity-based costing is closest to:$350,708
A can of dog food is on sale for 20% off the original price. If the original price is $1.35, what is the discount?
Answer:
this is pretty simple $ 00.27
You’ve observed the following returns on Yamauchi Corporation’s stock over the past five years: −10 percent, 24 percent, 21 percent, 11 percent, and 8 percent. The average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 4.1 percent. a. What was the average real return on the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the average nominal risk premium on the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
Year Return
1 -0.10
2 0.24
3 0.21
4 0.11
5 0.06
0.540
Average return = 0.540 / 5
Average return =0.108
Average return = 10.80%
a. Average Real Return = [( 1 + Average return) / (1+ inflation rate)] - 1
Average Real Return = [(1+0.1080)/(1+0.081)] - 1
Average Real Return = 0.0747
Average Real Return = 7.47%
b. Average Nominal Risk Premium = Average Return - Risk free rate
Average Nominal Risk Premium = 0.1080 - 0.041
Average Nominal Risk Premium = 0.067
Average Nominal Risk Premium = 6.70%
The average real return on the stock is 7.47% while the average nominal risk premium on the stock is 6.70%.
From the information given, the average return will be calculated thus:
= 0.540 / 5
= 0.108
Average return = 10.80%
Therefore, the average real return will be:
= [( 1 + Average return) / (1+ inflation rate)] - 1
= [(1+0.1080) / (1+0.081)] - 1
= 0.0747
= 7.47%
Also, the average nominal risk premium will be:
= Average Return - Risk free rate
= 0.1080 - 0.041
= 0.067
= 6.70%
Therefore, the average real return on the stock is 7.47% while the average nominal risk premium on the stock is 6.70%.
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Barton and Fallows form a partnership by combining the assets of their separate businesses. Barton contributes accounts receivable with a face amount of $48,000 and equipment with a cost of $193,000 and accumulated depreciation of $103,000. The partners agree that the equipment is to be priced at $90,000, that $3,100 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,300 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Fallows contributes cash of $28,700 and merchandise inventory of $56,000. The partners agree that the merchandise inventory is to be priced at $60,500.Journalize the entries to record in the partnership accounts (a) Barton's investment and (b) Fallows' investment. If an amount box does not require an entry, leave it blank or enter "0".
Answer:
(a) Barton's investment
Date Account Titles and Explanation Debit Credit
Accounts receivables $44,900
($48,000 - $3,100)
Equipment $90,000
Allowances for uncollectible $1,300
Barton Capital $133,600
(To record Barton's contribution)
(b) Fallows' investment
Date Account Titles and Explanation Debit Credit
Cash $28,700
Merchandise Inventory $60,500
Fallow Capital $89,200
(To record Fallow's contribution)
Mickey is a 12-year-old dialysis patient. Three times a week for the entire year he and his mother, Sue, drive 20 miles one way to Mickey’s dialysis clinic. On the way home, they go 10 miles out of their way to stop at Mickey’s favorite restaurant. Their total round trip is 50 miles per day. How many of those miles, if any, can Sue use to calculate an itemized deduction for transportation? Use the mileage rate in effect for 2019.
Answer:
The right approach will be "$ 1123.2".
Explanation:
The number of miles to be used will be:
= [tex]40 \ miles \ round \ trip\times 3 \ trips \ per \ week\times 52 weeks[/tex]
= [tex]6240 \ miles[/tex]
Now,
The item deduction will be:
= [tex]Number \ of \ used \ miles\times 18 \ cents \ per \ mile[/tex]
= [tex]6240\times 1123.2[/tex]
= [tex]1123.2[/tex] ($)
You sell $4,000 per week in bags of dog food at 30% margin. You sell $3,000 per week in dog toys at 45% margin. Which generates more margin for you?
The Candle Shop experienced the following events during its first year of operations, Year1
1. Acquired cash by issuing common stock
2. Paid a cash dividend to the stockholders.
3. Paid cash for operating expenses.
4. Borrowed cash from a bank.
5. Provided services and collected cash.
6. Purchased land with cash.
7. Determined that the market value of the land is higher than the historical cost.
Required
a. Indicate whether each event is an asset source, use, or exchange transaction. (Select "NA" if there is no effect on the "Activity classification") Event Activity classification 2. 3. 4. 5. 6. 7
b. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases (), decreases (D), or does not affect (NA) each element of the financial statements. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), financing activities (FA), or not applicable (NA). The first transaction is shown as an example
THE CANDLE SHOP Horizontal Statements Model for Year 1 Balance Sheet Income Statement Statement of Cash Flows Event O. Assets Liabilities+Stockholders' Equity Effect onType CommonRetained RevenueExpense Net Income Cash LandNotes Cash Activity Earnin +NA Payable +NA = | NA NA - NA -INA FA 2 4 5. 7
Answer:
a) 1. Acquired cash by issuing common stock ⇒ Asset Source
2. Paid a cash dividend to the stockholders ⇒ Asset Use
3. Paid cash for operating expenses ⇒ Asset Use
4. Borrowed cash from a bank ⇒ Asset Source
5. Provided services and collected cash ⇒ Asset Source
6. Purchased land with cash ⇒ Asset Exchange
7. Determined that the market value of the land is higher than the historical cost ⇒ Not applicable
b) I used an excel spreadsheet because there is not enough room here.
What is one main objective in the study of economics?
recognizing the types of services available to everyone
recognizing the relationship between producers and consumers
recognizing the reasons why consumers supply services
recognizing the difference between producers and consumers
Answer: brecognizing the difference between producers and consumers
Explanation:
Economics is the part of social studies that helps us for knowing the production, distribution, and consumption of goods and services to the targeted customers. it mainly focuses upon the environmental and market factor that helps in the marketing and production of goods and services.
One of the main objectives for the study of economics is to recognize the difference between the producer and the consumers.
Reason:
The main objective of economics is to determine and bifurcate the producer and consumer as they are both different.
The producer is the person who is making the finished goods from the raw materials. The producer takes the raw materials either from the market or from the farmer. The entire cost of goods is determined by the producer by the name of the direct cost of goods.
While the consumer is the final user of the produced items. The consumer is the last person in the product cycle. The consumer has to pay the entire cost and expenses being added by various parties of the product cycle.
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objective of management