Answer:
the judicial power shall be vested in one suprene court and in such lower courts as may be established by law.
A (Static) Using T accounts to record all business transactions. LO 3-1, 3-2, 3-4
The following accounts and transactions are for Vincent Sutton, Landscape Consultant.
Transactions:
Sutton invested $90,000 in cash to start the business.
Paid $6,000 for the current month’s rent.
Bought office furniture for $10,580 in cash.
Performed services for $8,200 in cash.
Paid $1,250 for the monthly telephone bill.
Performed services for $14,000 on credit.
Purchased a computer and copier for $18,000; paid $7,200 in cash immediately with the balance due in 30 days.
Received $7,000 from credit clients.
Paid $2,800 in cash for office cleaning services for the month.
Purchased additional office chairs for $5,800; received credit terms of 30 days.
Purchased office equipment for $22,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
Issued a check for $9,400 to pay salaries.
Performed services for $14,500 in cash.
Performed services for $16,000 on credit.
Collected $8,000 on accounts receivable from charge customers.
Issued a check for $2,900 in partial payment of the amount owed for office chairs.
Paid $725 to a duplicating company for photocopy work performed during the month.
Paid $1,280 for the monthly electric bill.
Sutton withdrew $5,500 in cash for personal expenses.
Post the above transactions into the appropriate T accounts.
Analyze:
What liabilities does the business have after all transactions have been recorded?
Complete this question by entering your answers in the tabs below.
Transactions
Analyze
Post the above transactions into the appropriate T accounts.
Cash Accounts Receivable
Bal.
Bal.
Office Furniture Office Equipment
Bal. Bal.
Accounts Payable Vincent Sutton, Capital
Bal.
Bal.
Vincent Sutton, Drawing Fees Income
Bal.
Bal.
Rent Expense Utilities Expense
Bal. Bal.
Salaries Expense Telephone Expense
Bal. Bal.
Miscellaneous Expense
Bal.
Complete this question by entering your answers in the tabs below.
What liabilities does the business have after all transactions have been recorded?
Liabilities
Answer:
It is very difficult to record T accounts since there is not a lot of room here and things get complicated very easily. So I used an excel spreadsheet to post the accounts on an accounting equation format.
Assets increase when they are debited and they decrease when they are credited. The opposite happens to liabilities and equity, they increase when they are credited and decrease when they are debited. Service revenue is credited, while all expenses are debited.
The reason why the drawings account has a negative balance is that even though it is an equity account, it has a debit balance since it decreases capital.
In order for the equation to balance, you have to close the accounts, but that was not a requirement of the question.
What liabilities does the business have after all transactions have been recorded?
the only liability account is accounts payable with a credit balance of $24,700
On December 31, 2020, Reagan Inc. signed a lease with Silver Leasing Co. for some equipment having a seven-year useful life. The lease payments are made by Reagan annually, beginning at signing date. Title does not transfer to the lessee, so the equipment will be returned to the lessor on December 31, 2026. There is no purchase option, and Reagan guarantees a residual value to the lessor on termination of the lease. Reagan's lease amortization schedule appears below:
Decrease in Outstanding
Dec. 31 Payments Interest Balance Balance
2020 $410,442
2020 $74,700 $74,700 335,742
2021 $74,700 $20,145 54,555 281,187
2022 $74,700 16,871 57,829 223,358
2023 $74,700 13,401 61,299 162,059
2024 $74,700 9,724 64,976 97,083
2025 $74,700 5,825 68,875 28,208
2026 $29,900 1,692 28,208 0
What is the amount of residual value guaranteed by Reagan to the lessor?
Answer: $29,900
Explanation:
Residual value guaranteed is the amount that the lessee promises to pay in the last year including the repayment and the interest payment.
= $28,208 + 1,692
= $29,900
Your firm has taken out a loan with APR (compounded monthly) for some commercial property. As is common in commercial real estate, the loan is a -year loan based on a -year amortization. This means that your loan payments will be calculated as if you will take years to pay off the loan, but you actually must do so in years. To do this, you will make equal payments based on the -year amortization schedule and then make a final 60th payment to pay the remaining balance.
A. What will your monthly payments be?
B. What will your final payment be?
Answer:
Hello some parts of your question is missing below is the complete question
Your firm has taken out a $500000 loan with 9% APR (compounded monthly) for some commercial property. As is common in commercial real estate, the loan is a five-year loan based on a 15-year amortization. This means that your loan payments will be calculated as if you will take 15 years to pay off the loan, but you actually must do so in five years. To do this, you will make 59 equal payments based on the 15 -year amortization schedule and then make a final 60th payment to pay the remaining balance.
answer : A) $5071.33
B ) $405410.94
Explanation:
A )calculate monthly payments
Loan amount = $500000
Rate = 9%
Monthly rate = ( 9% / 12 )= 0.75%
Time / period = (15years* 12 ) = 180 months
calculate the monthly payments =PMT (monthly rate ,period - rate) ( using excel )
= $5071.33
B) Calculate the final payment
PV for 59 payments + PV for 60th payment = loan amount
first we calculate the PV for 59 payments
monthly payments = $5071.33
period = 59 months
monthly rate = 0.75%
PV for 59 payments = PMT( monthly rate, period, - monthly payments ) (using excel )
= $241,064.16
Hence PV for The final payment = loan amount - PV for 59 payments
= 500000 - 241064.16 = $258,935.84
Finally Calculate the Final payment
PV = $258935.84
monthly rate = 0.75%
period = 60 months
Final payment ( future value ) =FV( monthly rate, period,, - PV ) ( using excel)
= $405410.94
Is cost minimization equivalent or identical the concept of product maximization. True of False. Explain
Answer:
True
Explanation:
Given a certain production level, cost minimization is equal to product maximization. Cost minimization refers to the production level where average total cost per unit is lowest. On the other hand, production maximization refers to maximizing product output given certain restraints, e.g. amount of raw materials, number of labor hours, etc. Product maximization basically refers to the efficiency of production.
If someone can achieve product maximization and cost minimization, they should be maximizing profit.
Consider the following information for stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.)
Stock Expected Return Standard Deviation Beta
A 8.60% 14% 0.8
B 9.95 14 1.1
C 11.75 14 1.5
Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 5%, and the market is in equilibrium. (That is, required returns equal expected returns.)
Required:
a. What is the market risk premium?
b. What is the beta of Fund P?
c. What is the required return of Fund P?
d. Would you expect the standard deviation of Fund P to be less than 15%, equal to 15% or greater than 15%? Explain.
Question attached
Answer and Explanation:
Find attached
Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the following , identify which type of activity is described by each statement. (Operating Activity Investing Activity Financing Activity)
a. Yum Co. uses cash to repurchase 10% of its common stock.
b. DigiInk Printing Co. buys new machinery to ramp up its production capacity.
c. D and W Co. sells its last season’s inventory to a discount store.
d. A company records a loss of $70,000 on the sale of its outdated inventory.
Answer:
a. Yum Co. uses cash to repurchase 10% of its common stock. (Financing activity)
b. DigiInk Printing Co. buys new machinery to ramp up its production capacity. (Investing activity)
c. D and W Co. sells its last season’s inventory to a discount store. (Operating activity)
d. A company records a loss of $70,000 on the sale of its outdated inventory. (Operating activity)
Explanation:
Cash flow statement shows how cash is used and obtained in a business. There are different activities that influence cash flow. Below are the activities:
- Operating activities are those that include normal business operations like buying and selling of inventory, interest payments, and salaries.
- Investing activities involves use of cash for investment like purchase or sale of assets, merger and acquisitions payments, and purchase of equipment.
- Financing activities includes cash used to purchase or sell equity such as shares, payment of dividends, and repayment of principal from debt
g Benton, Inc. has decided to discontinue manufacturing its Quantum model personal organizer. Currently the company has a number of partially completed personal organizers on hand. The company has spent $111 per unit to manufacture these organizers. To complete each unit, costs of $14 for material and $15 for direct labor will be incurred. In addition, $9 of variable overhead and $34 of allocated fixed overhead (relating primarily to depreciation of plant and equipment) will be added per unit. If Benton, Inc., completes the organizers, it can sell them for $124 per unit. Another manufacturer is interested in purchasing the partially completed organizers for $107 per unit and converting them into inventory tracking devices. Determine whether Benton should complete the personal organizers or sell them in their current state.
Answer:
Sell them in their current state
Explanation:
Ignore the cost already incurred ($111) since it is a sunk cost (already spent) and should not affect future decision.
1) The incremental cost of completing each unit = material cost ($14) + direct labour cost ($15) + variable overhead cost ($9) = $38 (allocated fixed cost was not included since it is a non-cash item)
With a sale price of $124, the profit per unit = $124 - $38 = $89.
2) Whereas, selling the partially completed unit will earn $107 (without any additional cost).
Since selling the partially completed unit earns higher incremental value than completing manufacture before sale, selling is the optimal decision.
f the present value of the annuity is $45,000, what should be the size of each payment from the annuity
Answer:
"$571.92" is the correct solution.
Explanation:
The given problem is incomplete. Please find attachment of the complete question.
The given values are:
Payments will be made for
= [tex]8\frac{1}{4} \ years[/tex]
At the rate of:
= [tex]5.75 \ percent[/tex]
= [tex]0.0575 \ per \ year[/tex]
The present value of annuity is:
= [tex]45000[/tex]
Let the size of each payment will be "d".
Now,
⇒ [tex]45000=\frac{1-(1+\frac{0.0575}{12})^{-99}}{\frac{0.0575}{12}}\times d[/tex]
⇒ [tex]d = 571.92[/tex] ($)
Which activities are often required of someone who is in the performing arts?
A. writing creatively, remembering a script, and entertaining people
B. going on auditions, using pottery wheels, and scheduling tasks
C. creating artwork, designing a dance routine, and interviewing people to get information
D. coordinating performances, attending events to market themselves, and operating technical equipment
Answer:
It's A: writing, a script, and entertaining people
Explanation:
did on edge 2020
Share one or two specific examples of how you will use the concepts or strategies presented in this class to contribute to your academic and career success.
Answer:
Explanation:
e concepts or strategies presented in this class
Indicate which activities of Stockton Corporation violated the rights of a stockholder who owned one share of common stock.
a. Paid the stockholder a smaller dividend per share than another common stockholder.
b. Did not allow the stockholder to make decisions regarding hiring and firing employees.
c. Rejected the stockholder's request to vote via proxy because she was home sick.
d. The company did not provide all stockholders with timely financial reports.
e. In liquidation, paid the common shareholder after preferred stockholders were already paid.
Answer:
a. Paid the stockholder a smaller dividend per share than another common stockholder.
c. Rejected the stockholder's request to vote via proxy because she was home sick.
d. The company did not provide all stockholders with timely financial reports.
Explanation:
A shareholder is a person that has contributed to the equity of a company and holds shares as evidence of ownership.
Shareholders have right to recieve equal dividend as other common shareholders. There can only be a difference in dividend payouts when the other person has more shares.
They also have the right to vote via proxy in cases where they are not available. The proxy is duly appointed by the shareholder.
The company is also mandated to provide timely financial reports to all stockholders.
Shareholders however are not involved in daily running of the business. So they have no say in hiring and firing of employees.
Also common shareholders are paid dividend after preference share holders have been settled by the company.
Assume that in the short run a firm is producing 500 units of output, has average total costs of $300, and has average variable costs of $220. The firm's total fixed costs are. Select one: a. $40,000. b. $6.25. c. $0.16. d. $80.
Answer:
Total fixed costs= $40,000
Explanation:
First, we need to calculate the total variable cost and total cost:
Total cost= 500*300= $150,000
Total variable cost= 500*220= $110,000
Now, we can calculate the total fixed costs:
Total fixed costs= total cost - total variable cost
Total fixed costs= 150,000 - 110,000
Total fixed costs= $40,000
20. Which one of the following statements about national income is correct?
O A. National income is the income earned by US resource suppliers plus taxes on production and imports.
O B. National income is the market value of the annual output net of consumption of fixed capital.
C. National income is the income received by households less personal taxes,
D. National income is the before-tax income received by households.
Answer:
national income is the income received by households less personal taxes,,
Twelve samples, each containing five parts, were taken from a process that produces steel rods at Emmanual Kodzi's factory. The length of each rod in the samples was determined. The results were tabulated and sample means and ranges were computed. The results were:
Sample Sample Mean (in.) Range (in.) Sample Sample Mean (in.) Range (in.)
1 11.204 0.033 7 11.201 0.041
2 11.204 0.041 8 11.203 0.034
3 11.189 0.034 9 11.197 0.027
4 11.208 0.051 10 11.201 0.029
5 11.195 0.031 11 11.201 0.039
6 11.197 0.036 12 11.206 0.047
For the given data, the x = nothing inches (round your response to four decimal places).
Based on the sampling done, the control limits for 3-sigma x chart are:
Upper Control Limit (UCLx) = nothing inches (round your response to four decimal places).
Lower Control Limit (LCLx) = nothing inches (round your response to four decimal places).
Based on the x-chart, is one or more samples beyond the control limits? ▼ Yes No .
For the given data, the R = nothing inches (round your response to four decimal places).
The control limits for the 3-sigma R-chart are:
Upper Control Limit (UCLR) = nothing inches (round your response to four decimal places).
Lower Control Limit (LCLR) = nothing inches (round your response to four decimal places).
Based on the R-chart, is one or more samples beyond the control limits? ▼ Yes No .
Full question attached
Answer and Explanation:
Answer and explanation attached
A company reports the following beginning Inventory and two purchases for the month of January. On January 26, the company sells 360 units. Ending Inventory at January 31 totals 130 units.
Units Unit Cost
Beginning inventory on January 1 320 $3.10
Purchase on January 9 70 3.30
Purchase on January 25 100 3.40
Required:
Assume the Perpetual Inventory system is used. Determine the costs assigned to ending Inventory when costs are assigned based on LIFO.
Answer:
$439
Explanation:
Perpetual Inventory method calculates the value of goods held after each transaction.
LIFO stands for First In First Out.
Calculation of cost assigned to ending Inventory - FIFO
30 units × $3.30 = $99
100 units × $3.40 = $340
Total = $439
Blossom Corp is issuing a 10-year bond with a coupon rate of 11 percent. The interest rate for similar bonds is currently 7 percent. Assuming annual payments, what is the value of the bond
Answer:
$1,280.94
Explanation:
FV= $1000
PMT = 11% * $1000 = $110
N = 10 Years
I/Y = 7%
Using Excel, Present value of bond ($1,000, $110, 10, 7%) = $1280.9433
Hence, the present value of bond = $1,280.94
Cost of Production Report
The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process.
Work in process, January 1, 7,000 units, 70% completed $81,970
Direct materials (7,000 × $8.00) $56,000
Conversion (7,000 × 70% × $5.30) 25,970
$81,970
Materials added during January from Weaving
Department, 108,000 units $869,400
Direct labor for January 248,134
Factory overhead for January 303,274
Goods finished during January (includes goods in
process, January 1), 109,200 units —
Work in process, January 31, 5,800 units, 30% completed —
A. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0".
B. Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (December).
Answer:
A) Summary of physical units and equivalent units
Units to be accounted for Physical units
Beginning WIP 7,000
Units started 108,000
Total units to be accounted for 115,000
Units accounted for Phys. units Materials Conversion
Beginning WIP 7,000 $56,000 $25,970
Units started 108,000 $869,400 $551,408
Subtotal 115,000 $925,400 $577,378
Units transferred out 109,200 $878,710 $567,691
Ending WIP 5,800 $46,690 $9,687
Summary of costs to be accounted for
Costs to be accounted for: Materials Conversion Total
Beginning WIP $56,000 $25,970 $81,970
Costs incurred in the period $869,400 $551,408 $1,420,808
Total costs to be accounted for $925,400 $577,378 $1,502,778
Calculation of cost per equivalent unit
Materials Conversion Total
Costs incurred in the period $869,400 $551,408 $1,420,808
Total equivalent units 108,000 99,040
Cost per equivalent unit $8.05 $5.567528 $13.617528
Cost allocation
Materials Conversion Total
Units finished and transferred $878,710 $567,691 $1,446,401
Ending WIP $46,690 $9,687 $56,377
Total costs to be accounted for $925,400 $577,378 $1,502,778
B) Materials cost per equivalent unit increased slightly during the period from $8 per EU to $8.05 per EU (0.6% increase). Conversion costs also increased during the period from $5.30 per EU to $5.567528 per EU (5% increase).
Explanation:
beginning WIP 7,000 units
100% completed for materials
70% completed for conversion costs (30% added in this period = 2,100 EU)
beginning WIP costs
materials $81,970
conversion $56,000
units started 108,000
materials added during the period $869,400
conversion costs $551,408
units finished 109,200
units started and finished = 108,000 - 7,000 - 5,800 = 95,200
ending WIP 5,800
100% complete for materials
30% complete for conversion costs (1,740 EU)
total EU:
materials 108,000
conversion 2,100 + 95,200 + 1,740 = 99,040
cost per EU:
materials $869,400 / 108,000 = $8.05
conversion $551,408 / 99,040 = $5.567528
total = $13.617528
ending WIP costs:
5,800 x $8.05 = $46,690
1,740 x $5.567528 = $9,687
total = $56,377
costs of finished units:
(102,200 x $8.05) + $56,000 = $878,710
(95,200 x $5.567528) + (2,100 x $5.567528) + $25,970 = $567,691
total = $1,446,401
Darden Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 21,400 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $24,700. An additional 101,000 units were started into production during the month. There were 34,000 units in the ending work in process inventory of the Welding Department that were 70% complete with respect to conversion costs. A total of $853,880 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:_______
a. $8.486
b. $9.965
c. $8.738
d. $9.200
Answer:
$7.830
Explanation:
Calculation for the cost per equivalent unit for conversion costs for the month
First step is to compute for the Unit transferred out =
Unit transferred out = 21,400+101,000-34,000
Unit transferred out = 88,400
Second step is to compute for the Equivalent unit of conversion
Equivalent unit of conversion = 88,400+(34,000*70%)
Equivalent unit of conversion = 88,400+23,800
Equivalent unit of conversion = 112,200
Last step is to compute for the Cost per equivalent unit of conversion
Cost per equivalent unit of conversion = (24,700+853,880)/112,200 = 7.931
Cost per equivalent unit of conversion = 878,580/112,200
Cost per equivalent unit of conversion = $7.830
Therefore the cost per equivalent unit for conversion costs for the month is closest to $7.830
Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,283,744 as follows.
Work in process, November 1 Materials $78,600 Conversion costs 48,700 $127,300 Materials added 1,592,280 Labor 225,100 Overhead 339,064 Production records show that 35,200 units were in beginning work in process 30% complete as to conversion costs, 661,000 units were started into production, and 25,400 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.
(a) Determine the equivalent units of production and the unit production costs for the Assembly Department.
(Round unit costs to 2 decimal places, e.g. 2.25.)
Materials Conversion Costs
Equivalent Units
Cost per unit $ $
(b) Determine the assignment of costs to goods transferred out and in process.
(c) Prepare a production cost report for the assembly dept.
Answer:
a.
Equivalent Units : Materials = 696,200 units and Conversion Costs = 680,960 units
Cost per unit : Materials = $2.40 and Conversion Costs = $0.90
b.
goods transferred out = $2,213,640
goods in process = $70,104
c.
Production cost report for the assembly department
Inputs :
Opening Balance $127,300
Costs added during the year :
Materials $1,592,280
Labor $225,100
Overhead $ 339,064
Total Costs $2,283,744
Outputs :
Completed and Transferred Out $2,213,640
Ending Work In Process $70,104
Total Costs $2,283,744
Explanation:
First, calculated the number of units completed and transferred to finished goods.
Number of units completed and transferred = Beginning Inventory Units + Units Started during the period - Ending Inventory Units
Number of units completed and transferred = 35,200 units + 661,000 units - 25,400 units
= 670,800 units
Calculation of Equivalent Units of Production with Respect to Raw Materials and Conversion Costs.
1. Materials
Ending Work In Process (25,400 × 100%) = 25,400
Completed and Transferred (670,800 × 100%) = 670,800
Equivalent Units of Production with Respect to Raw Materials = 696,200
2. Conversion Costs
Ending Work In Process (25,400 × 40%) = 10,160
Completed and Transferred (670,800 × 100%) = 670,800
Equivalent Units of Production in Conversion Costs = 680,960
Calculation of Total Unit Cost
Unit Cost = Total Costs ÷ Total Equivalent Units
1. Materials
Unit Cost = ($78,600 + $1,592,280) ÷ 696,200
= $2.40
2. Conversion Costs
Unit Cost = ($48,700 + $225,100 + $339,064 ) ÷ 680,960
= $0.90
3. Total Unit Cost
Total Unit Cost = Materials + Conversion Costs
= $2.40 + $0.90
= $3.30
Calculation of costs assigned to goods transferred out and in process.
Goods transferred out = Units completed and transferred × total unit cost
= 670,800 × $3.30
= $2,213,640
Units in Process = Material Costs + Conversion Cost
= (25,400 × $2.40) + (10,160 × $0.90)
= $70,104
What is a premium in personal finance HEEEEELLPPP
Premium has multiple meanings in finance, with the first being the total cost to buy an option. A premium is also the difference between the price paid for a fixed-income security and the security's face amount at issue.
Source: Investopedia
Bradford Services Inc. (BSI) is considering a project that has a cost of $10 million and an expected life of 3 years. There is a 30 percent probability of good conditions, in which case the project will provide a cash flow of $9 million at the end of each year for 3 years. There is a 40 percent probability of medium conditions, in which case the annual cash flows will be $4 million, and there is a 30 percent probability of bad conditions and a cash flow of -$1 million per year. BSI uses a 12 percent cost of capital to evaluate projects like this.
Required:
a. Find the project's expected cash flows and NPV.
b. Now suppose the BSI can abandon the project at the end of the first year by selling it for $6 million. BSI will still receive the Year 1 cash flows, but will receive no cash flows in subsequent years. Assume the salvage value is risky and should be discounted at the WACC.
Answer:
a) expected cash flow per year (same for all 3 years) = (30% x $9 million) + (40% x $4 million) + (30% x -$1 million) = $4 million
initial outlay = $10 million
discount rate = 12%
NPV = -$10 + $4/1.12 + $4/1.12² + $4/1.12³ = -$0.39 million
b) assuming that the project is abandoned at the end of year 1:
NPV = -$10 + $4/1.12 + $6/1.12 = -$1.07 million
Actually things get worse if you decide to sell the project after year 1. The present value of the expected cash flows is higher than the present value of the salvage value.
Verne Cova Company has the following balances in selected accounts on December 31, 2014.
Accounts Receivable $ -0-
Accumulated Depreciation—Equipment -0-
Equipment 7,000
Interest Payable -0-
Notes Payable 10,000
Prepaid Insurance 2,100
Salaries and Wages Payable -0-
Supplies 2,450
Unearned Service Revenue 30,000
All the accounts have normal balances. The information below has been gathered at December 31, 2014.
1. Verne Cova Company borrowed $10,000 by signing a 12%, one-year note on September 1, 2014.
2. A count of supplies on December 31, 2014, indicates that supplies of $900 are on hand.
3. Depreciation on the equipment for 2014 is $1,000.
4. Verne Cova Company paid $2,100 for 12 months of insurance coverage on June 1, 2014.
5. On December 1, 2014, Verne Cova collected $30,000 for consulting services to be performed from December 1, 2014, through March 31, 2015.
6. Verne Cova performed consulting services for a client in December 2014. The client will be billed $4,200.
7. Verne Cova Company pays its employees total salaries of $9,000 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2014.
Instructions:
Prepare adjusting entries for the seven items described above.
Answer and Explanation:
The adjusting journal entries are shown below:
1) Interest Expense $400 ($10,000 × 12% × 3 months ÷ 12 months)
Interest Payable $400
(Being interest expense is recorded)
2) Supplies expense $1,500 ($2,450 - $900)
To Supplies $1,550
(being supplies expense is recorded)
3) Depriciation expense $1,000
Accumulated depriciation - equipment $1,000
(being depreciation expense is recorded)
4) Insurance expense $1,225 ($2,100 × 7 months ÷ 12 months)
To Prepaid insurance $1,225
(Being insurance expense is recorded)
5) Unearned service revenue $7,500 ($30,000 ÷ 4)
Service revenue $7,500
(being service revenue is recorded)
6) Account receivable $4,200
To Service revenue $4,200
(being account receivable is recorded)
7) Salaries and wages expense $5,400 ($9,000 ÷ 5 days × 3 days)
To Salaries and wages payable $5,400
(being salaries & wages expense is recorded)
List and describe the three types of income. Include information regarding how each one is taxed.
Answer:
Understanding The Three Types Of Income
Earned Income. The first type of income is the most common: earned income. ... Capital Gains Income. The next type of income that you can earn is called capital gains income. ... Passive Income. The final type of income that you can earn is called passive income.
Answer:
earned income, capital income, dont know the last one sorry
Explanation:
Brace Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,600 hours. At the end of the year, actual direct labor-hours for the year were 20,400 hours, the actual manufacturing overhead for the year was $506,920, and manufacturing overhead for the year was underapplied by $23,440. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:_________
A. $501,920
B. $531,445
C. $483,480
D. $511,920
Answer:
D. $511,920
Explanation:
For determining the estimated manufaturing overhead first determined the predetermined overhead which is shown below:
= (Actual manufacturing overhead - underapplied overhead) ÷ (actual direct labor hours)
= ($506,920 - $23,440) ÷ (20,400 hours)
= $23.7
Now the estimated manufacturing overhead is
= $23.7 × 21,600 hours
= $511,920
Help me please!!!!
Explain possible circumstances under which an adult child may
have undue influence in a relationship with an elderly parent.
Answer:
i think seeing their grand parent arguing with a parent, probably would make them question a lot, and they might evem stay away from them for a while, though, i may have took your question wrong, very sorry
Explanation:
if your meaning a situation where the child either wants to get away from them or they feel apart from them, this might help.
The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within 60 days is recorded by the purchaser with:_____.
A. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Payable.
B. A debit of $7,600 to Office Equipment, a debit of $4,200 to Accounts Receivable, and a credit of $3,400 to Accounts Payable.
C. A debit of $3,400 to Accounts Receivable, a debit of $4,200 to Cash, and a credit of $7,600 to Office Equipment.
D. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Receivable.
Answer:
A. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Payable.
Explanation:
Recognize the Asset - Office Equipment and Accounts Payable Accounts as these are increasing. De-recognize the Cash Account as this account is decreasing.
Following is information about consulting jobs for a company that is increasing in sales, but has not yet become profitable. The owner keeps financial records on yellow sticky notes stuck to the wall behind his desk. He has asked you to help him set up a costing system so that he can better understand his costs. The owner said that job 140 was completed, job 141 was started and completed, and job 142 was started this month. Professional labour hours for contracts in process consist of job 140 with 129 hours, job 141 with 258 hours, and job 142 with 137 hours. Professional labour was paid $23,580 for the month, and the professional employees are all paid the same rate per hour. Overhead is allocated using an estimated rate based on professional labour hours. The total cost for job 141 is $32,766. Actual overhead cost for the month was $53,448. What is labour paid per hour? Labour per hour. What is the estimated rate per labour hour used to allocate overhead? per hour. Overhead rate What are the total costs (before adjusting for overapplied or underapplied overhead) for Jobs 141, 142, and 143? Total cost Job 140 Job 141 Job 142 What are the amounts in cost of goods sold and work-in-process at the end of the month? Cost of goods sold Work-in-process What amount of overhead was overapplied or underapplied this month? Overhead If this month is typical, what is a reasonable overhead rate? Reasonable overhead rate per hour
Answer:
Part 1
$82 per professional labor hour
Part 2
Job 141 = $16,383 ,Job 142 = $32,766 , and Job 143 = $17,399
Part 3
Cost of Goods Sold = $49,149
Ending Work In Process Inventory = $17,399
Part 4
Overheads Under- applied = $10,480
Part 5
$102.00 per professional labor hour
Explanation:
Labor Cost per hour = Total Cost ÷ Total hours
= $23,580 ÷ ( 129 + 258 + 137)
= $45.00 per hour
We know that,
Overhead allocation rate = Estimated Overhead Costs ÷ Estimated Professional labor hours
But using Job 141 we can solve as,
Total for Job 141 = $32,766
Less Labor Cost (258 hours × $45.00) = $11,610
Overheads allocated to Job 141 = $21,156
Then,
Overhead allocation rate = $21,156 ÷ 258
= $82 per professional labor hour
Total Costs
Job 140 Job 141 Job 142
Direct Labor $5,805 $11,610 $6,165
Overheads $10,578 $21,156 $11,234
Total Cost $16,383 $32,766 $17,399
Cost of Goods Sold
Note : Only Finished Jobs are accounted in this figure
Total Cost of Job 140 $16,383
Total Cost of Job 141 $32,766
Cost of Goods Sold $49,149
Work In Process Inventory
Note : Only Incomplete Jobs are accounted in this figure
Total Cost of Job 142 $17,399
Application of Overheads
Actual Overheads (given) = $53,448
Applied Overheads ($82 × ( 129 + 258 + 137)) = $42,968
Actual Overheads > Applied Overheads therefore we have an Under-applied situation.
Overheads Under- applied = $10,480 ($53,448 - $42,968)
Reasonable Overhead Rate.
Rate that does not produce variances is reasonable !
Reasonable Overhead Rate. = Actual Overheads ÷ Total Professional Hours
= $53,448 ÷ 524 hours
= $102.00 per professional labor hour
A list of Year 3 revenues and expenses for Green Thumb, Inc. is provided below.
Advertising and Promotion Expenses $ 263,700
Income Tax Expense 56,620
Interest Expense 44,020
Other Expenses 123,600
Other Selling & Administrative Expenses 352,000
Sales Revenue 1,871,300
Salaries and Wages Expense 726,000
Required:
1. Calculate the net income for the Green Thumb, Inc. for Year 3.
2. Prepare a statement of retained earnings for Green Thumb, Inc. for Year 3. Assume the company had retained earnings of $163,200 as of January 1, Year 3, and paid out $46,120 in dividends during Year 3.
Answer:
a. Green Thumb
Net Income for the year 3
Particulars Amount
Sales revenue $1,871,300
Operating expenses
Advertising expense $263,700
Salaries and wages expense $726,000
Other selling expenses $352,000
Other expenses $123,600 $1,465,300
Earnings before interest and taxes $406,000
Interest expense $44,020
Earnings before taxes $361,980
Income tax expense $56,620
Net Income $305,360
b. Green Thumb Inc.
Statement of retained earnings
For the year ended Dec 31, Year 3
Retained Earnings, Jan 1 year 3 $163,200
Add: Net Income $305,360
Less: Dividend paid $46,120
Retained Earnings, Dec 31 year 3 $422,440
Use the following information to prepare a multistep income statement and a classified balance sheet for Eller Equipment Co. for Year 1.
Salaries expense $122,000 Beginning retained earnings $61,100
Common stock 110,000 Warranties payable (short term) 6,500
Notes receivable (short term) 32,500 Gain on sale of equipment 19,000
Allowance for doubtful accounts 19,000 Operating expenses 65,000
Accumulated depreciation 66,000 Cash flow from investing activities 116,000
Notes payable (long term) 160,000 Prepaid rent 38,000
Salvage value of building 21,000 Land 95,000
Interest payable (short term) 6,000 Cash 41,000
Uncollectible accounts expense 45,000 Inventory 101,000
Supplies 6,500 Accounts payable 55,000 Equipment 243,000
Interest expense 36,000 Interest revenue 6,200
Salaries payable 68,000 Sales revenue 940,000
Unearned revenue 47,000 Dividends 20,000
Cost of goods sold 595,000 Warranty expense 9,200
Accounts receivable 108,000 Interest receivable (short term) 3,600
Depreciation expense 3,000
Answer:
Eller Equipment Co.
Income statement
Particular Amount($) Amount ($)
Sales revenue 940,000
Less: Cost of good sold (595,000)
Gross margin 345,000
Operating expenses
Salaries expenses 122,000
Operating expenses 65,000
Warranty expenses 9,200
Un-collectible account expenses 45,000
Depreciation expenses 3,000
Total operating expenses (244,200)
Operating income 100,800
Non-operating expenses
Interest revenue 6,200
Interest expenses (36,000)
Gain on sale of equipment 19,000
Total non-operating items (10,800)
Net Income $90,000
Balance Sheet
Assets Amount$
Current Assets
Cash 41,000
Accounts receivable 108,000
Less: Allowance for doubtful (19,000) 89,000
accounts
Merchandise inventory 101,000
Interest receivable 3600
Prepaid rent 38,000
Supplies 6,500
Notes receivable 32,500
Total current assets 311,600
Property Plant and Equipment
Equipment 243,000
Less: Accumulated depreciation (66,000) 177,000
Land 95,000
Total property plant and equipment 272,000
Total Assets 583,600
Liabilities and Stockholder Equity
Current liabilities
Account payable 55,000
Unearned revenue 47,000
Warranties payable 6,500
Interest payable 6,000
Salaries payable 68,000
Total current liabilities 182,500
Long-term liabilities
Notes payable 160,000
Total long-term liabilities 160,000
Stockholders equity
Common stock 110,000
Retained earning 131,100
Total stockholders equity 241,100
Total liabilities and stockholders equity $583,600
Workings
Retained earning = Beginning retained earning + Net income - Dividend
= 61,100 + 90,000 - 20,000
= 131,100
Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2021 are as follows: ($ millions)
PBO balance, January 1 $530
Plan assets balance, January 1 300
Service cost 50
Interest cost 30
Gain from change in actuarial assumption 36
Benefits paid (46 )
Actual return on plan assets 23
Contributions 2021 40
The expected long-term rate of return on plan assets was 9%. There were no AOCI balances related to pensions on January 1, 2021, but at the end of 2021, the company amended the pension formula, creating a prior service cost of $18 million.
Required:
a. Calculate the pension expense for 2021.
b. Prepare the journal entries to record (a) pension expense, (b) gains or losses, (c) prior service cost, (d) funding, and (e) payment of benefits for 2021.
c. What amount will Electronic Distribution report in its 2021 balance sheet as a net pension asset or net pension liability?
Answer:
Please see below
Explanation:
1. Calculate the pension expense for 2021.
($ millions)
Service cost. $50
Interest cost. $30
Expected return on the plan assets
(1,300 × 6%). ($78)
Amortization of prior service cost $
Amortization of net gain or loss - AOCI $
Pension expense $2
2. Journal expense to record pension expense, gains or losses, prior service cost, funding and payment of benefits for 2021.
1.
Pension expense. Dr $2
Plan assets [expected return on assets] Dr $78
To PBO (50 + 30) Cr $80
(To record the pension expense)
2.
Prior service cost - OCI Dr $18
To PBO Cr $18
(To record the prior service cost)
3.
PBO Dr $36
To Gain - OCI Cr $36
(To record the gain from change in actuarial assumption)
4.
Loss- OCI [1,300 × 6%] - ($23). Dr $55
To Plan assets Cr. $55
(To record the gain or loss on assets)
5.
Plan assets. Dr $40
To Cash Cr. $40
(To record the funding)
6.
PBO Dr $46
To Plan assets. Cr 46
(To record the retiree benefits)
3. What amount will electronic distribution report in its 2021 balance sheet as a net pension asset or net pension liability.
PBO balance, Jan 1 $530
Service cost. $50
Interest cost. $30
Gain from change in actuarial assumption. ($36)
Prior service cost(New). $18
Benefit paid ($46)
PBO balance, December 31. $546
Plan assets balance, Jan 1. $300
Actual return on plan assets $23
Contributions $40
Benefits paid ($46)
Plan assets balance, December 31 $317
PBO balance, December 31 $546
Plan assets balance, December 31 $317
Net pension liability. $229