Answers
The journal entry of the company with purchased inventory on account for $280,000 is stated below:
What is a journal entry?A journal entry serves as a record of a company transaction in your accounting records. Every transaction in double-entry bookkeeping requires at least two journal entries. A bookkeeper keeps track of all the changes that a transaction can bring about in a firm by recording them in a diary.
Each journal entry includes information crucial to one specific business transaction, such as the date, the amount to be credited and debited, a succinct explanation of the transaction, and the accounts impacted. It may include a list of the impacted subsidiaries, tax information, and other details, depending on the business. The journal entry of the company is:
(1)
Purchases $280,000
Accounts payable $280,000
[To record purchases on account]
(2)
Accounts payable $26,000
Purchases returns $26,000
[To record purchase returns]
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Related Questions
cholastic Tours is trying to decide which one of two tours it will introduce. The costs and revenues associated with each alternative are listed below: Eastern Tour Western Tour Projected revenue $ 11,000 $ 13,000 Variable costs 2,000 6,000 Fixed costs 3,000 3,000 Profit $ 6,000 $ 4,000 What are the incremental (differential) costs of the Western Tour
Answers
Answer:
Results are below.
Explanation:
Giving the following information:
Eastern Tour Western Tour
Projected revenue $ 11,000 $ 13,000
Variable costs 2,000 6,000
Fixed costs 3,000 3,000
Profit $ 6,000 $ 4,000
Western Tour provides a higher projected revenue ($2,000 higher), but also higher variable costs. The variable cost of Eastern Tour is $4,000 lower, making it the more profitable option, as fixed costs are equal.
Article IV of the Constitution obligates states to give this to one another's citizens.
a.
interstate compacts
C. privileges and immunities
b. obedience to the sunset laws
d. full faith for credit cards
Please select the best answer from the choices provided
B.
оооо
Answers
enneves
The next dividend payment by Hoffman, Inc., will be $3.10 per share. The dividends are anticipated to maintain a growth rate of 6.25 percent forever. Assume the stock currently sells for $49.80 per share. a. What is the dividend yield
Answers
Answer:
6.2249%
Explanation:
Dividend yield = next dividend paid / price of the stock
Dividend yield is one of the components used in calculating the total return of a stock.
Total return = price return + dividend yield
price return is the return on a stock as a result of price appreciation
Dividend yield = $3.10 / $49.80 = 0.062249 = 6.2249%
All of the following are organization-directed benefits associated with offering unconditional guarantees except: a. the guarantee provides a means to avoid bankruptcy. b. the guarantee forces the firm to focus on the customer's definition of good service. c. offering the guarantee forces the firm to examine its entire service delivery system for failure points. d. the guarantee can be a source of pride and provide a motive for team building within the firm. e. the guarantee states a clear performance goal that is communicated to employees.
Answers
Answer:
All of the following are organization-directed benefits associated with offering unconditional guarantees except:
a. the guarantee provides a means to avoid bankruptcy.
Explanation:
Providing or offering customers unconditional guarantees does not help the company to avoid bankruptcy. Bankruptcy arises from inadequate financing resulting from overtrading. Importantly, offering guarantees to customers communicates a clear performance goal to employees to improve service delivery to customers.
Activity 1 Explain the importance of giving accurate information to customers.
Answers
Why Accuracy is Important to Our Customers - Service Uniformhttps://www.serviceuniform.com › Blog
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The Razooks Company, which manufactures office equipment, is ready to introduce a new line of portable copiers. The following copier data are available:
Variable manufacturing cost $195
Applied fixed manufacturing cost 105
Variable selling and administrative cost 75
Allocated fixed selling and administrative cost 90
1) What price will the company charge if the firm uses cost-plus pricing based on variable manufacturing cost and a markup percentage of 210%?
a) $409.50.
b) $567.00.
c) $604.50.
d) $672.00.
e) None of these.
2) What price will the company charge if the firm uses cost-plus pricing based on total variable cost and a markup percentage of 165%?
a) $163.64.
b) $445.50.
c) $433.64.
d) $715.50.
e) None of these.
3) What price will the company charge if the firm uses cost-plus pricing based on absorption manufacturing cost and a markup percentage of 120%?
a) $594.00.
b) $825.00.
c) $660.00.
d) $850.22.
e) None of these.
Answers
Answer:
Results are below.
Explanation:
Giving the following information:
Variable manufacturing cost $195
Applied fixed manufacturing cost 105
Variable selling and administrative cost 75
Allocated fixed selling and administrative cost 90
1)
Unitary variable cost= $195
Selling price= 195*2.1
Selling price= $409.5
2)
Total variable cost= 195 + 75= $270
Selling price= 270*1.65
Selling price= $445.5
3)
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
Total absorption cost= 195 + 105= $300
Selling price= 300*1.2
Selling price= $360
f-1. Assume that no intra-entity inventory or land sales occurred between Placid Lake and Scenic. Instead, on January 1, 2020, Scenic sold equipment (that originally cost $170,000 but had a $84,000 book value on that date) to Placid Lake for $118,000. At the time of sale, the equipment had a remaining useful life of five years. What worksheet entries are made for a December 31, 2021, consolidation of these two companies to eliminate the impact of the intra-entity transfer
Answers
Answer:
Journal 1
Debit : Other Income $34,000
Credit : Equipment $34,000
Journal 2
Debit : Accumulated depreciation $6,800
Credit : depreciation $6,800
Explanation:
Step 1 : Eliminate the Income resulting from sale and the additional value of equipment sitting in the buyer books
Income = Selling Price - Carrying Amount
where,
Carrying Amount = Cost - Accumulated depreciation
= $84,000
therefore,
Income = $118,000 - $84,000 = $34,000
Journal;
Debit : Other Income $34,000
Credit : Equipment $34,000
Step 2 : Eliminate the unrealized profit as a result of additional asset value
unrealized profit = income ÷ remaining useful life
= $34,000 ÷ 5
= $6,800
Journal;
Debit : Accumulated depreciation $6,800
Credit : depreciation $6,800
Assume that last year, Cliff Consulting, a firm in Berkeley, CA, had the following contribution income statement:
CLIFF CONSULTING
Contribution Income Statement
For the Year Ended September 30
Sales revenue $ 1,200,000
Variable costs
Cost of services $ 480,000
Selling and administrative 60,000 540,000
Contribution margin 660,000
Fixed Costs -selling and administrative 440,000
Before-tax profit 220,000
Income taxes (21%) 46,200
After-tax profit $ 173,800
(a) Determine the annual break-even point in sales revenue.
(b) Determine the annual margin of safety in sales revenue.
(c) What is the break-even point in sales revenue if management makes a decision that increases fixed costs by $80,000?
(d) With the current cost structure, including fixed costs of $440,000, what dollar sales revenue is required to provide an after-tax net income of $250,000?
(e) Prepare an abbreviated contribution income statement to verify that the solution to requirement (d) will provide the desired after-tax income.
Answers
Answer:
Cliff Consulting
a) Annual Break-even point in sales revenue is:
= $800,000
b) Annual margin of safety is:
= $400,000
c) If fixed costs increases by $80,000, the break-even point in sales revenue
= $945,455
d) Dollar Sales Revenue required to provide an after-tax net income of $250,000 is:
= $1,375,375
e) Abbreviated Contribution Income Statement
Sales revenue $1,375,375
Variable costs = 618,919
Contribution = $756,456
Fixed costs 440,000
Before tax income 316,456
Income tax (21%) 66,458
After-tax income $249,998
equivalent to $250,000
Explanation:
a) Data and Calculations:
CLIFF CONSULTING
Contribution Income Statement
For the Year Ended September 30
Sales revenue $ 1,200,000
Variable costs
Cost of services $ 480,000
Selling and administrative 60,000 540,000
Contribution margin 660,000
Fixed Costs -selling and administrative 440,000
Before-tax profit 220,000
Income taxes (21%) 46,200
After-tax profit $ 173,800
Break-even point in sales revenue = Fixed costs/Contribution margin ratio
= $440,000/0.55
= $800,000
Annual margin of safety = normal sales revenue minus break-even sales revenue
= $1,200,000 - $800,000
= $400,000
Contribution margin ratio = contribution margin/sales revenue * 100
= $660,000/$1,200,000 * 100 = 55%
If fixed costs increases by $80,000, the break-even point in sales revenue
= ($440,000 + $80,000)/0.55 = $520,000/0.55 = $945,455
To achieve after-tax net income of $250,000, the required dollar sales revenue:
Net income after-tax = $250,000
Tax rate = 21%
Net income before tax = $250,000/1-21%
= $250,000/0.79 = $316,456
Sales dollars to achieve target profit = (Fixed costs + Target Profit/1 - 0.21)/Contribution margin
= ($440,000 + ($250,000/0.79))/0-55
= ($440,000 + $316,456)/0.55
= $756,456/0.55
= $1,375,375
Abbreviated Contribution Income Statement
Sales revenue $1,375,375
Variable costs = 618,919
Contribution = $756,456
Fixed costs 440,000
Before tax income 316,456
Income tax (21%) 66,458
After-tax income $249,998
After-tax income is equivalent to $250,000
Jacob Suppliers has not paid out any dividend in the last three years. It does not expect to pay dividends in the next two years either as it recovers from an economic slowdown. Three years from now it expects to pay a dividend of $1.75 and then $2.80 in the following two years. What is the present value of the dividends to be received over the next five years if the discount rate is 14.5 percent
Answers
Answer:
3.78
Explanation:
Javier is a department manager at a big box store. Over the last month, sales have slumped, and he has lots of inventory going unsold. Now it’s time to put in his orders to restock for next month. a. How, if at all, should Javier adjust his orders for new products? Javier should place his orders according to his initial estimates. The inventory buildup is not an equilibrium. Javier should respond by cutting back on his orders. Javier should wait and see what happens next month, and if his inventory runs out, then he can place an order. b. How will his suppliers respond to this decision? They will produce according to their initial demand estimates. They will cut back on production. They will not be affected. They will expand their output. c. Most other businesses are experiencing a similar decline in sales. Which
Answers
Question Completion:
c. Most other businesses are experiencing a similar decline in sales. Which of the following are is likely to occur as a result of the decline in sales?
Aggregate expenditure will fall.
Aggregate expenditure will rise.
Output will not be affected, and eventually, sales will rise to bring the economy back to equilibrium.
Output will fall in response to the decline, as businesses adjust their production.
Answer:
a. How Javier should adjust his orders for new products:
The inventory buildup is not an equilibrium. Javier should respond by cutting back on his orders.
b. How the suppliers will respond to Javier's decision:
They will cut back on production.
c. The consequences of the decline in sales are:
Aggregate expenditure will fall.
Output will fall in response to the decline, as businesses adjust their production.
Explanation:
Aggregate Expenditure determines the total amount spent by firms and households on goods and services during a specific period of time. Inventory management is one of the duties of Javier at the department store. This involves ordering, warehousing, and processing inventory to achieve maximum customer satisfaction.
Charlie Manufacturing Company has two production departments, Melting and Molding. Direct general plant management and plant security costs benefit both production departments. Charlie allocates general plant management costs on the basis of the number of production employees and plant security costs on the basis of space occupied by the production departments. In November, the following overhead costs were recorded:
Melting Department direct overhead $350,000
Molding Department direct overhead 600,000
General plant management 180,000
Plant security 70,000
Melting Molding
Number of employees 50 90
Space occupied (square feet) 20,000 80,000
Machine hours 10,000 2,000
Direct labor hours 4,000 20,000
Required:
Prepare a schedule allocating general plant management costs and plant security costs to the Melting and Molding Departments.
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Answer:
Charlie Manufacturing Company
A Schedule Allocating Service Costs to the Melting and Molding Departments:
General Plant Plant Melting Molding Total
Management Security
Direct overhead $180,000 $70,000 $350,000 $600,000 $1,200,000
General plant mgt -180,000 0 64,286 115,714 0
Plant security -70,000 14,000 56,000 0
Total costs after $0 $0 $428,286 $771,714 $1,200,000
Explanation:
a) Data and Calculations:
Overheads:
General Plant Plant Melting Molding Total
Management Security
Direct overhead $180,000 $70,000 $350,000 $600,000 $1,200,000
Number of employees 50 90 140
Space occupied (square feet) 20,000 80,000 100,000
Machine hours 10,000 2,000 12,000
Direct labor hours 4,000 20,000 24,000
General plant mgt -180,000 0 64,286 115,714 0
Plant security -70,000 14,000 56,000 0
General Plant management (Production Employees):
Melting = $64,286 ($180,000 * 50/140)
Molding = $115,714 ($180,000 * 90/140)
Plant Security (Space Occupied):
Melting = $14,000 ($70,000 * 20,000/100,000)
Molding = $56,000 ($70,000 * 80,000/100,000)
Current Attempt in Progress
Cullumber Company entered into these transactions during May 2022, its first month of operations.
1. Stockholders invested $42,500 in the business in exchange for common stock of the company.
2. Purchased computers for office use for $31,900 from Ladd on account.
3. Paid $2,900 cash for May rent on storage space.
4. Performed computer services worth $17,900 on account.
5. Performed computer services for Wharton Construction Company for $5,400 cash.
6. Paid Western States Power Co. $8,300 cash for energy usage in May.
7. Paid Ladd for the computers purchased in (2).
8. Incurred advertising expense for May of $1,600 on account.
9. Received $14,000 cash from customers for contracts billed in (4).
Create a tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders' Equity in the far right column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
Answers
Answer:
Assets = Liabilities + Stockholders' Equity = $68,600
Explanation:
Note: See the attached excel file for the tabular analysis of the effect of each transaction on the accounting equation.
From the attached excel file, we have:
Assetes = Total assets balance = = $18,800 + $17,900 + 31,900 = $68,600
Liabilities = Total liabilities balance = $1,600
Stockholders' Equity = Total Common Stock balance + Total Net Income balance = $42,500 + $25,500 = $67,000
Liabilities + Stockholders' Equity = $1,600 + $67,000 = $68,600
Therefore, we have:
Assets = Liabilities + Stockholders' Equity = $68,600
Leakages and injections Suppose the economy is initially in equilibrium, when a decrease in decreases total leakages out of the economy. Which of the following will occur as a result of this change? Suppose the economy is initially in equilibrium, when a decrease in decreases total leakages out of the economy. Which of the following will occur as a result of this change? Check all that apply. GDP rises above planned spending. Firms experience an increase in unplanned inventory. There is a proportionate decrease in investment. Real GDP falls. Injections and leakages are equal to each other .
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Answer:
Suppose the economy is initially in equilibrium, when a decrease in Savings decreases total leakages out of the economy.
Savings are considered leakages in the economy because the represent money that is not spent but rather saved.
Which of the following will occur as a result of this change?
GDP rises above planned spending.
Savings reduces spending but as savings have reduced, there will be more spending which is unplanned and so this increase in unplanned spending will make GDP higher than planned spending.
Injections and leakages are equal to each other when real GDP is equal to aggregate expenditure.
Injections and leakages are equal when the output (GDP) and the Aggregate expenditure are the same.
Satka Fishing Expeditions, Inc., recorded the following transactions in July
1. Provided an ocean fishing expedition for a credit customer, payment is due August 10
2. Paid Marine Service Center for repairs to boats performed in June. (In June, Satka Fishing Expeditions, Inc., had received and properly recorded the invoice for these repairs.)
3. Collected the full amount due from a credit customer for a fishing expedition provided in June.
4. Recelved a bill from Baldy's Bait Shop for bait purchased and used in July. Payment is due August 3
5. Purchased a new fishing boat on July 28, paying part cash and issuing a note payable for the balance. The new boat is first scheduled for use on August 5
6. Declared and paid a cash dividend on July 31
Indicate the effects that each of these transactions will have upon the following six total amounts in the company's financial statements for the month of July.
Choose I for increase, D for decrease, and NE for no effect in the column headings below to show the effects of the above transactions.
Answers
Answer:
Satka Fishing Expeditions, Inc.
Indication of the effects that each of these transactions will have upon the following six total amounts in the company's financial statements for the month of July:
Transaction Income Statement Balance Sheet
Revenue - Expenses = Net Income Assets = Liabilities + Equity
1. I NE I I I
Accounts Receivable and Sales Revenue
2. NE NE NE D D NE
Accounts Payable and Cash
3. NE NE NE NE (I and D) NE NE
Cash and Accounts Receivable
4. NE I D NE I D
Supplies Expenses and Accounts Payable
5. NE NE NE I/D I NE
Boat Purchased, Cash and Note Payable
6. NE NE D NE NE D
Retained Earnings and Cash
Explanation:
a) Data and Transaction Analysis:
1. Accounts Receivable and Sales Revenue
2. Accounts Payable and Cash
3. Cash and Accounts Receivable
4. Supplies Expenses and Accounts Payable
5. Boat Purchased, Cash and Note Payable
6. Retained Earnings and Cash
b)
Key:
I = increase
D = decrease
NE = no effect
No. 3 will increase the assets (cash) by the amount and decrease the assets (accounts receivable) by the same amount. Overall, there will be no effect as the increase cancels the decrease equally.
As a result of a decrease in the demand for U.S. dollars, there has been depreciation in the value of the U.S. dollar relative to Macedonian dinars. The depreciation in the U.S. dollar has benefitted some groups but harmed others. Indicate which of the groups are winners and which are losers from the standpoint of the depreciation of the U.S. dollar.
a. A. Todd, American, to visit Macedonia spring brew
b. An investment bank in Macedonia that is interested in purchasing U.S.
c. Goodyear, a U.S. based firm, selling car tires Macedonia
d. A family from Macedonia visiting relatives in the U.S
e. A firm from Macedonia selling in the US.
f. U .S. based Hewlett-Packard, which is a tech purchasing a high tech company in Macedonia
Answers
Answer:
A. Todd, American, to visit Macedonia spring brew
Explanation:
Todd is a loser due to the depreciation of the U.S. dollar because now he will need more dollars to buy a comparative amount of South Korea won. His trip will now be more expensive.
An investment bank in South Korea, interested in purchasing U.S. government bonds - winner
The investment bank will exchange fewer wons for U.S. dollars than before. Buying government bonds will now be cheaper for them.
Goodyear, a firm based in the United States, sells car tires in South Korea - winner
Goodyear will likely sell more cars because for its South Korean customers, the cars are now cheaper since the value of the dollar has depreciated against the currency that they hold.
A family from South Korea visits relatives in the United States - winner
The South Korean family will exchange fewer wons for more U.S. dollars, making their trip cheaper.
A firm from South Korea sells handbags in the United States - loser
The handbags will now be more expensive for their American customers, likely causing a loss in sales revenue for the firm.
An electronics manufacturer in the United States, purchases a high tech company in South Korea - loser
The cost of the high-tech South Korean company is now higher for the American manufacturer because more dollars had to be exchanged for wons before the purchase.
5
5
Learning Task 4 Create a poster advertisement that demonstrates road
hely. Use a white cortolina for this project-based output
er
Guide for critiquing the poster advertisement.
Assessment Citteria
Information on road safety is shown
Measures to prevent rood accident is highlighted
Pictures or illustrations used are appropriate for the content.
Teds casy to read and understand
Execfon is neat and clear
Reglember that the two different forces discussed in this lesson are
Gravity is a force of attraction of two bodies because of their masses,
Friction is a force that opposes movement. It is always opposite to the
direction of the motion
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Answer:
njjjjjjekkwososlzojqnuxydgdhhsiakakaiidyquuqjqjjwnejejejdkjdjdjdjdjejjejeueuydhshwjoeisushshwhwjiwjjgvebklowgevevwjowohsgsbwowowwigdvdbwowwiuhshbsjkwkwkmsnsjsusuwiwoaoJhhhyui
7x+5=80 please help pleaseeeeee
Answers
Peng Company is considering an investment expected to generate an average net income after taxes of $2,000 for three years. The investment costs $45,300 and has an estimated $7,500 salvage value.
Assume Peng requires a 15% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.)
Peng Company is considering an investment expected to generate an average net income after taxes of $2,000 for three years. The investment costs $45,300 and has an estimated $7,500 salvage value.
Assume Peng requires a 15% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.)
Cash Flow Select Chart Amount x PV Factor = Present Value
Annual cash flow Present Value of an Annuity of 1 =
Residual value Present Value of 1 =
Net present value
Answers
Answer:
$-7033.54
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow = net income + deprecation
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($45,300 - $7,500) / 3 = $12,600
Cash flow = $12,600 + $2000 = $14,600
Cash flow in year 0 = $-45,300
Cash flow in year 1 = $14,600
Cash flow in year 2 = $14,600
Cash flow in year 3 = $14,600 + $7,500 = $22,100
I = 15%
NPV = $-7033.54
To find the NPV 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
Mature birds are better than young birds when used for ___.
Answers
Answer:
what the question choices?
J.Crew is planning a new line of jackets for fall. It plans to sell the jackets for $100. It is having the jackets produced in the Dominican Republic. Although J. Crew does not own the factory, its product development and design costs are $400,000. The total cost of the jacket, including transportation to the stores, is $45.
1. What is the breakeven quantity for this item? That is, the number that J. Crew will need to sell in order to not lose money?(Treat product development and design costs [$400,000] as fixed, cost of each jacket including transportation [$45] as unit variable cost)
a. 6.846 jackets
b. 7,273 jackets
c. 9,118 jackets
d. 8,435 jackets
2. What is the breakeven point, in sales revenue dollars?
a. $727,300
b. $684,600
c. $843,500
d. $911,800
Answers
Answer:
Results are below.
Explanation:
To calculate the break-even point in units and dollars, we need to use the following formulas:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 400,000 / (100 - 45)
Break-even point in units= 7,273
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 400,000 / 0.55
Break-even point (dollars)= $727,300
Contribution margin ratio= contribution margin / selling price per unit
Contribution margin ratio= 55 / 100= 0.55
Consider the following statements regarding the economic pricing model:
I. The economic model is limited in use because a firm's demand curve is difficult to determine.
II. The marginal revenue and marginal cost model is valid for all forms of market organization (perfect competition, oligopoly, and so forth).
III. Cost accounting systems are not designed to measure the marginal changes in cost incurred as production and sales increase.
Which of the above statements is (are) true?
A. I only.
B. III only.
C. I and III.
D. II and III.
E. I, II, and III.
Answers
Answer:
C. I and III.
Explanation:
The demand curve is affected by many variables that can change in a relatively short period of time, for example, consumers' income. Even if a company is able to measure the demand curve, it cannot be sure for how long that result holds true. Managerial accounting is designed to measure historical costs generally associated to a certain production range.
Park Co. is considering an investment that requires immediate payment of $27,215 and provides expected cash inflows of $8,400 annually for four years. Assume Park Co. requires a 8% return on its investments. 1-a. What is the net present value of this investment
Answers
Answer:
the net present value is $606.64
Explanation:
The computation of the net present value is shown below:
But before that the present value of annual cash inflows is to be determined i.e.
Present value = annual cash flows × PVIFA(8%,4years)
= $8,400 × 3.3121
= $27,821.64
Now
Net present value = Present value of cash flows - initial investment
= $27,821.64 - $27,215
= $606.64
Hence, the net present value is $606.64
TB MC Qu. 8-199 The Puyer Corporation makes and sells ... The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: Monthly Fixed Cost Variable Cost Per Deb Sold Sales commissions $ 0.90 Shipping $ 1.40 Advertising $ 50,000 $ 0.20 Executive salaries $ 60,000 Depreciation on office equipment $ 20,000 Other $ 40,000 All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the company has budgeted to sell 17,000 Debs in March, then the average budgeted selling and administrative expenses per unit sold for March is closest to: (Round your intermediate calculations to 2 decimal places.)
Answers
Answer: $10
Explanation:
First, we need to calculate the total budgeted selling and administrative expenses for March which will be:
Advertising = $50,000
Add: Executive salaries = $60,000
Add: Depreciation on office equipment = $20,000
Add: Other = $40,000
Total = $170,000
Since the company has budgeted to sell 17,000 Debs in March, then the average budgeted selling and administrative expenses per unit sold for March is:
= $170000 / 17000
= $10
You are a financial analyst for Loch Motor Company and have been asked to determine the impact of alternative depreciation methods. For your analysis, you have been asked to compare methods based on a machine that cost $246,000. The estimated useful life is 10 years, and the estimated residual value is $62,000. The machine has an estimated useful life in productive output of 230,000 units. Actual output was 35,000 in year 1 and 31,000 in year 2.
Required:
For years 1 and 2 only, prepare separate depreciation schedules assuming:
a. Straight-line method.
b. Units-of-production method.
c. Double-declining-balance method.
Answers
Answer:
a. Straight-line method.
depreciable value = $246,000 - $62,000 = $184,000
deprecaition expense per year = $184,000 / 10 = $18,400
year depreciation expense book value
1 $18,400 $227,600
2 $18,400 $209,200
b. Units-of-production method.
depreciable value = $246,000 - $62,000 = $184,000
deprecaition expense per unit = $184,000 / 230,000 = $0.80
year depreciation expense book value
1 $28,000 $218,000
2 $24,800 $193,200
c. Double-declining-balance method.
depreciation expense year 1 = $246,000 x 1/10 x 2 = $49,200
depreciation expense year 2 = $196,800 x 1/10 x 2 = $39,360
year depreciation expense book value
1 $49,200 $196,800
2 $39,360 $157,440
Wildhorse Corporation factors $266,800 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2020. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments.
Assume that the conditions are met for the transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2014, for Beyoncé to record the sale of receivables, assuming the recourse liability has a fair value of $4,650. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit August 15, 2014
Answers
Answer:
Denit Cash for $250,792; Debit Due from factors for $10,672; Debit Loss on Sale of receivables for $9,986; Credit Recourse liability for $4,650; and Credit Accounts receivable for $266,800.
Explanation:
The following are calculated first before preparing the journal entry:
Cash received = Factored amount * (100% - Finance charge percentage - Percentage reserved for probable adjustments) = $266,800 * (100% - 2% - 4%) = $250,792
Due from factors = Factored amount * Percentage reserved for probable adjustments = $266,800 * 4% = $10,672
Loss on Sale of receivables = (Factored amount * Finance charge percentage) + Fair value of recourse liability = ($266,800 * 2%) + $4,650 = $9,986
The journal entry will now appear as follows:
Date Account Titles and Explanation Debit ($) Credit ($)
15 Aug 2014 Cash 250,792
Due from factors 10,672
Loss on Sale of receivables 9,986
Recourse liability 4,650
Accounts receivable 266,800
(To record the sale of receivables.)
what does Gdp measure, and what are the four components of gdp?
Answers
Answer:
Gdp is the value of goods and services it's calculated by adding the money spent by consumers and businesses in a certion period.The 4 components are personal expenditures,business investments,government spending and exports of goods and services.
Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $452,000, and direct labor costs to be $2,260,000. Actual overhead costs for the year totaled $419,000, and actual direct labor costs totaled $1,930,000. At year-end, the balance in the Factory Overhead account is a: Multiple Choice $452,000 Credit balance. $386,000 Debit balance. $33,000 Debit balance. $33,000 Credit balance. $419,000 Debit balance.
Answers
Answer:
As overhead was underapplied, the balance in overhead will be $33,000 credit.
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 452,000 / 2,260,000
Predetermined manufacturing overhead rate= $0.2 per direct labor dollar
Now, we can allocate costs:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 0.2*1,930,000
Allocated MOH= $386,000
Finally, we determine the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 419,000 - 386,000
Underapplied overhead= $33,000
As overhead was underapplied, the balance in overhead will be $33,000 credit.
The cost function for Acme Laundry is
C(q) = 20 + 30q + q2
where q is tons of laundry cleaned. What q should the firm choose so as to maximize its profit if the market price is p?
The output level at which the firm's profit is maximized as a function of p is____.
If p = 100, then Acme Laundry should____produce units.
Answers
Answer:
Explanation:
The profit function will be:
π = Total revenue - Total cost
where,
Total revenue = price × quantity= pq
Total cost = 20 + 30q + q²
π = pq - (20 + 30q + q²)
π = pq - 20 - 30q - q²
Then we maximize profit with respect to q which will be:
dπ/dq = p - 30 - 2q
We then equate the profit function to 0.
p - 30 - 2q = 0
p - 2q = 30
2q = p - 30
q = (p - 30)/2
When p = 100, the number of units that should be produced will be:
= (p - 30)/2
= (100 - 30)/2
= 70/2
= 35 units
When is the only time to abbreviate on a job application?
Question 3 options:
In the Personal Information section
In the Position & Availability section
Only when space is limited
Signature section
Answers
Each service starts on a different date because the services depend on each other. Enter the starting dates for the remaining services as follows:
a. In cell D6, enter a formula without using a function that adds 4 days to the value in cell 06.
b. In cell E6, enter a formula without using a function that subtracts 3 days from the value in cell C6
c. In cell F6, enter a formula without using a function that adds 2 days to the value in cell E6
d. In cell G6, enter a formula without using a function that adds 2 days to the value in cell C6.
Answers
Answer:
a. Copy the range of cell D7:D9 then select cell D6 and paste the selection with date format selected. The function will be represented in formula bar with adding +4;365 days.
b. Copy the range of cell D7:D9 then select cell D6 and paste the selection with date format selected. The function will be represented in formula bar with adding -3;365 days.
c. In the formula bar type =365 days; +2 : E6
d. In the formula bar type =365 days ; +2 : C6
Explanation:
Excel is a software which helps the users to easily calculate complex calculation with just one function input. The users can create worksheets using the excel and then link those worksheets with each other. The data can be displayed in the form of table or simple text. It has multiple options to create annual day wise filtered worksheets.