Answer:
Unearned revenue
Explanation:
Unearned revenue is money that a business has received for goods and services that it will deliver later. It is not yet revenue in a business sense because the activity that makes revenue be recognized has not yet happened. Unearned revenue is also known as deferred revenue. It is recorded as a liability by the supplier.
Unearned revenue may arise due to prepayment for goods and services, initial deposits when purchasing property, and subscription fees for magazines, TV, and clubs.
Cooper Construction Company had a contract starting April 2021, to construct a $24,000,000 building that is expected to be completed in September 2023, at an estimated cost of $22,000,000. At the end of 2021, the costs to date were $10,120,000 and the estimated total costs to complete had not changed. The progress billings during 2021 were $4,800,000 and the cash collected during 2021 was 3,200,000. Cooper uses the percentage-of-completion method. At December 31, 2021 Cooper would report Construction in Process in the amount of: A. $ 920,000 B. $10,120,000 C. $11,040,000 D. $ 9,440,000
Answer:At December 31, 2021 Cooper would report Construction in Process in the amount of: C. $11,040,000
Explanation:
Particulars Amount
Total Contract Price $24,000,000
Expected Costs of Contract $22,000,000
Profit ($24millon -$22millon) $2,000,000
Profit in % of cost $2,000.000/$22,000,000 9.09%
Costs incurred in 2021 $10,120,000
Gross Profit = total gross profit on contract x Total % of completion in 2021 $10,120,000 x 9.09% $919,908
construction in process at 31 Dec 2021=
$10,120,000 + $919,908=$11,039,000 rounded up to $11,040,000
Which of the following is the correct order of market structure from most competitive to least?
Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition
Perfect Competition, Monopoly, Monopolistic Competition, Oligopoly
Oligopoly, Perfect Competition, Monopolistic Competition, Monopoly
Perfect Competition, Monopolistic Competition, Oligopoly, Monopoly
Answer:
Perfect Competition, Monopolistic Competition, Oligopoly, Monopoly
Explanation:
In perfect competition, many sellers are competing to sell an identical product. The market has very many small suppliers. No single supplier dominates the market, meaning no seller has the power to influence the price. The market has very many buyers as well. Suppliers have the freedom to enter or exit the market with ease.
Monopolist competition has very many sellers selling similar but differentiated products. Due to the differentiated aspect, sellers can set the prices for their products. The market has very many buyers.
An oligopoly is where a few big suppliers dominate the market. The oligopoly market may have other smaller suppliers whose market share is a small percentage. Oligopoly may stock or manufacture identical or differentiated products.
A monopoly is where a dominant supplier is selling a particular product without competition. Only one supplier is selling that type of product. An oligopoly can sell lifetime solutions through books.
Answer:
Monopolistic competition
Explanation:
Josiah has operated a small mechanic shop for about two years. He has noticed that one employee is much better at welding than the others, another is better at diagnosing the problems with vehicles, and another is better at taking vehicles apart, removing the damaged parts, and then reinstalling the repaired or new parts. Because the business is growing and needs to be run more efficiently than it has in the past, Josiah is considering revamping job assignments. In the past he has let the employees chose what they want to do each day. Considering the abilities of his employees, what would be the best way for him to streamline his business
Answer:
(b) utilize job specialization
Explanation:
These are the options for the question;
(a) make the employee who can diagnose problems the manager
(b) utilize job specialization
(c) utilize job rotation
From the question, we are informed about how Josiah has operated a small mechanic shop for about two years.and how he was able to discover different area of specialization for his employees, in different areas such as welding, removal of the damaged parts, reinstallation of the repaired of new parts.
In this case of Considering the abilities of his employees, the best way for him to streamline his business is utilize job specialization.
Job specialization brings effectiveness as well as efficiency, it is the process in which the employees are able to concentrate on a specific area of the job and allow then to carry the specific role effectively. Job specialization helps in division of task among employee and it increase production as well time management.
Vermont Company acquires a used machine (ten-year property) on January 15, 2018. at a cost of $400,000. Vermont also acquires another used machine (seven-year property) on November 5, 2018 at a cost of $80,000. No election is made to use the straight-line method. The company does not make the 5 179 election. Determine the total deductions in calculating taxable income related to the machines for 2018.
a) $48,000
b) $100,000
c) None of the above
d) $51.432
e) $480,000
Answer:
d) $51.432
Explanation:
Deduction on 10 year Property = $400,000 * (MACRS Rate)
Deduction on 10 year Property = $400,000 * 0.10
Deduction on 10 year Property = $40,000
Deduction on 7 Year Property = $80,000 * (MACRS Rate)
Deduction on 7 Year Property = $80,000 * 0.1429
Deduction on 7 Year Property = $11,432
Total Deduction on the properties = $40,000 + $11,432
Total Deduction on the properties = $51,432
Which statement demonstrates the misuse of e-commerce?
A. asking for testimonials from satisfied customers
B. offering free shipping
C. offering discounts
D. shipping products that don't match the description online
Answer:
A . asking for testimonials from satisfied customers
Answer:a
Explanation:
Western Athletic Club International (WACI) owns and operates a chain of fitness clubs and is interested in estimating the CLV for new memberships. Practically all of WACI's costs are fixed costs. Meaning that, when a member pays his or her monthly dues, there are no variable costs associated with that payment and all the revenues go toward covering the fixed costs of the business (facilities, salaries, equipment, etc.) WACI's monthly membership dues are $78 per person. The average member keeps his or her membership active for 26 months. In addition to membership, WACI also offers personal training services through a staff of independent athletic trainers. WACI and the trainer split the fees associated with personal training 50/50. Historically, 15% of members choose to use a personal trainer for, on average, 30 training sessions. Sessions with a personal trainer are priced at $40 each.
Required:
a. What is the monthly margin generated by a new membership (don’t include training)?
b. What is the CLV to WACI on the membership component?
c. What is the CLV of the personal training component for a member who chooses to hire a trainer?
d. What is the total CLV for a new member?
e. What would be the net value of implementing a program that doubled the likelihood that a person would hire a personal trainer?
Answer:
a. What is the monthly margin generated by a new membership (don’t include training)?
$78, since there are no variable costs
d. What is the total CLV for a new member?
the average purchase value = $78 + (15% of customers x 30/26 sessions per month x 50% earnings x $40 per session) = $78 + $3.46 = $81.46
the average purchase frequency = 1 per month
average customer value = $81.46 / 1 = $81.46
average customer lifespan = 26 months
customer lifetime value = average customer value x average customer lifespan = $81.46 x 26 = $2,118
b. What is the CLV to WACI on the membership component?
$78 x 26 = $2,028
c. What is the CLV of the personal training component for a member who chooses to hire a trainer?
$3.46 x 26 = $89.96
e. What would be the net value of implementing a program that doubled the likelihood that a person would hire a personal trainer?
$3.46 per customer, same as the CLV of the personal training component
a.
The monthly margin generated by a new membership is $78 because there are no variable costs
b.
The CLV to WACI on the membership component is
= $78 × 26
= $2,028
c.
the CLV of the personal training component for a member is
= $3.46 × 26
= $89.96
d. The CLV for a new member is
The average purchase value = $78 + (15% of customers × 30/26 sessions per month × 50% earnings × $40 per session)
= $78 + $3.46
= $81.46
the average purchase frequency = 1 per month
average customer value = $81.46 / 1 = $81.46
average customer lifespan = 26 months
So,
customer lifetime value
= average customer value x average customer lifespan
= $81.46 × 26
= $2,118
e. The net value should be
$3.46 per customer, similar to the CLV of the personal training component
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You wrote a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. A large networking company wants to incorporate your software into its systems and is offering to pay you $461,000 today, plus $461,000 at the end of each of the following six years, for permission to do this. If the appropriate interest rate is 8 percent, what is the present value of the cash flow stream that the company is offering you? (Round factor values to 4 decimal places, e.g. 1.5215 and final answer to 2 decimal places, e.g. 15.25.)
Answer: $2,592,156.90
Explanation:
The payments of $461,000 are constant so this will be an annuity.
The present value of the cashflow being offered will therefore be the $461,000 being paid today plus the present value of the annuity.
Present value of Annuity = Annuity * Present value interest factor for 8%, 6 years.
= 461,000 * 4.6229
= $2,131,156.90
Present Value of cashflow;
= 461,000 + 2,131,156.9
= $2,592,156.90
Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. As a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only thing to be changed. The bakery makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor-hour, how many workers will lackey need to add?
Answer:
It would take is one worker to finish it. The further explanation is given below.
Explanation:
The given value are:
Complete loaves for every hour of labor
= 2.244
Each employee who works every month.
= 160 hours
Monthly output of one worker will be:
= [tex]Total \ loaves\times Total \ hours[/tex]
= [tex]2.344\times 160[/tex]
= [tex]375.04 \ loaves[/tex]
The increased competition, as we know, seems to be "25%" of 1,500 loaves every month.
= [tex]1500\times 25 \ percent[/tex]
= [tex]375[/tex]
= [tex]\frac{375}{375.04}[/tex]
= [tex]0.99[/tex]
Throughout preparation around for job to be completed, Lackely would need to employ another worker although one worker's monthly output is equivalent to 375.04 loaves as well as the minimum additional loaves every month becomes 375, so what it would take is one worker to finish it.
The managers of Presto Pizza, a popular pizzeria in Concord, California, have been increasingly encouraging senior citizens to order takeout from the pizzeria's numerous outlets spread across the city. Anticipating a rise in the population of senior citizens in the area, the management of Alfredo's Pizza is seeking to tap into this promising segment that consists of retired, affluent consumers. In this instance, most likely, the managers of Alfredo's Pizza are anticipating company growth through ________.
Answer:
Market movement
Explanation:
From the question, we are informed about managers of Presto Pizza, a popular pizzeria in Concord, California, have been encouraging senior citizens to order takeout and free express delivery from the pizzeria's several outlets spread across the city.
In this case, whereby, the management of Alfredo's Pizza is seeking to tap into this promising segment that consists of retired, affluent consumers, the managers of Alfredo's Pizza are anticipating company growth through market movement
Market movement can as well be regarded as material information, it is movement necessary for investors to invest in stock market, through this movement alot of information that can convince the investors to take actions is gathered.
During the month your company paid for gasoline for the company vehicles using the company credit card issued by First Bank. Match the journal entries that are prepared behind the scenes with the corresponding transaction or event that has occurred in QBO. Record purchases on credit card as an Expense Transaction. Answer 1 DR: Gasoline expense, CR: Credit Card payable Reconcile the credit card account and enter a bill for payment later. Answer 2 Choose... Pay the credit card bill with a check
Answer:
1. Record purchases on credit card as an Expense Transaction.
Dr. Gasoline expense Cr. Credit Card payableThe Gasoline purchase is an expense so it is debited to an expense account. The purchase was paid for by the Credit Card which is a liability so it will be credited.
2. Reconcile the credit card account and enter a bill for payment later.
Dr. Credit Card Payable Cr. Accounts PayableAs the credit Card is a liability it will need to be accounted for as an Accounts Payable.
3. Pay the credit card bill with a check
Dr. Accounts payable Cr. CheckingWhen paying for the credit card bill, the Accounts payable will be debited to recognize the reduction in Accounts payable. The checking account is credited to recognize a reduction in money in the bank account.
Rearrange the following steps in the accounting cycle in proper sequence: a. A post-closing trial balance is prepared. 3 b. Adjustment data are asssembled and analyzed. c. Adjusting entries are journalized and posted to the ledger. d. An adjusted trial balance is prepared. e. An optional end-of-period spreadsheet is prepared. f. An unadjusted trial balance is prepared. g. Closing entries are journalized and posted to the ledger. h. Financial statements are prepared. i. Transactions are analyzed and recorded in the journal. j. Transactions are posted to the ledger.
Answer:
The Accounting Cycle of a Business refers to the entire process of accounting for the transactions in the business from the moment the company begins a new transaction to the end of the period where it is aggregated into other accounts and presented to relevant stakeholders.
There are 10 steps to this cycle and they are;
Transactions are analyzed and recorded in the journal. Transactions are posted to the ledger An unadjusted trial balance is prepared Adjustment data are assembled and analyzed An optional end-of-period spreadsheet is preparedAdjusting entries are journalized and posted to the ledger An adjusted trial balance is prepared Financial statements are prepared Closing entries are journalized and posted to the ledger A post-closing trial balance is preparedi ⇒ j ⇒ f ⇒ b ⇒ e ⇒ c ⇒ d ⇒ h ⇒ g ⇒ a
Brief Exercise 3-36 (Algorithmic) Preparing and Analyzing Closing Entries At December 31, 2019, the ledger of Aulani Company includes the following accounts, all having normal balances: Sales Revenue, $83,200; Cost of Goods Sold, $43,700; Retained Earnings, $20,000; Interest Expense, $3,200; Dividends, $5,000; Wages Expense, $8,000, and Interest Payable, $2,100. Required: 1. Prepare the closing entries for Aulani at December 31, 2019. If an amount box does not require an entry, leave it blank. Dec. 31 (Close revenues) Dec. 31 (Close expenses) Dec. 31 (Close Income Summary) Dec. 31 (Close Dividends) 2. How does the closing process affect Aulani's retained earnings? of $
Answer and Explanation:
1. The Closing entries are shown below:-
a. Sales revenue Dr, $83,200
To Income summary $83,200
(Being Close revenue is recorded)
b. Income summary Dr, $54,900
To Cost of goods sold $43,700
To Interest expense $3,200
To Wages expense $8,000
(Being Close expense is recorded)
c. Income summary Dr, $28,300 (83,200 - $54,900)
To Retained earnings $28,300
(Being close income summary is recorded)
d. Retained earnings Dr, $5,000
To Dividend $5,000
(Being Close dividend is recorded)
2. The amount affect after retained earning by
Net income = $28,300 - $5,000
= $23,300
Andy works at AZ Corporation. He has been working very hard and feels he deserves a pay hike. He wants to seek a meeting with Anna, the manager of AZ Corp., and ask for a raise. Since Anna is busy preparing for the annual board meeting, Andy decides to delay the meeting with Anna for a while. Which of the following dimensions to context influenced Andy's interaction with Anna? Group of answer choices The physical context The social context The chronological context The cultural context
The correct answer is C. The chronological context
Explanation:
The chronological context is related to the time during which a situation or communication occurs; this includes the age, year, season, month, day, etc. In the case presented, the chronological context is some days before the annual board meeting. Moreover, this condition of time is the one that makes Andy delay her meeting with Anna because she knows how busy is Anna during this time of the year, and based on this, she considers it is better to wait before asking her for a rise. According to this, the dimension that influences Andy is the chronological context.
Which of the following statements is true concerning the consequences of rent controls? A. Construction companies are big winners because more housing units are being built due to guaranteed rental income. B. Low income earners are big winners since it is easier to obtain housing. C. Property owners are big winners since they receive a guaranteed amount of rent. D. Upper income earners are big winners due to the fact that they can better exploit nonprice rationing devices. E. All of the above.
Answer: D. Upper income earners are big winners due to the fact that they can better exploit nonprice rationing devices.
Explanation:
The market is price rationing which means that when there is more demand than supply for a particular good, it would allocate that good based on price i.e. it will increase the price which would reduce demand and so those who can afford it will afford it.
Nonprice rationing devices (like discrimination) attempt to do this same thing but without using the price mechanism when measures like rent controls are in place.
This means that landlords will start to selectively pick tenants so that they will be sure that they will be paid because they will feel that lower income earners (who can now rent the property due to the rent control) will have a harder time paying. Upper income earners will therefore be big winners because they will get preferential treatment.
Four finalists have been selected for a job as a travel agent. Which candidate will most likely get the job?
O Daniel, who has an associate's degree in hospitality and tourism management and has traveled around the world
for recreational purposes.
O Susan, who has a certificate in reservation systems used by travel agencies and has completed a six-month
internship at a travel agency
O Robert, who has a bachelor's degree in hospitality and tourism management and has completed a six-month
internship at a travel agency
O Stephanie, who has a high school diploma, experience traveling, and has worked as a part-time assistant at a
local travel agency for three years.
Answer:
A
Explanation:
plz brainlest
Among the four finalists, the candidate who has been chosen as one for the role of the travel agent is Daniel who has an associate's degree in hospitality and tourism management and has traveled around the world. Hence, option A is appropriate.
What is the role of a Travel Agent?The role of a travel agent is very important nowadays, especially in times when the whole world is reeling under pressure and continuous understanding of things. The most important development over here has to be understood in a variety of ways. The most important of the following things is to clearly understand the notion and understanding of the place where one is targeted to go.
The other most important thing regarding the role of the Travel agent is to carefully understand the requirements of the customers who are willing to travel. To arrange for their own needs and also to make a requisite number of arrangements for the following things.
The other most important thing regarding the role of travel agents is to carefully supervise the hotels, and the travel accommodations- i.e, the transportation and all. The Role of a travel agent is to properly arrange a packaged tour for the same.
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What is the term for the joining of two or more firms involved in different stages of producing the same good or service?
horizontal merger
conglomerate
closely held corporation
vertical merger
Answer:
vertical merger
Explanation:
Economic Order Quantity computes:
A: Cost of an order
B: Re-order level
C: Cost of stock
D: Optimum Order size
Answer:
D: Optimum Order size
Explanation:
Economic Order Quantity (EOQ) is a formula applied in logistic and supply chain management to calculate a business's ideal order size. As the name suggests, the order EOQ provides an order quantity that makes economic sense.
Economies of scale suggest that a bigger order size is better because the business will save transport costs. However, ordering in large quantities increases the cost of holding stock. The economic order quantity strikes a balance between these two important factors.
Hudek Inc., a manufacturing Corporation, has provided the following data for the month of July. The balance in the Work in Process inventory account was $20,000 at the beginning of the month and $10,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $50,000 and direct labor cost of $22,000. The actual manufacturing overhead cost incurred was $58,000. The manufacturing overhead cost applied to Work in Process was $56,000. The cost of goods manufactured for July was:
Answer:
$138,000
Explanation:
The computation of cost of goods manufactured for July is shown below:-
Cost of goods manufactured for July = Opening work in progress + Direct material + Direct labor + Manufacturing cost - Closing work in progress
= $20,000 + $50,000 + $22,000 + $56,000 - $10,000
= $148,000 - $10,000
= $138,000
Therefore for computing the cost of goods manufactured for July we simply applied the formula.
A publication's final deadline for supplying printing material for an advertisement is a ________________?
A. on sale date
B. Cover date
c. Closing date
D.Birth date
Answer:
c. Closing date
Explanation:
No advertisement is accepted for the next edition after the Closing Date. For an ad to run after this date, the publisher has to issue written permission. Cancellations are also not accepted after this date. Unless otherwise agreed, clients are expected to make full payments for the ad by the end of the closing date.
The on-sale date is the day the issue is expected at the newsstand for customers to buy.
Which examples demonstrate tasks commonly performed in Printing Technology jobs? Check all that apply.
Curtis writes articles for a local newspaper.
Opal creates a schedule for all the printing press projects lined up for a facility.
Ramona writes a long novel.
Natasha assigns articles to Reporters and Correspondents.
Glenn uses computer software to prepare a document for publishing.
Theo sews together bindings for books.
Answer:
2,5,6
Explanation:
Answer:
-Opal creates a schedule for all the printing press projects lined up for a facility.
-Glenn uses computer software to prepare a document for publishing.
-Theo sews together bindings for books.
Explanation:
or 2,5,6
If Ford Motor Company builds a new auto plant in South Africa this is considered to be
Group of options omitted and they are
a) brownfield investment only
b) brownfield and horizontal investment
c) greenfield and horizontal investment
d) greenfield and vertical investmen
Answer:c) greenfield and horizontal investment
Explanation:
A green-field investment is foreign direct investment whereby a parent company establishes a new subsidiary in a different or foreign country, starting its operations from the scratch, ie building the establishment from ground up and not buying an already existing plant or structure..
By horizontal direct investment , it means that the investor establishes the same type of operation in a different country as it operates in its home country, for example, Ford Motor Company based in the United States building a new auto plant in South Africa.
The cost C and the revenue R for a brokerage firm depend on the number T of transactions executed. (Both C and R are measured in dollars.) It costs $730 per day to keep the office open, and brokers are paid an average of $25 per transaction. Also, $35 in fees are collected for each transaction. (a) Find a formula that gives C as a function of T. C(T) = (b) Find a formula that gives R as a function of T. R(T) = (c) Find the number of daily transactions that are needed to make the revenue $1200 more than the cost. 33 daily transactions
Answer:
C(T) = $730 + $25T
R(T) = $35T
T = 193 transactions
Explanation:
Given that:
C = cost ; R = revenue ; T = number of transactions
Amount paid per transaction = $25
Cost keeping office open = $730
Amount collected on each transaction = $35
(a) Find a formula that gives C as a function of T.
C(T) = Cost of keeping office open + (cost per transaction × number of transactions)
C(T) = $730 + $25T
(b) Find a formula that gives R as a function of T.
R(T) = (Amount collected per transaction * number of transactions)
R(T) = $35T
(c) Find the number of daily transactions that are needed to make the revenue $1200 more than the cost.
R = C + 1200
Substitute the value of R and C into the equation:
35T = 730 + 25T + 1200
35T - 25T = 730 + 1200
10T = 1930
T = 1930 / 10
T = 193 transactions
Several factors affect a firm’s need for external funds. Evaluate the effect of each following factor and place a check next to each factor that is likely to increase a firm’s need for external capital—that is, its AFN (additional funds needed). Check all that apply. The firm increases its dividend payout ratio. The firm’s inventory turnover decreases, with no effect on the sales forecast. The firm previously thought its fixed assets were being operated at full capacity, but now it learns that it actually has excess capacity. Dividends to common shareholders are paid out of after-tax earnings. Do these payouts affect a firm’s AFN? No, dividends do not affect a firm’s AFN, because they are paid out of after-tax earnings. Yes, dividends still affect a firm’s AFN even though they are paid out of after-tax earnings.
Answer:
1.
The firm increases its dividend payout ratio.This will increase the need for external funds because with more funds going towards dividends, there will be less funds available to fund operations. The company will therefore be more probable of being in need of Additional funds.
The firm’s inventory turnover decreases, with no effect on the sales forecast.If the firm's inventory turnover increases, it means that the firm is taking longer to sell off inventory. This will mean that the company will have to invest more in working capital to maintain these inventory levels. This will lead to a higher probability of them needing additional funds.
2. Yes, dividends still affect a firm’s AFN even though they are paid out of after-tax earnings.
Even though they are paid after-tax, they still eat into the funds that the business can be able to set aside to fund operations. So when dividends are paid, the need for AFN increases as well.
Is some number of occupational illnesses and injuries an acceptable part of doing business? Why or why not? Explain your answers.
Answer:
Explanation:
No injury or illness is ever an acceptable part of doing business. It reflects poorly on the company if they don't take the proper steps to prevent illness and injury. OSHA works hard to make sure work places are safe, and levy large fines if they don't meet safety requirements. In addition, if an injury or illness occurs the company can be sued, depending on the severity, the company could go out of business.
X Manufacturing uses a normal cost system and had the following data available for 20x8: Direct materials purchased on account $148,000 Direct materials requisitioned 98,000 Direct labor cost incurred 127,000 Factory overhead budgeted 155760 Factory overhead incurred 137,800 Cost of goods sold 260,000 Beginning direct materials inventory 34,000 Beginning WIP inventory 70,000 Beginning finished goods inventory 55,000 Ending finished goods inventory 104,000 Overhead application rate, as a percent of direct-labor costs 118% Round your answers to the nearest dollar. Fill in the blank without $ or comma or period, e.g., 12345 What is the adjusted cost of goods sold assuming the over/under applied overhead is immaterial?
Answer:
Adjusted cost of goods sold = $247,940
Explanation:
Under / Over-applied overhead = Factory overhead incurred - Factory overhead applied
Under / Over-applied overhead = Factory overhead incurred - (Direct labor cost*Overhead application rate)
= $137,800 - ($127,000*118%)
Over-applied overhead = $137,800 - $149,860
Over-applied overhead = ($12,060)
Adjusted cost of goods sold = Unadjusted cost of goods sold - Over-applied overhead
Adjusted cost of goods sold = $260,000 - $12,060
Adjusted cost of goods sold = $247,940
The adjusted trial balance of Gary Cooper Co. as of December 31, 2014, contains the following.
GARY COOPER CO.
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $20,892
Accounts Receivable 8,340
Prepaid Rent 3,700
Equipment 19,470
Accumulated Depreciation-
Equipment $6,315
Notes Payable 7,120
Accounts Payable 6,892
Common Stock 21,420
Retained Earnings 12,730
Dividends 4,420
Service Revenue 13,010
Salaries and Wages Expense 8,260
Rent Expense 2,154
Depreciation Expense 251
Interest Expense 189
Interest Payable 189
$67,676 $67,676
Instructions:
(a) Prepare an income statement.
(b) Prepare a statement of retained earnings.
(c) Prepare a classified balance sheet.
Answer and Explanation:
The presentation of each of the financial statement is presented below:
1.
GARY COOPER CO.
Income Statement
For the Year Ended December 31, 2020
Particulars Amount
Revenues:
Service revenue $13,010
Total revenue (a) $13,010
Less: Expenses:
Salaries and wages expense $8,260
Rent expense $2,154
Depreciation expense $251
Interest expense $189
Total expenses (b) $10,854
Net Income (a - b) $2,156
2.
GARY COOPER CO.
Retained Earnings Statement
For the Year Ended December 31, 2020
Particulars Amount
Beginning balance of Retained earnings $12,730
Add: Net income $2,156
Less: Dividends -$4,420
Ending balance of Retained earnings $10,466
3.
GARY COOPER CO.
Balance Sheet
For the Year Ended December 31, 2020
Assets:
Cash $20,892
Accounts receivables $8,340
Prepaid rent $3,700
Equipment 19470
Less: Accumulated depreciation
on equipment ($6,315) $13,155
Total Assets $46,087
Liabilities and Stockholder's Equity:
Current Liabilities:
Accounts payable $6,892
Notes payable $7,120
Interest payable $189
Total Current liabilities $14,201
Stockholder's equity:
Common stock $21,420
Retained earnings $10,466
Total Stockholder's Equity $31,886
Total Liabilities and Stockholder's Equity $46,087
6. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. The quality of goods available to consumers The costs of air and water pollution Expenditures on federal highways The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the component of GDP while also net exports by the same amount. Therefore, the purchase of wood from Brazil causes in US GDP. g
Answer:
a.
The quality of goods available to consumers The costs of air and water pollution The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the governmentb. investment; decreases; no overall change
Explanation:
a. GDP only measures goods that have monetary value so when a good cannot be properly quantified in terms of cash, it is difficult to account for it in GDP. Also, even if the good has monetary value for the Government was unaware of it, they will be unable to use it in the calculation of GDP.
For these reasons, the quality of goods available to consumers, the costs of air and water pollution and the value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government will not be a part of GDP calculation.
b. When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the investment component of GDP while also decreasing net exports by the same amount. Therefore, the purchase of wood from Brazil causes no overall change in US GDP.
Purchasing raw materials for use in production is considered Investment by GDP. However, since it was imported it will reduce Net Exports which means that the transaction would cancel itself out in the GDP calculation as it would both increase investment and decrease Net exports by the same amounts.
Fandry Company has obtained the following data concerning a new product: Production Costs, Using traditional costing method $3.00 per unit Production Costs, Using activity-based costing method $5.00 per unit Nonproduction Costs, Using activity-based costing method $2.50 per unit Fandry Company wants the price of the new product to cover all costs plus a 100% markup. The production process used for the low volume product is very complicated and it has a higher proportion of indirect costs than direct costs. What price per unit should Fandry Company charge for the new product
Answer:
$15.00 per unit
Explanation:
Calculation for the price per unit that Fandry Company should charge for the new product
Using this formula
Price per unit for new product =Production Costs, Using traditional costing method per unit ×
Production Costs, Using activity-based costing method per unit
Let plug in the formula
Price per unit for new product=$3.00 per unit ×$5.00 per unit
Price per unit for new product=$15.00 per unit
Therefore the price per unit that Fandry Company should charge for the new product will be $15.00 per unit
onald owns a two-family home. He rents out the first floor and resides on the second floor. The following expenses attributable to the total building were incurred by Donald for the year ended December 31, 2019: Real estate taxes $1,800 Mortgage interest 1,600 Utilities 1,200 Repairs (first floor) 1,400 Painting (second floor) 400 In addition, the depreciation attributable to the entire building would be $2,000. What is the total amount of the expenses that Donald can deduct on Schedule E of Form 1040 (before any limitations)
Answer:
$3,300
Explanation:
The computation of the total amount of the expenses is shown below:-
Total amount of the expense = Real estate taxes + Mortgage interest + Utilities + Repairs + Paintings + Repairing
= ($1,800 ÷ 2) + ($1,600 ÷ 2) + ($1,200 ÷ 2) + 0 + ($2,000 ÷ 2)
= $900 + $800 + $600 + $0 + $1,000
= $3,300
So, we have applied the above formula.
An investment counselor calls with a hot stock tip. He believes that if the economy remains strong, the investment will result in a profit of $10,000. If the economy grows at a moderate pace, the investment will result in a profit of $30,000. However, if the economy goes into recession, the investment will result in a loss of $30,000. You contact an economist who believes there is a 30% probability the economy will remain strong, a 60% probability the economy will grow at a moderate pace, and a 10% probability the economy will slip into recession. What is the expected profit from this investment?
Answer:
6,000
Explanation:
The expected value from this investment can be calculated by possible values for random variables by multiplying them by their probability
DATA
Strong = 30,000 , probability = 30%
Moderate = 10,000 , probability = 60%
Weak = -30,000 , probability = 10%
Calculation
Expected profit = Values x Probability
Expected profit = (30,000 x 30%) + (10,000 x 60%) + ( 30,000 x 10%)
Expected profit = 6,000 + 6,000 -6,000
Expected profit = 6,000
