Answer:
a. $270,000
Explanation:
Department A:
Manufacturing overhead=200% of direct labor
80000 = 200% of direct labor
So, direct labor = 80000/200%=$40,000
Department B:
Manufacturing overhead=50% of direct labor
So, Manufacturing overhead = 50%*60000=$30,000
Total manufacturing cost = Material cost + Labor cost + Manufacturing overhead
- Material cost = 50000+10000=$60,000
- Direct labor cost = 40000+60000=$100,000
- Manufacturing overhead = 80000+30000=$110,000
Total manufacturing cost = $60,000 + $100,000 + $110,000
Total manufacturing cost = $270,000
Solve each of the following three problems, all of which involve borrowing money from a bank with an APR of 6.5% compounded annually. Look carefully at how the problems differ from one another, in spite of appearing similar. In your solutions, say a few words explaining how you can tell which is the appropriate formula to apply in each case.
a. Suppose that you borrow $1000 once per year, beginning today, and ending 10 years from now (so you borrow your last $1000 on the ten year anniversary of today’s date). How much will your total debt be at the end of the 10th year?b. Suppose that you borrow $10,000 today. You repay the loan over the course of ten years, making a payment every year on the anniversary of today’s date. The first payment will be one year from today, and the last payment will be ten years from today. How much should each payment be?c. Suppose that you borrow $10,000 today, and repay the loan all at once, on the ten year anniversary of today’s date. How much will you have to repay on that date?
Answer:
a. The formula is annuity immediate. This requires annual addition at the end of each period. The total debt at the end of the 10th year is $16,248.70.
b. Amortized loan repayment is applicable here since the loan and interest are repaid every year. Therefore, the payment every year is: $1,391.05.
c. The compound interest formula is used here since the interest accumulates annually but repayment of loan is due at the end of 10 years. The total debt due for repayment at the end of the 10th year is $18,771.37.
Explanation:
1. Data and Calculations:
Starting Principal = $1000
Annual Addition = $1000
Annual interest rate = 6.5%
Period of loan = 10 years
The formula is annuity immediate. This requires annual addition at the end of each period.
Using the annuity calculator for annual addition at the end of each period, the loan's:
End Balance $16,248.70
Total Principal $11,000.00
Total Interest $5,248.70
2. Starting Principal = $10,000
Annual interest rate = 6.5%
Period of loan = 10 years
Amortized loan repayment is applicable here since the loan and interest are repaid every year. Therefore, the payment every year is: $1,391.05
Total of 10 Payments $13,910.47
Total Interest $3,910.47
3. Starting Principal = $10,000
Annual interest rate = 6.5%
Period of loan = 10 years
Compound interest formula is used here since the interest accumulates annually but repayment of loan is due at the end of 10 years.
Using an online financial calculator, the future debt will total $18,771.37 with a total compounded interest of $8,771.37 ($18,771.37 - $10,000).
FV = $18,771.37
Total Interest $8,771.37
Tomas, manager of a 50-person engineering department, exhibits group maintenance behaviors; that is he ensures employee satisfaction, harmonious work relationships, and the department's social stability. However, his division manager, Stan, notes that Tomas' department rarely achieves its yearly goals, in terms of work speed, quality and accuracy, output, and compliance with company policies and requirements. How would you advise Stan to coach Tomas to perform his job at a higher level and to increase the performance of Tomas' organization
Answer: Tell Thomas to focus more on task performance behaviors.
Explanation:
The options are:
a. Tell Thomas to focus more on group maintenance behaviors.
b. Tell Thomas to focus more on participative leadership.
c. Tell Thomas to focus more on task performance behaviors.
d. Tell Thomas to focus more on democratic leadership.
e. Tell Thomas to focus more on social factors.
Based on the information given in the question, the answer will be for Thomas to focus more on task performance behaviors.
This will enable Thomas to know whether the employees in the department are performing their roles well or not. He already exhibits group maintenance behaviors and participative leadership. Therefore, option C will be the right answer.
Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Zweifel Galleries. The following balance sheet of Zweifel is given in an abbreviated form below.
ZWEIFEL GALLERIES BALANCE SHEET AS OF DECEMBER 31, 2017
Assets Liabilities and Stockholders' Equity
Cash $100,000 Accounts payable $50,000
Land 70,000 Notes payable (long-term) 300,000
Buildings (net) 200,000 Total liabilities 350,000
Equipment (net) 175,000 Common stock $200,000
Copyrights (net) 30,000 Retained earnings 25,000 225,000
Total assets $575,000 Total liabilities and stockholders' equity $575,000
Moss and Zweifel agree that:
1. Land is undervalued by $30,000.
2. Equipment is overvalued by $5,000.
Zweifel agrees to sell the gallery to Moss for $350,000.
Required:
Prepare the entry to record the purchase of Zweifel Galleries on Moss's books.
Answer:
Dr Cash 100,000
Dr Land 100,000
Dr Equipment 170,000
Dr Building 200,000
Dr Copyright 30,000
Dr Goodwill 100,000
Cr Accounts payable 50,000
Cr Long-term notes payable 300,000
Cr Cash 350,000
Explanation:
Goodwill = sales price - net assets + fair value adjustments = $350,000 - ($575,000 - $350,000) + ($30,000 - $5,000) = $100,000
Prepare the Post-Closing Trial Balance for Smart Touch Learning as of December 31, 2016. Enter accounts in order of assets, liabilities, and equity. Assume all accounts have normal balances.
Account Balance
Accounts Receivable 1,500
Accumulated Depreciation - Furniture 100
Cash 50,980
Common Stock 40,800
Furniture 10,900
Office Supplies 290
Prepaid Insurance 900
Retained Earnings 14,670
Salaries Payable 4,400
Unearned Revenue 4,600
Answer:
Follows are the solution to this question:
Explanation:
Intelligent learning
Trail balance until closure
31st December 2016.
Account- title Dr. Cr.
Receivable Accounts 1,300
cash 45,710
Furniture 9,100
Office materials 350
Insurance prepayments 1,050
Accumulated deprecciation - Furniture 100
payable wages 4,600
Unearned income 4,400
Common inventory 35,500
retention of profits 12,910
Total 57,510 57,510
Patrick has an adjusted gross income of $160,000 in the current year. He donated $30,000 in cash to a public charity, capital gain property with a basis of $15,000 and a fair market value of $40,000 to a public charity, and publicly traded stock with a basis of $20,000 and a fair market value of $35,000 to a private nonoperating foundation. The amount that Patrick can deduct for the stock donation to the private nonoperating foundation is ______.
An$8,000
swer:
Explanation:
Non-cash contributions of capital gain property are subject to limit of 30% of AGI = 30% * 160000 = $48,000
$40,000 in property to public charity is allowable deduction (Contribution to private non-operating foundation is further subject to a 30% limit)
Hence, allowable deduction of contribution to private non-operating foundation = 30% * AGI (Contribution subject to 30% limit) = $48,000 - $40,000 = $8,000
Samantha has the following assets and liabilities. What is her net worth?
Assets
car - $4,200
savings account - $200
cash - $20
Liabilities
car loan - $1,500
credit card - $100
Indiana Company produces couches. The fixed monthly cost of production is $8,000, and the variable cost per unit is $65. The couches sell for $180 apiece. Answer these questions: 3 points each 1) For a monthly volume of 300 tables, determine the total cost, total revenue, and profit. 2) Determine the monthly break-even volume for Indiana Company.
Answer: See explanation
Explanation:
1) For a monthly volume of 300 tables, determine the total cost, total revenue, and profit.
Fixed monthly cost = $8000
Variable cost per unit = $65
Selling price = $180 each
Monthly volume = 300
Therefore, the total cost will be
= $8000 + ($65 × 300)
= $8000 + $19500
= $27500
The total revenue will then be:
= Price × Quantity
= $180 * 300 units
= $54000
Total profit will be:
= Sales revenue - Cost
= $54000 - $27500
= $26500
b) Break even volume simply means the volume whereby no profit or loss is incurred. This will be:
= $8000 / ($180 - $65)
= $8000 / $115
= 69.56 units
= 70 units
Membership in the Cape Fear Health Club has been recorded for the past nine years. Management wants to determine the trend of membership in order to project future space needs. This estimate would help the club determine whether a future expansion will be needed. Given the following time series data, develop a regression equation relating memberships to years. Based on your regression equation, what is your forecast for 2020 memberships? Memberships are in hundreds.
Year > 2011 2012 2013 2014 2015 2016 2017 2018 2019
#'s > 11 13 15 17 16 18 20 19 23
a. 22.b. 24.6.c. 23.3.d. 11.e. 25.9.
Answer:
c). 23.3
Explanation:
Period Demand X Y XY [tex]$X^2$[/tex]
1 11 1 11 11 1
2 13 2 13 26 4
3 15 3 15 45 9
4 17 4 17 68 16
5 16 5 16 80 25
6 18 6 18 108 36
7 20 7 20 140 49
8 19 8 19 152 64
9 23 9 23 207 81
∑ 45 152 837 285
Intercept[tex]$(B_0) = \Sigma Y \times \Sigma X^2 - \Sigma X \times \frac{\Sigma XY}{(N\times \Sigma X^2 - \Sigma X^2)} $[/tex]
Intercept [tex]$= (152\times 285)-\frac{45 \times 837}{(9 \times 285)-45^2}$[/tex]
= 10.47
Slope [tex]$(B_1)= ((N\times \Sigma XY) - (\Sigma X \times \Sigma Y)-(N \times \SIgma X^2 - \Sigma X^2)$[/tex]
Slope [tex]$=((9\times837)-\frac{(45 \times 152)}{(9 \times 285)-45^2} $[/tex]
= 1.28
Therefore, the equation is
Y = intercept + slope(X)
[tex]$Y=10.47 + (1.25 \times X)$[/tex]
For [tex]$X=10$[/tex] forecast [tex]$= 10.47 + (1.28 \times 10)$[/tex]
= 23.27 or 23.3
Defaulting on a bond most nearly means
the bond issuer cannot pay the promised amount
O the bond issuer pays a percentage of the bond's value
O the bond holder sells the bond on the secondary market
O the bond's rating has decreased
One of the key decisions employers must make is the level of compensation provided to employees. Compensation is a significant cost, and employees are one of the most important assets of the organization. It is important that the organization makes and executes good strategic choices. To facilitate this process, many organizations think systematically about its job structures for compensation and pay levels for different jobs.
An organization's job structure consists of relative pay for different functions and different levels of responsibility. It defines, for example, the difference in pay between entry-level and management jobs, as well as different entry-level jobs in different departments, such as in production or accounting. Pay level is the average amount that an organization pays for a particular job and includes wages, salaries, and bonuses. Job structure and pay levels together form the pay structure, a policy that helps the organization achieve goals related to employee motivation, cost control, and the ability to attract and retain talented employees.
This activity is important because it will help you distinguish between the various factors that impact an organization’s pay structure. The goal of this activity is to classify decisions based on the factors used to establish a pay structure.
HR professionals develop pay structures for their organations based on such factors as legal requirements, company goals, and market forces. Drag each item into the appropriate column on the chart.
1. Equal pay for equal work
2. National compensation survey
3. Product markets
4. Benchmarking
5. Equitable pay rates
6. Child labor laws
7. Federal minum- wage laws
8. Overtime pay
9. Retention of talented staff
10. Trends in labor markets
11. Company cost centers
A. Legal Requirements
B. Organizational Goals
C. Market Forces
Answer:
1. Company goals
2.Market forces
3. market forces
4. company goals
5. market forces
6. legal requirement
7. legal requirement
8. company goals
9. company goals
10. market survey
11. company goals
Explanation:
Company goals is to maintain its business profitable. It is important for a business to retain its talented employees for maintaining quality of products. Legal requirements are the laws which are required to be followed by the businesses.
Taher, an employee with Wilco Plumbing, has been transferred to a different division within the company. To facilitate a smooth transition, the company has initiated a program for Taher that will provide him with the knowledge and skills required to perform the new role effectively. Which of the following human resource management practices did Wilco Plumbing perform?a) trainingb) job analysisc) performance managementd) selectione) recruitment
Answer: training
Explanation:
From the question, we are informed that Taher, is an employee for Wilco Plumbing, and was sent to a different segment in the company and that the company initiated a program that will provide him with the knowledge and skills which is necessary to perform the new role effectively. The human resource management practices performed here is training.
Training simply refers to the learning that one undergoes in a company so that the person can have the required knowledge and skills to perform well in the role that he or she is assigned in the he company and also so that organizational goals can be attained.
Post Adjusting Entries Post all adjusting entries to the t-accounts and calculate ending balances. Post the transactions in the order they appear in the journal entries.
Date Accounts and Explanation Debit Credit
Dec. 31 Salaries Expense 4,400
Salaries Payable 4,400
Date Accounts and Explanation Debit Credit
Dec. 31 Depreciation Expense - Furniture 100
Accumulated Depreciation - Furniture 100
Date Accounts and Explanation Debit Credit
Dec. 31 Insurance Expense 300
Prepaid Insurance 300
Date Accounts and Explanation Debit Credi
Dec. 31 Supplies Expense 110
Office Supplies 110
Date Accounts and Explanation Debit Credit
Dec. 31 Unearned Revenue 200
Service Revenue 200
Date Accounts and Explanation Debit Credit
Dec. 31 Accounts Receivable 700
Service Revenue 700
Answer:
Salaries expense Salaries payable
Debit Credit Debit Credit
4,400 4,400
Depreciation exp, furniture Accumulated dep, furniture
Debit Credit Debit Credit
100 100
Insurance expense Prepaid insurance
Debit Credit Debit Credit
300 300
Supplies expense Office supplies
Debit Credit Debit Credit
110 110
Unearned revenue Service revenue
Debit Credit Debit Credit
200 200
700
900
Accounts receivable
Debit Credit
700
what is the meaning of gpp in poultry industry
Answer:
five year ghana poultry program
Explanation:
In January 2020, Ezra purchased 2,000 shares of Gold Utility Mutual Fund for $20,000. In June, Ezra received an additional 100 shares as a dividend, in lieu of receiving $1,000 in cash dividends. In December, the company declared a two-for-one stock split. Ezra received an additional 2,100 shares, but there was no option to receive cash. At the time of the stock dividend in December and at the end of the year, the fund shares were trading for $5 per share. Also, at the end of the year, the fund offered to buy outstanding shares for $4.50. Ezra did not sell any shares during the year.
If an amount is zero, enter "0".
a. What is Ezra's gross income from the 100 shares received in June?
$X
b. What is Ezra's gross income from the receipt of the 2,100 shares as a two-for-one stock split in December?
$X
c. Should Ezra be required to recognize gross income in 2016 even though the fair market value of his investment at the end of the year was less than the fair market value at the beginning of the year?
Answer:
a. Ezra's gross income from the 100 shares received in June is $1,000.
b. Ezra's gross income from the receipt of the 2,100 shares as a two-for-one stock split in December is equal to $0.
c. The $1,000 gross income realized by Ezra in 2016 will be recognized by him. Also, when the shares are sold by Ezra, he is allowed to deduct an economic loss.
Explanation:
a. What is Ezra's gross income from the 100 shares received in June? $X
Since it is not stated that the price per share changed from January to June, we have:
Price per share in June = Amount of shares purchased in January / Number of shares purchased in January = $20,000 / 2,000 = $10
Gross income from 100 shares received in June = Price per share in June * Number of shares received = $10 * 100 = $1,000
This shows that gross income is equal to the amount of the cash dividends Ezra would have received if he had not receive an additional 100 shares as a dividend.
Therefore, Ezra's gross income from the 100 shares received in June is $1,000.
b. What is Ezra's gross income from the receipt of the 2,100 shares as a two-for-one stock split in December? $X
The impact of two-for-one stock split is to increase the number of shares of the company by 50% but also to reduce its price per per by 50%. As a result, the total value of shares held by each shareholders remains the same.
Since the total value of shares held by Ezra remains the same, this implies that Ezra's gross income from the receipt of the 2,100 shares as a two-for-one stock split in December is equal to $0.
c. Should Ezra be required to recognize gross income in 2016 even though the fair market value of his investment at the end of the year was less than the fair market value at the beginning of the year?
The $1,000 gross income realized by Ezra in 2016 will be recognized by him. Also, when the shares are sold by Ezra, he is allowed to deduct an economic loss.
Classified Balance Sheet The following accounts appear in an adjusted trial balance of Kangaroo Consulting. Indicate whether each account would be reported in the current asset; property, plant, and equipment; current liability; long-term liability; or stockholders' equity section of the December 31, 2015, balance sheet of Kangaroo Consulting.
1. Accounts Payable
2. Accounts Receivable
3. Accumulated Depreciation—Building
4. Cash
5. Common Stock
6. Note Payable (due in ten years)
7. Supplies
8. Wages Payable
Answer:
current asset
4. Cash2. Accounts Receivable7. Suppliesproperty, plant, and equipment
3. Accumulated Depreciation: BuildingContra asset account that decreases the carrying value of fixed assets.
current liability
1. Accounts Payable8. Wages PayableThey have to be paid within the following accounting period.
long-term liability
6. Note Payable (due in ten years)Has to be paid in more than 1 year.
stockholders' equity section
5. Common StockTanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $354,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 4% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $1,400 before adjustment
Answer:
Dr Bad Debt Expense $12,760
Cr Allowance for Doubtful Accounts $12,760
Explanation:
Based on the information given the adjusting journal entry that Tanning Company will make if the Allowance for Doubtful Accounts has a credit balance of the amount of $1,400 before adjustment will be :
Dr Bad Debt Expense $12,760
Cr Allowance for Doubtful Accounts $12,760
[(4%*$354,000)-$1,400]
Which are included in a customer profile?
Select all that apply.
A.)social media messages
B.)socioeconomic status
C.)promotions and prices
D.)attitudinal and behavioral details
E.)marketing strategies
F.)demographic information
Hey there!
I would say the answers are B, C, F
The others do not seem like something that would be in a customer profile.
Hope it helps and have a great day!
Functions of money and barter
Consider an economy in which money does not exist, so that agents rely on barter to carry out transactions. When the economy was small, barter seemed sufficient. However, the economy has now begun to grow. If people in this economy trade three goods, the price tag of each good must list ______prices, and the economy requires______prices for people to carry out transactions. Suppose that the number of goods people trade increases to 15. Then the price tag of each good must list ______prices, and the number of prices that the economy requires increases to_____.
Now suppose that our economy has a money. The government now issues a national currency and there is no longer any barter. In this economy, money and currency are the same because:
1. Just because the government issues currency does not mean that the currency will be accepted as money, since it must be used as a medium of exchange, store of value and standard of value.
2. The fact that the government issues currency means that the currency will be accepted as money by all agents.
3. The fact that the currency is backed by the government means that it will never lose value and will remain a perfect unit of account.
4. Just because the government issues currency does not mean that the currency will be accepted as money, and buyers and sellers still need barter to ensure that money does not lose its value.
Suppose now that our economy is suffering from rapid, ongoing increases in the cost of living. Which characteristic of money is directly negatively impacted in that economy?
1. Medium of exchange.
2. Double coincidence of wants.
3. Store of value.
4. Unit of account.
Answer:
a. 9 prices
b. 9 prices
c. 225 prices
d. 225
e. 2. The fact that the government issues currency means that the currency will be accepted as money by all agents.
f. The characteristic of money that is directly negatively impacted in that economy by the rapid, ongoing increases in the cost of living is the:
3. Store of value.
Explanation:
Before the advent of money or currency, the system of exchanging goods and services between two people was the barter system. This system relies on the exchange of goods and services that are required by one person if she can find another person who has the goods or services and is willing to accept or actually needs the goods or services that the first person has. It was a complicated marketplace that involves locating the other party in the barter transaction.
management accounting is accounting for effective management. Explain this statement.
Explanation:
Management is the process of organizing, commanding, coordinating and controlling administrative resources. When we talk about management accounting, we relate to a company's financial resources, which are essential for profitability, payments, investments, etc., that is, so that the business can flow effectively.
Therefore, it is correct to say that managerial accounting is the accounting for effective management because accounting is an instrument of control and management for organizing financial accounts and indexes, these being essential instruments in helping to better decision making in a period of time, giving subsidies for managers to adapt and anticipate negative financial situations for example.
27) Which of the following is NOT a potential benefit of owning a small business?
Answer:
D I'm not sure if correct ..
You are considering buying stock A. If the economy grows rapidly, you may earn 40 percent on the investment, while a declining economy could result in a 15 percent loss. Slow economic growth may generate a return of 3 percent. If the probability is 19 percent for rapid growth, 39 percent for a declining economy, and 42 percent for slow growth, what is the expected return on this investment
Answer:
3.01%
Explanation:
Calculation for what is the expected return on this investment
Expected return =(0.19)(0.40) + (0.42)(0.03) + (0.39)(-0.15)
Expected return=0.076+0.0126+-0.0585
Expected return=0.0301*100
Expected return=3.01%
Therefore the expected return on this investment will be 3.01%
Coronado Co. reports the following information for 2020: sales revenue $767,500, cost of goods sold $505,000, operating expenses $84,800, and an unrealized holding loss on available-for-sale debt securities for 2020 of $52,000. It declared and paid a cash dividend of $12,650 in 2020. Coronado Co. has January 1, 2020, balances in common stock $360,700; accumulated other comprehensive income $86,400; and retained earnings $91,890. It issued no stock during 2020. (Ignore income taxes.)
Required:
Prepare a statement of stockholders' equity.
Answer and Explanation:
The preparation of the statement of stockholder equity is presented below:
The net income could be find out by applying the following formula
= Sales - cost of goods sold - operating expenses
The statement of stockholder equity is a collection of common stock, retained earnings, comprehensive income and other comprehensive income
Beeman Company exchanged machinery with an appraised value of $4,680,000, a recorded cost of $7,200,000 and accumulated depreciation of $3,600,000 with Lacey Corporation for machinery Lacey owns. The machinery has an appraised value of $4,520,000, a recorded cost of $8,640,000, and accumulated depreciation of $4,752,000. Lacey also gave Beeman $160,000 in the exchange. Assume depreciation has already been updated.Instructions(a) Prepare the entries on both companies' books assuming that the exchange lacked commercial substance. (Round all computations to the nearest dollar.)
(b) Prepare the entries on both companies ; books assuming that the exchange had commercial substance. (Round all computations to the nearest dollar.)
Answer:
Attached below is the solution
Explanation:
Given data:
A) prepare the entries on both companies books
B) Prepare entries on both companies
hello attached below is the detailed solution
Taxable income terminology Taxable Income Terminology Match the terms relating to the basic terminology and concepts of personal finance on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term These are not necessarily complete definitions, but there is only one possible answer for each term
Term Answer Description
A. To qualify for exclusion during this transaction, you must have owned and Gross income ▼ occupied for two of the five prior years
B. This term essentially includes all income subject to federal tax Active income Portfolio income
C. Using taxable income, it is based on tax tables or tax rate schedules Passive income
D. This term includes expenses that can only offset portfolio income.
E. This is used to offset passive income Investment expenses
F. This term includes income from self-employment Real estate or limited partnership expenses Capital gains
G. This item is taxed at different rates depending on the holding period Sale of a home A TH,
H. This is used to determine tax liability Taxable income
I. This term includes income gained from real estate and limited partnerships ▼ Tax liability C
J. This term refers to earnings and capital gains generated from investment holdings
Answer:
A. To qualify for exclusion during this transaction, you must have owned and occupied for two of the five prior years ⇒ Sale of a home.
B. This term essentially includes all income subject to federal tax ⇒ Gross Income.
C. Using taxable income, it is based on tax tables or tax rate schedules ⇒ Tax liability.
D. This term includes expenses that can only offset portfolio income. ⇒ Investment expenses.
E. This is used to offset passive income Investment expenses. ⇒ Real estate or limited partnership expenses.
F. This term includes income from self-employment ⇒ Active Income.
G. This item is taxed at different rates depending on the holding period ⇒ Capital gains.
H. This is used to determine tax liability ⇒ Taxable income.
I. This term includes income gained from real estate and limited partnerships. ⇒ Passive income.
J. This term refers to earnings and capital gains generated from investment holdings. ⇒ Portfolio income.
Journalize the following transactions for Cullumber Company.
Sept. 1 Purchased supplies for $1,020 cash. 5 Paid $410 cash dividend to stockholders.
7 Received $5,500 down payment from customer for services to be provided in the future.
16 Received $770 cash from a previously billed customer for payment of services provided in the prior month.
22 Purchased equipment for $3,000 by paying $1,100 cash and issued a note payable for the balance.
Answer and Explanation:
The journal entries are shown below
On Sept 1
Supplies Dr $1,020
To Cash $1,020
(being supplies purchased in cash)
On Sept 5
Dividend Dr $410
To cash $410
(being cash dividend is paid)
On Sept 7
cash Dr 5,500
To Unearned service revenue $5,500
(being cash collection is recorded)
On Sept 16
Cash Dr $770
To Account receivable $770
(being cash collection is recorded)
On Sept 22
Equipment Dr $3,000
To cash $1,100
To Note payable $1,900
(being equipment purchased is recorded)
The following information is related to Nash Company for 2020.
Retained earnings balance, January 1, 2020 $901,600
Sales Revenue 23,000,000
Cost of goods sold 14,720,000
Interest revenue 64,400
Selling and administrative expenses 4,324,000
Write-off of goodwill 754,400
Income taxes for 2020 1,144,480
Gain on the sale of investments 101,200
Loss due to flood damage 358,800
Loss on the disposition of the wholesale division (net of tax) 404,800
Loss on operations of the wholesale division (net of tax) 82,800
Dividends declared on common stock 230,000
Dividends declared on preferred stock 73,600
Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49.)
Answer:
Nash Company
Multi-step Income Statement
For the year ended December 31, 2020:
Sales Revenue $23,000,000
Cost of goods sold 14,720,000
Gross income $8,280,000
Operating Expenses:
Selling and administrative expenses 4,324,000
Loss due to flood damage 358,800
Write-off of goodwill 754,400
Total operating expenses $5,437,200
Operating income $2,842,800
Interest revenue 64,400
Gain on the sale of investments 101,200
Income before taxes $3,008,400
Income taxes for 2020 1,144,480
Income after taxes $1,863,920
Loss on the disposition of
the wholesale division (net of tax) 404,800
Loss on operations of the
wholesale division (net of tax) 82,800
Net Comprehensive Income $1,376,320
Dividends declared: preferred stock 73,600
Earnings available to equity holders 1,302,720
Retained earnings 1/1/2020 901,600
Dividends declared: common stock 230,000
Retained earnings, 12/31/2020 $1,974,320
Explanation:
Nash's multi-step income statement has separate sections for operating income and other incomes before net comprehensive income. This last income is the point at which dividends are paid out to preferred stockholders before the retained earnings beginning balance are added, and then dividends are paid to the common stock.
Debit and Credit Effects of Transactions
Lincoln Corporation was involved in the following transactions during the current year:
Lincoln borrowed cash from the local bank on a note payable.
Lincoln purchased operating assets on credit. Lincoln paid dividends in cash.
Lincoln purchased supplies inventory on credit.
Lincoln used a portion of the supplies purchased in Transaction d.
Lincoln provided services in exchange for cash from the customer.
A customer received services from Lincoln on credit.
The owners invested cash in the business in exchange for common stock.
The payable from Transaction d was paid in full.
The receivable from Transaction g was collected in full.
Lincoln paid wages in cash.
Indicate the effect on assets, liabilities and stockholders equity.
Solution :
Stock holder's equity
Assets = Liabilities + Contributed Capital Retained earnings
a. Increase Increase
(debit) (credit)
b. Increase Increase
(debit) (credit)
c. Decrease Decrease
(credit) (debit)
d. Increase Increase
(debit) (credit)
e. Decrease Decrease
(credit) (debit)
f. Increase Increase
(debit) (Credit)
g. Increase Increase
(debit) (Credit)
h. Increase Increase
( debit) (credit)
i. Decrease Decrease
(Credit) (debit)
j. Increase/Decrease
(debit)/(credit)
k. Decrease Decrease
(credit) (debit)
Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. Currently, college tuition, books, fees, and other costs average $8,000 per year. On average, tuition and other costs have historically increased at a rate of 2% per year. Assuming that college costs continue to increase an average of 2% per year and that all her college savings are invested in an account paying 10% interest, then the amount of money she will need to have available at age 18 to pay for all four years of her undergraduate education is closest to
A. $37.232.13
B. $40,955.35
C. $42.952,46
D. $11.425,97
Answer:
B. $40,955.35
Explanation:
The computation of the amount that need to pay is shown below:
The Amount needed at 18 age is
= Present value of all future expenses
= $8000 × (1.02)^18 + $8,000 × (1.02)^19 ÷ 1.1 +$ 8000 × (1.02)^20 ÷ (1.1)^2 + $8,000 × (1.02)^21 ÷ (1.1)^3
= $11,425.6 + 10,594.98 + 9,824.44 + 9,109.39
= $40,954.95
It is nearest to option B
You are the manager of two plants (factories) in Mexico that manufacture shoes. The combined monthly output of both plants is to be 10,000 pairs of shoes. How you would best divide this output of 10,000 pairs of shoes between the two plants. You may make your arguments in words with the aid of diagrams, i.e., without the use of math. On the other hand, if you are comfortable with math (calculus), the following additional information may be made use of by you. The cost function of Plant 1 is C1 = a1Q1 + a2Q12 + Q13and that of Plant 2 is C2 = b1Q2 + b2Q22 + Q23, where Q1 and Q2 denote, respectively, the outputs of Plant 1 and Plant 2.
Answer:
Explanation:
The purpose of allocating the output of the shoes is to diminish the total cost of production. The process is achieved by assigning a pair of shoes that requires production at the factory with a marginal lower cost of the two plants. Afterward, the firms will have to equate the marginal cost of production across the two firms.
For firm 1:
The cost of production [tex]c_1 = a_1Q_1 ^2 +a_2Q_1^2+Q_1^3[/tex]
Differentiating with respect to [tex]Q_1[/tex] to determine the marginal cost;
For firm 1, the Marginal cost [tex]MC_1 = a_1 +2a_2Q_1+3Q_1^2[/tex]
For firm 2; the marginal cost [tex]MC_2 = b_1 +2b_2Q_2+3Q_2^2[/tex]
Equating both from above:
[tex]a_1 +2a_2Q_1+3Q_1^2 = b_1 +2b_2Q_2+3Q_2^2[/tex]
Recall that:
[tex]Q_1 = 10000 - Q_2[/tex]
Thus, we can replace the value of [tex]Q_1[/tex] into the above equation to determine the value of [tex]Q_2[/tex] in terms of [tex]a_1, a_2, b_1, b_2[/tex] by applying a quadratic formula.
Assuming we knew the values of [tex]a_1, a_2, b_1, b_2,[/tex] we can estimate the numerical value of [tex]Q_2[/tex], then replace it into the equation [tex]Q_1 = 10000 – Q_2[/tex] to find the numerical value for [tex]Q_1[/tex].
In 2004 a California woman named Lisa Torti was in a vehicle with her friend Alexandra Van Horn when they were involved in a car accident that was not their fault. Lisa, upon seeing what she thought was smoke, grabbed Alexandra and quickly pulled her out of the vehicle and away from danger. Alexandra had a severe spinal injury and later sued Lisa for moving her away from the smoking vehicle (and thereby causing more spinal injury).
Many states have laws that prevent bringing lawsuits against a "good samaritan" who is attempting to help you. However, in 2008 a California court ruled 4-3 that Alexandra’s lawsuit against Lisa was justified and could continue.
Assuming Lisa was in fact negligent in moving her friend from the vehicle, discuss your opinion on whether cases like this should be allowed to be brought. Under what circumstances should a "good samaritan" be allowed to be sued?
Explain your answer in 2 or more paragraphs. Then review a few of your classmates posts and give a substantive response to one of them with a paragraph.
The correct answer to this open question is the following.
This case is complex because the "good samaritan" is always doing things trying to help and under these circumstances such as danger or accident, tje individual is under so much stress, nervousness, and fear. So more than thinking, he/she is reacting.
And that is what Lisa did when she saw smoke in the car. She thought that her friend could be in danger or great risk and her first reaction -not thinking- was to move her and keep her out of the danger zone.
Assuming Lisa was in fact negligent in moving her friend from the vehicle, the trial should proceed but it is difficult to demonstrate in court the real intentions of the "good samaritan."
The circumstances in which a "good samaritan" should be allowed to be sued is when there is clear evidence that he/she acted on purpose, trying to inflict pain or damage to the other person.
Lisa Torti was sued by her friend Alexandra Van Horn, after a car accident in 2004. The California court concluded that there was no medical reason to pull Alexandra out of the car, causing her vertebral damage.
