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.
Mather Company purchased equipment on January 1, 2012 at a total invoice cost of $224,000; additional costs of $4,000 for freight and $20,000 for installation were incurred. The equipment has an estimated salvage value of $8,000 and an estimated useful life of five years. The amount of accumulated depreciation at December 31, 2013 if the straight-line method of depreciation is used is:
Answer:
$96,000
Explanation:
Note that December 2013 is the end of the second year since the equipment was purchased, hence, the accumulated depreciation is 2-year accumulated depreciation which is shown thus:
Annual depreciation=(cost of equipment-salvage value)/useful life
The cost of equipment includes total invoice cost, freight, and installation costs
The cost of equipment=$224,000+$4,000+$20,000
The cost of equipment=$248,000
salvage value=$8,000
useful life= 5 years
Annual depreciation=($248,000-$8000)/5
Annual depreciation=$240,000/5
Annual depreciation=$48,000
Accumulated depreciation for 2 years=$48,000*2
Accumulated depreciation for 2 years=$96,000
19. In its accrual basis income statement for the year ended December 31, 2012, Nelson Company reported revenue of $3,500,000. Additional information is as follows: Accounts receivable-- Beg.
December 31, 2011 ............... $ 750,000
Net income for 2012 .................................. 140,000
Accounts receivable--End. December 31, 2012 ............... 1,010,000
Nelson should report cash collected from customers in its 2012 statement of cash flows (direct method) in the amount of
a. $3,240,000.
b. $3,100,000.
c. $3,380,000.
d. $3,760,000.
____ 20. Stiggins Corporation had the following account balances for 2012: December 31 January 1
Accounts Payable ...................... $67,200 $58,200
Prepaid Rent Expense .................. 24,600 37,200
Accounts Receivable (net) ............. 84,000 66,600
Stiggins' 2012 net income is $450,000. What amount should Stiggins include as net cash provided by operating activities in its 2012 statement of cash flows?
a. $436,200
b. $445,200
c. $453,600
d. $454,200
Answer:
a. $3,240,000.
b. $445,200
Explanation:
1. Particulars Amount
Beginning account receivable $750,000
Add: Revenue $3,500,000
Less: Ending account receivable $1,010,000
Cash collected from customer $3,240,000
2. Particulars Amount
Net income $450,000
Adjustment to reconcile net income
Increase account payable $9,000
Decrease prepaid rent expenses $12,600
Increase account receivable $17,400 $4,200
Net cash provided by operating activities $454,200
As a worker, will you work properly even if the boss is not around? Yes or no?
Answer:
Yes
Explanation:
Because it is our duty to work properly even the boss is around or not
Answer:
Yes
Explanation:
No matter what you're getting paid for what you have to so & its your job no matter what and as growing up you become responsible for your actions
Question 5 of 10
An increase in the money supply that causes money to lose its purchasing
power and prices to rise is known as
A. deflation
B. recession
C. conflation
D. inflation
On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,824. Cash receipts yet to be deposited into the checking account total $3,218, and checks written by the academy but not yet processed by the bank total $1,305. The company's balance of cash does not reflect a bank service fee of $23 and interest earned on the checking account of $34. These amounts are included in the balance of cash of $5,922 reported by the bank as of the end of August. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2021. (Amounts to be deducted should
Answer:
1. Bank balance per reconciliation $7,835
Company balance per reconciliation $7,835
2. August 31, 2021
Dr Cash $34
Cr Interest revenue $34
August 31, 2021
Dr Service fees expense $23
Cr Cash $23
Explanation:
1. Preparation of a bank reconciliation to calculate the correct ending balance of cash on August 31, 2021 .
BANK CASH BALANCE
Per bank statement $5,922
Add deposit outstanding $3,218
Less check Outstanding ($1,305)
Bank balance per reconciliation $7,835
COMPANY CASH BALANCE
Per general ledger $7,824
Less service fees ($23)
Interest earned $34
Company balance per reconciliation $7,835
Therefore the correct ending balance of cash on August 31, 2021 will be :
Bank balance per reconciliation $7,835
Company balance per reconciliation $7,835
2.Preparation of the necessary entries to adjust the balance for cash
August 31, 2021
Dr Cash $34
Cr Interest revenue $34
August 31, 2021
Dr Service fees expense $23
Cr Cash $23
On December 1, 2022, Escobar Consulting, which uses a calendar year as its fiscal year, signs a $4,000, 12%, four-month note payable. Journalize the entry to record the payment of the note and entire interest on April 1, 2023.
A. Debit Notes Payable $4,160 Credit Interest Expense 160 Credit Cash $4,000
B. Debit Notes Payable $4,160 Credit Cash $4,160 You got it wrong :
C. Debit Notes Payable $4,000 Debit Interest Expense 160 Credit Cash $4,160 This is correct answer :
D. Debit Notes Payable $4,000 Debit Interest Expense 120 Debit Interest Payable 40 Credit Cash $4,160
Answer:
D. Debit Notes Payable $4,000 Debit Interest Expense 120 Debit Interest Payable 40 Credit Cash $4,160
Explanation:
The journal entry is shown below:
Note payable Dr $4,000
Interest expense $120 (($4,000 × 12% × 4 months ÷ 12 months) - $40)
Interest payable $40 ($4,000 × 12% × 4 months ÷ 12 months ÷ 4 month)
To Cash $4,160
(being cash paid is recorded)
Here the note payable, interest payable and interest expense is debited as it decreased the liabilities and increased the expenses while on the other hand the cash is credited as it decreased the assets
Sandhill Co. began operations on January 2, 2020. It employs 13 people who work 8-hour days. Each employee earns 11 paid vacation days annually. Vacation days may be taken after January 10 of the year following the year in which they are earned. The average hourly wage rate was $19 in 2020 and $20.25 in 2021. The average vacation days used by each employee in 2021 was 10. Sandhill Co. accrues the cost of compensated absences at rates of pay in effect when earned.
Prepare journal entries to record the transactions related to paid vacation days during 2020 and 2021.
Answer:
2020
Dr Wages expense $21,836
Cr To vacation wages payable $18,720
On 2021
Dr Wages expense $1,300
Dr Vacation wages payable $19,760
Cr Cash $21,060
2021
Dr Wages expense $23,166
Cr To vacation wages payable $23,166
Explanation:
Preparation of the journal entries to record the transactions related to paid vacation days during 2020 and 2021.
2020
Dr Wages expense $21,836
(13 × 8 hrs × 11 days × $19)
Cr To vacation wages payable $18,720
(Being to record wages expense )
2021
Dr Wages expense $1,300
($21,060-$19,760)
Dr Vacation wages payable $19,760
(13 × 8 hrs × 10 days × $19)
Cr Cash $21,060
(13 × 8 hrs × 10 days × $20.25)
(Being to record cash paid )
2021
Dr Wages expense $23,166
(13 × 8 hrs × 11 days × $20.25)
Cr To vacation wages payable $23,166
(Being to record wages expense )
Tesla's use of renewable energy sources is an example of which type of corporate social responsibility?
A. Responsibility to stakeholders
B. Responsibility to society
C. Corporate philanthropy
D. Environmental responsibility
Answer:
D. Environmental responsibility
Explanation:
Environmental responsibility can be defined as a set of efforts adopted by companies with the objective of reducing the negative impacts related to business activities and adopting practices aimed at environmental protection.
In the case of Tesla, the use of renewable energies is an example of environmental responsibility, as the company's focus is the production of electric vehicles, which, unlike vehicles that use fossil fuels, do not emit polluting gases that contribute to the greenhouse effect.
Therefore, Tesla offers an alternative that reduces the environmental impact of vehicles, attesting to their environmental responsibility and increasing the brand value, reliability and positioning with stakeholders, being a company aligned with the highest parameters of promoting sustainability.
The following events occurred for Johnson Company:
a. Received investment of cash by organizers and distributed to them 1,180 shares of $1 par value common stock with a market price of $15 per share.
b. Purchased $8,200 of equipment, paying $1,500 in cash and owing the rest on accounts payable to the manufacturer.
c. Borrowed $14,000 cash from a bank. Loaned $800 to an employee who signed a note.
d. Purchased $20,343 of land; paid $9,000 in cash and signed a note for the balance.
Required:
For each of the events (a) through (d), perform transaction analysis and indicate the account, amount, and direction of the effect (increase or decrease) on the accounting equation.
Answer:
a. Received investment of cash by organizers and distributed to them 1,180 shares of $1 par value common stock with a market price of $15 per share.
Account Debit Credit
Cash $17,700
Common Stock $1,180
Additional Paid-In Capital $16,520
Assets increase, and stockholder's equity increase by the same amount: $17,700.
b. Purchased $8,200 of equipment, paying $1,500 in cash and owing the rest on accounts payable to the manufacturer.
Account Debit Credit
Equipment $8,200
Cash $1,500
Accounts Payable $6,700
Assets increase by a net $6,700 (Equipment - Cash), and Accounts Payable by $6,700 as well.
c. Borrowed $14,000 cash from a bank. Loaned $800 to an employee who signed a note.
Account Debit Credit
Cash $14,000
Notes Payable $14,000
Notes Receivable $800
Cash $800
Assets increase by a net $14,000 (Cash + Notes Receivable - Cash), and liabilities increase by $14,000
d. Purchased $20,343 of land; paid $9,000 in cash and signed a note for the balance.
Account Debit Credit
Land $20,343
Cash $9,000
Notes Payable $11,343
Assets increase by a net $11,343 (Land - Cash), and liabilities increase by the same amount.
The gross domestic product (GDP) of the United States is defined as the all in a given year. Based on this definition, which of the following will be included in (that is, directly increase) the GDP of the United States in 2017?
a. Sofaland, a Swedish furniture company, produces a table at a plant in Virginia on December 5, 2017. It sells the table to a college student on December 19, 2017. An accountant starts a client's 2017 tax return on April 14, 2018, finishing it just before midnight on April 15, 2018.
b. Treetopplers, an American lumber company, produces wood at a plant in Oregon on September 5, 2017. It sells the wood to Buildit and Partners, a developer, for use in the production of a new house that will be made in the United States In December.
c. Athleticus, an American shoe company, produces a pair of sneakers at a plant in Vietnam on March 5, 2017. Athleticus imports the pair of sneakers into the United States on May 14, 2017.
d. Zippy car, an American automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 6, 2017. It sells the car at a dealership in Philadelphia on February 18, 2017.
Explanation:
GDP is defined as the value of all final goods and services that were produced In the US within a given year.
With this in mind,
A. Sofaland would be included in the GDP of the US, since the table was made and sold in the US in 2017.
B. The finished tax return by the accountant would not be included in the GDP as production for 2018 as it is not yet finished.
C. The lumber company treetopplers would not be included as part of the GDP since the production of lumber cannot be regarded as final good.
D. Athleticism"s importation from Vietnam to the US is not part of gdp since it is not domestic production.
E. Zippycar made the car in the us and sold in the US same year. This would be included in gdp of US.
Acker Inc. bought 40% of Howell Co. on January 1, 2020 for $576,000. The equity method of accounting was used. The book value and fair value of the net assets of Howell on that date were $1,440,000. Acker began supplying inventory to Howell as follows:
Year Cost to Acker Transfer Price Amount Held by Howell at Year-End
2020 $55,000 $75,000 $15,000
2021 $70,000 $110,000 $55,000
Howell reported net income of $100,000 in 2010 and $120,000 in 2011 while paying $40,000 in dividends each year. What is the amount of unrealized intra-entity inventory profit to be deferred on December 31, 2010?
Answer:
the amount of unrealized intra-entity inventory profit is $1,600
Explanation:
The computation of the amount of unrealized intra-entity inventory profit is given below:
= Profit percentage × amount at year end × purchase percentage
= (($75,000 - $55,000) ÷ $75,000) × 15,000 × 40%
= $1,600
hence, the amount of unrealized intra-entity inventory profit is $1,600
The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The December 31, 2021, balance sheet revealed the following:
Inventory $890,000
Total assets $3,500,000
Current ratio 2.40
Acid-test ratio 1.40
Debt to equity ratio 1.5
Required:Determine the following 2016 balance sheet items:1. Current assets2. Shareholders' equity3. Non-current assets4. Long-term liabilities
Answer:
1. Current assets $2,136,000
2. Shareholders' equity $2,000,000
3. Non-current assets $1,364,000
4. Long term liabilities = $610,000
Explanation:
Calculation to determine the following 2016 balance sheet items: Current assets, Shareholders' equity, Non-current assets and Long-term liabilities
1. Current assets
First step is to calculate the Acid test ratio using this formula
Acid test ratio = (Current assets-Inventory)/Current liabilities
Let plug in the formula
1.40 = (2.40X-$890,000)/X
1.40X = 2.40X-$890,000
-1.00X = $890,000
X=$890,000/1.00
X = $890,000
Now let calculate the Current assets
Current assets =$ 890,000*2.4
Current assets = $2,136,000
Therefore Current assets will be $2,136,000
2. Shareholders' equity
Using this formula
Total assets = Debt+Equity
Let plug in the formula
$3,500,000 = 1.5X+X
X = $2,000,000
Therefore Shareholders' equity will be $2,000,000
3 .Non-current assets
Long term assets = $3,500,000- $2,136,000
Long term assets = $1,364,000
Therefore Non-current assets will be $1,364,000
4. Long-term liabilities
Long term liabilities =[($3,500,000-$2,000,000)-$890,000]
Long term liabilities =$1,500,000-$890,000
Long term liabilities = $610,000
Therefore Long term liabilities will be $610,000
Florissa's Flowers jointly produces three varieties of flowers in the same garden: tulips, lilies, and daisies. The flowers are all watered via the same irrigation system and all receive the same amount of water; daisies require three times as much as lilies, and the water required for tulips is about halfway between the amounts needed for daisies and lilies. Although the lilies and tulips receive more water than they need due to the joint irrigation process, they are not hurt by the overwatering. The joint production cost of the three varieties of flowers is about $30 per harvest. Every harvest yields 10 tulips, 20 lilies, and 20 daisies.
1. Allocate the joint costs of production to each product using the physical units method.
Joint
Product Flowers
per Harvest Proportion Joint
Costs Allocation
Tulip % $ $
Lily %
Daisy %
Totals $
Which products receive the largest portion of the joint costs?
received the largest portion of the joint costs.
2. Allocate the joint costs of production to each product using the weighted average method.
Joint
Product Flowers
per Harvest Weight
Factor Weighted
Flowers
of Water Weighted
Percent
of Water Joint
Costs Allocation
Tulip % $ $
Lily %
Daisy %
Totals $
Which product receives the largest portion of the joint costs?
received the largest portion of the joint costs.
3. Why would it be important to consider the watering process as an appropriate weight factor?
a. The cost of watering the plants is a large portion of the joint costs and the company follows the same irrigation system for all three varieties of flowers.
b. It is a natural resource which is more precious.
c. Daisies have the highest market value.
d. None of the above.
Answer:
1.) Lilies and Daisies received the largest portion of the joint costs.
2.) Daisies received the largest portion of the joint costs.
3.) a. The cost of watering the plants is a large portion of the joint costs and the company follows the same irrigation system for all three varieties of flowers.
Explanation:
Physical unit method :
Joint product _Flo /harvest _prop__JC__Alloc
Tullip ________10 _______0.20 _ 30 __ 6
Lilly _________ 20 ______0.40 _ 30 __ 12
Daisy ________ 20 ______0.40 _ 30 __ 12
Allocation = proportion * joint cost
B.)
Weighted average method :
If daisy requires 3 tines as much as lilies and tulips requires something in between both ;
Then ;
Daisy = 3 ; lilies = 1 ;
Tullips = (daisy + lilies) / 2 = (3 +1) / 2= 4/2 = 2
Weighted average method :
JP_Flo /H_ WF__WFW_W%__pro__JC__Alloc
Tullip_10 __ 2 __ 20 _ 20% _0.20 _ 30 __ 6
Lilly_ 20 ___ 1 __ 20 _ 20% _0.20 _ 30 __ 6
Daisy_20 __ 3__ 60 _ 60% _0.60 _ 30 __ 18
Allocation = joint cost * proportion
The toy buyer had the option of ordering stuffed animals directly from the manufacturer or from a nearby wholesaler. The manufacturer will not ship orders for less than $1,200 total list price. Delivery typically requires five weeks, and freight averages 2.5% of total billed cost. Trade discounts on this merchandise are 40% and 10%; terms are 2/10, n/30.
A wholesaler, located in the retailer's area, stocks many of the same stuffed animals. He does not require a minimum order and will deliver at no charge in the area if the order has a billed cost of at least $500. The manufacturer and wholesaler base cost on the same list price; however, the wholesaler sells with trade discounts of 40% and 8% and terms of 1/15. n/30.
Required:
What is the difference in the total net cost (including freight) of merchandise with a total list price of $1, 200 from these two vendors?
Answer:
difference between supplies = $4.68
Explanation:
cost of merchandise from manufacturer if paid within discount period:
$1,200 x (1 - 40%) = $720
$720 x (1 - 10%) = $648
freight cost = $648 x 2.5% = $16.20
discount for early payment = $648 x 2% = $12.96
total cost = $651.24
cost of merchandise from wholesaler if paid within discount period:
$1,200 x (1 - 40%) = $720
$720 x (1 - 8%) = $662.40
discount for early payment = $648 x 1% = $6.48
total cost = $655.92
difference between supplies = $4.68
Cost of merchandise from manufacturer if paid within discount period:
$1,200 x (1 - 40%) = $720 and $720 x (1 - 10%) = $648
Cost of merchandiseFreight cost = $648 x 2.5% = $16.20
Discount for early payment = $648 x 2% = $12.96
Then Total cost is = $651.24
Then the price of merchandise from wholesaler if paid within discount period: $1,200 x (1 - 40%) = $720 and $720 x (1 - 8%) = $662.40
After that discount for early payment is= $648 x 1% = $6.48
Then the full cost is = $655.92
Thus, the right answer is that the difference between supplies = $4.68
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Mike Greenberg opened Cheyenne Window Washing Inc. on July 1, 2022. During July, the following transactions were completed.
July 1 Issued 9,800 shares of common stock for $9,800 cash.
1 Purchased used truck for $6,560, paying $1,640 cash and the balance on account.
3 Purchased cleaning supplies for $740 on account.
5 Paid $1,440 cash on a 1-year insurance policy effective July 1.
12 Billed customers $3,030 for cleaning services performed.
18 Paid $820 cash on amount owed on truck and $410 on amount owed on cleaning supplies.
20 Paid $1,640 cash for employee salaries.
21 Collected $1,310 cash from customers billed on July 12.
25 Billed customers $2,050 for cleaning services performed.
31 Paid $240 for maintenance of the truck during month.
31 Declared and paid $490 cash dividend.
Journalize the July transactions.
Post to the ledger accounts.
Prepare a trial balance at July 31.
Journalize the following adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
(1) Services performed but unbilled and uncollected at July 31 were $1,750.
(2) Depreciation on equipment for the month was $202.
(3) One-twelfth of the insurance expired.
(4) An inventory count shows $320 of cleaning supplies on hand at July 31.
(5) Accrued but unpaid employee salaries were $415.
Answer:
Cash (Dr.) $9.800
Common Stock (Cr.) $9,800
Truck (Dr.) $6,560
Cash (Cr.) $1,640
Accounts Payable -Truck (Cr.) $4,920
Cleaning Supplies (Dr.) $740
Accounts Payable (Cr.) $740
Prepaid Insurance (Dr.) $1,440
Cash (Cr.) $1,440
Accounts Receivable (Dr.) $3,030
Service Revenue (Dr.) $3,030
Accounts Payable - Truck (Dr.) $820
Accounts Payable - Supplies (Dr.) $410
Cash (Cr.) $1,230
Cash (Dr.) $1,310
Accounts Receivable (Cr.) $1,310
Maintenance Expense Truck (Dr.) $240
Cash (Cr.) $240
Dividend paid (Dr.) $490
Cash (Cr.) $490
Explanation:
1) Accounts Receivable (Dr.) $1,750
Service Revenue (Cr.) $1,750
2) Depreciation expense (Dr.) $202
Accumulated Depreciation (Cr.) $202
3) Insurance Expense (Dr.) $120
Prepaid Insurance (Cr.) $120
4) Ending Inventory (Dr.) $320
Cleaning Supplies (Cr.) $320
5) Salaries Expense (Dr.) $415
Salaries Payable (Cr.) $415
Mayweather reports net income of $305,000 for the year ended December 31. It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment. Its comparative balance sheet reveals a $40,200 increase in accounts receivable, a $10,200 decrease in prepaid expenses, a $15,200 increase in accounts payable, a $12,500 decrease in wages payable, a $75,000 increase in equipment, and a $100,000 decrease in notes payable. Calculate the net increase in cash for the year.
Answer:
206,400.00
Explanation:
Calculation for the net increase in cash for the year
Net Income 305,000
Adjustment to reconcile Net Income to Net Cash
Add:
Depreciation Expense 93,700
Loss on sale of equipment 10,000
Cash flow from Operations 408,700
(305,000+93,700+10,000)
Changes in Current Assets/Current Liabilities
Less Increase in Accounts Receivable (40,200)
Decrease in Prepaid Expenses 10,200
Increase in Accounts Payable 15,200
Less Decrease in Wages Payable (12,500) (27,300)
Net cash provided by operating activities 381,400
(408,700-27,300)
Cash flow from investing activities
Increase in equipment (75,000)
Net cash provided by investing activities (75,000)
Cash flow from financing activities
Decrease in Notes payable (100,000)
Net cash provided by financing activities (100,000)
Net Increase/(Decrease) in cash $206,400
Therefore the net increase in cash for the year will be $206,400
Prepare Two Column Cash Book from the following transactions and balance the book on 31st Jan., 2021:-
2021
Jan. 1
Cash in hand 50,000; Bank overdraft 1,90,000.
Jan. 2
Purchased goods from Rajesh Kumar of the list price of 50,000 at 5% trade discount and payment made by cheque.
Jan. 6
Goods sold for 80,000 and payment received by cheque. Cheque deposited into Bank on same day.
Jan. 10
Goods purchased for cash 19,800.
Jan. 15
Furniture sold for 1,77,000 and payment received by cheque & cheque deposited into Bank on same day.
Jan. 18
Salaries paid 4,500.
Jan. 21
Settled the amount due to Ram 2,000 by paying cash 1,910.
Jan. 22
Cash received from Jai 14,780 in full settlement of his account of 15,000.
Jan. 23
Paid Life Insurance premium 1,500.
Jan. 31
Deposited with bank the entire balance after retaining 7,000 cash in hand.
Answer:
On January 21, Balance c/d are:
Cash = $7,000
Bank = $49,570
Explanation:
Note: See the attached excel file for the Two Column Cash Book.
Also note the following in the attached Two Column Cash Book:
(1) Jan. 1 Bank overdraft 1,90,000 is recorded in the Two Column Cash Book as 190,000 to correct the error in the figure.
(2) Jan. 15 Furniture sold for 1,77,000 is recorded in the Two Column Cash Book as 177,000 to correct the error in the figure.
(3) Jan. 18 Salaries paid 4,500 is assumed to be paid by cheque since no specific form of payment in indicated.
(4) Jan. 23 Paid Life Insurance premium 1,500 is assumed to be paid by cheque since no specific form of payment in indicated.
(5) VN represents Voucher Number.
(5) PR represents Posting Reference.
(6) C represents Contra entry.
(7) The Jan. 31 Bank and Cash (C) of $36,070 which is the entire balance deposited with bank after retaining 7,000 cash in hand is obtained as follows:
Entire balance deposited with bank = Total cash received - Total cash paid - $7,000 retained = $64,780 - ($19,800 + $1,910) - $7,000 = $36,070
(8) Balance c/d represents Balance carried down.
(8) Balance b/d represents Balance brought down.
Kirk Enterprises offers rug cleaning services to business clients. Below is the adjustments data for the year ended July 31.Adjustments:
a. Depreciation expense, $1,000.
b. Wages accrued, but not paid, $2,000.
c. Supplies on hand, $8,000.
d. Of the unearned revenue, 75% has been earned.
e. Unexpired insurance at July 31, $9,000.
Question Completion:
KIRK Enterprises
Trial Balance as of July 31:
Account Titles Debit Credit
Cash 36,000
Prepaid Insurance 12,000
Fees Receivable 56,000
Supplies 12,000
Equipment 60,000
Accumulated Depreciation 12,000
Unearned Revenue 20,000
Accounts Payable 32,000
Common Stock 84,000
Dividends 4,000
Service Revenue 80,000
Advertising Expense 28,000
Wage Expense 20,000
Totals 228,000 228,000
Required:
Using this information along with the spreadsheet below, record the adjusting entries in proper general journal form.
Answer:
Kirk Enterprises
Unadjusted Adjustments Adjusted
Trial Balance Trial Balance
Account Titles Debit Credit Debit Credit Debit Credit
Cash 36,000 36,000
Prepaid Insurance 12,000 3,000 9,000
Fees Receivable 56,000 56,000
Supplies 12,000 4,000 8,000
Equipment 60,000 60,000
Accumulated Depreciation 12,000 1,000 13,000
Unearned Revenue 20,000 15,000 5,000
Accounts Payable 32,000 32,000
Wages Payable 2,000 2,000
Common Stock 84,000 84,000
Dividends 4,000 4,000
Service Revenue 80,000 15,000 95,000
Advertising Expense 28,000 28,000
Wage Expense 20,000 2,000 22,000
Insurance Expense 3,000 3,000
Supplies Expense 4,000 4,000
Depreciation Expense 1,000 1,000
Totals 228,000 228,000 25,000 25,000 231,000 231,000
Explanation:
a) Adjustments:
Depreciation expense $1,000 Accumulated Depreciation $1,000
Wages expense $2,000 Wages payable $2,000
Supplies expense $4,000 Supplies $4,000 ($12,000 - $8,000)
Unearned revenue $15,000 Service Revenue $15,000 ($20,000 * 75%)
Insurance expense $3,000 Prepaid Insurance $3,000 ($12,000 - 9,000)
Consider the following game in extensive form: The King of Siam has many enemies who would like to poison him. His Highness seeks a Royal Taster to taste his food before He eats. The King generously offers a wage w < 10 to anyone who will take the job. The going wage for labor in Siam is w0. The values his life at 10. His Enemies value his death at 10 also, and poisoning attempts cost 5.
Stage 1: The King chooses to Hire or Not Hire a Taster at wage w.
Stage 2: The Enemies choose to Poison or Not Poison.
The game tree with moves and payoffs is as follows:
a. Write down the strategies for Players 1 (King) and 2 (Enemies). Write down the Normal form of the game
b. Find the Nash equilibria of the game.
c. Use Backward Induction to solve the game.
d. Will the King need to offer a wage greater than the going wage wo to attract a willing taster? Why or why not
Solution :
a). The normal form in the game is given below as :
The King
The Enemies Hire Not hire
To Poison (-5, 10-w) (5, 0)
Not to Poison (0, 10-w) (0, 10)
b). For the enemies there is no such dominant strategy and the king also does not have any dominant strategy. Therefore, there is no pure strategy of Nash equilibrium.
c). The backward induction helps to suggest that there is a spine for the game when the king hires a Royal taster and the enemies do not poisons the king : (Hire, Not poison).
d). Yes the king needs to offer a wage that is greater than going wage, [tex]$w_0$[/tex] in order to attract the willing taster as the value of the life of his more.
​"A permanent increase in government purchases has a larger effect than a temporary increase of the same​ amount." Use the​ saving-investment diagram to evaluate this​ statement, focusing on effects on​ consumption, investment, and the real interest rate for a fixed level of output. ​(​Hint: The permanent increase in government purchases implies larger increases in current and future taxes​.)
Answer:
here
Explanation:
Consider a chemical factory that is situated next to a farm. Airborne emissions from the chemical factory damage crops on the farm. The marginal benefits of emissions to the factory and the marginal costs of damage to the farmer are as follows: Quantity of emissions (Q) 100 200 300 400 500 600 700 800 900 MB to factory 320 280 240 200 160 120 80 40 0 MC to farmer 110 130 150 170 190 210 230 250 270 Calculate the total net benefit to the farmer and factory at the economically and socially efficient quantity of emissions. A. $63000 B. $62000 C. $60750 D. $61000
Answer:
Marginal Benefits of Emissions
Total net benefit to the farmer and factory at the economically and socially efficient quantity of emissions is $30,000 when the quantity of emission is 200 tons.
Explanation:
a) Data and Calculations:
Quantity of Marginal Marginal Total Net Benefit
emissions (Q) Benefits Cost or Cost
100 320 110 21,000
200 280 130 30,000
300 240 150 27,000
400 200 170 12,000
500 160 190 -15,000
600 120 210 -54,000
700 80 230 -105,000
800 40 250 -168,000
900 0 270 -243,000
Ridgewood, Inc. manufactures upholstery fabric and uses process costing. In the Weaving Department, direct materials are added at the beginning of the process, and conversion costs are added evenly throughout the process. During the month, the Weaving Department used $280,000 of direct materials and $70,000 of conversion costs. At the end of the month, 10,000 equivalent units of direct materials and 9,000 equivalent units of conversion costs had been used. What is the cost per equivalent unit for conversion costs
Answer:
See below
Explanation:
Martin Inc. began construction on a building in 2020 and paying a construction company $600,000 in 2020. Martin also had avoidable interest of $30,000 and actual interest of $100,000 in 2020. Martin financed the construction with a $1,000,000, 10% loan specific to the project. The project was completed on September 30, 2021. Additional expenditures in 2021 were as follows:
Feb. 28 $90,000
Apr. 30 180,000
Jul. 1 36,000
Sept. 30 64,000
Required:
Once completed, how much is capitalized in Martin’s Building account? Show all your work.
Answer:
$1,000,00
Explanation:
Amount paid to Construction company = $600,000
Additional expenditures in 2021 are Feb 28 = 90,000, Apr. 30 180,000, Jul. 1 = 36,000, Sept. 30 = 64,000. Avoidable interest Cost = 30,000
So, amount to be capitalized in Martin's Building account = $600,000 + $90,000 + $180,000 + $36,000 + $64,000 + $30,000 = $1,000,000
A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus is _____and ________Thus, the visual appearance would be classified as a public good. Suppose the college administrators estimate that the beautification initiative will cost $1,540. To decide whether the initiative should be undertaken,
administrators conduct a survey of the college's 380 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $14.
The benefit of the beautification initiative, as suggested by the survey, is $ ________.Because the estimated benefit is________ than the cost, the college administrators _________ undertake the beautification initiative.
The calculation of the benefit of the beautification initiative relied on the ability of the administrators to capture the true willingness to pay of each student accurately.
Which of the following scenarios would cause the survey used by the college administrators to yield misleading data on willingness to pay?
a. Students believe that if the initiative does not happen, the funds for the initiative will not be spent elsewhere.
b. Students believe they will eventually be charged their willingness to pay.
Answer:
non-rival
non-excludable
$5320
greater
should
b
Explanation:
A public good is a good that is non rivalled and non excludable in consumption. An example is road networks.
If the beautification project is carried out, a student cannot be excluded from benefitting from the project. The benefit a student derives from the project isn't affected by the benefit other students derive from it
Benefit of the project = number of students x willingness to pay
$14 x 380 = $5320
Because the benefit is greater than the cost of the project, the project should be undertaken
Willingness to pay is the highest amount a consumer is willing to pay for a product
Willingness to pay might be misstated if students think they would be charged their willingness to pay. They would understate their willingness to pay.
Sandia Inc. wants to acquire a $360,000 computer-controlled printing press. If owned, the press would be depreciated on a straight-line basis over 10 years to a book salvage value of $0. The actual cash salvage value is expected to be $25,000 at the end of 10 years. If purchased, Sandia will incur annual maintenance expenses of $3,000. These expenses would not be incurred if the press is leased. If the press is purchased, Sandia could borrow the needed funds at an annual pre-tax interest rate of 10%. The lease rate would be $48,000 per year, payable at the beginning of each year. If Sandia has an after-tax cost of capital of 12% and a marginal tax rate of 40%, what is the net advantage to leasing? a. $37,737 b. $65,543 c. $60,713 d. $57,173
Answer:
a. $37,737
Explanation:
Present value of Cost of Buying = The Cost of Press + [(Post Tax annual maintenance expenses - Annual Depreciation Tax shield)*PVIFA (6%,10)] - [Post tax Salvage Value*PVIF (12%,10)]
PV of Cost of Buying = 360000 + (3000*(1-40%)-360000/10*40%)*7.360 - 25000*(1-40%) * 0.322
PV of Cost of Buying = $262,434
Present value of Cost of Leasing = Post tax Lease Payment at the Beginning *(1+PVIFA(6%,9))
PV of Cost of Leasing = $48000*(1-40%)*(1+6.802)
PV of Cost of Leasing = $224,697
Net advantage to leasing = PV of Cost of Buying - PV of Cost of Leasing
Net advantage to leasing = $262,434 - $224,697
Net advantage to leasing = $37,737
Your company is evaluating four locations in South America for its new manufacturing center. The ratings for each location are provided below using a rating system of 1 (least desirable) to 100 (most desirable) to evaluate each factor. Factor Weight Rating Scale (1-100) Brazil Chile Paraguay Bolivia Market Size 0.25 95 60 50 35 Future demand 0.25 90 70 50 35 Incentives 0.20 80 80 70 60 Per capita income 0.15 70 80 40 40 Political risk 0.05 70 90 70 70 Exchange rate 0.05 80 80 40 40 Labor climate 0.05 90 70 70 75 Using only the results of a multi-criteria analysis, which location should you recommend
Jeremy earned $100,000 is salary and $6,000 in interest income during the year. Jeremy's employer withheld $11,000 of federal income taxes from Jeremy's paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head of the household and has $23,000 in itemized deductions. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,000. What is Jeremy’s tax refund or tax due including the tax on the capital gain?
Answer:
Follows are the solution to this question:
Explanation:
Points Description Amount Computation
(1) Major Revenue $110,000 [tex]\$ 100,000 \ salary + \$ 6,000 \\ \\Interest \ income + \$4,000 \\\\ \text{ capital gain in long term}[/tex]
(2) AGI allowance 0
(3) Gross sales adjusted $110,000 (1) - (2)
(4) Deduction norm 18,350 Chief of Household
(5) susceptible to deductions 23,000
(6) Enhanced standard (23,000) (5) > (4)
deduction or individualized
deductions
(7) Taxable Revenue $87,000
(8) Response for $13,298 [tex][(83,000 - 52,850) \times[/tex]
incoming taxes [tex]22\%+ \$6,065] + \$4000\times 15\%[/tex]
(See the household head tax
plan)
(9) Allowance for children's taxes (2,000)
(10) Withdrawal of tax (11,000)
Taxes due $ 298 (8) + (9) + (10)
Tomkat Corp. has only a single asset. This asset generates operating cash flow of $300,000 per year, in perpetuity. Tomkat also has a single liability, which is a perpetual bond (the maturity date is infinitely far in the future) that has a face value of $1 million and that pays coupon interest at a rate of 6% once per year. The appropriate discount rate for the asset is 10%, while that for the bond is 5% per year.
Required:
What is the value of Tomkat’s equity?
Answer:
$1,800,000
Explanation:
Value of Tomcat's Asset = $300000 / 0.1
Value of Tomcat's Asset = $3,000,000
Interest amount = $1,000,000 * 6%
Interest amount = $60000
Value of Liability (bond) = $60000/0.05
Value of Liability (bond) = $1,200,000
Value of Tomcat's equity = $3000000 - $1200000
Value of Tomcat's equity = $1,800,000
Match each item with the appropriate description.
- General Ledger System
- ERP
- Managerial Accounting
A. Includes both financial and non-financial information for all areas of the business.
B. Uses accounting information for external reporting.
C. Is a subset of the non-financial integrated accounting system.
D. Includes the accounting part of the integrated information system.
E. Uses accounting information for internal reporting.
Answer:
Matching items with the appropriate descriptions:
A. Includes both financial and non-financial information for all areas of the business.
ERP
B. Uses accounting information for external reporting.
General Ledger System
C. Is a subset of the non-financial integrated accounting system.
Managerial Accounting
D. Includes the accounting part of the integrated information system.
General Ledger System
E. Uses accounting information for internal reporting.
Managerial Accounting
Explanation:
- General Ledger System. This system is where the financial accounting records of debit and credit are kept and summarized.
- ERP: "Enterprise Resource Planning” is the consolidated system for gathering and organizing business data, both financial and non-financial.
- Managerial Accounting: This is where internal accounting data are gathered and analyzed.
The distance between defects in an automated weaving process at Craft Mills, Inc. is exponentially distributed. On average there are 0.025 defects per foot. Use the random number 0.749 to simulate the distance between two defects.
Answer:
28.57 ft
Explanation:
On an average there are about : 0.025 defects per foot
using a random number of 0.749 to simulate the distance between two defects is = 28.57 ft
attached below is a detailed solution of the above problem
