Answer:
COGS and inventory balance under LIFO (last in, first out):
November 10 sale
COGS = 90 x $39 = $3,510inventory balance after sale = $1,170November 20 sale
COGS = 110 x $40 = $4,400inventory balance after sale = $2,370November 24 sale
COGS = 30 x $40 = $1,200COGS = 15 x $39 = $585total COGS = $1,785inventory balance after sale = $585When calculating costs under LIFO, we must use the cost of the last units purchased for determining cost of goods sold. This method is generally used when the price of the goods tends to increase during the period.
HELP HELP HELP MEEE
if joseph is paid 225$ for the week and he worked 20 hours during the week what is his fixed rate?
Answer:
11.25 dollars per hour
Explanation:
225/20
11.25
Brainliest appreciated!
Which investment has the least liquidity?
property
stocks
a savings account
a 401k
Answer:
D ON EDGE 2020
Explanation:
The investment that has the least liquidity in the options is property.
What does it mean when an asset is liquid?Liquidity measures the speed and the ease at which an asset can be converted to cash. The most liquid asset is money. On the other hand, before property can be liquidated, it would take a long time.
To learn more about investments, please check: https://brainly.com/question/8863629
#SPJ2
Suppose that lower production costs increases the supply of wheat, such that more wheat is supplied at each price level. After the increase in supply, the equilibrium quantity _____.
Answer:
Equilibrium quantity Increase
Explanation:
Equilibrium quantity is the level of supply that's meet the market demand of a product. At equilibrium quantity, there is no excess supply nor shortage in quantity supplied.
Should the cost of producing wheat decline, farmers will supply more wheat in the market. An increase in supply without a corresponding increase in demand results in reduced prices. Many suppliers will complete with few buyers. Due to a decline in prices, the equilibrium quantity increases because farmers will sell more quantities at the new low prices. The supply and demand curves will intersect a higher position in the graph, reflecting the new point where increased supply meets the demand at lower prices.
You can buy a property today for $4 million and sell it in 6 years for $5 million. You will not earn any rental income on the property. Answer the following questions. a.) If the interest rate is 5%, what is the present value of the sales price? _____________ (4 pts) b.) Is this a good investment for you? Explain your answer ____________________________ _______________________________________________________________________(4 pts) c.) If the interest rate is 5%, what is the present value of the sales price if you also earned $200,000 in rental income each year? _______________________________________________(4 pts)
Answer:
a. Present value = $3,731,076.98
It is not a good investment because the present value of the sales price is less than the purchase price of the property. This means that purchasing the property would be unprofitable.
c. Present value = $4,746,215.40
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
a. Cash flow each year from year 1 to 5 = 0
Cash flow in year 6 = $5,000,000
I = 5%
Present value = $3,731,076.98
It is not a good investment because the present value of the sales price is less than the purchase price of the property. This means that purchasing the property would be unprofitable.
c. Cash flow each year from year 1 to 5 = $200,000
cash flow in year 6 = $200,000 + $5,000,000 = $5,200,000
I = 5%
Present value = $4,746,215.40
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Ms. Shaver, a single taxpayer, has $213,000 taxable income, which includes a $19,580 qualified dividend from Benbow Inc. Use Tax rates for capital gains and qualified dividends. Required: Compute her income tax on this dividend assuming that on the basis of Ms. Shaver’s instruction, Benbow made a $19,580 direct deposit into her bank account. Compute her income tax on this dividend assuming that on the basis of Ms. Shaver’s instruction, Benbow reinvested the dividend in additional Benbow shares.
Answer:
Reinvested will be "$ 2,937". The further explanation is given below.
Explanation:
According to the IRS, on either the order of the corresponding lender, the cash dividend earned or reinvested seems to be taxable during the same year.
Income tax on dividend will be:
⇒ [tex]19,580\times 15 \ percent[/tex]
⇒ [tex]2,937[/tex] ($)
When the amount is reinvested, the income tax will be:
⇒ [tex]19,580\times 15 \ percent[/tex]
⇒ [tex]2,937[/tex] ($)
Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings. Type of Bookshelf Sales Price per Unit Variable Cost per Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Deluxe products as components of one overall enterprise product called "Combined," the unit contribution margin for the Combined product would be $2.31. Fixed costs for the upcoming year are estimated at $334,950. Recall that the totals of all the sales mix percents must be 100%. Determine the amounts to complete the following
Answer:
The requirements are missing, so I looked for similar questions:
Percent of Sales Mix = Break-Even Sales in Units = Break-Even Sales in Dollars =Type of Bookshelf Sales Price Variable Cost Contribution M.
Basic $5.00 $1.75 $3.25
Deluxe $9.00 $8.10 $0.90
combined contribution margin = $2.31
total fixed costs $334,950
break even point in units = $334,950 / $2.31 = 149,329 units
3.25b + 0.9d = 2.31
I will first try a 50/50 sales mix
(3.25 x 0.5) + (0.9 x 0.5) = 2.075 ⇒ b must be higher
(3.25 x 0.6) + (0.9 x 0.4) = 2.31 ✓
sales mix:
basic = 60% of sales
deluxe = 40% of sales
total = 100%
break-even sales in units =
basic (60% of sales) = 89,598 units
deluxe (40% of sales) = 59,731 units
total = 149,329 units
break-even sales in dollars =
basic 89,598 units x $5 = $447,990
deluxe 59,731 units x $9 = $537,579
total = $985,569
On July 1, 2018, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $140 million cash. At the date of acquisition of the stock, VB net assets had a total fair value of $480 million and a book value of $280 million. Of the $200 million difference, $44 million was attributable to the appreciated value of inventory that was sold during the last half of 2018, $128 million was attributable to buildings that had a remaining depreciable life of 10 years, and $28 million related to equipment that had a remaining depreciable life of 5 years. Between July 1, 2018, and December 31, 2018, VB earned net income of $60 million and declared and paid cash dividends of $52 million.
Required:
1. Prepare all appropriate journal entries related to the investment in 2016, assuming equity method.
2. Determine the amounts to be reported by Gupta
a. As an investment in Gupta's 2016 balance sheet.
b. As investment revenue or loss on Gupta's 2016 income statement
c. Among investing activities in Gupta's statement of cash flows.
Answer:
Please below and attached detailed solution.
Explanation:
1. Prepare all appropriate journal entries related to the investment in 2016, assuming equity method - Please see attached detailed solution
2. Determine the amounts to be reported by Gupta;
a. As an investment in Gupta's 2016 balance sheet = $126.4 million
b. As an investment revenue or loss on Gupta's 2016 income statement = $0.6 million
c. Among investing activities in Gupta's statement of cash flow = $140 million.
Please find attached solution to the questions and answers above.
A restaurant prepares 200.00 pizza slices and sells them at a rate of $12.00/slice. Expenses for the restaurant include raw material for pizza at $5.00 per slice, $103.00 for monthly rental and monthly insurance of $30.00. Lost sale are taken as $6.00 per unhappy customer. Leftover pizza can be sold for $2.00. The restaurant is open only for 25 days in a month. Today there was a party at nearby office so the demand for pizza went up to 223.00 slices. How much profit could the restaurant earn today?
Answer:
$1428
Explanation:
Profit = Total Revenue - total cost
total revenue = price x quantity sold
total cost = variable cost + fixed cost
total revenue = 223 x $12 = $2676
Variable cost = $5 x 223 = $1115
total fixed cost = $103.00 + $30.00 = $133.00.
Total cost = $1115 + $133 = $1248
profit = $2676 - $1248 = $1428
What are the main parts of a cover letter and their purposes?
Answer:
The introduction: Whenever possible, indicate how you came to apply to the company, such as...
responding to an advertised opening
having identified the company through research (do not use this if you didn't do the research as it may be obvious to the employer)
reading about the company or its executives in a publication
receiving a referral from John Jones at XYZ company
The body: It is important to highlight your qualifications and strengths as they relate to the requirements of the position. Amplify or augment information contained in your resume (rather than merely repeating it) and include a few strengths or personal qualities.
The closing: If the position was unadvertised and the resume is unsolicited, indicate that you will follow up in a few days. If you are responding to an advertised position, indicate you are looking forward to the opportunity to discuss how you can contribute to the success of the organization.
Explanation:
The main parts of a cover letter are the Introduction, Sales Pitch, and Conclusion which help people to achieve the objective for which it is written.
What is a cover letter?A one-page professional letter is submitted with your resume when you apply for a job is known as a cover letter. It allows you to reveal a personal side while proving why choosing you is a wise choice.
The cover letter should serve as an argumentative essay that explains to the employer why you are a strong candidate for the position. Include concrete situations from your prior experience that demonstrate your suitability for the job.
The main parts of a cover letter are the Introduction, Sales Pitch, and Conclusion which helps to introduce a person in front of the employer and help to make convince through their conversation about suitability for a particular role.
Learn more about the Cover letters, here:
https://brainly.com/question/10626764
#SPJ5
The following information is available for Trinkle Company for the month of June:1. The unadjusted balance per the bank statement on June 30 was $81,5002. Deposits in transit on June 30 were $3,1503. A debit memo was included with the bank statement for a service charge of $404. A $5,611 check written in June had not been paid by the bank5. The bank statement included a $950 credit memo for the collection of a note. The principal of the note was $900, and the interest collected amounted to $50RequiredDetermine the true cash balance as of June 30. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)
Answer:
$79,039
Explanation:
The computation of the true cash balance is shown below:
Particulars Amount
Unadjusted Balance
as Per Bank Statement on Jun 30 $81,500
Add: Deposit in Transit Jun $3,150
Les : Outstanding Check Jun30 -$5,611
True Cash Balance As on Jun 30 $79,039
We simply applied the above format so that the correct value could come
Question 2 of 10
What is one major disadvantage of corporations compared to other types of
business organizations?
A. Corporations have a difficult time raising money to get started
B. Corporations have a limited life span if their owners die or quit.
C. Shareholders may remove the original owners from a corporation
D. One owner assumes all the risk and liability in a corporation
SUOMI
Answer:
C. Shareholders may remove the original owners from a corporation
Explanation:
Unfortunately, the founders of a corporation can be removed from the business. The process of removing a shareholder is hectic but still possible. A shareholder's agreement binds the shareholders of a business or a corporation. The agreement is the equivalent of a contract among the shareholder.
A gross violation of the agreement by a shareholder may lead to their removal. The conditions and processes of removal are normally contained in the shareholder's agreement.
g Time period is important in accounting. Companies need to report revenue and expenses on their income statement based on what they earned and incurred during the accounting period. Assume the company had invested $100,000 in an interest-bearing investment on September 1st of this year. The investment earns 6% interest, but the interest doesn't get paid out until the end of the first six months. What, if any, interest revenue should the company record on their December 31st year ending income statement of this year
Answer: $2,000
Explanation:
As the question says, companies need to report revenue and expenses on their income statement based on what they earned and incurred during the accounting period. This is the Accrual principle in accounting.
The company gets a return of 6% after a year but this return has to be reflected monthly as it earned.
In a year the return is;
= 6% * 100,000
= $6,000
The investment was made on September 1st so from then to December 31st is 4 months.
The interest earned in this first year is therefore;
= 6,000 * 4/12 months
= $2,000
This is the interest revenue that should be recorded on the December 31st year ending income statement of the year.
John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $890,000. John has used past financial information to estimate that the net cash flows (cash inflows less cash outflows) generated by the restaurant would be as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Years Amount
1-6 $89,000
7 79,000
8 69,000
9 59,000
10 49,000
If purchased, the restaurant would be held for 10 years and then sold for an estimated $790,000.
Required:
Determine the present value, assuming that John desires an 11% rate of return on this investment. (Assume that all cash flows occur at the end of the year.) (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)
Answer:
$763,057
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1-6 = $89,000
Cash flow in year 7 = 79,000
Cash flow in year 8 = 69,000
Cash flow in year 9= 59,000
Cash flow in year 10 = 49,000 + $790,000 = 839,000
I = 11%
Present value = $763,057
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
If the rate of growth of output is 8% and the rate of growth of population is 2%, what is the rate of growth of output per capita
Answer and Explanation:
Population and output are related in determining output per capita(per head). Total output divided by total population is equal to output per capita. Output per capita growth rate is the difference between population growth rate and output growth rate.
If output growth rate= 8%
and population growth rate = 2%
Then per capita output growth rate= output growth rate - population growth rate
Therefore per capita output growth rate = 8% - 2% =6%
Per capita output growth rate = 8%
arret Company has provided the following selected information for the year ended December 31, 2019: Cash collected from customers was $783,000. Cash received from stockholders in exchange for common stock totaled $91,000. Cash paid to suppliers was $361,000. Cash paid to employees was $204,000. Cash to stockholders for dividends was $33,000. Cash received from sale of a building was $250,000. Cash paid for store rent was $39,000. Cash received for interest and dividends was $7,000. Cash paid for income taxes was $55,000. Based on the selected information provided, how much was Garret's cash flow from operating activities?
Answer:
Cash flow from operating activities = $131,000
Explanation:
Cash flow from operating activities = Collected from customers - Cash paid to suppliers - Cash paid to employees - Cash paid for store rent + Cash received for interest and dividends - Cash paid for income taxes
Cash flow from operating activities = $783,000 - $361,000 - $204,000 - $39,000 + $7,000 - $55,000
Cash flow from operating activities = $131,000
On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $39,000. The cab has an expected salvage value of $4,000. The company estimates that the cab will be driven 200,000 miles over its life. It uses the units-of-production method to determine depreciation expense. The cab was driven 48,000 miles the first year and 51,000 the second year. What would be the depreciation expense reported on the Year 2 income statement and the book value of the taxi, respectively, at the end of Year 2
Answer:
depreciation expense year 2 = $8,925
book value end of year 2 = $21,675
Explanation:
depreciable value = $39,000 - $4,000 = $35,000
total miles driven = 200,000
depreciation expense per mile driven = $35,000 / 200,000 miles = $0.175 per mile driven
depreciation expense year 1 = 48,000 x $0.175 = $8,400
book value end of year 1 = $39,000 - $8,400 = $30,600
depreciation expense year 2 = 51,000 x $0.175 = $8,925
book value end of year 2 = $30,600 - $8,925 = $21,675
differences between a small office and a big office
Answer:
one is bigger and the other one is smaller
Two products, QI and VH, emerge from a joint process. Product QI has been allocated $28,300 of the total joint costs of $49,000. A total of 2,300 units of product QI are produced from the joint process. Product QI can be sold at the split-off point for $12 per unit, or it can be processed further for an additional total cost of $10,300 and then sold for $14 per unit. If product QI is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?
Answer:
Gain from selling at the split-off point = $12 * 2,300
Gain from selling at the split-off point = $27,600
Gain from Processing further = $14 * 2,300 - Processing cost ($10,300)
Gain from Processing further = $ 32,200 - $10,300
Gain from Processing further = $21,900
Overall profit
= $27,600 - $21,900
= $5,700 (Decrease in overall profit )
Hence, if product QI is processed further and sold, then overall profit will be decreased by $5,700
Andrew plans to retire in 40 years. He plans to invest part of his retirement funds in stocks, so he seeks out information on past returns. He learns that over the entire 20th century, the real (that is, adjusted for inflation) annual returns on U.S. common stocks had mean 8.7% and standard deviation 20.2%. The distribution of annual returns on common stocks is roughly symmetric, so the mean return over even a moderate number of years is close to Normal. What is the probability (assuming that the past pattern of variation continues) that the mean annual return on common stocks over the next 40 years will exceed 10%
Answer:
26%
Explanation:
Given that Mean, μ = 8.7% = 0.087
Standard Deviation, σ = 20.2% = 0.202
Normal distribution, n = 40
Notice that the distribution annual returns of stocks are a bell-shaped distribution.
hence, using the formula
Zscore = (x - μ ) / σ
= where we have P(return greater than 10%)
= P(x > 0.10)
= P(x > 0.10) = P [z > (0.10 - 0.087)/0.202]
= P (z > 0.0643)
= 1 - P (z > 0.0643)
= Using the value from standard normal z table,
= P (x > 610) = 1 - 0.740 =0.26 = 26%
Hence, the correct answer is 26%.
Tariff effects: An overview
Consider two hypothetical countries, Alagir and Ertil. Both countries produce iGadgets, and the price of iGadgets is lower in Alagir than in Ertil. If Alagir and Ertil open to trade, producers in would be more likely to lobby their government for an import tariff on iGadgets in order to protect themselves from foreign competition.
Which of the following statements about the effects of the tariff compared to free trade are correct?
A. In Alagir, workers in iGadget importing companies lose their jobs.
B. In Ertil, some workers at retail and shipping companies that import iGadgets lose their jobs.
C. In Ertil, consumers pay more for the domestic iGadgets.
D. In Ertil, workers in iGadget importing companies see more jobs available to them.
E. In Ertil, producers of iGadgets are willing to expand output.
Answer:
The answer is "Option E, Option B, and Option C".
Explanation:
There are two Alagir and Ertil nations, and both iGadgets are created by the nations. Its price throughout the world was lower than in the world, and the manufacturers in Ertil will be more likely to ask their government for just a tariff on iGadgets to protect them against the international competition so because the cost in the nation is higher and consumers are starting to import goods from the country.
Angerstein Inc. produces calendars in a two-process, two-department operation. In the Printing Department, calendars are printed and cut. In the Assembly Department, the material received from Printing is assembled into individual calendars and bound. Each department maintains its own Work in Process Inventory, and costs are assigned using FIFO process costing. In Assembly, conversion costs are incurred evenly throughout the process; direct material is added at the end of the process. For September, the following production and cost information is available for the Assembly Department:
• Beginning WIP Inventory: 5,000 calendars (30 percent complete as to conversion); transferred in cost, $7,550; conversion cost, $1,093
• Transferred in during September: 80,000 calendars
• Current period costs: transferred in, $80,000; direct material, $10,270, conversion, $13,991
• Ending WIP Inventory: 6,000 calendars (80 percent complete as to conversion) For the Assembly Department, compute the following:
a. Equivalent units of production for each cost component EU for transferred in 85,000 x EU for direct materials 79,000 EU for conversion 83,800 x
b. Cost per EUP for each cost component Note: Round your answers to two decimal places. Transferred in cost per EUP $ 87.550 X Material cost per EUP Conversion cost per EUP $ 0 x
c. Cost transferred to Finished Goods Inventory Note: Round your final answer to the nearest whole dollar. $ 105,860
d. Cost of ending WIP Inventory Note: Round your final answer to the nearest whole dollar. $ $ 7,044
Answer:
a) EU for transferred in costs = 80,000
EU for materials costs = 79,000
EU for conversion costs = 82,300
b) cost per EU for transferred in costs = $1
cost per EU for materials costs = $0.13
cost per EU for conversion costs = $0.17
c) costs transferred to finished goods inventory = $106,088
d) cost of ending WIP = $6,816
Explanation:
units completed = 5,000 + 80,000 - 6,000 = 79,000
beginning WIP 5,000 units:
transferred in costs $7,550
30% completed for conversion costs ($1,093)
0% completed for materials
current period:
transferred in costs $80,000, cost per EUP = $80,000 / 80,000 = $1.00
materials $10,270, cost per EUP = $10,270 / 79,000 = $0.13
conversion $13,991, cost per EUP = $13,991 / [(5,000 x 70%) + 74,000 + (6,000 x 80%)] = $13,991 / 82,300 = $0.17
costs transferred to finished goods inventory = (74,000 x $1) + (79,000 x $0.13) + (77,500 x $0.17) + $7,550 + $1,093 = $106,088
ending WIP = (4,800 x $0.17) + $6,000 = $6,816
The trial balance of Rollins Inc. included the following accounts as of December 31, 2021:_______.
Debits Credits
Sales revenue 5,900,000
Interest revenue 40,000
Loss on sale of investments 10,000
Loss on debt investments 160,000
Gain on projected benefit obligation 260,000
Cost of goods sold 4,400,000
Selling expense 400,000
Restructuring costs 190,000
Interest expense 20,000
General and administrative expense 300,000
The loss on debt investments represents a decrease in the fair value of debt securities and is classified as part of other comprehensive income. Rollins had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 25%.
Required:
Prepare a 2021 separate statement of comprehensive income for Rollins Inc. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Rollins Inc.
ROLLINS INC.
Statement of Comprehensive Income
For the year ended December 31, 2021:
Sales revenue $5,900,000
Cost of goods sold -4,400,000
Gross profit $1,500,000
Selling expense 400,000
General and administrative expense 300,000 -700,000
Operating Income $800,000
Interest revenue 40,000
Interest expense -20,000 20,000
Income before taxes $820,000
Income tax (25%) -205,000
Income after tax $615,000
Other comprehensive income:
Gain on projected benefit obligation 260,000
Restructuring costs -190,000
Loss on sale of investments -10,000
Loss on debt investments -160,000 -100,000
Other comprehensive income $515,000
Explanation:
Data and Calculations:
Trial Balance as of December 31, 2021:
Debits Credits
Sales revenue 5,900,000
Cost of goods sold 4,400,000
Interest revenue 40,000
Interest expense 20,000
Loss on sale of investments 10,000
Loss on debt investments 160,000
Gain on projected benefit obligation 260,000
Selling expense 400,000
Restructuring costs 190,000
General and administrative expense 300,000
How does the format of a memo differ from that of an e-mail? please answer asap
(high school not collage)
Memos use an indirect opening instead of a direct opening.
Memos omit a closing signature.
Memos include a subject
Answer: Memos omit a closing signature.
(I took the test and this was the answer)
Louis has created an innovation that will greatly improve the health of millions of people. It has been tested and approved and is ready to sell. Because he is the only one producing this new good, he doesn’t have to settle for the price he would have to accept in perfect competition. Once word gets out about his new device, the demand for it greatly increases. So, he decides to charge a higher price for his good because there are no existing competitors to undercut his price. What benefit does Louis have as the only producer in the market?
Answer:
Louis can charge a high price because there are no other companies that consumers can turn to.
Explanation:
With no opposition, Louis can do anything he wants because he is the only one who has what he is selling.
Louis can charge a premium fee because customers have no other options for businesses is benefit does Louis have as the only producer in the market.
What is business profit?A product's selling price less all manufacturing and selling costs, including taxes, or the difference between a company's revenue and costs. But generally speaking, a small business's healthy profit margin falls between 7 and 10 percent. But keep in mind that other industries, like retail or the food industry, can have reduced margins. They frequently have larger overhead expenditures, which explains this.
Profit is what remains after all costs have been deducted from a company's revenue, also known as income. In small firms, the owner or owners typically receive the entire profit. Publicly traded companies distribute dividends to stockholders from their profits.
Thus, Louis can charge a premium fee because customers have no other options for businesses is benefit
For more details about business profit, click here:
https://brainly.com/question/10165880
#SPJ5
On January 4, Year 1, Barber Company purchased 12,500 shares of Convell Company for $150,000 plus a broker's fee of $4,000. Convell Company has a total of 62,500 shares of common stock outstanding and it is presumed the Barber Company will have a significant influence over Convell. During each of the next two years, Convell declared and paid cash dividends of $0.75 per share, and its net income was $117,000 and $112,000 for Year 1 and Year 2, respectively. The January 12, Year 3, entry to record Barber's sale of 7,500 shares of Convell Company stock, which represents 60% of Barber's total investment, for $101,250 cash should be:
Answer:
Debit Cash $101,250; debit loss on sale of Investment $7,380;credit Long -term Investments $108,630
Explanation:
The journal entry is shown below:
Before that the following calculations could be done
Ownership Percentage 20%
($12,500 ÷ $62,500)
Investment cost $154,000
$150,000 + $4,000
Add: Share of Year 1 net income $23,400
$117,000 × 20%
Add: Share of Year 2 net income $22,400
$112,000 × 20%
Less: Dividends for Year 1 -$9,375
12,500 × 0.75
Less: Dividends for Year 2 -$9,375
12,500 × 0.75
Carrying value of Investment $181,050
The Journal entry is shown below:-
Cash Dr, 101,250
Loss on sale of Investment Dr, $7,380
To Long -Term Investments $108,630 (181050 × 60%)
Three Square Market, a Wisconsin-based tech firm, made headlines after they offered implantable microchips to its employees. The controversy highlights a generational divide, with younger generations being less concerned about privacy and much more open to sharing their lives. The move to place technology inside of employees raises concerns about data privacy issues, the lack of legislation around the technology, and the long-term health implications for our bodies.
Answer:
True.
Explanation:
Although the implantation of microchips in humans is a great technological advance that is gradually being added to our society, this technology raises many concerns that are the main causes of rejection of this technology.
Many people reject the placement of bio microchips for religious reasons, but in addition, there is no type of legislation that regulates these processes which can result in abuse, invasion of privacy and other illegal issues. Finally, many people complain about the lack of information about the physical, chemical and biological consequences that a body with microchips can have.
Tamarisk, Inc. began operations on April 1 by issuing 51,000 shares of $4 par value common stock for cash at $20 per share. On April 19, it issued 2,000 shares of common stock to attorneys in settlement of their bill of $26,300 for organization costs. In addition, Tamarisk issued 900 shares of $2 par value preferred stock for $6 cash per share. Journalize the issuance of the common and preferred shares, assuming the shares are not publicly traded.
Answer:
Tamarisk, Inc.
Journal Entries:
April 1:
Debit Cash Account $1,020,000
Credit Common Stock $204,000
Credit Paid-in Capital In Excess $816,000
To record the issue of 51,000 $4 par value common stock shares at $20 per share.
April 19:
Debit Organization Expense $26,300
Credit Common Stock $8,000
Credit Paid-in Capital In Excess - Common Stock $18,300
To record the issue of 2,000 shares in settlement of attorneys' organization costs.
April 19:
Debit Cash Account $5,400
Credit Preferred Stock $1,800
Credit Paid-in Capital In Excess -Preferred Stock $3,600
To record the issue of 900 shares of $2 par value preferred stock for $6 cash.
Explanation:
Tamarisk, Inc. uses the general journal entries to record business transactions as they occur on a daily basis. Journal entries are the first set of records in the accounting books. They identify the accounts to be debited and the accounts to be credited in the general ledger.
Kingbird Windows manufactures and sells custom storm windows for three-season porches. Kingbird also provides installation service for the windows The installation process does not involve changes in the windows, so this service can be performed by other vendors. Kingbird enters into the following contract on July 1, 2017, with a local homeowner.
The customer purchases windows for a price of $2,470 and chooses Kingbird to do the installation. Kingbird charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $580. The customer pays Kingbird $1,940 (which equals the standalone selling price of the windows, which have a cost of $1,050) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Kingbird completes installation on October 15, 2017, and the customer pays the balance due.
Prepare the journal entries for Kingbird in 2017.
Answer:
Kingbird Windows
July 1, 2017:
Debit Cash Account $1,940
Credit Unearned Sales Revenue $1,940
To record the receipt of cash from customer.
Sept. 1, 2017:
Debit Unearned Sales Revenue $1,940
Credit Sales Revenue $1,940
To record the sale of windows.
Debit Inventory $1,050
Credit Cost of Goods Sold $1,050
To record the cost of goods sold.
Oct. 15, 2017:
Debit Cash Account $530
Credit Service Revenue $530
To record the service revenue earned for installation of windows.
Explanation:
Since Kingbird's selling price equals $1,940, which the customer pays in advance, this amount is taken as the sales revenue. Though the stand-alone price of installation is estimated to be $580, only $530 is recorded as revenue for installation because the $580 remains an estimate of a stand-alone item.
After graduating, you might decide to start a small business. As discussed in this chapter, owners of any business need to know how to calculate the cost of their products. In fact, many small businesses fail because they don't accurately calculate their product costs, so they don't know if they are making a profit or losing money—until it's too late.Suppose that you decide to start a landscape business. You use an old pickup truck that you've fully paid for. You store the truck and other equipment in your parents' barn, and you store trees and shrubs on their land. Your parents will not charge you for the use of these facilities for the first two years, but beginning in the third year they will charge a reasonable rent. Your mother helps you by answering phone calls and providing customers with information. She doesn't charge you for this service, but she plans on doing it for only your first two years in business.In pricing your services, should you include charges for the truck, the barn, the land, and your mother's services when calculating your product cost?InstructionsWrite a response indicating your position regarding this situation. Provide support for your view.
Answer:
When the value of the service ends, it will be necessary to include the charges for the truck, the granary and the land. It is not necessary to include your mother's service charges, as she is not charging for the service.
Explanation:
Setting up your own business can be quite a big challenge and you need a lot of control and planning so you don't have to lose money. One of the biggest challenges of becoming an entrepreneur is to price the service performed. As was said in the question above, many people do not know how to place a value on the service produced, mainly because they are unable to identify the expense for service production.
In summary, the expense to produce the service must take into account all charges related to any element necessary to perform the service. Thus, we can consider that in the case shown in the question above, it will be necessary for you to include expenses with the truck (gasoline, repairs, exchange of parts, etc.), with the rent of the granary, with the rent of the land and with the gratification of any employee. Since your mother is not charging for her services, this charge should not be included, however, your mother will only be in this service for two years. If the person replacing your mother charges for the service, this should be added to the cost.
The following transactions occurred during March, the first month of operations for Quality Galleries, Inc. * Capital Stock was issued in exchange for $360,000 cash. * Purchased $180,000 of equipment by making a $60,000 cash down payment and signing a note payable for the balance. * Made a $35,000 cash payment on the note payable from the purchase of equipment. * Sold a piece of equipment for cash of $18,000. The equipment was sold at cost, so there is no gain or loss on the sale. What are total assets of Quality Galleries at the end of March
Answer:
$445,000
Explanation:
Calculation for the total assets of Quality Galleries at the end of March
First step is to find the balance in the Cash account at the end of March
Cash account balance =$360,000 - $60,000 - $35,000 + $18,000
Cash account balance = $283,000
Now that we have know the Cash account balance the Second step is to calculate for total assets at the end of March
Total assets = $283,000+ $180,000 - $18,000
Total assets = $445,000
Therefore the total assets of Quality Galleries at the end of March will be $445,000
