Answer:
b. $150,000
Explanation:
The computation of the working capital is shown below:
= Total current assets - total current liabilities
= $370,000 - $220,000
= $150,000
We simply applied the above formula
And, the same is to be considered
Hence, the working capital is $150,000
Therefore the correct option is b. $150,000
All the other options are wrong.
At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $15.00 per unit:
Transactions Units Amount
Inventory, January 1 500 $2,500
Purchase, January 12 620 4,340
Purchase, January 26 100 900
Sale (380)
Sale (210)
Between FIFO or LIFO, which method would produce the more favorable cash flow?
Answer:
FIFO method decreases COGS and increases net income, but both methods will result in a similar cash flow ($8,850).
Explanation:
cost of goods sold using FIFO:
380 x $5 = $1,900
(120 x $5) + (90 x $7) = $1,230
total = $3,130
profit = (590 x $15) - $3,130 = $5,720
cost of goods sold using LIFO:
(100 x $9) + (280 x $7) = $2,860
210 x $7 = $1,470
total = $4,330
profit = (590 x $15) - $4,330 = $4,520
assuming that the company does not incur any operating costs:
Cash flow from operating activities (using FIFO):
Net income $5,270
adjustments to net income:
Decrease in inventory $3,130
Net cash flow $8,850
Cash flow from operating activities (using LIFO):
Net income $4,520
adjustments to net income:
Decrease in inventory $4,330
Net cash flow $8,850
Creswell Corporation's fixed monthly expenses are $30,000 and its contribution margin ratio is 63%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $92,000?
a. $27,960.b. $62,000.c. $57,960.d. $4,040.
Answer:
Net income= $27,960
Explanation:
Giving the following information:
Fixed costs= $30,000
contribution margin ratio= 0.63
Sales= $92,000
First, we need to calculate the total contribution margin:
Total contribution margin= 92,000*0.63= 57,960
Now, the net income:
Net income= 57,960 - 30,000
Net income= $27,960
Kepler Company Comparative Income Statements This Year Last Year Sales $ 950,000 $ 900,000 Less: Cost of goods sold 500,000 490,000 Gross margin $ 450,000 $ 410,000 Less: Selling and administrative expenses 275,000 260,000 Operating income $ 175,000 $ 150,000 Less: Interest expense 12,000 18,000 Income before taxes $ 163,000 $ 132,000 Less: Income taxes 65,200 52,800 Net income $ 97,800 $ 79,200 Less: Dividends (common) 27,800 19,200 Net income, retained $ 70,000 $ 60,000 Also, assume that for last year and for the current year, the market price per share of common stock is $2.98. In addition, for last year, assets and equity were the same at the beginning and end of the year. Required: Note: Round all answers to two decimal places. 1. Compute the following for each year: This Year Last Year a. Return on assets % % b. Return on stockholders' equity % % c. Earnings per share $ $ d. Price-earnings ratio e. Dividend yield % % f. Dividend payout ratio
Kepler Company
Comparative Balance Sheets
This Year Last Year
Assets
Current assets:
Cash $ 50,000 $100,000
Accounts receivable, net 300,000 150,000
Inventory 600,000 400,000
Prepaid expenses 25,000 30,000
Total current assets $ 975,000 $680,000
Property and equipment, net 125,000 150,000
Total assets $1,100,000 $830,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 400,000 $290,000
Short-term notes payable 200,000 60,000
Total current liabilities $ 600,000 $350,000
Long-term bonds payable, 12% 100,000 150,000
Total liabilities $ 700,000 $500,000
Stockholders' equity:
Common stock
(100,000 shares) 200,000 200,000
Retained earnings 200,000 130,000
Total liabilities and
stockholders' equity $1,100,000 $830,000
Answer:
Kepler Company
a. Return on assets = Net Income/Total Assets
= $ 97,800/$1,100,000 $ 79,200/$830,000
= 8.89% = 9.54%
b. Return on stockholders' equity = Net Income/Stockholders' equity
= $ 97,800/$400,000 $ 79,200/$330,000
= 24.45% = 24%
c. Earnings per share = Net Income/Outstanding common shares
= $ 97,800/100,000 $ 79,200/100,000
= $0.98 = $0.79
d. Price-earnings ratio = Market price/Earnings per share
= $2.98/$0.98 = $2.98/$0.79
= 3.04 times = 3.77 times
e. Dividend yield = Dividend per share/price per share
= $0.28/$2.98 = $0.19/$2.98
= 9.40% = 6.38%
f. Dividend payout ratio = Total dividends/Net Income
= $27,800/$97,800 = $19,200/$79,200
= 28.43% = 24.24%
Explanation:
Kepler Company
Comparative Income Statements
This Year Last Year
Sales $ 950,000 $ 900,000
Less: Cost of goods sold 500,000 490,000
Gross margin $ 450,000 $ 410,000
Less: Selling and
administrative expenses 275,000 260,000
Operating income $ 175,000 $ 150,000
Less: Interest expense 12,000 18,000
Income before taxes $ 163,000 $ 132,000
Less: Income taxes 65,200 52,800
Net income $ 97,800 $ 79,200
Less: Dividends (common) 27,800 19,200
Net income, retained $ 70,000 $ 60,000
Would you rather own your own business or become a franchise
Answer:
own a business
Explanation:
I'm able to create my own brand and free to do what I want
Answer:
{: Own My Own Business :}
Explanation:
I would rather own my own business so that I could get lots of money yet give other people money ^w^ It would also be a restaurant. Most likely so I could eat da food as in.. 'taste' da food. :}
Direct Materials Purchases Budget Pasadena Candle Inc. budgeted production of 775,000 candles for the January. Wax is required to produce a candle. Assume 11 ounces of wax is required for each candle. The estimated January 1 wax inventory is 17,900 pounds. The desired January 31 wax inventory is 14,300 pounds. If candle wax costs $1.80 per pound, determine the direct materials purchases budget for January. (One pound = 16 ounces.) Round all computed answers to the nearest whole number. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Pasadena Candle Inc. Direct Materials Purchases Budget For the Month Ending January 31 Pounds of wax required for production: Total units available Total pounds to be purchased Unit price $ Total direct materials to be purchased in January $
Answer:
952,583
Explanation:
Note: The desired December 31 wax inventory is 14,300 pounds. If candle wax costs $1.80 per pound, determine the direct materials purchases budget for January is the correct words
Pasadena Candle Inc.
Direct Materials Purchases Budget
For the Year Ending December 31
Pounds of wax required for production:
Candles (775,000*11/16) 532,813
Add: Desired ending inventory, 14,300
December 31
Total units available 547113
Less :Estimated beginning inventory, 17,900
January 1
Total pounds to be purchased 529,213
Total direct materials to be purchased = Total pounds to be purchased * Unit price
Total direct materials to be purchased = 529,213 * $1.80
Total direct materials to be purchased = 952,583
Sheet Company reported the following net income and dividends for the years indicated: Year Net Income Dividends 20X5 $ 35,000 $ 12,000 20X6 45,000 20,000 20X7 30,000 14,000 Pillow Corporation acquired 75 percent of Sheets common stock on January 1, 20X5. On that date, the fair value of Sheet net assets was equal to the book value. Pillow uses the equity method in accounting for its ownership in Sheet and reported a balance of $259,800 in its investment account on December 31, 20X7. Required: a. What amount did Pillow pay when i
Answer:
A. $211,800
B. $282,400
C. $70,600
D. $ 86,600
Explanation:
A. Calculation for the amount that True pay when it purchased Exacto’s shares
Balance in investment account, December 31, 20x7$259,800
Cumulative earnings since acquisition$110,000
Less Cumulative dividends since acquisition(46,000)
Total$64,000
($110,000-46,000)
×Proportion of stock held by True Corporation 0.75
=Total amount debited to Investment account(48,000)
(64,000*0.75)
Purchase amount on January 1, 20X5$211,800
($259,800-$48,000)
B. Calculation for the fair value of Exacto’s net assets on January 1, 20X5
True Corporation’s Purchase amount$211,800
÷True Corp.’s percentage 0.75
=Fair Value of Exacto Company’s Net Assets$282,400
($211,800÷0.75)
C. Calculation for What amount was assigned to the NCI shareholders on January 1, 20X5
Fair Value of Exacto Company’s Net Asset$282,400
×Exacto Company’s percentagex0.25
=NCI’s portion$70,600
($282,400×0.25)
D. Calculation forWhat amount will be assigned to the NCI shareholders
True Corp’s investment balance$259,800
True Corp’s percentage÷0.75
=Fair Value of Exacto’s Net Assets 20X7 $346,400
×Exacto Company’s percentage 0.25
=NCI’s Portion, December 31, 20X7$ 86,600
($346,400×0.25)
Old Time Savings Bank pays 3% interest on its savings accounts. If you deposit $3,000 in the bank and leave it there: (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. How much interest will you earn in the first year?
Answer:
Interest= $90
Explanation:
Giving the following information:
Initial investment= $3,000
i= 3%
Number of periods= 1
First, we need to calculate the future value, using the following formula:
FV= PV*(1+i)^n
FV= 3,000*1.03= $3,090
Now, the interest earned:
Interest= 3,090 - 3,000
Interest= $90
If the liabilities of a company increased $110,000 during a period of time and equity in the company decreased $37,000 during the same period, what was the effect on the assets?
Answer:
Increase of $73,000
Explanation:
As we know that
The accounting equation is
Assets = Liabilities + Owner's Equity
So it can be said that
Change in Assets = Change in Liabilities + Change in Owner's Equity
Change in Assets = Increase of $110,000 + Decrease of $37,000
Change in Assets = Increase of $73,000
hence, the impact of the asset is $73,000 and the same is to be considered
"Aldrich and Co. sold goods to Donovan on credit.The amount owed grew steadily, and finally Aldrichrefused to sell any more to Donovan unless Donovansigned a promissory note for the amount due.Donovan did not want to but signed the notebecause he had no money and needed more goods.When Aldrich brought an action to enforce the note,Donovan claimed that the note was not bindingbecause it had been obtained by economic duress.Was he correct? [Aldrich & Co. v. Donovan, 778 P.2d397 (Mont.)"
Answer and Explanation:
Economic duress happens when one party X in a contract makes demands from the other party Y which party Y has to fulfill or party X terminates the contract.
No there was no economic duress here since Aldrich had a right to demand that Donovan sign a promissory note in order to protect his claim in case of default from Donovan. Therefore Donovan signed not because he was under duress but because he needed financial assistance.
If you are interested in working for a specific company, what type of job site should you look at for opening?
a. Geographic specific site
b. Industry specific site
C. Company site
d. General job site
Please select the best answer from the choices provided
А
B
С
D
Answer:
B. industry specific site
An industry specific site is the type of job site should you look at for opening. Hence, option B is correct.
As the term implies, "industry specific software" refers to any digital solution made specifically for a certain industry or specialized market. Despite the fact that every business is unique, not all need an expensive custom software solution.
Understanding market trends and best practices also means knowing how to put them into practice as efficiently as possible. A startup founder or a small business owner can greatly benefit from industry-specific solutions and insights in gaining a competitive edge.
Industries are frequently divided into categories based on the goods and services they provide. For instance, the pizza sector encompasses all businesses that produce and promote pizza.
Thus, option B is correct.
For more details about industry specific, click here:
https://brainly.com/question/13320210
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Bates Company plans to add a new item to its line of consumer product offerings. Two possible products are under consideration. Each unit of Product A costs $10 to produce and has a contribution margin of $5, while each unit of Product B costs $18 and has a contribution margin of $6. What is the differential revenue for this decision
Answer:
the Differential revenue is $9
Explanation:
The computation of the differential revenue is shown below:
Differential revenue is
= (Product B) - (Product A)
= (Cost + contribution margin) - (Cost + contribution margin)
= ($18 + $6) - ($10 + $5)
= $24 - $15
= $9
hence, the Differential revenue is $9
Therefore the same is to be considered
We simply applied the above formula
On June 1, Royal Corp. began operating a service company with an initial cash investment by shareholders of $3,206,000. The company provided $8,200,000 of services in June and received full payment in July. Royal also incurred expenses of $2,645,000 in June that were paid in August. During June, Royal paid its shareholders cash dividends of $490,000. What was the company's income before income taxes for the two months ended July 31 under the following methods of accounting
Answer:
Cash Basis= $8,200,000
Accrual Basis= $5,555,000
Explanation:
Calculation for the company's income before income taxes for the two months ended July 31
Based on the information given we were told that the company provided the amount of $8,200,000 of services in the month of June and received full payment of the amount in the month of July which means that the CASH BASIS will be $8,200,000
Cash Basis= $8,200,000
Calculation for Accrual Basis
Using this formula
Accrual Basis= Cash received - Incurred expenses
Accrual Basis= $8,200,000-$2,645,000
Accrual Basis= $5,555,000
Therefore the company's income before income taxes for the two months ended July 31 under the Cash Basis and Accrual Basis methods of accounting will be :
Cash Basis= $8,200,000
Accrual Basis= $5,555,000
had $35 million in sales last year. Its cost of goods sold was $25 million and its average inventory balance was $3 million. What was its average days of inventory
Answer: 43.8 days
Explanation:
Average days of school inventory can be calculated as:
= Average inventory balance/(Cost of goods sold/365)
= $3million/($25 million/365)
= $3 million/$68493.15
= 43.8 days
Felicia works for a news organization as a reporter. For the most part her work is solitary, and she only has brief communications via email or telephone with her editor (her boss) when she submits her stories. While Felicia is a good news reporter, the economy has taken a downfall and the organization likely will have to lay off some employees. Felicia is most likely to perceive this situation as:
Answer:
The correct answer is: Personal threat
Explanation:
Analyzing the above scenario, Felicia is considered more likely to perceive this situation as a personal threat.
This is due to her job function, which is a good news reporter, and with the economy declining and the organization will probably have to fire some employees, she feels threatened personally, as she is more likely to realize that the economic situation negative will directly influence the good news that she sends to the news agency, so she feels that this situation is threatening to the performance of her work and the agency may fire her because there is no good news for publication.
Suppose that real GDP grew more in Country A than in Country B last year.
a. Country A must have a higher standard of living than country B.
b. Country A's worker productivity must have grown faster than country B's.
c. Both of the above are correct.
d. None of the above are correct.
Answer:
D
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
The standard of living is calculated as real GDP / population. Even though the real GDP of country A grew faster than country B, country A's population might be higher than country B's making its standard of living lower.
To make a conclusion that the growth of country A's worker productivity grew faster, it must be assumed that population grew at the same rate in both countries
Marr Co. had the following sales and accounts receivable balances, prior to any adjustments at year end: Credit sales $10,000,000 Accounts receivable 3,000,000 Allowance for uncollectible accounts (debit balance) 50,000 Marr uses 3% of accounts receivable to determine its allowance for uncollectible accounts at year end. By what amount should Marr adjust its allowance for uncollectible accounts at year end
Answer:
$140,000
Explanation:
The computation is shown below:
Ending allowance for uncollectible accounts is
= Accounts receivable × Given percentage
= $3,000,000 × 3%
= $90,000
Now the
Adjusted balance is
= Ending allowance for uncollectible accounts + debit balance of Allowance for uncollectible accounts
= $90,000 + $50,000
= $140,000
Lambda Computer Products competed for and won a contract to produce two prototype units of a new type of computer that is based on laser optics rather than on electronic binary bits. The first unit produced by Lambda took 5,000 hours to produce and required $250,000 worth of material, equipment usage, and supplies. The second unit took 4,250 hours and used $237,500 worth of materials, equipment usage, and supplies. Labor is $20 per hour. Use Exhibit 6.5. a. Lambda was asked to present a bid for 10 additional units as soon as the second unit was completed. Production would start immediately. What would this bid be
Answer:
$2,731,672.50
Explanation:
first unit produced by lambda took 5,000 hours to produce and required $250,000 worth of material, equipment usage, and supplies
the second unit took 4,250 hours and used $238,500 worth of materials, equipment usage, and supplies
learning rate = time needed to produce second unit / time needed to produce first unit = 4,250 hours / 5,000 hours = 85%
materials and equipment usage rate = $237,500 / $250,000 = 95%
using the attached table of cumulative values, we can determine the cumulative improvement factors needed to solve this question:
Lambda's accumulated cost for producing 10 more computers
work hours = 4,250 x 7.116 (85% and 10 units) x $20 per hour = $604,860materials and equipment = $238,500 x 8.955 (95% and 10 units) = $2,126,812.50total = $604,860 + $2,126,812.50 = $2,731,672.50Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $107,000 in sales during the second quarter of this year. If it began the quarter with $18,700 of inventory at cost and purchased $72,700 of inventory during the quarter, its estimated ending inventory by the gross profit method is:
Answer:
$16,500
Explanation:
The computation of the estimated ending inventory is given below:
As We know that
Cost of goods sold = Beginning inventory + purchase made - ending inventory
And, the
Sales - gross profit = Cost of goods sold
So,
$107,000 - $107,000 × 30% = Cost of goods sold
Therefore, the cost of goods sold is
= $107,000 - $32,100
= $74,900
And, finally the ending inventory is
$74,900 = $18,700 + $72,700 - ending inventory
$74,900 = $91,400 - ending inventory
So, the ending inventory is
= $91,400 - $74,900
= $16,500
Comparing with unemployment rate with employment rate, which of the following is NOT correct? a. Unemployment rate takes the group of "out of labor force" into account. b. Compared with unemployment rate, employment rate is better because it concerns the hidden unemployment in the out of labor force group. c. Compared with employment rate, unemployment rate in a labor market usually has a larger variation. d. It has limitation because some policy shocks unrelated to unemployment or labor market situation such changes in fertility and school enrollment rates, will affect the number of the employment rate as well.
Answer:
b. Compared with unemployment rate, employment rate is better because it concerns the hidden unemployment in the out of labor force group.
Explanation:
Remember, the employment rate is used to determine the degree to which the labor force (people willing to work) in a particular economy are able to find work.
Hence, it does not concern itself or takes into account the hidden unemployment in the out of the labor force group, but only those people willing to work are considered.
Straight Industries purchased a large piece of equipment on January 1, 2016. Straight Industries signed a note, agreeing to pay $400,000 for the equipment on December 31, 2018. The market rate of interest for similar notes was 8%. The present value of $400,000 discounted at 8% for three years was $317,520. On January 1, 2016, Straight Industries recorded the purchase with a debit to equipment for $317,520 and a credit to notes payable for $317,520. Assuming no adjusting entries have been made during the year, the interest expense accrued at December 31, 2016 is closest to:
Answer:
$25,402
Explanation:
Calculation for the amount of interest accrued at December 31, 2016
Using this formula
Interest expense accrued= 2016 Beginning Note payable liability*Interest rate
Let plug in the formula
Interest expense accrued =$317,520*8%
Interest expense accrued =$25,402
Therefore the interest expense accrued at December 31, 2016 is closest to $25,402
On December 31, 2020, Coolwear, Inc. had a balance in its prepaid insurance account of $59,400. During 2021, $97,000 was paid for insurance. At the end of 2021, after adjusting entries were recorded, the balance in the prepaid insurance account was $47,500. Insurance expense for 2021 was:
Answer:
$108,900
Explanation:
Opening balance in the prepaid insurance account = $59,400
Paid for insurance = $97,000
Balance in insurance account at the end = $47,500
Total amount paid ;
= Opening balance in the prepaid insurance account + paid for insurance
= $59,400 + $97,00
= $156,400
Insurance expense for 2021;
= Total amount paid - Balance at the end in the prepaid insurance account
= $156,400 - $47,500
= $108,900
Joe is considering 2 similar bonds, with the only difference that: (1) a tax-exempt municipal bond promises a 5.625% annual return, (2) a taxable corporate bond promises a 7.5% annual return. If Joe's tax rate is 25%, which bond should he buy?
a. Either one, both have the same after-tax yield
b. Municipal bond, as it has a higher after-tax yield
c. Corporate bond, as it has a higher after-tax yield
d. Not enough information is given to answer the question
Answer:
a. Either one, both have the same after-tax yield
Explanation:
we have to calculate the after tax return of the bonds:
after tax return of corporate bonds = bond yield x (1 - tax rate) = 7.5% x (1 - 25%) = 7.5% x 0.75 = 5.625%
since municipal bonds are not included as part of Joe's gross income, their after tax rate is equal to their yield = 5.625%
both bonds yield the same after tax return = 5.625%
Gemstone Products located in New York City, is one of the world's largest producers of beauty and related products. The company's consolidated balance sheets for the 2016 and 2015 fiscal years included the following ($ in thousands): 2016 2015 Current assets: Receivables, less allowances of $133,425 in 2016 and $89,025 in 2015 $ 461,900 $ 441,500 A disclosure note accompanying the financial statements reported the following ($ in thousands) Year Ended 2016 2015 (In thousands) Calculation of account receivables, net: Receivables $ 595,325 $ 530,525 Less: allowance for doubtful accounts (123,125 ) (77,825 ) Less: reserve for product returns (10,300 ) (11,200 ) Trade accounts receivable, net: $ 461,900 $ 441,500 Assume that the company reported bad debt expense in 2016 of $192,500 and had products returned for credit totaling $187,225 (sales price). Net sales for 2016 were $5,653,800 ($ in thousands). Required: 1. What is the amount of accounts receivable due from customers at the end of 2016 and 2015
Answer:
Required:
1. What is the amount of accounts receivable due from customers at the end of 2016 and 2015?
2. What amount of accounts receivable did Gemstone write off during 2016?
3. What is the amount of Gemstone's gross sales for the 2016 fiscal year?
1. Particulars 2016 2015
Accounts receivables (Net) $461,900 $441,500
Add: Allowances $133,425 $89,025
Accounts receivables (gross) $595,325 $530,525
2. Particulars Amount
Allowance for doubtful accounts: Beginning balance $77,825
Add: Bad debt expenses $192,500
Less: Closing balance end of the year $123,125
Bad debts written off in 2016 $147,200
3. Particulars Amount
Balance, end of the year $10,300
Add: Actual returns $187,225
Less: Balance, beginning of the year $11,200
Estimated sales returns $186,325
Gross sales for the year = Net sales + Estimated sales returns
Gross sales for the year = $5,653,800 + $186,325
Gross sales for the year 2016 = $5,840,125
Acme-Jones Corporation uses a weighted-average perpetual inventory system. August 2, 40 units were purchased at $27 per unit. August 18, 24 units were purchased at $29 per unit. August 29, 42 units were sold. What was the amount of the cost of goods sold for this sale?
Answer:Cost of goods sold=$1,165.5
Explanation:
Using the weighted-average perpetual inventory system.
August 2 =40 units x $27per unit = $1080
August 18=24units x $29 per unit = $696
Weighted average cost per unit = (1080 + 696)/64 = $27.75per unit
Therefore, Cost of goods sold = $27.75 x 42 = $1,165.5
During 20x1, Orca Corp. decided to change from the FIFO method of inventory valuation to the weighted-average method. Inventory balances under each method were as follows:________.
FIFO Weighted-average
January 1, 20x1 $71,000 $77,000
December 31, 20x1 $79,000 $83,000
Orca's income tax rate is 30%.
In its 2005 financial statements, what amount should Orca report as the cumulative effect of this accounting change?
a) $2,800
b) $4,000
c) $4,200
d) $6,000
Answer:
Orca Corp.
The cumulative effect of this accounting change in estimate is:
That the cost of goods sold will be reduced by:
b) $4,000
Explanation:
a) Data and Calculations:
FIFO Weighted-average Difference
January 1, 20x1 $71,000 $77,000 $6,000
December 31, 20x1 $79,000 $83,000 $4,000
Orca's income tax rate is 30%.
Note that the difference in the cost of the beginning inventory does not have any effect in the current period's financials. It was an estimate that was done previously and Orca does not need to restate its financials for the previous year because of the change. The accounting change only affects the current period.
What is the definition of punctual? a. To be accurate. b. Adapting to your surroundings. c. Being on time. d. Having the ability to do more than one task at a time.
Answer:
c. Being on time.
Explanation:
Punctual is strictly adhering to the time set. A punctual person is never late for meetings or events. It's on time.
Punctual in making payments means the payments were not delayed. Punctuality refers to the ability to follow a schedule or a timetable.
If a check correctly written and paid by the bank for $649 is incorrectly recorded on the company's books for $694, the appropriate treatment on the bank reconciliation would be to
Answer: Add $45 to the book balance
Explanation:
This is a case of bank reconciliation. Bank reconciliation occurs when the account of the bank and the company or Business are compared in order to check the differences which are then reconciled.
In this case, since the check written and paid by the bank is $649 while in the company's book, it's written as $694, then a book balance of $45 is added which is the difference between $694 and $649
Prepare any necessary general journal entries.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit June 30 enter an account title to record miscellaneous expenses enter a debit amount enter a credit amount enter an account title to record miscellaneous expenses enter a debit amount enter a credit amount (To record bank service charges) June 30 enter an account title for the journal entry to correct error in recording deposit on June 20 enter a debit amount enter a credit amount enter an account title for the journal entry to correct error in recording deposit on June 20 enter a debit amount enter a credit amount (To correct error in recording deposit on June 20) June 30 enter an account title to record EFT transfer enter a debit amount enter a credit amount enter an account title to record EFT transfer enter a debit amount enter a credit amount (To record EFT transfer) June 30 enter an account title to record NSF check enter a debit amount enter a credit amount enter an account title to record NSF check enter a debit amount enter a credit amount (To record NSF check)
Answer:
Necessary General Journal Entries:
Date Account Titles and Explanation Debit Credit
June 30 Miscellaneous Expenses $200
Cash Account $200
To record bank service charges.
June 20 Cash Account $300
Accounts Receivable $300
To correct error in recording deposit on June 20.
June 30 Cash Account $400
Accounts Receivable $400
To record EFT transfer received from XYZ Co. on account.
June 30 Accounts Receivable $500
Cash Account $500
To record NSF check received from Zoma Inc.
Explanation:
Company B's general journal is used to record business transactions as they occur initially. The entries identify the accounts involved and the required entries to be made as they are supposed to appear in the general ledger. Accounts to be debited are entered first before accounts to be credited for each transaction.
A firm has fixed operating costs of $10,000, the sale price per unit of its product is $25, and its variable cost per unit is $15. The firm's operating breakeven point in units is ________ and its breakeven point in dollars is ________.
A) 1,000; $6,250.
B) 400; $10,000.
C) 400; $25,000.
D) 1,000; $25,000.
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Fixed costs= $10,000
Selling price= $25
Unitary variable cost= $15
To calculate the break-even point in units and dollars, we need to use the following formulas:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 10,000 / (25 - 15)
Break-even point in units= 1,000
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 10,000 / (10/25)
Break-even point (dollars)= $25,000
Answer:
D) 1,000; $25,000.
Explanation:
Let us assume the company produces x units. The total cost is:
Total cost = fixed cost + variable cost × number of items = $10000 + 15 × x = 10000 + 15x
The revenue = number of unit × price per unit = x × $25 = 25x
At breakeven, the revenue and cost are equal, therefore:
25x = 10000 + 15x
25x - 15x = 10000
10x = 10000
x = 10000/10
x = 1000 units
The price at breakeven point = 25x = 25(1000) = $25000
Charter Company, which uses the perpetual inventory method, purchases different letters for resale. Charter had a beginning inventory comprised of seven units at $4 per unit. The company purchased five units at $6 per unit in February, sold seven units in October, and purchased two units at $7 per unit in December. If Charter Company uses the LIFO method, what is the cost of its ending inventory
Answer:
Ending inventory cost= $34
Explanation:
Giving the following information:
Beginning inventory= 7 units for $4 per unit.
Purchased= 5 units for $6
Sold= 7 units
Purchased= 2 units for $7 each
Under the LIFO (last-in, first-out) method, the cost of ending inventory is calculated using the cost of the firsts units incorporated into inventory. The perpetual inventory system recognizes sales after it happens.
Ending inventory:
Beginning inventory= 7*4= 28
Purchased= 5*6= 30
Sold= (5*6) + (2*4)= (38)
Purchased= 2*7= 14
Ending inventory cost= $34
