Answer:
1. We have:
Initial valuation of land = $1,821,720
Initial valuation of building = $1,214,480
2. We have:
Initial valuation of land = $3,432,700
Initial valuation of building = $0
Explanation:
1. Determine the initial valuation of each asset Samtech acquired in these transactions.
Fair value of land = $3 million
Fair value of building = $2 million
Total fair value = $3 million + 2 million = $5 million
Total acquisition cost = Purchase price land and building + Title insurance + Legal fees for drawing the contract + State transfer fees = $3,000,000 + $23,000 + $8,500 + $4,700 = $3,036,200
Initial valuation of land = Total acquisition cost * (Fair value of land / Total fair value) = $3,036,200 * (3 / 5) = $1,821,720
Initial valuation of building = Total acquisition cost * (Fair value of building / Total fair value) = $3,036,200 * (2 / 5) = $1,214,480
2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $320,000 and the salvaged materials were sold for $9,500. In addition, Samtech spent $86,000 clearing and grading the land in preparation for the construction of a new building.
Since it is assumed that the building has been demolished, the building will no longer have any initial valuation or an initial valuation of $0.
What will happen now is that the Total acquisition cost plus Demolition costs and cost of clearing and grading the land in preparation for the construction of a new building minus the salvaged materials will be the initial valuation of land.
Initial valuation of land = Total acquisition cost + Demolition costs + Cost of clearing and grading the land - Salvaged materials = $3,036,200 + $320,000 + $86,000 - $9,500 = $3,432,700
Initial valuation of building = $0
On January 1, 2021, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The only interest-bearing debt the company had outstanding during 2021 was long-term bonds with a book value of $10,000,000 and an effective interest rate of 8%. Construction expenditures incurred during 2021 were as follows:
January 1 ...............$ 500,000
March 1 ....................600,000
July 31 ......................480,000
September 30 .........600,000
December 31 ..........300,000
Required:
Calculate the amount of interest capitalized for 2021.
Answer:
Shagri Company
The Amount of Interest Capitalized for 2021 is:
= $108,000
Explanation:
a) Data and Calculations:
Outstanding interest-bearing long-term bonds = $10 million
Effective interest rate = 8%
Construction Expenditures incurred during 2021:
Date Amount incurred Weight Weighted-Average
Expenditure
January 1 $ 500,000 12/12 $500,000
March 1 600,000 10/12 500,000
July 31 480,000 5/12 200,000
September 30 600,000 3/12 150,000
December 31 300,000 0/12 0
Total Weighted-Average Cumulative Expenditure $1,350,000
Amount of interest capitalized for 2021 = $108,000 ($1,350,000 * 8%)
You’ve had a good run as manager for a leading brand of leave-in conditioner. The product performs better than competition in taming frizzy hair, and has long commanded a premium price based on an attribute-based positioning. But now you’re nervous. There’s been a gradual but steady decline in sales over the past three quarters. Denise, a new member on the marketing research team, has presented you with information that suggests two possible causes. - First, beauty magazines and salon publications wrote repeatedly last year about a shift to free-flowing, natural styles. These styles work best with products that don’t leave residue on hair. You know that secondary data isn’t always ideal, but these stories were consistent and voluminous. - Second, recent focus groups run by Denise complained that your price is too high. Like all focus groups, these included only a small number of people, but the participants were loyal customers. Neither source is perfect, and the information you have is far from conclusive. But there’s nothing else to go on for now. Top management is under pressure from investors and anxious to take action, but wants to make sure the company is set up for long-term success. You can’t effectively address both issues at once, so you must decide which one is more likely to be causing the sales decrease.
A) Styling change.
B) Price.
Answer:
The issue that is more likely to be causing the sales decrease is:
Styling change.
This is the issue that should be addressed immediately. In addressing this issue, consideration should be paid to the price issue since any production shift to meet customers' styling change will reduce the production of the leave-in conditioner.
Explanation:
Identified Problem:
Steady declining sales
Causes;
Styling change
High price
what are the marketing strategies of netflix please help!
Answer:7 Modern Marketing Strategy Lessons from the Netflix Business Model
Use Multi-channel Marketing to Connect with People Online and Offline.
Make Emails Memorable and People Will Talk.
Offer Personalized Content to Keep People Hooked.
Let Data Show You the Secrets to Better Customer Service.
Explanation:
Howat Corporation earned $360,000 during a period when it had an average of 100,000 shares of common stock outstanding. The common stock sold at an average market price of $15 per share during the period. Also outstanding were 15,000 warrants that could be exercised to purchase one share of common stock for $10 for each warrant exercised. (a) Are the warrants dilutive
Answer: Yes they are.
Explanation:
A warrant will be dilutive if it causes the share price of a company to reduce in value when it is exercised and converted into common stock.
The warrant in this scenario will dilute the share value because it is to be exercised at a price that is lower than the current market price of the stock so when it is added to the outstanding shares, it will reduce the market value and dilute the shares.
Worldwide Electronics is a global manufacturing firm that produces televisions, monitors, and other consumer electronic equipment. It is organized geographically with four divisions (North America, South America, Europe and Africa, and Asia-Pacific). Manufacturing is organized by product line and shipped to the divisions. That is, televisions, for example, are produced in a single plant and then shipped to the four global divisions for sale.
Required:
Match the following executives to the responsibility center that best represents their likely decision-making authority. Responsibility Center Executive
1. JH Green, Corporate Personnel Officer
2. Kalya Borodina, Sales Manager, Peru
3. Jay Smith, Chief Executive Office
4. Andres Goya, Vice-President, South America S en Chan, Mexico City Plant Manager Cost center Discretionary cost center Investment center Profitcenter Revenue center
Answer:
Explanation:
1. JH Green, Corporate Personnel Officer - Discretionary cost center
2. Kalya Borodina, Sales Manager, Peru - Revenue center
3. Jay Smith, Chief Executive Office - Investment center
4. Andres Goya, Vice-President, South America - Profit center
5. Irene Chan, Mexico City Plant Manager - Cost center
Banks offer various types of accounts, such as savings, checking, certificate of deposits, and money market, to attract customers as well as meet their specific needs.
a. True
b. False
Answer:
it's false.. because those are not the various types of account.
Rational and emotional advertising appeals __________ . Group of answer choices represent two distinctive approaches which should never be combined since they divide the focus of a potential consumer's attention counteract each other when combined can be combined wince consumers' purchase decisions are often made on the basis of both rational and emotional motives can only be used together effectively for low-involvement product purchases are most effective when used in conjunction with other advertising appeals
Answer:
can be combined since consumers' purchase decisions are often made on the basis of both rational and emotional motives.
Explanation:
Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research.
Basically, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.
Advertisement refers to the promotional multimedia messages designed and developed to make the products or services of a company known to its customers and potential customers. Also, it is generally considered to be one-sided because it focuses on painting a brand as the best and devoid of any negative issue.
Rational and emotional advertising appeals can be combined since consumers' purchase decisions are often made on the basis of both rational and emotional motives.
Buying motive refers to the considerations, urge, emotions or influences that creates the impulse in consumers (customers) to buy a particular good, so as to satisfy their desire or needs.
This ultimately implies that, behind every purchase made by a consumer, there's a consideration, urge or feeling to satisfy that desire or needs l, this is generally referred to as buying motive.
In Economics, buying motives are classified into five (5) main categories and these include;
I. Acquired and Inherent buying motives.
II. Conscious and Dormant buying motives.
III. Physical, Psychological and Sociological buying motives.
IV. Primary and Selective buying motives.
V. Rational and Emotional buying motives.
A rational buying motive is typically based on the consumer's logical and economical consideration of a product in terms of price, durability, need, quality, etc. Thus, it involves a careful consideration of a product rather than feelings as in emotional buying motive.
3. (01.02 MC)
You choose to complete your homework rather than watch television so that you can earn a good grade. You made the choice with the lowest (5 points)
O opportunity cost
O demand
Oscarcity
Obenefit
The purpose of using a balanced scorecard is for Multiple Choice companies to keep track of their wins and losses. companies to get a better understanding of their balance sheet. companies to compare themselves with their competitors. companies to make sure their business activities align with strategy. companies to keep track of their assets and their debits.\
Answer:
companies to make sure their business activities align with strategy.
Explanation:
A balance scorecard can be defined as a performance metrics used for measuring and assessing the quality of performance of a company. The four (4) performance metrics of a balance scorecard includes the following; customer, learning and growth, internal business processes, and financial.
Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan.
Hence, the main purpose of using a balanced scorecard is for companies to make sure their business activities align with strategy.
what is legal risks in business?
Answer:
Regulatory Risk. A risk of changes to regulations that result in new compliance costs.
Explanation:
26) Cosy and Co. produces and sells vases for $100. The company has the capacity to produce 50,000 vases each period. At capacity, the costs assigned to each unit are as follows: Unit level costs $ 45 Product level costs $ 15 Facility level costs $ 5 The company has received a special order for 500 vases. If this order is accepted, the company will have to spend $15,000 on additional costs. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent between accepting and rejecting the special order
Answer:
$75 per unit
Explanation:
the unit level cost is equivalent to the variable cost = $45 per unit
product level costs and facility level costs are fixed costs
additional costs = $15,000 / 500 units = $30 per unit
Minimum selling price = $45 + $30 = $75 per unit
At this price, the company will be indifferent regarding whether to accept or reject the special order.
The master budget at Western Company last period called for sales of 225,000 units at $9 each. The costs were estimated to be $3.75 variable per unit and $225,000 fixed. During the period, actual production and actual sales were 230,000 units. The selling price was $9.10 per unit. Variable costs were $4.50 per unit. Actual fixed costs were $225,000. Required: Prepare a sales activity variance analysis
Answer:
Sales volume variance $26,250 Favorable
Explanation:
The sales volume variance is calculated as the difference between the budgeted and the actual sales volume multiplied by he standard contribution per unit
Units
Budgeted sales units 225,000
Actual sales units 230,000
Sales volume 5,000 favorable
Standard contribution(9-3.75) × $5.25
Sales volume variance $ 26,250
Sales volume variance $26,250 Favorable
Note standard contribution = standard selling price - standard variable cost
Two best friends, Thelma and Louise, are making long-range plans for a road trip vacation to Mexico. They will embark on this adventure in five years and want to invest during the five-year period to earn money for the trip. They decide to purchase a $1,000 Grand Canyon Oil Company bond with an annual coupon rate of 10 percent with interest to be paid semiannually. The bond will mature in five years. The YTM of similar bonds is 8 percent. How much should they be willing to pay for the bond if they purchase it today
Answer:
Bond Price= $1,081.1
Explanation:
Giving the following formula:
Face value= $1,000
Number of periods= 5*2= 10 semesters
Coupon= (0.1/2)*1,000= $50
YTM= 0.08/2= 0.04
To calculate the price of the bond, we need to use the following formula:
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 50*{[1 - (1.04^-10)] / 0.04} + [1,000 / (1.04^10)]
Bond Price= 405.54 + 675.56
Bond Price= $1,081.1
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $485,060 and direct labor hours would be 48,506. Actual factory overhead costs incurred were $508,253, and actual direct labor hours were 52,943. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year
Answer:
$21,177 overapplied
Explanation:
Applied Overheads = Predetermined overhead rate x Actual activity
where,
Predetermined overhead rate = Budgeted Overheads ÷ Budgeted Activity
= $485,060 ÷ 48,506 hours
= $10 / direct labor hour
therefore,
Applied Overheads = $10 x 52,943 = $529,430
Since, Applied Overheads ($529,430) > Actual Overheads ($508,253), overheads have been over-applied by $21,177
Conclusion :
The amount of overapplied manufacturing overhead at the end of the year is $21,177
Bridge City Consulting bought a building and the land on which it is located for $185,000 cash. The land is estimated to represent 60 percent of the purchase price. The company paid $15,000 for building renovations before it was ready for use.
Required:
1. Prepare the journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start of the year.
2. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $9,000 estimated residual value.
3. What should be the book value of the land and building at the end of year 2?
Answer:
Bridge City Consulting
1. Journal Entries:
January 1:
Debit Land (60%) $111,000
Debit Building (40%) $74,000
Credit Cash $185,000
To record the purchase of land and building for cash.
Debit Building $15,000
Credit Cash $15,000
To record the cost of renovating the building for use.
2. Depreciation on the building at the end of one year = $8,000.
3. Book value of Land = $111,000
Book value of Building = $89,000
Explanation:
a) Data and Calculations:
Building and land = $185,000
Land (60%) $111,000 Building (40%) $74,000 Cash $185,000
Building $15,000 Cash $15,000
Straight-line Depreciation on Building:
Cost of Building $89,000
Estimated useful life = 10 years
Estimated residual value = $9,000
Depreciable amount = $80,000 ($89,000 - $9,000)
Annual Depreciation Expense = $8,000 ($80,000/10)
b) The book value is different from the net book value. The net book value of the building at the end of year 2 would be $73,000 (Book value, $89,000 less Accumulated Depreciation, $16,000). It includes the residual value and the undepreciated portion of the asset.
On January 21, the column totals of the payroll register for Great Products Company showed that its sales employees had earned $14,760, its truck driver employees had earned $10,330, and its office employees had earned $8,260. Social Security taxes were withheld at an assumed rate of 6.2 percent, and Medicare taxes were withheld at an assumed rate of 1.45 percent. Other deductions consisted of federal income tax, $4,002; and union dues, $540.
Required:
Determine the amount of Social Security and Medicare taxes withheld and record the general journal entry for the payroll, crediting Salaries Payable for the net pay. All earnings were taxable. Round amounts to the nearest penny
Answer:
a. Social Security Taxes
= Total wages * 6.2%
= (14,760 + 10,330 + 8,260) * 6.2%
= $2,067.70
b. Medicare taxes:
= Total wages * 6.2%
= (14,760 + 10,330 + 8,260) * 1.45%
= $483.58
c. Journal entry:
Date Account Title Debit Credit
Jan, 21 Salaries Expense (Sales) $14,760
Salaries Expense (Office) $ 8,260
Salaries Expense (Truck driver) $10,330
Social Security Tax Payable $2,067.70
Medicare Tax payable $ 483.58
Federal income tax payable $ 4,002
Union Dues payable $ 540
Salaries Payable $26,256.72
Question 9 At the end of the quarter, a company did an adjusting entry to record the fact that $1,000 of Prepaid Advertising had been used up during the quarter. Which of the following items would be increased by this advertising adjusting entry? (check all that apply) 1 point Net Income Cash Cost of Goods Sold Prepaid Advertising SG&A Expense
Answer:
Sg&a expense
Explanation:
When you use up insurance, you debit advertising expense and credit prepaid advertising.
‘you don’t increase income since it’s an expense
it shouldon’t go thru cost of goods sold
you reduce not increase prepaid advertising
Which of the following reflect the balances of prepayment accounts prior to adjustment?
Balance sheet accounts are understated and income statement accounts are understated
Balance sheet accounts are overstated and income statement accounts are overstated
Balance sheet accounts are understated and income accounts are overstated
Balance sheet accounts are overstated and income statement accounts are understated
Answer:
The answer is Balance sheet accounts are overstated and income statement account are understated.
Explanation:
Where must food handlers dispose of waste water?
Answer:
Must be dispose in a sanitary sewer
Explanation:
Can not be in a storm drain or on surface ground
The food handlers dispose of waste water must be disposed into a sanitary sewer and never on the surface of the ground or in a storm drain.
Food that is safe to eat does not have any negative health effects after consumption. Consumers believe that the food they buy is safe and of the highest quality. The proper construction, maintenance, and operation of a food establishment protects the general public from unsafe food.
Queensland's food regulatory framework is in place to ensure that all food businesses address these issues, and there are severe penalties for food businesses that do not comply with the law.
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For each transaction in the following table, indicate in which U.S. account it appears as a credit and in which account it appears as a debit.
Account with Account with
Transaction Credit Debit
Miguel, a U.S. resident, buys an HDTV set for $2,500
and sends it to Mexico as a gift to his parents.
Arielle, a French tourist, stays at a hotel in San
Francisco and pays $400 for it with her debit card issued
by a French bank.
The United States forgives $100 million of debt owed by
the government of Mexico.
Answer:
Miguel's transaction will be recorded as a credit to the current account and a debit to the capital account.
Arielle's transaction will be recorded as a credit to the current account and a debit to the financial account.
US government's transaction will be recorded as a credit to the financial account and a debit to the capital account.
Explanation:
Forsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $135 per unit. Its standard cost per unit produced is $105 and its selling and administrative expenses totaled $235,000. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year:
Materials price variance . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,500 F
Materials quantity variance . . . . . . . . . . . . . . . . . . . . . . . . $10,200 U
Labor rate variance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,500 U
Labor efficiency variance . . . . . . . . . . . . . . . . . . . . . . . . . . $4,400 F
Fixed overhead budget variance . . . . . . . . . . . . . . . . . . . . . $2,500 F
Fixed overhead volume variance . . . . . . . . . . . . . . . . . . . . $12,000 F
Required:
1. When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much?
2. Prepare an income statement for the year.
Answer:
See below
Explanation:
1. Computation of cost of goods sold
Particulars Amount
Materials Price Variance
$6,500F
Materials Quantity Variance
$10,200U
Labor Rate Variance
$3,500U
Labour Efficiency Variance
$4,400F
Fixed overhead budget variance $2,500F
Fixed overhead volume variance $12,000F
Cost of goods sold
$11,700
Cost of goods sold would increase by $11,700
2. Income statement for the year
Particulars
Sales
($135 × 10,000) $1,350,000
Less:
Cost of goods sold
Cost of goods sold at standard
($105 × 10,000)
$1,050,000
Add:
Variance adjustment
$11,700
Cost of goods sold
$1,061,700
Gross profit
$288,300
Less:
Selling and administrative expenses
($235,000)
Net operating income
$53,300
Required:
1. Compute the company’s net sales for the year.
2. Compute the company’s total cost of merchandise purchased for the year.
3. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.
4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.
Valley Company's adjusted trial balance on August 31, 2018, its fiscal year-end, follows.
Debit Credit
Merchandise inventory $ 33,500
Other (noninventory) assets 134,000
Total liabilities $ 38,693
Common stock 10,000
Retained earnings 102,124
Dividends 8,000
Sales 229,140
Sales discounts 3506
Sales return and allowances 15123
Cost of goods sold 89129
Sales salaries expense 31392
Rent expense selling space 10770
Store supplies expense 2750
Advertising expense 19477
Office salaries expense 28647
Rent expense office space 2750
Office supplies expense 917
Totals $379,957 $379,957
On August 31, 2017, merchandise inventory was $27,035. Supplementary records of merchandising activities for the year ended August 31, 2018, reveal the following itemized costs.
Invoice cost of merchandise purchase 98490
Purchase discounts received 2068
Purchase returns and allowances 4728
Costs of transportation-in 3900
Answer:
Valley Company
1. The company's net sales for the year is:
= $210,511.
2. The company's total cost of merchandise purchased for the year is:
= $95,594.
3. Multiple-step Income Statement for the year ended August 31, 2018
Sales 229,140
Sales discounts (3,506)
Sales return and allowances (15,123)
Net Sales 210,511
Cost of goods sold:
Beginning inventory $ 33,500
Purchases 95,594
Goods available for sale $129,094
Less Ending inventory 27,035 89,129
Gross profit 121,382
Selling Expenses:
Sales salaries expense 31,392
Rent expense selling space 10,770
Store supplies expense 2,750
Advertising expense 19,477 64,389
General and Administrative Expenses:
Office salaries expense 28,647
Rent expense office space 2,750
Office supplies expense 917 32,314
Total expenses 96,703
Net Income 24,679
4. Single-step Income Statement for the year ended August 31, 2018
Net Sales 210,511
Cost of goods sold 89,129
Gross profit 121,382
Selling Expenses 64,389
General and Administrative Expenses 32,314
Total expenses 96,703
Net Income 24,679
Explanation:
a) Data and Calculations:
Valley Company's adjusted trial balance on August 31, 2018, its fiscal year-end, follows.
Debit Credit
Merchandise inventory $ 33,500
Other (non-inventory) assets 134,000
Total liabilities $ 38,693
Common stock 10,000
Retained earnings 102,124
Dividends 8,000
Sales 229,140
Sales discounts 3,506
Sales return and allowances 15,123
Cost of goods sold 89,129
Sales salaries expense 31,392
Rent expense selling space 10,770
Store supplies expense 2,750
Advertising expense 19,477
Office salaries expense 28,647
Rent expense office space 2,750
Office supplies expense 917
Totals $379,957 $379,957
Net Sales:
Sales 229,140
Sales discounts (3,506)
Sales return and allowances (15,123)
Net Sales 210,511
Total cost of merchandise purchased:
Purchase 98,490
Purchase discounts received (2,068)
Purchase returns and allowances (4,728)
Costs of transportation-in 3,900
Total cost of purchases = 95,594
We've talked a lot about "fixed" and "variable" expenses. We've talked about the way these expenses impact your budget and your savings. We also talked about one big thing you can do about variable expenses that you cannot usually do about your fixed expenses. What was the big thing you can do?
Answer:c
Explanation:
Sultan Services has million shares outstanding. It expects earnings at the end of the year of million. Sultan pays out 60% of its earnings in total - 40% paid out as dividends and 20% used to repurchase shares. If Sultan's earnings are expected to grow by % per year, these payout rates do not change, and Sultan's equity cost of capital is %, what is Sultan's share price?
Answer: $73.33
Explanation:
Dividend discount model can be used to calculate the value of the shares:
= Earnings paid out / (Cost of equity - growth rate)
Earnings to be paid out:
= 60% * 5,500,000
= $3,300,000
Value of shares:
= 3,300,000 / ( 9% - 6%)
= $110,000,000
Share price:
= Value of shares / Number of shares outstanding
= 110,000,000 / 1,500,000
= $73.33
Meadow is getting ready to attend college next year. She's thinking about ways to pay for it. Which of these is the best first step for her to take in planning her finances? A) apply for the work-study program at the college B) apply for as many scholarships as possible C) apply for a Perkins Loan Eliminate D) apply for a bank loan
Answer:
its b
Explanation:
yw
Since Meadow has to start attending college the first step to be taken by her has been to apply for as many as scholarships. Thus, option B is correct.
To pay the payment of the college there have been ways that aid financially. The programs may help you earn while studying, or being a bright student the financial aid cab be provided.
The options suits for the planning to pay the expenses are:
A. Apply for the Work-study program at the college:
At the Federal Work-study program, the students in colleges are allowed to work part-time to help them financially.
B. Apply for as many as scholarships:
The scholarships have been the financial aid provided by the government, private organizations, and educational institutes for the students to continue their education.
C. Apply for a Perkins Loan Eliminate:
It has been the low-interest rate scheme provided to the students in the financial need to continue their education. It has been a kind of loan service.
D. Apply for a bank loan:
Bank loan has been the assistance provided by the banks at the interest rate for a specific time of education.
Since Meadow has to start attending college the first step to be taken by her has been to apply for as many as scholarships. Thus, option B is correct.
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For journal entries in this assignment, enter AR for Accounts Receivable, ADA for Allowance for Doubtful Accounts, BAD for Bad Debt Expense, REV for Sales Revenue, and CASH for Cash. Please be careful as you type, because Blackboard is not forgiving! Enter all numeric answers in whole dollars but without a $.
Priestly Inc. records sales on account of $120,000 during the month of June. The company estimates bad debt expense as of 3% of credit sales.
A. Show the journal entry for the June sales on account (enter account name from the choices in the general instructions above, and then the amount).
o Debit: [a] [b]
o Credit: [c] [d]
B. Show the journal entry for June's bad debt expense.
o Debit: [e] [f]
o Credit: [g] [h]
C. Assuming Priestly's opening balance of Accounts Receivable on June 1 was $0, what is its balance of net Accounts Receivable after the two entries above?
Just before closing its books on June 30, Priestly learns that one of its customers, the McKay Company, has run into financial difficultly and cannot pay an invoice totaling $2,300. Priestly decides to write off McKay's account.
i. Show the journal entry for the write-off.
o Debit: [j] [k]
o Credit: [U] [m]
ii. What is Priestly's balance of net Accounts Receivable after the write-off? [
On July 15, Priestly is pleasantly surprised to receive a check for $1,200 from McKay with a note saying the remainder of the balance due will be sent in two weeks.
A. Show the journal entry to reinstate the account for which payment has been received.
o Debit: [o] [p]
o Credit: [q] [r]
B. Show the journal entry to record McKay's payment of $1,200.
o Debit: [s] [t]
o Credit: [u] [v]
C. What is Priestly's balance of net Accounts Receivable after the entries pertaining to Mckay?
Answer:
Priestly Inc.
A. Debit AR 120,000
Credit REV 120,000
To record the sales on account for June.
B. Debit BAD 3,600
Credit ADA 3,600
To record the bad debts expense for the month.
C. The balance of net Accounts Receivable after the two entries above is $116,400
D. Debit ADA 2,300
Credit AR 2,300
To write-off McKay's account.
E. Priestly's balance of net Accounts Receivable after the write-off is $$114,100.
F. Debit AR 1,200
Credit ADA 1,200
To reinstate a previously written-off amount from McKay's account.
G. Debit CASH 1,200
Credit AR 1,200
To record the receipt from McKay on account.
H. Priestly's balance of net Accounts Receivable after the entries pertaining to McKay is $114,100.
Explanation:
Data and Analysis:
A. Accounts receivable $120,000 Sales revenue $120,000
B. Bad Debts Expense $3,600 Allowance for Doubtful Accounts $3,600
C. Allowance for Doubtful Accounts $2,300 Accounts Receivable $2,300
D. Accounts Receivable $1,200 Allowance for Doubtful Accounts $1,200
E. Cash $1,200 Accounts Receivable $1,200
T-account:
Accounts Receivable
Account Titles Debit Credit Balance
A. Sales revenue $120,000 $120,000
B. Allowance for Doubtful Accounts $3,600 116,400
C. Allowance for Doubtful Accounts $2,300 114,100
D. Allowance for
Doubtful Accounts 1,200 115,300
E. Cash 1,200 114,100
Can someone help me please
What are 7 or more ways to have good credit
Answer:
Only Borrow What You Can Afford. Jose Luis Pelaez / Getty Images. ...
Use Only a Small Amount of the Credit You Have Available. People Images / Getty Images. ...
Start With Only One Credit Card. ...
Pay Your Credit Card Balance in Full. ...
Make All Your Payments on Time. ...
If You Carry a Balance, Do It the Right Way. ...
Let Your Accounts Age.
Explanation:
what is the different between book-keeping and accounting
Answer:
Bookkeeping is a transactional and administrative function that records financial transactions such as orders, refunds, sales, and transfers on a daily basis. Accounting is more subjective, offering accounting insights to company managers based on facts gleaned from their bookkeeping records.
Explanation:
The U.S. Rice Millers’ Association claims that if the Japanese rice market were opened to imports by lowering tariffs, the resultant lower prices would save Japanese consumers about $6 billion annually. The Japanese government continues to use the high tariffs to make sure local farmers can earn a living. The tariff on rice is an example of
Answer: Protectionism
Explanation:
Protectionism occurs when the industries in a particular country are being protected from foreign competition by the government of that economy. Protectionism is done through the imposition of tariffs, quotas or total ban on the products of other countries.
In the question, the tariff on rice is an example of protectionism as the tariff will lead to an increase in the price of the foreign rice and the people will have to buy from the local rice suppliers. In this case, the local industry is protected.
Bank 1 has deposits of $4,514 and reserves of $789. If the required reserve ratio is 10%, what is the value of the bank's required reserves
Answer:
Required Reserves = 451.4 $
Explanation:
Required reserves ratio can be calculated by the following equation
Required Reserves = Required Reserve Ratio × Deposits
Required Reserves = 0.10 x 4514
Required Reserves = 451.4 $
