Answer:
Cost of Goods Manufactured $893,000
Explanation:
Chang Company
Schedule of Cost of Goods Manufactured
Inventories: Raw materials, beginning $ 20,000
Add Purchases of raw materials $ 400,000
Less Raw materials, ending $ 30,000
Direct Materials Used $390,000
Direct labor cost $ 60,000
Manufacturing overhead Costs: $ 473,000
Indirect materials $ 15,000
Indirect labor 130,000
Property taxes, factory 8,000
Utilities, factory 70,000
Depreciation, factory 240,000
Insurance, factory 10,000
Total actual Manufacturing Costs 923,000
Add Work in process, beginning $ 40,000
Cost of Goods Available For Manufacture $ 963,000
Less Work in process, ending $ 70,000
Cost of Goods Manufactured $893,000
Applied Overhead = Rate * Hours worked
= 25* 19,400= 485,000
The applied overhead is subtracted or added to the cost of goods sold amount. It is not accounted for in the schedule of cost of goods manufactured.
A local government awards a landscaping company a contract worth $1.5 million per year for five years for maintaining public parks. The landscaping company will need to buy some new machinery before they can take on the contract. If the cost of capital is 6%, what is the most that this equipment could cost if the contract is to be worthwhile for the landscaping company
Answer:
The equipment should not cost more than $6,318,545.68
Explanation:
The most that the land scrapping equipment could cost is the present of the 1.5 million annuity discounted at 6% p.a.
Present Value of Annuity = A × ( 1- (1+r)^(-n))/r
A- 1,500,000, n- 5, r- 6%
=1, 500,000 × ((1.06)^(-5))/0.06
= $6,318,545.68
The equipment should not cost more than $6,318,545.68
Henry Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the machine-hours for the upcoming year at 20,000 machine-hours. The estimated variable manufacturing overhead was $9 per machine-hour and the estimated total fixed manufacturing overhead was $600,000. The predetermined overhead rate for the recently completed year was closest to:__________
Answer:
Estimated manufacturing overhead rate= $39 per machine hour
Explanation:
Giving the following information:
Estimated machine-hours= 20,000
The estimated variable manufacturing overhead was $9 per machine-hour.
The estimated total fixed manufacturing overhead was $600,000.
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= (600,000/20,000) + 9
Estimated manufacturing overhead rate= $39 per machine hour
Which of the following comes closest to the value at the end of year 6 of investing $600 today (year 0) and then investing another $600 at the end of year 5 if the interest rate is 3%?
a. $ 1,434
b. $ 1,334
c. $ 1,542
d. $ 1,383
e. $ 1,487
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Investment= $600 today and $600 at the end of year 5
Interest rate= 3%
To calculate the final value, we need to apply the following formula on each investment:
FV= PV*(1+i)^n
FV= 600*(1.03^6)= $716.43
FV= 600*(1.03^1)= $618
Total FV= $1,334.43
Charlie the cat stole $20 from his cat mom. He's planning on spending the money he stole on catnip (Q1) and dental treats (Q2). Dental treats are more expensive at $3 per treat, but catnip is pretty cheap at $0.50 per pouch. What will Charlie's budget constraint look like?
Answer:
$ 20= Q1 (0.5 ) + Q3( 3)
Explanation:
Total Amount = $ 20
Dental treats Q2= $ 3
Catnip Q1= $ 0.50
Maximum no of Dental Treats he can get is = $ 20 /$3= 6.66
If he gets maximum dental treats i.e 6 , $18 will be spent (3*6)
He will be left with = $ 20- $ 18= $ 2
The maximum no of catnip he can get after buying 6 dental treats from $ 2= $ 2/$0.5= 4
Let Q1 denote the catnip and Q3 denote the dental treats then the equation would be like
$ 20= Q1 (0.5 ) + Q3( 3)
So putting the values for q1=0,1,2,3,4,5,6,7,8,9,10
for values 0-4 Q3 will be $ 18
for values 4-6 Q3 will be $ 15
for values 6-8 Q3 will be $ 12
From values Zero on wards the budget constraint will be a slope but after value 4 the change will be after every two points.
The slope will look like the one given in the diagram.
You’re about ready to sign a big new client to a contract worth over $50,000. Your boss is under a lot of pressure to increase sales. He calls you into his office and tells you his job is on the line, and he asks you to include the revenue for your contract in the sales figures for the quarter that ends tomorrow. You know the contract is a sure thing but the client is out of town and cannot possibly sign by tomorrow. What do you do?
Answer:
This is a complicated ethical dilemma because generally you wouldn't want to hurt or do things that can be negative for your boss, specially if he is a good boss. But including unrealized sales is also a bad thing.
This is not only unethical but also violates accounting principles (known as accounting fraud). This can lead to several and severe penalties, which in some cases include jail time. In this case and for this amounts that would not be the case, but other negative consequences can result.
What happens if something goes wrong and the sales is not closed. The answer is simple, you will lose your job. If other employees learn about this your credibility will suffer a lot. Everyone will believe that you always lie about your sales figures.
Personally, I would find an excuse for not including that sales contract in the current month. No choice is easy, but you should do the right and legal thing.
This is a difficult ethical problem because you normally don't want to damage or do things that could harm your boss, especially if he is a nice one. However, counting anticipated sales is also problematic.
Not only is immoral, but it also goes against accounting standards . This can result in a variety of harsh sanctions, including jail time in some situations. That would not be the case in this circumstance and for these amounts, but other undesirable repercussions could occur.
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Before you begin to compose a message, you should conduct research to collect the necessary information. To avoid frustration and inaccurate messages, be sure to consider the receiver's position.
Which questions should you ask yourself before determining what and how to research?
A) Can I access information electronically to speed up the research process?
B) Is it really important to be writing to this person, or should I call him or her?
C) What strategies should I use when looking up information in the library database?
D) What does the receiver need to know about this topic?
Answer:
A) Can I access information electronically to speed up the research process?
C) What strategies should I use when looking up information in the library database?
D) What does the receiver need to know about this topic?
Explanation:
To determine what and how a research should be conducted, several factors ought to be considered. Some of the factors of consideration include these listed below.
Before setting out to to conduct a research, it is vital that the researcher understands the position of the receiver on the subject matter. This implies having an accurate understanding of what the receiver already knows about the subject matter. This would inform what further information needs to be added during the research. It is also important to have a good strategy for getting information in the library database as literary sources are segmented in libraries. Therefore, it would be unwise to obtain information randomly. Electronic platforms like the internet are also a good source of information which would be helpful if incorporated in the research process.Trendz Inc. is a leading brand of fashion clothing and accessories based in Houston. After gaining a strong foothold in the U.S., the company wants to foray into foreign markets. The management at Trends knows that people residing in other countries are likely to have different tastes and preferences, so they may have to redesign some of their offerings. Which of the following strategies is Trendz using?
A) market-penetration strategy
B) outsourcing strategy
C) geographic-expansion strategy
D) product differentiation strategy
E) ethnocentric strategy
Answer:
The correct answer is the option D: product differentiation strategy.
Explanation:
To begin with, the fact that the company knows and understand that in other countries the people may have other needs and preferences is helpful because in that way they are able to investigate and start the creation and production of a good that adjusts to the preferences of that other country and by doing that the company leaves behind the concept of standarization and focus on the differentiation of its product by making it unique in every country they are in.
Prepare journal entries to record the December transactions in the General. Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense.
1-Dec Began business by depositing $10500 in a bank account in the name of the company in exchange for 1050 shares of $10 per share common stock.
1-Dec Paid the rent for the current month, $950 .
1-Dec Paid the premium on a one-year insurance policy, $600 .
1-Dec Purchased Equipment for $3600 cash.
5-Dec Purchased office supplies from XYZ Company on account, $300 .
15-Dec Provided services to customers for $7200 cash.
16-Dec Provided service to customers ABC Inc. on account, $5200 .
21-Dec Received $2400 cash from ABC Inc., customer on account.
23-Dec Paid $170 to XYZ company for supplies purchased on account on December 5 .
28-Dec Paid wages for the period December 1 through December 28, $4480 .
30-Dec Declared and paid dividend to stockholders $200 .
Answer:
1-Dec
Cash $10500 (debit)
Common Stock $10500 (credit)
1-Dec
Rent Expense $950 (debit)
Cash $950 (credit)
1-Dec
Prepaid Insurance $600 (debit)
Cash $600 (credit)
1-Dec
Equipment $3600 (debit)
Cash $3600 (credit)
5-Dec
Supplies Expense $300 (debit)
Accounts Payable $300 (credit)
15-Dec
Cash $7200 (debit)
Service Revenue $7200 (credit)
16-Dec
Accounts Receivable $5200 (debit)
Service Revenue $5200 (credit)
21-Dec
Cash $2400 (debit)
Accounts Receivable $2400 (credit)
23-Dec
Accounts Payable $170 (debit)
Cash $170 (credit)
28-Dec
Wages Expense $4480 (debit)
Cash $4480 (credit)
30-Dec
Dividends $200 (debit)
Cash $200 (credit)
Explanation:
It is important to remember that Insurance paid in advance is an Asset hence, premium on a one-year insurance policy was recorded in Prepaid Insurance.
The constraint at Johngrass Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: UE BI CR Selling price per unit $335.18 $228.46 $199.21 Variable cost per unit $259.26 $173.08 $159.61 Minutes on the constraint 7.50 4.30 5.50 Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource?
Answer:
Explanation:
UE BI CR
Selling price per unit $335.18 $228.46 $199.21
Variable cost per unit $259.26 $173.08 $159.61
Contribution margin $75.92 $55.38 $39.60
Per unit (a)
Amount of constraint 7.50 4.30 5.50
resources required to
produced one unit (b)
Contribution margin
per unit of the $10.12 $12.86 $7.20
constraint resources
(a) / (b)
Ranking 2 1 3
The company should be willing to pay up $7.20 per minute to produce more CR
Go to the internet and find a news article published within the last month that discusses changes in demand and supply of particular goods/services, summarize key points and post in the Discussions area. Refer to week 2 content materials and use specific economic vocabulary within your summary, i.e. demand, quantity demanded, determinants of demand, shifts in demand curve, etc. Likewise with supply. Also you should discuss changes in equilibrium quantity and equilibrium price.
Answer: The explanation is provided below
Explanation:
Below article is the summary of the acceleration of inflation in the emerging markets that was published in 2018.
According to the article, inflation in an economy is caused by an adverse supply shock or as a result of the expansionary fiscal policy or the expansionary monetary policy.
In an adverse supply shock, total quantity of basic goods will reduce drastically causing the aggregate demand to rise exponentially and therefore, push prices higher and then gradually lead to inflation.
Also, the continous and eventual implementation of the expansionary fiscal or monetary policy through continous tax cuts or by increasing government spending or reducting interest rates, lead into significant increase in the aggregate demand and as a result, prices rise eventually resulting in hyperinflation in the economy. This will also lead to increase in the real GDP of the economy.
Different tools in the monetary policy framework can be used to control inflation such as government securities,
the cash reserve ratio, interest rates. To reduce recession, government utilize automatic stabilizer in order to boost the economy.
Kevin owns a retail store, and during the current year, he purchased $610,000 worth of inventory. Kevin's beginning inventory was $67,000, and his ending inventory is $77,200. During the year, Kevin withdrew $1,780 in inventory for his personal use. Calculate Kevin's cost of goods sold for the year.?
Answer:
COGS= $598,020
Explanation:
Giving the following information:
Kevin owns a retail store, and during the current year, he purchased $610,000 worth of inventory. Kevin's beginning inventory was $67,000, and his ending inventory is $77,200. During the year, Kevin withdrew $1,780 in inventory for his personal use.
We need to deduct the inventory used for personal use.
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
COGS= 67,000 + 610,000 - 77,200 - 1,780
COGS= $598,020
Firm B, a calendar year, cash basis taxpayer, leases lawn and garden equipment. During December, it received the following cash payments. To what extent does each payment represent current taxable income to Firm B?
a. $522 repayment of a loan from an employee. Firm B loaned $500 to the employee six months ago, and the employee repaid the loan with interest.
b. $600 deposit from a customer who rented mechanical equipment. Firm B must return the entire deposit when the customer returns the undamaged equipment.
c. $10,000 short-term loan from a local bank. Firm B gave the bank a written note to repay the loan in one year at 9 percent interest.
d. $888 prepaid rent from the customer described in part b. The rent is $12 per day for the 74-day period from December 17 through February 28.
Answer:
a. $522 repayment of a loan from an employee. Firm B loaned $500 to the employee six months ago, and the employee repaid the loan with interest.
Firm B should recognize $22 as interest income.b. $600 deposit from a customer who rented mechanical equipment. Firm B must return the entire deposit when the customer returns the undamaged equipment.
The deposit cannot be recognized as income since it is a liability.c. $10,000 short-term loan from a local bank. Firm B gave the bank a written note to repay the loan in one year at 9 percent interest.
Interests ($900) will be recognized when they are actually paid for in 1 year. No accrued interests must be reported on the balance sheet (December 31).d. $888 prepaid rent from the customer described in part b. The rent is $12 per day for the 74-day period from December 17 through February 28.
The $888 will be recognized as revenue during the current year.Explanation:
When a taxpayer is a cash basis taxpayer, it will only report income and expenses that are actually collected or paid for respectively. All accounts receivable or accounts payable are not considered revenues nor expenses.
At December 31, Idaho Company had the following ending account balances:
Retained Earnings $250,000
Preferred Stock ($100 par, 7% cumulative, 10,000 authorized,
5,000 issued and outstanding) 500,000
Treasury Stock 40,000
Paid-In Capital in Excess of Par—Common Stock 625,000
Paid-In Capital in Excess of Par—Preferred Stock 50,000
Common Stock ($5 par value, 500,000 shares authorized,
105,000 issued) 525,000
Required:
Prepare the Stockholders' equity section of the balance sheet in good form with all of the required disclosures.
Answer:
Balance of Stockholder's Equity at December 31 is $1,910,000.
Explanation:
This will appear as follows
Idaho Company
Details $
Stockholder's Equity:
Common Stock 525,000
Preferred Stock 500,000
Additional Paid-In Cap. - Common Stock 625,000
Additional Paid-In Cap. - Preferred Stock 50,000
Treasury Stock (40,000 )
Retained Earnings 250,000
Balance at December 31 1,910,000
The stockholders' equity or the share capital of the company is the amount of capital that is the ownership of investors of shareholders of the company over the assets and debts of the company.
The equity shareholder's are the true owners of the company as they are legible for decision making and voting's.
The stockholders' equity section of the balance sheet includes: common shares, preferred shares, retained earnings, and treasury stock.
The stockholders' equity section of the balance sheet is prepared in the image attached below.
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Portman Industries just paid a dividend of $1.68 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 20.00% over the next year. After the next year, though, Portman's dividend is expected to grow at a constant rate of 4.00% per year The risk-free rate (Rr) is 5.00%, the market risk premium (RPM) is 6.00%, and Portman's beta is 0.90 Term Value Dividends one year from now (Di Horizon value (P1) Intrinsic value of Portman's stock Assuming that the market is in equilibrium, use the information just given to complete the table What is the expected dividend yield for Portman's stock today? a. 6.15% b. 5.12% c. 6.79% d. 6.40% Now let's apply the results of your calculations to the following situation: Portman has 500,000 shares outstanding, and Judy Davis, an investor, holds 7,500 shares at the current price (computed above). Suppose Portman is considering issuing 62,500 new shares at a price of $26.78 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman Industries be diluted on a per-share basis? a. $0.52 per share b. $0.44 per share c. $0.64 per share d. $1.09 per share Thus, Judy's investment will be diluted, and Judy will experience a total:_____.
Answer:
What is the expected dividend yield for Portman's stock today?
d. 6.40%
Suppose Portman is considering issuing 62,500 new shares at a price of $26.78 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman Industries be diluted on a per-share basis?
a. $0.52 per share
Thus, Judy's investment will be diluted, and Judy will experience a total loss of $0.52 x 7,500 = $3,900
Explanation:
cost of equity = Re = risk free rate of return + (Beta × market premium) = 5% + (0.90 x 6%) = 10.4%
dividend in one year = $1.68 x 120% = $2.016
intrinsic stock price = $2.016 / (10.4% - 4%) = $31.50
expected dividend yield = dividend / stock price = $2.016 / $31.50 = 6.4%
Judy's loss per share = ($31.50 - $26.78) x (62,500 / 562,500) = $0.5244
Identify the financial statement (or statements) that each account would appear on. Use I for Income Statement, RE for Statement of Retained Earnings, B for Balance Sheet, and C for Statement of Cash Flows.
1. Accounts Payable
2. Cash
3. Common Stock
4. Accounts Receivable
5. Rent Expense
6. Service Revenue
7. Office Supplies
8. Dividends
9. Land
10. Salaries Expense
Answer: Please refer to Explanation
Explanation:
1. Accounts Payable - Balance Sheet
This is a balance sheet item under Current Liabilities. It shows the firm's or people that the company owes for buying goods on account.
2. Cash - Balance Sheet Item.
It shows the amount of cash that the company has. It is a Current Asset.
3. Common Stock - Balance Sheet Item
This is a balance sheet item that shows the amount of common stock in the company. It is reporters in the Stockholders' Equity section along with Retained Earnings, Treasury Stock and Preferred stock.
4. Accounts Receivable - Balance Sheet item
Reported in the balance sheet under the Current Assets section. It is used to denote those customers who bought goods on account from the company.
5. Rent Expense - Income Statement
This is an expense and as such is treated in the Income statement and subtracted from the revenue.
6. Service Revenue - Income statement
The company gets this when they provide a service and as such it is revenue which will be added to the company's total revenue.
7. Office Supplies - Income Statement
They should be recorded in the income statement if they are used in the period in question as they will be expenses used in the upkeep of the office.
8. Dividends - Statement for Retained Earnings
These will be reflected in the statement for retained earnings as they are subtracted from the Retained Earnings. The Retained Earnings balance reported will then be Net of Dividends.
9. Land - Balance Sheet
Land is a fixed asset and as such will appear on the balance sheet of a company.
10. Salaries Expense - Income Statement item.
As an expense, this goes to the Income statement and will be deducted fro the revenue for the period. Bear in mind that this and all other expenses should only be deducted if they are from the period in question.
Precious Metal Mining has $17 million in sales, its ROE is 13%, and its total assets turnover is 4x. Common equity on the firm’s balance sheet is 55% of its total assets. What is its net income? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent. Do not round intermediate steps.
Answer:
net income = $303,875
Explanation:
total sales $17 million
return on equity (ROE) = 13% = net income / stockholders' equity
asset turnover = 4 = total sales / average total assets
common equity = 55% of assets
first we must determine average total assets:
average total assets = total sales / 4 = $17 million / 4 = $4.25 million
common equity = 55% x total assets = 55% x $4.25 million = $2,337,500
ROE = 13% = net income / $2,337,500
net income = 13% x $2,337,500 = $303,875
At a lump-sum cost of $72000, Sunland Company recently purchased the following items for resale: Item No. of Items Purchased Resale Price Per Unit M 4600 $4.05 N 2300 12.60 O 6600 6.60 The appropriate cost per unit of inventory is: M N O $3.63 $11.28 $5.91 $3.20 $9.95 $5.21 $5.33 $5.33 $5.33 $4.05 $12.60 $6.60
Answer:
M = $3.20
N = $9.95
O = $5.21
I believe it is the second option.
Explanation:
Item No. of Items Purchased Resale Price Per Unit
M 4,600 $4.05
N 2,300 $12.60
O 6,600 $6.60
total resale price:
M = 4,600 x $4.05 = $18,630N = 2,300 x $12.60 = $28,980O = 6,600 x $6.60 = $43,560total = $91,170markup % = ($91,170 - $72,000) / $72,000 = 26.625%
purchase cost per unit:
M = $4.05 / ( 1 + 26.625%) = $3.20N = $12.60 / ( 1 + 26.625%) = $9.95O = $6.60 / ( 1 + 26.625%) = $5.21What are the strengths and weaknesses of the Campbell Soup Company's marketing?
Answer:
For one - their social media presance for a large corporation is really lacking. A company as well known as Campbell should be current in social media, they have not posted to in over a month.
They rely to heavily on the fact that they are the oldest name in the soup business and I feel like they are a little lazy when it comes to their marketing with other compitors on their heels.
Betty contributed land with a $6,000 basis and a $10,000 FMV to the ABC Partnership in Year 1. In Year 2, the land was distributed to Sally, another partner in the partnership. At the time of the distribution, the land had a $12,000 fair market value, and Sally had a $30,000 basis for her partnership interest. What gain is recognized by Betty on the distribution? What is Sally’s basis for the distributed land?
Answer:
a. Gain recognized by Betty on the distribution is $4,000.
b. Sally’s basis for the distributed land is therefore $10,000.
Explanation:
a. What gain is recognized by Betty on the distribution?
When an asset contributed by a partner to a partnership is distributed, the gain or loss to be recognized by the partner that contributed the asset is the difference between the fair market value (FMV) and the basis of the asset. Therefore, we have:
Gain recognized by Betty = FMV of the land - Basis of the land = $10,000 - $6,000 = $4,000
b. What is Sally’s basis for the distributed land?
When an asset of partnership is distributed to another partner in a partnership, the partner's basis for the distributed asset is the FMV of the distributed asset.
Since the FMV of the land contributed by Bettt but now distributed to Sally is $10,000, Sally’s basis for the distributed land is therefore $10,000.
Omaha Beef Co. purchased a delivery truck for $50,000. The residual value at the end of an estimated eight-year service life is expected to be $10,000. The company uses straight-line depreciation for the first six years. In the seventh year, the company now believes the truck will be useful for a total of 10 years (four more years), and the residual value will remain at $10,000. Calculate depreciation expense for the seventh year.
Answer:
2500
Explanation:
First depreciate for 6 years using regular method: (Cost - Salvage Value)/Initial Useful life
(50,000-10,000)/8 = 5000 <- this is annual depreciation
For 6 years, $30,000 accumulated depreciation
Now to calculate change in useful life, you do (Cost - Accumulated Depreciation - Salvage Value)/Remaining Useful life
Remaining Useful life = 10-6 = 4
(50,000-30,000-10,000)/4 = 2500
Your grandparents would like to establish a trust fund that will pay you and your heirs $130,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 2.5 percent, how much must your grandparents deposit today
Answer:
My grandparents deposit $5200000 today.
Explanation:
The annual return earned by trust fund = $2.5 percent
It is given that the trust will pay annually a certain amount for infinite period so annual pay = $130000 per year.
Now we have to calculate the invested or deposited amount by grandparents today.
The present value of future constant annual payment over infinite period = (P/A, i%, n = infinity) or 1 / i%
The amount that should be deposited today :
[tex]= 130000 \times \frac{1}{2.5 \ percent} \\= 5200000[/tex]
Brief Exercise 10-18 Presented below is the partial bond discount amortization schedule for Whispering Winds Corp., which uses the effective-interest method of amortization. Interest PeriodsInterest to Be PaidInterest Expense to Be Recorded Discount Amortization Unamortized Discount Bond Carrying Value Issue date$67,991$1,350,009 1$70,900$74,250$3,35064,6411,353,359 270,90074,4353,53561,1061,356,894 (a) Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1.
Answer:
interest expense 74,250 debit
discount on bonds payable 3,350 credit
cash 70,900 credit
Explanation:
Adjustment to a better display of the data:
Paid Expense Amortization Unarmotized Carrying Value
Issue Date 67,991 1,356,709
1 70,900 74,250 3,350 64,641 1,353,359
2 70,900 74,435 3,535 61,106 1,349,824
To record the payment of interest and discount we will debit the interst expense
and credit the cash given along with the discount on Bonds Payble for the difference
The U.S. Department of Defense needs to buy several million dollars worth of tires for its armored personnel carriers. An American manufacturer can supply the tires for $20 million. A foreign supplier can provide the tires for $15 million. Under these facts:________.
A) GATT requires that the tires be bought from the foreign supplier.B) A U.S. statute requires that the government buy from the U.S. supplier.C) Since the foreign supplier is cheaper, the government must buy from the foreign supplier to save money.D) None of the above is correct.
Answer:
The correct answer to the following question will be Option B.
Explanation:
The United States Department of Defense wants to supply tires valued many millions of dollars for some of its tanks and armored vehicles. An American manufacturer could supply 20 million dollars for the tires. Variables are dependent can supply $15 million again for tires. Beneath such factual information.The other three choices have no relation with the specified scenario. So choice B is the perfect solution to that.
Dave Krug contributed $1,400 cash along with inventory and land to a new partnership. The inventory had a book value of $1,200 and a market value of $2,800. The land had a book value of $1,800 and a market value of $5,800. The partnership also accepted a $3,400 note payable owed by Krug to a creditor. Prepare the partnership's journal entry to record Krug's investment
View transaction list View journal entry worksheet
No Transaction General Journal Debit Credit
Cash
Answer:
Partnership General Journal to record Krug Investment
Cash $1,400 (Debit)
Inventory $2,800 (Debit)
Land $5,800 (Debit)
Notes Payable $3,400 (Credit)
Krug, Capital $5,800 (Credit)
Explanation
i. The land and inventories will be accepted at his market value.
ii. Along with cash, this are assets which enter the partnership so they are debited.
iii. The note payable decreases the Krug capital contribution. It is credited.
iv. Krug capital account balance will be to complete the entry and make debit = credit.
4.Swan Manufacturing is approached by a customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The following per unit data apply for sales to regular customers: Direct materials$1,825 Direct labor900 Variable manufacturing support1,300 Fixed manufacturing support3,000 Total manufacturing costs$7,025.00 Markup (50%)3,512.50 Targeted selling price$ 10,537.50 Swan Manufacturing has excess capacity. Required: a.What is the full cost of the product per unit if the marketing costs is $3,000
Answer:
the full cost of the product per unit if the marketing costs is $3,000 is $7,025.
Explanation:
The cost of the special order will exclude the Fixed manufacturing support as these are common whether the order is accepted or not thus irrelevant. Remember to include the marketing costs as an additional cost.
Calculation of cost of the product :
Direct materials $1,825
Direct labor $900
Variable manufacturing support $1,300
marketing costs is $3,000
Total $7,025
Conclusion :
Thus, the full cost of the product per unit if the marketing costs is $3,000 is $7,025.
Newport Industries is one of the first producers of a unique consumer product. The company has chosen a low-price strategy, hoping this will enable them to quickly attract many customers while discouraging potential competitors from entering the market. Newport's approach to pricing is a classic example of the skimming strategy.A. TrueB. FalseThe ability to integrate computers into the design and manufacture of products has had the greatest impact on production techniques in recent years.A. TrueB. FalseIn the evaluation of the promotion, it's best to establish a promotional strategy that can reach multiple targets rather than developing a separate promotion mix for each target group.A. TrueB. FalseBright Electronics has found it needs to reorganize, including a significant trim of its middle management. This action will likely result in:_______.
a. acquiring additional firms.b. flattening the organization and empowering employees, allowing them to get closer to the customer.c. increasing the size of its traditional departments to handle 24/7 operations.d. centralizing its decision making to better control its total quality management program.Empowerment means:______.a. giving employees the authority to make decisions.b. making certain that employees always defer to management when making decisions.c. hiring employees that do not require training due to the costly nature of this activity.d. asking employees to write the policies which govern their jobs.School Days Centers specialize in helping students with difficulties. With locations around the country, each center consists of a manager and several tutor and counselors. The counselors and tutor have a great deal of flexibility to design programs specifically for individual students. In fact, these first-line employees are considered to be the key people in the organization, and the manager's main function is to assist these employees in matters such as scheduling and securing necessary materials. This type of arrangement suggests that School Days is an inverted organization.A. TrueB. False
Answer:
1. False
2. False
3. d. centralizing its decision making to better control its total quality management program
4. a.
5. True
Explanation:
1. Remember, a skimming strategy does the opposite–where a company chooses the highest possible price not the lowest price for their product when entering the market.
2. Indeed, this has impacted on production techniques in recent years. For example, from labour intensive car factories in the past we now have fully automated car factories that require very few workforce.
3. Remember, centralization results when there are fewer people in the line of authority. Therefore, if Brights Electronics decision to reorganize and significantly trim its middle management would result in centralized decision making and a better control its total quality management program.
4. Note that the promotional mix involves target based marketing, therefore each target market may have unique characteristics. And to attract each target market would involve establishing a promotional strategy that can reach multiple targets rather than developing a separate promotion mix for each target group.
5. An inverted organization is one that has a reversal from the normal line of authority found in most organization. Instead of top to bottom it now bottom to top. This implies that the manager who normally would play major role in deciding strategies to be taken doesn't, but the bottom line employees performs that responsibility. Thus, School Days Center can be rightly called an inverted organization.
, what measures will you put in place to ensure that your bank will not be caught up in the same situation as the collapsed banks?
Answer:
I will review the financial statements of the bank and the stock exchange valuation of the bank's stock.
Explanation:
The most important evidence of the organization's current position are its financial statements which shows that whether or not the organization will survive in the next 12 months. So to avoid any issues with the bank's bankruptcy we can review the financial statements of the bank to think about whether or not to keep the money deposited or not. Furthermore, the stock exchange pricing of the stock is also a key indicator of the financial position of the bank.
So I will review the financial statements of the bank and the stock exchange valuation of the bank's stock.
Brooks Co. purchases debt investments as trading securities at a cost of $61,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $66,000.1. Prepare the December 27 entry for the purchase of debt investments.2. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when Brooks sells a portion of its trading securities (costing $30,500) for $31,750 cash.
Answer:
Dr short-term investment-trading $61,000
Cr Cash $61,000
Dr fair value adjustment-trading $5,000
Cr unrealized gain $5,000
Dr cash $31,750
Cr short-term investment-trading $30,500
Cr realized gain on sale of short-term investment ($31,750-$30,500) $1,250
Explanation:
The cash paid for the purchase of trading securities would be credited with $61,000 while the debit goes to short-term investment-trading
The 31st December year-end fair value adjusting entry is $5,000 ($66,000-$61,000) unrealized gain which would be debited to fair value adjustment-trading securities while the credit goes to unrealized gain-trading securities.
Levine, Inc., has an ROA of 8.6 percent and a payout ratio of 33 percent.
What is its internal growth rate?
Answer:
Explanation:
Workings
Internal growth rate is the highest possible growth attained by a business without obtaining outside funding but with its retained earning.
Given information
ROA = 8.6%
Percentage Payout ratio = 33%
Internal growth rate = (ROA * Retention ratio) / 1 - (ROA * Retention ratio)
Retention ratio is the percentage earning that is no paid out in dividends
To calculate the retention ratio , we use the formula
Retention ratio = (1-percentage pay out ratio)
= 1 - 0.33 = 0.67
Substituting retention ratio for 0.67 in the inter growth rate formula
Therefore
Internal growth rate = (0.086*0.67)/1-(0.086*0.67)
0.05762/(1-0.05762) = 0.05762/0.94238
=0.0611
= 6.11%
At the time a $450 petty cash fund is being replenished, the company's accountant finds vouchers totaling $350 and petty cash of $100. The vouchers include: postage, $90; business lunches, $135; delivery fees, $80; and office supplies, $45. Which of the following is not recorded when recognizing expenditures from the petty cash fund?a. Debit petty cash, $350b. Debit supplies, $45c. Debit postage expense, $90d. Credit petty cash, $350
Answer:
The entry that should not be recorded is debit petty cash, $300 . Option A.
Explanation:
Vouchers recorded for expenses:
Postage
Business lunches
Delivery fees
Office supplies
The journal entry when recognizing expenditures from the petty cash fund should be as under:
Accounts : Credit Debit
Postage $ 90
Business lunches $ 135
Delivery fees $ 80
Office supplies $ 45
Petty Cash $350
The entry that should not be recorded is debit petty cash, $300
