Answer:
Freight Service
Income Statement for the year ending December 31, 2016:
Service Service $135,000
Costs:
Advertising expense 21,200
Depreciation expense 12,000
Insurance expense 3,800
Rent expense 16,000
Salaries & Wages exp 32,000
Supplies expense 6,000
Total Expenses $91,000
Net Income $44,000
Explanation:
In calculating the net income for the year, only revenue and expenses (income statement) items are taken into account. They are also called temporary or period accounts which are closed to the income statement for the period, because they are not permanent accounts. Permanent accounts are taken to the balance sheet and carried over to the next accounting period.
During the most recent month, the following activity was recorded:_______.
a. Eleven thousand six hundred pounds of material were purchased at a cost of $2.90 per pound.
b. The company produced only 1,160 units, using 10,440 pounds of material. (The rest of the material purchased remained in raw materials inventory.)
c. 564 hours of direct labor time were recorded at a total labor cost of $6,768.
Answer:
7000
Explanation:
Jardine Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fes Earned, Rent Expense, Advertising Expense, Utility Expense, Miscellaneous Expense.Journalize the following selected transactions for March 2016 in a two-column journal. Journal entry explanations may be omitted.Mar.1. Paid rent for the month, $2,500.3. Paid advertising expense, $675.5. Paid cash for supplies, $1,250.6. Purchased office equipment on account, $9,500.10. Received cash form customers on account, $16,550.15. Paid creditor on the account, $3,180.27. Paid cash for repairs to office equipment, $540.30. Paid telephons bill for the month, $375.31. Fees earned and billed to customers for the month, $49,770.31. Paid electricity bill for the month, $830
Answer:
Mar.1
Rent Expense $2,500 (debit)
Cash $2,500 (credit)
Mar.3
Advertising Expense $675 (debit)
Cash $675 (credit)
Mar.5
Supplies $1,250 (debit)
Cash $1,250 (credit)
Mar.6
Office equipment $9,500 (debit)
Accounts Payable $9,500 (credit)
Mar.10
Cash $16,550 (debit)
Accounts Receivable $16,550 (credit)
Mar.15
Accounts Payable $3,180 (debit)
Cash $3,180 (credit)
Mar.27
Miscellaneous Expense $540 (debit)
Cash $540 (credit)
Mar.30
Utility Expense $375 (debit)
Cash $375 (credit)
Mar. 31
Accounts Receivable $49,770 (debit)
Fees Earned $49,770 (credit)
Mar. 31
Utility Expense $830 (debit)
Cash $830 (credit)
Explanation:
Telephone Bill and Electricity Bill are both utilities used for operations hence entered under Utility Expense Account.
Repairs to Office Equipment was entered in the Account Title Miscellaneous Expense because of all the Account Titles for this Company, this is the most appropriate.
You own a portfolio that has a total value of $130,000 and a beta of 1.28. You have another $49,000 to invest and you would like the beta of your portfolio to decrease to 1.18. What does the beta of the new investment have to be in order to accomplish this
Answer:βB =0.9147=beta of new investment
Explanation:
Total investment= $130,000 + $49,000= $179,000
Using
Portfolio beta(βp) = wA × βA + wB × βB
Where βp is the portfolio beta coefficient,
wA is the weight of the first investment,
βA is the beta coefficient of first investment;
wB is the weight of the second investment,
βB is the beta coefficient of second investment
but weight of investment is stock value/ total investment x 100
wA= 130,000/ 179,000X 100=72.63%
WB= 49,000/179,000 X100=27.374%
Portfolio beta(βp) = wA × βA + wB × βB
1.18=(72.63%*1.28)+(27.374% XβB )
1.18=0.9296+0.27374βB
βB i=(1.18-0.9298)/0.27374
βB =0.9147=beta of new investment
Which of the following statements is FALSE about opportunity cost? A. Opportunity cost exists only for goods with monetary values. B. Cost is always foregone opportunity. C. When a person buys two items, the concept of opportunity cost applies even though she can afford to buy both items. D. Opportunity cost is the next best alternative.
Answer:
A. Opportunity cost exists only for goods with monetary values.
Explanation:
Fundamentally, these are costs in economics used in analysis of a project, and it can also be used for calculation of cost benefits. It is generally known to measure or do all calculation that deals with the current and also forgone alternatives in any condition but this is mainly in economics where it is mostly used.
It is said that when a person buys two or more items, the concept of opportunity cost applies even though she can afford to buy both items and also known to be the best alternative. Here also, cost is notified as foregone opportunity.
Nate is a partner in a partnership that received $5,000 of interest income this year. Nate's share of the interest is $1,000, and he should report this income on his individual return as:
Answer:
Interest Income
Explanation:
Based on the described scenario it can be said that Nate should report this income on his individual return as Interest Income. This is the amount of interest that the individual has earned in a specific period of time. This is what Nate has made by collecting his share of the interest and should be reported as such since Income from flow-through entities retains its character when reported on individual returns.
ABC Company keeps their accounting records on the cash basis. During the year, ABC received $260,000 from clients, and ABC paid $85,000 to cover operating expenses. Account balances as of the dates given are as follow:
January 1 December 31
Accounts Receivable $24,000 $52,000
Accrued Liabilities $56,000 $40,000
Unearned Service Revenue $35,000 $65,000
Prepaid Expenses $26,000 $28,000
In addition, depreciation expense for the current year is $16,000.
Accrual basis net income is:
a. $181,000
b. $145,000
c. $201,000
d. $165,000
Answer:
a. $181,000
Explanation:
The Income Statement consists of Revenue and Expenses recorded on Accrual Basis. The Accrual Basis of Accounting states that Revenue and Expenses must be recorded as and when they Occur or Incur not when cash is paid or received.
Calculation of Net Income will thus be as follows :
Revenue Received $260,000
Unearned Revenue($65,000-$35,000) $30,000
Total Revenue $290,000
Less Expenses :
Expenses ($85,000+$26,000-$28,000) $83,000
Depreciation $16,000
Net Income $181,000
Bill Casler bought a $2000, 9-month certificate of deposit (CD) that would earn 8% annual simple interest. Three months before the CD was due to mature, Bill needed his CD money, so a friend agreed to lend him money and receive the value of the CD when it matured.
Required:
a. What is the value of the CD when it matures?
b. If their agreement allowed the friend to earn a 10% annual simple interest return on his loan to Bill, how much did Bill receive from his friend
Answer:
a. What is the value of the CD when it matures?
$2,120b. If their agreement allowed the friend to earn a 10% annual simple interest return on his loan to Bill, how much did Bill receive from his friend?
$2,068.29Explanation:
interests earned by the CD = $2,000 x 8% x 9/12 = $120
the value of the CD at maturity = $2,000 (principal) + $120 (interests) = $2,120
if the friend wanted to earn 10% on the loan, that is equivalent to 10% x 3/12 = 2.5% for the 3 months
the amount of money received by Bill from his friend = CD's maturity value / (1 + expected interest) = $2,120 / (1 + 2.5%) = $2,120 / 1.025 = $2,068.29
Engineering Wonders reports net income of $63 million. Included in that number is building depreciation expense of $5.3 million and a gain on the sale of land of $1.3 million. Records reveal decreases in accounts receivable, accounts payable, and inventory of $2.3 million, $3.3 million, and $4.3 million, respectively. What are Engineering Wonders' net cash flows from operating activities? (List cash outflows and any decrease in cash as negative amounts. Enter your answer in millions. (i.e., $10,000,000 should be entered as 10).)
Answer:
70.3
Explanation:
The calculation of net cash flows from operating activities is shown below:-
Engineering Wonders reports
Net cash flow from operating activities
Particulars Amount
Net income 63
Adjustment to reconcile net
income to net cash
flow from operating activities
Add: Depreciation expense 5.3
Less: Gain on sale of land 1.3
Add: Decrease in Accounts
receivable 2.3
Less: Decrease in accounts
payable 3.3
Add: Decrease in inventory 4.3
Net cash flow from operating
activities 70.3
Therefore the net cash flow from operating activities is 70.3.
Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $28,000 per month for 25 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $380,000. Third, after he passes on at the end of the 25 years of withdrawals, he would like to leave an inheritance of $1,700,000 to his nephew Frodo. He can afford to save $3,300 per month for the next 10 years. If he can earn an EAR of 10 percent before he retires and an EAR of 7 percent after he retires, how much will he have to save each month in years 11 through 30?
Answer:
He would have to save each month in years 11 through 30 the amount of $2,279.60
Explanation:
Because the cash flows occur monthly, we must get the effective monthly rate. One way to do this is to find the APR based on monthly compounding, and then divide by 12. So, the pre-retirement APR is:
EAR = .11 = [1 + (APR/12)] 12- 1;
APR = 12[(1.11) 1/12- 1] = .1048 or 10.48%
And the post-retirement APR is:
EAR = .08 = [1 + (APR/12)] 12 -1
APR = 12[(1.08) 1/12 -1] = .0772 or 7.72%
First, we will calculate how much he needs at retirement. The amount needed at retirement is the PV of the monthly spending plus the PV of the inheritance. The PV of these two cash flows is:
PVA = $24500{1 -[1/(1 + .0772/12) 12(25) ]}/(.0772/12) = $3,252,096.21
PV = $1525,000/[1 + (.0772/12)] 300 = $222,723.58
So, at retirement, he needs:
$3,252,096.21+ $222,723.58= $3474819.79
He will be saving $2,600 per month for the next 10 years until he purchases the cabin. The value of his savings after 10 years will be:
FVA = $2,600[{[1 + (.1048/12)] 12(10) -1}/(.1048/12)] = $547,487.10
After he purchases the cabin, the amount he will have left is:
$547,487.10 -345,000 = $202487.10
He still has 20 years until retirement. When he is ready to retire, this amount will have grown to:
FV = $202487.10[1 + (.1048/12)] 12(20) = $1632023.27
So, when he is ready to retire, based on his current savings, he will be short:
$3474819.79-1632023.27 = $1842796.52
This amount is the FV of the monthly savings he must make between years 10 and 30. So, finding the annuity payment using the FVA equation, we find his monthly savings will need to be:
FVA = $1842796.52 = C [{[ 1 + (.1048/12)] 12(20) -1}/(.1048/12)]
C = $2,279.60
He would have to save each month in years 11 through 30 the amount of $2,279.60
Mila is helping to set performance targets for her company, Urban Supply. The target of increasing the company's online customer satisfaction rate by 1% in the next quarter is an example of a performance target focused on the customer perspective of the balance scorecard.
a. true
b. false
Answer: True
Explanation:
The balanced scorecard perspective implies that the company has to satisfy their customer through the provision of quality products and services.
From the question, the target of increasing customers satisfaction is a good example of a performance target that is focused on customer's perspective of the balance scorecard. This means that the statement is true.
Coronado Company's record of transactions concerning part X for the month of April was as follows.
Purchases Sales
April 1 (balance on hand) 420 0 $7.30 April 5 620
4 720 7.45 12 520
11 620 7.74 27 1,440
26 520 8.18
30 520 8.47
Compute the inventory at April 30 on each of the following bases. Assume that perpetual inventory records are kept in units only. (1) First-in, first-out (FIFO). (2) Last-in, first-out (LIFO). (3) Average-cost. (Round final answers to 0 decimal places, e.g. 6,548.)
Answer:
1.FIFO 5,631.4
2.LIFO 7,685
3.8.8542 per unit
Explanation:
Coronado Company's
1)First-in, first-out (FIFO)
(520×8.47+ 150×8.18)
= 4,404.4+1,227
= 5,631.4
2)Last-in, first-out (LIFO)
(420×7.30+ 620×7.45)
= 3,066+4,619
= 7,685
3.Cost of goods available for sale
Date Transactions Units ×Rate =Total
Apr-01 Beginning inventory 420 ×$7.30 =$3,066
Apr-04 Purchase 720×$7.45 =$5,363
11-Apr Purchase 620 ×$7.74 =$4,798.8
18-Apr Purchase 520×$7.81 =$4,061.2
26-Apr Purchase 920 ×$8.18= $7,525.6
30-Apr Purchase 520 ×$8.47 $4,404.4
Total: 3,300 $29,219
720+620+520+920+520=3,300
$3,066+5,363+4,798.8+4,061.2+7,525.6+4,404.4 =29,219
Average cost per unit =
Total cost of goods available for sale / Units available for sale
Hence:
$29,219 / 3,300
=8.8542 per unit
Identify each of the following types of businesses as either job-order or process costing. a. Hospital services b. Custom cabinet making c. Toy manufacturing d. Soft-drink bottling e. Airplane manufacturing (e.g., 767s) f. Personal computer assembly g. Furniture making (e.g., computer desks sold at discount stores) h. Custom furniture making i. Dental services j. Paper manufacturing k. Nut and bolt manufacturing l. Auto repair m. Architectural services n. Landscape design services o. Flashlight manufacturing
Answer:
The answer to the question above is given below:
Explanation:
First, for a better understanding of the type of business to be categorized as job-order or process costing, explanation would be made on what job-order and process costing are.
Job-order costing is used when items produced differ such that each carries a significant cost. Job-order costing systems track costs by job and are used by companies to calculate costs of unique products been produced.
Process costing assigns product costs to departments and is used by companies that produce similar products this ensures a continuous style of production employed. No difference in the products been produced in process costing.
Going by the definition above one can categorize the businesses:
a. Hospital services are a Job-order costing type of business
b. Custom cabinet making is a Job-order costing type of business
c. Toy manufacturing is a Process costing type of business
d. Soft-drink bottling is a Process costing type of business
e. Airplane manufacturing (e.g., 767s) is a Process costing type of business because they produce similar products (767s) that translate to a consistent process. But if the model of the airplane is not specified then it is a Job-order costing type of business.
f. Personal computer assembly is a Job-order costing type of business
g. Furniture making (e.g., computer desks sold at discount stores)
h. Custom furniture making is a Job-order costing type of business
i. Dental services are a Job-order costing type of business
j. Paper manufacturing is a Process costing type of business
k. Nut and bolt manufacturing is a Process costing type of business
l. Auto repair is a Job-order costing type of business
m. Architectural services are a Job-order costing type of business
n. Landscape design services are a Job-order costing type of business
o. Flashlight manufacturing is a Process costing type of business
The following inventory balances relate to Lequin Manufacturing Corporation at the beginning and end of the year: Beginning Ending Raw materials $14,000 $19,000 Work in process $31,000 $7,000 Finished goods $25,000 $23,000 Lequin's total manufacturing cost was $543,000. What was Lequin's cost of goods sold?
Answer:
Cost of goods sold = $564,000
Explanation:
The cost of goods sold would be determined as follows:
$
Opening inventory
Raw material = 14,000
Work in progress 31,000
Manufacturing cost 543,000
588,000
Add open inventory of Finished goods 25,000
Less Closing inventory
raw material ( 19,000)
Work in progress ( 7,000)
Total cost of goods available for sale 587,000
Less closing inventory of finished goods 23,000
Cost of goods sold 564,000
Note that the opening inventory of raw material and work in progress would increase the manufacturing cost while their respective closing inventory represent cost incurred on production during the period on inventories not yet completed
The following partially completed process cost summary describes the July production activities of Ashad Company. Its production output is sent to its warehouse for shipping. All direct materials are added to products when processing begins. Beginning work in process inventory is 20% complete with respect to conversion.Equivalent Units of ProductionDirect MaterialsConversion Units transferred out43,000 43,000 Units of ending work in process 4,700 2,820 Equivalent units of production47,700 45,820 Costs per EUPDirect MaterialsConversion Costs of beginning work in process$ 28,450 $3,270 Costs incurred this period 667,970 271,650 Total costs$696,420 $274,920 Units in beginning work in process (all completed during July) 4,200 Units started this period 43,500 Units completed and transferred out 43,000 Units in ending work in process 4,700Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)
Answer:
Materials costs =$ 14.6 Per EUP
Conversion Costs= $6 Per EUP
Explanation:
Ashad Company
Process Cost Summary
Weighted Average Method
Equivalent Units of Production
Direct Materials Conversion
Units transferred out 43,000 43,000
Units of ending work in process 4,700 2,820
Equivalent units of production 47,700 45,820
Costs per EUP
Direct Materials Conversion
Costs of beginning work in process$ 28,450 $3,270
Costs incurred this period 667,970 271,650
Total costs $696,420 $274,920
Equivalent units of production 47,700 45,820
Cost Per Equivalent Unit $696,420/ 47,700 $274,920/ 45,820
$ 14.6 Per EUP $6 Per EUP
Quantum Logistics. Inc., a wholesale distributor, is considering the construction of a new warehouse to serve the southeastern geographic region near the Alabama-Georgia border. There are three cities being considered. After site visits and a budget analysis, the expected income and costs associated with locating in each of the cities have been determined. The life of the warehouse is expected to be 12 years and MARR is 15 percent/year. What is the future worth of each site based on future worth ranking? Which city should be recommended?
Answer:
Anniston City should be recommended as it has higher future value.
Explanation:
Using the formula:
Future value of annuity = C * { [(1+r)^n - 1] / r } C where C= initial cost, r= interest rate (MARR=15%), n= 12)
- Langrange City
= $1,260,000 * { [(1+0.15)^12 - 1] / 0.15 } = $6,741,308.466
- Auburn City
$1,000,000 * { [(1+0.15)^12 - 1] / 0.15 } = $5,350,243.439
- Anniston City
$1,620,000 * { [(1+0.15)^12 - 1] / 0.15 } = $8,667,398.504
A company had the following partial list of account balances at year-end: Sales Returns and Allowances $ 1,000 Accounts Receivable 38,000 Sales Discounts 2,100 Sales Revenue 95,000 Allowance for Doubtful Accounts 1,200 How much is net sales revenue
Answer:
$91,900
Explanation:
The computation of net sales revenue is shown below:-
Here, for reaching the net sales revenue we add the sales revenue and deduct the sales return and allowances with sales discounts
Net sales revenue = Sales Revenue - Sales Returns and Allowances - Sales Discounts
= $95,000 - $1,000 - $2,100
= $91,900
Therefore we have applied the above formula.
Time Remaining 39 minutes 48 seconds00:39:48 eBookItem 1Item 1 Time Remaining 39 minutes 48 seconds00:39:48 A private, not-for-profit hospital received contributions of $50,000 from donors on June 15, 20X9. The donors stipulated that their contributions be used to purchase equipment for the hospital. As of June 30, 20X9, the end of the hospital's fiscal year, $12,000 of the contributions had been spent on equipment acquisitions. In the hospital's general fund, what account would be credited to recognize the release of the restrictions on the temporarily restricted contributions used to acquire equipment
Answer: Net Assets Released from Equipment Acquisition Restriction.
Explanation:
When the stipulations by a donor have been satisfied, the assets involved can be removed from being restricted to now being unrestricted. The account credited to recognize this is known as the Net assets released from *asset name* acquisition restriction.
In the above case, the company purchased some equipment with the money they were donated which means that the equipment had satisfied the stipulation for which they were donated funds for. The Net Assets Released from Equipment Acquisition Restriction thus needs to be credited.
BJT Corporation is owned 40 percent by Bill, 30 percent by Jack, and 30 percent by the Trumpet Partnership. Bill and Jack are father and son. Jack has a 10 percent interest in Trumpet Partnership. What is Jack’s total direct and constructive ownership of BJT Corporation under Section 267?
Answer:
33%
Explanation:
By virtue of been having 10% interest in Trumpet Partnership, Jack has a 10% share out of 30 percent owned by Trumpet Partnership (0.10 * 30=3%).
Additionally, his own 30 percent is still pay of his direct and constructive ownership of BJT Corporation, thus making his total direct stand at 33%.
Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 25 million bottles of wine were sold every month at a price of $6 per bottle. After the tax, 20 million bottles of wine are sold every month; consumers pay $8 per bottle (including the tax), and producers receive $5 per bottle. The amount of the tax on a bottle of wine is_____________ $ per bottle. Of this amount, the burden that falls on consumers is_________ $ per bottle, and the burden that falls on producers is $___________ per bottle.?
Answer:
Explanation:
From the question, we are informed that before the tax, 25 million wine bottles were sold at price of $6 per bottle and that after the tax, 20 million bottles of wine are sold every month and the consumers pay $8 per bottle which include the tax and producers receive $5 per bottle.
The amount of tax on wine will be the difference between the price consumers pay after the tax and the price producers receive. This will be:
= $8 - $5
= $3 per bottle
The tax burden that falls on the consumers will be difference between price paid after tax and the price which is paid before the tax.
= $8 - $6
= $2 per bottle
The tax burden on the producers will be difference between price received before the tax and price received after the tax.
= $6 - $5
= $1 per bottle
Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: January February March $ 3 Material purchases 14,870 11,690 12,760 Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $7,200. The budgeted cash payments for materials in January are
A. $13,580.
B. $13,815
C. $9,980
D. $7,200.
E. $19,960.
Answer:
Total= $14,635
Explanation:
Giving the following information:
Cost of materials:
January= 14,870
February= 11,690
March= 12,760
Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase.
The December Accounts Payable balance is $7,200.
To calculate the cash disbursement for January, we need to use the following structure:
Cash collection:
Accounts Payable= 7,200
Cash From January= (14,870*0.5)= 7,435
Total= $14,635
Samantha, who is single and has MAGI of $28,000, was recently employed by an accounting firm. During the year, she spends $2,500 for a CPA exam review course and begins working on a law degree in night school. Her law school expenses were $4,200 for tuition and $450 for books (which are not a requirement for enrollment in the course).
Assuming no reimbursement, how much can Samantha deduct for the:
a. CPA exam review course? $X
b. Law school expenses? $X
Answer:
a. CPA exam review course $0
b. Law school expenses $4,000
Explanation:
1a. CPA exam review course will be $0 because the IRS has disallowed any costs that will lead to qualifying for a different trade .
1b. The Law School expenses will be $4,000 . Based on section 222, Samantha is been limited to $4,000 of the tuition paid.
Therefore the balance of $650 is excess tuition $200 + $450 books which will not qualify under the regular education expense deduction due to the negative position of the IRS on law school costs.
The classified balance sheet for a company reported current assets of $1,754,244, total liabilities of $817,540, common stock of $1,180,000, and retained earnings of $148,260. The current ratio was 2.7. What is the total amount of noncurrent assets?
Answer:
$391,556
Explanation:
The values given are:
Total liabilities= $817,540
Common stock= $1,180,000
Retained earnings= $148,260
Current assets= $1,754,244
Therefore the non-current assets can be calculated as follows
Total liabilities+Common stock+Retained earnings-Current assets
$817,540+$1,180,000+$148,260-$1,754,244
= $2,145,800-$1,754,244
= $391,556
Hence the total amount of non-current assets is $391,556
Entries for Stock Dividends Senior Life Co. is an HMO for businesses in the Portland area. The following account balances appear on the balance sheet of Senior Life Co.: Common stock (250,000 shares authorized; 6,000 shares issued), $75 par, $450,000; Paid-In Capital in excess of par— common stock, $48,000; and Retained earnings, $4,500,000. The board of directors declared a 2% stock dividend when the market price of the stock was $95 a share. Senior Life Co. reported no income or loss for the current year. If an amount box does not require an entry, leave it_______.A1. Journalize the entry to record the dedaration of the dividend, capitalizing an amount equal to market value. Stock Dividends 10,440 Stock Dividends Distributable 7,500 Paid In Capital in Excess of Par Common Stock 3,120 A2. Journalize the entry to record the issuance of the stock certificates. ) Stock Dividends 7,500 Common Stock 7,500.B. Determine the following amounts before the stock dividend was dedared: (1) total paid-in capital, (2) total and retained earning (3) total stockholders' equity. Total paid-in capital 828,000Total retained earnings 6,000,000 Total stockholders' equity 6,828,000C. Determine the following amounts after the stock dividend was dedlared and closing entries were recorded at the end of the year:Total paid-in capitalTotal retained earningsTotal stockholders' equity
Answer:
common stock = 6,000 at $75 par = $450,000
additional paid in capital = $48,000
retained earnings = $4,500,000
market price per stock $95
since the stock dividend is 2% (= 6,000 x 2% = , then we must use the market price to calculate it:
A1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value.
Dr Retained earnings 11,400
Cr Common stock dividend distributable 9,000
Cr Additional paid in capital 2,400
A2. Journalize the entry to record the issuance of the stock certificates.
Dr Common stock dividend distributable 9,000
Cr Common stock 9,000
B. Determine the following amounts before the stock dividend was declared:
(1) total paid-in capital = $48,000
(2) total retained earning = $4,500,000
(3) total stockholders' equity = $4,998,000
C. Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of the year:
(1) total paid-in capital = $50,400
(2) total retained earning = $4,488,600
(3) total stockholders' equity = $4,998,000
Each of the following is a method by which to allocate joint costs except: Group of answer choices a. Chemical analysis. b. Relative sales value. c. Relative weight, volume, or linear measure. d. Relative marketing costs. g
Answer:
The correct answer is the option A: Chemical analysis.
Explanation:
To begin with, a chemical analysis consists in the study of chemical composition and structure of substances and it refers to the field of chemistry as its name indicates so therefore that it does not implicate the allocation of joint costs as all of the other methods. Moreover, this type of analysis is considered to be the principal basis technique by which every chemical information is obtanied and there are also two main brances in it, the qualitative and quantitative analysis.
Strait Co. manufactures office furniture. During the most productive month of the year, 3,300 desks were manufactured at a total cost of $82,000. In the month of lowest production, the company made 1,130 desks at a cost of $59,000. Using the high-low method of cost estimation, total fixed costs are
Answer:
Using the high-low method of cost estimation, total fixed costs are $47,020
Explanation:
Cost at highest level of activity = $82,000.00
Cost at Lowest level of activity = $59,000.00
Highest level of activity = 3,300
Lowest Level of activity = 1,130
Variable cost per unit = $(82,000 - 59,000) ÷ (3,300 -1,130)
Variable cost per unit = $23,000 ÷ 2,170
Variable cost per unit = $10.60
Fixed Costs = $82,000 - (3,300 × 10.60)
Fixed Costs = $47,020
Sarah has a toothache. She believes it may be due to her not having regular dental checkups in the past. She now wants to find a dentist, but does not have one that she has used in the past. Because dentistry has __________ properties, Sarah plans to ask her friends for a recommendation for a dentist they like to be sure that she finds a good one.
Answer:
Credence properties
Explanation:
Dentistry has a Credence property because it is a Service provided by medical specialized professionals. medical diagnoses and legal services have credence properties, or characteristics. A consumer may find a service with Credence property impossible to evaluate even after purchase and consumption. To reduce this uncertainty, service consumer like Sarah turns to personal sources of information like her friends during the purchase decision process
What percent of the educated workforce in the world can be found outside of the US?
O 75%
O 25%
O 50%
15%
Answer:
A. 75%
Explanation:
A workforce is a term used to describe the number of able people working for government, establishments, institutions and private companies etc in a society. Thus, educated workforce implies the number of educated able people that have the ability to work with respect to their academic discipline.
US has a high number of workforce and compensating packages for them. But when compared to other countries, over 75% of educated workforce exists outside of the United States of America.
Richard Palm is the accounting clerk of Olive Limited. He uses the source documents such as purchase orders, sales invoices and suppliers’ invoices to prepare journal vouchers for general ledger entries. Each day he posts the journal vouchers to the general ledger and the related subsidiary ledgers. At the end of each month, he reconciles the subsidiary accounts to their control accounts in the general ledger to ensure they balance. Discuss the internal control weaknesses and risks associated with the above process. (10 marks 300 words)
Answer:
Olive Limited
1) Internal Control Weaknesses: Richard Palm is just an accounting clerk and obviously there is a lack of qualification for him to single-handedly complete his work without supervision. He handles the whole processes of identifying source documents, the accounts involved, and their correctness, preparing the journal, posting to the ledgers, and leger accounts reconciliation. This shows that there is no segregation of duties. There is no personnel that authorizes or reviews Richard's accounting processes. He engages in self-review (reconciliation) of his work.
2) The risks associated with Richard's process are:
a) Richard lacks the required professional experience and qualification to handle most of his work alone. Thus, the risk of misstatement of financial statement elements is high.
b) Since Richard works without appropriate supervision, there is an increased risk of fraudulent behaviors. Richard could post fictitious invoices to the accounting records.
c) Without separation of duties, a single individual handles a transaction from the beginning to the end. This does not augur well for internal controls, which can be easily compromised.
d) Designated managers should be required to authorize certain types of transactions to add an extra layer of responsibility to accounting records. This also proves that transactions have been seen, analyzed, and approved by appropriate authorities. The requirement that large payments and expenses be approved by specific managers stop unscrupulous employees from making large fraudulent transactions with company funds, for example.
e) Richard also self-reviews his work. Thus, it may be difficult for him to identify errors of misstatement. An invoice could be posted more than once in the accounting records without being identified.
Explanation:
Internal controls are business processes that provide reasonable assurance so that several key business objectives are met, processes are operating efficiently, the financial reporting is reliable, and that the business is in compliance with applicable regulations and internal procedures.
Weaknesses occur when there is an absence of internal controls or the controls are not being operated as specified or the control objectives are not being achieved. When any of these are prevalent, risks arise. The risks may lead to intentional and unintentional financial statement misstatements or fraudulent practices.
Nickolas Imports recorded a restructuring charge of $21.6 million during fiscal 2014 related entirely to the closing of its California based operations in San Diego and in Tijuana, Mexico. The company's financial statement footnotes indicated that expected employee separation payments amounted to $16.8 million and that fixed asset write-downs accounted for the remainder. Nickolas had never before incurred restructuring charges. At the end of the year, the company's balance sheet included a restructuring accrual liability of $3,600,000. Calculate the cash flow effect of Nickolas’s restructuring during fiscal 2014.
Answer: $13,200,000
Explanation:
Nickolas Import recorded a restructuring charge of $21.6 million.
Of this amount, $16.8 million were for employee separation fees.
When calculating the cash flow effect of the restructuring on Nickolas Imports, the $16.8 million is the relevant account. This is because the Asset write downs that make up the rest of the $21.6 million are not cash items neither can they be accrued like normal expenses or Liabilities so they will not be recorded as an Accrual Liability.
The Net Cashflow effect of Nickolas Imports for the year therefore is,
= 16.8 - 3.6
= $13.2 million.
What this means is that with a restructuring accrual liability of $3,600,000 at the end of the year from an initial Balance of $16.8 million, it means that Nickolas Imports must have settled $13,200,000 during the year to be left with that balance of $3,600,000.
Jaune Magazine (JM) must decide whether or not to publish a tell-all story about a celebrity. If the story ends up having major impact, JM will realize substantial profits from additional magazine sales, subscriptions, and advertising revenues. However, if JM publishes the story, JM will face a lawsuit; if it loses the suit, the penalties could be substantial. The tree below summarizes JM's decision.
The EMV of publishing the story is $10,000. Based on this EMV, JM should publish the story. If the publisher chooses not to publish the story, which of the following best describes the publisher's attitude towards this decision?
A) Risk averse.
B) Risk neutral.
C) Risk seeking.
D) Risqué.
Answer:
The correct option is A, risk averse
Explanation:
Risk aversion is a situation where a person undertaking a business or an investor tries as much as possible to limit exposure to losses by taking drastic steps to ensure the losses do not materialize.
The publisher in this case is conscious of facing the lawsuit that could result from publishing story and has taken a precautionary measure by not even venturing into the publishing ,let alone a lawsuit with substantial amount in damages rears its ugly head.
A risk seeking investor would go ahead with the publishing since success could bring a juicy income
