Answer:
Identifies the principles of acknowledgment, calculation, and transparency used in the development and application of accounting standards, as well as the concrete concepts needed to achieve the goal. These definitions define the current reporting landscape and include expectations, values, and a cost limit.
ABC has beginning inventory for the year of $12,000. During the year, ABC purchases inventory for $150,000 and ends the year with $20,000 of inventory. ABC will report cost of goods sold equal to:
Explanation:
The Answer equal 142000
Cost of goods sold (COGS) refers to the direct cost of producing goods sold by a company. The costs of goods sold by ABC Company is $142,000.
What do you mean by Costs of goods sold?The cost of goods sold is the total amount paid by your business as costs directly related to the sale of products.
Depending on the nature of your business, this may include products purchased for sale, raw materials, packaging, and specific work related to good production or sales.
As per the information provided,
Beginning inventory is $12,000
Ending Inventory is $20,000
Purchases are $150,000
[tex]\rm\,Costs \;of \;goods \; sold = \;Beginning \; Inventory + Purchases \; + Direct \; expenses \;- Ending \; Inventory\\\\\rm\,Costs \;of \;goods \; sold = \$12,000 + \$150,000 - \$20,000\\\\\rm\,Costs \;of \;goods \; sold = \$142,000[/tex]
Hence, the costs of goods sold by ABC Company is $142,000.
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g On January 1, Garcia Supply leased a truck for a three-year period, at which time possession of the truck will revert back to the lessor. Annual lease payments are $10,500 due on December 31 of each year, calculated by the lessor using a 4% discount rate. Negotiations led to Garcia guaranteeing a $27,400 residual value at the end of the lease term. Garcia estimates that the residual value after four years will be $26,300. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What is the amount to be added to the right-of-use asset and lease liability under the residual value guarantee
Answer:
The amount to be added to the right-of-use asset and lease liability under the residual value guarantee is $904.12.
Explanation:
Guaranteed residual value = $27,400
Estimated residual value = $26,300
Difference in residual value = Guaranteed residual value - Estimated residual value = $27,400 - $26,300 = $1,100
Present value of difference in residual value = Difference in residual value / (100% + Discount rate)^Number of years = $1,100 / (100% + 4%)^5 = $904.12
Therefore, the amount to be added to the right-of-use asset and lease liability under the residual value guarantee is $904.12 which is the present value of difference in residual value.
Write an essay about the importance of clearances when applying for a job. need ASAP
Answer:
Background investigations are an essential aspect of the vetting process for both employees and potential employees of the US Federal, State, and Local governments and private sector companies that provide support, services and products to these government entities. These investigations are conducted to determine the suitability of the subject of the investigation to hold a security clearance for a position impacting our national security. Many of the individuals hired by the aforementioned organizations are placed in positions which require a security clearance. Based on the type of clearance, the person has access to information that is crucial to implementation of the missions of US government entities and private.
II. INSIDER THREATS
The purpose of US Federal Government background investigations is to determine if individuals are deemed acceptable for employment within the US government, and more importantly, prevent individuals of malafied intent from gaining access to a position impacting the US national security. Properly executed background investigations can greatly diminish the possibility of a potential insider threat obtaining access to classified information, which can cause the US great harm and the US government great embarrassment.
Prior to the founding of the United States of America, the insider threat has hindered the security of a nation. It is written that the outward destruction of a country results from the inward turmoil of its government. Numerous historical accounts of internal conflicts endangering the welfare of countries are present in the history books of most countries. In most instances, the conflict occurred within the governmental structure of the nation. Regarding internal threats, the US government is not immune from this imminent danger. Constantly, there are numerous threat to US government operations that are undetected. Although the US government Most recently, the breach of security of former National Security Agency (NSA) employee, Edward Snowden, and the ongoing saga of events surrounding his dubious departure from his home country have permeated the media of countries around the world. The Snowden case is “the latest.
Explanation:
Can you give me brainiest thanks
The Payroll records of Oregon Mist contained the following information for the month of November: Salaries $ 350,000 FICA Taxes (including Social Security and Medicare) 21,700 Federal Unemployment Taxes 3,500 State Unemployment Taxes 1,750 The journal entry to record the monthly Payroll Tax Expense would include a: A. debit to Payroll Tax Expense of $25,200. B. credit to FICA Taxes Payable of $43,400. C. debit to Payroll Tax Expense of $48,650. D. debit to Payroll Tax Expense of $26,950.
Answer: D. debit to Payroll Tax Expense of $26,950.
Explanation:
We should note that the payroll tax expense will consist of the federal unemployment tax, the state unemployment tax and the FICA taxes. This will then be:
= 3500 + 1750 + 21700
= 26950
Therefore, the journal entry to record the monthly Payroll Tax Expense would include debit to Payroll Tax Expense of $26,950.
Ergo industries, which manufactures automotive parts, had taken carious measures to improve the quality of the products. The product-line mangers at the company had the authority to stop production if they found the components to be defective without the approval of the senior management in the company and to take measures to resolve the issue. This authority motivated the mangers to perform their jobs better. According to hackman and oldham work design model, which of the following core job characteristics is influencing the performance of managers in the above scenario?
a. Skill variety
b. Autonomy
c. Task identity
d. Task significance
Answer:
b. Autonomy
Explanation:
Since in the question it is mentioned that the industries would take measures so that the products quality could be improved. The product line managers has the authority to stop the production in the case when there is a defective components without taking the approval of the senior management
So here the characteristics that impact the performance of the manager is autonomy as it means the freedom of an employee to finish the work so that they are able to do better work
Match each item with its appropriate classification.
1. Buildings Property
2. Copyright
3. Supplies
4. Unearned service revenue
5. Prepaid insurance
6. Common stock
7. Rent payable
8. Accounts receivable
9. Allowance for doubtful accounts
10. Bonds payable Long-term liabilities
a. Current assets
b. Property, plant, and equipment
c. Intangible assets
d. Current liabilities
e. Long-term liabilities
f. Contributed capital
g. Retained earnings
Answer:
Matching items with their appropriate classifications:
No. Items Classifications
1. Buildings Property Property, plant, and equipment
2. Copyright Intangible assets
3. Supplies Current assets
4. Unearned service revenue Current liabilities
5. Prepaid insurance Current assets
6. Common stock Contributed capital
7. Rent payable Current liabilities
8. Accounts receivable Current assets
9. Allowance for doubtful accounts Current assets (contra)
10. Bonds payable Long-term liabilities Long-term liabilities
Explanation:
Appropriate Classifications of balance sheet items:
a. Current assets = short-term assets, usually of 12-months duration.
b. Property, plant, and equipment = long-term or non-current assets, of more than 12-months duration, used for producing additional resources.
c. Intangible assets = non-current assets, that are not tangible like property, plant, and equipment.
d. Current liabilities = short-term liabilities, usually of 12-months duration.
e. Long-term liabilities = non-current liabilities, of more than 12-months duration.
f. Contributed capital = funds provided by the equity owners
g. Retained earnings = funds provided from internal sources, incomes not paid out as dividends or redistributed to stockholders.
Which of the following is a disadvantage of the sole proprietorship form of ownership?
Question 2 options:
A)
Split responsibility
B)
Unlimited liability
C)
Limited liability
D)
Control over the business
its not unlimited liability that's what I put and I got it wrong
Answer:
D.......... .................... .. . . ...... ..........
Ken was the only accountant for a small-town land devel opment company. He was terminated when the company fell on hard times. One year later, when the owner of the company was reviewing the payments received from a landowner for development cost, he discovered that the landowner was three payments behind for a total of $60,000. He contacted the landowner who showed him the check stubs and the canceled checks. After further re search, hefound that the account in which the checks were deposited belonged to Ken, his former accountant. 1. What type of fraud did Ken commit
Answer:
Asset misappropriation, especially stealing assets
Explanation:
Since in the question it is mentioned that owner discovered that there was three payments of total $60,000 due to this he contacted to the landowner where he showed the checks stubs and canceled checks after that he found that the account where the checks were deposited is of Ken so the fraud done by him is asset misappropriation where Ken steal the receipts of the company for his personal use
The type of legal system and the level of corruption in a country have been found to be: significant determinants of the rate of economic growth in a country. important topics for political discussion, but not economic explanations of growth. unrelated to the rate of economic growth in a country. important variables explaining the Golden Rule level of capital
Answer:
significant determinants of the rate of economic growth in a country.
Explanation:
A legal system can be defined as the system of principles, regulations and rules established by legislature, that is adopted in a community, society or country to regulate the actions of its citizens, members or employees.
Thus, it is a tool used by the judiciary, lawyers, individuals, organizations, and even government to ensure everybody is well behaved, non-criminal and civil in their actions. Therefore, a legal system creates the foundation for ethical behavior.
In circumstances where there are aberration, the legal system enforces an appropriate law as a punishment and penalty for wrongdoings or misdeeds.
Hence, the type of legal system and the level of corruption in a country have been found to be significant determinants of the rate of economic growth in a country because if the level of corruption is high and the legal system isn't functional by appropriately sentencing corrupt individuals or officials in a country, the economy of such a country would be impacted negatively.
Southern Corporation has a capital structure of 40% debt and 60% common equity. This capital structure is expected not to change. The firm's tax rate is 34%. The firm can issue the following securities to finance capital investments: Debt: Capital can be raised through bank loans at a pretax cost of 10.0%. Also, bonds can be issued at a pretax cost of 7.0%. Common Stock: Retained earnings will be available for investment. In addition, new common stock can be issued at the market price of $90. Flotation costs will be $4 per share. The recent common stock dividend was $4.79. Dividends are expected to grow at 8% in the future.
Required:
What is the cost of capital if the firm uses bank loans and retained earnings?
Answer:
The cost of capital is 10.89%.
Explanation:
Cost of retained earnings = ((Dividend * (100% + Dividend growth rate)) / Stock price) + Growth rate = ((4.79 * (100% + 8%)) / 90) + 8% = 13.748%
Cost of common stock = Cost of retained earnings = 13.748%
Cost of capital = (Weight of debt * (Cost of debt * (100% - Tax rate))) + (Weight of common stock * Cost of common stock) = (40% * (10% * (100% - 34%))) + (60% * 13.748%) = 10.89%
Therefore, the cost of capital is 10.89%.
Below are the simplified current and projected financial statements for Decker Enterprises. All of Decker's assets are operating assets. All of Decker's current liabilities are operating liabilities. Income statement Current Projected Sales na 1,500 Costs na 1,080 Profit before tax na 420 Taxes (25%) na 105 Net income na 315 Dividends na 95 Balance sheets Current Projected Current Projected Current assets 100 115 Current liabilities 70 81 Net fixed assets 1,200 1,440 Long-term debt 300 360 Common stock 500 500 Retained earnings 430 650 If Decker had a financing deficit, it could remedy the situation by a. borrowing from retained earnings b. borrowing on its line of credit c. paying down its long-term debt d. buying back common stock e. paying a special dividend
Answer:
Decker Enterprises
If Decker had a financing deficit, it could remedy the situation by
b. borrowing on its line of credit
Explanation:
a) Data and Calculations:
Income statement Current Projected
Sales na 1,500
Costs na 1,080
Profit before tax na 420
Taxes (25%) na 105
Net income na 315
Dividends na 95
Balance sheets Current Projected Current Projected
Current assets 100 115 Current liabilities 70 81
Net fixed assets 1,200 1,440 Long-term debt 300 360
Common stock 500 500
Retained earnings 430 650
Total assets 1,300 1,555 Liabilities + Equity 1,300 1,591
Shortfall in projected assets = $36 ($1,591 - $1,555)
b) A company cannot borrow from retained earnings to remedy a financing deficit because financial deficits require external financing from stockholders, debt holders, or financial institutions. Ordinarily, options c, d, and e involve cash outflows. They cannot finance a financial deficit.
Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of goods sold.
Saxon, Inc.
Absorption Costing Income Statement
For the Year Ended December 31
Sales $1,360,000
Cost of goods sold:
Cost of goods manufactured $800,000
Ending inventory (120,000)
Total cost of goods sold (680,000)
Gross profit $680,000
Selling and administrative
expenses (303,000)
Operating income $377,000
Saxon, Inc.
Variable Costing Income Statement
For the Year Ended December 31
Sales $1,360,000
Variable cost of goods sold:
Variable cost of goods manufactured $560,000
Ending inventory (84,000)
Total variable cost of goods sold (476,000)
Manufacturing margin $884,000
Variable selling and administrative expenses (238,000)
Contribution margin $646,000
Fixed costs:
Fixed manufacturing costs $240,000
Fixed selling and administrative
expenses 65,000
Total fixed costs (305,000)
Operating income $341,000
Method Comparison
Review the income statements on the Absorption Statement and Variable Statement, then complete the following table. The company’s sales price per unit is $80, and the number of units in ending inventory is 3,000. There was no beginning inventory.
Item Amount
Number of units sold
Variable sales and administrative cost per unit $
Number of units manufactured
Variable cost of goods manufactured per unit $
Fixed manufacturing cost per unit $
Feedback
Review the definitions of the items in the table, and think backwards from one of the income statements to get the desired values.
Manufacturing Decisions
Whenever the units manufactured differ from the units sold, finished goods inventory is affected. In analyzing operating income, such increases and decreases could be misinterpreted as operating efficiencies or inefficiencies. Each decision-making situation should be carefully analyzed in deciding whether absorption or variable costing reporting would be more useful.
All costs are controllable in the long run by someone within a business. For a given level of management, costs may be controllable costs or noncontrollable costs.
The production manager for Saxon, Inc. is worried because the company is not showing a high enough profit. Looking at the income statements on the Absorption Statement and the Variable Statement, he notices that the operating income is higher on the absorption cost income statement. He is considering manufacturing another 10,000 units, up to the company’s capacity for manufacturing, in the coming year. He reasons that this will boost operating income and satisfy the company’s owner that the company is sufficiently profitable. Although the total units manufactured changes, assume that total fixed costs, unit variable costs, unit sales price, and the sales levels are the same. Complete questions (1)-(4) that follow.
1. Use the income statements on the Absorption Statement and Variable Statement to complete the following table for the original production level. Then prepare similar income statements at a production level 10,000 units higher and add that information to the table. Assume that total fixed costs, unit variable costs, unit sales price, and the sales levels are the same at both production levels.
Operating Income
Original Production
Level-Absorption Original Production
Level-Variable Additional 10,000
Units-Absorption Additional 10,000
Units-Variable
2. What is the change in operating income from producing 10,000 additional units under absorption costing?
3. What is the change in operating income from producing 10,000 additional units under variable costing?
Answer:
Item Amount
Number of units sold 17,000 ($1,360,000/$80)
Variable sales and administrative cost per unit $14 ($238,000/17,000)
Number of units manufactured 20,000 (17,000 + 3,000)
Variable cost of goods manufactured per unit $28 ($560,000/20,000)
Fixed manufacturing cost per unit $12 ( $240,000/20,000)
2. There is a $68,000 increase in operating income from producing 10,000 additional units under absorption costing.
3. There is no change in operating income from producing 10,000 additional units under variable costing.
Explanation:
a) Data and Calculations:
Saxon, Inc.
Absorption Costing Income Statement
For the Year Ended December 31
Sales $1,360,000
Cost of goods sold:
Cost of goods manufactured $800,000
Ending inventory (120,000)
Total cost of goods sold (680,000)
Gross profit $680,000
Selling and administrative expenses (303,000)
Operating income $377,000
Saxon, Inc.
Variable Costing Income Statement
For the Year Ended December 31
Sales $1,360,000
Variable cost of goods sold:
Variable cost of goods manufactured $560,000
Ending inventory (84,000)
Total variable cost of goods sold (476,000)
Manufacturing margin $884,000
Variable selling and
administrative expenses (238,000)
Contribution margin $646,000
Fixed costs:
Fixed manufacturing costs $240,000
Fixed selling and administrative
expenses 65,000
Total fixed costs (305,000)
Operating income $341,000
Sales price per unit = $80
Ending inventory = 3,000 units
Beginning inventory = 0
Item Amount
Number of units sold 17,000 ($1,360,000/$80)
Variable sales and administrative cost per unit $14 ($238,000/17,000)
Number of units manufactured 20,000 (17,000 + 3,000)
Variable cost of goods manufactured per unit $28 ($560,000/20,000)
Fixed manufacturing cost per unit $12 ( $240,000/20,000)
Manufacturing Decisions:
Additional production of 10,000 units:
Absorption Costing Income Statement
For the Year Ended December 31 Normal Additional 10,000
Sales $1,360,000 $1,360,000
Cost of goods sold:
Cost of goods manufactured $800,000 $1,080,000*
Ending inventory (120,000) 468,000
Total cost of goods sold (680,000) (612,000)
Gross profit $680,000 $748,000
Selling and administrative expenses (303,000) (303,000)
Operating income $377,000 $445,000
Cost of goods manufactured:
Variable manufacturing cost = $840,000 (30,000 * $28)
Fixed manufacturing cost = $240,000
Total cost of goods manufactured = $1,080,000
Per unit cost = $36 ($1,080,000/30,000)
Ending inventory = $468,000 ($36 * 13,000)
Cost of goods sold = $612,000 ($36 * 17,000)
Saxon, Inc.
Variable Costing Income Statement
For the Year Ended December 31 Normal Additional 10,000
Sales $1,360,000 $1,360,000
Variable cost of goods sold:
Variable cost of goods manufactured $560,000 $840,000
Ending inventory (84,000) (364,000)
Total variable cost of goods sold (476,000) (476,000)
Manufacturing margin $884,000 $884,000
Variable selling and
administrative expenses (238,000) (238,000)
Contribution margin $646,000 $646,000
Fixed costs:
Fixed manufacturing costs $240,000 $240,000
Fixed selling and administrative
expenses 65,000 65,000
Total fixed costs (305,000) (305,000)
Operating income $341,000 $341,000
What are the sources and types of the principal agent problem?
Answer:
The three types of agency problems are stockholders v/s management, stockholders v/s bondholders/ creditors, and stockholders v/s other stakeholders like employees, customers, community groups, etc.
Explanation:
Ted works for Azure Motors, an automobile dealership. All employees can buy a car at the company's cost plus 2%. The company does not charge employees the $300 dealer preparation fee that nonemployees must pay. Ted purchased an automobile for $29,580 ($29,000 $580). The company's cost was $29,000. The price for a nonemployee would have been $33,900 ($33,600 $300 preparation fee). What is Ted's gross income, if any, from the purchase of the automobile
Answer:
$240
Explanation:
The computation of the ted gross income is given below;
But before that the following calculations need to be done
The discount would be
= $33,600 - $29,580
= $4,020
There is a service of $300 out of which 80% represent the gross income
So the gross income would be
= 80% of $300
= $240
Hence, the gross income of Ted is $240
You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 2 million shares of stock. Since then, you have sold an additional 1 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $5 million and would receive 2 million newly issued shares in return. Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will the venture capitalist own
Answer:
40%
Explanation:
Calculation to determine what percentage of the firm will the venture capitalist own
Using this formula
% ownership = Number of shares owned/Total number of shares
Let plug in the formula
% ownership=2 million shares /(2million shares + 1 million shares + 2million shares )
% ownership= 2million shares/5million shares
% ownership=0.4*100
% ownership=40%
Therefore what percentage of the firm will the venture capitalist own is 40%
Black Co. acquired 100% of Blue, Inc. on January 1, 2020. On that date, Blue had land with a book value of $38,000 and a fair value of $49,000. Also, on the date of acquisition, Blue had a building with a book value of $250,000 and a fair value of $460,000. Blue had equipment with a book value of $340,000 and a fair value of $280,000. The building had a 10-year remaining useful life and the equipment had a 5-year remaining useful life. How much total expense will be in the consolidated financial statements for the year ended December 31, 2020 related to the acquisition allocations of Blue
Answer:
Black Co.
Total expenses for the year ended December 31, 2020 related to the acquisition allocations of Blue are:
= $102,000
Explanation:
a) Data and Calculations:
Assets of Blue Corporation:
Book Value Fair Value Depreciation Expense
Land $38,000 $49,000 $0
Building 250,000 460,000 46,000
Equipment 340,000 280,000 56,000
Total $628,000 $789,000 $102,000
Remaining useful life:
Building = 10 years
Equipment = 5 years
Straight-line Depreciation:
Building = $46,000 ($460,000/10)
Equipment = $56,000 ($280,000/5)
Name a product or a company that you are familiar with. Discuss how environmental forces (social, economic, technological, competitive, and regulatory) will impact that product/company over the next five years.
Answer:
The name of the product is Coke and this is a Pestel Analysis.
PESTEL is short for Political, Economic, Social, Technological, Environmental, and Legal. All representing factors that can and will impact the operations of any business.
Explanation:
Coca-Cola is a global company with is in the business of providing refreshments to its customers by the sale of Soda or soft drinks. Because of the nature of the product, the industry in which they play is heavily regulated and they must use the best technology in order to stay relevant, competitive, and dominant in the market.
Political factors
One of the regulators to whom Coca-cola must dance to its tune is the Food and Drugs Administration (FDA) a Federal Agency of the Department of Health and Human Services in the US. All Coca-cola product must meet their requirements as stipulated by law. If the laws enforced by FDA changes it could adversely affect the distribution, taxes, accounting, and all other operations of Coca-Cola.
Economical factors
Some economic factors that may affect a business like Coca-cola are:
Interest rates, exchange rates, recession, Inflation, Taxes, Demand / Supply.
One critical factor in this group which the company must be on the lookout for always is changes in taste and demand. Consumers are making a shift globally towards more healthy alternatives to soda. This is because, as the world becomes more sedentary due to shifts in global economic patterns as induced by the pandemic, risk factors relating to health care on the increase. Hence consumers want to ensure that they cut down on foods and beverages that increase their predisposition to conditions such as obesity, cancer, high blood pressure, etc.
To stay relevant and competitive, the company has to seek out healthy drinks that speak to all the various localities (which are over 200 countries).
Social factors
Examples of social factors that can affect a business are:
e-commerce adaptation, purchasing habits, ease of adoption of technology, changes in customer service expectation, the education level of consumers.
The purchasing habit for Coca-cola is changing in lots of countries. People are becoming more predisposed to buying products online. How will that affect the demand for the company's products? Will it increase as online food orders increase? can the company position itself to take advantage of the trend? If yes, then it is making taking advantage of its changing social environment.
Technological factors
Adoption of best-in-class machinery is one of the strategies that has enabled Coca-Cola to achieve higher quality and quantity of its products. Speed of delivery, processes that are optimized for the lowest costs and highest outputs are now being made possible with advances in technology. Coca-cola is taking advantage of technology especially in regions such as Europe.
Legal factors
Product liability, third-party liability, employer-employee (labor) relations, compliance, and regulatory factors are all within the scope of Coca-Cola's legal universe. Constantly managing this space of its operations will keep it from experiencing avoidable erosion of its bottom line and brand equity.
Environmental factors
Companies no longer compete on the basis of profitability alone. Global companies are the target of onslaughts from those who campaign against the degradation of the environment. One way they do so is to discourage the consumption of the goods of a company whose activities are harming the environment.
So companies all over the world are not competing based on the triple bottom line criteria: People, Planet, Profit.
This answers the questions whether
Coca-cola is in compliance with international best practices as far as labor law is concerned;How does the company handle its effluents and wastes? is it just discharging them into the earth without treatment? or is it creatively converting them into economic products? how responsible is the company socially?then of course there is the issue of keeping the books in the blackCheers
Suppose your company needs $13 million to build a new assembly line. Your target debt-equity ratio is .55. The flotation cost for new equity is 6 percent, but the flotation cost for debt is only 3 percent. Your boss has decided to fund the project by borrowing money because the flotation costs are lower and the needed funds are relatively small.
A. What is your company’s weighted average flotation cost, assuming all equity is raised externally?
B. What is the true cost of building the new assembly line after taking flotation costs into account?
Answer:
A. The company’s weighted average flotation cost, assuming all equity is raised externally is:
= 4.35%.
B. The true cost of building the new assembly line after taking flotation costs into account is:
= $13.39 million.
Explanation:
a) Data and Calculations:
Amount needed to build a new assembly line = $13 million
Target debt-equity ratio = 0.55
Therefore, the weight of equity = 1 - 0.55 = 0.45
Flotation cost for new equity = 6%
Flotation cost for debt = 3%
Weighted average flotation cost = (Equity flotation cost * weight) + (Debt flotation cost * weight)
= 6% * 0.45 = 2.7%
+ 3% * 0.55 = 1.65%
Weighted Average = 4.35%
True cost of building the new assembly line:
Amount needed to build a new assembly line = $13 million
Plus Debt flotation cost (3% of $13 million) 0.39 million
Total cost of building the assembly line, including flotation cost = $13.39 million
b) Note that the interest payments are not included in the above cost.
On January 1, 2017, Yeager Company purchased some equipment for $4,700. The estimated life was five years, after which there would be a residual value of $600. On January, 1, 2019, the estimated total economic life from the original purchase date was changed to six years and the estimated residual value was increased by $100. Assuming straight line depreciation method is used by the company, what is the amount of depreciation expense for the year 2019
Answer:
$575
Explanation:
Straight line method charges a fixed amount of depreciation using the formula :
Depreciation expense = (Cost - Residual Value) ÷ Useful Life
2017
Deprecation expense = $820
2018
Deprecation expense = $820
2019
Calculate depreciable amount :
New depreciable amount = Previous Depreciable Amount - Accumulated depreciation - Increase in Residual amount
= $4,700 - $600 - $1,640 - $100
= $2,300
Determine the New useful life :
Since 2 years have already expired, the new useful life out of the revised 6 years is 4.
Depreciation Expense calculation :
Depreciation Expense = Depreciable Amount ÷ Useful Life
= $2,300 ÷ 4
= $575
Conclusion :
The amount of depreciation expense for the year 2019 is $575
Mike is a self-employed graphic designer his net earnings from his commissioned work this year are 41200 what is he is s e c a deduction
Answer:5821.60
Explanation:
Just done it to
Balance Sheet Below are items that may appear on the balance sheet. Required: Match each item with its appropriate classification.
Item
1. Buildings
2. Copyright
3. Supplies
4. Unearned service revenue
5. Prepaid insurance
6. Common stock
7. Rent payable
8. Accounts receivable
9. Allowance for doubtful accounts
10 Bonds payable
Classification
A. Property, plant, and equipment
B. Intangible assets
C. Current assets
D. Current liabilities
E. Current assets
F. Contributed capital
G. Retained earnings
Answer:
Item Classification
1. Buildings - Property, plant, and equipment
2. Copyright - Intangible assets
3. Supplies - Current assets
4. Unearned service revenue - Current liabilities
5. Prepaid insurance - Current assets
6. Common stock - Contributed capital
7. Rent payable - Current liabilities
8. Accounts receivable - Current assets
9. Allowance for doubtful accounts - Retained earnings
10 Bonds payable - Current liabilities
Explanation:
A. Property, plant, and equipment
Assets of long term nature that are physical fall in this category.
B. Intangible assets
Assets that are of long term and do not have a physical nature fall in this category
C. Current assets
Assets of a short term nature, existing within a period of 12 months are in this category.
D. Current liabilities
Liabilities or obligations due within a period of 12 months fall in this category.
E. Current assets
Assets of a short term nature, existing within a period of 12 months are in this category.
F. Contributed capital
This involves all capital raised from owners of the company excluding reserves attributed to them.
G. Retained earnings
This is the reserve created out of profit earned during the year. Include incomes and expenses here.
Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows:
Variable costs per unit:
Fixed costs:
Direct materials $120
Factory overhead $250,000
Direct labor 30
Selling and administrative expenses 150,000
Factory overhead 50
Selling and administrative expenses 35
Total variable cost per unit $235
Crystal Displays Inc. is currently considering establishing a selling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 15% return on invested assets.
Required:
Determine the amount of desired profit from the production and sale of flat panel displays.
Answer:
Crystal Displays Inc.
The amount of desired profit from the production and sale of the flat panel displays is:
= $225,000
Explanation:
a) Data and Calculations:
Investment in assets = $1,500,000
Production and sales units = 5,000
Cost of production and sales:
Variable costs per unit:
Direct materials $120
Direct labor 30
Factory overhead 50
Selling and
administrative expenses 35
Total variable cost per unit $235
Fixed costs:
Factory overhead $250,000
Selling and administrative expenses 150,000
Total fixed costs $400,000
Total production costs:
Variable production costs = $1,000,000 (5,000 * $200)
Fixed factory overhead 250,000
Total production costs $1,250,000
Total selling and administrative expenses:
Variable selling and admin. $175,000
Fixed selling and admin. 150,000
Total selling and admin. exp. $325,000
Total costs of production and sales = $1,575,000
Target return on invested assets = 225,000 ($1,500,000 * 15%)
Total expected sales revenue = $1,800,000
Price per unit = $360 ($1,800,000/5,000)
Oriole Company sells office equipment on July 31, 2022, for $21,000 cash. The office equipment originally cost $73,600 and as of January 1, 2022, had accumulated depreciation of $42,300. Depreciation for the first 7 months of 2022 is $5,250. Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment.
Answer:
(a) update depreciation to July 31, 2022
Debit : Depreciation expense $5,250
Credit : Accumulated depreciation $5,250
(b) record the sale of the equipment.
Debt : Cash $21,000
Debit : Accumulated depreciation $47,550
Debit : Profit and loss $5,050
Credit : Office equipment at Cost $73,600
Explanation:
It is important to remember that even in the year of sale, we still have to provide for depreciation of the asset for the period it was in use for that year. Hence the need to prepare a journal to update the depreciation.
After a disposal, the company incurs either a profit or a loss and this must be accounted for. The whole process of a sale can be shown in a journal.
Accumulated depreciation = $42,300 + $5,250 = $47,550
The Loss on sale of the asset is $5,050.
Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1993. He also acquired a rental house in 2019, which he actively manages. During 2019, Walter's share of the partnership's losses was $30,000, and his rental house generated $20,000 in losses. Walter's modified adjusted gross income before passive losses is $130,000.
a. Calculate the amount of Walter's allowable deduction for rental house activities for 2017.
b. Calculate the amount of Walter's allowable deduction for the partnership losses for 2017.
c. What may be done with the unused losses, if anything?
Answer:
a. maximum allowable deduction = $25,000 - [50% x ($130,000 - $100,000)] = $25,000 - (50% x 30,000) = $25,000 - $15,000 = $10,000
b. partnerships passive losses must be deducted from passive gains, since there are no passive gains, there are no deductions = $0
c. passive losses can be carried forward for future deductions against passive gains
airline tickets may be charged directly to the organization, or the traveler may pay and be reimbursed by the company?
Asset turnover ratio Financial statement data for years ended December 31, 20Y3 and 20Y2, for Edison Company follow: 20Y3 20Y2 Sales $2,385,000 $2,015,500 Total assets: Beginning of year 770,000 620,000 End of year 820,000 770,000 a. Determine the asset turnover ratio for 20Y3 and 20Y2. Round answers to one decimal place. 20Y3 20Y2 Asset turnover fill in the blank 1 fill in the blank 2 b. Is the change in the asset turnover ratio from 20Y2 to 20Y3 favorable or unfavorable
Answer:
a. Asset Turnover 20Y3
= Sales / Average assets
= 2,385,000 / [ (770,000 + 820,000) / 2]
= 2,385,000 / 795,000
= 3.0
Asset Turnover 20Y2
= 2,015,500 / [ (620,000 + 770,000) / 2]
= 2,015,500 / 695,000
= 2.9
b. The change is Favorable because it means that the assets are bringing in more sales per dollar value of assets to the company.
Jaheem's business sells a single product. The following information was gathered from Jaheem's records: Price $24.00 per unit Variable costs are 61% of sales price The company's fixed costs are $400,000 annually Current sales total is 41,000 units Target profit before tax $22,000 Budgeted sales total is 48,000 units By how much will profit increase with the sale of each unit in Jaheem's business
Answer:
See below
Explanation:
With regards to the above, Jaheem's business profit increase is calculated as
= Fixed cost + Desired profit/Contribution margin
Given that;
Fixed cost = $400,000
Desire profit = $22,000
Contribution margin = $9.4
= $400,000 + $22,000/($24 - $14.6)
= $422,000/$9.4
= $44,894
Therefore, increase on profit
= $44,894 - $22,000
= $22,894
How do I tell a guy I like him?
The following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing:
2017
Dec. 7 Received from Unitarian Clothing & Bags Co., on account, a $75,000, 60-day, 3% note dated December 7.
31 Recorded an adjusting entry for accrued interest on the note of December 7.
31 Recorded the closing entry for interest revenue.
2018
Feb. 5 Received payment of note and interest from Unitarian Clothing & Bags Co.
Journalize the entries to record the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.
CHART OF ACCOUNTSInterlocking Devices Co.General Ledger
ASSETS
110 Cash
111 Petty Cash
121 Accounts Receivable-Unitarian Clothing & Bags Co.
129 Allowance for Doubtful Accounts
131 Interest Receivable
132 Notes Receivable
141 Merchandise Inventory
145 Office Supplies
146 Store Supplies
151 Prepaid Insurance
181 Land
191 Store Equipment
192 Accumulated Depreciation-Store Equipment
193 Office Equipment
194 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
211 Salaries Payable
213 Sales Tax Payable
214 Interest Payable
215 Notes Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Merchandise Sold
520 Sales Salaries Expense
521 Advertising Expense
522 Depreciation Expense-Store Equipment
523 Delivery Expense
524 Repairs Expense
529 Selling Expenses
530 Office Salaries Expense
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Insurance Expense
534 Office Supplies Expense
535 Store Supplies Expense
536 Credit Card Expense
537 Cash Short and Over
538 Bad Debt Expense
539 Miscellaneous Expense
710
Interest Expense
Journalize the entries to record the transactions for the year 2017. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY
1
2
3
4
5
6
Journalize the entries to record the transactions for the year 2018. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY
1
2
3
4
Answer and Explanation:
The journal entries are shown below:
On Dec 7
Notes receivable $75,000
To Accounts receivable $75,000
(being note receivable is recorded)
On Dec 31
Interest receivable ($75,000 × 3% × 24 ÷ 360 days) $150
To Interest revenue $150
(Being recording of accrued interest)
On Dec 31
Interest revenue $150
To Income summary $150
(Being interest revenue is closed)
On Feb 5
Cash ($75,000 + $75,000 × 3% × 60 ÷360) 75,375
To Notes receivable $75,000
To Interest receivable $150
To Interest revenue $225 ($75,000 × 3% × 36 ÷ 360 days)
(Being collection is recorded)
ative expense $ 20.00 The normal selling price of the product is $110.10 per unit. An order has been received from an overseas customer for 3,200 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $2.40 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $88.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be:
Answer:
$84,480
Explanation:
Calculation to determine what the monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be:
First step is to calculate the Contribution margin
Selling price = $88.40
Less: Variable costs:
Direct material = $ 48.60
Direct labor = $ 9.30
Variable manufacturing overhead = $ 2.30
Variable selling & admin costs ($ 4.20 - $2.40) $1.80
Contribution margin = $26.4
Now let calculate the monthly financial advantage of accepting the special order
Monthly financial advantage of accepting the special order =($26.4 * 3200 units)
Monthly financial advantage of accepting the special order = $84,480
Therefore the monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be:$84,480
