Answer:
is called a forbearance and is adequate legal consideration for a contract.
Explanation:
A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.
Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.
Under contract law, a promise not to do something that a person could otherwise do is called a forbearance and is adequate legal consideration for a contract.
For example, a creditor who decides to forebear by refusing to collect money from a debtor.
Suppose a group of competitive producers can produce two different goods (shovels and hammers) with basically the same resources. Most are currently producing many shovels and fewer hammers. The demand for hammers increases. What is likely to happen in the market for shovels
Answer:
The demand for hammers increases is likely to happen in the market for shovels is described below in complete details.
Explanation:
The equilibrium capacity will decline; the equilibrium price will decline.
Reason - The equilibrium capacity will decline as the market for shovels drop while the supply persists steadfast. And, the equilibrium price will also decline as there is a surplus capacity of shovels with an undersized market.
Suppose a country is able to produce a maximum of either 300 units of lumber or 100 units of rice. This country is currently allocating its labor resources to produce 75 units of lumber and 75 units of rice. To increase its lumber production by 6 units to 81, the country faces an opportunity cost of
A. 2 units of rice.
B. 6 units of rice.
C. 75 units of rice.
D. 18 units of rice
Answer: A. 2 units of rice.
Explanation:
The opportunity cost of producing lumber is:
= Maximum rice production / maximum lumber production
= 100 / 300
= 1/3 units of rice
If the country wants to increase its lumber production by 6, it will incur an opportunity cost of:
= 6 * 1/3
= 2 units of rice
Consider two markets: the market for cat food and the market for dog food. The initial equilibrium for both markets is the same, the equilibrium price is $1.50 , and the equilibrium quantity is 21.0 . When the price is $8.75 , the quantity supplied of cat food is 57.0 and the quantity supplied of dog food is 107.0 . For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for dog food. Please round to two decimal places.
Answer:
Elasticity of supply for dog food = 0.95
Explanation:
From the question, we have:
New quantity supplied of dog food = 107.0
Old quantity supplied of dog food = Initial equilibrium quantity = 21.0
New price = $8.75
Old price = Initial equilibrium price = $1.50
Generally, the formula for calculating the elasticity of supply is as
follows:
Elasticity of supply = Percentage change in quantity supplied / Percentage change in price ................ (1)
Where, based on the midpoint formula, we have:
Percentage change in quantity supplied of dog food = {(New quantity supplied of dog food - Old quantity supplied of dog food) / [(New quantity supplied of dog food + Old quantity supplied of dog food) / 2]} * 100 = {(107.0 - 21.0) / [(107.0 + 21.0) / 2]} * 100 = 134.375%
Percentage change in price = {(New price - Old price) / [(New price + Old price) / 2]} * 100 = {(8.75 - 1.50) / [(8.75 + 1.50) / 2]} * 100 = 141.463414634146%
Substituting the values into equation (1), we have:
Elasticity of supply for dog food = 134.375% / 141.463414634146% = 0.94989224137931
Approximated to 2 decimal places, we have:
Elasticity of supply for dog food = 0.95
Online retailers lose approximately 25% of their customers every year. Unfortunately, due to the highly competitive camping gear marketplace, Camp Plus loses approximately 35% of its customers every year to its competition, giving it a retention rate of only 65%. Using a discount rate of 10%, you calculate a CLV for each of the 10,000 customers in Camp Plus's database.
Answer:
CLV = [(GC * r) / (1 + i - r)] - AC]
Explanation:
CLV is the customer lifetime value which is the calculation of net profit during the tenure of relationship with the clients and customers.
The formula for CLV calculation is :
CLV = [(GC * r) / (1 + i - r)] - AC]
Where,
GC is annual gross contribution,
r is retention rate of customers
i is discount rate
AC is Acquisition cost
High Country Builders currently pays an annual dividend of $1.35 and plans on increasing that amount by 2.5 percent each year. Valley High Builders currently pays an annual dividend of $1.20 and plans on increasing its dividend by 3 percent annually. Given this information, you know for certain that the stock of High Country Builders' has a higher ______ than the stock of Valley High Builders.
Answer:
c
Explanation:
Here are the options :
A. market price.
B. dividend yield.
C. capital gains yield.
D. total return.
Joan is a self-employed attorney in New York City. Joan took a trip to San Diego, CA, primarily for business, to consult with a client and take a short vacation. On the trip, Joan incurred the following expenses: Airfare to and from San Diego $ 975 Hotel charges while on business 300 Meals while on business 280 Car rental while on business 90 Hotel charges while on vacation 420 Meals while on vacation 308 Car rental while on vacation 180 Total $2,553
Answer:
$1,505
Explanation:
Calculation for Joan's travel expense deduction for the trip
Travel expense deduction= $975 (flight) + $300 (business hotel) + $140 (business meals $280 x 50%) + $90(business car)
Travel expense deduction=$1,505
Therefore Joan's travel expense deduction for the trip will be $1,505
Beagle Corporation has 18,000 shares of $10 par common stock outstanding and 18,500 shares of $100 par, 6.75% cumulative, nonparticipating preferred stock outstanding. Dividends have not been paid for the past two years. This year, a $470,000 dividend will be paid. What are the dividends per share payable to preferred and common, respectively?
Answer:
Common Stockholders = $5.30 per share
Preferred Stockholders Payable = $20.25 per share
Explanation:
Previous Years Dividends distribution - Year 1
Common Stockholders = $0
Preferred Stockholders Payable = 18,500 x $100 x 6.75% = $124,875.00
Previous Years Dividends distribution - Year 2
Common Stockholders = $0
Preferred Stockholders Payable = 18,500 x $100 x 6.75% = $124,875.00 ($249,750 -cumulative)
Previous Years Dividends distribution - Current Year
Common Stockholders = $95,375
Preferred Stockholders Payable = 18,500 x $100 x 6.75% = $124,875.00 ($374,625 -cumulative)
dividends per share payable calculation
Common Stockholders = $95,375 / 18,000 shares = $5.30 per share
Preferred Stockholders Payable = $374,625 / 18,500 shares = $20.25 per share
he 2021 income statement of Adrian Express reports sales of $16,281,000, cost of goods sold of $9,851,500, and net income of $1,610,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 610,000 $ 770,000 Accounts receivable 1,420,000 1,010,000 Inventory 1,820,000 1,410,000 Long-term assets 4,810,000 4,250,000 Total assets $ 8,660,000 $ 7,440,000 Liabilities and Stockholders' Equity Current liabilities $ 2,010,000 $ 1,670,000 Long-term liabilities 2,310,000 2,410,000 Common stock 1,990,000 1,990,000 Retained earnings 2,350,000 1,370,000 Total liabilities and stockholders' equity $ 8,660,000 $ 7,440,000 Industry averages for the following four risk ratios are as follows: Average collection period 25 days Average days in inventory 60 days Current ratio 2 to 1 Debt to equity ratio 50% Required: 1. Calculate the four risk ratios listed above for Adrian Express in 2021. (Use 365 days in a year. Round your answers to 1 decimal place.)
Answer:
ADRIAN EXPRESS
1. Average Collection Period = 365/Average Receivable Turnover Ratio
= 365/13.4
= 27.2 days
2. Average days in inventory = Average Inventory/Cost of goods sold * 365
= $1,615,000/$9,851,500 * 365
= 59.8 days
3. Current Ratio = Current Assets/Current Liabilities
= $3,850,000/$2,010,000
= 1.9 to 1
4. Debt to Equity Ratio = Total Debts/Equity
= $4,320,000/$4,340,000 * 100
= 99.5%
Explanation:
a) Data and Calculations:
ADRIAN EXPRESS
Income Statement for the year ended December 31, 2021:
Sales = $16,281,000
Cost of goods sold = $9,851,500
Net Income = $1,610,000
ADRIAN EXPRESS
Balance Sheets December 31, 2021 and 2020
2021 2020
Assets
Current assets:
Cash $ 610,000 $ 770,000
Accounts receivable 1,420,000 1,010,000
Inventory 1,820,000 1,410,000
Long-term assets 4,810,000 4,250,000
Total assets $ 8,660,000 $ 7,440,000
Liabilities and Stockholders' Equity
Current liabilities $ 2,010,000 $ 1,670,000
Long-term liabilities 2,310,000 2,410,000
Common stock 1,990,000 1,990,000
Retained earnings 2,350,000 1,370,000
Total liabilities and stockholders' equity $ 8,660,000 $ 7,440,000
Industry averages for the following four risk ratios are as follows:
Average collection period 25 days
Average days in inventory 60 days
Current ratio 2 to 1
Debt to equity ratio 50%
Average accounts receivable = ($1,420,000 + 1,010,000)/2 = $1,215,000
Average Receivable Turnover Ratio = Net Sales/Average Receivable
= $16,281,000/$1,215,000 = 13.4
Average Collection Period = 365/Average Receivable Turnover Ratio
= 365/13.4
= 27.2 days
Average Inventory = ($1,820,000 + 1,410,000)/2 = $1,615,000
Average days in inventory = Average Inventory/Cost of goods sold * 365
= $1,615,000/$9,851,500 * 365
= 59.8 days
Current Assets = Total assets - Long-term assets
= $8,660,000 - $4,810,000
= $3,850,000
Current Ratio = Current Assets/Current Liabilities
= $3,850,000/$2,010,000
= 1.9 to 1
Total debts = current liabilities + long-term liabilities
= $2,010,000 + $2,310 = $4,320,000
Total Equity = Common Stock + Retained Earnings
= $1,990,000 + $2,350,000 = $4,340,000
Debt to Equity Ratio = Total Debts/Equity
= $4,320,000/$4,340,000 * 100
= 99.5%
Discuss
any
four ways in which Specialization has
improved the economic development of Nigeria.
Answer:
fixing electricity in Nigeria.
discouraging insurgency in Nigeria.
patronizing Nigerian made products.
improvement of law and order.
Heinz Company began operations on January 1, 2017, and uses the first in, first out (FIFO) method in costing its raw material inventory. Management is contemplating a change to the last in, first out (LIFO) method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed: Final Inventory 2017 2018 FIFO $640,000 $ 712,000 LIFO $560,000 $636,000 Net Income (computed under the FIFO method) $980,000 $1,030,000 Based on the above information, a change to the LIFO method in 2018 would result in net income for 2018 of ________. Group of answer choices $1,070,000 $1,030,000 $954,000 $950,000
Answer:
C. $954,000
Explanation:
Final inventory FIFO LIFO Difference
2017 640,000 560,000 80,000
2018 712,000 636,000 76,000
Note: When method is changed to LIFO in 2018, it will effect ending inventory of 2018 only.
Net income as per FIFO $1,030,000
Decrease in income due to decrease -$76,000
in the ending inventory as per LIFO
Net income as per LIFO $954,000
So, a change to the LIFO method in 2018 would result in net income for 2018 of $954,000
Performance Plastics Company (PPC) has been operating for three years. The beginning account balances are
Cash $35,000
Accounts Receivable 5,000
Inventory 40,000
Supplies 5,000
Notes Receivable (due in three years) 2,000
Equipment 80,000
Buildings 120,000
Land 30,000
Accounts Payable 37,000
Notes Payable (due in three years) 80,000
Common Stock 150,000
Retained Earnings 50,000
During the year, the company had the following summarized activities:
a. Purchased equipment that cost $21,000; paid $5,000 cash and signed a two-year note for the balance.
b. Issued an additional 2,000 shares of common stock for $20,000 cash.
c. Borrowed $50,000 cash from a local bank, payable June 30, in two years.
d. Purchased supplies for $4,000 cash.
e. Built an addition to the factory buildings for $41,000; paid $12,000 in cash and signed a three-year note for the balance.
f. Hired a new president to start January 1 of next year. The contract was for $95,000 for each full year worked.
Required:
Analyze transactions to determine their effects on the accounting equation.
Answer:
Performance Plastics Company (PPC)
Analysis of Transactions to determine their effects on the Accounting Equation:
Assets = Liabilities + Equity
a. Assets (Equipment +$21,000 Cash -$5,000) = Liabilities (Notes Payable +$16,000) + Equity
b. Assets (Cash +$20,000) = Liabilities + Equity (Common Stock +$20,000)
c. Assets (Cash +$50,000) = Liabilities (Bank Loan +$50,000) + Equity
d. Assets (Supplies +$4,000 Cash -$4,000) = Liabilities + Equity
e. Assets (Factory Building +41,000 Cash -$12,000) = Liabilities (Notes Payable +$29,000) + Equity
f. N/A
Explanation:
a) Data and Calculations:
Cash $35,000
Accounts Receivable 5,000
Inventory 40,000
Supplies 5,000
Notes Receivable
(due in three years) 2,000
Equipment 80,000
Buildings 120,000
Land 30,000
Total assets $317,000
Accounts Payable 37,000
Notes Payable
(due in three years) 80,000
Common Stock 150,000
Retained Earnings 50,000
Total liabilities +
equity $317,000
b)The accounting equation is an important accounting concept that describes the double-entry basis of accounting. It shows that at every given time and after every business transaction, the assets are always equal to the liabilities and the equity balance. This implies that the assets are funded from the contributions of creditors and owners.
Selling price$85 100% Variable expenses 51 60 Contribution margin$34 40% Fixed expenses are $77,000 per month and the company is selling 2,600 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used
Answer:
The company should use high-quality components. It will increase the net operating income by $2,080 (13,480 - 11,400).
Explanation:
First, we need to calculate the current net operating income:
Net operating income= total contribution margin - fixed costs
Net operating income= 2,600*34 - 77,000
Net operating income= $11,400
Now, the Net operating income including the high-quality component:
Unitary contribution margin= 85 - 56= $29
Number of units= 2,600*1.2= 3,120
Net operating income= 3,120*29 - 77,000
Net operating income= $13,480
The company should use high-quality components. It will increase the net operating income by $2,080 (13,480 - 11,400).
You are given an old car by your uncle, who wants you to keep it in working condition so that you can hand it off to your younger brother in three years. It will cost you $1,500 per year to keep it in working condition for your brother. If you skip maintenance altogether, the car will die after two years, but you can pocket the maintenance costs.
a. What will you be tempted to do?
Not do the maintenance, because the MC < MB of doing the maintenance and the MC > MB of doing the maintenance.
Do the maintenance, because the MC < MB of doing the maintenance and the MC > MB of doing the maintenance.
Not do the maintenance, because the MC < MB of doing the maintenance and the MC > MB of doing the maintenance.
Not do the maintenance, because the MC < MB of doing the maintenance and the MC < MB of doing the maintenance.
b. Would higher maintenance costs make you more or less likely to do what your uncle wants?
More likely, because the MB of not doing the maintenance rises and the MC of doing the maintenance also rises.
More likely, because the MB of not doing the maintenance falls and the MC of doing the maintenance also falls.
Less likely, because the MB of not doing the maintenance falls and the MC of doing the maintenance rises.
Less likely, because the MB of not doing the maintenance rises and the MC of doing the maintenance also rises.
Answer:
a. What will you be tempted to do?
the options do not make sense. You will be tempted to not do the maintenance because the MC of doing the maintenance is higher than the MB of doing the maintenance. In other words, you will probably value using the car for 2 years and not spending money more than spending $4,500 in car repairs.
b. Would higher maintenance costs make you more or less likely to do what your uncle wants?
Less likely, because the MB of not doing the maintenance rises and the MC of doing the maintenance also rises.
Whats the difference between a debit card and a credit card ? ( PLEASE GIVE LARGE EXPLANATION )
Answer:
The main difference between a debit card and a credit card is that a debit card withdrawals money from your current account balance while a credit card allows you to borrow money that is to be paid back in the future. Immediate vs. Future Payment
Explanation:
A free market is one where decisions regarding what and how much to produce are made by the market itself. This market is made up of buyers and sellers negotiating prices for goods and services. It is generally accepted that there are four degrees of competition within a free-market system. These include perfect competition, monopolistic competition, oligopoly, and monopoly. One benefit of the free market is that it allows open competition among companies. Businesses must provide customers with high-quality products at fair prices with good service. If they don't, they lose customers to businesses that do. Select the degree of competition that best describes each listed industry or business based on the description. 1. Automotive Industry: In this industry, there are a few sellers that tend to dominate the market.
Question Completion:
Automotive Industry
ACME Light and Power
Airline Industry
Soda Industry
Beet Industry
Cable Television Industry
Agricultural Commodities
Athletic Shoe Industry
Answer:
Industry Type of Competition
Automotive Industry Oligopoly
ACME Light and Power Monopoly
Airline Industry Oligopoly
Soda Industry Monopolistic Competition
Beet Industry Perfect Competition
Cable Television Industry Monopoly
Agricultural Commodities Perfect Competition
Athletic Shoe Industry Monopolistic Competition
Explanation:
a) Data:
Four degrees of competition within a free-market system. These include:
Perfect competition = many sellers of goods and services that are identical to one another.
Monopolistic competition = many firms who are selling non-identical goods and services.
Oligopoly = few sellers who do not dominate others but have influence.
Monopoly = one seller of a good or service.
A furniture company using accrual accounting purchased 20 sofas in November 2011. In December 2011, 8 of the 20 sofas were sold to customers. The customers all signed contracts agreeing to pay half the amount owed in February 2012 and the remaining half in March 2012. At the time of sale, the company was reasonably sure the customers would pay the amount owed. The furniture company pays its salespeople a commission on each sofa sold, with commissions for December 2011 sales paid in January 2012. The furniture company paid $3,000 for advertising that ran in the local newspaper in November 2011. In which month should advertising costs be expensed
Answer:
November 2011
Explanation:
Based on the information given if the company purchased 20 sofas in the month of November 2011 in which the company paid the amount of $3,000 for an advert that ran in the local newspaper in the same month of November 2011 which simply means that the month in which the advertising costs should be expensed is the month of NOVEMBER 2011 which is the month the company paid the amount of $3,000 for advertising in the local newspaper.
A total of $50,000 is borrowed and repaid with 60 monthly payments, with the fi rst payment occurring one month after receipt of the $50,000. The stated interest rate is 6% compounded monthly. What monthly payment should be made
Answer:
the monthly payment is $966.6401
Explanation:
The computation of the monthly payment is shown below:
= $50,000 × (1 ÷ 0.005) × (1-(1 ÷ ((1+0.005)^60)))
= $50,000 × 51.72556
= $966.6401
The rate of interest is
= 6% ÷ 12
= 0.005
Hence, the monthly payment is $966.6401
Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. There are some questions as to the proper classification of the following items: $52,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2025. Prepaid rent of $26,000, covering the period January 1, 2022, through December 31, 2023. Notes payable of $204,000. The notes are payable in annual installments of $22,000 each, with the first installment payable on March 1, 2022. Accrued interest payable of $14,000 related to the notes payable. Investment in equity securities of other corporations, $84,000. Cone intends to sell one-half of the securities in 2022. Required: Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported.
Answer:
Cone Corporation
Current Assets:
Marketable securities $42,000
Long-term Assets:
Restricted Cash $52,000
Prepaid rent $26,000
Investment in equity securities $42,000
Current Liabilities:
Notes payable $22,000
Accrued Interest $14,000
Long-term Liabilities:
Notes payable $182,000
Explanation:
a) Data and Calculations:
1. Restricted Cash for bonds payable which mature in 2025 = $52,000 (Long-term asset)
2. Prepaid rent of $26,000 for 2022 to 2023 (long-term asset)
3. Notes Payable: Current liability = $22,000 Long-term liability = $182,000 ($204,000 - $22,000)
4. Accrued interest payable = $14,000 (current liability)
5. Investment in equity securities of $42,000 (long-term asset) Marketable Securities $42,000 (current asset)
Presented below is information from Headland Computers Incorporated.
July 1 Sold $22,600 of computers to Robertson Company with terms 3/15, n/60. Headland uses the gross method to record cash discounts. Headland estimates allowances of $1,334 will be honored on these sales.
10 Headland received payment from Robertson for the full amount owed from the July transactions.
17 Sold $256,100 in computers and peripherals to The Clark Store with terms of 2/10, n/30.
30 The Clark Store paid Headland for its purchase of July 17.
Required:
Prepare necessary ournal entries for Headland computers.
Answer:
July 1
Dr Accounts receivable $22,600
Cr Cash $22,600
Dr Sales returns and allowances $1,334
Cr Allowances for Sales returns and allowances $1,334
July 10
Dr Cash $21,922
Dr Sales Discount $678
Cr Accounts Receivable $22,600
July 17
Dr Accounts receivable $256,100
Cr Sales revenue $256,100
July 30
Dr Cash $256,100
Cr Accounts receivable $256,100
Explanation:
Preparation of the necessary journal entries for Headland computers.
July 1
Dr Accounts receivable $22,600
Cr Cash $22,600
Dr Sales returns and allowances $1,334
Cr Allowances for Sales returns and allowances $1,334
July 10
Dr Cash $21,922
($22,600-$678)
Dr Sales Discount $678
(3%*$22,600)
Cr Accounts Receivable $22,600
July 17
Dr Accounts receivable $256,100
Cr Sales revenue $256,100
July 30
Dr Cash $256,100
Cr Accounts receivable $256,100
Suppose that Denver Financial Co. expects the exchange rate of the New Zealand dollar (NZ$) to appreciate from its current level of 0.5 to 0.55 in 30 days. Denver Financial seeks to capitalize on this potential opportunity. Suppose that Denver Financial begins by borrowing $30,000,000 and converting it to New Zealand dollars (NZ$). The following table shows the short-term interest rates (annualized) in the interbank market.
Currency Lending Rate Borrowing rate
(Adjusted for 30-day period) (Adjusted for 30-day period)
U.S. Dollars 6.62% 7.10%
New Zealand Dollars (NZ$) 6.38% 6.86%
Suppose that Denver Financial takes its NZ$60,000,000.00 and invests it. Denver Financial can earn a 0.0053 percent return after 30-days. Hint: Assume 360 days in a year At the end of 30-days, Denver Financial will have a total of NZ:___________(New Zealand dollars) from the investment.
a. $54287100
b. $42223300
c. $60319000
d. $48255200
Answer:
c. $60319000
Explanation:
My actual calculation was not exactly that number, it was NZ$60,318,000, but it is the closest option. You calculate it by multiplying the present value x (1 + interest rate) = $60,000,000 x (1 + 0.0053) = $60,000,000 x 1.0053 = $60,318,000
The question only asks to calculate the interest in NZ$, not to convert them to US$.
There are two steps for XYZ bakery to make their bread. One is to prepare the dough and bake the loaves, and the other one is to package the loaves. Bread is made in batches of 50 loaves per hour and it will take 20 minutes to place the 50 loaves in bags.
a. What is the utilization for the packaging?
b. What do you need to do to make the capacities to be roughly equal?
Answer:
a. Potential Packing Output/hr = (50 loaves/20 min) * 60 min = 150 loaves.
However, the production of 50 loaves takes 60 mins, so the packaging remains idle for 40 mins and the Actual Packing Output/hr = 50 loaves.
Hence, Capacity Utilization = (Actual Output/Potential Output) *100% = (50/150)*100% = 33.33%
b) Production output = 50 loaves/hr = 50 loaves/60 mins
Packing Output = 50 loaves/20 mins
So, to make both the capacities equal, the XYZ Bakery can simultaneously operate three batches to prepare the dough and bake i.e 150 loaves/60 mins for both production as well as packing.
Transactions for the Sheldon Cooper Company, which provides welding services, for the month of June are presented as follows.
June
1 Sheldon Cooper invests $4,000 cash in exchange for shares of common stock in a small welding business.
2 Purchases equipment on account for $1,200. 3 Pays $800 cash to landlord for June rent.
12 Bills P. Leonard $300 after completing welding work done on account.
Required:
Identify the accounts to be debited and credited for each transaction.
Answer:
June 1 Sheldon Cooper invests $4,000 cash in exchange for shares of common stock in a small welding business.
Account Debited: Cash
Account Credited: Common Stock capital
2 Purchases equipment on account for $1,200.
Account Debited: Equipment
Account Credited: Accounts Payable
3 Pays $800 cash to landlord for June rent.
Account Debited: Rent expense
Account Credited: Cash account
12 Bills P. Leonard $300 after completing welding work done on account.
Account Debited: Accounts receivable
Account Credited: Service revenue
White Diamond Flour Company manufactures flour by a series of three processes, beginning with wheat grain being introduced in the Milling Department. From the Milling Department, the materials pass through the Sifting and Packaging departments, emerging as packaged refined flour.
The balance in the account Work in Process-Sifting Department was as follows on July 1:
Work in Process-Sifting Department
(900 units, 3/5 completed):
Direct materials (900 × $2.05) $1,845
Conversion (900 × 3/5 × $0.40) 216
$2,061
The following costs were charged to Work in Process-Sifting Department during July:
Direct materials transferred from Milling Department:
15,700 units at $2.15 a unit $33,755
Direct labor 4,420
Factory overhead 2,708
During July, 15,500 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,100 units, 4/5 completed.
Required:
1. Prepare a cost of production report for the Sifting Department for July. If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent.
2. Journalize the entries for costs transferred from Milling to Sifting and the costs transferred from Sifting to Packaging. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Use the date July 31 for all journal entries.
3. Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and conversion costs. Round your answers to the nearest cent.
4. Discuss the uses of the cost of production report and the results of part (3)
Answer:
White Diamond Flour Company
Sifting Department
1. Cost of Production Report for July
Direct Materials Conversion Total
Beginning WIP 900 $1,845 $216 (3/5) $2,061
Transferred from Milling 15,700 33,755 7,128 40,883
Total costs of production $35,600 $7,344 $42,944
Equivalent units of production:
Completed 15,500 15,500 15,500
Ending WIP 1,100 1,100 880 (4/5)
Total equivalent units 16,600 16,380
Cost per equivalent unit:
Total costs of production $35,600 $7,344
Total equivalent units 16,600 16,380
Cost per equivalent unit $2.14 $0.45
Cost Assigned To:
Units transferred to packaging $33,170 (15,500*$2.14) $6,975 (15,500*$0.45) Total amount = $40,145
Ending WIP $2,354 (1,100*$2,14) + $396 (880*$0.45) = $2,750
2. Journal Entries:
Debit Work-in-Process - Sifting $40,833
Credit Finished Units- Milling $40,833
Debit Work-in-Process - Packaging $40,145
Credit Work-in-Process - Sifting $40,145
3. The increase or decrease in the cost per equivalent unit:
Direct Materials Conversion
July Cost per equivalent unit $2.14 $0.45
June Cost per equivalent unit $2.05 $0.40
Difference between July and June $0.09 $0.05
4. The Cost of Production Report helps management to know, for any period, the actual cost of production in each department and to identify the costs of units transferred to the Packaging Department and the costs of units under process in the Sifting Department at the end of the period. Determining the increase or decrease in cost per equivalent unit also enables management to know whether cost has increased or decreased per unit of production in order to institute appropriate controls for the acquisition of materials, labor, and other production expenses.
Explanation:
a) Data and Calculations:
Work in Process-Sifting Department
(900 units, 3/5 completed):
Direct materials (900 at $2.05) $1,845
Conversion (900 at 3/5 at $0.40) 216
Total balance $2,061
You are a financial advisor helping a young family create a college fund to provide for their daughter Mary’s education. Mary just turned 5. Her parents expect that she will go to Harvard University, starting school on her 18th birthday. She will only take four years to complete her degree. Currently, tuition and housing costs total $65,000 per year, which are paid at the beginning of each school year. These expenses are expected to increase at the rate of inflation which will run 4% annually for the next 25 years. In each year until Mary enters Harvard University, Mary’s parents will make a deposit into the college fund to exactly provide for all of the costs of her education when she enters college (the first deposit will be made one year from today). Since her parents expect their income to grow at the rate of 2% annually, they would like the amount that they put each year into the fund to increase in nominal terms at the rate of 2% annually. Mary’s parents can earn a rate of 10% annually on their investments and they face a 30% tax rate.
A. What do you expect tuition and housing to cost during Mary’s first year at Harvard University?
B. How much must be in the savings account on Mary’s 18th birthday after the last deposit has been made but before the first payment to Harvard University?
C. What should be the amount of the first payment?
D. Alternatively, Mary’s parents could open a 529 account that allows college savings to grow tax-free. If they saved in this account rather than in a normal investment fund, and still earned the same pre-tax return, how much should be their first deposit?
Answer:
a. Tuition and housing costs today = $65,000 per year
Inflation rate = 4%
Tuition and housing costs in 13 years = 65,000 * (1 + 0.04)^13
Tuition and housing costs in 13 years = $108,229.78
b. Amount to be in the savings account can be calculated using the present value of a growing annuity due formula
After tax rate of return = 10 * (1 - 0.3) = 7%, Growth rate = 4%, Number of year = 4
PV = P x (1 + r) * [1 - (1 + g)^n * (1 + r)^-n] / (r - g)
PV = 108,229.78 * (1 + 0.07) * [1 - (1 + 0.04)^4 * (1 + 0.07)^-4] / (0.07 - 0.04)
PV = $415,050.16
c. Amount of the first payment can be calculated using FV of a growing annuity
FV = $415,050.16, Number of years = 13, Growth rate = 2%, Rate of return = 10%
FV = P * [(1 + r)^n - (1 + g)^n] / (r - g)
415,050.16 = P * [(1 + 0.07)^13 - (1 + 0.02)^13] / (0.07 - 0.02)
P = $18,591.47
d. If the investments are tax free, the rate of return = 10%
Amount to be in the savings account = PV = P * (1 + r) * [1 - (1 + g)^n * (1 + r)^-n] / (r - g)
= 108,229.78 * (1 + 0.1) * [1 - (1 + 0.04)^4 * (1 + 0.1)^-4] / (0.1 - 0.04)
= $398,768.92
FV = P * [(1 + r)^n - (1 + g)^n] / (r - g)
398,768.92 = P * [(1 + 0.1)^13 - (1 + 0.02)^13] / (0.1 - 0.02)
P = $14,778.36
Adam kisses the sleeve of Eve’s blouse, an act to which she did not consent. Has Adam committed a tort and if so, which one? Explain why this is or is not a tort.
Answer:
Yes, Adam committed a tort.
Explanation:
In the situation, when Adam kisses the sleeve of Eve's blouse but without her consent, he committed a tort. A tort can be defined as a civil wrong which harm other. Here, Adam's act of kissing the sleeve was an invasion of Eve's privacy. It also caused her emotional distress. Therefore Adam has a legal liability in this case as it is tort.
1. Marina Stengart used her company laptop to communicate with her lawyer via her
personal, password-protected, web-based email account. The company's policy
stated:
E-mail and voice mail messages, internet use and communication, and computer
files are considered part of the company's business and client records. Such
communications are not to be considered private or personal to any individual
employee. Occasional personal use is permitted; however, the system should
not be used to solicit for outside business ventures, charitable organizations,
or for any political or religious purpose, unless authorized by the Director of
Human Resources.
After she filed an employment lawsuit against her employer, the company hired an
expert to access her emails that had been automatically stored on the laptop. Are
these emails private?
Answer
cool
Explanation:
i dont know
why do banks charge transaction fee?
Answer:
To make a profit and pay operating expenses,
Gordon is a new divisional manager at AskSocrates. In reorganizing his division, he must make some decisions regarding the span of control for management within his division. While observing the departments in his division, Gordon notices that some managers with wide spans of control seem to perform more effectively than other managers with similarly sized spans of control. Which of the following statements is most likely to be true regarding the high-performing managers?
a. These managers are paid higher salaries than the low-performing managers.
b. These managers have external locus of control.
c. The employees within their departments tend to compete to reach productivity goals, which boosts performance.
d. The employees within their departments score high on agreeableness.
e. The employees within their departments are highly skilled and very knowledgeable about their jobs.
Answer:
E) The employees within their departments are highly skilled and very knowledgeable about their jobs.
Explanation:
Gordon is a new divisional manager at AskSocrates. In reorganizing his division, he must make some decisions regarding the span of control for management within his division. While observing the departments in his division, Gordon notices that some managers with wide spans of control seem to perform more effectively than other managers with similarly sized spans of control. In this case , the statement that regards high-performing managers is that The employees within their departments are highly skilled and very knowledgeable about their jobs. skilled employees are ones that posses special skills as well as knowledge and training that are needed in their various departments or section of work. They tends to make things easier for their manager since they know more about their work.
American Fabrics has budgeted overhead costs of $990,000. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 450,000 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are: cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $360,000 and $630,000 is allocated to the design cost pool. Additional information related to these pools is as follows.
Wool Cotton Total
Machine hours 100,000 100,000 200,000
Number of setups 1,000 500 1,500
Calculate the overhead rates for activity-based costing using the traditional approach. (Round answers to 2 decimal places, e.g. $12.25.)
Overhead rates for activity-based costing
Cutting $... per machine hour
Design $... per setup
Overhead rates using the traditional approach ... per direct labor hour
Answer:
Results are below.
Explanation:
To calculate the activities rates, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Cutting= 360,000 / 200,000= $1.8 per machine hour
Design= 630,000 / 1,500= $420 per setup
Now, we need to determine the predetermined overhead rate for the whole company based on direct labor hours:
Predetermined manufacturing overhead rate= 990,000 / 450,000
Predetermined manufacturing overhead rate= $2.2 per direct labor hour
You bought two acres of land for $200,000 ten years ago. Although it is zoned for commercial use, it currently holds eight small, singlefamily houses. A property management firm that wants to continue leasing the eight houses has offered you $400,000 for the property. A developer wants to build a 12-story apartment building on the site and has offered $600,000. What value should you assign to the property
Answer:
$500,000
Explanation:
in order to calculate the value you should determine the expected return or sales price of the land = price of land x probability of sale
In this case, you have two offers and apparently you haven't decided which to choose, so the expected return = ($400,000 x 50%) + ($600,000 x 50%) = $200,000 + $300,000 = $500,000
