Answer:
Follows are the solution to this question:
[tex]\text{Total liabilities}= \$3,240\\\\\text{Net worth}=\$19,420\\\\\text{Total cash outflows}= \$3,730\\\\[/tex]
Explanation:
Calculating the values:
[tex]\text{Total assets} = \$22,660 (580 + 2,020 + 9,650+ 2,675+ 1,850+ 4,700 + 1185) \\\\\text{Total liabilities} = \$3,240 (300 + 2,940) \\\\\text{Net worth} = \$19,420 (\$22,660 - \$3,240) \\\\\text{Total cash inflows} = \$3,730\\\\\text{Total cash outflows} = \$3,730 (1300+ 670+ 360+ 245+ 175+ 130+ 210 + 155+ 290 + 195)[/tex]
E14.3 (LO 1) (Entries for Bond Transactions) Presented below are two independent situations. 1. On January 1, 2020, Simon Company issued $200,000 of 9%, 10-year bonds at par. Interest is payable quarterly on April 1, July 1, October 1, and January 1. 2. On June 1, 2020, Garfunkel Company issued $100,000 of 12%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1. Instructions For each of these two independent situations, prepare journal entries to record the following. a. The issuance of the bonds. b. The payment of interest on July 1. c. The accrual of interest on December 31. (Kieso 14-38) Kieso, Donald E., Jerry Weygandt, Terry Warfield. Intermediate Accounting, 17th Edition. Wiley, 02/2019. VitalBook file. The citation provided is a guideline. Please check each citation for accuracy before use.
Answer:
1) January 1, 2020
Dr Cash 200,000
Cr bonds payable 200,000
July 1, first coupon payment
Dr Interest expense 4,500
Cr Cash 4,500
December 31, fourth coupon payment
Dr Interest expense 4,500
Cr Interest payable 4,500
2) June 1, 2020
Dr Cash 104,000
Cr Bonds payable 100,000
Cr Bond interest payable 4,000
July 1, first coupon payment
Dr Interest expense 2,00
Cr Cash 2,000
December 31, accrued interest expense
Dr Interest expense 6,000
Cr Interest payable 6,000
The following data from the just completed year are taken from the accounting records of Mason Company:
Sales $660,000
Direct labor cost $81,000
Raw material purchases $140,000
Selling expenses $103,000
Administrative expenses $43,000
Manufacturing overhead applied to work in process $201,000
Actual manufacturing overhead costs $225,000
Inventories Beginning of Year End of Year
Raw materials $8,500 $10,500
Work in process $6,000 $21,000
Finished goods $79,000 $25,600
Required:
a. Prepare a schedule of cost of goods manufactured.
b. Prepare a schedule of cost of goods sold.
Answer:
See below
Explanation:
a. Schedule of cost of goods manufactured.
Opening raw materials $8,500
Add raw material purchases $140,000
Less ending raw materials $10,500
Direct material used $138,000
Direct labor cost $81,000
Manufacturing overhead applied to work in process $201,000
Total manufacturing costs $420,000
(Ratio Computations and Effect ofTransactions)
Presented below is information related to Carver Inc.
CARVER INC.
Balance Sheet
December 31, 2007
Cash $45,000 Notes payable (short-term) $50,000
Receivables $110,000 Accounts payable 32,000
Less: Allowance
15,000
95,000 Accrued liabilities 5,000
Inventories 170,000 Capital stock (par $5) 260,000
Prepaid insurance 8,000 Retained earnings 141,000
Land 20,000
Equipment (net)
150,000
$488,000
$488,000
CARVER INC.
Income Statement
For the year ended December31, 2007
Sales $1,400,000
Cost of goods sold
Inventory, Jan. 1, 2007 $200,000
Purchases
790,000
Cost of goods available forsale 990,000
Inventory, Dec. 31,2007
170,000
Cost of goods sold
820,000
Gross profit on sales 580,000
Operating expenses
170,000
Net income
$410,000
Instructions
(a) Compute the following ratios orrelationships of Carver Inc. Assume that the ending accountbalances are representative unless the information providedindicates differently. (Round answers to 2 decimalplaces.)
Current ratio. times
Inventory turnover. times
Receivables turnover. times
Earnings per share. $
Profit margin on sales. %
Rate of return on assets on December 31, 2007. %
(b) Indicate for each of the followingtransactions whether the transaction would improve, weaken, or haveno effect on the current ratio of Carver Inc. at December 31,2007.
Write off an uncollectible account receivable, $2,200.
Purchase additional capital stock for cash.
Pay $40,000 on notes payable (short-term).
Collect $23,000 on accounts receivable.
Buy equipment on account.
Give an existing creditor a short-term note in settlement ofaccount.
Answer:
Carver Inc.
a. Ratio Analysis:
Current ratio = Current assets/Current liabilities
= $318,000/87,000
= 3.66 times
Inventory turnover = cost of goods sold/average inventory
= $820,000/$185,000
= 4.43 times
Receivable turnover = Sales/Receivables
= $1,400,000/$95,000
= 14.74 times
Earnings per share = Net income/No. of shares
= $410,000/52,000
= $7.88 per share
Profit margin on sales = Net Income/Sales * 100
= $410,000/$1,400,000 * 100
= 29.29%
Rate of return on assets = Net income/Total assets * 100
= $410,000/$488,000 * 100
= 84.02%
b) Indication of whether the transaction would improve, weaken, or have no effect on the current ratio of Carver Inc. at December 31,2007:
1. weaken
2. weaken
3. no effect
4. no effect
5. weaken
6. no effect
Explanation:
a) Data and Calculations:
CARVER INC.
Balance Sheet
December 31, 2007
Cash $45,000 Notes payable (short-term) $50,000
Receivables $110,000 Accounts payable 32,000
Less: Allowance 15,000 95,000 Accrued liabilities 5,000
Inventories 170,000 Capital stock (par $5) 260,000
Prepaid insurance 8,000 Retained earnings 141,000
Land 20,000
Equipment (net) 150,000
$488,000 $488,000
CARVER INC.
Income Statement
For the year ended December 31, 2007
Sales $1,400,000
Cost of goods sold
Inventory, Jan. 1, 2007 $200,000
Purchases 790,000
Cost of goods
available for sale 990,000
Inventory, Dec. 31,2007 170,000
Cost of goods sold 820,000
Gross profit on sales 580,000
Operating expenses 170,000
Net income $410,000
Nona Curry started her own consulting firm, Larkspur, Inc., on May 1, 2022. The following transactions occurred during the month of May.
May 1 Stockholders invested $18,150 cash in the business in exchange for
common stock.
2 Paid $726 for office rent for the month. 3 Purchased $605 of supplies
on account.
5 Paid $182 to advertise in the County News.
9 Received $1,694 cash for services performed.
12 Paid $242 cash dividend.
15 Performed $5,082 of services on account.
17 Paid $3,025 for employee salaries.
20 Paid for the supplies purchased on account on May 3.
23 Received a cash payment of $1,452 for services performed on account
on May 15.
26 Borrowed $6,050 from the bank on a note payable.
29 Purchased office equipment for $2,420 paying $242 in cash and the
balance on account.
30 Paid $218 for utilities.
A) Prepare an income statement for the month of May 2017.
B) Prepare a classified balance sheet at May 31, 2017.
Thankyou but im not interested
For the current year, Power Cords Corp. expected to sell 42,100 industrial power cords. Fixed costs were expected to total $1,650,500; unit sales price was expected to be $3,800; and unit variable costs were budgeted at $2,300.
Power Cord Corp.'s margin of safety (MOS) in sales dollars is: (Do not round intermediate calculations.)
A. $155,798,733.
B. $189,973,732.
C. $161,718,730.
D. $173,523,730.
E. $145,348,733.
Answer:
A. $155,798,733.
Explanation:
The first task to determine the break-even point in sales dollars as shown below:
break-even point in sales dollars=fixed costs/contribution margin ratio
fixed costs=$1,650,500
contribution margin ratio=unit contribution margin/sales price
unit contribution margin=unit sales price- unit variable costs
unit contribution margin=$3,800-$2,300
unit contribution margin=$1,500
contribution margin ratio=$1500/$3,800
contribution margin ratio=39.47%
break-even point in sales dollars=$1,650,500/39.47%
break-even point in sales dollars=$4,181,657
margin of safety (MOS) in sales dollars=current sales- break-even point in sales dollars
current sales=42,100*$3,800=$159,980,000
margin of safety (MOS) in sales dollars=$159,980,000-$4,181,657=$155,798,343(closest to $155,798,733)
A bachelors degree in which of the following areas is a good choice for an arts an communication manager?
A. business
B. art history
C. theater
Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below:
Materials Labor Overhead
Work in process, May 1 $22,300 $35,694 $173,247
Cost added during May $135,305 $23,796 $115,498
Equivalent units of production 1,900 1,800 1,700
Required:
a. Compute the cost per equivalent unit for materials, for labor, and for overhead. (Round your answers to 2 decimal places.)
b. Compute the total cost per equivalent whole unit.
Answer:
Materials Labor Overhead
Work in process, May 1 $22,300 $35,694 $173,247
Cost added during May $135,305 $23,796 $115,498
Total $157,605 $59,490 $288,745
a. Compute the cost per equivalent unit for materials, for labor, and for overhead. (Round your answers to 2 decimal places.)
Materials cost per EUP = $157,605 / 1,900 = $82.95
Labor cost per EUP = $59,490 / 1,800 = $33.05
Overhead cost per EUP = $288,745 / 1,700 = $169.85
b. Compute the total cost per equivalent whole unit.
total cost per EUP = $82.95 + $33.05 + $169.85 = $285.85
Problem 3 (Current Liability Entries and Adjustments) Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system: 1. On February 2, the corporation purchased goods from Martin Company for $70,000 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26. 2. On April 1, the corporation bought a truck for $50,000 from General Motors Company, paying $4,000 in cash and signing a 1-year, 12% note for the balance of the purchase price. 3. On May 1, the corporation borrowed $83,000 from Chicago National Bank by signing a $92,000 zerointerest-bearing note due 1 year from May 1. 4. On August 1, the board of directors declared a $300,000 cash dividend that was payable on September 10 to stockholders of record on August 31. Instructions (a) Make all the journal entries necessary to record the transactions above using appropriate dates. (b) Edwardson Corporation's year-end is December 31. Assuming that no adjusting entries relative to the transactions above have been recorded, prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements at December 31. Assume straight-line amortization of discounts.
Answer:
1. February 2
Dr Purchases68,600
Cr Account payable 68,600
February 26
Dr Account payable 68,600
Dr Purchase Discount loss 1,400
Cr Cash 70,000
December 31
No adjustment necessary
2. April 1
Dr Trucks 50,000
Cr Cash 4,000
Cr Note payable 46,000
December 31
Dr Interest expenese 4,140
Cr Interest Payable 4,140
3. May 1
Dr Cash 83,000
Dr Discount on notes payable 9,000
Cr Notes payable 92,000
December 31
Dr Interest expense 6,000
Cr Discount on notes payable 6,000
4. Aug 1
Dr Dividend $300,000
Cr Dividend payable $300,000
Sept 10
Dr Dividend payable$300,000
Cr Cash $300,000
December 31
No adjustment necessary
Explanation:
Preparation of the journal entries
1. February 2
Dr Purchases68,600
[$70,000 * (100%-2%)]
Cr Account payable 68,600
February 26
Dr Account payable 68,600
Dr Purchase Discount loss 1,400
(70,000-68,600)
Cr Cash 70,000
December 31
No adjustment necessary
2. April 1
Dr Trucks 50,000
Cr Cash 4,000
Cr Note payable 46,000
(50,000-4,000)
December 31
Dr Interest expenese 4,140
Cr Interest Payable 4,140
($46,000* 12% * 9/12 = $4,140)
3. May 1
Dr Cash 83,000
Dr Discount on notes payable 9,000
Cr Notes payable 92,000
December 31
Dr Interest expense 6,000
Cr Discount on notes payable 6,000
($9,000 * 8/12 (STRAIGHT-LINE) = $6,000)
4. Aug 1
Dr Dividend $300,000
Cr Dividend payable $300,000
Sept 10
Dr Dividend payable$300,000
Cr Cash $300,000
December 31
No adjustment necessary
A radiology clinic is considering buying a new $700,000 x-ray machine, which will have no salvage value after installation because the cost of removal will be approximately equal to its sales value. Maintenance is
estimated at $24,000 per year as long as the machine is owned. After 10 years the x-ray source will be depleted and the machine must be scrapped. Which of the following represents the most economic life of this x-ray machine?
a.One year, because it will have no salvage after installation
b. Five years, because the maintenance costs are constant
c. Ten years, because maintenance costs don't increase
d. Cannot be determined from the information given.
Answer: c. Ten years, because maintenance costs don't increase.
Explanation:
With the maintenance costs constant at $24,000 a year, the machine is still expected to go 10 years before it's x-ray source is depleted and it has to be scrapped.
This means that the useful life is therefore 10 years because the maintenance cost will not increase but will still keep the machine going for 10 years.
Last year Hamdi Corp. had sales of $500,000, operating costs of $450,000, and year-end assets (which is equal to its total invested capital) of $435,000. The debt-to-total-capital ratio was 17%, the interest rate on the debt was 7.5%, and the firm's tax rate was 35%. The new CFO wants to see how the ROE would have been affected if the firm had used a 50% debt-to-total-capital ratio. Assume that sales, operating costs, total assets, total invested capital, and the tax rate would not be affected, but the interest rate would rise to 8.0%. By how much would the ROE change in response to the change in the capital structure
Answer:
1.74%
Explanation:
17% Debt 50% Debt
Sales $500,000 $500,000
Less: Cost $450,000 $450,000
Less: Interest $5,546 $17,400
Profit before tax $44,454 $32,600
Less: Tax at 35% $15,559 $11,410
Net Income $28,895 $21,190
Equity $361,050 $217,500
Return on Equity 8.00% 9.74%
Change in ROE = 9.74% - 8.00% = 1.74%
Workings
Interest (17% Debt) = 43,500*17%*7.5% = $5,546
Interest (50% Debt) = 43,500*50%*8% = $17,400
Tax (17% Debt) = $44,454 * 0.35 = 15,559
Tax (50% Debt) = $32,600 * 0.35 = 11,410
Equity (17% Debt) =435,000*83% = 361,050
Equity (50% Debt) = 435,000*50% = $217,500
Return on Equity = $28,895/$361,050 = 8.00%
Return on Equity = $21,190/$217,500 = 9.74%
At a local family bakery in Hyde Park, a neighbourhood of Chicago, Illinois, the marginal products of the first, second, and third sales clerks are 20, 17, and 11 customers served, respectively. The total product of the first two sales clerks is'\
Answer: 37
Explanation:
Marginal product is simply referred to as the additional output that's generated based on the additional input added to the production.
In this case, the total product of the first two sales clerks will be gotten by adding the marginal product of the first two sales clerk which will be:
= 20 + 17
= 37
Today manufacturers are relying more heavily on developing an MRP system for purchasing. the bidding process to obtain the lowest price. developing close relationships with just a few suppliers to secure affordable prices. many suppliers to keep their leverage.
Answer:
many suppliers to keep their leverage.
Explanation:
2. What are the advantages/disadvantages of being right-brain thinker in terms of the
capabilities?
Answer:
The answer is below
Explanation:
Advantages of being a right thinker in terms of the capabilities are:
Such person possesses these abilities:
1. creativity
2. free-thinking ability
3. ability to see the big picture
4. spontaneous ability
5. inclined to visualize the situation.
Disadvantages may include the following
1. Not strong in the area of analytical thinking;
2. Les logical evaluation;
3. less detail- and fact-oriented
numerical
How do you make people interested in your business?
Identify Your Ideal Client. It's easier to look for customers if you know the type of consumers you seek.
Discover Where Your Customer Lives.
Know Your Business Inside and Out.
Position Yourself as the Answer.
Try Direct Response Marketing.
Build Partnerships.
Follow Up.
Attract New Customers Using Social Media. Optimizing your social media accounts takes very little time to do and can significantly increase your reach.
Improve Website SEO.
Engage with Loyal Customers.
Collaborate with Local Business Partners.
Social Media Giveaways.
Explanation:
Ask for referralsNetworkoffer discounts and incentive for new customers onlyRe- contact old customersImprove your websitepartners with complementary businesspromote your expertiseuse online reviews to your advantagePowell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 20192018 Sales$3,220.0$2,800.0 Operating costs excluding depreciation and amortization2,576.02,380.0 EBITDA$644.0$420.0 Depreciation and amortization90.078.0 Earnings before interest and taxes (EBIT)$554.0$342.0 Interest70.861.6 Earnings before taxes (EBT)$483.2$280.4 Taxes (25%)193.3112.2 Net income$289.9$168.2 Common dividends$260.9$134.6 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 20192018 Assets Cash and equivalents$36.0$31.0 Accounts receivable370.0308.0 Inventories678.0616.0 Total current assets$1,084.0$955.0 Net plant and equipment902.0784.0 Total assets$1,986.0$1,739.0 Liabilities and Equity Accounts payable$315.0$252.0 Accruals269.0224.0 Notes payable64.456.0 Total current liabilities$648.4$532.0 Long-term bonds644.0560.0 Total liabilities$1,292.4$1,092.0 Common stock614.2596.6 Retained earnings79.450.4 Common equity$693.6$647.0 Total liabilities and equity$1,986.0$1,739.0 Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign. What was net operating working capital for 2018 and 2019
Answer:
Calculation of net operating working capital
Particulars 2018 2019
Current asset A $955 million $1,084 million
Current liability B $532.0 million $648.4 million
Net working capital A-B $423 million $435.6 million
Part II: Article II, Section I of the U.S. Constitution provides that the president must "take care that the laws be faithfully executed." Presidents have used this authority to issue executive orders, which are orders to federal agencies that are a part of the executive branch and which contain detailed instructions on how laws enacted by Congress should be carried out.
Presidents are not specifically given the power to issue executive orders by the U.S. Constitution. Is it appropriate for the president to exercise powers that the Constitution does not specifically grant to him or her? Why, or why not?
Answer: Yes it is.
Explanation:
The Constitution puts the President at the head of the Executive branch of government and provides that the President should ensure that the laws of the land are faithfully executed.
Seeing as executive orders are issued to members of the executive - which are under the President - and are done to ensure that the laws of the land are carried out, the President is not only following the Constitution's directives in Article II, Section I of the Constitution but doing it within their power as head of the executive.
Executive orders are therefore an implied constitutional power that the President has.
Your firm has a credit rating of Baa. You notice that the credit spread for five-year maturity Baa debt is 150 basis points (1.50%). Your firm is issuing a five-year 5% semiannual coupon bond. You see that new five-year Treasury notes are being issued at par with a coupon rate of 3.5%. Should your bond be issued at par, at a discount, or at a premium?
Answer: Par
Explanation:
The credit spread measures the difference between the risk free rate/ yield for a certain type of security and the yield the security offers.
The credit spread here is 1.50%.
The risk free rate is 3.5%.
The expected yield in the market for the type of security you are issuing is therefore:
= 3.5% + 1.50%
= 5.00%
Your Baa bond is expected to have a yield of 5% which is the coupon rate you are issuing it at.
Bond will therefore be issued at Par which is what happens when the Coupon and the Yield are equal.
Mobo, a wireless phone carrier, completed its first year of operations on October 31. All of the year's entries have been recorded, except for the following: At year-end, employees earned wages of $6,800, which will be paid on the next payroll date, November 6. At year-end, the company had earned interest revenue of $3,800. It will be collected December 1. Required: What is the annual reporting period for this company
Answer:
Explanation:
Missing word "2. Identify whether each required adjustment is a deferral or an accrual. First transaction is deferral O Second transaction is deferral Second transaction is accrual Both transactions are deferral O Both transactions are accruals First transaction is accrual 3. Show the accounting equation effects of each required adjustment. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Transaction Assets Liabilities + Stockholders' Equity b. 4. Why are these adjustments needed? Adjustments are needed to ensure the financial statements are up-to-date and complete Adjustments are needed to ensure the financial statements are prepared as per cash basis."
1. The annual reporting period for this company is November 1 through October 31
2. Both the transactions are accruals.
3. S/n Assets = Liabilities + Stockholders equity
a. No effects S&Wages payable $6,800 S&Wages Expenses -$6,800
b. I. receivable(3,800) No effect Interest revenue $3,800
4. Adjustments are required to ensure that the financial statements are up-to-date and complete.
Identifying the Five Steps in the Revenue Recognition Process
Match each step 1 through 5 with the sales process described in a through e.
Step 1: identify contract(s) with customer.
Step 2: identify performance obligation(s) in the contract.
Step 3: determine transaction price.
Step 4: allocate transaction price to performance obligation(s).
Step 5: Recognize revenue when (or as) each performance obligation is satisfied through a transfer of control
a. The total price for the computer and two years of services is $800.
b. Customer takes possession of the computer and benefits from the data service over two years.
c. Customer will receive the computer immediately and will benefit from two years of data services for the tablet.
d. The standalone selling price of the computer is $500 and of the two-year service contract is $300.
e. Customer agrees to purchase one computer plus two years of data services for an agreed upon price.
Answer:
Step 1: Identify contract(s) with customer
Correct Match: Customer agrees to purchase one computer plus two years of data services for an agreed upon price.
Step 2: identify performance obligation(s) in the contract
Correct Match: Customer will receive the computer immediately and will benefit from two years of data services for the tablet.
Step 3: Determine transaction price
Correct Match: The total price for the computer and two years of services is $800.
Step 4: Allocate transaction price to performance obligation(s)
Correct Match: The standalone selling price of the computer is $500 and of the two-year service contract is $300.
Step 5: Recognize revenue when (or as) each performance obligation is satisfied through a transfer of control
Correct Match: Customer takes possession of the computer and benefits from the data service over two years.
On December 31, Fighting Okra Cooking Services reports the following revenues and expenses.
Service revenue $77,000
Postage expense 1,600
Legal fees expense 2,500
Rent expense 10,800
Salaries expense 26,000
Supplies expense 15,500
In addition, the balance of common stock at the beginning of the year was $300,000, and the balance of retained earnings was $36,000. During the year, the company issued additional shares of common stock for $27,000 and paid dividends of $14,000.
Required:
a. Prepare an income statement.
b. Prepare a statement of stockholders' equity.
Answer:
See below
Explanation:
A. Income statement
Service revenue
$77,000
Less:
Postage expenses
$1,600
Legal fees expense
$2,500
Rent expense
$10,800
Salaries expense
$26,000
Supplies expense
$15,500
Net income
$20,600
B. Statement of stockholder equity
This is computed as
= Total assets - Total liabilities
= Retained earnings $36,00 + Dividends $14,000 + Net income $20,600 - $300,000
You are looking at a one-year loan of $26,000. The interest rate is quoted as 11 percent plus two points. A point on a loan is 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay two points to the lender up front and repay the loan later with 11 percent interest.
What rate would you actually be paying here? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Interest rate %
Answer:
the rate of interest is 13.27%
Explanation:
The computation of the actual rate paid is shown below;
Present value is
= $26,000 - 2% of $26,000
= $26,000 - $520
= $25,480
The future value is
= $26,000 × (1 + 0.11)
= $28,860
Now as we know that
Future value = Present value × (1 + rate of interest)^number of years
$28,860 = $25,480 × (1 + rate of interest)
So, the rate of interest is 13.27%
George secured an adjustable-rate mortgage (ARM) loan to help finance the purchase of his home 5 years ago. The amount of the loan was $350,000 for a term of 30 years, with interest at the rate of 9%/year compounded monthly. Currently, the interest rate for his ARM is 3.5%/year compounded monthly, and George's monthly payments are due to be reset. What will be the new monthly payment
Answer:
$1,680
Explanation:
during the first 5 years, the monthly payment will = $2,816.18
I prepared an amortization schedule. After the 60th payment, the principal owed = $335,580
the new monthly payment considering that the interest rate fell significantly to 3.5% = $1,680
calculation to determine the monthly payment:
present value of the loan = monthly payment x PVIFA
monthly payment = present value / PVIFA
PVIFA, 0.29167%, 300 periods = 199.7501
monthly payment = $335,580 / 199.7501 = $1,680
is it right to kick someone out just because they are not on the lease and or had been evicted in the past?
The following information is available pertaining to Bonita Division, that uses a plant-wide overhead rate based on machine hours: Mixing Dept. Finishing Dept. Total Overhead $30,000 $60,000 $90,000 Direct labor-hours 7,500 2,500 10,000 Machine-hours 2,500 7,500 10,000 Production information pertaining to Job 101: Mixing Dept. Finishing Dept. Total Prime costs $5,000 $0 $5,000 Direct Labor-hours 250 0 250 Machine-hours 10 10 20 Units produced 500 0 500 What are the total overhead costs assigned to Job 101
Answer:
$180
Explanation:
Calculation for What are the total overhead costs assigned to Job 101
Using this formula
Total overhead costs assigned to Job 101=(Total Overhead/Total Machine-hours)*Machine-hours
Let plug in the formula
Total overhead costs assigned to Job 101 = ($90,000/10,000) *20
Total overhead costs assigned to Job 101=9*20
Total overhead costs assigned to Job 101=$180
Therefore Total overhead costs assigned to Job 101 will be $180
Sunland Company began operations in July 2019. At the end of the month, the company prepares monthly financial statements. It has the following information for the month. 1. At July 31, the company owed employees $1,800 in salaries that the company will pay in August. 2. On July 1, the company borrowed $32,000 from a local bank on a 10-year note. The annual interest rate is 12%. 3. Service revenue unrecorded in July totaled $2,600. Prepare the adjusting entries needed at July 31, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
July 31, 2019
Dr Salaries and Wages Expense $1,800
Cr Salaries and Wages Payable $1,800
Dr Interest Expense 320
Cr Interested Payable 320
Dr Accounts Receivable $2,600
Cr Service Revenue $2,600
Explanation:
Preparation of the adjusting entries needed at July 31, 2019
July 31, 2019
Dr Salaries and Wages Expense $1,800
Cr Salaries and Wages Payable $1,800
Dr Interest Expense 320
Cr Interested Payable 320
[$32,000*12%-($32,000*12%*11/12)]
Dr Accounts Receivable $2,600
Cr Service Revenue $2,600
Your client, Keith Teal Leasing Company, is preparing a contract to lease a machine to Souvenirs Corporation for a period of 27 years. Teal has an investment cost of $430,300 in the machine, which has a useful life of 27 years and no salvage value at the end of that time. Your client is interested in earning an 11% return on its investment and has agreed to accept 27 equal rental payments at the end of each of the next 27 years.
A. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 0 decimal places, e.g. 5,265.)
B. Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,265. Record journal entries in the order presented in the problem.)
Answer:
Souvenirs Corporation (Lessee)
A. Amortization Schedule
Beginning Balance Interest Principal Ending Balance
1 $430,300.00 $47,333.00 $3,007.44 $427,292.56
2 $427,292.56 $47,002.18 $3,338.26 $423,954.31
3 $423,954.31 $46,634.97 $3,705.46 $420,248.84
4 $420,248.84 $46,227.37 $4,113.06 $416,135.78
5 $416,135.78 $45,774.94 $4,565.50 $411,570.28
6 $411,570.28 $45,272.73 $5,067.71 $406,502.57
7 $406,502.57 $44,715.28 $5,625.15 $400,877.42
8 $400,877.42 $44,096.52 $6,243.92 $394,633.50
9 $394,633.50 $43,409.68 $6,930.75 $387,702.74
10 $387,702.74 $42,647.30 $7,693.14 $380,009.61
11 $380,009.61 $41,801.06 $8,539.38 $371,470.23
12 $371,470.23 $40,861.73 $9,478.71 $361,991.52
13 $361,991.52 $39,819.07 $10,521.37 $351,470.15
14 $351,470.15 $38,661.72 $11,678.72 $339,791.43
15 $339,791.43 $37,377.06 $12,963.38 $326,828.05
16 $326,828.05 $35,951.09 $14,389.35 $312,438.69
17 $312,438.69 $34,368.26 $15,972.18 $296,466.51
18 $296,466.51 $32,611.32 $17,729.12 $278,737.39
19 $278,737.39 $30,661.11 $19,679.32 $259,058.07
20 $259,058.07 $28,496.39 $21,844.05 $237,214.02
21 $237,214.02 $26,093.54 $24,246.89 $212,967.12
22 $212,967.12 $23,426.38 $26,914.05 $186,053.07
23 $186,053.07 $20,465.84 $29,874.60 $156,178.47
24 $156,178.47 $17,179.63 $33,160.81 $123,017.67
25 $123,017.67 $13,531.94 $36,808.49 $86,209.17
26 $86,209.17 $9,483.01 $40,857.43 $45,351.75
27 $45,351.75 $4,988.69 $45,351.75 -$0.00
Payment Every Year = $50,340.44
B. Journal Entries for first two years of the lease for the Lessee:
2020:
Debit Right of Use Asset $1,359,191.80
Credit Lease Liability $1,359,191.80
To record the lease for 27 years.
Debit Lease Liability $3,007.44
Debit Interest on Lease $47,333.00
Credit Cash $50,340.44
To record the lease interest expense.
2021:
Debit Lease Liability $3,338.26
Debit Interest on Lease $47,002.18
Credit Cash $50,340.44
To record the lease interest expense.
Explanation:
a) Data and Calculations
Cost of Machine = $430,300
Useful life of machine = 27 years
Salvage value = $0
Expected return on investment = 11%
Period of equal rental payments = 27 years
From the online financial calculator:
Payment Every Year = $50,340.44
Total of 27 Payments = $1,359,191.80
Total Interest = $928,891.80
Amortization Table shows that at the end of 27 years:
Principal = 32%
Interest = 68% of the total lease payments.
Blaine Air Transport Service, Inc., providing air delivery service for businesses, has been in operation for three years. The following transactions occurred in February: February 1 Paid $250 for rent of hangar space in February. February 2 Purchased fuel costing $580 on account for the next flight to Dallas. February 4 Received customer payment of $860 to ship several items to Philadelphia next month. February 7 Flew cargo from Denver to Dallas; the customer paid $840 for the air transport. February 10 Paid $170 for an advertisement in the local paper to run on February 19. February 14 Paid pilot $2,500 in wages for flying in January (recorded as expense in January). February 18 Flew cargo for two customers from Dallas to Albuquerque for $4,100; one customer paid $1,600 cash and the other asked to be billed. February 25 Purchased on account $2,460 in spare parts for the planes. February 27 Declared a $130 cash dividend to be paid in March.
Required:
Prepare journal entries for each transaction. Be sure to categorize each account as an asset (A), liability (L), stockholders
Answer:
Following are the journal entries for each transaction:
Explanation:
Date Account-title Dr. Cr.
February 1 expense of rent 250
Cash 250
February 2 expense of fuel 580
Payable Accounts 580
February 4 Cash 860
Unearned income 860
February 7 Cash 840
Transport income 840
February 10 Advertising expense 170
Cash 170
February 14 Payable Wages 2500
Cash 2500
February 18 Cash 1800
Accounts receivable (4100-1600) 2500
Transport income 4100
February 25 Supplies 2460
Payable Accounts 2460
February 27 Retained earnings/ Cash dividend 130
Dividends payable 130
You purchase a property with a Market Value of $520,000 in 2005 using 5-year Interest Only 90% Loan-to-Value financing. In 2010, the Market Value of the property drops to $460,000. You are considering refinancing. The Loan-to-Value you can get for refinancing is only 70%. How much Total Cash Out of Pocket would you need to have to go through with the refinancing and pay back the original loan Principal outstanding
Answer:
$155,660
Explanation:
Note: The table to question is attached below
==> Loan to Value 90% in 2005
==> Loan to Value 70% in 2010
Loan Amount in 2005 = $520,000*0.9 = $468,000
Loan Amount in 2010 = $460,000*0.7 = $322,000
Loan Amount owed = $468,000
Through Refinancing = $322,000
Total cash out of pocket = $322,000*3% + $468,000 - $322,000
Total cash out of pocket = $9,660 + $468,000 - $322,000
Total cash out of pocket = $155,660
how important are the development of the many management theories
Answer:
Explanation:
Management theories help organizations to focus, communicate, and evolve. Using management theory in the workplace allows leadership to focus on their main goals. When a management style or theory is implemented, it automatically streamlines the top priorities for the organization.
Beachside Realty rents condominiums and furnishings. Below is the adjusted trial balance at December 31.
Debit Credit
Cash 1,500
Accounts Receivable 2,000
Interest Receivable 100
Prepaid Insurance 1,600
Notes Receivable (long-term) 2,800
Equipment 15,000
Accumulated Depreciation 3,000
Accounts Payable 2,400
Accrued Expenses Payable 3,920
Income Taxes Payable 2,700
Unearned Rent fees 500
Common Stock 5,000
Retained Earnings 2,700
Dividends 2,000
Rent Fees Earned 37,000
Furniture Rental Revenue 1,200
Interest Revenue 100
Wages Expense 19,000
Depreciation Expense 1,800
Utilities Expense 320
Insurance Expense 700
Maintenance Expense 9,000
Income Tax Expense 2,700
58,520 58,520
Prepare the entry required to close the expense accounts at the end of the period.
Answer and Explanation:
The journal entry required to close the expense account is given below:
Income summary Dr $33,520
To Wages Expense $19,000
To Depreciation Expense $1,800
To Utilities Expense $320
To Insurance Expense $700
To Maintenance Expense $9,000
To Income Tax Expense $2,700
(being the expenses accounts are closed)
