Answer:
2,914.65
2nd question : 12,190.50
Explanation:
income to be taxed is equal to (110,100 - 72,000) = 38,100 conchs. The tax itself is 7.65% × 38,100 = 2,914.65
2nd explaination: 25% × (85,650 - 72,000) = 25% × 13,650 = 3,412.50 conchs
28% × (45,000 - 13,650) = 28% × 31,350 = 8,778
Total income tax = 3,412.50 + 8,778 = 12,190.50 .
"Income to be taxed is equal to = 2,914.65 and The Total income tax is = 12,190.50. Find more information check below".
Calculation of Income TaxPart-1: income to be taxed is equal to (110,100 - 72,000) = 38,100 conchs.
Therefore, The tax itself is 7.65% × 38,100 is = 2,914.65
Part-2: 25% × (85,650 - 72,000) = 25% × 13,650 = 3,412.50 conchs
Then, 28% × (45,000 - 13,650) = 28% × 31,350 = 8,778
Therefore, The Total income tax is = 3,412.50 + 8,778 = 12,190.50.
Find more information about Income Tax here:
https://brainly.com/question/26410519
Breakdown on Daily Allowance
Name:
Р
Daily Allowance:
Less: Daily Expenses
Food
P
Fare
School Supplies
Recreation
Others
Total
P
Answer:
Name : Peter
Daily Allowance: $120
Less daily Expense:
Food $45
Fare $27
School Supplies $5
Recreation $15
Others $20
Total : $8 Savings.
Explanation:
Peter gets daily allowance of $120 for the work. He has daily expenses which he has to fund with his daily allowance. The peter has net saving of $8 everyday. The food and other running expenses are all funded with his daily allowance. The total for all the expense is $112. Net saving is $120 - $112 = $8.
Item9 Time Remaining 34 minutes 55 seconds00:34:55 Item 9 Time Remaining 34 minutes 55 seconds00:34:55 Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production volume 13,900 units 15,000 units Direct materials $ 813,150 $ 877,500 Direct labor $ 215,450 $ 232,500 Manufacturing overhead $ 1,011,500 $ 1,024,150 The best estimate of the total variable manufacturing cost per unit is: (Round your intermediate calculations to 2 decimal places.) Multiple Choice
Answer:
$85.50
Explanation:
Particulars Amount Amount Difference
Direct materials $813,150 $877,500 $74,350
Direct labor $215,450 $232,500 $17,050
Manufacturing OH $1,011,500 $1,024,150 $12,650
T.V. Overheads 2040100 2134150 $94,050
Production Volume 13,900 15,000 1,100
Variable Cost per unit $85.50
Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management December 2011 of a circuit flaw in an amplifier that poses a potential fire hazard. An intense investigation indicated that a product recall is virtually certain, estimated to cost the company $2 million. The fiscal year ends on December 31.
Required:
1. Should this loss contingency be accrued, disclosed only, or neither? Explain.
2. What loss, if any, should Sound Audio report in its 2011 income statement?
3. What liability, if any, should Sound Audio report in its 2011 balance sheet?
4. Prepare any journal entry needed.
Answer:
1. Accrued
2. $2 Million
3. $2 Million
4. Dr Loss product recall (Expense) $2 Million
Cr Liability product recall (Liability) $2 Million
Explanation:
1. Yes, Based on the information given this loss contingency should be accrued reason been that all the necessary requirement are met and secondly the loss is tend to be probably and lastly the said amount can be estimated which is why the recorded liability is accrued.
2. The loss that Sound Audio should report in its 2011 income statement is $2 Million
3. The liability that Sound Audio should report in its 2011 balance sheet would also be $2 Million
4.Preparation of any journal entry needed
Dr Loss product recall (Expense) $2 Million
Cr Liability product recall (Liability) $2 Million
We observe the following annualized yields on four Treasury securities: (75%)
Maturity (years) Yield-to-maturity (%)
0.5 4.00
1 4.50
1.5 5.00
2 5.50
The par is $1000 for all the securities. The one with 0.5-year to mature is a zero coupon bond. Al other securities are coupon-bearing bonds selling at par. Note that, for par bonds, the coupon rate equals YTM. (20 points)
1. Calculate the spot rates for the maturities of 0.5, 1, 1.5, and 2 years.
2. What is the price of a 2-year bond with an 8% annual coupon rate (assume $1000 par)?
3. Suppose a 1-year zero-coupon bond with a par value of S1000 is selling at $900. Is there any arbitrage opportunity? If there is, construct an arbitrage portfolio and show the profit.
4. Calculate the one-period-ahead forward rates from 0 to 0.5, from 0.5 to 1, from 1 to 1.5, and from 1.5 to 2.
5. One year from now, you plan to purchase a then one-year bond with a 1000 par and an 8% annual coupon rate. What is the expected price of the bond? Assume the expectation hypothesis holds. Under the expectation hypothesis, the expected future spot rate equals the forward rate.
Answer:
Explanation:
1.
From the given information;
The spot rate for maturity at 0.5 year [tex](X_1) = 4\%/2 = 2\%[/tex]
The spot rate for maturity at 1 year is:
= [tex]\dfrac{22.5}{(1+X_1)}+ \dfrac{1000 + 22.5}{(1+X_2)^2}=1000[/tex]
= [tex]\dfrac{22.5}{(1+0.02)}+ \dfrac{1000 + 22.5}{(1+X_2)^2}=1000[/tex]
= [tex]\dfrac{22.5}{(1+0.02)}+ \dfrac{1022.5}{(1+X_2)^2}=1000[/tex]
By solving for [tex]X_2[/tex];
[tex]X_2[/tex] = 2.253%
The spot rate for maturity at 1.5 years is:
[tex]= \dfrac{25}{(1+X_1)}+ \dfrac{25}{(1+X_2)^2}+ \dfrac{1000 + 25}{(1+X_3)^3}=1000[/tex]
Solving for [tex]X_3[/tex]
[tex]X_3[/tex] = 2.510%
The spot rate for maturity at 2 years is:
[tex]= \dfrac{27.5}{(1+X_1)}+ \dfrac{27.5}{(1+X_2)^2}+ \dfrac{27.5}{(1+X_3)^3} +\dfrac{1000+27.5}{(1+X_4)^4} =1000[/tex]
By solving for [tex]X_4[/tex];
[tex]X_4[/tex] = 2.770%
Recall that:
Coupon rate = yield to maturity for par bond.
Thus, the annual coupon rates are 4%, 4.5%, 5%, and 5.5% for 0.5, 1, 1.5, 2 years respectively.
2.
For n years, the price of n-bond is:
[tex]= \dfrac{cash \ flow \ at \ year \ 1}{1+X_1}+ \dfrac{cash \ flow \ at \ year \ 2}{(1+X_2)^2}+... + \dfrac{cash \ flow \ at \ year \ b}{(1+X_n)^n}[/tex]
Thus, for 2 years bond implies 4 periods;
∴
[tex]= \dfrac{40}{1+0.02}+ \dfrac{40}{(1+0.02253)^2} + \dfrac{40}{(1+0.0252)^3}+ \dfrac{40}{(1+0.0277)^4}[/tex]
= $1047.024
3.
Suppose there exist no-arbitrage, then the price is:
[tex]= \dfrac{0}{(1+0.02)}+\dfrac{1000}{(1+0.02253)^2}[/tex]
= 956.4183
Since the market price < arbitrage price.
We then consider 0.5, 1-year bonds from the portfolio
Now;
weight 2 × 1000 + weight 2 × 22.5 = 1000
weight 2 × 1022.5 = 1000
weight 2 = 1022.5/1000
weight 2 = 0.976
weight 1 + weight 2 = 1
weight 1 = 1 - weight 2
weight 1 = 1 - 0.976
weight 1 = 0.022
The price of a 0.5-year bond will be:
[tex]= \dfrac{1000}{(1+0.02\%)} \\ \\ =\mathbf{980.39}[/tex]
The price of a 1-year bond will be = 1000
Market value on the bond portfolio = 0.022 × price of 0.5 bond + 0.978 × price 1-year bond = 956.42
= 0.022 × 980.39 + 0.978 × 1000
= 956.42
So, to have arbitrage profit, the investor needs to purchase 1 unit of the 1-year zero-coupon bond as well as 0.022 units of the 0.5-year bond. Then sell 0.978 unit of the 1-year bond.
Then will he be able to have an arbitrage profit of $56.42
4.
The one-period ahead forward rates can be computed as follows:
Foward rate from 0 to 0.5 [tex]X_1[/tex] = 2%
Foward rate from 0.5 to 1
[tex](1+X_2)^2 = (1+X_1) \times (1+ Foward \ rate \ from \ 0.5 \ to \ 1 )[/tex]
[tex](1+0.0225)^2 = (1+0.02) \times (1+ Foward \ rate \ from \ 0.5 \ to \ 1 )[/tex]
Foward rate from 0.5 to 1 = 2.5%
Foward rate from 1 to 1.5
[tex](1+X_3)^3 = (1+X_2)^2 \times (1+ Foward \ rate \ from \ 1 \ to \ 1.5 )[/tex]
[tex](1+0.0251)^3 = (1+0.0225)^3 \times (1+ Foward \ rate \ from \ 1 \ to \ 1.5 )[/tex]
Foward rate from 1 to 1.5 =3.021%
Foward rate from 1.5 to 2
[tex](1+X_4)^4 = (1+X_3)^3 \times (1+ Foward \ rate \ from \ 1.5 \ to \ 2 )[/tex]
[tex](1+0.0277)^4 = (1+0.0251)^3 \times (1+ Foward \ rate \ from \ 1.5 \ to \ 2 )[/tex]
Foward rate from 1.5 to 2 =3.021%
5.
The expected price of the bond if the hypothesis hold :
= [tex]\dfrac{40}{1+ 0.03021}+ \dfrac{1000+40}{(1+0.03285)^2}[/tex]
[tex]= \dfrac{40}{(1.03021)}+ \dfrac{1040}{(1.03285)^2}}[/tex]
= 1013.724254
= 1013.72
You are an employee of an US firm that produces personal computers in Thailand and then exports them to the US and other countries for sale. The personal computers were originally produced in Thailand to take advantage of relatively low labor costs and a skilled workforce. Other possible locations considered at that time were Malaysia and Hong Kong. The US government decides to impose punitive 100% ad valorem tariffs on imports of computers from Thailand to punish the country for administrative trade barriers that restrict US exports to Thailand. How should your firm respond? What does this tell you about the use of targeted trade barriers?
Answer:
In the short-run, I will encourage my firm to export the computers to Canada first, directly from Thailand. From Canada, the computers can be exported into the USA. But this is not the long-term solution. There will be need to find another country in which production will be cost-effective and from which the goods can be exported directly into the USA.
Another approach would be to engage in lobbying, within acceptable rules, the governments of Thailand and the US to end the administrative barriers.
Explanation:
There is no single economy that benefits from trade restrictions. Therefore, every effort should be made to reduce, to the barest minimum, all forms of trade barriers, which stunt economic growth and development. Give and take, in the spirit of competition, should be encouraged at all times.
Laubitz Company begins operations on Apr.1. Information from job cost sheets shows the following:
Manufacturing Costs Assigned
Job Number April May June Month Completed
10 $7,500 $4,400 May
11 $4,100 $6,900 $3,000 June
12 $3,200 April
13 $4,700 $9,400 June
14 $4,400 $3,600 Not complete
Each job was sold for 25% above its cost in the month following completion.
(a) Work in Process Inventory at
April 30: $Answer
May 31: $Answer
(b) Finished Goods Inventory at
April 30: $Answer
May 31: $Answer
(c) Gross Profit for
May: $Answer
June: $Answer
Answer:
1. 2. April 30 $11600
31-May $20100
2. April 30 $3,200
31-May $11,90
3. Profit April 0
May$800
June $2975
Explanation:
1) Calculation for Work in Process Inventory at
April 30 and 31-May
Work in Process Inventory at
April 30=7500+4100
Work in Process Inventory at
April 30=$11600
Work in Process Inventory at31-May =4100+6900+4700+4400
Work in Process Inventory at31-May= $20100
2) Calculation for Finished Goods Inventory at
April 30 and 31-May
Finished Goods Inventory at
April 30: $3,200
Finished Goods Inventory at 31-May =7500+4400
Finished Goods Inventory at 31-May= $11,900
3) Calculation for Gross Profit
Gross Profit April : 0
Gross Profit May =3200*25%
Gross Profit May=800
Gross ProfitJune :- Job 10 =(7500+4400)*25% Gross Profit June 2975
The adjusted trial balance of Novak Corporation at December 31, 2022 includes the following accounts: Retained Earnings $12,852; Dividends $5,100; Service Revenue $30,600; Salaries and Wages Expense $15,300; Insurance Expense $2,040; Rent Expense $4,590; Supplies Expense $510; and Depreciation Expense $1,020. Prepare a retained earnings statement for the year. (List items that increase retained earnings first.)
Answer and Explanation:
The preparation of the retained earnings is presented below:
Novak corporation
Statement of retained earnings
For the year ended Dec 31,2022
Particulars Amount
Opening bal of retained earnings $12,852
Add: Net income $7,140
($30,600 - $15,300 - $2,040 - $4,590 - $510 - $1,020)
Less: dividend paid -$5,100
Ending balance of retained earnings $14,892
Which examples demonstrate common Law Enforcement Services workplaces and employers? Check all that apply.
Otto is a self-employed worker who provides legal advice to people accused of crimes.
Peng monitors people who are swimming at a beach.
Candie oversees legal proceedings in a courtroom to make sure laws are followed properly.
Zoraida works for the municipal government investigating crime scene evidence in a laboratory.
Colleen inspects travelers and baggage in an airport.
Asa sits in an office filling out paperwork to document crimes.
Answer:
Zoraida works for the municipal government investigating crime scene evidence in a laboratory.
Colleen inspects travelers and baggage in an airport.
Asa sits in an office filling out paperwork to document crimes.
Explanation:
Criminal justice and law enforcement provide challenging but rewarding career paths. The examples of common law enforcement Services workplaces and employers are options 3,4, and 6.
What are some examples of common law enforcement services?Local legal institutions include police departments and sheriffs. State agencies include state or highway patrol. Government agencies include the FBI and the U.S. Secret Service.
Local, regional, and individual levels of government provide different types of public office.
Hence, the examples of common Law Enforcement Services are
Option 3. Candie oversees legal proceedings in a courtroom to make sure laws are followed properly.Option 4. Zoraida works for the municipal government investigating crime scene evidence in a laboratory.Option 6. Asa sits in an office filling out paperwork to document crimes.To learn more about common law enforcement services. refer to the link:
https://brainly.com/question/25967537
Waterway Industries started the year with $66000 in its Common Stock account and a credit balance in Retained Earnings of $48400. During the year, the company earned net income of $52800, and declared and paid $22000 of dividends. In addition, the company sold additional common stock amounting to $30800. As a result, the balance in retained earnings at the end of the year would be
Answer:
$79,200
Explanation:
The computation of retained earning at year end is seen below;
= Opening retained earning balance + Net income - dividend paid
= $48,400 + $52,800 - $22,000
= $79,200
Therefore, the retained earnings balance is $79,200
When a suspect is read his or her Miranda rights, he or she is reminded that he or she ______.
does not have the right to an attorney
does not have the right to remain silent
must answer all police questions
has the right to remain silent
___________People who pay cash for everything they buy get loans easily.
Answer:
False.
Explanation:
A loan can be defined as an amount of money that is being borrowed from a lender and it is expected to be paid back at an agreed date with interest.
Generally, the financial institution such as a bank lending out the sum of money usually requires that borrower provides a collateral which would be taken over in the event that the borrower defaults (fails) in the repayment of the loan.
A credit score can be defined as a numerical expression between 300 - 850 that represents an individual's financial history and credit worthiness. Therefore, a credit score determines the ability of a borrower to obtain a loan from a lender.
This ultimately implies that, the higher your credit score, the higher and better it is to obtain a loan from a potential lender. A credit score ranging from 670 to 739 is considered to be a good credit score while a credit score of 740 to 799 is better and a credit score of 800 to 850 is considered to be excellent.
In conclusion, people who pay cash for everything they buy do not get loans easily. Instead, loans are given based on credit score.
At December 31, 2017, Kefir Company had 800,000 shares of common stock outstanding. On October 1, 2018, an additional 160,000 shares of common stock were issued. In addition, Kifer had $10,000,000 of 5% convertible bonds outstanding at December 31, 2017, which are convertible into 360,000 shares of common stock. No bonds were converted into common stock in 2018. The net income for the year ended December 31, 2018, was $2,500,000. Assuming the income tax rate was 30%, the diluted earnings per share for the year ended December 31, 2018, should be:________ (rounded to the nearest penny) A) $3.39. B) $2.50. C) $2.38. D) $2.08.
Answer:
A) $3.39
Explanation:
The diluted earnings per share for the year ended December 31, 2018, should be A) $3.39
On January 1, 2015, Lake Co. purchased a machine for $1,056,000 and calculated depreciation using the straight-line method, with an estimated useful life of eight years, and no salvage value. On January 1, 2018, Lake determined that the machine had a useful life of six years from the date of acquisition, and a salvage value of $96,000. An accounting change was made in 2018 to reflect these data. The accumulated depreciation for this machine should have a balance at December 31, 2018, of ________. Group of answer choices
Answer:
$584,000
Explanation:
The computation of the accumulated depreciation is shown below:
But before that following calculations need to be determined
Depreciation for 3 years = $1,056,000 ÷ 8 years × 3 years
= $396,000
Now the written down value is
= $1,056,000 - $396,000 - $96,000
= $564,000
For one year it would be
= $564,000 ÷ 3
= $188,000
Now the accumulated depreciation is
= $396,000 + $188,000
= $584,000
Edmonco Company produced and sold 45,000 units of a single product last year, with the following results: Sales Revenue $ 1,350,000 Manufacturing costs: Variable 585,000 Fixed 270,000 Selling costs: Variable 40,500 Fixed 54,000 Administrative costs: Variable 184,500 Fixed 108,000 If Edmonco's sales revenues increase 15%, what will be the percentage increase in income before income taxes
Answer:
75%
Explanation:
The computation of the percentage increase in income before income taxes is shown below:
Particulars Current $ Increase at 15% Revised $
Sales revenue 1350000 202500 1552500
Less: Variable cost
Variable manufacturing 585000 87750 672750
Variable selling 40500 6075 46575
variable Admin 184500 27675 212175
Total variable cost 810000 121500 931500
Contribution 540000 81000 621000
Less: Fixed cost
Manufacturing 270000 0 270000
Selling 54000 0 54000
Admin 108000 0 108000
Net income 108000 81000 189000
Now percentage increase in income is
= (81000 ÷ 108000)
= 75%
The percentage increase in Edmonco Company's income before income taxes is 75%.
Data and Calculations:
Production and sales units = 45,000 units
Sales Revenue = $ 1,350,000
Manufacturing costs:
Variable = 585,000
Fixed = 270,000
Total manufacturing costs = $855,000
Selling costs:
Variable 40,500
Fixed 54,000
Total selling costs = $94,500
Administrative costs:
Variable 184,500
Fixed 108,000
Total administrative costs = $292,500
Total variable costs = $810,000 ($585,000 + $40,500 + 184,500)
Total fixed costs = $432,000 ($270,000 + $54,000 + $108,000)
Income Statements
Last Year Projected
Sales Revenue = $ 1,350,000 $1,552,500 ($1,350,000 x 1.15)
Variable costs = 810,000 931,500 ($810,000 x 1.15)
Contribution margin $540,000 $621,000
Fixed costs (432,000) (432,000)
Income before taxes $108,000 $189,000
Increase in income before taxes = $81,000
Percentage increase in income before taxes = 75% ($81,000/$108,000 x 100)
Learn more: https://brainly.com/question/25765805
DEMAND WORKSHEET Exercise 4: Identifying the determinants of demand. You have seen have how an increase in demand is depicted on a graph by a shift in the demand curve. When the demand curve shifts upward and to the right this is indicative of an increase in demand When the demand curve shifts to the left, this is indicative of a decrease in demand. Factors that result in a change in demand are the determinants of demand. Complete the table below. For each determinant of demand: indicate whether demand will increase or decrease provide an explanation as to why
Answer:
hi
Explanation:
The police need to have _____ to obtain a search warrant.
absolute certainty
a mere suspicion
no reason
probable cause
Answer:
PROBABLE CAUSE
Explanation:
Suppose that Spain and Austria both produce oil and olives. Spain's opportunity cost of producing a crate of olives is 5 barrels of oil while Austria's opportunity cost of producing a crate of olives is 10 barrels of oil. By comparing the opportunity cost of producing olives in the two countries, you can tell that_________ has a comparative advantage in the production of olives and___________ has a comparative advantage in the production of oil.
Suppose that Spain and Austria consider trading olives and oil with each other. Spain can gain from specialization and trade as long as it receives more than _________of oil for each crate of olives it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than _________of olives for each barrel of Oil it exports to Spain.
Answer:
Spain and Austria
a. Spain
b. Austria
c. 5 barrels of oil
d. 0.5 barrels of olives
Explanation:
Spain enjoys comparative advantage in the production of olives while Austria enjoys comparative advantage in the production of oil because Spain can produce olives at lower costs than Austria while Austria can produce oil more efficiently than Spain. When these two countries specialize in the production of the product that they enjoy comparative advantage, more goods will be produced in total, and they can exchange their surpluses with the other nation.
Morton Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $49,000 and at the end of the month was $45,000. The cost of goods manufactured for the month was $226,000. The actual manufacturing overhead cost incurred was $74,000 and the manufacturing overhead cost applied to Work in Process was $70,000. The adjusted cost of goods sold that would appear on the income statement for November is:
Answer:
$234,000
Explanation:
Cost of goods sold = Opening Finished Goods Inventory + cost of goods manufactured - Closing Finished Goods Inventory
= $49,000 + $226,000 - $45,000 = $230,000
Under - applied overheads = Actual Overheads - Applied Overheads
= $74,000 - $70,000 = $4,000
Adjusted Cost of goods sold = $230,000 + $4,000 = $234,000
The adjusted cost of goods sold that would appear on the income statement for November is $234,000.
Premium Co. produces park benches. A customer has offered Premium Co. $700 per unit for 100 units. The normal selling price is $850 per bench. To fill the order, Chris would incur unit-level costs of $500 per unit and batch-level costs of $15,000. Premium Co. also incurred $20,000 of product-level costs to design the bench and $200,000 of facility-level costs. Based on the differential revenues and costs, Premium Co. should ______ the special order.
Answer:
See below
Explanation:
Customer's cost = $700 × 100 units = $70,000
Normal selling price = $850 × 100 units = $85,000
Premium Co's cost = ($500 × 100 units) + $15,000 + ($20,000 × 100 units) + $200,000
= $50,000 + $15,000 + $2,000,000 + $200,000
= $2,265,000
The differential cost(customer offering) is therefore
= $2,265,000 - $70,000
= $2,195,000
The differential cost(selling) is
= $2,265,000 - $85,000
= $2,180,000
Premium Co. should by the order.
Yes, premium co. should accept the order because it will increase profit by $5,000".
Revenue based problem:Computation:
Additional revenue = [$700][100]
Additional revenue = $70,000
Cost of special order = [(500)(100) + (15000)]
Cost of special order = 50000 + 15000
Cost of special order = 65,000
Additional profit = 70,000 - 65,000
Additional profit = $5,000
Find out more about 'Additional profit':
https://brainly.com/question/3883496?referrer=searchResults
Analysis of cash flows, analysis of competing hypotheses, consideration of analytical and accounting anomalies, big data and data analytics, consideration of the fraud triangle, use of graphical tools for analysis and communication, internal controls, the control environment and opportunity, interviewing for information and admissions, analysis of nonaccounting and nonfinancial numbers and metrics, financial statement and ratio analysis, consideration of red flags, and analysis of related parties are all examples of:
Answer:
Forensic accounting and fraud examination tools/techniques.
Explanation:
Forensic accounting is one that make use of auditing as well as accounting and investigative skills in conducting examination about the Businesses and individuals finances. It gives accounting analysis that could be used in legal proceedings. It is one of the tools/ techniques for fraud examination
This chapter described various situations that emphasize the need for controls. In the first sce- nario presented, a furniture store sells merchandise on credit. Based on the descriptions of controls given in this chapter, identify the various controls that should be implemented in the furniture store system to ensure that corrections to customer bal- ances are made only by someone with the correct authorization. In the second scenario illustrating the need for controls, an accounts payable clerk uses the system to write checks to suppliers. Based on the information in this chapter, what kinds of controls would you implement to ensure that checks are written only to valid suppliers, that checks are written for the correct amount, and that all payouts have the required authorization
Answer:
First Scenario:
The furniture store should develop a system which helps keeps track for the purchases made on account. The system should keep track of invoices and payment due dates. The system should notify the team when the payment due date is near. The system should have controls for identifying duplicate payments.
Explanation:
Second Scenario:
The account payable clerk should keep track of all the invoices entered in the system. The system controls should be efficient so that there is no duplicate payment or missed payment. The system should notify the user when any duplicate invoice entering attempt is made. There should be authorization of invoices before they are entered in the system. The payment process should be segregated between 2 or more users so that there is less risk for fraud.
The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000 Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 Creamy Crisp Multiple Choice has lower implicit costs, including a normal profit, than its explicit costs. is earning a normal profit but not an economic profit. is earning an economic profit. is suffering an economic loss, when implicit costs are considered.
Answer:
is earning an economic profit.
Explanation:
implicit costs = $50,000 + $80,000 + $6,000 = $136,000
revenues = $380,000
explicit costs = $22,000 + $120,000 + $8,000 = $150,000
economic profit = $380,000 - $150,000 - $136,000 = $94,000
Are there items that would receive the same share?
Explanation:
Equal shares when added together give us the whole.
Equal shares can be used to divide either a single object or group of objects equally.
The result of an equal share can sometimes be a fraction.
Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information.
Car Truck
Estimated wheels produced 40,000 10,000
Direct labor hours per wheel 1 3
Total estimated overhead costs for the two product lines are $770,000.
Exercise 17-4 Altex Inc. manufactures two products
Calculate overhead rate. (Round answer to 2 decimal places, e.g. $12.25.)
Overhead rate
$
per direct labor hour
LINK TO TEXT
Exercise 17-4 Altex Inc. manufactures two products
Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs.
Car wheels
$
Truck wheels
$
Answer:
Results are below.
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Total direct labor hours= (40,000*1) + (10,000*3)= 70,000
Predetermined manufacturing overhead rate= 770,000/70,000
Predetermined manufacturing overhead rate= $11 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Car= 11*40,000
Car= $440,000
Truck= 11*30,000
Truck= $330,000
for you why entrepreneurship is important?
Answer:
Entrepreneurship has no power and has changed nothing. It is just a word which refers to the act of creating, owing, operating and maintaining an enterprise at one’s own risk. That’s all; there is nothing more. Because there are usually some special personality and psychological traits which compel and sustain people to take the risks associated with having their own enterprise, not everyone is “cut out” to be an “entrepreneur.”
I can do something I love, even though after doing it for too long it is less fun.
A shot in financial independence.
It's an adventure. It doesn't feel like work.
No boss.
In January 2019, Rankine Company paid $8,500,000 for land and a building. An appraisal estimated that the land had a fair value of $2,500,000 and the building was worth $6,000,000. Rankine estimated that the useful life of the building was 30 years, with no residual value. a. Calculate annual depreciation expense using the straight-line method. $Answer b. Calculate depreciation for 2019 and 2020 using the double-declining-balance method. Round answers to the nearest whole number. 2019 $Answer 2020 $Answer c. Assume that in 2021, Rankine changed its estimate of the useful life of the building to 25 years. If the company is using the double-declining-balance method of depreciation, what amount of depreciation expense would Rankine record in 2021
Answer:
$200,000
$400,000
$373,333
$454,493
Explanation:
Land is not depreciated. Only the building would be depreciated
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
$6,000,000 / 30 = $200,000
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life)
Book value in year 1 = Cost of asset - Depreciation expense of year 1
Book value in year in subsequent years = previous book value - that year's depreciation expense
Depreciation expense in 2019 = (2/30) x $6,000,000 = $400,000
Book value in 2020 = $6,000,000 - $400,000 = $5,600,000
Depreciation expense in 2020 = (2/30) x $5,600,000 = $373,333
"The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $3.1 million, and the 2018 balance sheet showed long-term debt of $3.2 million. The 2018 income statement showed an interest expense of $150,000. During 2018, the company had a cash flow to creditors of $50,000 and the cash flow to stockholders for the year was $90,000. Suppose you also know that the firm’s net capital spending for 2018 was $1,340,000, and that the firm reduced its net working capital investment by $63,000. What was the firm’s 2018 operating cash flow, or OCF? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)"
Answer:
$1,417,000
Explanation:
Cash flow from asset = Cash flow to creditors + Cash flow from shareholders = $50000 + $90000 = $140000
Cash flow from asset = Operating cash flow - Net capital spending - Net change in net working capital
$140,000 = Operating cash flow - $1340000 - (-$63000)
$140,000 = Operating cash flow - $1,340,000 + $63,000
Operating cash flow = $140000 + $1,340,000 - $63,000
Operating cash flow = $1,417,000
During February, $186,500 was paid to creditors on account, and purchases on account were $201,400. Assuming the February 28 balance of Accounts Payable was $59,900, determine the account balance on February 1. $fill in the blank 1 b. On October 1, the accounts receivable account balance was $115,800. During October, $449,600 was collected from customers on account. Assuming the October 31 balance was $130,770, determine the fees billed to customers on account during October. $fill in the blank 2 c. On April 1, the cash account balance was $46,220. During April, cash receipts totaled $248,600 and the April 30 balance was $56,770. Determine the cash payments made during April. $fill in the blank 3
Answer:
1. Account balance on February 1:
= Payments made + Closing balance - Purchases
= 186,500 + 59,900 - 201,400
= $45,000
2. Fees billed to customers on account in October:
= Amount collected from customers + Closing balance - Opening balance
= 449,600 + 130,770 - 115,800
= $464,570
3. Cash payments in April:
= Opening balance + Cash receipts - Closing balance
= 46,220 + 248,600 - 56,770
= $238,050
In each of the following transactions ( a ) through ( c ) for Romney's Marketing Company, use the three step process illustrated in the chapter to record the adjusting entry at year-end December 31, 2015. The process includes (1) determining if revenue was earned or an expense incurred, (2) determining whether cash was received or paid in the past or will be received or paid in the future, and (3) computing the amount of the adjustment.
a. Estimated electricity usage at $450 for December; to be paid in January of next year.
b. On September 1 of the current year, loaned $6,000 to an officer who will repay the loan principal and interest in one year at an annual interest rate of 14 percent.
c. Owed wages to 10 employees who worked four days at $200 each per day at the end of the current year. The company will pay employees at the end of the first week of next year.
Answer:
Romney's Marketing Company
Using the three-step process to record the adjusting entry at year-end December 31, 2015:
a1. Expense was incurred
2. Cash will be paid in the future
3. The amount of the adjustment is $450
b1. Revenue was earned at December 31, 2015
2. Cash will be received in the future.
3. The amount of the adjustment is $280.
c1. Expense was incurred.
2. Cash will be paid in the future.
3. The amount of the adjustment is $8,000.
Explanation:
a) Data and Calculations:
Interest receivable = $280 ($6,000 * 14% * 4/12)
b) The three-step process for recording the adjusting entry at year-end:
(1) determining if revenue was earned or an expense incurred.
(2) determining whether cash was received or paid in the past or will be received or paid in the future.
(3) computing the amount of the adjustment.
g The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $4,400 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $2,000 and direct labor cost of $800. Therefore, the company's overhead application rate is: Group of answer choices 200% of direct labor cost. 50% of direct labor cost. 80% of direct labor cost. 40% of direct labor cost. 300% of direct labor cost.
Answer:
200% of direct labor cost
Explanation:
The computation of the company overhead application rate is shown below;
But before that overhead cost would be determined
GIP = Direct material + Direct labor + Overhead
$4,400 = $2,000 + $800 + Overhead
So,
Overhead = $4,400 - $2,000 - $800
= $1,600
Now the overhead application rate is
= overhead ÷ direct labor cost
= $1,600 ÷ $800 × 100
= 200%
